Wild Ass Rumor of the Day: Japanese Sportscar Edition
By Edward NiedermeyerAugust 28, 2008 - 1,112 views
Our buddies at Autoblog have strapped on their brave pants, speculating that Toyota's LF-A supercar is DO-A. And there's plenty of evidence to back up their suspicion. There's no production date (not even 2010!), and a $225k price point that won't even pay off development costs. After an uncharacteristically unreliable 24 Hours of Nurburgring race, ToMoCo has opted for a soon-to-be-canceled SC430 silhouette on to its Super GT racer. Plus, Nurburgring testing crews and rival test drivers tell Autoblog that the LF-A is doomed to eternal test-bed status. All of which confirms that Toyota is no longer capable of producing quality performance cars. And reflects Lexus's shift in focus from performance to hybrid luxury. Meanwhile, Car Magazine reports that Honda's hybrid Open Study Model (OSM) will replace the elderly S2000 as Honda's mainline roadster. And they're not talking just styling cues either: the next S2000 will be a hybrid. Unfortunately, details are being held for Car's forthcoming print issue, so we still don't yet know exactly what flavor the hybrid will come in. If Honda's too-good-for-this-life Accord Hybrid is anything to go on, it could be something special.
Posted in News Blog | Wild Ass Rumor of the Day | 15 comments 
Wild Ass Rumor of the Day: GM to Kill Everything but Caddy and Chevy?
By Frank WilliamsAugust 27, 2008 - 2,317 views
Automotive News [sub] has a report on future models coming from Cadillac and it provides a lot of dots just begging to be connected. Among other things, Caddy is planning: a four-cylinder small sedan; an expanded CTS lineup that will include a coupe and sport wagon; and a redesigned SRX that only seats five and is between the Equinox/Vue and the current SRX in size. They've also decided to extend production of the DTS and STS without any further development but will eventually replace both with a single RWD sedan that "will be more competitive with the Mercedes E class and BMW 5 series." It's two other two things AN mentioned that really caught my attention: GM is "studying the possibility of Cadillac's sharing GM's Chevrolet Volt technology" and there's a possibility they'll replace the Escalade with "a model or two developed on GM's fwd Lambda platform" by MY 2013. So let's connect those dots: GM's planning a small Cadillac that will take the brand further down the price scale while Chevy introduces a more expensive small car in their lineup. They're repositioning the SRX as a smaller 5-place CUV, just above the Equinox in size. They're keeping the Lucerne's platform-mate DTS around for a while to hang on to older barge-buyers. They're considering Caddy as the only other American division to share the Volt platform with Chevy. They're looking at a fifth version of the Lambda platform which will essentially overlap the Enclave while the upper trim levels of the Traverse do the same with the Saturn and GMC derivatives. To me all those dots form only one picture: they're aligning Cadillac and Chevy so they could cover the entire market with just those two brands if need be. Once that realignment is complete, it's just a matter of time before they can methodically axe Pontiac, Buick, GMC and Saturn. The question is, can they do it fast enough to salvage what's left of the company? Just sayin'
(The Automotive News article is printed in its entirety here.)
Posted in News Blog | Wild Ass Rumor of the Day | 30 comments
Wild Ass Rumor of the Day: Delphi to Slice Hundreds of Jobs on Friday
By Robert FaragoAugust 13, 2008 - 1,120 views
We have it from an insider that the bankrupt parts supplier Delphi is about to "downsize" its domestic ops. Not that it'll do them much good. Now that Appaloosa Investments and Friends bailed-out of Delphi's bail-out plan, the former GM division is on its last life. Although Delphi's suing its jilters, what are the odds that a judge can/will force Appaloosa to fork over the billions the money men didn't leave on the table? At best, more money will be lost on lawyers, all 'round. All of which means a Delphi Chapter 7 is just over the event horizon. GM will have to buy up (back) the Delphi bits it needs to keep building vehicles. And as GM's August 8th SEC filing points out, "In addition the Benefit Guarantees may be triggered which would result in additional liabilities to us. We may also be subject to additional litigation regarding Delphi." The flames of GM's cash conflagration continue… [thanks to you-know-who-you-are for the tip]
Posted in Chapter 11 | High Finance | News Blog | Suppliers | Wild Ass Rumor of the Day | 10 comments
Wild Ass Rumor of the Day: Caddy and Buick Zeta-Based Flagships D.O.A.?
By Robert FaragoAugust 5, 2008 - 1,677 views
Technically, GM would have to build their rear wheel-drive Zeta-platform-based Cadillac and Buick flagships and THEN kill them for the cars to be D.O.A. Not to be pedantic (much), and keeping in mind the fact that I was the one who wrote that headline, if this rumor from GM Inside News is accurate, then GM's flagships are stillborn. In any case, it's another cut-and-paste moment for the ill-fated Zeta: on-again, off-again, on-again, off-again, on-again, off-again. And yes, I left one out. Or two. While we await confirmation, can there be any doubt that Car Czar Bob Lutz and his minions are an abject failure at product planning, lurching from crisis to crisis without any coherent long-term plans? I'm reading between the lines here, but it seems that even GM Inside News is fed-up with this "fluid" state of affairs. "If true, this is just yet another twist in the ever-changing product programs at GM. Recently there has been a lot of shuffling with the product programs to reflect the changing market and GM's current financial position. Stay tuned, I'm sure we'll have more soon!" Roger that. So to speak.
Posted in News Blog | Wild Ass Rumor of the Day | 26 comments
Wild Ass Rumor of the Day: GM CEO Rick Wagoner “Resigns” Next Week
By Robert FaragoAugust 1, 2008 - 2,573 views
Rumor has it Rick's toast. Obviously, there's no way to officially confirm GM CEO Rick Wagoner's termination by GM's Board of Bystanders. But I want to state here, and for the record, that TTAC flagged Rick Wagoner as the wrong man at the wrong time in the wrong job from the moment we began our industry coverage. To those who say Wagoner made the best of a bad job, I call bullshit. The General Motors Death Watch and GM's financial record offer incontrovertible proof of Wagoner's ongoing managerial malfeasance. If nothing else, consider the fact that his administration relentlessly pursued a "we can cut our way to prosperity" philosophy. In this Wagoner has been deeply misguided. And misguiding. The CEO's failure to face the facts, both within GM and without, identify him for all time as a weak, ineffectual leader. Wagoner's lack of accountability– both personally and professionally– stands as an utter condemnation of GM's Board of Directors and America's "old school" corporate culture. Wagoner has pocketed over $100m and secured a bankruptcy-proof pension for himself and his heirs. His real legacy will be the psychological despair and economic misfortune of the one million-plus people whose livelihoods depend– depended– on General Motors' health and vitality. I'm sure Wagoner is a nice man, personally. I've never met a CEO of a major corporation who wasn't (and yes, I've met a few). But it's good riddance to bad rubbish.
Posted in Chapter 11 | News Blog | Wild Ass Rumor of the Day | 36 comments
Not So Wild-Ass Rumor of the Day: GM to Stop Leasing On Monday
By Robert FaragoJuly 26, 2008 - 241 views
We hear from various sources that GM is about to follow Chrysler's lead and stop leasing its vehicles in the North American market. The move is not entirely unexpected; the company that owns the now non-leasing Chrysler Financial– Cerberus– also owns 51 percent of GM's vehicle financing arm, GMAC. Canada's Windsor Star reports GM's no-deal as a done deal. "The financial arms of Chrysler LLC and General Motors Corp. are getting out of the business of leasing vehicles as credit tightens and resale prices for gas-quaffing trucks fall, according to company executives and independent sources." Quaffing? Don't all ICE vehicles quaff? Anyway, the lease cessation is bad news for ChryCo and GM dealers north of the border. "In Canada, an estimated 43% of drivers lease their vehicles, double the U.S. rate of 20%." Ouch. You know residuals are in free fall when a financing company walks away from that kind of action. Meanwhile… "Geoff Helby, an analyst with J.D. Power & Associates in Toronto, said Toyota Motor Corp. and other automakers that offer attractive lease rates and decent residual values could win more business from the Detroit automakers as a result of the move. 'It would definitely put Chrysler and GM at a serious disadvantage.'" Make that "will."
Posted in Chapter 11 | News Blog | Wild Ass Rumor of the Day | 16 comments
Wild Ass Rumor of the Day: Volvo Shipping C30s Back To Sweden?
By Edward NiedermeyerJuly 23, 2008 - 66 views
According to Autospies' spies, Volvo NA is shipping C30s "back to Sweden." Yes, well, the C1-based hatch is assembled in Ghent, Belgium. In any case, the C30 seems to be selling poorly; Volvo's dropped C30 prices in Australia and Old Blighty. This might have something to do with a $22k base price for what is, in essence, a tarted-up Focus. Though the C30 offers more cargo space than, say, a MINI Cooper, the C30's practicality is hurt by its awkward hatch shape. And then there's the Swede's EPA 20/28 mpg via a turbo I-5. The poisoned cherry on top: the Volvo brand is in the weeds, facing a date with Ford's corporate strimmer. Add it all up and the C30 boomerang story seems plausible. Throw a little anecdotal evidence into the mix (how many C30s have you seen on the road lately?) and well… if Volvo can't sell its smallest, most efficient car, what does that say about its odds of survival?
Posted in News Blog | Overseas | Wild Ass Rumor of the Day | 53 comments
Wild Ass Rumor of the Day: Chrysler Meltdown Begins
By Frank WilliamsJuly 22, 2008 - 43 views
A few weeks back, we told you that some of Chrysler's component manufacturers have been running their plants full bore, even canceling holidays to meet Chrysler's production demands. They've even had to ship parts in cardboard because they didn't have enough of the usual plastic packaging. Now we've learned Chrysler has called a hard stop, throwing suppliers into a tailspin as they halt production lines that were running beyond capacity last week to keep up with orders. Plant managers are scrambling to determine new production levels so they can get lay-offs started as quickly as possible. Is this the beginning of the Chrysler meltdown? We'll keep you up on what's going on as we find out more.
Posted in News Blog | Suppliers | Wild Ass Rumor of the Day | 19 comments
Wild Ass Rumor Of The Day: VW up! To Become Baby Beetle?
By Edward NiedermeyerJuly 10, 2008 - 44 views
Motor Trend (MT) is filling-up bandwidth and hyping-up baby boomers with a post on the forthcoming New Beetle Mk II. The bulk of it isn't all that earth-shattering: there will be a new New Beetle. MT reckons it will be based on the next Golf and it should arrive in 2010. There will likely be a hybrid version. Motor Trend says VW should (or could) make the New Beetle a hybrid-only model since "its distinctive style lends it the same kind of instant recognition as the Toyota Prius." Except that the Prius is actually aerodynamic; a far more important feature for efficiency-oriented cars than boomer nostalgiamobiles. But that isn't even MT's wildest bit of speculation. They speculate that VW's forthcoming city car, the up! could be restyled to look like a "Baby Beetle." Hmmm. The VW up! was planned as a rear-engine car, and it will cost enough to place it in the "small-but-premium" category. By giving it a Beetle-inspired shape, VW could use nostalgia to trump the price point. A light, rear-engined baby Beetle would capture more of the original kaeferwagen's appeal than another reskinned Golf. But there's a small problem with the theory. As Mr Berkowitz pointed out, the up! is no la rear-engine, rear-wheel drive car. That doesn't mean a baby Beetle isn't coming. But if it does, it will be just another reskinned FWD VW. Or will it?
Posted in Future Vehicles | Germany | News Blog | Wild Ass Rumor of the Day | 15 comments
Wild-Ass Rumor Of the Day: Mercedes To Ditch Gasoline By 2015
By Justin BerkowitzJune 27, 2008 - 11 views
Whenever we talk about alternative powertrains in development, some people (this writer included) inevitably say: gasoline and to a lesser extent diesel are past, present, and medium-term future. But a number of sources claim Mercedes Benz is thinking otherwise; they're dumping the need for petroleum-based fuels in their future products in favor of electric, fuel cell, and (yuck) biofuels. Apparently Benz has spent billions of Euros on a "sustainable mobility" plan. According to the UK's Sun, Mercedes plans to spend another $14b or so in the next seven years to further develop the petroleum-free lineup. Will Mercedes give up sales in all the parts of the world in which there is no infrastructure for electric or fuel cell cars? The hedging response: their cars would still be capable of running on gasoline or diesel– meaning that biofuel flex fuel cars would satisfy this wild claim from the British tabloid. Even still, huh?
Posted in Alternative Energy | Green | Hydrogen | News Blog | Technology | Wild Ass Rumor of the Day | 10 comments
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