Auto Show
The "B-Word" Hits Car Sales: GM down 41%, Toyota down 33.9%, Ford down 30%
DETROIT - General Motors, Ford Motor and Chrysler LLC all reported a relatively strong November for the first couple of weeks of the month. Then the "B-Word" -- bankruptcy -- reared its ugly head. Talks broke down between GM and Chrysler regarding a merger or buyout and finally, Detroit Three execs were embarrassed by their Capitol Hill performance as they asked for $25 billion in bridge loans.
GM's North American sales chief, Mark LaNeve, said Pontiac will become a smaller, specialty brand but will continue to sell value-priced performance cars. Read news and analysis of GM's plan for Congress here later Tuesday: GM is looking for a $4 billion bridge loan to see it through 2008, with the request for another $8 billion in a line of credit for next year.
The industry was off 36 percent for the month. The notorious Seasonally Adjusted Annual Rate (SAAR) was 10.6 million units per year, down from a SAAR of 16.4 million units per year based on November 2007 sales. All numbers in this story compare November 2008 sales to November 2007 sales, unless I say otherwise.
Sales of pickup trucks, especially the new Ford F-150 and Dodge Ram, are rebounding, in that their sales didn't drop as much as other models. Chrysler attributes some of that to a strong farming industry, but the cheap price of gas has a lot to do with it, of course. Clearly, though, the utter lack of consumer confidence has hit the auto biz hard. Dealers have been hit on two sides: no customers in showrooms and lack of financing for their floorplans.
Here's how November shook out ...
GM: 154,877 deliveries, off 41 percent.
- Retail was off 45 percent, to 106,737 and fleet was off 29 percent, to 48,140.
- Four-cylinder take-rate for midsize cars remains high, at 63 percent (70 percent for Chevy Malibu).
- Malibu was the single GM model that outsold November 2007, up 31.3 percent, to 9,469
- Cadillac CTS, off 48.0 percent, to 2,902. Buick Enclave, off 40.3 percent, to 2,288. Hummer H3 was off 65.8 percent, to 1,048.
Toyota: 130,307 deliveries, off 33.9 percent.
- Toyota division cars dropped 31.1 percent, trucks dropped 37.4 percent.
- Lexus car sales fell 40 percent, truck sales fell 26.9 percent.
- The only gainers were brand-new models; the Toyota Sequoia, up 51.9 percent, to 1,873 units, and the Lexus LX, up from 71 units to 424.
- Prius was off 48.3 percent (to 8,660) and Camry was off 28.8 percent (to 25,224).
- Scion xB dropped 43.8 percent, to 2,161.
- Tundra was off 55.9 percent, to 6,607.
Ford: 118,818 deliveries, off 30 percent.
- Marketing veep Jim Farley sees the automotive market will continue to scrape bottom through the first quarter of 2009.
- Lincoln continued to outsell Mercury, 8,019 to 7,744.
- Ford Taurus was off 22.0 percent (3,040), Fusion off 27.4 percent (8,914).
- Focus freefell 38 percent, to 8,194.
- Mustang fell 50.1 percent, to 3,667.
- Ford sold 2,203 Flexes. Chevy Traverse beat it with 2,936.
- F-Series was 37,911, about 2,000 of them new models. Down 18.6 percent.
- Mercury Sable was up 4.2 percent, to 1,230.
- Volvo sales was abysmal, off 46.5 percent, to 4,404. The S80 was the only gainer, up 10.5 percent to 844 cars.
Chrysler: 85,260 deliveries, down 47 percent.
- The discontinued Chrysler Aspen was up 33 percent, to 2,013. Credit hybrid sales.
- Dodge sold 2,815 Journeys and 3,364 Challengers.
- Chrysler 300 was down 70 percent, to 3,423.
Nissan North America: 80,683 deliveries, off 42.2 percent.
- Infiniti was off 28.0 percent.
American Honda: 76,233 deliveries, off 31.6 percent.
- That's coming off a record November, in 2007.
- Honda Division was down 30.6 percent, to 68,345.
- Acura was off 38.9 percent, to 7,888.
- The new Pilot was the only gainer, up 4.5 percent, to 5,601.
- Accord was off 38.1 percent, Civic off 29.6 percent.
Others: BMW Group sold 19,762 vehicles, off 26.8 percent. Mercedes-Benz USA sold 14,102, and said it was off 8.6 percent for the year to date. Hyundai sold 19,221, off 40 percent.
Wednesday, December 03, 2008 | 0 Comments
Magic Wagon Turns 25
The modern minivan is celebrating its silver anniversary this year. Yes, it was on November 2, 1983 that Lido A. Iacocca drove the first minivan off the assembly line in Windsor, Ontario. This radical concept--a front-drive garageable van with highchair-like seats and a low, flat floor--which he and Hal Sperlich had failed to sell Ford on some years before, was a serious gamble. Doubters pegged likely annual volume at 74,000 units. The reality has been more like a half million per year, with over 12 million sold in over 80 countries worldwide.
Chrysler still owns 40% of the market here at home, and together the Chrysler minivan brands have outsold each of its ever-more-impressive competitors. This trend could continue, especially if you tally sales of the VW Routan that now rolls down the same assembly line. And amid the doom-and-gloom sales reporting, Chrysler's minivan sales are a bright spot, jumping a reported 6% year over year, which translates to an increase of 12 market-share points in this down market. The Windsor plant is currently running three shifts at capacity, cranking out 1426 vehicles per day.
I don't usually jump at these plant-tour birthday parties, but I had a special interest in this one, as I played a tiny role in the history of the Chrysler minivans. My first permanent assignment as a freshly minted Chrysler Institute of Engineering graduate was in the Advance Vehicle Packaging department. It was our job to determine exactly where everything went on the inside of a vehicle -- not what it looked like, but the ergonomic interface, the position of the controls, visibility, etc.
My last major project there before running off to join the automotive-journalism circus was the 1996-model NS-body minivan. This was the Cab-Forward redesign (which I still think was the best looking of all the ChryCo minivan generations). There was considerable concern about how customers would react to that large windshield and long dash, so I was tasked with shepherding a project to build a running prototype out of an old van mocking up the proposed windshield/dash/seating position. Folks drove it, liked it, and the rest is history.
The birthday festivities included unveiling special 25th Anniversary trim packages, which basically add a new Dark Slate Gray leather option, new woodtone trim, French stitching, special wheels, and other touches. It's bundled with the dual-DVD screen package, so it won't come cheap (pricing hasn't been announced for the U.S. yet; Canada's 25th Anniversary packages are different, adding CAN$1400 of content with no bump in the sticker price).
And to tease us all, out in front of the plant was a plug-in hybrid-electric Town & Country. Chrysler has stated a goal of producing at least one of its recently introduced electric and range-extending electric vehicles by 2010 (no word yet on whether this Chrysler will edge out the Lotus-based RWD Dodge EV sportscar or the AWD Jeep Wrangler-based range-extended plug-in hybrid). The front-drive Chrysler uses a 190 kW (255-hp) electric motor powered by a 22-kW-hour lithium-ion battery pack that can be recharged using 110/120 or 220/240-volt power. Performance claims include 0-60 mph in 8.7 sec, quarter mile in 16.2 sec, a top speed of over 100 mph, and a range of up to 40 miles of electric-only driving; 400 burning about eight gallons in the small onboard gasoline engine. To track progress of these EVs, visit www.Chryslergoeselectric.com
Now, for you trivia buffs, here's a list of 66 minivan firsts that Chrysler lays claim to:
1. First minivan introduced to the market (first front-drive small van) (1984)
2. First minivan to offer selection of engines, V-6 or four cylinder (1987)
3. First to offer long-wheelbase minivans, Dodge Grand Caravan and Plymouth Grand Voyager (1987)
4. First to offer luxury minivan with introduction of Chrysler Town & Country (1990)
5. First minivan to offer standard driverside airbag (1991)
6. First minivan with center high-mounted stop lamp (1991)
7. First minivan with child-safety locks on sliding door (1991)
8. First minivan to offer four-wheel anti-lock brakes (1991)
9. First minivan to offer Quad Command seating package (1991)
10. First minivan to offer all-wheel drive on front-drive platform (1991)
11. First minivan to offer integrated child seat (1992)
12. First to introduce an all-electric powered minivan, Dodge TEVan (1993)
13. First minivan to offer standard passenger-side airbag (1994)
14. First minivan with dynamic side-impact protection (1994)
15. First minivan to meet California 1997 Ultra Low Emission Vehicle (ULEV) certification (1994)
16. First minivan to meet Inherently Low Emission Vehicle (ILEV) certification (1995)
17. First minivan with seamless passenger-side airbag door (1996)
18. First minivan to offer dual-zone temperature control (1996)
19. First minivan in U.S. market to offer driver-side sliding door (fourth door) (1996)
20. First minivan to offer windshield wiper de-icer (1996)
21. First minivan to offer 16-in. wheels and tires for enhanced performance (1996)
22. First minivan to offer power memory seat and mirrors (1996)
23. First minivan to offer Easy-Out Roller Seats(r) (1996)
24. First minivan to offer adjustable cupholders (1996)
25. First minivan with cab-forward design (1996)
26. First minivan to offer adjustable reclining rear child seat with molded seat cushion (1996)
27. First minivan with removable windshield wiper module (1996)
28. First minivan with mid-cabin upper-level comfort control (1996)
29. First minivan with dual-action rear drum brakes (1996)
30. First minivan capable of transporting 4x8-ft (1.2x2.4 meter) material on top of folded seatbacks or with seat removed and liftgate closed (long wheelbase) (1996)
31. First minivan with rear seatback-mounted grocery-bag hooks (1998)
32. First minivan to offer Flexible Fuel Vehicle (FFV) availability, ethanol/gasoline (1998)
33. First minivan to offer 17-in. wheels and tires for enhanced performance (1999)
34. First minivan to offer Auto Stick transaxle (1999)
35. First minivan to offer wireless headphones for in-vehicle entertainment system (2000)
36. First minivan to offer 6.4-in. (16.2-centimeter) LCD screen for in-vehicle entertainment system (2000)
37. First minivan to offer power-up/power-down liftgate (2001)
38. First minivan to offer removable, powered center console (2001)
39. First minivan with power dual sliding doors, allowing for minivan-first manual override, powered by an industry-first inside-the-door motor (2001)
40. First minivan to offer power sliding door obstacle detection system when opening and closing (2001)
41. First minivan to offer engines with power over 210 horses (2001)
42. First minivan to offer pop-up rear-cargo organizer (2001)
43. First minivan with three-zone temperature control system (2001)
44. First minivan with rear split 50/50 Easy-Out Roller Seats (2001)
45. First minivan with Stow 'n Go(r) seating and storage system (2005)
46. First minivan with Super High Density (SHD) foam cushion seating (2005)
47. First minivan with split-bench third-row reclining tailgate seating (2005)
48. First minivan with third-row easy-entry system - with the pull of a single strap, the second-row seat tumbles out of the way (2005)
49. First minivan with a driver-side inflatable knee blocker (2005)
50. First minivan with Door Alert (2005)
51. First minivan with overhead rail system with movable/removable storage bins (2005)
52. First minivan to offer Swivel 'n Go seat system (second-row seats swivel 180 deg rearward and includes a removable table that installs between the second and third rows) (2008)
53. First minivan to offer a removable, two-part sliding front console with power outlet (2008)
54. First minivan to offer an umbrella holder (2008)
55. First minivan to offer a dual DVD system that can play different media at the same time (2008)
56. First minivan in North America to offer a six-speed transaxle (2008)
57. First minivan to offer dual A/V jacks, 115-volt inverter and 12-volt power outlet in C-pillar (2008)
58. First minivan to offer ambient halo light package with movable LED pinpoint lighting (2008)
59. First minivan to offer an integrated child booster seat (2008)
60. First minivan to offer a removable, rechargeable LED flashlight (2008)
61. First minivan to offer first- and second-row heated seats in cloth or leather (2008)
62. First minivan to offer YES Essentials stain-resistant, odor-resistant, anti-static cloth seats (now called Stain Repel seat fabric) (2008)
63. First minivan to offer Blind Spot Monitoring System (2009)
64. First minivan to offer Rear Cross Path System (2009)
65. First minivan to offer SmartBeam(r) headlamps (2009)
66. First minivan to offer swiveling third-row monitor (2009)
Tuesday, November 04, 2008 | 0 Comments
Our Model T: The next Ford Focus should be all the car most people need
Detroit's three behave the way they always have. It doesn't matter that General Motors is a completely different company than it was 20, let alone 100, years ago. It still needs to feed and keep more divisions than anyone else. Chrysler bounces from feast to famine as easily as it bounces among different owners. Ford Motor Company has this habit of hatching successes, then letting them go to seed.
It held on to the Model T way past its due date, then stopped production to retool for the Model A. It was struggling to stay in business after World War II when it launched the '49 Ford lineup, a car that single-handedly saved the company. Its 1986 Taurus was an avant-garde success, but by 1990 it was a rental queen and remained so for the next 18 years. Think of the first U.S. Escort, the first U.S. Focus, the Lincoln LS.
The Fiesta, which reaches the U.S. market at least a year-and-a-half after its European launch, is Ford's promise to put that habit to rest. The plan is to revitalize the company with mostly European designs, mostly cars (and car-based crossovers). And with slick, well-appointed and fuel-efficient small cars, Ford is attempting to reinvent the Model T.
Our modern T is not the Tata Nano, nor the production versions of the Volkswagen Up! concept, but the next Ford Focus. Like the new Fiesta (and the 1908-'27 T), Ford will build it worldwide with very little variation. Its platform will carry the "top hat" of various other models. The Model T was available as a touring car; a closed sedan, a roadster, a pickup truck, a van and just about any other light-duty body style available back then. The Focus is already the basis for the C-Max MPV, Kuga crossover and a Pininfarina-built folding hardtop convertible. Here's what Ford plans to do to make this work:
At least three variants for the U.S.: This includes Kuga, replacing the Escape and possibly taking its name, a Mercury-badged dedicated coupe, and even a Lincoln. Marketing and communications veep Jim Farley says the Lincoln will not be a Kuga-based crossover, but a small car designed to grab some "white space" in the industry. While a well-appointed Lincoln C-segment sedan with the '41 Continental nose could work well, I can't help thinking of the Cadillac Cimarron. I trust Ford designers and engineers are working to avoid paying homage to that early '80s car.
Kinetic design for midsize and small Ford division cars: Fiesta, Focus, Fusion (see Mondeo) and their variants, including crossovers, will wear Martin Smith's popular and critically acclaimed Kinetic Design language. Like the Fiesta, the Focus will be sold in the U.S. as both a four-door sedan and a four-door hatchback. The 2010 Taurus will be the Kinetic Design "bridge car" to traditional American design. Peter Horbury's staff remains in charge of cars and trucks that don't see the light of day outside of North America: Mustang, new unibody Explorer, Flex, F-Series, and Mercurys and Lincolns including those based on the global B-, C-, C/D- and D-segment platforms.
Focus and Fiesta will transcend their size categories: Ford says consumers in a clinic guessed the new North American 2011 Focus four-door sedan's price at $25,300, and the four-door hatchback's at $23,000. Consumers pegged the Fiesta's perceived price at $22,100. Both were guessed to be higher than Toyota and Honda competition. Warning: GM until recently was known for paying too much attention to clinics.
The V-8, as we know it, is dead: Late last year at a presentation of Ford's coming EcoBoost gas direct-injection, turbocharged engine technology, I asked chief product guy Derrick Kuzak whether the V-8 was dead. "I don't know," he replied, then went on to essentially say it was. Last week in Europe for the global Fiesta launch, I raised the issue with marketing chief Jim Farley. He agreed that while the V-8 engine still has a place in big trucks and high-performance Mustangs, for the mainstream market, it is, in effect, dead. Here's one Ford constant that's going away by necessity. Since the days of Clyde Barrow, the V-8 Ford has been the icon of luxury car performance at a middle-class price.
Successful Ford models won't be neglected: Ford says mainstream models like the Focus and Fiesta will go no more than 3 1/2 years between substantial redesigns. By this, I assume Ford means what are called "major-minor" facelifts on cars like the Focus and Fiesta, and would be similar to Toyota and Honda product cycles, which now go about five years between complete redesigns.
Like the Model T, the next Focus should be all the car most people need. Unlike the Model T's lifespan, we won't see it march into the 2030 model year virtually unchanged. If Ford makes it to calendar 2010 and then sticks to this plan, it has a better chance for sustained success than in its first 105 years.
Friday, October 31, 2008 | 0 Comments
A night with Dan Gurney and his signature Saleen Mustang
A legend needs no special introduction, but that doesn’t stop Dan Gurney from making one.
Gurney rumbles into a parking lot littered with modified Mustangs in a special version of his own. While its short rear spoiler, unique “stinger” hood, white graphics, and charcoal gray wheels hint at the Trans-Am Mustangs of the late 60s and early 70s, it’s the No. 2 decals on each door that seal the deal.
Created in partnership with Saleen, the Gurney Signature Edition Mustang, much like the Parnelli Jones/Saleen machine released last year, is another in a long line of special-edition ponycars -- some may say too long. But with Gurney’s racing heritage literally dripping off the bodywork, Saleen hopes its latest tribute to a Mustang racing icon sticks out of the herd.
To celebrate the official launch of the Gurney Mustang -- first unveiled at the New York auto show earlier this year -- Saleen recently held a launch party at Galpin Ford in Van Nuys, California.
Dozens of fans arrived in a variety of Detroit muscle to show their support for the new-generation All American Racer. From late-’60s Mustangs to a Ford GT and even one AAR 'Cuda, there was a plethora of eye candy on hand to compete with the six Gurney models on the lot, as well as the S5S Raptor concept car set behind velvet rope in the showroom.
Galpin Auto Sports, known for its antics on MTV’s “Pimp My Ride,” strutted its stuff. Tommy Kendall, host of Speed’s “Test Drive” and former Trans-Am racer, also made an appearance.
Gurney greeted a few old friends and shared stories of his racing days, including tales of the old Watkins Glen track, where racers literally jumped their cars over railroad tracks at ridiculous speeds. He also spoke of his desire with his signature Mustang, saying “it would be nice if it were a little better than Parnelli’s.”
He’s referring to rival Parnelli Jones’ Mustang that also was produced by Saleen in 2007. That car, which MT tested last year, came with a rated 400 horsepower under the hood and rang in at $61,565. Senior editor Ron Kiino came away impressed, saying it was “as sublime as Mustangs come, providing ample power be it for cruising or tailout shenanigans along with a well-compromised ride that coddles without being too pillowy.”
Gurney’s goal? Be faster and cheaper than the Parnelli car. Oh, and pay homage to Trans-Am. So far, it looks like he and Saleen have done it.
The legendary racer has a well-worn reputation for tinkering with cars until they’re “perfect,” and his experience developing his signature ‘Stang is no exception. According to Marques McCammon, general manager of Saleen, Gurney constantly gave lists of items to improve even after the car went into production.
Derk Hartland, chassis and body engineering manager at Saleen, adds, “Dan is really picky. If it was his choice, we’d still be working on it.” During development, Saleen set up an autocross course for Gurney to test the car on. Hartland remembers the experience, “We couldn’t get him out of the car.” After exiting, Gurney enthused, “This is just fantastic!”
Development took about a year and 10 different packaging variations, according to Saleen staff. Gurney paid particular attention to the suspension, initially disliking the harshness of the original ride. His special-edition utilizes adjusted anti-roll bars, springs, and struts, as well as a Watts-link.
The car rests on Saleen’s modern interpretation of the original Torq Thrust wheels, 19x9.0-in. front and 19x10-in. rear. They’re wrapped in Pirelli Corsas, which can be found on the Ferrari F430 and Lamborghini Gallardo. Gurney praised the grip and forgiving nature of the tires.
On the exterior, the Mustang gets the full decal and bodywork treatment, and only three colors are available -- red, white, and blue -- to signify the All-American Racer in Gurney.
Notably absent is the trademark Gurney flap. While those with Saleen wouldn’t comment, Gurney freely adds, “I wanted too much.”
Also lacking was a version of the 302-cu-in. V-8 that powered his Trans-Am racers. As explained by Saleen staff, a naturally aspirated 302 would’ve been slower than the Parnelli and a supercharged version would’ve been more expensive. So instead, the Gurney Edition gets a supercharged 281-cu-in. V-8. Power shouldn’t be an issue, as Saleen says the engine is rated at 465 hp and 425 lb-ft of torque, resulting in a claimed 0-to-60 time of 4.2 sec. Although the Saleen team was tight-lipped about future products, don’t be surprised to see a 302 variant sometime in the future.
The Gurney Edition starts at $59,999, and with an EPA rating of 14 mpg city/20 mpg highway, a few might think twice before taking the plunge. But with a run of only 300 units, expect the die-hard fans to snatch them up. The Saleen team says more than 70 are already spoken for. And according to Thomas Ryan, vice president of sales, Saleen customers don’t ask about fuel economy anyway.
We can’t wait to get our hands on Gurney’s version. And at 65 hp and 35 lb-ft more than the Parnelli car, a classic rivalry might be brewing in a modern form. Keep an eye out; a comparison test of Saleens and race-car legends could be in the future.
Friday, October 31, 2008 | 0 Comments
Toyota, Chrysler have North America's most efficient plants
DETROIT - The difference in efficiency between the seven biggest automakers in North America is minor, much like the quality differences among 36 auto brands, as I reported in my last post. And they're all improving, says Ron Harbour, whose Harbour Report lists Toyota and -- surprise -- Chrysler as operators of the continent's most efficient factories. Paradoxically, North America's most efficient single plant is the Toledo, Ohio, facility where Chrysler makes Jeeps, the 36th out of 36 brands in terms of initial quality, according to Wednesday's J.D. Power and Associates report. Typically, an efficient plant puts out a high-quality product, Harbour says.
He's right. But the Toledo Jeep assembly plant is an experiment in outsourcing, with various suppliers owning and controlling various parts of the factory. Let's hope it has room for improvement. One factor affecting Jeep's poor quality ranking is that Wranglers were flying out the dealership doors last year, especially the new Wrangler Unlimited. No doubt many buyers were new to the brand, and expected the same level of refinement they got in their Accords or 3 Series, or even Explorers. That might explain some of Jeep's lack of ownership satisfaction, but it can't explain the whole thing: Jeep averaged 167 problems per 100 vehicles, much worse than the industry average of 118 and more than twice Porsche's 87. (That accounts for the entire Jeep lineup, by the way, not just Wrangler/Unlimited.)
The Jeep Toledo South plant needs just 13.57 employee-hours to assemble a vehicle, a significant margin over the second-place Oshawa, Ontario, Chevy Impala/Monte Carlo plant (15.18 hours) and third-place Oshawa Pontiac Grand Prix/Buick LaCrosse plant (16.17 hours). Belvidere, Illinois, was fourth, needing 17.09 hours to assemble Dodge Caliber/Jeep Compass/Patriot, and GM's CAMI plant in Ontario was fifth. It needs 17.59 hours to assemble a Chevy Equinox, Pontiac Torrent, or Suzuki XL-7. Note that Nissan, which for several years had the most efficient plants in North America, and Honda, declined to participate in this year's study, though Harbour extrapolated estimates from available information. Hyundai was added to the list for the first time.
When Harbour adds up all the man-hours it takes to build a car or truck, including stamping, assembly, engine and transmission manufacture, Hyundai was seventh of seven majors, at 35.1 hours per vehicle in North America. Ford Motor Company was sixth, at 33.88 hours, a 3.7-percent improvement over last year, Nissan was fifth, at an estimated 32.96 hours, or 8.8 percent more time than the previous year, and GM was fourth, at 32.29 hours, a 0.2-percent improvement. Honda was third, at 31.33 hours, a 2.3-percent improvement.
Chrysler was 7.7-percent more efficient than the previous year and Toyota got 1.5-percent less efficient, to tie at 30.37 hours, average, to make a new vehicle in North America. Harbour got Chrysler's numbers late last year, before it was taken private. Chrysler and Dodge divisions were not much better with quality, according to the J.D. Power study. Chrysler was 29th, with 142 problems per 100, and Dodge was 28th, with 141. Toyota was fifth, with 104.
You can learn much about an automaker's profitability by looking at its capacity utilization. Chrysler's factories run from 46 percent of capacity to 126 percent of capacity, with an overall rate of 88 percent. Key to an automaker's efficiency is plant flexibility, which allows an automaker to fill that 46-percent plant's truck capacity with small cars, for instance, and also saving from paying costly overtime to run third shifts and weekends on a 126-percent-capacity compact car plant.
Ford averages 84 percent, with a range of 47- to 129-percent. GM averages 88 percent, with a 44- to 147-percent range. Honda runs from 62- to 100-percent and averages 97 percent. Nissan runs from 72- to 92-percent, averaging 80 percent.
And Toyota's range is 92- to 107-percent, with its plants running at an astonishing 100-percent overall capacity. You can't get more cost-efficient than that.
For the most part, though, Harbour sees better times ahead for North American production, for American and foreign-brand cars.
"We've seen more improvement in the last five years than in the previous 15," Harbour says. His company now is part of Munich-based Oliver Wyman and has branched out with surveys of automotive plants in Europe and South America. The surprise here is what Harbour calls the "bright story": Fiat.
He's also bullish on how the Detroit Three will do with the bloody, brutal shift from big trucks and SUVs to small cars. GM, Ford, and Chrysler always have struggled to make any money on small cars, while Toyota and other Asian automakers excel at it.
Harbour's forecast for labor cost per vehicle is as optimistic about the Detroit Three as Harbour is about Italy's Fiat. Calculate Motown's efficiency and productivity gains along with labor costs that last year's United Auto Worker contracts will save, and Toyota, Nissan and Honda go from a $606 per-vehicle advantage over GM, Ford, and Chrysler in 2007 to just $97 by 2011. That's the best news you'll read about the domestic auto industry for the next three years.
To buy a copy of The Harbour Report, click here.
Thursday, October 30, 2008 | 0 Comments
Cadillac CTS-V does 0-60 mph in 3.9 seconds, has 556-hp
MILFORD, MICHIGAN -- Official Society of Automotive Engineers numbers for the 2009 Cadillac CTS-V are 556 hp and 551 lb-ft of torque. Its 6.2L supercharged OHV V-8 propelled it around a lap of the Nordshleife in seven min, 59.32 sec recently, and Cadillac says it will launch it from 0 to 60 mph in 3.9 sec. Quarter-mile? About 12 sec at 118 mph. Cadillac says some runs have beat 12 sec; others are slightly over.
Cadillac says times are too close to delineate between the six-speed automatic with sport-shift programming and paddle-shifters and the full six-speed manual. There's much more to tell, but I'm posting this quickly...more on the car to come.
Manufacturers' numbers typically are a tad conservative. Our testers will have their hands full trying to beat a 12-sec quarter-mile, though. How do the CTS-V's chief rivals measure up? These are numbers from Art St. Antoine's February 2007 comparison, "The Terminators":
2006 BMW M5
500-hp, 383 lb-ft. DOHC 5.0L V-10, 7-speed auto-clutch manual
0-60 mph in 4.4 sec.
1/4-mile in 12.7 sec. @ 114.6 mph
2007 Audi S6
435-hp, 398 lb-ft. DOHC 5.2L V-10, six-speed automatic
0-60 mph in 5.1 sec.
1/4-mile in 13.6 sec @ 104.4 mph
2007 Mercedes-Benz E63 AMG
507-hp, 465 lb-ft. DOHC 6.2L V-8
0-60 mph in 4.3 sec.
1/4-mile in 12.7 sec @ 113.0 mph
If we can replicate Cadillac's numbers, the CTS-V will rival these smaller, lighter cars, as tested in Matt Stone's "There Will Be Blood" comparison for the May 2008 issue:
2008 Mercedes-Benz C63 AMG
451-hp, 443 lb-ft. DOHC 6.2L V-8, 7-speed automatic
0-60 mph in 4.1 sec.
1/4-mile in 12.5 sec. @ 113.5 mph
2008 BMW M3
414-hp, 295 lb-ft. DOHC 4.0L V-8, 6-speed manual
0-60 mph in 4.3 sec.
1/4-mile in 12.7 sec @ 111.3 mph
2008 Lexus IS F
416-hp, 371 lb-ft. DOHC 5.0L V-8
0-60 mph in 4.3 sec.
1/4-mile in 12.7 sec. @ 113.4 mph
Monday, October 27, 2008 | 0 Comments
RWD Buick isn't dead -- it's just smaller
DETROIT - Last week I reported that General Motors' plans for a rear-drive 2011 Chevrolet Impala and Buick Lucerne appear to be dead. That's about half right: the Impala certainly will remain FWD, but a RWD Lucerne replacement may survive. Designers apparently are reworking the car to make it smaller.
Originally, the 2011 Buick Lucerne was to be about the same overall length, with the same wheelbase as the converged 2011 Cadillac DTS/STS replacement. All these cars, including the RWD Impala, were scheduled for the new Zeta platform, which, as Mike Connor reports in the July 2008 issue of Motor Trend, is itself to converge with the Cadillac Sigma RWD platform.
The Buick was to go on the 118.5-in.-wheelbase "large" Zeta platform shared with the Holden Statesman and the Holden Ute/Pontiac G8 pickup. The converged big Caddy is scheduled for a premium version of the large Zeta platform, with forged-aluminum suspension bits and probably longer overhangs.
It appears the Buick will instead take the midsize Zeta platform, sharing it with the Pontiac G8 sedan and Holden Commodore. It has a 114.8-in. wheelbase, which is 0.8-in. shorter than the current, FWD Buick Lucerne's. While front-drive provides better interior space efficiency, the G8 is a spacious large midsize car (or small full-size, if you will), and with a front short overhang, it's 196.1 in. overall, 7.1 in. shorter than the '08 Lucerne.
The big reason given for cutting RWD programs, of course, is fuel economy. There's $4 gas and there are strict, proposed 2011-15 Corporate Average Fuel Economy standards. If adopted, the CAFE standards make it more important to get better mileage out of whatever size cars you have, rather than to switch from big cars and trucks to small ones. And here, a comparison between the RWD G8 and FWD Lucerne is instructive.
The 256-hp Pontiac G8 with the 3.6L V-6 is rated 17/25 mpg; the 197-hp (cough, cough) Buick Lucerne with the 3.8L V-6 is rated 16/25 mpg. The 361-hp G8 GT with the 6.0-liter V-8 is rated 15/25 mpg, while the 292-hp Lucerne Super with the 4.6-liter V-8 is rated 15/22 mpg. With gas-direct injection, or hybrid- or diesel-power, the RWD Zeta platform would make an even greater gain.
Enthusiasts will lament the fact that the RWD Buick has a life, while the RWD Impala does not. But as I wrote in my May 27 post, Chevy already has its Zeta RWD car, the Camaro, on its way, while the FWD Impala is a very popular car that sells directly against the Ford Taurus. No doubt, Cadillac didn't like the idea of Buick getting a Zeta of the same length and wheelbase as the converged DTS/STS. If the Cadillac was originally designed with longer overhangs than on the cancelled 118.5-in. wheelbase Lucerne, those longer overhangs probably have been erased. What's more, while the next Chevy Impala can be built on an extended Epsilon platform, large Epsilon probably wouldn't work for the Buick. The big question now is, will the Lucerne replacement be delayed much beyond an expected '11 model year intro? It could be as much as a year or two.
Since the Buick Lucerne replacement will be sharing Buick-Pontiac-GMC showrooms with the G8, it's important the Lucerne doesn't land right on top of that sport sedan. The Lucerne is a low-volume car. Buick sold just 83,000 in the U.S. last year and isn't likely to match that in '08. It should be softer and quieter and start where a well-equipped G8 leaves off. It doesn't even need a V-8 option. If GM can show some discipline about divisional overlap, the RWD Lucerne will be to the G8 what the Buick Enclave is to the GMC Acadia.
Sunday, October 26, 2008 | 0 Comments
Invicta or LaCrosse, what should Buick call its new Epsilon?
DETROIT - General Motors previewed its Beijing auto show "concept" Monday; the Buick Invicta sedan. The Invicta is said to hint at the next-generation LaCrosse, which will be built off the second-generation Epsilon (Chevy Malibu/Pontiac G6/Saturn Aura/Saab 9-3) platform, but really, what showgoers will see Saturday is pretty much the real car. Its styling, says GM interior design chief Dave Lyon, will feature modern interpretations of the Buick portholes (or "ventiports" as they were called in the '50s) and the "sweepspear," the asymmetric v-shaped profile accent found on many of the brand's cars in the '50s and '60s.
With the Invicta, Buick designers have taken last year's Riviera concept even further, Lyon says, making "a very aggressive, very chic four-door concept with a low roofline." You may also read that to mean there's no Buick coupe in the cards. The division's biggest market, China, (where most Buick owners ride in the back seat) is even more adverse to two-door models than is the U.S. As for the "low roofline," it's mostly a visual trick, made possible by a high beltline. Think front-drive, midsize version of the Chrysler 300.
The good news is that this will make for a stylish front-drive midsize car, intended to take advantage of the momentum begun with the Enclave crossover-utility vehicle. The interior also will pick up some of the themes the Riviera concept set, like ambient lighting. Lyon describes it as evoking calm and quiet. "It'll lower your blood-pressure," he says.
It's the Riviera concept made into a real, marketable car. And while GM design chief Ed Welburn hinted at Shanghai last year that Buick might consider a halo coupe, it doesn't look like something that will happen anytime soon. With Pontiac-Buick-GMC dealerships here undergoing consolidation, Buick can make do with three models; the Invicta/LaCrosse, the Enclave and (I hope a rear-drive) Lucerne replacement.
Buick sold 332,000 cars in China in 2007, up nine percent over '06. That includes the Excelle, a rebadged Daewoo not sold here. Buick sold just 185,791 in the U.S. last year, despite the Enclave's success. That's down from 240,657, due in part to GM's walking away from the fleet/rental business.
As for the name, I like "Invicta" better than "LaCrosse." It's an untarnished name, used from the 1959 to '63 model years on the Century replacement. While the latest Centurys apparently were named for the average age of their buyers, it was Buick's hot-rod model in the late '30s and from 1954 to 1958. It used the Special's A-body, with the biggest, most powerful engine from the Roadmaster under the hood. It would be a good name on a stylish, powerful-looking replacement for the LaCrosse. And as far as I know, Buick wouldn't have to rebadge it for the Canadian market.
In mid-century terms, the new LaCrosse fits into the Buick lineup roughly where the Special/Century (later, LeSabre/Invicta) was. A rear-drive Lucerne should fit where the Super and Roadmaster, and later the Electra and Electra 225 were in the post-modern period.
GM has an opportunity to better separate its divisions with cars like the Epsilon LaCrosse replacement. The automaker's marketing geniuses like to describe the Buick's "quiet luxury," as a differentiator from the Chevy Malibu's "value statement" or the Pontiac G6's "sporty excitement." Press them on any real mechanical or content differences, and GM marketing will probably tell you that you'll be able to buy any of them for the same base price. Pontiac buyers simply won't mix with the Buick buyers in the same dealerships, they say.
That's bull. Many GM buyers like to shop any of the "middle" divisions, as long as they're not Chevys or Cadillacs. The Epsilon LaCrosse should not only be a quieter, somewhat softer car than the Epsilon G6, it should also be a step up in base price, with more standard equipment and more optional equipment, kind of like the Lexus ES 350 to the Toyota Camry. GM is in the unenviable position of having to survive and eventually thrive with shrinking market share in a more competitive market and retain its eight U.S. market divisions (to avoid more problems with its dealerships). Having real -- not marketspeak -- differences between these divisions would help.
Sunday, October 26, 2008 | 0 Comments
Does Buick need an entry-level car beneath the LaCrosse?
One of the latest rumors from GM making the rounds has the automaker contemplating a model to slot in beneath the LaCrosse sedan as a new, cheaper, smaller vehicle, according to a recent Automotive News report. The car, likely to be based on the next-generation Chinese-made Buick Excelle compact sedan debuting in China next year (the present car is pictured), could serve two purposes for the automaker: filling in the small luxury car void in the company lineup; and helping Buick to meet new CAFE fuel economy standards by offering a model with a high mpg rating.
The report has GM executives optimistic that such a car could be a sales success in the U.S., though a major hurdle will be determining where to build the car. Another key question revolves around how to fit the car in with other compact models in the General Motors universe -- the likelihood for cannibalization of sales could be relatively high.
What's your take? Does Buick really need a small luxury car and will it have any possibility of selling? Undoubtedly, the current hottest Buick going is the Enclave SUV, but does the success of that model mark a turnaround for the automaker or just a lucky strike? Perhaps even more relevant, will anyone even care and should Buick be axed altogether? Let us know your thoughts in the comments section below!
Sunday, October 26, 2008 | 0 Comments
BMW GPE08 Day 1: Rolls-Royce talks up its new small saloon
This week marks the beginning of BMW Group Press Event 2008, a veritable orgy of information on all the latest from Rolls-Royce, BMW and MINI.
Night number one kicked off with the guys from Goodwood -- Rolls-Royce. No drives, chauffeured or otherwise, just dinner and conversation with several key executives, including Chairman and CEO of BMW North America, Tom Purvis, and Chairman and CEO of Rolls-Royce, Ian Robertson, as well the global premiere of a new Rolls-Royce model.
We've agreed not to release any information on that model until the embargo breaks at 12:01am Sunday morning, but in the meantime, we can offer up some very interesting information about how Rolls is doing and what have they in store for the future -- including some tidbits on the rumored small Roller.
Here are the goods:
* The new, smaller Rolls-Royce should debut in 2009 as a 2010 model and is internally coded the RR4, following the naming convention for the Phantom (RR1), Drophead (RR2), and model whose name will be revealed on Sunday (RR3)
* RR4 is significant for the brand as show of strength and expansion. Rolls-Royce had record sales in 2007, breaking the 1000 unit sales mark (1010 vehicles sold worldwide) for the first time ever. Understandably, it is looking to expand production capacity with the introduction of the RR4. To this end, Rolls-Royce's sole plant, on Lord March's 12,000 acre estate in Goodwood, England, has recently been expanded to include a new assembly line and another shift (up from one shift to two) that should double output. For a company that only sold 300 units in 2003, this is big news indeed.
* RR4 should retail between $250,000-280,000, which puts it squarely in Bentley Arnage territory, though it should be sized more like the smaller Flying Spur. Rolls-Royce executives are quick to point out that there are few comparisons in this competitive set, not just in price, but objective -- smaller and sporty, but still the utmost in ultra premium transportation.
Graham Biggs, Rolls-Royce Corporate Communications Director, put it this way, "In the $100,000-200,000 price range, there are lots of cars. The RR4 buyer might have had a Flying Spur, an S-Class, or 7-series, but is looking to upgrade."
* Though it will be built in Goodwood alongside the Phantom and Drophead, the RR4 will not share architecture and will built on the new line. RR4 will share technology from BMW, including engine parts and electronics (iDrive) but only where it makes sense. Biggs explains, "It makes perfect sense to use BMW tech, but not at customer touch points; where customers, see, feel, etc..."
More interesting news from Ian Robertson, Chairman and CEO of Rolls-Royce on the current state of the brand:
* Of the 1010 Rolls-Royce models sold globally in 2007, just under 400 went to the United States, making it far and away the largest market. The UK was second with 130, while China finished a strong third at 110 units sold. That fact is particularly interesting, given that all Chinese buyers pay a 300 percent tax, which turns a $400,000 Phantom into a cool million car.
* Which are fourth and fifth largest markets? Taken together, the United Arab Emirates accounts for fourth place, but if you separate them into their respective countries, primarily Abu Dhabi and Dubai, Japan moves from fifth to fourth.
* The split between the owners that prefer to drive or be chauffeured is also telling. In North America, Robertson says 90 percent of Rolls-Royce owners drive their cars. In Asia and the Middle East, the ratio is reversed -- 90 percent of owners prefer to be driven.
* Buying habits also say a lot about North Americans. We're the only market where the dealer specifies the cars that are to be sold, partly because the North American consumer is impatient and will not wait the 4-5 months it would take to custom build a Phantom, or join the 18-20 month list for the Drophead. Apparently, we Norte Americanos want it now, and want to drive it right off the lot.
* Asia is different, says Robertson. There the customers are excited about the bespoke business model, and are perfectly happy to wait 10-12 months as their car is built to order. In fact they will often visit the factory one or two times to check out the progress on their vehicle and make last minute changes. Robertson says the Asian consumer seems to enjoy on the uniqueness of the car; in fact they sell more extended wheelbase (EWB) models in Asia because the longer chassis allows for greater customization.
* On the topic of the long wheelbases, you should know that due to the aluminum space frame construction of the Phantom, you don't have to stop at the 10-inches of extra wheelbase on the EWB. If you'd like a longer saloon, Rolls-Royce can accommodate nearly any length you'd like -- though the typical extensions are 15.7-inches (400mm) and 47.2-inches (1.2 meters), at which point you get another set of seats (facing the rear) and doors that open ahead of the scissoring rear doors. As far as the breakdown goes; EWB Phantoms make up 90 percent of the models sold in the Middle East, 60 percent in China, and only 10 percent in the US.
* If a custom EWB is not enough, Rolls-Royce also sells an armored version of the Phantom, which Robertson admits adds a lot of weight and complexity, since their armor is rated at a Central European Norm (CEN) protection level of B7. This means it will stop most standard military-grade small-arms fire and explosives, including mines, hand grenades, and those cool plastics you see in movies. For armoring, Rolls use of aluminum presents some problems, since heavy steel plating and aluminum don't mix. Special measures must be taken to insure that corrosion via electrolysis doesn't occur at the places where the two come together.
* More interesting sales trivia overheard: In the UK, BMW's Rolls-Royce marque outsells Mercedes-Benz's Maybach brand ten to one. No idea what the ratio is in the U.S., but the single largest Rolls-Royce dealer in the world's biggest Rolls-Royce market is just down the street from our office in Bevery Hills, California.
And that's it for day one of the BMW Group Press Event 2008. Check back with us regularly, as over the next three days we'll have drive reports on the BMW M3, 128, and MINI Clubman. Stay tuned.
Saturday, October 25, 2008 | 0 Comments
Rolls-Royce releases first details of new coupe
Rolls-Royce has confirmed that it'll be releasing a production version of the Phantom-based 101EX concept coupe seen at the 2006 Geneva motor show. The announcement comes a day after BMW chairman Norbert Reithofer announced that a coupe will be joining the Rolls-Royce lineup as part of the company's new strategic direction.
The yet-unnamed coupe will be slightly shorter than the Phantom, with its suspension and chassis slightly retuned to place more emphasis on the driver -- within the constraints of being a Rolls-Royce. The 6.75-liter V-12 will be unchanged from its 453-horsepower and 531-lb-ft output in the Phantom and Drophead Coupe. Price will be somewhere between the Phantom's $340,000 and the Drophead Coupe's $407,000, with production beginning next summer.
Saturday, October 25, 2008 | 0 Comments
Aston Martin to up production, supply James Bond with DBS
There is good news on two fronts for lovers of British luxury sports car maker, Aston Martin. Recently, Aston has announced that it will be supplying the world's favorite secret agent, James Bond, with another Aston Martin DBS for his upcoming film, while the BBC reports that production is about to be ramped up at the Gaydon plant with the unveiling of a new design studio, slated to help reduce waiting lists for new models.
Of course, James Bond films have a storied history with Aston Martin, with a vintage DB5 featured in some of the most iconic movies in the series. A DBS and Vanquish have also been featured, and most recently, a DBS for the last Bond flick, Casino Royale -- a movie which afforded the DBS a Guinness World Record for "The Most Cannon Rolls in a Car." Fortunately, it looks as if the DBS has been treated to some much-needed servicing for its return in the next Bond film (currently under the working title Bond 22) scheduled for release in November 2008.
Also fortunate is news from a BBC report that Aston Martin chief executive Ulrich Bez is seeking to increase production from the current 7,000 cars it produces annually. Bez acknowledges that wait times can be lengthy for his company's sports cars, especially with the recent grand openings of the first Aston showrooms in Shanghai and Moscow. A Beijing showroom is scheduled to follow later this month.
Bez states that in addition to an increase in production volume, an increase in design quality will stem from the Gaydon plant. Currently, there are 1,500 employees at the state-of-the-art facility, where Aston Martin produces its own engines, underframes, and chassis. The Gaydon site opened its doors in 2003 in Warwickshire, England as the successor to the recently closed Newport Pagnell plant, a historic facility that produced Aston Martins for over 50 years.
Tuesday, October 21, 2008 | 0 Comments
Acura considers adding niche products to lineup, good idea?
Acura is reportedly looking at expanding its lineup with several models designed to fill niche segments. The latest word from American Honda, via an Automotive News report, is that a small luxury coupe to replace the long-gone CL and a retractable hardtop model are both being considered. American Honda also pointed to the separation of Honda and Acura R&D departments and Acura's foray into the racing world as part of an effort to firmly establish the Japanese premium brand as a contender in the U.S. market.
Acura's sales dropped 7.8 percent this year through the end of August, with every model save the redesigned MDX crossover showing a loss in sales compared with 2006 figures. One bright spot is the RDX small crossover. Introduced late last year as a 2007 model year vehicle, the RDX has sold some 15,000 units since launch.
Industry analysts have suggested Acura could use a flagship sedan featuring an eight-cylinder, higher-displacement engine -- perhaps based on its 3.4-liter V-8 racing currently campaigning in the American Le Mans Series. There's also good reason to believe Acura will bring back its NSX halo sports car, which may boost the automaker's image despite the model's history of losing money. The Advanced Sports Car Concept (pictured) shown at last year's Detroit auto show likely represents the early stages of that car's development.
What does Acura need to place them as a true contender alongside Lexus and Infiniti? Should Acura enter niche markets as a method of attracting more business? Why hasn't Acura maintained its position as well as other premium Japanese brands despite having virtually invented the segment? Let's hear your thoughts! Also, to read about Acura's racing efforts in the ALMS, check out this exclusive feature article.
Monday, October 20, 2008 | 0 Comments
Acura TSX will reportedly be first U.S. Honda to get diesel
Acura's entry-level car, the TSX (the 2008 model is shown at left), will reportedly be the first U.S. Honda product to receive the automaker's new clean diesel engine. The 2.2-liter i-DTEC diesel, which the Japanese automaker boasts will the cleanest diesel in the world when it debuts, will first be offered this summer on the European Honda Accord, a car with which the TSX shares a body and most of its parts.
When the Acura TSX goes on sale, it will not initially be sold with the diesel, which Automotive News reports will come in 2009. A V-6 diesel is expected to arrive in 2010, probably on the redesigned Acura TL, the Acura MDX, the Honda Pilot, and possibly the Honda Ridgeline if it is still around.
Speculation for what will power the upcoming TSX has been rampant -- suggestions for its powerplant have included the RDX SUV's turbo four as well as a naturally-aspirated four producing around 220 horsepower.
With a new TSX and TL on the way as well as a badly needed RL refresh, better times appear to be ahead for Acura.
Would you go for an Acura TSX clean diesel? Tell us in comments below.
Monday, October 20, 2008 | 1 Comments