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Cars Coming Soon–> New 4Runner, Ford Diesel, Sleek Sonata, and Accord Crossover

Ford's new Scorpion

Ford's new Scorpion

The 2011 Ford F-Series Super Duty has a turbocharged surprise: an all-new 6.7-liter Power Stroke V8 turbocharged diesel engine.

Ahh… it’s even fun to type.

Codenamed “Scorpion,” this new engine is completely Ford-designed and built, meaning Ford will no longer rely on a diesel engine supplier for its Super Duty pickups.

According to Ford’s massive press release on the engine,

the new diesel engine will deliver significant improvements in torque, horsepower and fuel economy while adding more fueling flexibility and easily meeting stringent new emissions requirements.

Stay tuned for more on the next-generation Super Duty as its debut comes closer!

If family hauling is more appealing to you than trailer towing, you might be excited by this: an all-new 4Runner.

According to pictures snapped by Car & Driver, the next-generation 4Runner is going blunt and boxy. The official debut happens on Sept. 24 at the Texas State Fair, but expect an exterior more like the latest Honda Pilot. Surely, more interior volume and more power will accompany the boxy new looks.

honda-accord-crosstourWhile Toyota models after Honda, Honda has been busy trying to one-up Toyota. Its new Venza-fighter, the Honda Accord Crosstour, was revealed this week ahead of its official launch, coming later this Fall.

All-wheel drive and old-fashioned Honda loyalty are in the Crosstour’s favor, but I think its looks could be a deal-breaker for many. Whatever happened to conservative-but-cool Hondas that got great gas mileage? Honda is going further down the ugly path toward Acura with every new debut.

2011_hyundai_sonataHyundai, though, is a company going in the other direction: from mild-styled and boring to super-cool and sleek. As evidence I present the 2011 Hyundai Sonata. Anyone else thinking Hyundai is ending up in the place Honda should be in now?

The new Sonata launches in Korea on Sept. 10 and will arrive in the U.S. sometime in 2010.

Who has the better design right now: Honda or Hyundai?

-tgriffith

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General Motors Selling Cadillac and Chevy to…

GM's new headquarters?

GM's new headquarters?

Here’s a sentence I’d never thought I’d write while covering the auto industry:

The United States government is poised to buy the best assets of failed GM, a sale that will include the Buick, GMC, Chevrolet, and Cadillac brands.

The old General Motors will dissolve in bankruptcy court while a brand new company, owned largely by the United States and Canadian governments, will emerge under the same GM name.

GM CEO Fritz Henderson said on his blog,

We expect the sale to close as soon as possible…and for the new GM to be operational and fully competitive, with an exciting line of new products, a smaller and more focused brand portfolio, and a clear mission to put the customer first in everything we do…. This has been an especially challenging period, and we’ve had to make very difficult decisions to address some of the issues that have plagued our business for decades.

Some of the issues? Pardon me, Mr. Henderson, but perhaps you should address all of the issues that have plagued your business. Putting customers first will make us all feel good for a while, but if there’s not a fundamental change in how you operate the business, we won’t stick around.

Let’s just hope the Obama administration guides you in solving all of GM’s issues… not just the ones that are easy to publicly address.

Heck, I’m sure the readers of this blog would have some great suggestions for change.

Readers: What do you hope GM will do differently in its second life?

-tgriffith





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Green Is the Color of Money

Green MoneyFinally, Ford gets rewarded for staying out of bankruptcy. Today it got a $5.9 billion loan from the Department of Energy to develop more fuel-efficient cars. Nissan got $1.6 billion, and Tesla (yes, Tesla) got $465 million—all coming out of a $25 billion pot to help car companies retool and get green.

GM and Chrysler got nothing, as they were not “financially viable,” per the terms of the loans.

Reportedly, Ford will use its money to “upgrade factories in five Midwest states to produce 13 fuel-efficient vehicles.” Nissan will build a new battery facility and advanced vehicles in Smyrna, Tennessee. Tesla will build electric vehicles (presumably the new Model S, below) and powertrains in Silicon Valley.

2010 Tesla Model SInteresting coincidence: $5.9 billion is the same amount Ford reported losing in its fourth-quarter 2008 report. GM lost that amount in its first quarter of this year. This activity is what the media calls “burning through cash,” and you’ll note that nobody rounds up to $6 billion.

Did these firms deserve it? Should other, smaller firms have gotten a piece of the pie? Give us your opinion, please.

—jgoods





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The Newest Star of Transformers - a Motorcycle?

megan-fox-aprilia-rs125I think Monday morning is a great excuse to look at a picture of Megan Fox and a fast motorcycle.

Transformers: Revenge of the Fallen hasn’t even been released yet, but it’s already famous for two things:

1. GM vehicles acting as Transformers

2. Megan Fox looking sexy

That’s enough to get me to theaters on opening day! And now motorcycle fans will have a reason of their own: An Aprilia RS 125 will be straddled by Miss Fox.

It’s a bike that’s just her size, too… weighing just 280 pounds. And if you like what you see in the movie, you’re in luck, because the Italian bike is headed to the United States at a price of around $5,500. Incredible coincidence, isn’t it? Product placement is an incredible thing.

The only bad news is the Aprilia RS 125 isn’t street-legal, so if you find yourself aching for one, you’d better have access to a track, too.

If you go see Transformers, will it be for the cars, the bike, or the actress?

-tgriffith



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China Gets Hummer; Saab Going to…

The future of Saab if it winds up in Wyoming?

The future of Saab if it winds up in Wyoming?

As General Motors explodes and sends pieces flying all over the world, we’re closely watching where those pieces are landing.

As we mentioned earlier, Hummer flew all the way across the world and landed in China. Saturn landed on Roger Penske’s racetrack. Pontiac was blown to smithereens.

Saab is still up in the air, with suitors in Sweden and New York trying to catch it. A third player has also been rumored to be in the running, but up until now no one knew who they were or where they were from.

Now we know: Contender #3 is an investment firm in Wyoming.

Yes, go ahead and keep laughing; I’ve been chuckling for about an hour. Saab in Wyoming makes Hummer in China seem like a natural fit. Wyoming is the one state the U.S. could probably sell without anyone noticing. If there were a polar opposite of Sweden, Saab’s current home, it would be Wyoming. Sweden has Stockholm and beautiful fjords. Wyoming has Casper and a lot of dirt.

I’d say the odds of Saab arriving in Wyoming are as remote as the state itself, considering the other firms trying for Saab are Sweden’s Koenigsegg, the sports car maker, and an investment firm in New York City.

Of course, we’ll be sure to let you know where Saab ends up, but we’re curious: What do you think the future of Saab holds?

-tgriffith



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Penske Wins Saturn; Castroneves Wins Indy

Helio-Castroneves-and-Roger-PenskeLast month we talked about the possibility of Roger Penske taking control of Saturn and why that made good business sense. Today, he went ahead and did it. Penske Automotive and GM reached an agreement for a price of $100-200 million, said Bloomberg. And let’s not forget: Helio Castroneves, driving a Penske car, won his third Indy 500 three weeks ago. These things are not unconnected.

But the Saturn deal seems to make everybody happy—not only because of Penske’s great background and ability in the automotive world, but because GM will contribute its vehicles to Saturn showrooms for at least two years. After that, according to Penske, “We would expect to have a line up going forward, which would be manufactured by a worldwide partner.” And he hopes these cars will be made in the U.S.A.

Further, he intends to have all 350 dealerships and 13,000 Saturn employees remain, at least for now. More details are in the news release here. That distribution network is what makes Saturn valuable, along with “a passionate customer base,” as Penske put it, that could well be revived.

His most relevant experience has been creating and operating the second-largest U.S. car distributorship group. But racing at Indy is in some ways more demanding than running a car company. It requires not only money and passion but close attention to detail and superb team management skills. If he can run Saturn like he wins races, Roger might even revive the company that GM did its best to kill off.

Tell us what you think are some of Saturn’s “greatest hits”—how about the Sky, the Vue, the Aura—or its biggest bombs?

—jgoods



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Ten Questionable Best Used Car Deals

You know, relying on Kiplinger.com for used car advice is like going to Consumer Reports for info on buying a new car: You get real middle-of-the-road picks from the same folks who evaluate lawn mowers and diets.

infiniti-g35Now, tgriffith is my writing buddy on this blog, but I can’t agree that Kiplinger’s “10 Best Values in Used Cars” represents anything like great cars or great prices. I do agree with him that the 2006 Infiniti G35 sedan (left) is a good car and a good value now ($32K new; around $20K now): It’s well-made, with performance and style. Mr. t is right about the Pontiac Vibe and the Ford 500, too: How did those clunkers get on the list? And there are more.

The 2005 Lexus LS 430’s $57K list price was always a fiction, and the fact that you can get this tank now for half that is merely a reflection of its originally inflated “value.” Same thing with the 2005 Toyota RAV4: At $13K it’s no steal, and it never was a steal. (Who would steal one of these things?)

Worst of all is the 2005 Honda Civic EX sedan, another victim of value bloat: At $18.8K new, your “certified used price” is now $13.3K. You’d have to be a total Honda fanatic to buy one at that price.

Let me put out the proposition that in fact it’s not such a hot time to buy a used car. There’s too much demand for good ones, and dealers rely mostly on their used car margins, as they always have, to move the iron. You can, however, make good deals on new vehicles if you’re willing to take some of the less desirable ones. Both GM and Chrysler are offering incentives of up to $6,000 on select trucks, SUVs, and sedans—the stuff that’s hard to move.

Through June 1, Chrysler will give you $4,000 back on most models, plus $1,000 for “consumer loyalty” if you own a recent Chrysler product, and another grand if you finance through certain credit unions.

2009-chev-tahoe2GM is offering similar deals on select cars, plus 0-percent financing on many. Check GM’s Current Offers website for the cars and deals offered in your area. For example, you can buy the Chevrolet Tahoe (left) at 0 percent with a $3,000 rebate. A Buick Lacrosse will get you $4,500 back. You can probably negotiate much more than that from a dealer in distress. And which one isn’t?

The kicker is, of course, you have to want one of these guzzlers, and you must have faith that GM and Chrysler will be around in some form for service and warranty. With Uncle Sam as Big Daddy, your faith may be rewarded.

Buy new or used these days? Let us have your opinion, please.

—jgoods



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The American (sort of) car company you’ve never heard of

eco-emc3Which car would you rather buy:

  1. A $27,000 made-in-America commuter that gets 60 miles per gallon, or
  2. A $14,000 car that’s identical, but made in China

That’s a question the founders of ECO Motor Company had to address as they discussed bringing their three-wheeled commuter car to production.

ECO Motor Company began as a summer project between CEO David Joner and his son. Eventually design engineers from around the world were brought in and the innovative EMC3 Commuter was born.

Rated at 54 horsepower from its 1.0-liter, three-cylinder engine, the rag-top convertible is officially classified as a motorcycle. In truth, though, it’s a car and built to automobile safety standards that include front airbags, dynamic side impact beams, and reinforced A and B pillars. ECO Motor Company is having crash testing performed on the EMC3 by the same laboratory used by big automakers and the NHTSA.

A base price of $13,995 will get you a manual transmission, convertible top, power windows and locks, air-conditioning, an AM/FM/MP3 player, and those precious front airbags.

eco-emc3-interiorI believe the EMC3 represents the kind of innovative thinking required for the auto industry to succeed. It is very basic transportation with a smart design that uses a regular gas engine and should deliver phenomenal mileage numbers while not compromising safety.

Quality is a natural concern, though… as ECO Motor Company has elected to have their car built in China by Geely, China’s largest privately held automaker. Even so, I think they made the right choice, as the pricetag is affordable, and the warranty is the same as if the car had been built in America: a three-year/36,000-mile bumper-to-bumper warranty and a 100,000-mile powertrain warranty.

Production on the EMC3 has already started, with the first deliveries expected by May of this year.

So what do you think: Are you more apt to buy a $27,000 car made in America or an identical car made in China costing about half that?

-tgriffith



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The Bailout Collapse: Getting Partisan

The Senate, house of political intrigue, punts on the auto bailout bill and here we are, now looking to the White House to solve the industry’s cash flow problems. Imagine what Jon Stewart and Jay Leno will have to say on this tonight. In fact, leave us your comments on that!

As we’ve said before in this blog, there has to be an element (or appearance) of fairness in these matters. Yet we should have learned a long time ago that politics has to do with advantage, not fairness. The Democrats put themselves at a big disadvantage by offering up a bill with so many flaws and so little to enforce a restructuring. Republicans seized the moment by piling on to the UAW which, whatever its past sins, had been the only stakeholder to come to the table.

In a news conference, UAW Chief Ron Gettelfinger “felt the union was being asked to make immediate sacrifices that other ‘stakeholders’—bondholders, executives, retirees, and others—were not. . . . The GOP caucus was insisting that the restructuring had to be done on the back of workers and retirees rather than having all stakeholders come to the table.”

Said Sen. Jim DeMint (R-S.C.), “It sounds like UAW blew up the deal.” Sen. John Ensign (R-Nev.) agreed. Really?

Given the fact that labor cost, as we reported, is only about 10% of vehicle cost, that does seem a mite unfair. Josh Marshall in TPM today thought so too and offered three Republican motives:

“Finally, this issue now goes well beyond the fate of the American automakers. Senate Republicans are following this course for three key reasons—first is payback against a major industrial union; second is payback against states like Michigan and Ohio who have been moving away from the GOP; third is the desire to advantage Japanese auto manufacturers who disproportionately do business in their southern states.”

With all this leveraging for political position and jockeying for power, maybe the best course is bankruptcy after all. Jospeh Stiglitz, Nobel Prize-winner and one of our most insightful economists, has this to say in the Financial Times:

“The debate about whether or not to bail out the Big Three carmakers has been mischaracterised. It has been described as a package to help the undeserving dinosaurs of Detroit. In fact, a plan to bail out the carmakers would benefit shareholders and bondholders as much as anybody else. These are not the people that need help right now. In fact they contributed to the problem.”

The problem was created, says Stiglitz, by the industry’s mismanagement and the financial markets “which failed in their oversight” and allowed the companys’ shortsighted, short-term focus on profits to continue.

“As the bail-outs continue, numbers that once looked huge are starting to seem almost normal. Hundreds of billons are being given to banks and insurance companies. AIG got $150bn. Compared with that $34bn, or even $125bn, for the automotive industry seems a modest request. Even so, we should not forget that a few months ago, President George W. Bush said there was not enough money for health insurance for poor children although it cost just a few billion dollars.”

If Stiglitz is right, then a prepackaged bankruptcy finally may be the best and only real option. I urge you to read the article.

Let us know how badly you think the government has fumbled this bailout question. Is Stiglitz right?

–jgoods



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