The Truth About Cars » Enthusiasm http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 29 Sep 2014 16:40:05 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Enthusiasm http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/enthusiasm/ Goldman Sachs: Tesla Needs $6B In Capital To Meet “Disruptive” Growth http://www.thetruthaboutcars.com/2014/09/goldman-sachs-tesla-needs-6b-capital-meet-disruptive-growth/ http://www.thetruthaboutcars.com/2014/09/goldman-sachs-tesla-needs-6b-capital-meet-disruptive-growth/#comments Thu, 25 Sep 2014 10:00:40 +0000 http://www.thetruthaboutcars.com/?p=918314 According to the financial overlords of Goldman Sachs, Tesla would need an $6 billion in capital within the next 11 years should its products become truly disruptive to the automotive industry. Per Bloomberg, Goldman Sachs analyst Patrick Archambault delivered that number to his employer’s clients Wednesday, based on what he believes would be needed should […]

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Tesla HQ

According to the financial overlords of Goldman Sachs, Tesla would need an $6 billion in capital within the next 11 years should its products become truly disruptive to the automotive industry.

Per Bloomberg, Goldman Sachs analyst Patrick Archambault delivered that number to his employer’s clients Wednesday, based on what he believes would be needed should Tesla’s electric lineup prove as popular as the iPhone 6 or Model T. The proclamation knocked the automaker’s shares down 1.7 percent to $259.32 on the trading floor in New York at the final bell.

Though Tesla CEO Elon Musk plans to sell a minimum of 500,000 units per year down the road, Archambault claims the capital needed would push annual production from 1.8 million to 3.2 million units by 2025. Other projects, such as the upcoming Gigafactory battery pack plant in Reno, Nev., would also need some of the projected $6 billion in additional capital. He adds that most of the $6 billion would be distributed from 2017 through 2025.

Meanwhile, Tesla has not given its own forecast for capital spending, according to representative Simon Sproule.

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Future Of Auto Industry Linked To Silicon Valley http://www.thetruthaboutcars.com/2014/09/future-auto-industry-linked-silicon-valley/ http://www.thetruthaboutcars.com/2014/09/future-auto-industry-linked-silicon-valley/#comments Wed, 24 Sep 2014 14:00:22 +0000 http://www.thetruthaboutcars.com/?p=917650 As companies like Google, Tesla and Uber seek to reshape the auto industry in their own ways, more automakers and suppliers are beating a path toward Silicon Valley and the Center for Automotive Research Stanford to help adapt to the new reality. Ward’s Auto recently sat down with CARS director Sven Beiker, who once worked […]

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Silicon Valley around San Jose

As companies like Google, Tesla and Uber seek to reshape the auto industry in their own ways, more automakers and suppliers are beating a path toward Silicon Valley and the Center for Automotive Research Stanford to help adapt to the new reality.

Ward’s Auto recently sat down with CARS director Sven Beiker, who once worked for BMW as one of the first industry observers sent to report on developments in Silicon Valley’s growing tech culture. From there, he relocated to Detroit for a couple of years to participate in a hybrid project with General Motors and DaimlerChrysler before joining Stanford in 2008.

Regarding his work since then, Beiker states that unlike other automotive industry think tanks that receive funding from federal grants, CARS relies on private funding from more than two dozen sustaining supporters, including Ford, Toyota, Delphi and Panasonic. Further, the supporters develop potential technologies with the center, with access to the university’s Dynamic Design, Interactive Media and Stanford AI Lab to help develop their ideas.

Stanford itself also has been pushing development of automotive technology, such as autonomous vehicles — a long-term project dating back to the first U.S. Department of Defense-sponsored DARPA Challenge in 2005 — electric-vehicle charging and advance batteries, and future business models for the industry as a whole.

When asked if Silicon Valley’s cadre of venture capitalists wanted to invest in a new car company, Beiker stated they were more interested in the next Uber than the next Tesla, going so far as to claim the VCs likely don’t want their home to become a new automotive industry mecca. That may be easier said than hoped, as both automakers and suppliers establish a presence alongside the game-changers in the valley.

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Ian James Corlett’s ElectroPorsche: From Beater To Electrifying Showstopper http://www.thetruthaboutcars.com/2014/09/ian-james-corletts-electroporsche-from-beater-to-electrifying-showstopper/ http://www.thetruthaboutcars.com/2014/09/ian-james-corletts-electroporsche-from-beater-to-electrifying-showstopper/#comments Sat, 20 Sep 2014 13:00:04 +0000 http://www.thetruthaboutcars.com/?p=909898 [AUTHOR'S NOTE: This story is one I've been pursuing since a couple of days before returning to TTAC on the back of the Bumpasaurus Rex last October. As today is my 36th birthday, this is my gift to you, dearest B&B. - CA] Meet Ian James Corlett and his 1966 Porsche 912. Corlett calls Vancouver, […]

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1966 Porsche 912 EV 16

[AUTHOR'S NOTE: This story is one I've been pursuing since a couple of days before returning to TTAC on the back of the Bumpasaurus Rex last October. As today is my 36th birthday, this is my gift to you, dearest B&B. - CA]

Meet Ian James Corlett and his 1966 Porsche 912. Corlett calls Vancouver, B.C. his home, where he works in the entertainment industry as a voice actor, director, producer, author and musician; his son and daughter, Phillip and Claire, also work in the industry as voice actors in their own right.

As for his 912, it may appear to be no more than a beautifully restored vintage Porsche, but as you’ll soon discover, there’s more than meets the eye with this particular sports car.

All photos provided by Ian James Corlett, Brendan McAleer and Wikipedia.

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“I didn’t start with the notion of electrifying a Porsche,” said Corlett. “I was gonna do an old VW Beetle, mostly because I love Beetles, and it was one of the first cars I ever had. But the electric kits and the conversions were relatively available, and lots of people had done them. So, I thought, ‘Well, that’s good, because the geometry works and it’s easy to bolt in an electric motor onto the existing transmission. So, that’s what I’ll do!’”

Corlett’s interest in all things electric began years ago during one of his “reverse midlife crisis” phases, when he happened upon a Vespa scooter whose engine lived up to its Italian heritage. Preferring to ride over working on the Vespa during the few sunny days Vancouver received in a given year, he turned to a since-defunct scooter shop in Seattle for help. There, Corlett obtained a 10-inch hub motor and custom components for the Vespa, then made the switch to electric power back home.

Another reason for going electric: To escape the leasing cycle, and to reconnect with the idea of ownership. Corlett grew up interested in European and Japanese vehicles, finding U.S.-made models of the 1970s and 1980s too big, heavy and brutal to his liking. His first cars included the aforementioned Beetle, his mother’s 1969 Datsun, a Honda Accord — his first new car — two Volkswagen Cabriolets with a Jetta in between, and ultimately, the first of many Porsche 911s.

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Though he owned his vehicles through his first 911 — a 1994 993 model — outright, the leasing bug would soon sting him and his wallet:

Somebody introduced me to this wizard of leasing, and they said, ‘No. Actually, people just don’t realize that leasing is all about the differential between what a car is going to be worth in a couple of years, and what you paid for it. You’re only really paying for that difference.’

With the then-low depreciation rates of Porsche’s offering in mind, and the leasing guru’s flexibility in setting up the contract, Corlett found leasing was less expensive than regular car payments at the time. However, the first lease was like “the drug dealer offering [a new customer] the first one for free,” with the second and third leases as easy as the first.

Alas, the rates would soon climb, Porsche began expanding its lineup, and residual values were falling hard. After the sixth 911, Corlett was quitting leasing for good, preferring to own his cars again, as well as use the money that would have gone into a new lease toward his children’s private school tuition and other fiscal responsibilities.

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Though his search began with numerous old Beetles, Corlett took to the idea of converting a 912 to electric power after his attempt to buy a converted 912 from an aerospace engineer in the Phoenix area on eBay ended with a last-second loss to a higher bidder; converting a 911 of similar vintage was a bridge too far in his mind. This new journey would end outside of the desert city, where Corlett snagged a 1966 beater with rust galore — thanks to its previous life outside of Arizona — instead of a hoped-for “very dry, desert car.”

“It was really a two-step process,” he explained. “We needed to restore the car, and then fit it and measure it for the electric components.”

The restoration proved to be daunting for Corlett’s electric dream. Opting to perform both steps in Phoenix — the labor costs were lower than in Canada — he left the 912 with a restorer who turned out to be as nightmarish as the vehicle itself upon media-blasting by the following restorer, Arizona Street Customs, months later.

The project ultimately took three years, though Corlett admitted that “it shouldn’t have taken three years,” citing a change in focus toward a move to a new house in Vancouver, as well as project-related issues:

One of the huge delays, as an example, was the batteries. We ordered $15,000 worth of batteries, and they had to come from China. We just made a wrong choice on who the supplier was. That was eight months of waiting, because the guy would sell large amounts of batteries in containers. He waited for a container to be full before he would fulfill his order from China and ship to the U.S. That’s just big, long delay for no good reason.

1966 Porsche 912 EV 15

Since coming home to Vancouver late last year, the 912 has been making the rounds at events throughout the area, such as the Luxury Supercar Weekend at VanDusen Botanical Garden, and the Key West Ford Shine & Show in New Westminster, B.C., where Corlett took home trophies in the best special interest and unfinished categories. He says he enjoys being able to take part in any event that allows him to show off his masterpiece in the brief window of sunny days between June and October.

The reaction to such a conversion? “I have had nothing but jaw-drops and great comments,” he proclaimed. “Now, that’s to my face. I’m sure there are people that feel differently. I’ve been really surprised by some of the Porsche people — and I know a lot of them in town — some of them that are just hardcore, real Porsche fanatics.”

One in particular, his mechanic — a “very abrasive guy of German heritage” who’s “not too fond of electric cars, period” — enthusiastically approved of the 912 during a shakedown following a suspension adjustment, allaying Corlett’s fears of taking a classic Porsche and transforming it into a vintage EV. Nonetheless, he’s very happy with the overall response his car is receiving.

1966 Porsche 912 EV 17

Registration and insurance for a unique vehicle like this was easier to obtain than one might imagine. The most difficult part was importation from the U.S. to Canada, though this was waved away by declaring the 912 as just a restored vintage vehicle. Once at home, registration was simply a matter of switching the “G” — for gasoline — to “E” — for electric — on the paperwork.

Finally, though the 912 has standard insurance at present, it may soon have coverage better suited for its unique features, which would provide the benefit of being insured and appraised properly.

Range testing is ongoing as far as long drives are concerned, having gone as far south as Corlett’s P.O. Box in nearby Blaine, Wash., as well some handling issues that need to be resolved before taking it 9/10ths. In the meantime, he switches between the 912 and his 2011 BMW 135i, the latter his daily driver. His reasoning for the BMW is the same as the 911s before: the ability to go from the school and the studio during the week, to the track during the weekends when not piloting or showing the 912 EV.

As far as future electrification is concerned, an experience with the Tesla Model S has Corlett thinking of an EV suitable for his family’s needs. As the premium sedan is too large, he says the Kia Soul EV will likely fulfill the role, if only because the Mercedes B-Class Electric Drive won’t be in Canada anytime soon.

By the way, he still has the electric Vespa, and he aims to have both it and the 912 out on the road to praise the sun next year.

OLYMPUS DIGITAL CAMERA 1966 Porsche 912 EV 02 1966 Porsche 912 EV 03 1966 Porsche 912 EV 04 1966 Porsche 912 EV 05 1966 Porsche 912 EV 06 1966 Porsche 912 EV 07 1966 Porsche 912 EV 08 1966 Porsche 912 EV 09 1966 Porsche 912 EV 10 1966 Porsche 912 EV 11 1966 Porsche 912 EV 12 1966 Porsche 912 EV 13 1966 Porsche 912 EV 14 1966 Porsche 912 EV 15 1966 Porsche 912 EV 16 1966 Porsche 912 EV 17 1966 Porsche 912 EV 18 1966 Porsche 912 EV 20 1966 Porsche 912 EV 21 1966 Porsche 912 EV 22 1966 Porsche 912 EV 23 1966 Porsche 912 EV Spec Sheet

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2015 Challenger SRT Hellcat Delivers EPA-Rated 22 MPG Highway http://www.thetruthaboutcars.com/2014/09/2015-challenger-srt-hellcat-delivers-epa-rated-22-mpg-highway/ http://www.thetruthaboutcars.com/2014/09/2015-challenger-srt-hellcat-delivers-epa-rated-22-mpg-highway/#comments Thu, 18 Sep 2014 10:00:18 +0000 http://www.thetruthaboutcars.com/?p=914234 Most customers purchasing a 2015 Dodge Challenger SRT Hellcat aren’t likely considering fuel economy as a reason for wanting one of the most brutal machines ever assembled. That said, the pony car is fairly efficient on the highway in comparison to more exotic fare. The lieutenant to the Charger Hellcat’s general, the Challenger Hellcat delivers […]

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2015 Dodge Challenger SRT with the HEMI® Hellcat

Most customers purchasing a 2015 Dodge Challenger SRT Hellcat aren’t likely considering fuel economy as a reason for wanting one of the most brutal machines ever assembled. That said, the pony car is fairly efficient on the highway in comparison to more exotic fare.

The lieutenant to the Charger Hellcat’s general, the Challenger Hellcat delivers an EPA rating of 22 highway via its eight-speed TorqueFlite automatic, losing only a single mpg for those who opt to row their own boats through a six-speed manual. Chrysler notes the highest rating comes from the auto’s 7.03 gear ratio spread, allowing the elephant to be that efficient on the highway more often.

In comparison, exotic beasts like the Lamborghini Aventador Roadster, Aston Martin Vanquish and Mercedes-Benz SLS AMG GT deliver similar amounts of firepower to the battlefield, but only manage to put out 18 mpg to 19 mpg in so doing.

Furthermore, unlike the six-figure price tags for said exotics — of which only the Aventador comes closest in matching horsepower with the supercharged 6.2-liter HEMI Hellcat, the others falling just under 600 horses — the Challenger comes in at just under $60,000. Not a bad place to be, one would suppose.

Figures for city and combined mpg were not announced as of this writing.

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Toyota Tundra Goes Pro, Loses V6 Entirely For 2015 http://www.thetruthaboutcars.com/2014/09/toyota-tundra-goes-pro-loses-v6-entirely-2015/ http://www.thetruthaboutcars.com/2014/09/toyota-tundra-goes-pro-loses-v6-entirely-2015/#comments Tue, 16 Sep 2014 13:00:08 +0000 http://www.thetruthaboutcars.com/?p=913218 After its makeover for the 2014 model year, the 2015 Toyota Tundra has gained a few more tricks up its sleeve, beginning by going all in on V8 firepower and losing the V6 due to the latter’s take rate of less than 5 percent. Under the bonnet awaits two potential powerplants for Tundra owners: the […]

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2015_Toyota_TRDPro_Tundra_007

After its makeover for the 2014 model year, the 2015 Toyota Tundra has gained a few more tricks up its sleeve, beginning by going all in on V8 firepower and losing the V6 due to the latter’s take rate of less than 5 percent.

Under the bonnet awaits two potential powerplants for Tundra owners: the 4.6-liter i-Force V8 delivering 310 horsepower and 327 lb-ft of torque, and the 5.7-liter i-Force V8 offering 381 horses and 401 lb-ft of torque; the latter can be had as either gasoline-only or in Flex Fuel configuration. The power is delivered through a six-speed electronic automatic to either rear or all four wheels.

Towing capacity is 10,500 pounds in 4×2 regular-cab configuration, and is compliant with SAE J2807. Additionally, trailer control is made easier through the Tundra’s Trailer Sway Control, part of the truck’s overall vehicle stability system.

Those wanting to live out their Ivan “Ironman” Stewart fantasies can do so through the new-for-2015 TRD Pro package, which brings the 5.7-liter V8 together with 18-inch black alloys wearing exclusive Michelin off-road rubber, dual exhaust, skid plate and upgraded suspension components.

Other features available for 2015 include: spray-in bed liner, rear under-seat tray storage in double cab models, standard backup camera with blind-spot and rear cross-traffic monitoring systems, and the Entune infotainment system.

Pricing for the 2015 Tundra starts at $29,020 MSRP for the base SR 4×2 regular cab model, while no word has been said thus far regarding the TRD Pro model. That said, PickupTrucks.com has published a price list for the majority of the models on sale for the 2015 model year.

2015 Toyota Tundra MSRP Price Sheet

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Mercedes Increases Production To Meet US CLA Demand http://www.thetruthaboutcars.com/2014/09/mercedes-increases-production-to-meet-us-cla-demand/ http://www.thetruthaboutcars.com/2014/09/mercedes-increases-production-to-meet-us-cla-demand/#comments Tue, 16 Sep 2014 12:00:20 +0000 http://www.thetruthaboutcars.com/?p=913194 [AUTHOR'S NOTE: I erroneously reported production would be increased at MBUSI in Vance, Ala. alongside the Hungary facility. That's what I get for reading the dateline and interpreting things as such. My apologies. -- CA] With demand still strong and supply still tight months later, Mercedes-Benz is pumping up production capacity to bring more CLAs […]

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2014 Mercedes-Benz CLA 250

[AUTHOR'S NOTE: I erroneously reported production would be increased at MBUSI in Vance, Ala. alongside the Hungary facility. That's what I get for reading the dateline and interpreting things as such. My apologies. -- CA]

With demand still strong and supply still tight months later, Mercedes-Benz is pumping up production capacity to bring more CLAs to showrooms in the United States.

Automotive News reports 14,113 copies of the $30,825 entry-level premium sedan were sold in the United States during the last four months of 2013, with the most sold overall in October at 4,895 units. Additionally, 15,676 CLAs left the showroom floor from January through August of this year.

Thus, the facility in Kecskement, Hungary that produces the CLA added a third shift in May to help meet demand the world over, having made a total of 109,266 in 2013 alone. The plant will also host production of a CLA shooting brake, a vehicle Mercedes has “no current plans” to bring over to the U.S., according to a representative.

As for how many CLAs will be leaving Vance, Daimler AG CEO Dieter Zetsche didn’t specify, though he did expect “a positive reaction” to the boost in production.

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2015 HSV GTS Maloo Ute Officially Unveiled http://www.thetruthaboutcars.com/2014/09/2015-hsv-gts-maloo-ute-officially-unveiled/ http://www.thetruthaboutcars.com/2014/09/2015-hsv-gts-maloo-ute-officially-unveiled/#comments Tue, 16 Sep 2014 11:00:40 +0000 http://www.thetruthaboutcars.com/?p=913090 Last month, Holden Special Vehicles announced plans for the most brutal ute to ever be assembled as a send-off to the Holden Commodore Ute before all local production draws to a close in 2017. This is that ute: The 2015 HSV GTS Maloo. The limited edition ute pulls from the same parts bin used to […]

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hsv-gts-maloo2-1

Last month, Holden Special Vehicles announced plans for the most brutal ute to ever be assembled as a send-off to the Holden Commodore Ute before all local production draws to a close in 2017.

This is that ute: The 2015 HSV GTS Maloo.

The limited edition ute pulls from the same parts bin used to create the equally limited and powerful GTS Sedan, based upon the Commodore sedan. This includes the 6.2-liter supercharged LSA V8 — capable of dropping 577 horsepower and a near-equal 546 lb-ft of tree-removing torque out behind the bed — lightweight six-piston calipers mounted to 15- and 14-inch two-piece rotors, and torque vectoring. Power will be directed to the rear 20-inch wheels through a TR6060 (MG9 spec) six-speed twin-clutch manual or optional 6L90E six-speed auto.

At the ready inside, the owner can adjust the GTS Maloo’s electronic stability, torque vectoring, launch control and more through the HSV Driver Preference Dial, while HUD, lane-departure and performance systems provide the driver with the data and safety they might need.

Two colors — a bronze/red and an iridescent olive green — and two leather trims — dubbed Onyx and Red Hot, respectively — round out the looks in addition to the GTS’s aggressive face.

Only 250 will be built — 10 of which are heading over to nearby New Zealand — with production and availability due by November of this year. Price of admission will likely be around $79,000 USD.

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Tesla Model X Has 20,000 Reservations, More To Come http://www.thetruthaboutcars.com/2014/09/tesla-model-x-20000-reservations-come/ http://www.thetruthaboutcars.com/2014/09/tesla-model-x-20000-reservations-come/#comments Fri, 12 Sep 2014 11:00:13 +0000 http://www.thetruthaboutcars.com/?p=911057 Despite attempts to discourage would-be owners from reserving a copy of the upcoming Model X, Tesla has some 20,000 customers on its waiting list for the gullwinged SUEV. Gas 2 reports a total of 20,159 reservations have been made thus far since 2012, 12,000 of which were made through March of this year. Out of […]

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SONY DSC

Despite attempts to discourage would-be owners from reserving a copy of the upcoming Model X, Tesla has some 20,000 customers on its waiting list for the gullwinged SUEV.

Gas 2 reports a total of 20,159 reservations have been made thus far since 2012, 12,000 of which were made through March of this year. Out of those figures, around 14,000 belong to customers in the United States, while Europe and the Asia Pacific hold just 25 percent.

That said, it may be a long wait. The assembly line, currently going through upgrades to assemble 3,000 vehicles per week, must be shared with the Model S. The publication says that if the split were 50/50, it would take Tesla over a year to clear the backlog that could hit 25,000 by the time production begins early next year.

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Kuniskis: Dealers Must Prove Themselves Worthy Of Selling Hellcat Challenger http://www.thetruthaboutcars.com/2014/09/kuniskis-dealers-must-prove-worthy-selling-hellcat-challenger/ http://www.thetruthaboutcars.com/2014/09/kuniskis-dealers-must-prove-worthy-selling-hellcat-challenger/#comments Wed, 10 Sep 2014 13:00:53 +0000 http://www.thetruthaboutcars.com/?p=910074 Dodge dealers wanting to help their customers destroy wannabes with the 2015 Challenger SRT Hellcat will themselves need to prove their worth to the brand before a single car leaves the carrier. Automotive News reports allocations of the 707-horsepower war machine will be based on the total number of all Dodges sold during the past […]

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2015 Dodge Challenger SRT with the HEMI® Hellcat

Dodge dealers wanting to help their customers destroy wannabes with the 2015 Challenger SRT Hellcat will themselves need to prove their worth to the brand before a single car leaves the carrier.

Automotive News reports allocations of the 707-horsepower war machine will be based on the total number of all Dodges sold during the past 180 days, according to brand chief Tim Kuniskis, with a second allocation in December will focus on the previous 90 days of such sales and the traditional 30-day inventory turn.

Further, Dodge will measure how many days each Hellcat remains on the lot after the initial allocation, with the goal of moving them off the lot as quickly as possible if more are to be delivered later on. Kuniskis acknowledges this may be a headache for those who opt to make a market adjustment similar to the one performed at a recent Los Angeles Chevrolet dealership, where a Camaro Z/28 was priced to move at $106,165:

If you want to market-adjust the car, that’s your right. But if your days-on-lot goes above what the other guys that are selling them at MSRP is, they will end up earning the allocation because their days-on-lot will be lower. Some dealers are going to have heartburn with that.

Kuniskis adds that he wants to see each Hellcat out there on the road for all to enjoy instead of sitting in a showroom “with a rope around it” like the Viper, and that his brand “worked hard” to price the beast at an attainable $60,990 with shipping included.

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Volkswagen: Hydrogen Will Struggle Outside of Japan http://www.thetruthaboutcars.com/2014/09/volkswagen-hydrogen-will-struggle-outside-japan/ http://www.thetruthaboutcars.com/2014/09/volkswagen-hydrogen-will-struggle-outside-japan/#comments Tue, 09 Sep 2014 13:00:06 +0000 http://www.thetruthaboutcars.com/?p=909146 While Toyota and the administration of Japan Prime Minister Shinzo Abe are going all in on hydrogen, Volkswagen Group Japan President Shigeru Shoji proclaims FCVs will struggle to make headway elsewhere. According to Bloomberg, Shoji says the government subsidies meant to push Toyota’s Mirai and other FCVs into the marketplace are likely too high for […]

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VW-Up-Japan-December-2012

While Toyota and the administration of Japan Prime Minister Shinzo Abe are going all in on hydrogen, Volkswagen Group Japan President Shigeru Shoji proclaims FCVs will struggle to make headway elsewhere.

According to Bloomberg, Shoji says the government subsidies meant to push Toyota’s Mirai and other FCVs into the marketplace are likely too high for other governments to match. He adds that issues surrounding refueling infrastructure and the handling of hydrogen itself will add to the roadblocks awaiting the technology outside of Japan.

Those comments — echoing sentiments by Tesla CEO Elon Musk and other hydrogen skeptics — aren’t lost on either Toyota or the Abe administration. Company representative Dion Corbett says the subsidies are needed to help get hydrogen off the ground, citing the high cost of developing fuel-cell technology. That said, Dion believes demand will not only be the highest in Japan — where Abe envisions a “hydrogen society” of fuel-cells for homes and businesses as well as cars — but in Germany, California and the U.S. East Coast.

Though Volkswagen has its doubts, VW Japan representative Yasuo Maruta says the company is keeping its eye on Toyota’s efforts, planning to be no more than three years’ behind R&D work in relation to Toyota.

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Pre-Production 2015 Honda Civic Type-R Spotted In Croatia http://www.thetruthaboutcars.com/2014/09/pre-production-2015-honda-civic-type-r-spotted-croatia/ http://www.thetruthaboutcars.com/2014/09/pre-production-2015-honda-civic-type-r-spotted-croatia/#comments Thu, 04 Sep 2014 14:00:26 +0000 http://www.thetruthaboutcars.com/?p=906473 While our European friends are waiting for the next-generation Honda Civic Type-R to arrive next summer, one lucky spotter discovered a pre-production model tackling the switchbacks of Eastern Europe not too long ago. Carscoops reports a friend of theirs sent in two photos of the 2015 Type-R as it was shooting a promo in Rijeka, […]

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While our European friends are waiting for the next-generation Honda Civic Type-R to arrive next summer, one lucky spotter discovered a pre-production model tackling the switchbacks of Eastern Europe not too long ago.

Carscoops reports a friend of theirs sent in two photos of the 2015 Type-R as it was shooting a promo in Rijeka, Croatia, located two hours to the southwest from the nation’s capital, Zagreb.

This particular Type-R — later spotted on a trailer in Slovenia — lacks the concept version’s massive front wheel arches and matching set of front and rear air ducts — as seen at the 2014 Geneva Auto Show — yet maintains the large rear spoiler/LED tail lamp combo.

The Type-R will receive power from a 2-liter VTEC turbo-four punching out 280 horsepower through the front wheels when it begins production next year.

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2016 Mazda MX-5 Miata Unveiled http://www.thetruthaboutcars.com/2014/09/2016-mazda-mx-5-miata-unveiled/ http://www.thetruthaboutcars.com/2014/09/2016-mazda-mx-5-miata-unveiled/#comments Thu, 04 Sep 2014 01:00:43 +0000 http://www.thetruthaboutcars.com/?p=905601 This is it: The 2016 Mazda MX-5 Miata unveiled for all to behold. The fourth-generation MX-5 takes the automaker’s Kodo design language to another level, giving the iconic roadster “the presence of a living creature and a strong sense of vitality to the car,” as well as convey agility. Underneath the bio-mechanical skin, the roadster […]

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This is it: The 2016 Mazda MX-5 Miata unveiled for all to behold.

The fourth-generation MX-5 takes the automaker’s Kodo design language to another level, giving the iconic roadster “the presence of a living creature and a strong sense of vitality to the car,” as well as convey agility.

Underneath the bio-mechanical skin, the roadster distributes its 2280 pounds of weight — 200 pounds lighter than the current MX-5 — 50:50 between the front and rear. Under the bonnet, a Skyactiv-G direct-injection gasoline engine sends its power to the back through either a six-speed manual or automatic transmission.

Part of the weight reduction comes from the use of aluminum forward of the A-pillar as well as the rear bumper reinforcements. Lighter suspension components and soft-top materials contribute to Mazda’s so-called “gram strategy,” also.

Behind the wheel, the automaker’s Mazda Connect next-gen connected-vehicle system “efficiently links the driver to the car and the outside world.” Meanwhile, the soft-top can be operated from within the cockpit, the roadster won’t look awkward like the Nissan Z and Murano CrossCabriolet with the top down, and wind control features will keep your hair or hat from blowing away.

The new MX-5 will go on sale in 2015. No price of admission has been announced at this time.

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Los Angeles Chevrolet Dealer Charging Six-Figures For 2014 Camaro Z/28 http://www.thetruthaboutcars.com/2014/09/los-angeles-chevrolet-dealer-charging-six-figures-2014-camaro-z28/ http://www.thetruthaboutcars.com/2014/09/los-angeles-chevrolet-dealer-charging-six-figures-2014-camaro-z28/#comments Wed, 03 Sep 2014 11:00:57 +0000 http://www.thetruthaboutcars.com/?p=905657 A 2014 Chevrolet Camaro Z/28 would set you back at least $75,000 MSRP were you to head over to your nearest dealership. One Los Angeles dealership, however, is charging a steeper price of admission for the honor of destroying everyone at Willow Springs and Irwindale. Jalopnik subsidiary Car Buying says Felix Chevrolet has a black-on-black […]

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A 2014 Chevrolet Camaro Z/28 would set you back at least $75,000 MSRP were you to head over to your nearest dealership. One Los Angeles dealership, however, is charging a steeper price of admission for the honor of destroying everyone at Willow Springs and Irwindale.

Jalopnik subsidiary Car Buying says Felix Chevrolet has a black-on-black 2014 model for the reasonable price of $106,165, a markup of just over $30,000. Though someone in Beverly Hills — or Justin Bieber — may be more than willing to pay that particular toll, the blog found a dealership 40 minutes away in Santa Ana charging $76,645 for a black-on-black Z/28 on its floor. Since Disneyland is nearby, the lucky owner can used the $30,000 they would have spent in L.A. to buy quite a few passes and souvenirs.

Other dealerships whose prices are in the five-figures include Good Chevrolet near Seattle ($86,150); Schumacher Chevrolet near New York ($74,995); and — with the lowest price of all dealerships in the United States — Lorenzo Bomnin Chevrolet in Miami ($66,999).

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Cadillac Announces ATS-V Sedan Debut At 2014 LA Auto Show http://www.thetruthaboutcars.com/2014/08/cadillac-announces-ats-v-sedan-debut-2014-la-auto-show/ http://www.thetruthaboutcars.com/2014/08/cadillac-announces-ats-v-sedan-debut-2014-la-auto-show/#comments Wed, 27 Aug 2014 11:00:07 +0000 http://www.thetruthaboutcars.com/?p=901473 As if flagship land yachts weren’t enough, Cadillac has gone and announced that the ATS-V sedan will make its world debut at the 2014 Los Angeles Auto Show. The Detroit News reports the sedan’s target is the BMW M3, and is expected to receive its firepower from the CTS V-Sport’s twin-turbo 3.6-liter V6, capable of […]

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2013 Cadillac ATS 3.6 AWD, Exterior, Side 3/4, Picture Courtesy of Alex L. Dykes

As if flagship land yachts weren’t enough, Cadillac has gone and announced that the ATS-V sedan will make its world debut at the 2014 Los Angeles Auto Show.

The Detroit News reports the sedan’s target is the BMW M3, and is expected to receive its firepower from the CTS V-Sport’s twin-turbo 3.6-liter V6, capable of 420 horsepower and 430 lb-ft. of torque in the V-Sport. The engine is mated to a standard eight-speed automatic that may also see duty with the ATS-V.

In addition, Cadillac will unveil the coupe variant of the ATS-V in 2015, as well as bring the CTS-V sedan to the 2015 Detroit Auto Show. The latter will likely have a 600-horsepower version of the Corvette Stingray Z06′s supercharged V8.

Both ATS-Vs and the new CTS-V will arrive in showrooms sometime later in 2015.

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Reuss: Cadillac F-Segment Flagship Is A Go http://www.thetruthaboutcars.com/2014/08/reuss-cadillac-f-segment-flagship-go/ http://www.thetruthaboutcars.com/2014/08/reuss-cadillac-f-segment-flagship-go/#comments Thu, 21 Aug 2014 13:00:34 +0000 http://www.thetruthaboutcars.com/?p=897282 General Motors global product development chief Mark Reuss revealed Tuesday that Cadillac will press ahead with an F-segment sedan built upon a new platform. The Detroit News reports the new Cadillac will slot above the full-size XTS, and will throw down against the Mercedes S-Class and BMW 7 Series. Reuss adds that the flagship sedan […]

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General Motors global product development chief Mark Reuss revealed Tuesday that Cadillac will press ahead with an F-segment sedan built upon a new platform.

The Detroit News reports the new Cadillac will slot above the full-size XTS, and will throw down against the Mercedes S-Class and BMW 7 Series.

Reuss adds that the flagship sedan is important for the brand “if it is to compete as a serious luxury carmaker” in the top luxury segment:

What we do there has got to be a symbol of excellence… This is a car that Cadillac needs that will define this brand in terms of innovation and excellence.

The flagship Cadillac is expected to go into production near the end of 2015, and will likely be joined by a compact slotted below the ATS for the lower end of the luxury segment.

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Infiniti Expanding Lineup 60 Percent Within Five Years http://www.thetruthaboutcars.com/2014/08/infiniti-expanding-lineup-60-percent-within-five-years/ http://www.thetruthaboutcars.com/2014/08/infiniti-expanding-lineup-60-percent-within-five-years/#comments Wed, 20 Aug 2014 10:00:32 +0000 http://www.thetruthaboutcars.com/?p=896738 Though the man who steered Infiniti toward its current Q-bound direction has since left for Cadillac, the premium brand is still on track to expanding its lineup on the way towards becoming a full-time player in the luxury game. Autoblog reports the brand will boost its current offerings by 60 percent within the next five […]

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Though the man who steered Infiniti toward its current Q-bound direction has since left for Cadillac, the premium brand is still on track to expanding its lineup on the way towards becoming a full-time player in the luxury game.

Autoblog reports the brand will boost its current offerings by 60 percent within the next five years, expanding to eight coupes/sedans and five crossovers/SUVs for a total of 13 models. While no specifics were revealed by Infiniti Americas vice president Michael Bartsch at this time, he did proclaim an EV is still on the way, as well as a QX30 crossover based upon the Q30 concept.

Further, Infiniti has plans to beef up its IPL division by distributing the firepower among the range. Currently, only the Q60 coupe and convertible are wearing the IPL badge, though the QX30 could be up next for performance-enhancing.

Until then, the brand is bringing the Q50 and Q50 Hybrid to showrooms, and is collaborating with Daimler AG to build 2-liter turbo-fours that are currently Euro-market only.

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US-Spec Jaguar F-Type Project 7 Unveiled At Pebble Beach http://www.thetruthaboutcars.com/2014/08/us-spec-jaguar-f-type-project-7-unveiled-pebble-beach/ http://www.thetruthaboutcars.com/2014/08/us-spec-jaguar-f-type-project-7-unveiled-pebble-beach/#comments Mon, 18 Aug 2014 12:00:30 +0000 http://www.thetruthaboutcars.com/?p=894002 Unveiled at this weekend’s Pebble Beach Concours d’Elegance, the U.S.-spec Jaguar F-Type Project 7 will make its home in a few garages beginning next spring. Autoblog reports the limited edition roadster — developed by Jaguar Land Rover Special Vehicle Operations — will leave showrooms in 2015 for a base price of $165,000. A tribute to […]

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Unveiled at this weekend’s Pebble Beach Concours d’Elegance, the U.S.-spec Jaguar F-Type Project 7 will make its home in a few garages beginning next spring.

Autoblog reports the limited edition roadster — developed by Jaguar Land Rover Special Vehicle Operations — will leave showrooms in 2015 for a base price of $165,000. A tribute to the D-Type, the Project 7 will have a 5-liter supercharged V8 delivering 575 horsepower to the back, pushing the cat to a limited peak of 186 mph with a nil-to-60 charge out of the gate in 3.8 seconds.

As for what color to paint your roadster, the Project 7 can be had in either Glacier White or Ultra Blue, with British Racing Green, Ultimate Black and Caldera Red as optional colors.

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Report: Hydrogen Gaining Ground On Electricity Within Four Years http://www.thetruthaboutcars.com/2014/08/report-hydrogen-gaining-ground-electricity-within-four-years/ http://www.thetruthaboutcars.com/2014/08/report-hydrogen-gaining-ground-electricity-within-four-years/#comments Mon, 18 Aug 2014 11:00:41 +0000 http://www.thetruthaboutcars.com/?p=893978 Though EVs currently hold the high ground in the zero-emission vehicle market, a new report claims those vehicles will be giving ground to hydrogen in the near future. According to The Detroit News, the Institute of Transportation Studies at the University of California, Davis says a number of factors are coming together to push hydrogen […]

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Though EVs currently hold the high ground in the zero-emission vehicle market, a new report claims those vehicles will be giving ground to hydrogen in the near future.

According to The Detroit News, the Institute of Transportation Studies at the University of California, Davis says a number of factors are coming together to push hydrogen to the forefront over electricity, including: investments in infrastructure; falling R&D costs for both vehicles and station equipment; and major automakers throwing their weight behind fuel cells. UC Davis professor and director of Sustainable Transportation Energy Pathways Joan Ogden explains:

We seem to be tantalizingly close to the beginning of a hydrogen transition. The next three to four years will be critical for determining whether hydrogen vehicles are just a few years behind electric vehicles, rather than decades.

Other factors include natural gas-based hydrogen production, various consumer incentives from federal and local governments, and large investments in R&D. However, Ogden cautions that adoption of hydrogen as a viable source of transportation may take some time due to low confidence in the fuel at the present.

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HSV Unveils Its Last, Fastest-Ever Ute http://www.thetruthaboutcars.com/2014/08/hsv-unveils-last-fastest-ever-v8-interceptor-ute/ http://www.thetruthaboutcars.com/2014/08/hsv-unveils-last-fastest-ever-v8-interceptor-ute/#comments Tue, 12 Aug 2014 12:00:43 +0000 http://www.thetruthaboutcars.com/?p=889305 As a parting gift to the world, Holden is set to built what should be the fastest Ute ever produced, borrowing the LSA V8 from the HSV GTS sedan. Carsguide.com.au reports the ute will receive its power from the 6.2-liter supercharged V8 powering the HSV GTS Sedan, capable of delivering 577 horsepower and 546 ft-lb […]

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As a parting gift to the world, Holden is set to built what should be the fastest Ute ever produced, borrowing the LSA V8 from the HSV GTS sedan.

Carsguide.com.au reports the ute will receive its power from the 6.2-liter supercharged V8 powering the HSV GTS Sedan, capable of delivering 577 horsepower and 546 ft-lb of torque to the back through either a manual or automatic with flappy paddles. Other pieces from the sedan, including a stronger differential and additional engine/transmission cooling systems, will likely make it to the ute.

Suspension and handling, meanwhile, will be retuned pieces from the HSV Maloo over the magnetic-controlled setup found in the GTS Sedan, just in case the lucky owner wanted to haul between 473 kg and 487 kg (1,043 lbs – 1,074 lbs) of hay, depending on transmission chosen.

And we do mean lucky: Only 150 HSV GTS Utes will be assembled, with potential owners paying $85,000 ($79,000 USD) for the honor of driving the fastest ute in the world when it arrives in showrooms at the end of 2014. Though speed is limited to 250 kph (155 mph), the sedan was able to hit 280 kph (174 mph) once the speed limiter was removed.

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Jaguar Lightweight E-Type Prototype To Bow At 2014 Pebble Beach Concours http://www.thetruthaboutcars.com/2014/08/jaguar-lightweight-e-type-prototype-bow-2014-pebble-beach-concours/ http://www.thetruthaboutcars.com/2014/08/jaguar-lightweight-e-type-prototype-bow-2014-pebble-beach-concours/#comments Tue, 12 Aug 2014 10:00:51 +0000 http://www.thetruthaboutcars.com/?p=889217 Should you find yourself at Pebble Beach this weekend for the golf course’s famed Concours d’Elegance, you’ll be able to gaze upon the prototype for Jaguar’s newest skunk works project, the Lightweight E-Type. Autoblog reports the prototype, known as “Car Zero,” will join Jaguar Land Rover Special Operations’ Pebble Beach lineup, posing for all the photos […]

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Should you find yourself at Pebble Beach this weekend for the golf course’s famed Concours d’Elegance, you’ll be able to gaze upon the prototype for Jaguar’s newest skunk works project, the Lightweight E-Type.

Autoblog reports the prototype, known as “Car Zero,” will join Jaguar Land Rover Special Operations’ Pebble Beach lineup, posing for all the photos alongside the Range Rover Sport SVR and F-Type Project 7 during the Concours’ opening reception August 14. Once its promotional activities and testing are complete, the prototype will become a permanent part of the Jaguar Daimler Heritage Trust’s collection.

As reported earlier, the final six Lightweight E-Types are picking up where the series left off in 1964, following the production of the 12th vehicle in the limited edition series. Each of the six will be built-to-order at JLR Special Operations’ Jaguar Heritage workshop, and all will be FIA-certified for historic racing.

The all-aluminum E-Type is driven to anger through a 3.8-liter I6 pushing 300 horsepower and 280 lb-ft of torque to the rear 15-inch wheels through a four-speed manual. Each owner will also be presented with a bespoke matching watch from the Bremont Watch Company, just so they can always know when tea (or tee) time is.

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Japanese Officials Pushing Hard With Subsidies For New Hydrogen Mirai http://www.thetruthaboutcars.com/2014/08/japanese-officials-pushing-hard-subsidies-new-hydrogen-mirai/ http://www.thetruthaboutcars.com/2014/08/japanese-officials-pushing-hard-subsidies-new-hydrogen-mirai/#comments Thu, 07 Aug 2014 11:00:03 +0000 http://www.thetruthaboutcars.com/?p=883545 The 2015 Toyota Mirai may be breaking new ground in the fuel-cell vehicle game beyond merely existing, as subsidies galore are being thrown at potential consumers on all sides, including the possibility of owning the FCV for free. Automotive News reports the ¥7 million ($68,556 USD) Mirai — whose name translates to “future” — will […]

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The 2015 Toyota Mirai may be breaking new ground in the fuel-cell vehicle game beyond merely existing, as subsidies galore are being thrown at potential consumers on all sides, including the possibility of owning the FCV for free.

Automotive News reports the ¥7 million ($68,556 USD) Mirai — whose name translates to “future” — will receive a ¥2 million (~$20,000) subsidy from the Japanese government when the first models go on sale next year, with residents of Aichi prefecture — the home of Toyota — taking an extra ¥1 million (~$10,000) from the local government.

However, paying only as much as ¥4 million ($39,175) for the honor of being one of the new pioneers of the silver hydrogen future might not be enough to bring the Mirai out of the showroom, as fueling infrastructure is nearly non-existent. The Japanese government aims to bring 100 stations online by March 2015 at the earliest, for what it’s worth.

So, where does the “free car” offer come in? Japanese business daily Nihon Keizai reported on a few suggestions made by a government panel on how to spur FCV adoption rates, including offering free FCVs, free hydrogen refueling and toll exemptions. The daily explained that the government’s hydrogen vision “must contain more radical ideas” in order to generate excitement from the public and “catalyze a revolutionary socioeconomic change.” A hell of a way to push the Mirai for Summerslam, one would suppose.

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General Motors Prepares To Enter Diesel Car, Light-Duty Pickup Games http://www.thetruthaboutcars.com/2014/08/general-motors-prepares-enter-diesel-car-light-duty-pickup-games/ http://www.thetruthaboutcars.com/2014/08/general-motors-prepares-enter-diesel-car-light-duty-pickup-games/#comments Wed, 06 Aug 2014 13:00:16 +0000 http://www.thetruthaboutcars.com/?p=883258 General Motors has few diesel-powered wares at the moment, but with the U.S. diesel market expected to hit 10 percent of the overall market by 2020, GM wants as much as it can get. Automotive News reports GM vice president of global powertrain Steve Kiefer announced his employer’s diesel plans before those in attendance at […]

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General Motors has few diesel-powered wares at the moment, but with the U.S. diesel market expected to hit 10 percent of the overall market by 2020, GM wants as much as it can get.

Automotive News reports GM vice president of global powertrain Steve Kiefer announced his employer’s diesel plans before those in attendance at the 2014 Management Briefing Seminars in Traverse City, Mich., proclaiming the current Chevrolet Cruze “will be the first of many diesel-powered passenger cars General Motors will offer in the United States.”

Meanwhile, the Duramax V8 offered in GM’s heavy-duty pickups will soon be joined by a 2.8-liter four-pot under the bonnets of the Chevrolet Colorado and GMC Canyon midsize pickups. Beyond this, Kiefer hints that torque will be the driving factor on where more diesels will go. Thus, light-duty versions of the Chevrolet Silverado and GMC Sierra may receive diesel engines to compete against the likes of the Ram 1500 EcoDiesel and the upcoming Ford F-150 SFE.

Kiefer concludes by stating GM will introduce more diesel power into the market “as appropriate and as the market accepts them.”

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Roadside Temptation http://www.thetruthaboutcars.com/2014/08/roadside-temptation/ http://www.thetruthaboutcars.com/2014/08/roadside-temptation/#comments Wed, 06 Aug 2014 11:30:01 +0000 http://www.thetruthaboutcars.com/?p=882306 Just a little ways ahead is your favorite spot on the whole trip. It’s a place you always look for as you drive by, craning your neck and slowing down to take in the view. You’ve never stopped there, though. Whether it’s a spouse, the kids, or just a nagging commitment, something always gets in […]

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Just a little ways ahead is your favorite spot on the whole trip. It’s a place you always look for as you drive by, craning your neck and slowing down to take in the view. You’ve never stopped there, though. Whether it’s a spouse, the kids, or just a nagging commitment, something always gets in the way. Or maybe it’s your guilty conscience holding you back. This time, though, you’ve made up your mind. You’re going to stop and have a real look-see around the place. Your pulse quickens as you get closer.

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                Don’t worry; you’re hardly alone. Every car nut falls prey to the temptation at one point or another. Everyone has their own particular affinities, but broadly speaking, the car hoard is a universal attraction. There’s always one in particular that bedevils you, gets inside your head, and demands to be investigated more fully. Whether it’s a scruffy towing and repair place, an old house by the highway, or just an open field, it’s out there somewhere.

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                For me, it was this roadside stash of VWs in northeast Alabama. After several passes by, I gave into temptation. There was no fence, no signs, and no junkyard dog guarding the gravel lot, so I was able to mill about at leisure. My non-enthusiast traveling companion was suitably supportive, even if he didn’t quite understand my excitement.

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                What made this particular collection interesting to me was that it wasn’t strictly segregated by propulsive power. VW enthusiasts tend to be divided into air-cooled and water-cooled camps, with a big generational gap between the two. In this case, several Westmoreland-produced water-cooled VWs were jumbled in with a bunch of Beetles and two Karmann Ghias. That included two Rabbit GTIs, which weren’t rusty but which were disappearing into the underbrush.

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                It also included this rare Rabbit-based Pickup, also known as the Caddy. Unfortunately, it had a much more pervasive case of car cancer. By the looks of the tires, it hadn’t gone anywhere for a very long time and wouldn’t be moving soon.

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                There were the carcasses of several Beetles strewn around the place, including the shell of this rare Sun Bug. Most of them appeared to be beyond saving, but perhaps not for a dedicated VW freak. Doors, fenders, and other parts were there, arranged in stacks and piles. There was a bright yellow Beetle that looked freshly restored in the back of the lot. Maybe this is the parts cache for an enthusiast keeping other VWs on the road.

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                Unfortunately, there was no one around to ask. And there were no signs indicating whether or not this was a commercial enterprise, a private collection, or both. It was a Sunday, and the service station next door was closed. The two places sort of spilled into one another, as is often the case with these kinds of hoards. I’d like to know if anything is potentially for sale. The metal building behind them all was also quite intriguing- what other treasures might it hold inside? Reluctantly, I moved on. I haven’t given up hope, though; this might not be the last word on this collection. Check the thumbnails below for more images.

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Tesla Diffusing Demand For Model X Prior To Showroom Debut http://www.thetruthaboutcars.com/2014/08/tesla-diffusing-demand-model-x-prior-showroom-debut/ http://www.thetruthaboutcars.com/2014/08/tesla-diffusing-demand-model-x-prior-showroom-debut/#comments Wed, 06 Aug 2014 10:00:15 +0000 http://www.thetruthaboutcars.com/?p=883178 Interested in a Model X? Then you may be better off waiting until the EV SUV actually arrives next year before turning up in a Tesla showroom, or you may end up going home in a Model S instead. Autoblog Green reports CEO Elon Musk informed participants in Tesla’s Q2 2014 earnings call that the […]

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tesla-model-x

Interested in a Model X? Then you may be better off waiting until the EV SUV actually arrives next year before turning up in a Tesla showroom, or you may end up going home in a Model S instead.

Autoblog Green reports CEO Elon Musk informed participants in Tesla’s Q2 2014 earnings call that the automaker is actively steering customer demand away from the upcoming X, going so far as to convince showroom visitors who want to put their name on a (non-existent) wait list for the SUV to buy the S.

The “anti-sell” tactics are a part of Tesla’s strategy to create at-will demand for the X, citing complaints from Chinese customers who were “upset about waiting too long” before taking delivery of their electric sedans. Musk just doesn’t want U.S. consumers to begin forming iPhone-esque lines for the next big thing from his company. Not yet, anyway.

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Bubble Warnings Loom Large Over US Auto Sales Boom http://www.thetruthaboutcars.com/2014/08/bubble-warnings-loom-large-us-auto-sales-boom/ http://www.thetruthaboutcars.com/2014/08/bubble-warnings-loom-large-us-auto-sales-boom/#comments Tue, 05 Aug 2014 11:00:38 +0000 http://www.thetruthaboutcars.com/?p=882066 Business is booming on the lot, with the industry on pace to move some 16 million vehicles out onto the highway by the end of 2014. However, some Wall Street insiders are growing bearish with this bull market, blaming easy credit for the surge in demand. Reuters reports the insiders believe the demand is artificial, […]

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Salesman With Customer

Business is booming on the lot, with the industry on pace to move some 16 million vehicles out onto the highway by the end of 2014. However, some Wall Street insiders are growing bearish with this bull market, blaming easy credit for the surge in demand.

Reuters reports the insiders believe the demand is artificial, and should begin to drop once the U.S. Federal Reserve raises interest rates next year. Morgan Stanley auto analyst Adam Jonas is among those insiders, and has gone as far as to proclaim the demand “peak auto”:

We have little doubt that we’re in bubble territory. We’ve blown through prior (sales) peaks in terms of value, the amount of money people are spending on automobiles. We’re in uncharted territory right now.

Jonas posits demand will actually hit its peak in 2017, when a record 18 million units are expected to leave the showroom floor, before dropping to just 14 million in 2019.

Easy credit is claimed to be fueling the current demand, which, in turn, is also fueling record transaction prices, the current average being more than $30,000 per vehicle. The U.S. Office of the Comptroller of the Currency goes as far as to claim in a June report that “signs of risk in auto lending are beginning to emerge” as automakers and their financing partners go after subprime consumers with ever-lengthening long-term loans.

However, most industry insiders believe pent-up customer demand is driving the ongoing sales boom, with incentives remaining stable compared to the run-up to the Great Recession six years ago. Inventories, too, are at “a healthy and manageable level,” with production capacity at near-peak, according to Ernst & Young lead analyst Anil Valsan. He expects sales to cool off and plateau in the coming years, rather than the bust Jones is forecasting.

That said, some vehicles are being moved with a much larger carrot than others, like the Cadillac ELR’s $20,000 discount and Chevrolet’s and Ford’s $10,000 discounts on their respective full-size pickup offerings. Jonas believes it’s only a matter of time before the market visits the ER for credit poisoning, warning the next decade in the auto industry will be “more brutal” than the current decade “in almost every way.”

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