American Axle Strike Takes Down More GM Truck Plants

By Chris Haak

02.29.2008

The strike that the UAW undertook starting Tuesday, February 26 against American Axle and Manufacturing has begun to require certain GM truck plants to close. In spite of American Axle stockpiling parts in the weeks leading up to the strike, yesterday (just two days after the start of the strike), GM closed its Pontiac, Michigan truck assembly plant, which builds Chevrolet Silverado and GMC Sierra pickups. The plant builds about 433 pickups per day and employs around 2,500 workers.

Later today, the Flint truck assembly plant and its 2,100 workers will also be idled as it runs out of American Axle-supplied parts. The Sunday night third shift will be the first one affected by the parts shortage.

American Axle produces almost 80% of the axles used by GM, including parts used on nearly every SUV produced by GM. The company and the union appear to be very far apart, with management seeking wage cuts and employees feeling personally betrayed by the company.

At the moment, GM does not appear to be particularly concerned about the strike. In the short term, GM also somewhat overproduced trucks in January in anticipation of an American Axle-caused shutdown. In fact, GM's overall truck inventory in terms of days' supply jumped from an 83 day supply as of January 1, 2008 to a 113 day supply as of February 1, 2008. Meanwhile, GM's car production - which is mostly front wheel drive and therefore not affected by this strike - kept better pace with demand in January and went from a 57 day supply to a 59 day supply. (The industry generally considers a 60 day supply of unsold vehicles to be ideal). Therefore, a short American Axle strike might actually serve to help GM reduce its inventory of unsold trucks.

Now, should the strike last for a while - which seems entirely possible, given how entrenched the sides are in their negotiating positions - GM could be harmed by the strike, because 58.3% of GM's sales last year were trucks. If the truck supply ran out, GM would suddenly be without more than half of its potential sales.

UPDATE, 12:30 p.m.: In addition to the Pontiac and Flint plants noted above, the Ft. Wayne, Indiana and Oshawa, Ontario truck plants will also be idled this weekend due to strike-related parts shortages.

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GM Holden Shows Two Long-Awaited Concepts

By Chris Haak

02.29.2008

Holden, the General Motors subsidiary in Australia, revealed two long-awaited, much rumored concepts today at the Melbourne International Motor Show. While both are derivatives of the VE Commodore (just launching in the US as the Pontiac G8), it's hard to say which model will prove most interesting to enthusiasts.

Holden Coupe 60 Concept
Ever since the debut of the VE Holdens in 2006 (intially available only as four door sedans), as well as the discontinuation of the popular and legendary Holden Monaro coupe, Holden - and in fact GM rear wheel drive performance enthusiasts - have been begging the company for a new Monaro. Holden was coy about the car's chances, implying that with renewed concern about CO2 emissions and fuel prices, the car's chances for another resurrection in the short term were slim.

At least, until today. The Holden Coupe 60 concept is basically a VE Commodore that is 60 millimeters shorter (yet with the same wheelbase), and an aggressively-sloping roofline. Like the 2005 Chevrolet Camaro concept, it is a pillarless coupe, and like the Camaro, if/when it reaches production, it would probably have a fixed B-pillar to keep the weight down and the safety up. Under the hood (or bonnet, as the Holden press release states) is a 6.0 liter V8 calibrated to run on E85, coupled to a six speed manual transmission.

Holden is being noncommittal at the moment about the car's prospects for production. Reading between the lines, however, it does seem like a reasonable possibility, since the car would not require nearly as much engineering effort as an all-new car, since the platform's engineering is already complete and in production elsewhere.

GM Holden Chairman and Managing Director Mark Reuss said, "This is a vehicle I know our designers would dearly love to see go into production, but for the moment it has to remain a concept only."

However, Project Designer Manager, Peter Hughes, said, "With Coupe 60 we think we have designed a car that has the potential to write another chapter in the book of Holden icons."

From the quotes above, it sounds like the car definitely has potential for production, but it is not confirmed yet. If it is produced, would GM dare import it as the Pontiac GTO again, or has the company learned its lesson and would instead call it something less risky like "G8 Coupe" or "G8 Sport Coupe?"

HSV W427 7.0 Liter Supercar
Holden Specialty Vehicles (also known as HSV) is the company that tunes and builds high performance versions of Holden vehicles. HSV has already built several other hot rod variants of the VE Commodore, but the latest one will take on all comers. It is basically a Commodore with the Corvette Z06's 7.0 liter LS7 V8 engine producing in excess of 496 horsepower (370 kW) and 472 lb-ft (640 Nm) of torque, connected to a six speed manual transmission.

Backing up this impressive powertrain are goodies such as bi-modal mufflers (similar to those on the Z06 and other Corvettes), dry sump lubrication (also lifted from the Z06), 30% stiffer springs, a 20 mm lower ride height, and magnetic ride control with an all-new calibration. Brakes are six-piston front calipers with a 50% (!) increase in pad surface area.

Visually, the W427 features an all-new unique front fascia, all-new 20 inch wheels, and an all-new three-piece carbon fiber spoiler. Other than fuel consumption (which actually may not be much worse than the other V8-powered HSV sedans), the only problem with this car is its price. It's expected to be about $150,000 Australian ($141,000 US) including the VAT, or about twice as expensive as the next-most-expensive HSV model. That's a big chunk to bite off, but also an extremely impressive piece of machinery.

I don't ever expect this car to come to the US. Why would any buyer want to pay $100,000 for a Pontiac when a $60,000 Cadillac CTS-V would have similar, if not superior, performance, better comfort, and arguably more attractive (mature?) styling? The other obvious question is whether GM tuners such as Mallett, who is already capable of stuffing small block V8s under the hood of Pontiac Solstices and Saturn SKYs, will start working their magic with LS7 crate motors and Pontiac G8s. The LS7 crate motor costs less than $15,000 from GM Performance Parts; of course labor would add a large premium, as would all of the ancillary components such as a beefed up drivetrain, larger brakes and wheels, etc., but Mallett can probably build a car that can match this one's performance for less money.

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California Regulators Propose 44 MPG Requirement by 2020

By Chris Haak

02.26.2008

The California Air Resources Board (CARB) adopted rules several years ago requiring a reduction in greenhouse gas emissions (CO2) for vehicles sold in California for model years 2009 through 2016. CARB is now preparing to expand the rules beyond 2016 to 2020. The result of California's stricter rules is that the average new vehicle sold in California in 2020 would need to average 43.9 mpg (versus the Federal CAFE standard of 35.0 mpg by the same date).

The auto industry is challenging the original 2009 to 2016 rules in Federal courts, arguing that they are an illegal attempt to usurp federal authority over fuel economy (because unlike the case with smog-forming pollutants, C02 emissions are correlated almost directly to fuel consumption/economy). They are also likely to challenge the additional years, as they are even more strict. Because California mandated pollution controls on vehicles before the federal government did, the state is allowed to set its own pollution standards, and 15 other states have adopted the California standards as well.

In December 2007, EPA Administrator Stephen Johnson declined to allow California to enforce their greenhouse gas rules. His argument was not one of federal versus state powers, though - his argument was that the new federal 35 mpg standard would do more to cut emissions and global warming than state rules, which he said would set a standard of 33.8 mpg.

Because California and the 15 states (primarily in the Northeast) that follow its rules make up about half of the US new vehicle market. Since it would be impossible to write off half of the US new vehicle market, the result could be one of two things: either the California standards will become a de-facto national standard (forcing everyone in the US into even smaller, more efficient vehicles than we would have with a 35 mpg CAFE requirement), or severely limiting allocation of models available for sale in California and the other states that do not meet the mileage standards. Of course, economics 101 tells us that limiting the supply of something will force up its price, so if you live in California or one of those other states, you can expect to pay significantly more for a new vehicle than you otherwise would have to.

CARB has run into issues with its "innovation by legislation" mantra several times in past years. More than a decade ago, California mandated that a percentage of the new vehicle fleet sold in Califonia be 10% ZEVs (zero-emission vehicles) by 1998. The only way to reach complete zero emission status is with a 100% electric vehicle or one with a fuel cell. Obviously, there were no mass-produced fuel cell or electric vehicles on the road in 1998, so the board modified the ruling that year to allow up to 60% of the ZEV requirement to be met with vehicles having extremely low emissions and other specific attributes. This was the birth of the PZEV (i.e. Ford Focus PZEV and BMW 325i PZEV) and AT-PZEV (AT stands for Advanced Technology) (i.e. Toyota Prius).

The question then remains: if the federal government allows California's rules to stand (which it may do eventually; legislation to do so is pending in Congress, and McCain, Clinton, and Obama have all said that they support allowing states to establish their own greenhouse gas rules), are they even realistic expectations for just 8 to 12 years in the future? Cars and the smallest light trucks will need to achieve 50.8 mpg by 2020, and other light trucks will have to achieve 35.2 mpg, based on California's current vehicle sales mix. Imagine for a moment what the highways will look like in 2020 when the average new car gets over 50 mpg. It will either be a very different looking highway, or CARB will have to allow some sort of flexibility or waivers to automakers.

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Panasonic EV Energy Co. Hints at Toyota's Hybrid Ambitions

By Chris Haak

02.26.2008

Toyota's nickel-metal hydride battery supplier, Panasonic EV Energy Co., is planning to produce about 800,000 batteries for hybrid vehicles in 2009. The company sells 95% of its output to Toyota, which means that Toyota is expecting to build at least 760,000 hybrid vehicles next year. This would be an increase of 77% over Toyota's 2007 global hybrid production of 429,000 units.

If Toyota keeps up its march toward greater quantities of hybrid production, it should be able to reach its goal of selling 1 million hybrids by the early part of the next decade.

The supplier is a joint venture between Toyota and Matsushita Electric Industrial company wand was founded in 1996. Although it currently produced nickel-metal hydride batteries, it will soon provide Toyota with next-generation lithium ion batteries (expected to be used by a plug-in hybrid starting around 2010). The struggle with the lithium ion batteries is longevity, but the general manager of Toyota's hybrid division wants the battery life to exceed 10 years once development is complete.

A reliable battery supply for hybrid production has proven to be one of the elements of the supply chain that can put a crimp on production. To that end, other Japanese automakers have also developed arrangements with battery manfuacturers. Nissan is working with NEC, Honda is working with Sanyo, and Mitsubishi is working with GS Yuasa Corporation in a joint venture that will make lithium ion batteries. Rapidly increasing battery demand has caused other hybrid manufacturers (such as Ford and GM) and electric vehicle aspirants (such as GM with the hyped Chevy Volt) to seek their own reliable supplies as well.

Should Toyota's hybrid plans pan out, they may continue the company's growth trajectory of recent years. While many European manufacturers have staked their claim in the diesel world to conserve fuel, Toyota's actions are clearly indicative of its continued focus on hybrid drivetrains instead.

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ACEEE Lists The Greenest and "Meanest" Vehicles Sold in the US

By Chris Haak

02.25.2008

The American Council for an Energy-Efficient Economy, a Washington-based nonprofit group financed by foundations, electric utilities, and some federal agencies has released its list of the 12 greenest vehicles sold in the US in 2008 as well as the 12 "meanest" (meaning least environmentally friendly) vehicles.

The organization's methodology (available here) claims to consider fuel economy, pollution emissions, CO2 (which is really a proxy for fuel consumption, since consuming fuel releases CO2, no matter how sophisticated emission controls are), vehicle weight, and even its cradle-to-grave environmental impact. On that last point, I found it the #2 green choice on the list below to be surprising, since the widely-criticized CNW Marketing Research report accused the Prius of having a larger overall environmental footprint than some Hummer models.

The list of the top 12 greenest vehicles sold in the US are:

1. Honda Civic GX (pictured above)
2. Toyota Prius
3. Honda Civic Hybrid
4. Smart ForTwo Convertible/Coupe
5. Toyota Yaris
6. Nissan Altima Hybrid
7. Toyota Corolla
8. Mini Cooper/Clubman
9. Ford Focus
10. Toyota Camry Hybrid
11. Honda Civic
12. Honda Fit

The Honda Civic GX is powered by CNG (compressed natural gas), so the Prius is rated as the greenest gasoline-powered vehicle. Every vehicle on the greenest list is built by an Asian manufacturer except for #4 (Smart ForTwo), #8 (Mini Cooper/Clubman), and #9 (Ford Focus).

You'd probably guess that their "hall of shame" of the most pollutting/environmentally impacting vehicles would include a lot of domestic brands, then. However, the worst are actually mostly European diesels and expensive, high performance vehicles. Although diesel-powered vehicles have 20-30% lower fuel consumption than comparable gasoline-powered vehicles, they also emit much more NOX and other pollutants than their gasoline-powered counterparts. Clean diesel technology such as BlueTec and Honda's solution are coming in the next year or two, so perhaps many of these diesels will fall off the list, but right now, ACEEE does not consider diesel engines to be clean enough for consideration among the greenest vehicles.

The 12 "meanest" vehicles for 2008 are:

1. Volkswagen Touareg V10 TDI (pictured above)
2. Bugatti Veyron V16
3. Mercedes-Benz GL320 CDI
4. Jeep Grand Cherokee Diesel
5. Mercedes-Benz R320 CDI
6. Lamborghini Murcielago/Murcielago Roadster V12
7. Mercedes-Benz ML320 CDI
8. Mercedes-Benz G55 AMG
9. Hummer H2
10. GMC Yukon 2500 6.0L
11. Bentley Azure V8
12. Bentley Arnage V8

The Mercedes-Benz diesels (which power #s 3, 4, 5, and 7 on the list) really took a beating. The only two domestic vehicles on the list were the Hummer H2 (a favorite target of environmentalists) and the large three quarter ton GMC Yukon 2500.

Cleaning diesel emissions to the levels of gasoline engines will be expensive and the additional cost may mitigate some of the fuel saving advantages inherent in diesel powertrains. For example, would consumers be willing to spend $5,000 extra to save some fuel (and drive a vehicle with its fuel available at fewer service stations)? Also the small cars that make up most of the greenest list probably do not work for everyone's needs (and certainly not their preferences). But for consumers concerned about their environmental footprint, these lists might be a factor in their decision. I know that I'll be crossing the Veyron off my shopping list after seeing it here.

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2007 Toyota Tundra CrewMax Review

By Chris Haak

02.25.2008

Last week, Toyota provided me with a 2007 Toyota CrewMax 4x4 Limited for evaluation. I've driven plenty of different pickup trucks over the years - two wheel drive and four wheel drive, basic trim and luxury trim, compact, midsize and full size, regular cab, extended cab and crew cab, gas and diesel, Ford, Chevy and Dodge. However, I'd never spent time in a Toyota truck and was very curious to see if the Tundra - of course, all new and upsized for 2007 (and mostly unchanged for 2008) - could live up to its hype. On paper, it's certainly an impressive machine. The Tundra is finally as big as or bigger than its domestic competition, and has the towing and payload capacities to match, plus a top powertrain that's at or near the head of its class.

Exterior
From a styling standpoint, the CrewMax is my favorite version of the Tundra. The CrewMax, for those not "in the know," is one of two four-door versions of the Tundra (the other is called the DoubleCab, which is basically an extended cab, but with shorter forward-hinged doors and hidden handles). The CrewMax is comparable in concept to the Dodge MegaCab pickups, as it has an extremely roomy cab, while sacrificing some cargo box length. It also makes no attempt to disguise the back doors, since they're longer than the front ones and have same gigantic chrome pull handles. To my eyes, the regular cab Tundras have cartoonishly-large front doors, and the cargo boxes of the non-CrewMax Tundras have too much length between the axle and the front of the box. I believe that the most attractive cargo box proportions occur when the rear axle is centered front to back.

Other than overall proportions, the Tundra isn't a bad looking truck. It applies Toyota's current truck/SUV styling theme to a large pickup. The theme includes sweeping curves, an oversized grille (somewhat reminiscent of the St. Louis Gateway Arch), and headlights that sweep backward and taillights that sweep forward. There's a thick character line across the bottom of the doors that really works well. Overall, the truck's styling is somewhat conservative, but I find it attractive. The 2009 Ram's look might be marginally more attractive, but the Tundra managed to be conservatively attractive without overdosing on conservatism. (Yes, I'm talking about GM and Ford pickups, which sell in such great numbers that their stewards are afraid to take styling risks. To me, the resulting trucks are too square in an attempt to be "tough.")

My test truck was shod with 18 inch wheels and Bridgestone tires, which looked a little small next to the 20 inch wheels that are becoming prevalent in truck-dom, but Toyota does offer the dubs for a reasonable $736. Ground clearance appeared to be appropriate - not too much wheel well was showing (as it did in the mid-1990s Dodge Rams), nor did it sit too low to put the truck's underside in jeopardy.

Interior
Although full size truck buyers are a brand loyal bunch, and they take great pride in the external toughness of their vehicles, it goes without saying that owners spend far more time inside their trucks than admiring them from a distance. In the past four years (since the introduction of the 2004 Ford F-150), the bar has really been raised in terms of interior material quality, features, and design.

Against some tough competition, Toyota incorporated some premium features inside the Tundra CrewMax Limited. My test vehicle was nearly loaded, equipped with leather seats, JBL premium audio, factory navigation, four-disc CD changer, Bluetooth cell phone connection, dual glove boxes, dual zone automatic climate control, and multiple storage nooks. My favorite storage compartment is the hanging file holder in the center console - impressive! However, I was disappointed by a few aspects of the interior. The door panels, while they featured a two-tone look (with brown and tan plastic) were entirely covered in plastic with no soft-touch spots. The dashboard itself was surprisingly also entirely hard plastic. It didn't have a cheap sound when I knocked on it, but I was surprised that the flagship Tundra model would not have a soft dashboard as our Sienna Limited minivan does. I hope that Toyota made that decision based on durability concerns and not cost. The large silver sweep around the instrument panel that goes to the floor console was also rough silver, which again was durable, but reminded me of some rough plastic painted with a can of Krylon Dull Aluminum paint. Against the top-level GM interior, I would give the nod to GM, (having spent 1,200 miles in a Suburban LTZ on a trip to Detroit in January, I'm also familiar with GM's higher trim levels), though the GMs also have some ill-advised hard plastic touch points. Seats were made with a tougher (less supple) grade of leather than found in most cars, equivalent to the leather GM uses, and were comfortable for two hour-long drives last week.

Ergonomically, controls were easy to understand without much of a thought. Even pairing my Motorola RAZR and BlackBerry 8830 with Bluetooth was a cinch (although I'd already done a similar feat in our Sienna). I also appreciated that the navigation screen was positioned high on the dash, so the driver's eyes aren't removed far from the road ahead. However, the ergonomic problem with the interior is that its girth makes it almost impossible to reach the controls - particularly the radio tuning knob - without leaning forward and stretching. I'm 6'4", so it must be nearly impossible for someone a foot shorter than me to tune the radio manually, at least while the vehicle is moving and the driver is belted to the seat. It seems as if the dashboard designers saw that they had such a large canvas to work with when placing controls, but didn't consider that the canvas might be too large.

The back seat of the CrewMax was just awesome. Although I didn't spend any travel time back there, the flexibility afforded by the extra length allowed me to easily "sit behind myself" (adjusting the driver's seat to a comfortable position then sitting in the seat behind it). The back seats also are on tracks to slide forward manually as most cars' front seats allow, and the backrests recline (although I didn't see any easy-to-use lever to recline them; that is a task best done when the truck is parked). Child seats (both a convertible and a rear facing carrier) installed easily and allowed plenty of clearance to the front seats. My wife commented this morning that the truck was almost too high to comfortably lift our sons into the truck, but that's not a design flaw, only a consequence of its size and height. The seatbacks also fold forward with just the flip of a lever to make a flat load floor.

Driving Experience
Knowing that a Tundra was coming to my driveway immediately after the Prius, I knew that both the driving experience and the fuel economy would be drastically different. Talk about an understatement.

The Prius starts with a beep and the engine probably won't even be running. The Tundra starts with a whir and then the thunderous 5.7 liter V8 kicks in and settles into a baritone idle. The driving experience is very conventional in the Tundra, which I appreciated. Once underway, the best feature of the Tundra quickly became obvious: its powertrain. Not only did the 5.7 liter V8 make great power (381 horsepower and 401 lb-ft of torque), but the six-speed automatic that it was paired with gave me the perfect ratio every time, plus the benefit of quick downshifts when added power was quickly needed (or wanted). Two months ago, I went for a spin in a Jeep Grand Cherokee SRT8 with a 420 horsepower 6.1 liter V8 and five speed automatic; of course, the Tundra is down almost 40 horsepower and up several hundred (if not thousand) pounds on the SRT8, but the Tundra's V8 and six speed reminded me of the Grand Cherokee. It's that darn good. It even sounds great. Unfortunately, absolute power corrupts absolutely, and it was just a little too easy to stomp on the gas pedal at whim to enjoy the sounds and the thrust. Merging onto the highway? No problem, give it more gas! Hole opening up in traffic? No problem, give it more gas! Those "give it more gas" situations add up, and over a week and almost 200 miles, I got 12.3 miles per gallon in the Tundra, or 1.7 miles per gallon below its EPA city rating. However, remember that my tester was a 2007, so the 2008 Tundra 5.7 liter 4x4 is rated at 13/17 instead of the 14/18 on my window sticker. Therefore, maybe I didn't take too many liberties with the big V8, only 0.7 mpg below its 2008 equivalent city rating. The only drivetrain criticism that I have is that when the transmission is in manual mode, upshifts seem to take three times longer than the transmission does on its own. I know I'm going to miss that engine when I go back to my Accord and minivan on Tuesday!

Although I said earlier that the interior wasn't quite as luxurious or soft as I would have liked in a Limited model, I commend the lack of squeaks, rattles, or wind noise inside while driving. The most prominent sound inside is that V8, but only during acceleration, and it's fine with me, as the six speed keeps it loping along quietly at less than 2,000 RPMs at 70 miles per hour with no drone.

The truck I tested was equipped with extendable tow mirrors, which are actually an option that has a negative cost, meaning that if you choose it, not only do you get bigger mirrors, but Toyota also gives you a few hundred dollars back, because they're black plastic and not chromed, and therefore cheaper for Toyota. I probably would have appreciated them more if I had a chance to test the Tundra's towing, but I did not. I found them difficult to adjust so that blind spots were eliminated (they are at least six inches from the door at the closest point, and the far edges are almost 18 inches from the door, making narrow streets and parking lots hazardous), although a smaller convex mirror underneath the main power adjustable mirror filled in most of the unknowns behind me. Still, I'm glad that I always double check with a head turn before changing lanes, or otherwise I would have mauled a few cars on the road, not to mention the lovely dark green paint of my test vehicle.

My third day with the truck, there was a snowstorm in my area. I brushed off the truck, turned the knob to four wheel drive mode, and headed to work. Toward the beginning of my trip, traffic reports referred to multiple accidents and a vehicle fire on the expressway I usually take, so I took the first exit I got to and made it to work via snowy backroads the rest of the way. The Tundra was a champ in the snow; I felt safe and confident driving it in the white stuff. I wouldn't call it a "mountain goat," but I was glad to have a large, heavy, four wheel drive vehicle on my way to work that day.

Bottom Line
The Tundra seemed like a capable, comfortable truck. It has plenty of power and an intelligent, fast-reacting transmission. Although I didn't tow anything with it or even haul anything in the bed other than some snow that fell into it, most likely many of its buyers won't either. After all, its 5 1/2 foot bed isn't very long, and serious truck users probably wouldn't buy a leather-lined, JBL/navigation-equipped truck with a longer cab than cargo bed. I used it to commute to work and run errands for a week, and at first, I felt self-conscious doing so, thinking I'd have a Ford or GM driver give me the finger for driving a Tundra. That didn't happen, but then I started thinking about how obnoxious it was for a single driver to commute to work (it's about 20 miles each way) in a four door, V8-powered pickup truck. Again, no reaction. I had more people giving me odd looks for driving a Prius to work than I did driving the leviathan Tundra to work, and that's a little sad. If only our planet had unlimited oil, if only gas were $1 per gallon, if only parking spaces were bigger, the Tundra would be the perfect family vehicle. In a way, I'm going to miss driving it, because it's a lot of fun to have a V8 underfoot, but I doubt there is anyone who needs a vehicle like the CrewMax. There are more spacious family vehicles with more interior volume and much better fuel economy, and there are pickups with cargo boxes much bigger than the CrewMax's short one, but it really IS a comfortable, capable truck. It's just not something I'd feel right about driving regularly to my office job.

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President Bush Expected To Sign Automotive Child Safety Act

By Chris Haak

02.21.2008

The US Senate has passed the Cameron Gulbransen Kids and Cars Safety Act, which will direct the NHTSA to develop rules that require automakers to equip vehicles with auto-reverse mechanisms on power windows (when obstructions are encountered), a brake-shift interlock that prevents the vehicle from being shifted out of park without the brake pedal being depressed, and technology (such as mirrors, sensors, or cameras) allowing drivers to see obstructions behind the vehicle when backing up.

President Bush is expected to sign the bill, which was passed by the House last year, into law. It is named for Cameron Gulbransen, who was a two year old accidentally killed by his father in 2002 when he backed the family SUV over the child.

More than 1,000 children have been killed in non-traffic, non-crash events. 46% of those deaths occurred when the children were backed over by a vehicle, while 24% were blamed on hypothermia, 13% from a child placing a vehicle in motion, and 3% from strangulation from a power accessory (such as a window).

Like many safety features, this law's requirements will increase the price of most vehicles (unless they are already equipped with these features). It's a shame that parents aren't able to closely monitor where their children are when moving cars in the driveway; I know that in spite of being equipped with a backup camera, I refuse to move our van without checking behind it and knowing that our children - and the neighbors' - are in my line of sight next to, or in front of, the vehicle I'm about to back up. But if this saves even some lives, it might be worth it. The problem is, drivers will still have the responsibility to check the display screen for obstructions. My guess is that more basic models will not have rearview cameras, but will employ small sonar sensors in the bumper instead. Our van also has those, but it beeps so loudly that my wife often turns it off, lest it wake a sleeping baby.

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Honda's Struggling Acura Brand To Go More Upscale

By Chris Haak

02.21.2008

In spite of being the original Japanese luxury brand, getting its start in the US way back in 1986 (years before Lexus or Infiniti launched), Acura has been the least successful Japanese luxury brand in the US for the past several years. Part of Acura's problem is that it has never offered a rear wheel drive-based vehicle for sale (other than the limited production NSX sports car), while other luxury brands such as Mercedes-Benz, BMW, Infiniti, Cadillac, and Lexus all have lineups consisting primarily of rear- or all wheel-drive vehicles. Another issue is that Acura has never sold a vehicle with an engine larger than a V6, while its competitors all offer V8s (or larger, in some cases). Couple those issues with sharing most platform components with Hondas, as well as some recently questionable styling decisions (such as the MDX and the 2009 RL's mid-cycle enhancement), and the resulting vehicle is a more expensive Honda with some nicer trim, and a higher price. Killing its popular volume model, the RSX sport hatch, and eliminating well-known model names such as Legend and Integra didn't help either.

In 2007, Acura's sales were at their lowest point since 2003. Acura's overall sales for the past five years look like this:

2007: 180,104 (-10.5%)
2006: 201,223 (-4.0%)
2005: 209,610 (+5.4%)
2004: 198,919 (+16.4%)
2003: 170,918

The 2007 weakness occurred not because of the trucks (the RDX was up 154.9% because it had just been launched a year before, and the MDX was up 8.3%), but because every car model saw double digit declines. The TSX entry luxury sedan (pictured at left) and TL slightly-higher-than-entry luxury sedan will be replaced for the 2009 model year, and the RL sedan will be refreshed for the 2009 model year (though it's a relatively mild update, and doesn't address most of the car's most fundamental problems: price, sharing a platform with the Accord, and the lack of a V8), but either there is a small timing issue with Acura, or a major product planning problem there.

On the heels of this bad news, Acura told dealers at the NADA convention to expect a "huge shift" in the next year that will "move the brand closer" to tier 1 luxury brands such as Lexus, BMW, and Mercedes-Benz. The news has dealers excited; in fact, they were told to expect one new vehicle per year ("new" is defined as refreshed existing models) for the next several years. The detailed product plan will be revealed to dealers at their meeting in New Orleans in April.

This all sounds like good news, but I'm still not convinced that Acura knows how to manage a luxury brand. They build cars with very nice interiors and a lot of technology packed into them, with good driving traits (given their front wheel drive origins), but the current lineup isn't really anything special. The TSX is a rebadged European Honda Accord, the TL is a rebodied US Honda Accord, the RL is a rebodied US Honda Accord with all wheel drive added, the MDX is a rebodied Honda Pilot, and the RDX is a rebodied Honda CR-V. This platform sharing makes Acura cars reliable and fundamentally sound like their Honda cousins, but doesn't really do anything to make buyers feel special, or that they are buying more than a higher trim level on a Honda.

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Microsoft to Announce Another Major Automaker Partner by End of 2008

By Chris Haak

02.21.2008

Ford's popular SYNC system, which allows simple voice-activated integration of cell phone, iPod, and other electronic devices with its cars, was developed by Microsoft. Part of Ford's deal with Microsoft was that Ford had exclusive rights to the software for 18 months, but Microsoft is free to offer it to other automakers at the end of 2008. Microsoft also has provided a system similar to SYNC to Fiat (which, having been on the market since 2006, actually predates its cooperation with Ford).

According to the Detroit Free Press, the general manager of Microsoft's automotive business unit, Martin Thall, said that Microsoft plans to announce a deal to utilize a system similar to SYNC with another major automaker's vehicles. He did not indicate which manufacturer it would be or whether it would be one that sold vehicles in the US.

For its part, Microsoft gives credit to Ford for being an early supporter of the technology, which has proven popular with consumers. Last year, over 30,000 vehicles equipped with SYNC were sold, and Ford expects over one million SYNC-equipped vehicles to be on the road by early 2009.

Aside from working with automobile manufacturers, Microsoft also is working on adding new features to its software. These include tighter integration of things such as real-time traffic, navigation, and point-of-interest-directories; Fiat is adding something called Ecodrive to its system, which will provide feedback to drivers about how they can reduce their environmental impact. (I'm guessing it will be a lot of "please slow down" and "don't brake so hard." I don't need a computer to tell me those things, since I have a wife!)

In the more distant future, Microsoft would like to add advertising relevant to a user's current location. I can see why Microsoft would love to get their hands into that area, but as a consumer, I feel that our society is already way oversaturated with advertising; it's bad enough that companies are chomping at the bit to show ads on cell phones (and next time you're at a professional sports game, look around you at all the advertisements), but to start encroaching on navigation displays under the guise of "providing a service" is personally offensive to me. Of course, if SYNC without advertisements was $395 and with advertisements was $195, then I'd be OK with the concept - or, if the system allowed the driver to disable the advertising functionality, with the understanding that ads the driver might find relevant would no longer be displayed, I wouldn't have as much of an issue with the concept.

The convergence and simplicity of the SYNC system is definitely the future of in-vehicle electronics, and I'm glad that SYNC is forcing other automakers to either join the Microsoft bandwagon or (like in the 2008 Cadillac CTS) to invent competitive systems with similar functionality.

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Volkswagen, a Glutton for Punishment, To Attempt Phaeton Again

Are they "Attempting Phaeton" or "Tempting Fate?"

By Chris Haak

02.19.2008

The Volkswagen Phaeton luxury car hit the US market in November 2003 as the Volkswagen brand's flagship and with the hope on the part of the company's management that it could forever change the brand's "people's car" image in the minds of consumers and vault the brand to Tier 1 luxury car status. The car's sales goal was 5,000 units per year.

We all know what happened next: the car hit the market and consumers stayed away in droves. It had many problems, but the top three were probably: 1) the car was too similar in price and size to an Audi A8, yet not sold at much of a discount; 2) the car's $70,000 starting price was nearly double the price of the next-lower Volkswagen model, leaving too much daylight between the two models, and 3) the Volkswagen brand does not carry the level of prestige that a $70,000 to $100,000+ vehicle requires in order to be successful. Annual sales for the Phaeton during its time on the US market were:

2003: 343 (November and December only)
2004: 1,939
2005: 820 (down 58%)
2006: 235 (down 75%)
2007: 17 (down 92%)

The worst part of the Phaeton experience for VW was not its US sales thud, but how the development of the technically advanced car - including one of the most impressive assembly plants in automotive history - distracted resources from the development of the company's bread and butter products - the Passat and Golf/Jetta - which forced the company to keep them on the market longer than they would have liked to and cost the company many sales as consumers stayed away from the models in need of a refresh.

Stefan Jacoby, CEO of Volkswagen of America, is toeing the company line (the one re-established by Ferdinand Piech) by stating that the Phaeton should not have been dropped from the US lineup (it's still sold in Europe) because it's so difficult to launch a new car in the US and the German management had sky-high expectations for the car.

However, Mr. Jacoby offered some more hints about the Phaeton returning to the US, but it's expected to debut in Europe in 2010 and would land in the US sometime after that. To differentiate itself from its corporate cousin, the Audi A8, the next Phaeton will be far cheaper (around $55,000 to start) and shorter. Diesel power, not available in the previous US-spec models, is likely to be offered.

Building the Phaeton in the first place was the mistake, not pulling it out of the US market. I mean, is 17 units (or even 235 units) sustainable? If a car that reaches 40% of its sales objective in its BEST sales year isn't one to withdraw from the market, I don't know what is. With that being said, positioning the Phaeton (which will remain the name of the new car, in spite of its prior lack of sales success) as more of an E-class/5-series competitor rather than as a peer of the S-class/7-series at the same price should ensure better sales results. Volkswagen manages a large portfolio of brands worldwide (VW, Audi, Lamborghini, Skoda, Seat, Bentley, etc.), but it seems funny that they have so much trouble defining their own brand in the US. At the very least, I'm betting that the 2010 or 2011 Phaeton will sell more than 17 units.

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2008 Toyota Prius Review

By Chris Haak

02.18.2008

The Toyota Prius has been on a real sales tear for the past year. US sales of the hybrid five-door leapt from 106,971 in 2006 to 181,221 in 2007 (a 69.4% increase). Prius sales were slightly down from 2005 to 2006, but were up another 37.1% in January 2008 compared to January 2007.

So, what makes this car successful? Is it a great car, or just a car boosted by its name recognition and its own green hype? I borrowed one for a week from Toyota to find out for myself.

Exterior
The Prius won't win any beauty contests. It's nearly slab-sided with an extreme wedge shape. Let's be kind and say that form follows function; its shape minimizes hood space (not needed because its small 1.5 liter four cylinder occupies little space) and maximizes passenger area, while putting aerodynamics ahead of most. For example, the roof's highest point is above the front passengers' heads, but it then quickly angles downward to the back bumper, to the benefit of fuel efficiency, but at the cost of rear passenger headroom. If you're over six feet tall, your head will probably hit the ceiling in the back. At 6'4", I didn't stand a chance. If you drive a Prius, expect people to notice you, for better or worse, in spite of the vehicle being toward the top of the sales charts.

Interior
In spite of technically being classified as a midsize vehicle by the EPA, the Prius feels much smaller than an Accord or Camry, although in terms of volume, the Camry and Prius are relatively close (EPA passenger volume of 101.4 cubic feet for the Camry versus 96.2 cubic feet for the Prius), but the narrower width of the Prius (67.9 inches versus 71.7 inches for the Camry) make the vehicle feel more confining. Also, as noted earlier, the rear roofline drop in the Prius costs about an inch and a half of headroom compared to the Camry. Still, for a small car that is outweighed by the Camry by over 500 pounds in some models, the Prius is a marvel of packaging. From the driver's seat, with the seat all the way back, I had no complaints about space, though it's definitely narrower than I am used to in my 2004 Honda Accord.

The design of the interior does its best to keep the space-age theme of the exterior intact. To that end, there is no gauge cluster in front of the driver. Instead, a horizontal row of digital gauges (mainly a speedometer and fuel gauge) are further forward, at the base of the windshield. This relocation allows for a small circumference steering wheel, which I appreciated, because it doesn't have to be large enough to see gauges through the top half of it. There is a standard touch screen LCD display at the top of the center stack; models with navigation obviously have the navigation system in this location. Unfortunately, my model was more basic and lacked navigation, but the screen was still important, as it was the main control and display for audio, climate, and fuel consumption functions. In spite of being a technophile and having no issues with high-tech things, it was a bit annoying to have to move to the "climate" function to check the temperature setting or to the audio function to check the current radio station. However, Toyota does help a bit with this issue by having more duplicate controls than normal on the steering wheel. Functions on the wheel include temperature up/down, front and rear defog on/off, audio mode, audio volume and audio preset up/down. There were several storage spaces scattered around the interior, including a center console, a cubby beneath the radio, and dual glove boxes, so that was not an issue. The seats were comfortable yet firm (just as I like them). Visibility to the rear was compromised by the split window treatment (the top half of the rear hatch is nearly horizontal, while the bottom half of the rear hatch is nearly vertical and contains a window. My tester had the optional backup camera, which made backing up less of a chore, although its beeping while reverse was engaged made visions of driving a large truck swirl through my mind. (The beeping occurs only inside the car, of course). Cargo capacity is reasonable, although being a hatchback, you have to load the trunk vertically to take advantage of its full cargo volume. Second row seats fold flat for additional cargo flexibility.

Driving Experience
I already had sat in a few Priuses, and was very familiar with the way they looked, but I had never driven one before, and was looking forward to seeing what the experience was like. The smart key-equipped model I drove allowed me to keep the key fob in my pocket at all times, unlocking the front doors when I touched the handles and locking them if the transmitter was outside the car by touching a small button on the door handle. Just in case of an electrical problem, the transmitter conceals a physical key inside it that can be used to enter the car in emergencies. I think I figured out one area that Toyota saved some of the 500 pound weight difference from the Camry to the Prius: the doors opened with a light, hollow sound. They seemed to close with an authoritative "clunk," but they felt a little chintzy when pulling the handle and hearing an echo as they opened.

Once in the driver's seat, transmitter still in my pocket, I was greeted by a large circular power button on the dashboard. More basic models not equipped with the smart key system need the driver to "dock" the transmitter into the dashboard before pressing the start button, but this was not necessary in my test vehicle. To turn the car on (since by doing so, you aren't necessarily "starting it" - more on that later), you just put your foot on the brake pedal and press the power button. The car hums and whirs for a few seconds, and a green "ready" light appears on the dash. Pressing the power button without one's foot on the brake will turn the car onto accessory only mode, which is fine for listening to the radio, but doesn't get you very far on the road.

The gearshift is a stubby little contraption below the power button on the dashboard that is completely electronic, unlike any gearshift I'd used before. To engage reverse or drive, simply keep your foot on the brake and move the joystick-like gearshift to R or D. Once you arrive at your destination, park is engaged by pressing a P button above the gearshift lever. The parking brake, surprisingly, is a conventional cable-operated foot pedal.

Driving the Prius was - interesting. Transitions where the gasoline engine engages are noticeable, but not by any means harsh. On cold mornings as we've had in Pennsylvania for the past week, the gasoline engine has to run to warm up for interior heat, even if the hybrid system would otherwise not need it. For this reason, Toyota recommends grouping trips together to get maximum fuel economy, as a warmed-up Prius will only need to run the gasoline engine for extra power or to recharge its batteries. Proving this point, on my 20-mile commute to work, I got the best fuel economy the first morning because the car was covered by ice and I warmed it up in the driveway for 15 minutes before leaving, and I reset the fuel consumption calculator as I started driving.

When the engine is warmed up and the battery is sufficiently charged, the Prius can (in my experience) drive up to about 20 miles per hour solely on electric power, if the driver has a gentle right foot. I tested this by turning off the heater and stereo (to clearly hear the silence of the engine not running) and driving from one end of our local shopping center to another solely on electric power. It's an interesting experiment (if also slightly dangerous; one woman who probably didn't hear the car nearly walked in front of me), but almost more of a video game-type novelty to me more than anything. Electric-only operation is great to have toward the end of my commute every morning, where two expressways merge together and traffic backs up. In fact, the car seemed to get its best economy in this situation, since the engine doesn't run when the car is stopped, and crawling slowly toward the crowded merge point can be done with the electric motor only.

Returning to my earlier comment about the experience being video game-like, the LCD display encourages this perception by showing the battery's charge status, whether the engine is running, whether the electric motor is engaged, whether the battery is being charged or discharged, and the instant fuel economy to one decimal place (it shows 99.9 when on electric-only operation, though technically it's an infinite mpg, because it's using no gasoline). The info computer also has a consumption feature that is the most detailed fuel economy record I've ever seen in a vehicle. Not only does it show the average economy since the last reset, but also the number of miles since it was reset, instant mileage on a constantly-moving bar graph, but also a running series of bar graphs showing the average economy at five minute intervals for the previous 30 minutes. These bar graphs also show the amount of electricity regenerated and put back into the battery during each five minute period.

So, what does it feel like to drive a Prius, other than the unique experience of the start/stop process and EV-only operation? Driven conservatively, it feels almost like a normal, albeit a very underpowered car, with some unusual sounds added and occasionally normal sounds subtracted. However, merging into a fast-moving expressway is an adventure, as the tiny engine howls and wheezes as it struggles to get the car up to speed. If you're in the right lane and see a small opening in the fast-moving left lane, there's almost no chance of getting it without eliciting a rude gesture from the car that will be behind you. A V6 midsize sedan could handle those scenarios with no issues, and even newer four cylinders with horsepower ratings in the high 100s (around 165-175 for most) could probably handle that scenario. Steering is electric rather than hydraulic, which is a necessity in a car in which the engine may or may not be running, but definitely lacks feel. However, I'd rate it higher than the electric power steering in the Chevrolet Cobalt 1LT that I drove a few months ago. I did not push the limits of the car's handling; although it did not feel unsafe by any means, a narrow track coupled with small wheels (only 15 inches) and Toyota's preferred soft suspension tuning did not inspire confidence.

The other issue with driving a Prius is not how the car drives, but how other drivers react to it. Some people really love the Prius, what it stands for, and how it reflects upon its owners' choices and priorities; others feel that Prius drivers are smug, holier-than-thou do-gooders who think they're smarter than everyone else. Personally, I probably fall somewhere in the middle, although I definitely noticed both extremes in my time with the car. For example, one evening on my commute home from work, a guy driving a 2001 Mustang GT clearly couldn't stomach the thought of having a Prius in front of him on the highway. I didn't do anything to him, but he tried passing me on the right several times (traffic was relatively heavy and many cars were traveling in the left lane). He probably assumed that I'd be a traffic impediment on his way home.

The strange nature of the Prius' power on/off routine can also lend itself to problems. For example, when I arrived at work one morning, the Prius was in EV mode while I glided into my parking spot. I put the car in park and thought that I turned it off (the engine was not running), but when I got back to the car hours later, I was horrified to see that it was idling for the entire time. At least the car was warm for me on a cold day. The downside was that hours of idling cost the average fuel economy dearly.

Bottom Line
The Prius is not a great car, but it does serve its primary purposes - saving fuel and advertising Toyota's environmental leadership - better than almost any other vehicle on the market. The lack of engine power, numb steering, indifferent handling, and the "look, I'm a tree hugger!" exterior appearance would prevent me from owning a Prius. I was, however, very impressed by the fuel economy (typically between 44 and 47 miles per gallon on my commute that usually makes my V6 Accord get between 22 and 23 miles per gallon) as well as the impressive technology that underpins the Hybrid Synergy Drive system. I'd be curious to try a Toyota Camry Hybrid for a week, which probably gives a more "normal" experience with only a small penalty in mileage and none of the "baggage" that some associate with the Prius.

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Ford Previews 2009 Ford Fiesta To Be Shown at Geneva

By Chris Haak

02.15.2008

Just over two weeks before its official unveiling at the Geneva Auto Show, Ford has released images of the production Ford Fiesta for Europe. Ford's designers managed to keep the production Fiesta remarkably close to the Verve concept shown in Frankfurt last year (and similar also to the Verve sedan concept shown in Detroit last month).

Ford chose an extremely dull color for the production Fiesta, especially considering all of the Verve concepts shown over the past few months were painted bright, bold colors. In terms of the exterior itself, however, the Fiesta appears to share nearly every one of the Verve's curves (rhyme not intentional) and creases. The only visual differences are slightly smaller wheels, slightly toned down chrome, and other small things like different fog lamps. This shouldn't come as much of a surprise, though, since all of the Verve concepts appeared to be very feasible for production.

The Verve concept (above) and the production 2009 Fiesta (below).Inside, most of the shapes remain faithful to the concept, but the differences between show car fantasy and production car reality (coupled with the relatively low price point that the Fiesta will have to meet) are more apparent. Gone is the really cool red backlighting (which looks similar to the Jaguar XK's Motorola RAZR-esque treatment, only in red instead of blue) that was in the Verve concept, replaced by more conventional gauges and controls. It's impossible to judge material quality from a photo, but it looks stylish and class competitive from the photos.

The Verve concept's interior (above) and the production Fiesta's interior (below).Under its hood, the 2009 Fiesta will feature a lineup of five gasoline and diesel engines. The 2009 model, thanks to strategically placed high strength steel, is actually lighter than its predecessor, which is a trend I'd like to see continue from all manufacturers.

North America won't see its version of the Verve/Fiesta (or whatever its name will be) for a while, but I do prefer the US sedan's styling to the three-door that Europe got. I also prefer the Verve sedan's more conventional front end treatment, with a larger upper grille and more subdued lower grille. Overall, however, Ford should have a hit on its hands. People who want a small car are no longer being forced into an ugly, underpowered box on wheels, and that's great news for the buying public.

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Does Mercury Have a Future?

By Chris Haak

02.14.2008

At last week's National Automobile Dealers Association (NADA) convention, Lincoln-Mercury dealers were looking for news about the fate of the Mercury brand. Ford has previously said that Lincoln will become the volume brand of the Lincoln-Mercury franchise, leaving dealers concerned that Lincoln will not be able to make up Mercury's volume on its own. Ford has also conceded that Mercury, for the foreseeable future, will (in as many words) continue as Fords with waterfall grilles and slightly upgraded interior materials.

While Ford has several new products confirmed to be in the pipeline - a new Taurus, Mustang, Flex crossover, Verve subcompact, and more - there have been no product announcements about future Mercury products. Even some future Lincoln products have been strongly hinted at in recent months - the MKS sedan is coming out later this year, and the MKT concept that debuted last month in Detroit will probably reach production in coming years. So what are Mercury's new products? A hybrid version of the Milan midsize sedan, and powertrain upgrades to the Mariner crossover.

So, where have we seen a similar lack of new product news, and what was the result? Oh yes, Isuzu. Remember what happened to Isuzu? It's leaving the US light duty market in January 2009. Another parallel with the Isuzu situation is that Isuzu left Canada before leaving the US market; Mercury also withdrew from Canada a few years ago.

My guess is that Ford will shut down the Mercury brand once Lincoln's lineup is better filled out (i.e., the arrival of another model or two, such as the MKT crossover). Last year, Ford's only remaining Mercury only franchise resigned, so all remaining Mercury dealers are paired with one or more other Ford brands, removing an obstacle to the brand's elimination.

Another possibility, of course, is that Ford could just continue to create Mercury versions of Ford vehicles. There is little investment required, and the additional sales are probably more than Ford would have if, for example, only the Fusion was available and not the Milan.

No word yet on whether popular Mercury spokeswoman Jill Wagner would jump ship to Lincoln if Mercury is eliminated. If she does that, you know it's the end for Mercury.

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Auto Loan Delinquencies on the Rise

By Chris Haak

02.14.2008

Fitch Ratings, a credit rating company, reported today that the number of auto loans at least 60 days delinquent has hit a 10-month high in January, jumping 12% from December 2007 and 44% from January 2007. Overall, 0.77% of prime and subprime auto loans in the US were delinquent in January 2008.

Subprime delinquencies (for less-credit-worthy consumers) were 4.03% in January, up 10% from December 2007 and 43% from January 2007. They are at the highest rate since late 1997.

Auto loan delinquencies are on the upswing for many reasons, but among them are the more lenient credit standards in previous years, coupled with the housing slowdown and the possibility of a recession. Hylton Heard of Fitch said other than consumers receiving their tax refunds in the coming months, there appears to be little likelihood of this trend changing in the coming months.

Fitch also expects 2008 gross charge-offs (loans that credit card companies are unable to collect) to grow by at least 50% during 2008. None of this is good news for captive finance companies such as GMAC, Chrysler Financial, or Toyota Financial Services, nor is it good news for automakers who depend on readily available and affordable credit to stimulate sales in what is widely expected to be a slow year for sales.

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WTO Finds China Tariffs on Auto Part Imports Unfair

By Chris Haak

02.14.2008

The World Trade Organization has issued a preliminary ruling that China is breaking its rules by giving imported auto parts less favorable treatment than domestically produced parts. China will be asked to either give equal treatment to imported parts, or may appeal the decision. This marks the first time that the WTO has ruled against China's practices.

The complaint was filed with the WTO by the US, Canada, and the European Union on behalf of their domestic auto industries. The high tariffs on imported parts reduce production in the US, Canada, and Europe and result in job losses in those countries, while China's economy benefits.

For its part, China claims that it maintains the same tariff on imported auto parts that it has on importing whole autos to prevent manufacturers from importing mostly-assembled vehicles and putting them together within China's borders to avoid the tariff. You know, the same practice that gets the Dodge/Freightliner Sprinter into the US without being subject to the 25% "chicken tax" and the same process that other foreign companies (including Chinese ones) are employing or considering employing to enter the US market.

Frankly, with the stories about China's business practices and lack of regard for intellectual property (many of which have been covered by this site before) that have been circulating for several years, I'm surprised that this is the first successful sanction of China's practices. It will be interesting to see how this plays out, but it may be too late anyway; those jobs are already lost and China's auto industry is developing at a breakneck pace. Western companies fixated on short-term results have taught their Chinese "partners" how to build modern vehicles, and will likely be marginalized in the coming years as the Chinese automakers' capabilities increase.

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London Will Triple Congestion Charge on Some Cars

By Chris Haak

02.13.2008

London Mayor Ken Livingstone, architect of London's "congestion pricing" scheme that assesses fees on vehicles entering central London since 2003, has taken his idea a step farther.

Initially, congestion pricing only applied to central London and was £5 (about $10). Later, the price increased to £8 (about $16) and the congestion area encompassed a larger portion of the city. Earlier this month, a charge of £200 ($392)was assessed on the most polluting trucks that enter the city center.

Mr. Livingstone's latest initiative with the congestion zone is to assess the "most polluting" passenger cars that enter the congestion pricing zone with a £25 ($49) fee. He doesn't have (at least to my American tastes) the most obnoxious, carbon-spewing vehicles in his target, either. According to Bloomberg, some vehicles in the so-called Band G that will be hit by the higher fees starting October 29 include the Ford Mondeo V6, BMW 335i convertible, BMW 545i and 730i sedans, and the Land Rover Discovery and Range Rover Sport SUVs.

Meanwhile, the congestion charge will be waived for drivers of the least-polluting vehicles such as the Toyota Prius, Vauxhall Corsa, and Peugeot 107 models. Mr. Livingstone himself drives a Prius.

I've already given my opinion of possible congestion pricing in Manhattan, and my opinion of it has certainly not been tempered since last July. Yes, it has reduced the number of vehicles entering central London by about 70,000 per day, but I have a fundamental problem of paying $49 for the privilege of driving in a city (which, let's be frank, usually sucks anyway). That doesn't take into account the cost of fuel or the cost of parking. It's virtually impossible for a middle-class person to commute by car into London's congestion zone, and especially if they have a larger family and need a larger vehicle.

Another irony is that congestion is actually increasing in the congestion pricing zone because more lanes are being dedicated to bicycles and buses, resulting in many of the same types of traffic jams that existed prior to 2003.

Finally, Mr. Livingstone doesn't seem to understand that CO2 emissions and "pollution" are not the same thing. CO2 is reduced only by driving a vehicle with a smaller engine. Pollution can be cleaned up with catalytic converters and particulate filters. It's entirely possible for a large, powerful engine to emit less smog-forming pollution than a small, less sophisticated engine. Don't believe me? Start your V6 powered family sedan in a closed garage and let it idle for 30 seconds - not much smell or smoke, right? Then start a gasoline-powered lawn mower in the same closed garage and run it for 30 seconds. Even though the lawnmower's engine is less than 1/10th as large as the car's, it's emitting far more smoke and pollution (though less CO2). So reducing the CO2 output of the vehicles entering London will save fuel and possibly help with global warming, but they won't do a thing about pollution.

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Chrysler To Eliminate Model Overlap, Combine Dealerships

By Chris Haak

02.08.2008

In December, we reported that Chrysler was undertaking some urgent vehicle improvement steps aimed at getting their vehicles onto shoppers' lists and coming in better than last in comparison tests. Chrysler has also reduced its vehicle lineup by cutting unprofitable models such as the Magnum, PT Cruiser Convertible, Crossfire, and Pacifica. On top of these steps, Chrysler was trying to reduce its dealer count with something called Project Alpha by encouraging more dealerships to offer all of the company's models, rather than just Chrysler/Jeep or just Dodge. The hope was that two standalone dealers would combine into one larger one.

Well, it now appears that previous steps were not enough. Chrysler Vice Chairman Jim Press said yesterday that Project Alpha would be replaced by Project Genesis. (Am I the only one who sees the irony that Chrysler's project name has the same name as an upcoming competitor to its Chrysler 300, the Hyundai Genesis? It's like GM coming up with Project Tundra.) Chrysler executives have described Project Genesis as "Project Alpha on Steroids." (Again, this sounds like a lack of sensitivity to the steriod controversy making headlines throughout the sports world for the past few years. Anything "on steroids" is not a good thing.)

Chrysler is going to basically take a page out of GM's playbook for its Pontiac-Buick-GMC channel strategy: eliminating overlapping models, but making up for it by offering models in all segments if the dealer offers all three brands. In simple terms, if a dealer wants to sell a full lineup, they will have to offer all three brands. The dealers who don't combine will be starved for product and likely have to close their doors or merge with another dealer later anyway.

In theory, this sounds like a good idea. Instead of devoting resources to a Dodge Avenger and a Chrysler Sebring, there will be one midsize car sold under one brand. Instead of a Dodge Nitro and Jeep Liberty, there will be one midsize SUV. Supposely, the company is specifically concerned about overlap in crossovers, SUVs, and cars. A move like this will not only help reduce the dealer count, but should allow Chrysler LLC to focus its resources on one above average product rather than two average products. Reducing the dealer count would also allow each of the remaining ones to sell more vehicles and not have to resort to selling vehicles at extreme discounts just because the dealer down the road is sellng for less.

Project Genesis has no timeframe, and the company will not open its pocketbook for settlements to encourage dealers to close. Instead, it sees its role as more of a facilitator, helping two rival dealers work together to combine operations. A side benefit of the strategy will be that although some models are eliminated, the company plans to add some new models for market segments they do not compete in. A few examples I can think of include subcompacts, compact cars that don't look like trucks (ahem, Caliber), full-size crossovers, and luxury cars above the Chrysler 300.

The product strategy might work, but the medium-term result will be reduced sales; just like Buick's sales took a beating in 2007 due to the loss of three models (Terraza, Rainier, Rendezvous) in spite of their replacement by the excellent Enclave, just because the company says "you used to buy an X, but now you should buy a Y" does not mean that consumers will listen. When GM shuttered Oldsmobile, the Oldsmobile website for years showed alternative GM models. Meanwhile, GM basically ceded that marketshare to competitors. Anecdotally, I know someone who works in what was a small Oldsmobile dealership, and almost all of their Olds customers bought Toyotas for their next car instead of Buicks.

The dealer consolidation plans will also not be easy to implement, especially without Cerberus putting some cash into the mix. Talk is nice, and many dealers agree there are too many franchises, but nobody wants to be the one to shut down. Also, having no deadline or even milestones will not make this something easy to implement. Personally, I work much better knowing I have a hard deadline looming than when someone asks for something "when I get a chance." From 2004 to 2008, Chrysler's Project Alpha managed to reduce the dealer count from 4,000 to about 3,600, or 10%.

"The New Chrysler" has not yet proven that it has the ability to execute its bold plans. All of the most recent launches (Avenger, Sebring, Compass, Patriot, Town & Country, Grand Caravan, 2009 Ram, 2009 Journey) were designed, engineered, and built during the previous DaimlerChrysler regime, so we'll see if the "dream team" of top managers that Cerberus hired to run Chrysler (specifically Jim Press and Bob Nardelli) are able to execute everything that they say they will.

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Washington State's Money Grab - Oops, Fuel Economy Tax

By Chris Haak

02.07.2008

The Seattle Post-Intelligencer reported today on a proposal in the Washington state senate to impose an excise tax on all passenger vehicles based on EPA fuel efficiency ratings. Senate Bill 6923 has the support of both Seattle Mayor Greg Nickels and Sen. Ed Murray (D-Seattle). Examples of the fees range from a Toyota Prius being assessed $60 annually and a Hummer H3 being assessed $180 annually.

Supporters of the bill claim that "the biggest global warming problem in this state is actually from transportation."

However, the next paragraph is telling when one is searching for the true motivation behind this bill. It turns out that "rising fuel costs have lured drivers from their cars while the increased popularity of gas-efficient vehicles has cut back on the number of trips drivers make to the pumps."

Thankfully, I do not live in Washington, so this will not affect me directly, but I do have a problem with this proposal on several levels. Foremost, it's so obviously a money grab and not out of concern for the environment. The problem, as outlined in the previous paragraph, is that motorists in Washington are using too little fuel, causing gas tax receipts to fall. So basically, high gas prices are doing their job of discouraging consumption and encouraging more fuel efficient vehicle sales. The only problem is, that positive trend cuts into the state's revenue stream. But make no mistake, there already is a tax based on fuel economy in Washington and most other places - it's called a gas tax. Use more, and you pay more tax. But with this proposal, use less, pay a new tax.

Second, there's a logical disconnect when they say their state's biggest global warming problem is transportation. While I do believe we are experiencing global climate change, most likely caused by human activities over the past century, I do not believe that Washington's problem is global warming. The skies over Olympia won't be a few degrees cooler if Washington emits less CO2.

Third, a tax that penalizes less efficient vehicles tends to harm lower income individuals more directly, who do not have the ability to trade in their 1982 Caprice Classic for a new Honda Fit. Therefore, they are harmed more than someone who can afford to choose a more economical modern car. These folks are already disproportionately harmed by high fuel prices and gas taxes.

Lastly, commercial drivers would be exempt from this legislation. So the guy who, say, owns a landscaping company and drives a three ton F-350 crew cab as his daily commute, but never fills the pickup bed, is exempt from a tax like this? If the bill became law and this provision stuck, I predict a sudden boom in "self employed" individuals in Washington, claiming that they need their vehicles for business purposes to avoid paying the extra fees.

I hope for the sake of Washington's residents - and for the rest of the country, if their legislators get word of this "bright idea" - that this proposal falls flat on its face, and quickly. Want to tax gasoline? Fine. But don't talk about climate change when high gas prices are already driving the desired behavior.

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Nissan Unsure Whether to Re-Introduce New Infiniti Q Flagship Sedan

By Chris Haak

02.07.2008

The Infiniti Q45, which had been Infiniti's US flagship since the brand's US introduction nearly 20 years ago, ceased production in 2006 (a 2006 Q45 is pictured at left). The car was expensive and didn't offer significant value over the slightly smaller and far less expensive M45 sedan (a 2006 Q45 started at almost $59,000, while a 2008 M45 starts just over $60,000). Many people (myself included) probably also believe that the M45 (pictured below) is a more attractive vehicle than the 2006 Q45 was, as well.

US Infiniti dealers have been pining for a new-generation Q. The chairman of Infiniti's national dealer council, Peter Wilson, is convinced that a flagship will come, but doesn't know what form the vehicle will take. Mark Igo, general manager of Infiniti North America is also among the proponents of bringing back the Q.

There are two major obstacles to building a new Q. The first is Nissan Motor Co. CEO Carlos Ghosn, who has gone on record saying that he isn't convinced that Infiniti needs a Q45. Ghosn is also a very dollas-and-cents oriented manager, so if there is not a strong business case for a new Q, it won't be built.

The second obstacle is actually even more difficult to overcome: Infiniti, which was once a US-only brand, is going global. A new Q sedan no longer has to meet the needs and expectations of US consumers, but now has to satisfy customers in China, Russia, and several European markets. In China, for example, a flagship vehicle is expected to be used as a limousine with a driver. In the US, it would be expected to be large and comfortable, but still have adequate power and an engaging driving experience. Europeans would probably expect the top-of-the-line Infiniti to be smaller than Americans would, with firmer suspension capable of unrestricted Autobahn speeds.

I rode in a 1990 Q45 (pictured at left) when they were first introduced, and it was an awesome machine. Unfortunately, Infiniti's oddball launch strategy of showing rocks and trees instead of the car led to relatively poor sales. Nissan's response was to soften the Q45's driver-friendly persona into a softer, more traditional luxury car. The 2006 Q45 looks like a Buick Lucerne (although the Q45 was out first), but that should not be the styling peer of your brand's flagship. Infiniti should make a performance luxury sedan, something along the lines of a BMW 7-Series, but for less money. Add a long wheelbase model for overseas markets where the car will be used as a limousine, and it should be a formula for the low-volume success that Infiniti would seek from such a model.

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Suzuki To Finally Offer a Vehicle to Haul Its Bikes

By Chris Haak

02.07.2008

Yesterday, Suzuki pulled the wraps off of its Equator midsize pickup. It doesn't take a very sharp eye to see that the Equator is a Nissan Frontier with a different bumper, grille, and headlights. The interior looks exactly the same as a Frontier's, except the horn button has a circle that says "Suzuki" on it rather than "Nissan." (However, the steering wheel itself is identical). The photo to the left is the so-called Quay Equator concept, which is the closest to production-spec shown in Chicago. The olive green truck below, called the Equator Quad, is built to resemble a Suzuki QuadRunner ATV, and is pretty mean looking to my eyes.

Powertrain choices are identical to the Frontier's; the base engine is a 2.5 liter four cylinder that produces 152 horsepower and 171 lb-ft of torque, and the optional engine is a 4.0 liter V6 producing 261 horsepower and 281 lb-ft of torque. A five speed automatic is optional with either engine, and a five speed manual is available with the I4 and a six speed manual is available with the V6.

Suzuki's sales have actually increased about 75% over the past several years, not necessarily on the strength of its products, but on the increased size of its lineup. With consumer concern about fuel economy and gas prices, its small car-heavy lineup should be a recipe for success, but even though midsize pickup sales haven't done well in the US for the past few years, Suzuki still sees an opportunity.

The press release (reprinted below) does not hide the truck's obvious Nissan origins (which may not be a bad idea, since Nissan has been building small pickups with a solid reputation for a while) and also clearly stated that the headline of this post is not in jest; they really are marketing the truck to Suzukiphiles who want a truck to haul their Suzuki motorcycles and ATVs.

Below is the press release:

SUZUKI DEBUTS ALL-NEW EQUATOR MIDSIZE PICKUP TRUCK AT 2008 CHICAGO AUTO SHOW

- 2009 Suzuki Equator makes global debut in Windy City
- Striking activity-oriented Equator concept trucks communicate "Way of Life" brand spirit
- New pickup adds automotive offering for cross-divisional Suzuki product aficionados

CHICAGO (Feb. 6, 2008) – To bolster its versatile and dynamic product line, enhance the company's bold and adventurous brand identity and further expand the growing line of products marketed by approximately 500 Suzuki dealers nationwide, American Suzuki Motor Corp. debuts its all-new 2009 Equator midsize pickup truck at this year's Chicago Auto Show. The introduction of the Equator marks Suzuki's first entry into the midsize pickup truck market and expands the company's offering of activity-oriented cars and trucks.

Leveraging Suzuki's credibility as a maker of lifestyle-oriented, fun-to-use products, the Equator offers the perfect blend of style, utility and off-road capability that truck buyers – many of whom are current Suzuki motorcycle, ATV and marine product owners, loyalists and ambassadors – demand and enjoy. Developed as a joint effort with Nissan North America, Inc., and based on the Nissan Frontier, the 2009 Equator will be available in both Extended Cab and Crew Cab body styles and rear-wheel and four-wheel-drive configurations. The all-new 2009 Suzuki Equator pickup truck is scheduled to go on sale in the United States in the fourth quarter of 2008. Pricing has not yet been announced.

"Since Suzuki has continued to strengthen its brand equity among outdoor enthusiasts, we thought now was the right time to produce a vehicle that meets the additional needs many of these people have," said Mark Harano, president American Suzuki Automotive Operations. "Truck buyers are a particularly good fit for Suzuki since they're likely to participate in motorcycle riding, power boating and other lifestyle-oriented activities that fit with our brand identity and our product portfolio. The Equator provides Suzuki with an opportunity to build an authentic connection with a group of consumers who are familiar with our brand and, in many circumstances, own other Suzuki products."

To introduce the Equator, Suzuki is unveiling three separate representations of the truck during its Chicago Auto Show press conference. The three concepts, coined the RMZ-4 for off-road enthusiasts, Quad for outdoor adventurers and Quay for boating and watersports aficionados, showcase Suzuki's diverse brand spirit, while illustrating the capability and flexibility of the all-new Suzuki Equator.

In addition to Chicago's global reveal of the all-new Equator, Suzuki will showcase the SXForce, a sportbike-inspired concept reinforcing the link between the company's rich motorcycle heritage and versatile line of fun-to-drive automobiles, as well as a range of outdoor and performance-oriented motorcycles and ATVs, including the KingQuad 450, LT-R450 QuadRacer and all-new Hayabusa sportbike, to name a few.

2009 Suzuki Equator
Performance and Functionality
Built at Nissan's manufacturing facility in Smyrna, Tenn., the 2009 Equator features a fuel efficient 2.5-liter DOHC inline four with 152 horsepower and 171 lb.-ft. of torque or an optional 4.0-liter, V6 DOHC engine producing a class-leading 261 hp with 281 lb.-ft. of torque. Designed for outstanding performance and durability, the Equator's V6 engine incorporates an aluminum block with cast iron cylinder liners, forged steel crankshaft, microfinished crankshaft and camshafts, Teflon®-coated pistons, variable valve timing and a silent two-stage timing chain.

The Equator is matched to either a five-speed electronically controlled automatic transmission (I4 and V6), five-speed manual transmission (I4) or six-speed manual transmission (V6), and offers an available shift-on-the-fly four-wheel-drive system with an electronically controlled part-time two-speed transfer case. For enhanced off-road capability, the rugged Equator offers a comprehensive off-road traction system, including four-wheel limited slip, electronic locking rear differential, Vehicle Dynamic Control (VDC), hill descent control and hill start assist.

The Equator's strong, fully boxed frame anchors a long 125.9-inch wheelbase (Extended Cab or Crew Cab/regular bed), enhancing driver and passenger comfort and stability, while its overall length of 205.5 inches (Extended Cab or Crew Cab/regular bed) provides the perfect balance of utility, maneuverability and composure for a midsize pickup truck. The 2009 Equator features an all-steel double-wishbone front suspension and solid axle rear suspension with overslung leaf springs and a long suspension stroke for optimized off-road dynamics. Maximum towing capacity is rated at 6,500 pounds. EPA fuel economy estimates are still preliminary.

Other Equator powertrain components include engine-speed-sensitive power-assisted rack-and-pinion steering for responsiveness and good on-center feel and standard four-wheel disc brakes with Anti-lock Braking System (ABS) and Electronic Brake Force Distribution (EBD). Equator also features a variety of available wheel and tire packages, including 16-inch off-road style wheels with rugged 265/75R16 tires and 17-inch wheels with 265/65R17 tires.

Styling and Utility
The all-new Equator features a contemporary exterior design with a number of unique Suzuki elements, including hood, front fenders, grille, bumpers, front fascia and tailgate. Both Equator Extended Cab and Crew Cab models offer an available high-utility bed that includes a factory-applied spray-on bedliner and an extensive tie-down system with adjustable tracks, providing ultimate cargo hauling flexibility through the use of five special "C" cross-section rails mounted in the bed (two channels in the bed floor and one each on the bed side rails and the bed header panel). Removable utility cleats slide into the channels, providing a wide range of attachment points for securing cargo – including Suzuki motorcycles or ATVs. Suzuki also will offer specialized bed accessories that make loading, securing and transporting a motorcycle or ATV easier than in many competitive trucks. To further satisfy the needs of active lifestyles, Suzuki will offer its customers a full range of more traditional accessories for use with the channel system, including bed dividers, sliding cargo trays and modular storage units. Crew Cab models will offer an available roof rack.

Interior
The Suzuki Equator offers the driver and up to four passengers a functional interior that combines versatility, cargo utility, comfort and convenience. Both Extended Cab and Crew Cab body styles feature flip-up rear seats, a fold-flat front passenger seat and removable storage boxes tucked beneath the rear seats to provide additional cargo capacity. The Equator offers additional convenience features such as a dual glove box with lock, damper and lamp, center console storage and one-liter bottle storage integrated into the front doors. A host of cupholders and power points are standard throughout the truck. Equator Crew Cab also will offer available leather-appointed seats, including a power-adjustable driver's seat, heated seats, heated mirrors and a factory-installed moonroof. Additional available interior amenities include a Bluetooth® hands-free phone system, Rockford Fosgate-powered audio system with six-disc in-dash CD audio system, optional satellite radio and MP3 capability and MP3 player aux-in jack.

Safety and Packages
The all-new Equator includes a comprehensive list of standard safety equipment, including zone body construction with front and rear crumple zones, dual-stage front supplemental air bags with seat belt sensors and a front occupant classification sensor, three-point front seat belts with pretensioners and load limiters and Tire Pressure Monitoring System. To make the safety story even stronger, the Equator comes equipped with supplemental front seat side-impact air bags and standard supplemental curtain air bags for side impact and rollover protection for front and rear outboard passengers. Additionally, Extended Cab and Crew Cab models provide three-point seat belts for all rear seat occupants, including the center position for the Crew Cab. The LATCH (Lower Anchors and Tethers for CHildren) child seat anchor system is provided in the rear seat of the Crew Cab model.

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Acura Shows Refreshed 2009 RL Sedan

By Chris Haak

02.06.2008

Acura's flagship RL sedan has had a rough couple of years. Since the most recent version hit dealers for the 2005 model year, sales have been abysmal. The problems with the car were numerous: it was expensive compared to the TL in the same showroom, it only offered V6 power when its competitors offered V8s, it was built on a derivative of the front-wheel drive Honda Accord platform, and the interior was actually smaller in some dimensions than "lower" Acura models.

Today, Acura revealed its 2009 RL, and attempted to address as many of the above concerns as it could, while still constrained by the basic dimensions and passenger compartment of the existing model (it's not all-new, but a so-called MCE, or mid-cycle enhancement).

Changes to the 2009 RL include a shield-like grille similar to the ones found on the MDX and RDX crossovers (which many people dislike), an enlarged 3.7 liter V6 that produces 300 horsepower and 271 lb-ft of torque. The interior has been enhanced with better materials, a redesigned center stack, and more rear seat room (which was likely accomplished by either thinning the front seatbacks, thinning the rear seatbacks, or both), and upgraded electronics. Electronic gadgets include real-time traffic monitoring, real-time weather monitoring, Bluetooth audio, heated and cooled front seats, and a USB connectivity port. The RL's interior, already extremely nice, should be even nicer, although it's probably still too tight inside.

The car's rear end styling is an improvement (though it reminds me of a Civic coupe from a distance), but the grille isn't an improvement to my eyes. Rumors are that the next TL may borrow a derivative of the next NSX's V10 for its top engine. Hopefully, Acura will also be willing to move to a rear-wheel drive-based chassis for the next RL, and add some interior space to its flagship. To have a flagship that is outpowered and out-spaced by "lesser" vehicles is unacceptable. Acura is at a crossroads right now; they can either change the direction that their latest products have taken and go for a more premium customer, or they can drift closer to Honda, becoming to Honda what Mercury is to Ford.

The full press release is available here.

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Jaguar's Product Planning Department Keeps Busy

By Chris Haak

02.06.2008

While Jaguar is still owned by Ford, its sale to Tata is literally just a matter of time as final negotiations on the sale (along with that of Land Rover) wind down. However, the folks in Coventry aren't sitting still, and in fact are rumored to have some intriguing ideas up their sleeves. Whether Tata wants to fund all of the projects is another question, but supposedly Jaguar management has presented business cases for a few of these scenarios to Tata.

XJ Sedan Replacement
Jaguar's current flagship XJ sedan is a modern vehicle constrained by styling that looks entirely too similar to a 33 year old Jaguar. The company is well aware of this issue, and in fact, this is the reason that the new XF sedan has finally shed the "new car under old skin" styling directive at Jaguar. It's hard to say exactly what this car will look like, but insiders have said to expect it to be wider and lower than the current XJ, and an even more revolutionary departure from the current XJ than the XF was from the S-Type. The car is scheduled to be unveiled in spring 2011.

XF Coupe
Jaguar has presented plans to turn its new and thus far well-received XF sedan into a two door coupe. A convertible variant was ruled out, but the XF coupe, if approved, would likely also have a lowered roofline to cut an even sleeker silhouette. This model would probably be relatively easy to create, but would it look as good as an XK coupe? Probably not. Plus, see the next paragraph.

XK Sedan
If they might turn a sedan into a coupe, why not turn a coupe into a sedan? Reports also state that Jaguar has also proposed stretching the XK coupe a few inches and adding rear doors. The XK sedan would probably still not have a very practical rear seat, but it would probably look great, and serve as a worth competitor to the upcoming Aston Martin Rapide four door coupe.

F-Type
Lastly, Jaguar is also contemplating a reborn F-Type sports car, which would be designed to compete directly with the Porsche 911. The company is apparently undecided as to whether the car would have a lightweight aluminum chassis, or the more conventional steel, but regardless, this vehicle apparently has the highest priority among the last three models above, and could really see the light of day. Jaguar showed an F-Type concept at the 2000 Detroit Auto Show, but didn't produce the car due to falling sales and Ford's desire not to allow the car to infringe upon Aston Martin's turf. With Aston Martin out of the picture, and Ford soon to be, it's no longer a problem.

The Jaguar brand has some awesome potential. I'm glad to see that the stewards of the brand aren't resting on their laurels with the XK and XF, and instead have a lot of great ideas up their sleeves. It makes one wonder if Ford was the problem with Jaguar, and not Jaguar itself, that caused Jaguar to be such a money pit for Ford over the past several years.

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2009 Dodge Challenger Makes Its Official Debut

By Chris Haak

02.06.2008

Just over two years after making its debut in concept form at the 2006 North American International Auto Show in Detroit, the full production version of the 2009 Dodge Challenger has been unveiled in Chicago.

Pricing for the Challenger was released months ago, and dealers have already been taking orders, in spite of having no photos of the production car to show to prospective customers other than a handful of teaser images. Of course, with first year production limited and a lot of pent-up demand from Baby Boomers hearkening for the big horsepower days of the 1960s, first year cars will be selling for well over MSRP. They've already been on eBay with the chance to bid for amounts above MSRP.

Personally, I prefer the Camaro's styling, as it manages to pay tribute to the great 1969 model without copying it. It's interesting that GM and Chrysler showed the Camaro and Challenger at the same auto show, yet Dodge is beating Chevy to market by a year or more. It certainly helped Chrysler that they already had a viable rear wheel drive platform in the LX (which underpins the Charger, Magnum, and 300), while GM still had work to do on its global rear-wheel drive large vehicle architecture.

The first year production will be limited to 6,400 cars, and all will be in SRT8 trim with a 425 horsepower 6.1 liter Hemi V8 and a five speed automatic. Subsequent model years will add a Tremec six speed manual transmission, an R/T trim with a smaller 5.7 liter Hemi V8, and a 3.5 liter V6. Colors for the first model year will be limited to Hemi Orange (shown in these photos), Bright Silver Metallic and Brilliant Black Crystal Pearl Coat, with faux carbon fiber decals on the hood for all three colors.

Please see the press release after the jump for more information.

PRESS RELEASE:

OVERVIEW
The Ultimate Modern American Muscle Coupe

All-New 2008 Dodge Challenger SRT8®

- Iconic Dodge muscle car returns after a 35-year absence
- Design stays true to Challenger heritage while delivering a host of modern amenities and "race inspired, street legal" SRT DNA
- Powered by a 6.1-liter HEMI® V-8 engine that produces 425 horsepower and 420 lb.-ft. of torque
- Each 2008 Dodge Challenger SRT8 features limited-edition, numbered dash plaque

The return of the iconic Dodge Challenger brings what pony car fanatics crave: ground shaking performance, unmistakable design cues reminiscent of the original Challenger, world-class ride and handling characteristics and benchmark braking. On top of that it features a wide variety of modern amenities and technology designed to delight a new generation of driving enthusiasts.

"The all-new Dodge Challenger SRT8 is engineered to give customers everything they want in a modern muscle machine," said Mike Accavitti, Director – Dodge Brand and SRT Global Marketing, Chrysler LLC. "The new version of Dodge's American classic boasts tire-smoking performance and head-turning design while offering a wide array of state-of-the-art technology, such as GPS navigation, 'Keyless Go' entry, a MyGIG™ infotainment system and UConnect hands-free communication."

Developed by Chrysler's in-house performance engineering organization, the 2008 Dodge Challenger SRT8 was engineered with a focus on the five pillars of every SRT vehicle: bold exterior design that resonates with the brand image, a race-inspired interior, world-class ride and handling across a dynamic range, a standout powertrain and benchmark braking.

Dodge will offer the limited-edition 2008 Dodge Challenger SRT8 in three colors: HEMI® Orange, Bright Silver Metallic and Brilliant Black Crystal Pearl Coat. Each two-door, rear-wheel-drive coupe will be produced with a numbered dash plaque, carbon fiberlike hood stripes and will be powered by SRT's 6.1-liter HEMI V-8 engine that boasts 425 horsepower and 420 lb.-ft. of torque.

With a U.S. Manufacturer's Suggested Retail Price (MSRP) of $37,995 (including $675 destination), the all-new 2008 Dodge Challenger SRT8 arrives in Dodge showrooms this spring.

The 2008 Dodge Challenger SRT8 vehicles will be manufactured at Chrysler's Brampton, Ontario, Canada assembly plant.

Performance targets for the all-new 2008 Dodge Challenger SRT8 include a 0–60 mph time in the low 5-second range, 0–100–0 mph in less than 17 seconds, a ¼-mile elapsed time of less than 14 seconds, 60–0 mph braking distance of approximately 100 feet, and a skid pad performance of 0.88 g.

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Volkswagen Reveals 2009 Routan Minivan in Chicago

The best-looking Chrysler minivan will be sold by Volkswagen.

By Chris Haak

02.05.2008

Actually, Volkswagen hasn't revealed the van yet, but will later today. Unfortunately for VW, German magazine AutoBild broke the embargo last night with photos and the press release, so other websites quickly followed suit.

The Routan is built by Chrysler LLC for Volkswagen, and therefore has a nearly identical interior, as well as the same exterior body panels between the A-pillar and the D-pillar. Unfortunately for Chrysler, the parts that are different on the Routan look (to my eyes) far better than on the original vans.

The front end is more contemporary looking, with swoopy headlights and a chrome grille, plus nice air dams. The rear is differentiated from the Chrysler vans with different taillights that are reminiscent of a Touareg or Golf.

The van is powered by either a 3.8 liter V6 that produces 197 horsepower and 230 lb-ft of torque, or an optional 4.0 liter V6 that produces 251 horsepower and 259 lb-ft of torque. These engines are identical to the ones offered in the Chrysler Town & Country and Dodge Caravan.

What isn't mentioned in the press release (which you can find below) is whether the van offers either Chrysler's new Swivel-n-Go or Stow-n-Go second row seats. I saw rumors a few months ago that the Routan may not get the trick seats (at least the Swivel-n-Go ones) since they're something of a Chrysler exclusive.

The van goes on sale later this year starting below $25,000. I haven't seen VW's sales goals for the Routan, but it should do reasonably well among existing VW customers who need more interior room. The biggest shame is that after all of the waiting for VW's newest minivan, it looks good but nothing like the cool Microbus-like concept shown years ago.

The press release from Volkswagen is below:

VOLKSWAGEN UNVEILS ROUTAN AT CHICAGO AUTO SHOW
European inspired design and driving dynamics highlight new minivan
CHICAGO – Volkswagen of America today unveiled the Routan, an all new seven-passenger minivan. It delivers the best of both worlds: a vehicle that combines European sensibilities in design, fit and finish, and handling characteristics with market relevant features and outstanding value.

The Routan is instantly recognizable as a member of the Volkswagen family, with its stylized front grille and exterior treatments. The interior enhancements create an environment that is visually pleasing, modern, and meticulously detailed. The high quality materials, beautiful textures and rich luxurious colors are combined with exacting tolerances and superb fit and finish. While pleasing and contemporary, the interior also follows the traditional Volkswagen design philosophy that form follows function.

Second row captain's chairs offer an increased level of luxury and comfort while still providing the convenience of a traditional minivan, with over 32.7 cubic feet available behind the third row seats and a full 83 cubic feet is available behind the second row.

The Routan will come standard with a 3.8L V6, offering 197 hp and 230 lb. ft. of torque when combined with the standard six-speed automatic transmission. A 4.0L V6 will be available rated at 251 hp and 259 lb. ft. of torque. Routan features European tuned suspension and steering optimized for handling and improved driving dynamics. Standard all-season traction control and ESP, brings safety and security to the Routan.

The Routan comes with a host of unique features, including:

• Conversation Mirror
• Rear seat entertainment system with two 9 inch screens for second and third row, wireless headsets, and remote control
• Dual power sliding doors with power windows
• Touch screen navigation with twenty meg hard drive
• Power lift gate with flood lamp
• Thirteen cup holders

Volkswagen delivers a competitively priced entry into this high volume segment with prices starting below $25,000. The Routan will be built in an already existing facility in Windsor, Ontario.

With Routan, Volkswagen dealers add a vehicle that will provide additional, incremental growth in the market. A distinctly designed minivan at an attractive price point will broaden the brand portfolio, while providing a roomy alternative to existing Volkswagen owners.

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Chevrolet Traverse Large Crossover Revealed in Chicago

By Chris Haak

02.05.2008

GM today revealed its 2009 Chevrolet Traverse crossover, which will compete not only with other larger crossovers such as the Mazda CX-9, Ford Flex, Honda Pilot and Toyota Highlander, but also its GM platform mates the GMC Acadia, Saturn Outlook and Buick Enclave

Under the skin, the Traverse will be nearly identical to the aforementioned GM vehicles built on the Lambda architecture. This front-wheel drive based platform is exclusively used for these large crossovers, and is, of course all-wheel drive capable. Power will come from various versions of GM's 3.6 liter DOHC V6, which will receive a slight horsepower bump for 2009 to 281 with single exhaust or 285 with optional dual exhaust.

The vehicle will seat seven or eight passengers depending upon seating options chosen, and has unique sheetmetal from its cousins, with the possible exception of the doors. To my eyes, it's the second-most attractive vehicle on this platform, behind the Enclave, but better-looking than the Acadia and Outlook. Pricing has not been announced yet, but it's expected to be the least expensive of these large crossovers from GM, with the strong likelihood of cannibalizing sales from Saturn and GMC, and Saturn in particular.

The ultimate irony of this vehicle is that GM not only chose to build the Saturn Outlook before the Chevrolet Traverse, which - thanks to anticipated better pricing and a far larger dealer network - would have far outsold the Outlook for the past few years, but also that it will actually be built in Spring Hill, Tennessee, in the old Saturn factory. The factory has been idle for nearly a year after Ion production ended and Vue production moved to Mexico, while the plant re-tooled to build large crossovers. If the Chevy built in the Saturn factory ends up striking a fatal blow to the Saturn version of the same vehicle - which is not entirely out of the question - it certainly would be interesting.

The Traverse hits showrooms this fall; the full text of GM's press release is below.

Chevrolet Announces the All-New 2009 Traverse

New Crossover Features Bold Styling, Sophisticated Details and Best-in-Class Fuel Economy from a Direct-Injected 3.6L V-6
CHICAGO – Introduced at the Chicago Auto Show, the 2009 Chevrolet Traverse is an expressively styled, well-equipped crossover that gives customers people-hauling and cargo-carrying capability typically found in larger SUVs.

With styling cues inspired by the acclaimed ’08 Chevy Malibu, the Traverse delivers refined details with strong proportions and the bold front-end appearance found on all new Chevrolets. Traverse will start production in the third quarter of 2008 at GM’s Spring Hill, Tenn. manufacturing facility.

“We think the Traverse is the right vehicle at the right time,” said Ed Peper, Chevrolet general manager. “It has great looks, utility and safety, with a driving experience typically found in smaller vehicles. But it delivers this with three rows of seating – including a third row that fits adults – and class-leading cargo space. The Traverse is following the formula that is bringing Chevy back to a new generation of consumers – great styling, loads of class-leading features and tremendous value.”

The ’09 Traverse is offered in LS, LT and LTZ models, in both front-wheel-drive and all-wheel-drive configurations. Product highlights include:

- Distinctive design that highlights the new face of Chevrolet
- Optimized aerodynamics that enhance fuel economy and reduce wind noise
- Four-wheel independent suspension system
- StabiliTrak electronic stability control system
- Family of 17-, 18- and 20-inch wheels
- Second-row Smart Slide seat feature, for easy access to the third-row seats
- Rear-seat entertainment system with second-row controls
- Six standard air bags, including side curtain air bags that deploy over all three seating rows
- OnStar with Turn by Turn Navigation and Direction Download (with navigation system)
- XM Satellite Radio with XM NavTraffic, a real-time traffic feature (with navigation system)
- Bluetooth hands-free phone connectivity
- Cruising range of more than 500 miles (800 km)
- Exceptional attention to detail and strong build quality

Sleek, sophisticated design

The Traverse casts a unique profile with a sleek, smooth and flowing design that characterizes the new, global face of Chevrolet. Elements such as chrome-ringed grille inserts, available projector-beam headlamps and large wheel-and-tire combinations highlight the vehicle’s finely honed attention to detail.

Taut body lines and minimal overhangs convey the image of a smaller vehicle, reinforcing the Traverse’s feeling of a large vehicle that drives smaller, while tight tolerances between body components – enhanced by the vehicle’s unitized body structure, which enables wraparound, single-piece fascias – emphasize a highly precise build quality.

“The Traverse delivers a design that is unexpected from Chevrolet,” said Michael Burton, director of design for the exterior. “Many of the details are typical on higher-priced vehicles, but the Traverse brings them to a level that is accessible to more customers.”

Some of the upscale design details include:

- Deep-set grille inserts with chrome-ringed trim
- Turn signals integrated in the outside mirrors
- Expressive taillamps
- Rear spoiler integrated over the tailgate window
- Roof rails designed to enhance the sleek appearance when a roof rack is not in place
- 20-inch Ultra-Bright aluminum wheels (standard on LTZ models)
- Dual, bright exhaust outlets
- Panoramic, power-operated sunroof

“The headlamps, for example, are more than merely projector beam units; they are integrated in stylized housings that are rich and detailed, reinforcing the high-tech features found throughout the Traverse,” said Burton.

Like the exterior, the Traverse’s interior is a confluence of refined styling, technology and attention to detail. The instrument panel has a dual-cockpit design that is a hallmark of Chevrolet’s heritage; it flows into the door panels, creating a sleek, highly detailed appearance. The instrument panel is mounted in a “low and away” position that enhances outward visibility.

The instrument panel houses a pair of large gauge binnacles that are accented with bright trim rings; and for so-equipped vehicles, the available navigation system screen is integrated prominently at the upper-center of the instrument panel.

The Traverse’s interior can be configured for seven or eight adults, including two front bucket seats, a 60/40-split second-row bench (three passengers) or two second-row captain’s chairs (two passengers) and a 60/40-split third-row bench seat. Perforated leather seats and second-row captain’s chairs are available. The third-row seat is capable of comfortably seating adults while simultaneously providing best-in-class storage space behind it.

Great amenities

Complementing the Traverse’s exterior and interior designs is a comprehensive roster of standard and available amenities that enhances the driving experience for the driver and passengers alike. They include:

- Rear ultrasonic parking assist
- Rear-view camera
- Outside mirrors with spotter mirrors
- Power liftgate
- Extended-range remote vehicle start
- Heated windshield fluid
- DVD entertainment system
- DVD navigation system (with OnStar Destination Download and XM traffic routing)
- Heated and cooled front seats
- XM Satellite Radio with XM NavTrafic, a real-time traffic feature
- Heated, power-adjustable outside mirrors with blind-spot mirrors
- Power folding outside mirrors with integrated turn signals
- OnStar (with one year of Directions & Connections service) with Turn by Turn - Navigation and, with the navigation system, Direction Download.

GM's Five-Year/100,000 Mile Powertrain Limited Warranty continues to make GM a better choice for customers. GM's coverage focuses on the complete ownership experience and includes other provisions that competitors do not offer, including transferability to the next owner, more complete coverage of parts, and coverage for new and certified used vehicles. In addition, GM offers complementary programs such as courtesy transportation and roadside assistance.

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Mitsubishi to Close Australian Manufacturing Plant

By Chris Haak

02.05.2008

Mitsubishi Motors Corporation announced this morning that it is closing its Australian subsidiary's Adelaide production facility effective March 31. This was Mitsubishi's only assembly plant in Australia, and the company now expects to pursue a "full import" strategy for Australia.

In 2007, production at the plant was down to just 10,942 units, so many were questioning its long-term viability, in spite of vigorous denials on the part of management that the plant would be closing as recently as late 2006. The only vehicle built in the plant was the Mitsubishi 380, which was based heavily on the US Galant, but received several modifications to make the car more appealing to Australian consumers. Unfortunately for Mitsubishi Australia, the 380 was a sales flop almost from the day it hit the showroom floor in late 2005. The car was planned early in the decade, before high gas prices led a consumer shift away from large sedans. The launch of the Toyota Aurion and Holden VE Commodore in the past few years couldn't even stem what turned out into a 37% decline in large car sales in 2005 and 2006. Compounding the problems were currency issues - specifically the strength of the Australian dollar - as well as the lack of exports. Mitsubishi Australia tried to get another product for the plant that could be exported elsewhere, but was unsuccessful.

When the 380 hit the ground with a thud, Mitsubishi Australia tried repackaging the car into different trim levels and significantly cutting prices - in some cases more than 10%. Even moves like that failed to stimulate sales.

The plant's closure will affect close to 1,000 jobs. Affected individuals will receive severance pay and benefits. Some analysts have questioned the viability of Australian vehicle production, but Mitsubishi pointed out that its exit does not necessarily signal the end; in fact, the shuttering of its factory represents only about 2% of Australian local production. Still, this news isn't good for Australia, Mitsubishi, or their employees.

The company is immediately adding an extra year to the warranty coverage of 380s already sold, and emphasized that it would not be withdrawing from the Australian market. In fact, they plan to launch seven new models this year.

For an excellent article about this story from GoAuto in Australia, click here.

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Plastech Attorney Says Tentative Agreement Reached with Chrysler

By Chris Haak

02.05.2008

According to CNNMoney, Gregg Galardi, an attorney for Plastech told a Federal bankrutpcy judge this morinng that his client may have reached an interim production agreement with Chrysler.

On Monday, Judge Phillip Shefferly asked the parties to work out an agreement; if the Plastech attorney is correct, it could mean that production will resume soon at Chrysler's idled plants.

The question of whether Chrysler may remove its tooling from the Plastech factories to install it in other suppliers' facilities is still unresolved. Arguments on that question are scheduled for February 13. Chrysler argues that the tooling is its property and is needed for production of its vehicles, while Plastech says that it needs more time to make the transition.

An interim agreement is a necessity for Chrysler; just as the UAW strike last year would have cost them millions of dollars per day, ceasing production for any reason - including a supply shortage - would have the same effect.

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Toyota Fires the First Volley in Possible Canada Price War

By Chris Haak

02.05.2008

For the past six months, the Canadian dollar has been roughly equal in value to the US dollar. In fact, from time to time, the "Loonie" actually passes the "Greenback" in value, meaning that those Canadian quarters that you'd used to find in your change and mutter under your breath about actually are worth more than 25 cents.

The problem for Canadian consumers, however, has been that automobile prices do not reflect the reality of the current exchange rates. Pretty much every vehicle is far more expensive in Canada than the same vehicle would be in the US. Many Canadian consumers have decided to buy their new vehicles in the US and import them into Canada, as sort of "gray market" imports, but the government sometimes makes registration difficult, and many manufacturers will not honor the new vehicle warranty for Canadian residents who buy a new vehicle in the US. (The exception to the warranty issue is Toyota; if a Canadian resident purchases a new Toyota, Scion, Lexus, or Subaru in the US, the warranty is still honored; however, at least for Subaru customers (and perhaps the other brands as well), the repairs must be paid for in cash, then submitted to the company for reimbursement.

The complaints have gotten louder over the past few months. Porsche was one of the first to lower prices in Canada, although they still were not as low as they were in the US. But over the weekend, Toyota announced that it was lowering retail prices on 16 different models between $750 and $8,100. Even after these adjustments, the prices are still not in line with US prices.

For the past few months, in an attempt to keep new car sales within Canada's borders as consumers got wise to the price disparity, manufacturers have been offering cash back rebates. The net effect on transaction prices may be minimal, as they will probably be closer to MSRP than they have been. Still, the move allows Toyota to trumpet lower prices in advertising and in online price comparison tools (some of which exclude rebates). The question isn't whether someone will follow Toyota's lead, but if they will.

I can appreciate the difficult situation that Toyota and other manufacturers find themselves in. On one hand, they realize that by charging exorbitant prices for their vehicles, they are potentially harming sales and alienating consumers. On the other hand, lowering prices will reduce their profits and lower residual values for cars already sold. The effect of lowered residual values will be dissatisfied consumers whose vehicles have significantly dropped in value, plus the company being on the hook for vehicles worth much less than expected at the end of leases.

Let's see who makes the next move in this possible price war.

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Plastech Bankruptcy Filing Idles Chrysler Plants, Possibly More Soon

By Chris Haak

02.05.2008

Automotive supplier Plastech Engineered Products, Inc. filed for Chapter 11 bankruptcy protection last Friday after Chrysler announced that it had terminated a $200 million contract to produce about 500 different types of trim, such as door panels, consoles, and engine covers for Chrysler, Dodge, and Jeep vehicles. The $200 million represented a large portion of the parts maker's annual sales of about $1.4 billion. Even before the Chrysler action, Plastech was struggling and had been seeking a bailout package from its automaker customers.

After notifying Plastech of the contract termination, Chrysler attempted to remove its tooling from Plastech's facilities so that a competitor could begin production of the parts. It appears that the tooling belongs to Chrysler, and Chrysler claimed that the reason it took those steps was "to safeguard the delivery of parts to our assembly pants and ensure that we achieve the highest level of quality for our Chrysler, Jeep and Dodge customers." The problem for Chrysler is that Plastech did not allow it to have the tooling, causing a legal battle. Meanwhile, Chrysler isn't getting the parts in question from Plastech, nor is it able to get them from another source for the time being. The result is that Chrysler idled four assembly plants and canceled a shift at a fifth plant. The company also said in a court filing today that all 14 assembly plants may have to shut down if Chrysler can't get its tooling back from Plastech. The affected plants and products are:

• Belvidere, Ill. (builds the Dodge Caliber and Jeep Compass and Patriot)
• Newark, Del. (builds the Chrysler Aspen and Dodge Durango)
• Sterling Heights, Mich. (builds the Chrysler Sebring and Dodge Avenger)
• Toledo, Ohio North (builds the Dodge Nitro and Jeep Liberty)
• Toledo, Ohio Supplier Park will cut the second shift today(builds the Jeep Wrangler)

Maybe Chrysler knows what it's doing with this - but the company is under a brand new purchasing chief who has not worked in the automobile industry before. Perhaps they were anticipating a response like this from Plastech, but it's most telling that none of Plastech's other major customers - GM, Ford, and tier 1 supplier Johnson Controls are reporting any parts shortages from the company. It's also telling that Chrysler spokesman Kevin Frazier would not comment on why Plastech stopped shipping parts to the company.

The vehicles above whose production is immediately affected by the bankruptcy, though not the strongest sellers in the world, actually are in relatively short supply in terms of days' supply (calculated by dividing the number of units in inventory by average daily sales). That fact hints that perhaps Chrysler didn't intentionally shoot itself in the foot production-wise and that its actions with Plastech were not intentional. However, if Chrysler's intent was to ensure a steady, reliable supply of parts, its actions last week certainly seemed to work counter to that objective.

FYI, inventory figures as of January 1, 2008 for the immediately affected vehicles were:

• Durango: 83 days
• Aspen: 46 days
• Sebring: 53 days
• Avenger: 44 days
• Patriot: 84 days
• Compass: 71 days
• Nitro: 64 days
• Liberty: 57 days
• Caliber: 55 days

Note that the industry average on this date was a 61-day supply, and a 60-day supply is considered ideal.

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Lexus Considering Sub-RX Mini Crossover

By Chris Haak

02.04.2008

This is something that had been rumored to be in the long-term plans for a while, but Jim Lentz, Toyota Motor Sales U.S.A. president, has actually confirmed that they are considering the vehicle. If built, it would be smaller and less expensive than the Lexus RX350 (pictured at left), which starts around $38,000, and would compete directly with several vehicles in the exploding small luxury crossover segment. Competitors would include the Acura RDX, BMW X3, Mercedes-Benz GLK, Infiniti EX, and the upcoming Cadillac BRX (similar to the Provoq concept), Saab 9-4x, and Volvo X60.

If the small Lexus is approved, it would be built on a version of the Toyota RAV4's AWD platform. This is nearly identical to the approach that Honda took when producing the Acura RDX (pictured at right), which is built on the Honda CR-V's platform and with which is shares many dimensions. Honda gave the RDX a unique engine - the turbocharged four cylinder - but at this point, Lexus' engine intentions are not clear. I'm guessing that this unnamed Lexus would have a version of Toyota's ubiquitous 3.5 liter V6 under the hood, similar to the optional engine in the aforementioned RAV4.

This segment has gotten very competitive over the past two years, and will become even moreso with the additional entrants. Still, Lexus has a loyal following and builds desirable vehicles, so they would probably do fine in this segment.

According to Lentz, the vehicle would be targeted toward people who are "sick of the suburbs, but who don't want to give up the utility of their SUV." Of course, the implication is that large SUVs are difficult to handle in the tight confines of urban life.

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Report Says BMW City Car Approved - Could Be Called Isetta

By Chris Haak

02.04.2008

As Autosavant had reported previously here and here, BMW has been actively considering adding a fourth brand to its portfolio (Mini, BMW, and Rolls Royce are the other three).

Now, AutoExpress has reported that the fourth brand will be a lineup of small city cars to compete directly with Daimler AG's Smart brand, and that it has been given the green light. The reason BMW chose a sub-Mini line as its addition is to reduce the company's overall CO2 footprint and improve its standing with environmentalists. The vehicles would likely be powered by small gasoline and diesel engines, backed by turbochargers. The rendering used here is from AutoExpress.

To me, the most intriguing aspect of this news is the rumor that the leading contender for the brand name is Isetta. For those who don't know, Isetta was the brand of tiny BMW-sold bubble cars in the 1950s. They had a single door in the front of the vehicle and a single bench seat. It was powered by a one cylinder engine; my father's friend owns a red and white 1957 Isetta, and it sounds almost exactly like a small lawn tractor when the engine is running. The rumor is that if BMW goes with the Isetta name, it will also feature neo-retro styling reminiscent of the original Isetta. After all, such a styling concept has worked very well for BMW's Mini brand. It's doubtful that there would be a way to incorporate the signature single front door in this era of rigorous crash tests and product liability lawsuits.

If I were to drive a tiny car (which is unlikely), I'd want one that has the historical lineage and most personality in the class. Also, being a BMW, it would likely be fun to drive - or as fun to drive as anything with 50 horsepower could be. Here's hoping that BMW does, in fact, revive the Isetta brand.

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GMC Denali XT "El Camino" Concept Debuts in Chicago

Another auto show, another broken embargo.

By Chris Haak

02.04.2008

At this week's Chicago Auto Show, GM will introduce the GMC Denali XT pickup concept. The truck is based on GM's "Zeta" global rear wheel drive platform, which underpins the Pontiac G8/Holden Commodore, the upcoming Chevrolet Camaro, and several related Australian-built vehicles. It's a rear wheel drive unibody platform (like the front wheel drive-based Honda Ridgeline), so it would have better ride, handling, and fuel economy than a traditional body on frame pickup truck, at the expense of towing and cargo carrying capability.

Compact and midsize pickup sales have been falling rapidly for the past few years, in spite of higher fuel prices. I believe that part of the reason for this is the huge marketing push that full size pickups receive - plus the fact that you can buy a new full-size Chevy, Ford, or Dodge for well under $20,000 if you need the truck purely for work and don't check many option boxes. Meanwhile, the midsize class's sales struggles have made manufacturers leery of investing into new products for this class. A lack of new or updated product then compounds the problem, and sales fall further. On top of all of this, the smaller trucks don't get much better fuel economy than their big brothers, so they have less capability, less comfort, similar fuel economy, and similar prices (a GMC Canyon 4WD with a five cylinder is rated at 17 mpg combined, while a GMC Sierra 4WD with a 5.3 liter V8 is rated at 16 mpg combined).

Isuzu's announcement last week that it was going to stop selling new light duty vehicles in the US because of a lack of/uncertain future product - and since its only products are rebadged GM vehicles - might lead one to believe that the GMC Canyon and Chevrolet Colorado, on which Isuzu's I-series pickups are based, could be on their way off the market.

The problem with the demise of the midsize pickup market is that there is potential to serve as a springboard for newer, less affluent customers into larger, more expensive vehicles as their income increases. There is also potential for fuel saving if the engineering priorities are in the right place. Fuel saving technology is, of course, more important today than it has been in years with the CAFE fuel economy standard's recent increase and consumer concern about fuel consumption.

The solution to this that GM is proposing is basically abandoning the traditionally styled/engineered small pickup and instead offering something similar in concept to the old Chevrolet El Camino. The El Camino was, of course, a car with a light duty pickup bed on the back instead of rear seats and a trunk. Aside from what is obviously a far more modern interpretation of the car-based pickup design, the other big difference between the Denali XT Concept and the old El Camino is the addition of a back seat. Our friends in Australia have enjoyed car-based "utes" for decades, some of which had back seats, so the idea isn't a new one, but for the US it is.

Even without advanced powertrain technology, the Denali XT would surpass full size pickups in fuel economy (assuming similar engines and transmissions), but GM has installed a new 4.9 liter version of the venerable small block V8. This one is flex-fuel capable (meaning it can run on E85 or gasoline) and is connected to GM's two-mode hybrid system. The engine also features direct injection, which provides for lower emissions, more power, and better fuel economy. The engine is rated at 326 horsepower, and boasts a 50% fuel economy improvement over a traditional arrangement. The Denali XT has a 3,500 pound towing capacity and 1,100 pound payload capacity. The bed is 55 inches long (about four and a half feet) but can be extended partially into the passenger compartment with an Avalanche-like Midgate.

I think the concept is kind of interesting, although the styling doesn't exactly press my buttons. Maybe it will grow on me. I will say, however, that its proportions are more attractive to my eyes than a Holden Crewman (pictured), and it looks more truck-like. Will GMC still be able to argue that its "Professional Grade" tagline holds true in the face of two vehicles of questionable professional utility - the Acadia crossover and the Denali XT?

For more information on the Denali XT, please see GM's press release below.

GMC DENALI XT HYBRID CONCEPT TRUCK DELIVERS 50-PERCENT FUEL ECONOMY IMPROVEMENT

• New, robust design form serves as a test well for GMC's future design direction
• First combination of GM's two-mode hybrid system with E85 ethanol-capable engine
• Height-adjustable suspension and cargo space-enhancing Midgate®

CHICAGO – GMC unveiled the Denali XT concept at the 2008 Chicago Auto Show. It offers a 50-percent increase in combined fuel economy over comparable small pickup trucks when running on gasoline, and it incorporates a new, muscular form in a performance-styled, hybrid sport-utility truck (SUT).

The Denali XT has a unibody architecture and rear-wheel drive, enabling its distinctive design and efficient performance. It builds on the equity of the Denali line and its reputation for advanced engineering and refinement, including the first combination of GM's two-mode hybrid system with an E85 ethanol-capable engine. Denali XT's new, more efficient 4.9L version of GM's small-block V-8 features fuel-saving technologies such as direct-injection technology and Active Fuel Management.

The engine is matched with GM's unique two-mode hybrid propulsion system, giving the powerful SUT exceptional fuel economy and uncompromising capability – including all-electric drive at low speeds. It is a powertrain combination that makes the Denali XT perfectly suited to a variety of active lifestyle activities, such as hauling skis and snowboards to the mountain or towing a sport jet boat to the lake.

"Like all GMCs, the Denali XT is functional and capable, but it blends those traits with a more efficient, sporty driving experience," said Jim Bunnell, GMC general manager. "It is a vehicle that exemplifies GMC's engineering excellence, as well as GM's commitment to hybrid and advanced technologies."

With its unibody structure, the Denali XT is lighter than conventional body-on-frame trucks, with great ride-and-handling characteristics. This design enhances fuel economy while giving the vehicle a sporty driving experience. True to its GMC Professional Grade heritage, the Denali XT is filled with technologies and features that maximize its flexibility, including a cargo space-enhancing Midgate® and height-adjustable suspension.

The Denali XT's proportions are framed around a high cowl and 123.4-inch (3,134 mm) wheelbase. This enhances the vehicle's truck functionality, but packages it in an efficient, unibody architecture.

Design and construction were spearheaded by Holden Design, within the Australian arm of GM's global design and engineering network.

"Denali XT is about working hard, playing hard and enjoying an active lifestyle," said Bunnell. "It is the same philosophy that has helped make the GMC Acadia crossover a huge hit with consumers."

Dramatic design statement
A muscular form and wide, firmly planted stance give the Denali XT a confidently capable road presence. Minimal overhangs, large wheels, sleek headlamps and a low roof profile deliver an aggressive, performance-oriented appearance.

"It is a robust yet tailored design statement that is unlike anything else on the road," said Ed Welburn, vice president, Global Design. "It has the youthful look of a custom automobile that incorporates the capability customers expect from a truck."

The Denali XT's design includes a new take on GMC's iconic grille, with a prominent, four-bar element in addition to the large, red GMC logo and signature Denali background. Flared fenders accentuate the wide road stance. The stance is also enhanced when the Denali XT is lowered on its air-adjustable suspension, which creates a sleeker appearance that simultaneously improves aerodynamics. Large, bold 23-inch wheels and custom Kuhmo tires complement the Denali XT's stance.

Inside, the Denali XT blends mechanical functionality with leather-trimmed comfort.
Billet-metal surrounds, controls and instruments convey the cold precision of an aircraft cockpit. This is balanced by the warmth of bespoke saddle-leather trimmed seats and other contact surfaces.

"The form language is smooth and structured to characterize GMC's power. The details have a deliberately contrasting mechanical aesthetic to mark GMC's engineering sophistication," said Warrack Leach, lead designer.

The interior features innovative instrumentation with "floating" red-illuminated numerals backed by surface chaplets in the clusters and a large integrated vehicle interface screen. The interior illumination was supplied by Osram.

The Denali XT seats four. The high-cowl vehicle architecture enables higher seating positions, allowing the couple distance between front and rear occupants to be reduced without compromising knee room. This packaging efficiency creates generous interior and cargo bed dimensions within a more compact package.

Truck capability
With stiffness that is greater than most conventional, body-on-frame trucks, the Denali XT's unibody structure supports a very capable truck platform. It also serves as the mounting point for a four-wheel independent suspension that gives the vehicle its performance feel on the road. The multilink front suspension features a forward-mounted steering rack and dual lower links with ball joints at the outer ends, providing sharp responses to driver input. At the rear, a four-link suspension design uses coil-over shocks and a decoupled stabilizer bar to enhance cornering control, reduce body roll and optimize longitudinal compliance. In short, it's a truck that hauls more than cargo on twisting roads.

The rear cargo area is wide, deep and flat, with no suspension or wheelhouse protrusions; the cargo floor measures 55 inches long (1,397 mm) by 47.5 inches wide (1,206 mm). It all adds up to the space to haul a wide variety of lifestyle accessories.

The easy-to-operate Midgate can be lowered to extend the cargo-carrying capacity inside the vehicle. The rear seats fold flat to provide a longer floor for carrying items such as skis, surfboards or wood from the home improvement store. A fixed rear window allowed engineers to retain the vehicle's structure, reducing mass and complexity.

The Denali XT has an estimated payload capacity of 1,100 pounds (499 kg) and a towing capacity of an estimated 3,500 pounds (1,587 kg). This capability is delivered through unique vehicle and powertrain integration, where the multiple modes of GM's two-mode hybrid system provide towing capability.

New 4.9L SIDI V-8 and two-mode hybrid system
For the first time, GM's rear-wheel-drive two-mode hybrid transmission is paired with a smaller-displacement version of the small-block engine. The new V-8 4.9L E85-capable engine powers the Denali XT with an estimated 326 horsepower (243 kW). It uses direct-injection technology to produce the power of a larger engine, but consumes less fuel and produces lower emissions.

Also, the functionality of GM's Active Fuel Management system has been expanded through the use of hybrid technologies, enhancing the cylinder-deactivating feature to further improve fuel efficiency.

The Denali XT's two-mode hybrid system is partnered with the 4.9L engine and uses an electrically variable transmission to enhance fuel efficiency in city and highway driving. In city driving, all-electric propulsion is used at low speeds; on the highway, fixed-gear operation enables efficient performance even when towing a trailer.

The specific characteristics of the Denali XT allowed the synergistic evolution of GM's small-block V-8 and two-mode hybrid beyond the recently introduced in GM two-mode hybrid products, such as the GMC Yukon Hybrid and Sierra Hybrid. During this optimization process, additional powertrain technologies have been integrated, including Active Thermal Management, which transfers thermal energy from one driveline component to another to improve efficiency; and a high-efficiency axle configuration, which fundamentally reduces the losses normally associated with conventional axle configurations.

The integration of the advanced internal combustion engine technologies and two-mode hybrid system on the Denali XT reinforces GMC's Professional Grade position as a brand that continues to exceed customer expectations.

GMC DENALI XT CONCEPT SPECIFICATIONS

Body style / driveline: four-door, four-seat; rear-wheel drive sport-utility truck
Construction: body-frame integral
Engine type: 4.9L SIDI V-8 with Active Fuel Management
Horsepower (hp / kW): 326 / 243 (est)
Fuel type: unleaded regular or E85 ethanol
Transmission: two-mode hybrid
Suspension: front: independent SLA; rear: independent SLA
Brakes four-wheel disc
Wheel size & type: 23-inch aluminum; split 5-spoke
Tires: front: Kuhmo 255/35/R23
rear: Kuhmo 285/35/R23
Wheelbase (in / mm): 125.4 / 3134
Overall length: 205 / 5207
Overall width (in / mm): 76.3 / 1938
Overall height (in / mm): 62.5 / 1587
Track (in / mm): 65 / 1651
Cargo floor length (in / mm): 55 / 1397
Cargo floor width (in / mm): 47.5 / 1206
Payload (lb / kg): 1100 / 499 (est)
Towing capacity (lb / kg): 3500 / 1587 (est)

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Free Advice to Isuzu - What You Could Have Done Instead

By Chris Haak

02.01.2008

With Wednesday's announcement that Isuzu would stop selling light vehicles in the US on January 31, 2009, many people were not surprised to hear the news. After all, their product lineup has limped along for the past half decade consisting solely of rebadged GM vehicles. The entire value proposition that Isuzu offered to consumers was a longer warranty than the equivalent GMC or Chevrolet SUV or midsize pickup offered. However, the cost of buying an Isuzu was a small dealer network (making it difficult to find service or support if needed while traveling) and puzzled glances from strangers when you told them you drove an Isuzu I370 or Ascender...and even more puzzled glances when you tried to trade it in on a new vehicle. ("Too bad it's an Isuzu and not a GMC.")

Even before Isuzu announced that it was abandoning the US market, Autosavant's Blake Muntzinger speculated on some possible alternatives for Isuzu two weeks ago. You can read his excellent piece here; basically, he said that Toyota's ownership stake in Isuzu could have allowed them to sell rebadged versions of Toyota vehicles sold elsewhere in the world in the US as Isuzus. To expand on Blake's concept, a few of us had a conversation yesterday afternoon about how Isuzu just seemed to "give up" without trying very hard to find new product. As a service to Isuzu, we'll recap a few of the main points of that discussion below.

Find Different SUVs and Pickups to Rebadge
Isuzu's stated rationale for leaving the US was that they had no product to sell with the impending demise of the GMT360 Ascender midsize SUV. Although this has not been stated, the Chevrolet Colorado/GMC Canyon-based Isuzu I-series pickups (which Isuzu codeveloped, by the way) may also be on their way out the door. Well, is GM the only company to sell body on frame SUVs and midsize pickups? For example, why couldn't Isuzu have worked out the same deal for a rebadged Frontier pickup with Nissan that Suzuki did? At this point, it's too late because Suzuki took that prize, but a Nissan Frontier badged as an Isuzu would have probably been an easier sell to consumers than Suzuki's first pickup truck. Also, since Nissan Pathfinder sales were down last year, Isuzu could have sold its own version of the Pathfinder to replace the Ascender - and it could have had consistent styling with the pickup. Suzuki's upcoming Equator pickup looks like a Nissan Titan with a Toyota Tundra's grille, but nothing like other Suzuki products, such as the XL7 and Grand Vitara.

Serve as the Entry Point for Mahindra & Mahindra Trucks into the US Market
Indian manufacturer Mahindra & Mahindra has ambitions of setting up a US dealer network and offering its utilitarian pickups and SUVs (the SUV pictured is the Mahindra Scorpio) for sale here. If they're durable and priced right, they could find some buyers, but M&M will have some substantial obstacles to entry: emissions and crash testing, establishing a dealer network, and most importantly, getting their brand into consumers' minds and onto their shopping lists. Since Mahindra & Mahindra plan to sell only trucks, and since Isuzu sells only trucks, wouldn't it have been far easier for these companies to work out an arrangement whereby Mahindra & Mahindra enter the US market selling vehicles badged as Isuzus, then after a few years, buy the Isuzu dealer network outright and change the name on the signs? This was similar to the way Kia entered the US market; their product was here (as the Ford Festiva) before their name was.

Sell Small Cars - Chinese or Others - In the US
Isuzu may not have the brand recognition that it did years ago (particularly during the excellent "Joe Isuzu" era), but I guarantee more consumers are aware of Isuzu than they are of Chinese brands such as Chery or Geely who aspire to sell vehicles in the US. Why not change the company's focus from SUVs and pickups - whose popularity is declining thanks to high gas prices - to small, fuel efficient vehicles? One set of alternatives would be the plan proposed by Mr. Muntzinger, as linked previously. Another would be to serve as a conduit by which Chinese manufacturers sell their wares in the US, branded initially as Isuzus, until they have proven themselves.

There are countless other options for Isuzu - scores of companies would kill for a pre-established dealer network and brand name in the US - but it really does seem as if Isuzu didn't try as hard as they could have to stay in the US market in one form or another. Nearly any option could have increased their sales beyond the pitiful 7,000 mark they set for 2007. Even if they sold 10,000 rebadged Nissans, that would be a 42% sales increase and something to build upon.

But alas, the Isuzu dealers will either exit the business with settlement checks (equal to $1,000 for each vehicle sold over the past four years) or will soldier on as used car facilities and service centers only.

Please comment below if you have other free advice for what Isuzu might have done to stay in the US.

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