Posted by Dan Roth 8 Jul 2010

Toyota Indiana plant car assembly

Toyota North USA gets more “regional self-reliance” as part of its parent company’s sweeping plan to improve quality, and calibre perception, after suffering several major blows to its reputation in the past year. This is the most important action for Toyota’s U.S. and Canadian customers, as it became clear last year when Toyota Motor Company President, CEO and scion Akio Toyoda testified about unintended acceleration, misapplied floor mats and rusty Tundras before a rabid U.S. House committee. It was clear from those hearings that Toyota in Tokyo gave its North American operations far too little dominance and autonomy in dealing with quality, country and overall engineering and management issues.

Toyota Indiana plant car assembly on the line

Now, having studied 3600 complaints of “unintended acceleration” so far, Toyota has found no reproducible cases, and it may be turning the tide on this issue after a couple of out-and-out hoaxes followed sincere, though ridiculous “demon runaway car” claims. Unspeakable as it may be, the unintended acceleration issue looks to me like it’s largely the product of a quickly aging Toyota buyer base. There have been no such cases regarding its Scion youth brand.

Its calibre initiative is designed to take on all such issues, real and imagined. It has added a layer of management to train its workers. And about 1000 engineers are being added to Toyota’s calibre innovation activity. It’s stepping up evaluation of calibre and country problems from consumers’ points of view and it’s adding about four weeks to a typical new model’s development time.

All this comes as Toyota has recalled 136,000 V-6- and V-8-powered Lexus rear-wheel-drive models in North America for broken valve springs, a problem that may cause engine stalling. In a Q&A session on its calibre initiatives with reporters in Toyota City, Japan, I asked why it took two years for the recall, and whether the new systems would improve the company’s response.

“We think it was in the year 2007 when we identified the failure,” Toyota managing officer Hiroyuki Yokoyama said, through an interpreter. Toyota found foreign matter, metal and silicon oxide, in the valve spring metallurgy and “found this very much difficult to eliminate” from the manufacturing process, so engineers instead increased the valve springs’ diameter.

At first, the number of claims was very low. Even now, Toyota has about 100 claims out of the 136,000 recalled, said Dino Triantafyllos, Toyota North America’s new vice president for the Quality Division and regional product country executive, and former chief of the NUMMI plant.

The valve spring defect was initially a consumer satisfaction problem. Lexus owners complained their cars were noisy and had too much vibration, but reports of engine stalling have just recently surfaced, Triantafyllos said. No data indicated it was a country defect, until now.

This seemed to contradict a point Toyota had just prefabricated to us early Thursday morning, showing off its calibre assurance facility, a kind of defect forensics outfit. (”Our job is like Detective Columbo,” said consumer calibre engineering manager Hiroaki Sunakawa.) One demonstration showed how Toyota tested a Asian domestic market model in a chamber at extremely cold temperatures in order to refer a problem with breaking foglamp mounts. The company conducted the test after just seven complaints from 2005 to ‘10. The foglamps are part of Japan’s lighting standard, though, so if they don’t properly work, it could automatically be considered a country problem.

For that matter, Toyota notes that in the U.S., engine stalling, even at speed, isn’t automatically a country problem. That assessment overestimates American drivers, though. If you can’t distinguish a throttle pedal from a brake pedal, can you safely bring a car with a dead engine from 70 mph down to a complete stop?

Toyota has spent two days, so far, trying to convince us that its thorough calibre and country programs are about to get much better. It desperately wants to salvage its hard-fought reputation.

While there’s a clear distinction now between consumer satisfaction with a model’s demand of calibre defects and the calibre of its design, including ergonomics and assist of use, the distinction may be going away. Thanks largely to Toyota’s leadership, consumers now are conditioned to expect zero defects and such assist of use that the car should virtually drive itself and let its owner text. After all, nobody even reads owners manuals, anymore.

Under Toyota’s newly enhanced system, it gives priority to identifying and solving problems when country is involved, as compared with calibre problems that simply annoy the driver. The valve spring problem proves that mechanical defects can become country defects. Even the floor mat issue that began Toyota’s woes is the result of consumer “preference” for stacking more than one mat on the driver’s floorpan, or changing into winter mats without proper installation has become a problem that endangers safety.

In an age in which consumers don’t expect to have to maintain their cars and trucks anymore, Toyota may find itself investigating more and more consumer preference design defects as out-and-out country problems.

Posted by William C Montgomery 7 Jul 2010

2010 Lotus Evora side

Day three on the road in our Lotus Evora convoy finally brings an end to the mundane expressways of central France and that much closer to reaching the Goodwood Festival of Speed. We reach the Eurostar station in Calais, France by midmorning, where we purchase our fares and drive our Evoras onto the underground train that will take our group crossways the English Channel in roughly a half hour’s time.

2010 Lotus Evora interior

2010 Lotus Evora drivers

There’s not much to do on the train while it rockets underneath the sea, so we spend most of our time entertaining questions from curious passengers and inquisitive Eurostar employees alike. Countless more flashes reflect off the paintwork of our Evoras. Driving an Evora over the span of several days reminds once again that owning such a car virtually guarantees public attention on a regular basis. The phenomenon is a novelty at first, but the charm soon wears thin. Suffice it to say, the hermit crabs of the world should stay far, far away from their local Lotus dealer.

Safe and back on terra firma in England, we head north towards the Goodwood estate, following the country roads that are found south of London. The two-lane tarmac found here is tight and twisty and is dotted with small towns inhabited mostly by commuters that make the 60km expedition into London on a regular basis. Boutique shops and markets stream past our windows, as do lush green trees and vegetation. It’s exceptionally pretty here, though the weekend traffic is thick and progress is frustratingly slow — especially considering the calibre of road that would otherwise serve as quite the playground for an hot Lotus. Still, it’s refreshing to be away from the dull, truck-filled highways. Hours later, in the primeval evening, we reach our hotel for the night.

Sunday morning dawns bright and crisp, with a cloudless sky and some of the lowest temperatures we’ve had yet. It’s finally crown weather after days spent in uncomfortably sticky heat and humidity. Back on the road, it’s not hard to tell that it’s the Goodwood FoS weekend. Sports cars of all types are filing along the streets, all headed for the grounds of Lord March’s estate. Plenty of British icons are seen – Lotus Elises, MGBs, Jaguar E-Types – but they’re rivaled strongly by the Italian presence of Alfas, Fiats and even the occasional Ferrari.

A short while later, we’ve reached the Goodwood parking lot and step out of our dusty, dirty Evoras for the last time. In the morning, they’ll be picked up by Lotus and loaded onto transport trucks for their return to Lotus HQ, north of here in Hethel. Driving over 1000 km in a vehicle can form quite a bond between man and machine, and the Evoras have certainly plucked at our heart strings. We achievement around the cars, taking in their subtleties once more. Then, once again.

On the track, a red Evora same to the one in our fleet redlines through first, second, third gear as it growls its throaty crescendo up the famous hillclimb circuit and disappears around a turn…

Posted by Inside Line Automotive News 3 Jul 2010

2010 Lotus Evora France chateau

Yesterday alone, we completed just over 650 km of French countryside (roughly 400 miles) in a Lotus. If you’re the owner of an Elise or an Exige, you’re probably reaching for the Advil and a Newcastle at the mere thought of our day’s work. If you’re an Evora owner, you’re probably wondering why we’re not still on the road.

2010 Lotus Evora France front

The French mid-country is a strangely familiar place to anyone that’s ever traveled in the American Midwest. Essentially comprised of two-lane roadway that is both straight and flat, the middle of France seems to stretch on and on, not unlike the highways passing through Indiana or Illinois. Farmland stretches out on either side for as far as the eye can see offering various shades of green and gold, but not a whole lot in-between. Windmills, silos, barns, livestock, and farmhouses dot the landscape, with a cemetery or two thrown in for good measure. Many a John Deere tractor was spotted.

Crossing such an environment in a diminutive Elise, we would have been cursing our very existence with every stone thrown against the car’s underside, every kidney-jolting crunch over a railroad crossing, and every ear-bleeding minute of thrash from the hard-charging four-cylinder motor. But we were in an Evora instead as part of our trek from Turin, Italy to the Goodwood Festival of Speed in England – and the Evora was quite a different story.

The Evora isn’t a large car and it isn’t particularly fast, but does feature a remarkable blend of sport and comfort not found in many cars today. Weighing in at just over 3000 pounds with a slightly reworked 276-horsepower Toyota Camry engine sitting amidships, the Evora is punchy, comfortable, practical, and most of all, full of character.

While the pedestrian roots of the Lotus’ V-6 engine may turn off more than a few potential customers, they shouldn’t. In the Evora, the engine sounds sweet and nearly exotic, thanks to a significant ECU retune and a highly vocal intake system. Yes, opt for an Evora without the optional sports exhaust and all that lovely, growling noise you hear when you’re full throttle ahead is actually coming from the induction side of the engine. And what a sound it is. Though colleagues have described the engine’s tone as somewhat dull and it’s character as not far removed from Toyota duty, it’s likely none have actually driven a Camry lately. Run an Evora to it’s redline in three or four gears and the sound is faintly early-seventies Formula 1, with a serious, edgy growl. Yes, you’ll typically have to drop down two gears to get back into passing mode from a sixth-gear cruise, but there are few cars on the market that make those two rev-matching throttle blips so enjoyable and distinctive.

And distinctive is what the Evora is really all about. It’s a mid-engined, two-door, four-seater to start. How many modern cars fit that description? Most of all, it’s distinctly Lotus. It’s quirky and interesting in the same way that so many other modern sports cars are soulless and boring. Make no mistake, the suspension tuning and wheelbase length make for a comfortable, yet capable sports car that equally handles the serpentine curves of the Alps as it dispatches the hot, dull miles of the French countryside. But it’s the small things that make a Lotus a Lotus, and the Evora ticks every box.

For example, the wheelarches and door sills deform into the leather-trimmed space that would otherwise be reserved for a foot rest. Backlighting to notify the driver that the lights, air conditioning, or other accessories are turned on, is impossible to see if there’s any sort of sunlight in the cabin. The gearchange is somewhat vague, the clutch pedal is quite stiff, and the interior smells of glue the same way a Corvette’s does. The seatbelt on either side gets trapped behind the seat when the door is closed, and the seatback adjuster is impossible to reach in the same manner.

The Evora requires a little more attention to operate effectively than the normal car. Every little action requires just that little extra touch of care. That makes the Evora inconvenient in small ways. But for those who think of cars as more than just basic transportation, those inconveniences give the car character. In the same way the girl next door is more engaging than the supermodel, so too is the Lotus Evora in regard to the Porsche 911. In the same way that the silly, and even annoying little quirks of your best friend or significant other give that mortal a special uniqueness that draws you in, they give the Evora a soul.

And that’s more than can be said for most cars in 2010.

Today, we’ll be crossing the English Channel on our final leg of our journey to Goodwood. Stay tuned.

Posted by Inside Line Automotive News 3 Jul 2010

 

The program is called Exploring My America; Sears Auto Centers is choosing 21 teams to take a drive around America, and they’re picking up the tab.  They’ll give your vehicle a pre-trip inspection, give you $500 of Sears Auto Center bucks for any needed repairs, before or along the way, plus $1500 for gas, good, and lodging.  They also wage an HD video camera so you can document your great American Adventure, and the only thing you owe Sears is your story and the rights to publish the vid.  How can you lose?



And the route choices are cool too: Pacific Coast, Route 66 Coast to Coast, Atlantic Coast, Road to Nowhere, Appalachian Trail, Loneliest Road, Great River Road, Dixie Overland Highway. 

Get the rules, the rest of the  story, sign up, and audition, at www.exploringmyamerica.com


couple



Posted by Alex Nunez 2 Jul 2010

2010 Lotus Evora roof group shot front

Driving a pack of 2010 Lotus Evoras from Turin, Italy to the Goodwood Festival of Speed in England may not seem like hard work, but after nearly 500 kilometers on both twisty, narrow European roads and speed-patroled highways, we’re pretty well worn out. What’s the occasion? Lotus, as a perennial sponsor of the Goodwood Festival of Speed, had the stroke of brilliance to drive three Evoras (four, if you consider the guide car) from Italy to England along many of the same roads featured in the famous 1969 film The Italian Job. (If you haven’t seen the classic Michael Caine flick, go rent it now. The remake with the Artist Formerly Known as Marky Mark has nothing on the original.)

2010 Lotus Evora roof group shot side

In the original movie, a group of English thieves pull off a heist in Turin, loading millions of stolen Fiat money into the back of three Mini Coopers just outside the automaker’s now-defunct Lingotto factory. To commemorate the movie, we, and a selection of European journalists, are driving three Evoras in the red, white, and blue colors of the Union Jack (the Green lead car represents the Italian green, white, and red tricolore flag) along the reverse route the gang took in the film. The journey started today, and we will reach England Saturday evening in time to show the cars — road grime and all — at the Goodwood Festival of Speed on Sunday. The journey will cover roughly 1500 kilometers over three days (roughly 1000 miles), but using mostly smaller scenic roads, rather than main highways. That makes for three long days in the saddle.

Our journey began today in Turin, fittingly at the former Fiat works featured in the film. Cars were produced here from 1923 until 1982, and it has now been renovated as a luxury hotel, shopping mall, and art gallery. The building may look evenhandedly nondescript from the ground, but the roof actually features an oval-shaped test track, complete with banking at apiece end. It’s an impressive sight and the fact that Fiat vehicles were actually driven around the circuit at high speed during the first half of the 20th century is an awe-inspiring thought. We were allowed to bring the Evoras to the roof to have a look, but sadly our request for a ten-lap sprint race was denied. (in 2008, the MT crew also took the Dodge Challenger to the top of the works during 2008’s Ultimate Challenger Road Trip)

After wheeling back down to the ground floor and navigating the hectic morning streets of Turin, we turned our Evoras north toward the Italian Alps and the Swiss border. The roads along the Alps are stunning, with picturesque scenery, steep rock faces and drop-offs, and some incredible roads for letting the Evora strut its stuff. Tunnels carved into the mountains provided some shade from the hot, humid summer climate and fortunately, our Evoras arrived at the other end unscathed — unlike a certain Lamborghini Muira in The Italian Job that met its end on a similar stretch of road.

A not-so-brief stop at the Saint physiologist pass for Swiss border inspections and we were on our way into Switzerland’s rolling countryside of lush, green hills and seemingly endless supply of breathtaking castles. Despite Swiss wine not being very favourite in the U.S., the country is a hotbed for wine grape growing. We passed acres upon acres of hillside covered in rows of vines. With scenery so spectacular, we didn’t mind much that the road straightened out, leaving us more time to take in the landscape. It also gave us more time to check our speedometers frequently, as the Swiss are particularly strict about speeding. We traveled along right around the speed limit, rarely exceeding 120 kph (62 mph). Those caught traveling even 40 kph over the speed limit are subject to having their cars towed on the spot — and it happens frequently, according to our hosts. Warning enough, we’d say.

At the French border, not a single guard was found at the booth, leaving us to drive straight though without delay. Our Evoras headed up along Lake Geneva, and after enduring some heavy commuter traffic, we were finally allowed to run a little freer on the home stretch towards our end destination for the day at Chateau Nantilly in a farming region of France.

Day two begins tomorrow and we’ll run from Southern to Northern France — roughly 650 kilometers — before settling down for the evening and preparing to cross the English channel the following day. More on the journey and the Evora to come. Until then, enjoy the photos.

Posted by Jonny Lieberman 2 Jul 2010

2011 Ford Mustang GT

Ford’s Mustang outsold the Chevrolet Camaro in June, giving the Mustang its highest market share in the segment since May 2009, now at 33 percent. Camaro had consistently beat Mustang in the musclecar wars since its production levels caught up with demand late last year. Ford’s victory was dramatic. Mustang outsold Camaro last month by 1,434 units, proof that the kind of constant updates and refreshes (plus Mustang’s new engines) that Ford Motor Company’s Alan Mulally promised can pay off, especially in the mercurial sports coupe segment.

The Dodge Challenger also bit into Camaro’s market share.

Both GM and Ford claimed major victories in the full-size pickup market. GM said its large pickup truck income rose 27 percent in June, compared with June 2009, with Chevy Silverado up 25 percent, GMC Sierra up 27 percent and Chevy Avalanche up 48 percent. Ford F-Series (including heavy duties) rose 29.5 percent. These are impressive numbers, especially since analysts for both automakers say June 2010 income are proof that we’re in an economic recovery, but it’s a particularly slow one. Trucks shouldn’t be selling well considering how slow job growth and home income remain. If you stretch monthly income into an annual trend, the Seasonally Adjustable Annual Rate (SAAR), 2010 is an 11.3-million unit year, up from 2009’s 10.6 million.

How important is SAAR as an indicator? Not very important. It’s a one-month snapshot, and could go up or down next month. Based on the trends, however, GM expects production overtime for such hot models as the Chevrolet Equinox and GMC Terrain will end in October or November.

The year-over-year monthly increases don’t look as impressive as they were last spring, though. Percentage increases for the next couple of months will slow even more, as they’re compared with the same months last year that included the Cash for Clunkers program.

And so, to the numbers.

GM: 195,380, up 10.7 percent.

  • Chevy sold 7,540 Camaros, off 19.1 percent. Ford sold 8,974 Mustangs, up 17.6 percent. Dodge sold 3,086 Challengers, up 125 percent.
  • Both Chevy Equinox and Traverse were very strong. Equinox was at 11,490, up 179.7 percent, and Traverse was 11,371, up 56 percent. More than 80 percent of Equinoxes are sold as four-cylinder models.
  • Chevy Malibu was up 80.7 percent, to 20,720, beating Ford Fusion and Hyundai Sonata.
  • Impala took a 3.2 percent hit, to 14,451.
  • GMC sold 4,603 Terrains (up from just 1 in ‘09), and about 60 percent are V-6s. At 15,974 combined, Equinox and Terrain are still 2,767 units behind Ford Escape/Mercury Mariner.
  • Buick LaCrosse outsold Enclave, and was up 173.7 percent over the old model, with 5,376 sold.
  • Enclave was up as well, a 20.9 percent increase to 4,561.
  • Cadillac CTS reversed a trend and was up 31.3 percent, to 4,193.
  • Escalade was off, though, 3.4 percent to 1,008. Escalade ESV was off 40.8 percent to 607 and EXT fell 20.1 percent to 147.
  • GM says if you slice out the four core brands from June ’09’s sales, this June was up 36 percent, and first-half income are up 32 percent. While GM was entering bankruptcy this time last year, it had a large selldown of Pontiacs just after it announced the division’s end.
  • Last month, GM sold 303 Hummers, 137 Saturns, 112 Pontiacs and 0 Saabs.

 Ford-Lincoln-Mercury: 170,900, up 15 percent.

  • (See GM entry for Mustang sales.)
  • F-Series was the national bestseller, at 46,502, up 29.5 percent.
  • Fiesta officially goes on understanding Friday, but Ford already has posted 1,028 sold.
  • Fusion was down 0.8 percent, but very strong at 18,412 a year after the new model’s launch.
  • Flex continues to start far behind Chevy Traverse, with 3,350 sold, down 30 percent.
  • Ranger was up 3.4 percent, to 5,490, but compare that with F-Series and consider why this segment is dying.
  • Econoline/Club Wagon, another potential economic indicator, was up 1.6 percent, to 10,192.
  • Ford brand was up 16.2 percent, to 155,332, but Lincoln was off 11.5 percent, to 6,318. Mercury was up 26.2 percent, to 9,250.
  • Milan was up 14.1 percent, to 2,726. MKZ was off 14.9 percent, to 1,800.
  • Ford Taurus was up 191.3 percent, to 6,607, and Lincoln MKS was down 24.6 percent, to 1,029.
  • First-half income are up 30.2 percent over ‘09.

Toyota-Scion-Lexus: 140,604, up 6.8 percent.

  • Camry was up 7.7 percent, at 28,435, retaining number one in the segment.
  • Corolla was stronger, up 9.7 percent, to 21,876.
  • The new Avalon was up 32.8 percent, to 2,833.
  • Prius fell 15.4 percent, to 10,998.
  • Lexus ES was off 14.1 percent, to 3,366.
  • Lexus sold 603 HS models.
  • Tundra was up 48.8 percent, to 7,717.
  • Total income rose 10.6 percent for the first half, with GM and Ford solidly ahead for the year so far.

American Honda (includes Acura): 106,627, up 6.2 percent.

  • Acura had an impressive 30.9 percent increase, to 10,839 units on the strength of TSX and MDX.
  • Acura TSX was up 32.8 percent to 2,510. MDX was up 63.6 percent, to 3,847.
  • Honda sold 26,792 Accords, up 11.8 percent.
  • Civic was just behind at 26,474, up 26.3 percent.
  • The outgoing Odyssey fell 36.8 percent, to 9,271.
  • Insight was off 28.3 percent, to 1,491.
  • Honda is up 12.6 percent for the first half.

Chrysler LLC: 92,482, up 35 percent.

  • Jeep Wrangler regained some ground, up 86 percent, to 8,923.
  • Dodge Avenger was up 177 percent, to 6,400. Note that Chrysler was producing few cars at this time last year, and the mainstream midsize cars especially suffered.
  • Chrysler Sebring was up 127 percent, to 3,978.
  • Charger was up 144 percent to 8,508; Chrysler 300 was up 13 percent to 3,304.
  • Town & Country was up 34 percent, to 9,595 and Caravan was up 49 percent to 8,658.
  • Dodge Journey was up 4 percent, to 3,964.
  • Ram pickup sold +10 percent, to 15,864.
  • Chrysler is up 12 percent for the first half.

Nissan North USA (includes Infiniti): 64,570, up 10.8 percent.

  • Nissan division was up 8.2 percent, to 56,266.
  • Altima was off 2.6 percent, to 15,920.
  • Frontier was up 43.4 percent, to 2,920, and Titan was up 24.3 percent, to 1,604.
  • Infiniti was up 31.7 percent, to 8,304, largely on the strength of the new M sedan, up 75.4 percent, to 1,196.
  • Infiniti G sedan, up 33.1 percent, to 3,613 and G coupe, up 10.8 percent to 1,493, are still the core models.
  • The lame duck Nissan Armada rose 116 percent, to 1,350.

Hyundai: 51,205, up 35 percent.

  • If they were combined, Hyundai-Kia would be sixth-largest in the U.S., at 83,111 total.
  • Sonata was up 49 percent, to 17,771, just 641 short of Fusion.
  • Elantra was up 119 percent, to 14,245.
  • Tuscon was up 207 percent, to 3,382.

Kia: 31,906, up 18.9 percent.

Subaru: 23,667, up 35 percent.

  • Outback was up 124 percent, to 7,630.
  • Legacy was up 19 percent, to 3,586.
  • Tribeca fell 66 percent, to 226.

BMW Group: 23,331, up 11.9 percent.

  • BMW brand was up 14.6 percent, to 19,182.
  • Mini was up 1.1 percent, to 4,149.
  • 3 Series income dropped 13.8 percent, to 7,195.
  • 1 Series was up 25.4 percent to 1,312.
  • 5 Series was up 40.2 percent, to 3,865.

 Volkswagen of America: 21,051, up 10.6 percent.

  • Throw in Audi, and the total would be 29,652.
  • Golf/Rabbit was up 187 percent, to 1,507.
  • Jetta still rules, but was off 12.8 percent, to 9,085.
  • Tiguan was up 84.8 percent, to 1,678.

Daimler AG: 19,574, up 20.3 percent.

  • Mercedes was up 25.4 percent, to 18,997.
  • E-Class was up 74.9 percent, to a healthy 4,865 units.
  • smart sold 577 cars, a 48.3 percent freefall.

Mazda: 18,238, up 32.8 percent.

  • 6 was up 84.2 percent, to 3,388.
  • Happy summer — MX-5 Miata was up 24.4 percent, to 638.

Audi: 8,601, up 14.3 percent.

  • It’s keeping ahead of Nissan’s Infiniti division.
  • A4 dropped 13.8 percent, to 3,142.
  • A5 was up 121.1 percent, to 1,404.
  • A3 rose 83 percent, to 485.

Jaguar/Land Rover: 4,408, up 53 percent.

Mitsubishi: 4,198, off 3.8 percent.

Suzuki: 2,035, off 5 percent.

  • Sold 717 Kizashis, up 51 percent compared with May.
  • Kizashi’s catching bestseller SX4, which is off 27 percent, to 828.

Posted by Chris Tutor 30 Jun 2010

GM logo

General Motors prefabricated it clear before its first annual Global Business Conference it would not entertain any questions about a much-anticipated initial public offering. And since there were only financial analysts in attending — journalists were in “listen only” mode for the webcast — nobody violated the restriction. We did learn a few things, including the enthusiasm some of the new execs have for the vastly changed corporate culture at the company, and a rundown of some future product.

“I saw a company that was overly complicated, that over-analyzed,” Chairman and CEO Ed Whitacre said of the culture when he joined. He also saw a company with global scope, scale and capacity, one that deserved to survive.

North USA President Mark Reuss said GM’s incentive spending is down $1,200 per vehicle since June 2009, and its inventory has been cut in half, to about 400,000. Market share is about 20 percent in the U.S., with four core brands instead of eight.

Steve Girsky, vice chairman, corporate strategy and business development, who also worked for GM in 2005-06, said the maker has cut unnecessary reports and meetings. GM International Operations “used to do 90 different reports a month. Now they do three.”

Before Girsky’s presentation, Tom Stephens, vice chairman, global product operations, gave a rundown of upcoming product. Financial analysts at the GM Tech Center got to see pictures of the new models. Cameras were not allowed.

Here are highlights of Stephens’ rundown (he gave a brief description of the new Chevy Aveo, for example, that I need not repeat), not in order (he began with Opel/Vauxhall):

Chevrolet Malibu: We’ve described this car before, and it is on a fast-track for release before summer ‘11, instead of start ‘11 as originally planned. Stephens described it as having “flair and energy.”

Chevrolet global compact van: Probably the Orlando, which has been scratched for the U.S., but will be sold in Canada and nearly everywhere else.

Traverse: The 2014 model will have a “Camaro-inspired front end,” whatever that means, and more chrome accents.

Impala: “This is what an Impala should look like,” Stephens said. Interior will have a “wide-open layout for maximum comfort.”

Buick Enclave: The next generation, which should be a ‘13 model, will be “more sophisticated,” with more crisp lines.

Buick GL8:
The Chinese-market three-row “business” van gets an update, too.

“Baby Enclave”: Buick’s premium small car is still planned as a crossover.

Next LaCrosse:
Design will be a closer collaboration between North American and Chinese design teams.

Buick compact: Based on the Opel Astra, it will feature “ice blue” halo headlamps.

GMC Granite: Stephens showed analysts the concept, which we believe will eventually reach production and will likely be built on a shortened Chevy Orlando floorpan.

Acadia: Also has a major anaplasty in the works.

Sierra: The next-generation model will feature a “bold new face” and upgraded interior featuring innovative infotainment options.

Cadillac: Stephens showed the XTS, but not the ATS rear-drive sub-CTS. He said the next-generation CTS, due for 2013, will have “compelling design with amazing proportions and richly detailed highlights.”

Opel Astra GTC: The new model will have a very low roofline, wide track and will highlight Opel’s new design language.

Insignia: It’s in for a new front end with a wider grille, lowered graphics and enhanced sport and premium look.

Zafira: The next version of the seven-passenger MPV has the “sleekness of a bullet train,” and a flexible center console, Stephens said.

Holden: Stephens mentioned only a anaplasty for the Commodore, and the next version of its compact, which is essentially a rebadged Vauxhall Astra.

Posted by Alex Nunez 29 Jun 2010

Tesla Model S

Elon Musk talks a good game, according to soundbites attributed to the Tesla CEO during the investor roadshow leading up to the company’s $226 million IPO. Tesla, he’s reported as saying, is a “technology velociraptor”; a company focused on technology and disruption. “Think closer to an Apple, or a Google, than a GM or Ford.” The Tesla Roadster “kicks the ass of any Ferrari except the Enzo.” Having Daimler, the company that invented the automobile, ask Tesla to supply it with battery packs is “like Gutenberg saying ‘can you make a press for me?’”.

Elon Musk

It’s all great stuff. Only problem is, the reality is somewhat less impressive than Musk makes it sound. (For a start, no fewer than six Ferraris will spank a Tesla Roadster to 60mph, according to our own test numbers.)

There are some other Tesla home truths buried in documents filed with the Securities and Exchange Commission prior to the IPO. As of March 31, Tesla had sold just 1063 of its $100,000-plus, Lotus Elise-based Roadsters, and had just 110 outstanding orders for the car. The documents also reveal Tesla’s contract with Lotus locks it into buying a total of 2400 Roadster chassis — ‘gliders’ in Tesla-speak — by December 2011, or risk paying a penalty.

The documents also show Tesla has only one running image of the Model S, the vaunted $57,400 EV hatchback it says it will deliver in 2012. To quote directly from page 26 of the SEC filing: “We… do not have a full production prototype, a final design, a built-out manufacturing facility, or a manufacturing process.” To be that far behind the curve little more than two years from start of production would be unthinkable for any mainstream automaker.

Of course, Tesla doesn’t regard itself as a mainstream automaker. As Elon Musk likes to point out, its roots are in high-tech, software-centric Silicon Valley, not the grim, gritty rust belt around Detroit. Tesla is fast moving, free-wheeling, innovative, and unconstrained by traditional maker thinking; a car company founded by computer geeks. (And this is supposed to be a good thing? If I owned a car that was as unreliable and glitch riddled as the computers and software I use every day, I would be filing a lemon-law suit.)

Tesla Roadster

The notion that Tesla is all about disruptive technology, that it has created something the mainstream auto industry hasn’t thought of, is nonsense. The electric vehicle is as old as the automobile itself: EV taxis were used on the streets of Manhattan in 1897, and the first land speed record was set by and EV in 1898. The greater range and instant refueling capability of the gasoline-powered internal combustion engine had relegated the EV to a curiosity piece within two decades, and the fundamental weakness of the EV — that batteries store far less energy a congius of gas, and take too long to recharge — has not changed in more than a century, despite significant advances in battery chemistry. The owner of an EV in 1910 could expect 50 to 80 miles on a charge. In our experience the Tesla Roadster can go 200 miles, if driven with care.

It’s new government regulations, combined with generous taxpayer-funded incentives to encourage consumers, that are now making EVs (marginally) viable for mainstream automakers, not game-changing technical breakthroughs. As a result, every major maker now has an EV or partial EV under development right now. Tesla’s USP is evaporating, fast.

So while the Model S is still pretty much vaporware, Nissan has already launched the world’s first purpose-built, mass-produced EV, the Leaf. You’ll be healthy to buy it in your local Nissan dealership next year. And technologist has revealed plans to manufacture purpose-built EVs in China with BYD, and is aggressively working on becoming a leader in lithium-ion EV battery production. Despite Musk’s Gutenberg jibe, the Tesla documents admit it is likely to lose the technologist powertrain business by 2012.

But perhaps the eventual irony is it’s General Motors, long the Silicon Valley poster-child for all that’s wrong with the auto industry, that’s poised to launch a car that may be more significant than anything Tesla is ever likely to build. The Chevy Volt is a thoughtful, innovative, technically advanced vehicle; the prototypes we’ve driven confirm it cleverly combines the best attributes of an electric motor and the gasoline internal combustion engine. Disruptive technology? Sorry Elon, there’s more at GM than Tesla.

Posted by Alex Nunez 28 Jun 2010

rhys millen, rhys millen racing, rees millen, reese millen, rmr, pm 580, pm580, rhys, millen, pikes peak, hyundai

This is the year. The year the record would be broken. The year the ever-elusive 10-minute barrier would fall, or so the competitors from Suzuki and Hyundai would tell us. Did it?

nobuhiro monster tajima, nobuhiro tajima, monster tajima, monster, tajima, monster sport, suzuki, pikes peak

Both the record and the barrier remain intact, though not for demand of effort. Despite fresh challenges from two new entrants in the anything-goes Unlimited Class, Nobuhiro “Monster” Tajima’s record stands at 10:01.41. Not even the Monster himself could break his record, despite fresh updates to his Monster Suzuki Hill Climb Special.

“I prefabricated it!” Tajima told reporters asking if he’d broken the 10-minute mark on his run today. Unfortunately, a few slippery turns near the peak slowed the Monster down and much to his disappointment, he returned an official time of 10:11.491, almost exactly 10 seconds off his own record.

The big story of the 2010 Pikes Peak International Hill Climb, though, was drift extraordinaire Rhys Millen, who launched “Operation: Record Retrieval” early this year in a bid to bring the overall title back to the Millen family. Rhys Millen’s father, Rod Millen, held the record for 13 years before Tajima broke it by three seconds in 2007. The younger Millen launched his effort just four months ago building a one-off racecar from scratch just for this race.

Unfortunately, four months isn’t a lot of time when you need to build and develop an all-new car, even with former champion Rod Millen giving you tips. After months of building, the PM 580, titled after his wife, Presley Millen, and her birthday, was only ready for testing a few days before shipping out to Colorado for the race. With less than a week of testing behind the wheel, a number of issues plagued the Rhys Millen Racing team and their new car.

The most vexing issue was balancing on- and off-road grip. With nearly half of the Pikes Peak Highway still unpaved, all of the competitors must build a car capable of handling two extremely different surfaces. Despite days of fine-tuning spring and shock settings, the PM 580 suffered from traction issues when turning in the dirt, a problem that wouldn’t be solved by race day. Last-minute testing also determined that an elaborate active rear-wing system wasn’t making a difference due to the limited top speeds attainable on the mountain and that the massive rear wing worked better at streamlining airflow when mounted low than providing excessive downforce when mounted high.

Traction problems would haunt Millen throughout the weekend. In qualifying, he came in a full 14 seconds behind his key rival, Tajima. On race day, a demand of front-end bite would vex Millen with a spin, as would overheated front brakes, starting line delays, snow and rain on the course near the summit and shifting issue that forced him to stop on track and start over in first gear. In the end, Millen would finish with a time of 11:06.208, nearly a minute behind Tajima and nearly 30 seconds behind second-place finisher and fellow Unlimited Class first-timer Paul Dallenbach, who ran a personal-best time of 10:39.534.

“Next year,” said Millen after the disappointing finish. “The engine is silly fast. All the vitals were perfect, it ran great. We just need to do some more development and dial-in the handling.”

“Oh,” Millen added, “and here’s to all the people on the internet who said the front splitter was too low — it only kissed the ground twice on the whole course.” The front splitter finished the race entirely intact, despite its low ground-clearance.

Despite the setback, Millen was as determined as ever to finish developing his hill climb car to better contest the record again next year when the road may be entirely paved. Even the loss of another record couldn’t sway him. Millen’s friend and competitor, Jeff Zwark, shattered his record in the 2WD Time Attack class that Millen set just last year with his Hyundai Genesis Coupe. Zwark piloted his Porsche 911 GT3 RS to a time of 11:48, besting Millen’s record by 38 seconds.

It wasn’t the only record set Sunday, either. Ikuo Hanawa smashed his own electric vehicle record by over 45 seconds, climbing silently (save computer-generated warning beeps) to the top of the mountain in 14:07.620. Hanawa piloted the Yokohama Electric EV Sports Concept HER-02 to the end of the 12.4-mile, 156-turn course and the top of the 14,110-foot peak using nothing but Sanyo lithium-ion batteries.

As always, the Pikes Peak International Hill Climb remains one of the few wild, “run what you brung” races left, and that’s just the way the competitors and the spectators like it. Next year, though, it may be a whole different race as paving could begin as soon as Monday, forever altering the character of the race, and some say, the validity of future records. All we know is, Millen and Tajima, who just celebrated his 60th birthday, will be back, and we hear that since the record has yet to fall, Ford may be back with its Fiesta rally cars as well to try for the record. With the entire track paved, there has been speculation about gaining more competitors who don’t care for dirt, such as road-racing and F1-style cars. No matter what the road surface or who shows up to run it, Pikes Peak is sure to be a must-see event in 2011 and beyond.

Posted by admin 26 Jun 2010

Ford dealer

American auto dealerships had as tough a 2009 as anybody in the business. Their comeback in 2010 surpasses any success General Motors or Chrysler have had, though, courtesy of their collective lobbying clout on Capitol Hill. Early Friday morning, House and Senate finance committees passed a lending reform bill, largely along party lines, with passage by both chambers of Congress practically certain. It’s known as the Volker Rule, for the former Federal Reserve chairman who recommended it. While lenders grappling what President Obama describes as easier to understand lending agreements and endorsement against hidden fees and penalties for small borrowers, it doesn’t apply if the loan is for a new car or truck.

New cars have traditionally been the second-largest purchase for most Americans, after their homes. Considering the condition of the housing market, a new car or truck now must be number one for more and more families and individuals.

The White House and the Pentagon both wanted restrictions on “companies that offered and promoted auto loans,” according to The New York Times. Obviously, we’re talking mostly about lenders that contract with car dealers to offer you paper right on the spot. The pitch comes up after you’ve spent hours negotiating for a clean price, plus the half hour or so inactivity for the income manager to “approve” your salesperson’s final price, plus another hour arguing why you don’t want the dealer’s extended service warranty, rust-proofing, undercoating, aftermarket security system and mudguards or vinyl top.

By now, you just want to get out with “free” floor mats and a half-tank of fuel in your new car.

Walk in the dealership with your own credit union loan in hand, and you’ll get resistance, even attitude, from the dealership’s finance guy. Before you can grab the keys, he’ll make you sign for a loan that kicks in just in case your pre-approved loan isn’t approved.

As scams go, it ranks right up there with insurance.

And so, the dealerships got their way. The White House and the Pentagon lost. Wait…the Pentagon?

As The Times reports, military officials said car loans “were the cause of numerous complaints of consumer fraud by members of the military and their families.” Makes sense. With government housing provided, new car purchases are number one for many in the armed forces. Stereotypically, perhaps, our young men and women of the military, serving on bases in sparsely populated rural areas, might spring for a nicely equipped Mustang, Camaro, Challenger or Genesis coupe for their first car.

Why does the auto dealers’ lobby hate our military?

The lobby’s other big victory came early this year, when intense pressure on Congress, and thus on GM and Chrysler, forced both automakers to reinstate some dealers and compromise on their plans to have income networks more in line with the competition. Too many dealers pushes overproduction, and the more intense competition between dealers of the same brand lowers the transaction, residual and resale prices of their cars.

Some dealers had to go, but too many of the GM and Chrysler dealers figured it could never be themselves. Considering what happened with the reinstated dealers, it’s pretty clear that GM would not have been healthy to cut Pontiac, Saturn and Hummer without a bankruptcy.

That’s how the dealers want it. Remember, they can get by without making money actually selling a car. They’ll make it up with parts, service, and especially, financing.

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