Buick Goes Upscale, Bumps Into New Cadillac XTS (In Concept)
Take Buick’s LaCrosse, load it up with a fancier interior materials, wheels and trim, and what do you get? No, not a Cadillac XTS. The XTS, you see, is…
Read more
What's Wrong With This Picture: Lipstick On A Lincoln Edition
Have you heard? The New Look Of Lincoln is coming, and everyone’s talking… about how much Lincoln has to prove. And after seeing these teasers, the topic wil…
Read more
Never Mind The Showcars, Here's How Daihatsu Gets It Done

Since the Tokyo Auto Show and some Scion scuttlebutt have us on something of a Daihatsu theme here, I thought I’d show a bit of what the small car specialists are up to these days. The truth: despite the brand’s futuristic showcar image projections, Daihatsu mostly plays in the rough-and-tumble entry-level segments of emerging markets, where the cars are small and the margins can be even smaller.

And it’s had better luck there than in the so-called “mature markets.” Though the third generation Charade flopped on the American market amid much popular ridicule of its name (and, according to gearhead lore, oversight of other favorable qualities), the previous generation became the FAW-Tianjin “Xiali,” one of China’s most ubiquitous cars. Now Daihatsu is ditching Europe and hustling strangely cool little mini-MPVs built in Indonesia with the taglines “it’s very cheap” and “we build them compact.” Who needs developed markets?

Read more
(Not-So) Wild Ass Rumor Of The Day: Lexus HS250h Getting The Axe

Quick, name the Toyota product least affected by Asian floods and tsunamis? How about the Lexus HS250h? While its junior “dedicated hybrid” brand-mate, the CT200h took a nasty lick straight from its launch, which occurred just as the tsunami hit, the HS has been Mr Reliable. Mr Reliably Unpopular that is: the instantly-stodgy, $37k base price sedan has found between 150 and 300 buyers every single month this year. You can’t pin that on any tsunami, the car is simply a sales stinker. And when high-profit luxury vehicles flop this badly, you have to wonder how it will affect the brand’s the reputation. In any case, I don’t have a [sub] to Wards, so I don’t know why they’re reporting that the HS will be dropped… but I’m not in the least surprised. The market has spoken, it’s time to kill it with fire.

Read more
Jaguar Goes Front-Drive… Again

The last time Jaguar built an entry-level car based on front-drive architecture, it built the X-Type, a car that was nearly universally panned as “not quite a real Jaguar.” At thee time though, Ford was desperate to make a little money on its Premier Auto Group, and bringing Jaguar downmarket was the only way to do that relatively cheaply. And, all things considered, it could have been a lot worse: at least Ford was working from a good basis in the form of the Mondeo (Contour), which at the time was considered one of the better driving mass-market sedans. But if anything, the fact that the Jaguar brand was being used as Ford’s corporate pawn was a big part of why the X-Type flopped (the company’s overly-earnest insistence that the X-Type was in fact a ‘proper Jag” (see above) didn’t help either). And flop it did: sales topped out at 33k units in the US, and enjoyed only four years of rapidly-declining five-digit sales. While reviewers like Robert Farago used terms like “laughable distraction” to describe the baby Jag.

But those who don’t learn from history are destined to repeat it. Now owned by India’s Tata Motors, Jaguar is once again aiming at the entry-luxury market, and it’s planning… a front-drive sedan.

Read more
Wild-Ass Rumor Of The Day: Lincoln Drops Compact Car To "Focus" On Compact CUV

FordInsideNews reports

According to two independent sources within FoMoCo, FIN has learned that Lincoln has killed off plans for the MkC. Instead, Lincoln will focus all compact energies upon their new CUV, which is internally named the MkD. According to one source, Ford feared that the MkC would cannibalize sales of the larger MkZ sedan… According to a source who has seen the “MkD,” the Escape based CUV sports a design that is more of a tall hatch rather than a traditional CUV. When it comes to interior dimensions, it will be slightly less than that of the Escape

OK, let’s get this straight: a Focus-based “MKC” competes with the MXZ but a next-gen Escape-based CUV doesn’t compete with the MKX? It’s good to see Lincoln trying to focus its efforts, but it’s hard to say that a reborn Mercury Mariner is the place to be focusing. Meanwhile, this wasn’t the only spooky news coming out Ford’s struggling luxury brand over Halloween weekend…

Read more
What's Wrong With This Picture: Passat CC Gets Put In Its Place Edition
With the Passat moving from a poor-selling but Euro-premium sedan to a cheaper, more mass-market design, it was inevitable that the Passat CC “four doo…
Read more
Chart Of The Day: Brands That Are "Losing" 2011

The auto sales game has only one rule: sell more cars this year than you did last year. By that measure, these seven brands are “losing” 2011 as we head into the final two months of the year. Of course 2011’s king of bellyflopping brands was Mercury, which went from 78,656 units in the first 10 months of 2010 to 248 in the same period this year. But because it was mercifully euthanized by Ford (not to mention the fact that its 99.7% decline ruined the rest of the graph), Ford’s erstwhile “entry luxury” brand has been left off.

And what we’re left with is a sight to behold… the once-dominant Honda and Toyota (and even their luxury brands) laid low by floods, tsunamis, congressional hearings and a few poorly-received products. Even Subaru, a brand that grew 15 and 16 percent in 2009 and 2010 respectively seems in danger of not growing its volume this year… for less easily-explained (or is that superficially-explained?) reasons. Meanwhile, if Jaguar is falling behind with its freshest lineup in… well, you get the point. With the market up 10% compared to where it was in the first ten months of 2010, nobody wants to be losing volume right now…

Read more
Ask The Best And Brightest: Is Nissan About To "Pull A Hyundai"?

On the way to TTAC’s Southern Tour, I filled some of the gaps in my automotive history by reading Car Wars by Robert Sobel. Written in the same year that Nissan opened its first US plant, a sprawling complex in Smyrna, Car Wars documents the early years of the Detroit-Import wars, starting with the Beetle and ending with the rise of the transplant factories. The book is full of lessons, but its most rattling reminders was that Nissan was the major Japanese automaker during the early days of the Japanese industry. Nearly thirty years after Car Wars was written, Nissan often gets lost in Honda and Toyota’s shadow when it comes to perceptions of the Japanese OEMs. And lately Nissan has fallen off more than a few radar screens for the simple fact that its key products are aging: Sentra, Maxima and Altima were introduced for the 2007 model-year, while Rogue is just a year younger. Together these four models account for over half of Nissan’s monthly volume… and yet despite this aged core lineup, Nissan’s sales (as a brand) are up over 17 percent year-to-date, maintaining the brand’s consistent growth.

Read more
The Fiat-Chrysler Strategy: Now Featuring Jeep And Alfa

It’s becoming increasingly clear as time goes on that the Chrysler five year plan promulgated in November 2009 was merely a stopgap strategy aimed at stabilizing the then-recently-acquired firm while CEO Sergio Marchionne plotted a strategic course globally. Now, with news that Alfa is going to be re-launched with the US as its major focus ( possibly replacing Dodge), we’re getting a better and better picture of where the Sergio Show is headed with his transatlantic alliance. In an interview with Automotive News Europe [sub], Marchionne gives the latest snapshot

In his vision, Alfa Romeo and Jeep both have the DNA and the rich history capable to make them the alliance’s two global brands. “We need to continue to globalize Jeep and Alfa, so the development of architectures and engines that are designed to support these two brands is crucial, and everything else becomes almost secondary,” he said.

Chrysler clearly won’t be a global brand, as its products are rebadged as Lancias in Italy. Fiat will offer full lineups in Europe and South America, but only the Fiat 500 will be a truly global brand, in a role Marchionne compares to BMW’s MINI. Dodge doesn’t even rate a mention in this interview, which can only be interpreted as more evidence that it will be lucky to survive at all.

Read more
Chevy Hopes To Build A Magic Kingdom In Southern California

In hopes of escaping Chevrolet’s recent past as what he calls a “truck funded, Midwestern and Southern” business, GM’s Mark Reuss is leading a revamp of Chevy’s Southern California retail environment in order to establish a stronger presence in that key market. Now that Chevy offers higher-quality, more-efficient cars that can compete in the SoCal market, Reuss and company say it’s time to focus on the retail experience. The GM North American boss tells the LA Times

We are really going to have a go at California. This is not some half-baked plan. We will be putting a serious amount of money into this.

Serious money is good… but money alone won’t change the culture of a car dealer that’s always played second fiddle to import brands. So, how will GM tackle cultural shortcomings at its SoCal dealerships? Let’s just say that, for all the apparent seriousness with which this issue is being tackled, GM has come up with a Mickey Mouse plan… literally.

Read more
Could Fuel Efficiency Save Racing?

With Audi and Peugeot dominating the last several Le Mans races using diesel technology to outlast the competition, it seems that the famous French race is becoming the premiere stage for developing and highlighting the latest fuel-saving technology. And why not? Most marketing of new fuel-saving technology highlights the preserved performance and enhanced reliability as much as pure energy savings alone. And leadership in this suite of attributes is about to receive a little more competition, as Toyota announces that

In 2012, Toyota will take part in several races of the FIA World Endurance Championship, including the Le Mans 24 Hours, with a prototype “LMP1” car featuring a gasoline-electric hybrid powertrain.

Get Hyundai on board, and bring BMW’s new i brand into the mix, and the international racing business could be re-energized by the competition to demonstrate the perfect compromise between performance, reliability and efficiency. As many of the top racing series see declines in viewers and manufacturer participation due to their increasing irrelevance to mass-market vehicles and brands, the golden age of endurance racing could just be dawning.

Read more
Cadillac XTS: The High-Tech… Livery Car?

Though we haven’t even seen a production version yet, Cadillac’s forthcoming XTS has already lived a full, controversy-laden life. Initially suggested as a replacement for the DTS/STS, the Cadillac faithful quickly recoiled at the idea of a luxury “flagship” based on a stretched version of the Epsilon II midsized platform that underpins the Buick LaCrosse and Chevrolet Malibu. But with the Cadillac Ciel Concept showing the way forward for a “true” Caddy flagship which will eventually become the brand’s standard-bearer, the XTS’s role has been somewhat redefined. Expectations for the XTS were walked back by GM CEO Dan Akerson, who famously said that it was

not going to blow the doors off, but will be very competitive

And this week the enigma that is the XTS only deepened, as Cadillac announced two bits of seemingly contradictory information about it: first, that it would spearhead a new high-tech interface (see video above) and second, that it would mark GM’s return to the livery car business.

Read more
China On A Deadly Brand Binge

If your dearest wish is that the Chinese car industry will implode, then you should pray that the Chinese remain on strategy. For whatever inconceivable reason, the Chinese car industry has embarked on a plan, which – if properly executed – will mean its assured destruction.

Read more
Avenger, Grand Caravan Marked For Death. Is The Dodge Brand On Its Way Out?

With Chrysler, Dodge, Ram and Jeep brands consolidating into single dealerships as part of Chrysler’s “Project Genesis” dealer overhaul, CEO Sergio Marchionne is voting overlapping models off the island, starting with Dodge’s Grand Caravan and Avenger. Automotive New [sub] quotes Marchionne saying

We cannot have the same type of vehicle in the showroom because the consumer is not stupid. We’re not going to create the confusion and conflict in the showroom.

Dodge’s minivan (which outsells its Chrysler T&C sibling, albeit at lower margins) and midsized sedan will be replaced in 2013 by a single crossover, based on the next-generation minivan platform. A compact crossover, based on a Fiat platform, will replace the Avenger “after 2014.” Oh, and the subcompact is definitely off. In other words, you can pretty much forget the product plans unveiled two years ago at Chrysler’s five year business plan.

Read more
Lotus: "We Must Sell More Cars Now"

Lotus invited a considerable amount of schadenfreude when, about a year ago, it introduced not one new car, but an entire new lineup. And there have been plenty of opportunities to steal a mirthless laugh at Lotus’s expense, including when the firm backed away from Toyota engines, talked up the “authenticity” of a rolling chassis, ran into Chinese branding problems, and drew inadvertent comparisons to Reebok by hiring rapper/producer Swizz Beatz. And the hits keep coming. Lotus Senior Adviser, Former BMW executive Karl-Heinz Kalbfell tells Autocar

The brand is well known but the products are not. We are focusing on a new range of cars, but we must sell more cars now.

But how well can the brand be if the cars aren’t selling? Speaking as someone who spends bit of time interacting with auto enthusiasts, I’d argue there are actually some serious questions out there about what a Lotus is, what with all the talk of hybrids, folding hardtops, performance sedans and generally increased weights. But Kalbfell was just scratching the surface of the host of problems to be found in the land of the Lotus eaters…

Read more
Porsche Has Something Expensive To Sell You

No, it’s not a special-edition 911 with a few extra horsepower and leather-wrapped mirror-adjustment levers. Nor is it a water pipe built to the most exacting standards ever imagined by German engineers. No, Porsche has a freaking palace for sale, Schloss Bullachberg to be precise. Conveniently located in Bavaria’s castle district, near some of Germany’s most famous castles, Bullachberg was once the seat of the von Thurn und Taxis dynasty… and can now be yours for an undisclosed sum. The Frankfurter Allgemeine Zeitung reports that Porsche bought the property five years ago, for some six million Euros, with plans to turn it into a luxury resort hotel for “kaufkräftig” (literally purchase-powerful) customers and management retreats. Fast forward through one financial crisis and one overambitious attempt to buy Volkswagen, and Porsche has decided to let the property go. But be warned, as the FAZ reports that

only the most necessary work was done on the building’s upkeep.

Now that Ferrari even has its own amusement park (conveniently begun before the financial crisis), there’s no way Porsche will ever match its Italian rival in terms of cross-branded destination tourism. Which is fine. After all, we’re talking about car companies here… right?

Read more
Sibling Rivalry Watch: Is Kia Outshining Hyundai?

Hyundai and Kia are technically separate companies, with Hyundai owning less than 50% of its junior partner. But as the two major divisions of the Hyundai-Kia Motor Group, the two firms share resources and align their strategies through carefully-maintained relationships in the classic Korean chaebol (conglomerate) fashion. Hyundai has long been the senior partner in the relationship, getting the newest technologies and the most expensive new cars. But in both Korea and abroad, Kia is beginning to catch up with its big brother, raising questions about the future shape of its delicate relationship. Together, Hyundai and Kia enjoy a dominant position in Korea, earning 45.2% and 33.2% of the overall Korean market in 2010 (including commercial vehicles). But if you just look at sedans and SUVs, the Korea Herald reports that their 2010 market share numbers are much closer: 39.6% and 35/7% respectively, and converging

Hyundai Motor Group is focusing on the possibility that Kia will catch up with Hyundai within one year in terms of monthly market share ― for sales of sedans and sport utility vehicles ― domestically for the first time…

The gap for sales of sedans and SUVs have continued to narrow ― 22.9 percentage points in 2007, 17 percentage points in 2008, 15.4 percentage points in 2009 and 3.9 percentage points in 2010.

And this fresh-brewed sibling rivalry isn’t just about Korea: around the world, Kia is catching up. And this shifting relationship is shaking things up at the highest levels of the group’s leadership.

Read more
What's Wrong With This Picture: French For "Outlander Sport" Edition
As a global vehicle, the Mitsubishi Outlander Sport is already something of a name-shifter. In Europe the compact crossover is called the ASX, and in Japan (…
Read more
Maserati: "We Can Do Anything"

In the annals of poorly-chosen songs, this one is right up there with the State of New Jersey’s almost-decision to make Springsteen’s “Born To Run” the state song. Yes, Maserati, you can do anything, you can be anyone… and you’re choosing to be the brand that pimps upgraded Grand Cherokees by invoking the ghost of Fangio over crappy power-pop. Do you really want to be reminding viewers that this is a conscious choice, picked from an infinite range of options? Because that kind of willful douchbaggery makes you, Maserati, look like you’re a half-step from becoming the official luxury brand of Jersey Shore.

Read more
Honda To Create Second Chinese" Brand: Ciimo

Thanks to the notoriously leaky Chinese Patent and Trademark Office, and the intrepid research of Carnewschina, we now know that Honda will enter the Chinese market with a second “Chinese” brand.

Read more
The New Look Of Lincoln Won't Be Chasing Waterfalls
Now that Lincoln’s got a new chief designer and a standalone design studio, what can we expect from the new look of Lincoln? Automotive News reportsL…
Read more
Americans Love Tiny Cars, They're Just Not Aware Of Them

Under Penske management, the Smart minicar brand sold fewer than 6,000 vehicles last year, capping a sales decline that led Mercedes to take back management duties for the brand. And, according to the new folks in charge of Smart, there’s only one real problem with the brand: awareness. Or, more precisely, lack thereof. We’ve heard this song before from Smart’s new GM, but now Ernst Lieb, boss of Mercedes U.S.A., is picking up the tune, telling Automotive News [sub] that

With the marketing activities that we’re going to have, we’ll see some positive momentum. The biggest problem the car has right now: Nobody knows it.

Which, of course, is nonsense. Nonsense that allows you to appear aware of the sales problem without acknowledging a single problem with the product itself, but nonsense none the less. And Smart’s not the only micro-car brand that’s reaching for it either, as Fiat-Chrysler marketing boss Olivier Francois has the exact same excuse for Fiat’s weak start, telling AdAge

I don’t think we have a car problem; people love the car. I think we have an awareness problem.

Are Americans incapable of seeing, recognizing or being aware of anything that weighs less than 3,000 lbs? Or is it possible that there are a few things wrong with the Smart and 500?

Read more
Vladimir Antonov: Screw Spyker, I'm Building A Jensen

As the Saab/Spyker/Swedish Automobile mess falls deeper into chaos and hopelessness, Saab’s erstwhile knight-in-shining-armour, Vladimir Antonov has been slowly backing away from the ugly scene. Indeed, his firm CPP Holdings was supposed to buy Swedish Automobile’s Spyker Supercar division, but that deal has been on hold while Swedish Automobile concentrates on keeping Saab alive. And though the Birmingham Post reports that CPP still plans on buying Spyker eventually, it’s clear that having washed his hands of the Saab situation, Antonov is looking elsewhere in order to secure a Victor Muller-free future. But could Britain really offer a loaded young Russian an appealing sportscar brand to sink his hard-earned (or not, whatever) cash into? Anyone know what TVR is up to? Actually, it seems Antonov has gone one better than TVR, and has secured the right to make an “all-new” Jensen Interceptor from the ex-Jaguar plant at Browns Lane, Coventry. Does it get any more wealthy-Russian-trying-to-make-his-mark-on-the-British-sportscar-scene than that? According to Autocar, the new Interceptor will feature aluminum chassis and bodywork, with an attendant “ultra-exclusive” pricetag, and will be shown sometime next year ahead of a 2014 rollout. Because, oligarch.

Read more
Cadillac ATS Takes On The 'ring

The constant frustration of almost everyone in the automotive media, is getting scooped by the fanboys. And yet it inevitably, it keeps happening. While the usual German ‘ring-watching suspects were enjoying their Messe, ATSforum.com grabbed an apparent web exclusive video of the Cadillac ATS at the Nürburgring… three days ago.

Despite the endless sturm und drang surrounding ‘ring records, I think videos like this are what makes the ‘ring “matter”: they show not-yet-for-sale cars being pushed on challenging, degraded road. As Jack points out though, the driver makes a huge difference in ‘ring times, and therefore, the performance you’re seeing in this video. Your ‘ring mileage may vary. Still, it’s worth remembering that this is a Cadillac on the Nürburgring. I’m not making apologies, it’s just… typing that still feels strange (yes, even after the CTS-V). Anyway, there’s some fairly comparable 2012 BMW 3er footage after the jump, so… y’know…

Read more
US Fiat Dealers Losing Patience As Alfa Endures Another Delay

You want the truth? The Alfa Romeo brand sounds like it’s pretty much in chaos at this point. Since Fiat first got a toehold on the North American continent, we’ve heard so many variations of the Alfa-Romeo invasion plans, each one succeeded by a new and different set of plans, that I don’t know what to believe anymore.

Back in 2010, the brand was talking about a 2012 launch and 85k annual units in the US by 2014, with the initial launch lead by the Giulia midsized sedan. Then, earlier this year, the Giulia was delayed until “mid-2013” as CEO Sergio Marchionne “was not pleased with proposals he has seen from Alfa’s creative team in Turin.” Then, in June we got a “product plan” PowerPoint slide that was supposed to guide the new new Alfa invasion plan, which had the bulk of new products arriving in the US in 2013. Then, in July we heard that the Giulia was bumped to “the end of 2013 at the earliest” and the plans were changing again. Now, Alfa CEO Harald Wester tells Automotive News [sub] that there won’t be a single Alfa in the US until 2013, and that the bulk won’t arrive until 2014. Oh, and the rear-drive flagship that Alfa denied earlier this year is back on for “after 2014.”

And the worst part of this latest change in plans? They forgot to tell the dealers…

Read more
In Defense Of: The Maserati Kubang

Paul Fussell’s brilliant book Class describes a BMW as a car for an upper-middle class professional, while a Mercedes-Benz is too ostentatious. The true upper-class vehicle is a beige Dodge or Ford, generally filthy and driven at 10 mph under the speed limit.

Fussell’s book was first published in 1983, and I’ll give one of my favorite authors the benefit of the doubt – not even such an astute and visionary social critic could anticipate the massive explosion of (credit fueled) affluence that has swept our society. Today, a Mercedes-Benz can be leased for the same cost as a Honda Accord, a BMW is what you buy for your daughter, and a Dodge isn’t even fit for your maid to drive. Which brings us to the Maserati Kubang.

Read more
Pich: Stop Me, I'm Full

Volkswagen will almost certainly finish the year as the second-largest automaker by volume… and if it wants to take the top spot, it will do so on sales, not acquisitions. Having gobbled an extraordinary number of acquisitions over the past several decades, including Bentley, Lamborghini, Bugatti, Italdesign and Karmann, VW’s monstrous appetite appears to be waning. And no wonder: the latest mouthful, a partnership with Suzuki, has gone sour and recent lustful glances at Alfa have drawn sassy rebukes from Fiat’s Sergio Marchionne. Accordingly, VW’s Chairman Ferdinand Piech tells Bloomberg [via AN [sub]] that no more acquisitions are planned and that

We’re big enough

Of course, this is also coming from the company that’s been struggling to swallow Porsche for the last several years. Once that deal is complete, we’ll check back on Herr Piech’s appetite. Because in an industry built on scale, you never know when hunger will strike…

Read more
Are You Ready For: An American Volvo?

The national character of auto brands is a tricky thing. For decades, Volvo wore its Swedishness on its sleeve, emphasizing the values that made Ikea, Abba and Swedish porn so popular in the US… even when it was an outpost of the Ford empire. And then the unthinkable happened: Chinese up-and-comer Li Shufu bought the brand and rolled it into his Geely empire. In the world of national-character-branding, being bought by a Chinese firm is something like hiring Casey Anthony as a brand ambassador, or using a mascot called “Mr Melamine Milk” (another nightmare scenario can be found here). So, how does a brand like Volvo, that was built on Swedishness, get past the “China Factor”? By doubling down on Swedishness? How about by building cars in the US?

Read more
And Now: An Original Chinese BMW

It happens to all foreign joint venture partners: They are invited to have tea and a chat with representatives of China’s National Development and Reform Commission (NDRC). After the pleasantries are exchanged, the weather has been discussed, and statements of mutual admiration have been made, someone from the NDRC side will say: “Don’t you want to start a Chinese brand? We would really appreciate it.” Who can say no to the wishes of the Chinese government?

The latest to say “Ja” is BMW. BMW will build a second, truly “Chinese” brand for China. “We are discussing this with the NDRC, and we will find a solution,” said BMW CEO Friedrich Eichiner to Germany’s FAZ. BMW’s futuristic carbon fiber i cars won’t be BMWs in China.

Read more
Whither Lincoln?

I was listening to a local radio station and as will happen in a regular Detroit newscast, they mentioned something newsworthy going on in the domestic auto industry. In this case they said that Ford would be spending $1 billion on 7 new products to revamp the Lincoln brand. Well that wasn’t really news so I wondered what really was going on and it turns out that the radio station’s news team grabbed a headline from an Alisa Priddle article at the Detroit News. Though the headline was nothing new, Priddle has interviewed Ford designers and product managers and has managed to give us a better idea of what the Lincoln brand will mean once Lincoln’s new team of 120 or so engineers, designers and marketing experts gets done reinventing the marque.

Read more
What's Wrong With That Volvo?

According to conventional wisdom, all cars in China are blatant copies of foreign cars. With the joint venture cars, that is certainly true. With some true red Chinese cars this is also sometimes the case. Now it seems that Chinese carmakers ran out of foreign victims and started to copy Chinese cars. Volvo is owned by China’s Geely, as we all know. Can you spot the true Volvo?

Read more
Ferrari: Tax The Rich, We Can't Do It All Ourselves!

If Ferrari is known for one thing, it’s super-fast, good-looking cars. But if Ferrari is known for two things, that second thing would be its uncanny ability to separate the wealthy from their hard-earned (or not) cash. And apparently the brand is so good at extracting revenue from its super-wealthy clientele that it doesn’t mind a little competition. The Wall Street Journal reports that, when asked by the Italian paper Republica how governments should overcome their budget crises, Ferrari Chairman Luca DeMontezemolo replied

You have to begin by asking it of those who have most, because it is scandalous that it should be asked of the middle class

Class warfare, or just the natural perspective of a guy who regularly charges the super-rich $2,300 for Alcantara trunk liner and $1,800 for a spare wheel? We report, you decide…

Read more
Ask The Best And Brightest: Could This Become The Littlest Ram?

First of all, let’s not fool ourselves: this is quite the hypothetical question. For one thing, Fiat is unlikely to federalize the Doblo cargo van that this “Work Up” is based upon until a subsequent generation comes out. In the meantime, the only Fiat Professional vehicle the US market will be getting anytime soon (thanks to CKD production at Warren Truck, according to Allpar) is the Ducato van, which competes fairly directly with Daimler’s Sprinter. But, hypothetically, could this Doblo “Work Up” find a market in the US? Let’s look at what it offers…

Read more
Land Rover Defends The Faith
Often times concept vehicles portray an already-decided future direction. Other times, concepts are built to suggest one possibility in an ongoing debate abo…
Read more
Ford EVOS Concept: Definitely Not A Lincoln
But… shouldn’t it be? Oh, Ford. You come up with something sexy and desirable, and you can’t help but slap a blue oval on it, can you? For…
Read more
What's Wrong With This Picture: A Panda For Every Purse And Purpose Edition

Meet the new Fiat Panda, which is set to debut at the Frankfurt Auto Show. The ur-Panda, nicknamed the “tolle kiste” (crazy/cool box) for its Giugiaro-designed looks and available Puch-designed 4×4 system, was built with only evolutionary changes from 1980 to 2003. Not a bad accomplishment for what was supposed to be a “peasant’s car.” The new (3rd Gen) Panda, based on the Fiat 500/Ford Ka platform, has an even tougher task ahead of it: not only must it pick up sales for Fiat in Europe, but it must also form the basis of Dodge and Jeep B-segment models, aimed at the US market. Is it up to the task?

Read more
Unraveling The Mystery Of Consumer Reports' Brand Spread

Some things have been repeated so often that many people have come to accept them as facts. I tripped across one of these in Bob Lutz’s new book, Car Guys vs. Bean Counters (review on the way). Lutz offers “a curiosity I have observed several times at various stages of my career”: when the domestics rebadge an import, the resulting model has scored “way lower” in Consumer Reports reliability survey. This has been Exhibit A in the argument, also repeated by Lutz, that import owners under-report problems on surveys in order to “retroactively justify the wisdom of their purchase.” I’ve come across this claim about CR so many times in the past that it just had to be true. Then I checked.

Read more
What's Wrong With This Picture: Along Came A Spyder Edition
Oh look, a convertible Ferrari 458. And, true to the brand’s nouveau-riche poser image, it’s one of those awful, complex, weight-adding, retracta…
Read more
Truth Versus Advertising: Sex Is Sexier Than The Environment Edition

With the environment taking an ever-larger place in automotive advertising, it’s interesting to note that Fisker’s latest brochure puts green in its place: behind sexy. Of course these sultry images [via BusinessInsider] aren’t free from environmental overtones, featuring taglines like “designed to get you hot, not the planet,” but it’s clear that Fisker is more heavily relying on the most traditional tool in the advertising playbook. Why? For one thing, even though Fisker is delivering Karmas, the EPA has not yet certified its efficiency rating… so we don’t even know how environmentally friendly it is yet. For another the Karma’s main rival, Tesla’s forthcoming Model S, is pure electric and therefore more appealing to wealthy environmentalists. Finally, unlike environmental messaging, sex doesn’t remind people that Fisker was the beneficiary of over half a billion dollars in government loans. Plus, sex is still, well, sexy. The more things change, the more they stay the same…

Read more
GM Approves "CadiVolt" ELR For Production

Nearly three years ago, I penned an entry to TTAC’s Volt Birth Watch entitled “You Should Have Been Born A Cadillac.” True to its name, the piece argued that,

the Volt’s bailout-fodder status requires some kind of volks wagen appeal; while a $40k Chevy is a tough pill to swallow, a taxpayer-funded [Volt-based] Cadillac could create a nasty backlash.

Now that the taxpayers are off of GM’s radar, the plan is going through: GM has announced that it will build a production version of the Converj concept, to be called the “ELR” per Caddy’s alphanumeric naming scheme. Rollout, pricing and performance targets haven’t yet been released, but a production-intent concept will be shown at the upcoming Pebble Beach Concours d’Elegance. And though more profit out of an already-developed drivetrain makes worlds of sense, GM now has to explain why its luxury brand is getting Chevy’s leftovers with a freshly tailored suit. Hopefully GM will pull off this relatively minor PR hurdle with more aplomb than, say, Lincoln’s attempts to explain that features available in most Fords, like EcoBoost and SYNC/MyTouch, are what makes its cars so luxurious. After all, shouldn’t luxury brands be at the technological forefront, with features trickling down into the mass-market brands?

Read more
Amid Record High Transaction Prices, Chrysler Cuts Prices On Key Models

While Chrysler Group sends its Fiat 500 upmarket with Gucci special editions, its sending its Dodge, Chrysler and Ram brands downmarket with a lower prices, 90-days-same-as-cash deals and a variety of tie-ins. First up, the news [via Automotive News [sub]]that Chrysler is cutting the price on 200 and Dodge’s Avenger by $200, and the Dodge Journey by over $1,000 [UPDATE: plus, $3k off Grand Cherokee] is strange indeed. Chrysler’s sales, market share and transaction prices are up, while its incentives and fleet sales are down… and meanwhile, its key competitors are raising prices on increased material costs. Oh, and average transaction prices across the industry have been breaking records all year. With volume slow and prices (as well as costs) rising, Chrysler has no real reason to be lowering prices beyond hunting for volume that may or may not be there. At the expense, it must be added, of profitability. But if you look at Chrysler Group’s most recent maneuvers, it seems that lower prices might not an isolated move on market share. It seems that Chrysler Group is actually strategically positioning itself as the Wal-Mart automaker… literally.

Read more
Next-Gen Mercedes SL AMG Doesn't Have To Be Driven Like Grandpa

I’ve personally never seen a Mercedes SL driven in anything close to anger. In fact, most of the time I see an SL, it seems as though the driver is in no rush at all to return to pulling teeth or fixing braces. But, as with the “low-flying” forthcoming Mercedes ML AMG, the boys from Affalterbach are driving the new SL AMG like it’s meant to be… so you don’t have to. After all, that AMG badge does supposedly stand for more than “a little extra respect from the valet”…

Read more
Saab Working On "The Deal," As Bill Collectors Close In

Bloomberg BusinessWeek reports that Saab has to pay some $620,000 today in order to keep Sweden’s Debt Enforcement Agency at bay. Should Saab fail to pay suppliers Kongsberg Automotive and Infotiv within the next 24 hours, Swedish Debt Enforcement Agency officials say

The collection process that may start tomorrow would include investigating Saab’s bank accounts and potentially also other assets.

Assets will be frozen while Saab’s worth is assessed, a move that would essentially end the existence of Saab as it currently (barely) exists. Saab spokesman Eric Geers says

We’re of course totally aware of this situation with the collection agency, but I can’t comment on what we’re going to do,

but other than pulling out from the Frankfurt auto show in order to focus funds on restarting production and selling another tranche of value-diluting shares, Saab hasn’t done much to respond to the latest crisis. And with another $795m due to suppliers in “about a week,” time is slipping away. Luckily for the True Believers, there’s still a shred of hope-against-hope to hang on to, as Saab’s PR man Steve Wade says something called “The Deal” is in the works.

Read more
Introducing Eterniti, The Luxury Brand That Has Nothing To Do With Infiniti – Who ARE Those People?

Does the world need another luxury car brand? Hold up, let me rephrase that: does the world need another $250k luxury crossover with a new brand that sounds like a bad Infiniti knockoff? Well, whether we need it or not, it’s coming… and from Britain, not China! Or maybe it does?

Read more
Lincoln: "No More Badge Engineering"

Despite marketing its Lincoln brand as “not just luxury… it’s smarter than that,” Ford has finally admitted what the car guy world has been saying for some time: Lincoln isn’t a luxury brand… it’s a rebadge brand. Ford’s product honcho Derrick Kuzak tells Automotive News [sub] that the jig is up and there will be

No more badge engineering

Promise?

Read more
What Do Lotus, Aston-Martin And Reebok Have In Common?
The easy answer: desperation. More literally though, all three have recently employed the talents of hip hop producer Swizz Beatz in more or less desperate a…
Read more
You Seriously Want To Be Like Apple, GM?

If I would have a dollar , euro, yen for each time a marketer says “we want to be the next Apple,” I’d be rich by now and could stop writing.

Read more
Chevys Invade Germany

Chevrolet has big plans for Germany. “Mid-term” one percent market share will be in Chevy’s crosshairs, says Automobilwoche [sub]. “We have a realistic chance to reach that level, which is very important for a German importer,“ Chevy’s Germany-chief Steffen Raschig told Automobilwoche. “This is my main target.“

He is aiming low.

Read more
VW's Secret Weapon: Heritage

With the world’s established automakers facing increased competition from ascendant Korean car brands, and with even more competition from Chinese automakers just over the horizon, the key to continued success is leveraging every single advantage that’s been accumulated in the past. Traditionally those advantages have been technical, whether in engine technology, suspension set-up know-how, or long-established relationships with suppliers. But as technical advantages fade, brands are having to cash in on their other, less tangible assets… including heritage.

Read more
Is This Buick's Open-Top Future?

To be perfectly honest, we don’t know if the forthcoming Opel Astra CC (shown here in mule form) will be brought to the US and sold as a Buick, but it’s certainly been rumored. C&D says that, in addition to an Astra/Verano coupe, which it says will “definitely” be coming to the US,

Buick’s lineup could be graced with another Opel model that is currently under development. Replacing the folding-hardtop Astra Twin Top in Europe will be a new model that won’t be badged Astra, but will be based on the car’s Delta platform and remain close to the current model’s dimensions. The new convertible will keep its pronounced trunk and shed its clumsy hardtop in favor of a softtop, which should increase luggage space and make for a far cleaner look. Opel believes the softtop will create a more premium image.

The last Buick convertible? The 1990-91 Reatta convertible. But Buick’s probably hoping that nobody remembers those bad old days…

Read more
The Case For GM, In Glorious Powerpoint

With GM’s share price currently hovering below $25, well under its $33 IPO price, The General is holding its second annual Global Business Conference in hopes of encouraging investors the world over to buy into its turnaround. A webcast is currently streaming over at the GM Investor Relations website, but the key points are available in slides available in PDF here. The presentation involves nearly every level of GM’s business, so listening in and reading the entire PDF is going to be the best way to make sense of what GM is trying to communicate… but if you just want an overview, check out the gallery below for a few hand-picked slides, illustrating some of the more important points.

Read more
Wild-Ass Rumor Of The Day: Lincoln Is Going To Be Just Fine
About a minute into this clip, the auto industry’s most ubiquitous reporter John McElroy reveals that he’s seen three future Lincoln concepts and…
Read more
Ask The Best And Brightest: Can This Product Plan Keep Fiat-Chrysler Going?

According to Automotive News [sub]’s latest breakdown of Chrysler-Fiat’s product plans, a lot has changed since the big Five Year Plan product cadence guide was released in late 2009 [ PDF here]. The Chrysler brand’s C-segment offering appears to have been pushed back a year, its 2014MY B-segment car is AWOL and there’s no sign of a planned MY2014 “Midsized Crossover” or T&C. Planned MY2013 “Major Modifications” for Ram Light Duty, Heavy Duty and Chassis Cab are also nowhere in sight, although the “under consideration” MY2012 minivan-based pickup is back on, likely for MY2014. A MY2012 Challenger refresh is also off, according to these plans. And what’s taking up the slack? Alfa Romeos, and lots of them. Sergio and company didn’t mention Alfas during the seven hours of PowerPoint presentations back in late ’09, but it’s clear that his priority is on bringing Alfa’s 5-door subcompact MiTo, Giulietta compact, Giulia midsizer and Compact CUV to the US. Which means the cupboard will be largely bare over the next year, and thereafter another rush of products will launch across all six mass-market brands. Chrysler’s sales are growing at the moment, but can this plan maintain the momentum? The folks in Auburn Hills certainly hope so…

Read more
Mazda Halts Rotary Engine Development: Is 2011 Your Last Chance To Wankel?
Though the next-generation of Mazda’s rotary engine has been in development since 2007, and has been the subject of several TTAC Wild-Ass Rumors, Wards…
Read more
What's Wrong With This Picture: Messerschmitt E-tron By Audi Edition
With BMW breaking new eco-friendly premium ground with its “i”-branded concepts, it seems Audi does not want to be out-greened… or out-wei…
Read more
2013 ATS: It's A Cadillac!
GM’s North American boss Mark Reuss released this, the first official teaser image of the 2013 Cadillac ATS, at the Management Briefing Seminar in Trav…
Read more
Ask The Best And Brightest: Is Aston-Martin A Bit Old Hat?

Ian Callum, designer of the Aston-Martin DB7 (along with the new Jaguars and numerous other gorgeous things) is a really, genuinely nice guy. But even nice guys have their limits, and having seen his groundbreaking Aston design evolve with the morphological dynamism of a sturgeon over the last 17 years, Callum appears to have reached his. Bloomberg reports:

It’s still that same old basic design,” Ian McCallum, who designed the DB9 and is now design director at Tata Motors Ltd. (TTMT)’s Jaguar Land Rover unit, said in a July 27 interview. “Some will argue that if it ain’t broke, don’t fix it. But you do get to a time when you have to move on.”

Sadly, there are a few factual distractions to deal with here before we dig further into Aston’s predicament. First of all, though a Scot, the man’s name is Callum, not McCallum. Also, it’s not clear how much of the DB9 was styled by Callum, and how much was finished by his successor, Heinrik Fisker. Clear? OK, back to Aston…

Read more
Fiat 500: Icon In The Making Or Dead In The Water?

Fiat’s 500 is a tough vehicle to figure out. On the one hand, it’s got a lot of intangibles going for it: it’s got huge fashion appeal, it gets far better fuel economy than anything in the Chrysler Group’s US stable and it grabs attention like nobody’s business. On the other hand: the sales stink. Chrysler expected to move some 50k Cinquecentos this year, but after three full months of sales (only 500 special editions were sold in March), the 500 had moved fewer than 5,000 units through June (4,944, to be precise). Fiat has admitted that the 500 launch is “ a tiny bit behind schedule,” and the first official ad (which I count as another positive intangible) is only just going live this week. It’s miles better than the glorified tourist bureau video that has since disappeared from Youtube, but can it motivate 45,000 hip young (at heart) things to buy into the next small thing? We’ll certainly be watching July sales with interest. But if Fiat doesn’t get the ball rolling towards New Beetle-style iconic status in the US, the 500 could go the way of the Smart: iconic, but for all the wrong reasons (namely a challenging combination of price and size).

Read more
Maserati To Explore The Line Between Parts Sharing And Brand Engineering

While Fiat-Chrysler revives its Lancia brand by rebadging new Chrysler models with few other modifications, it’s attacking Maserati’s aging product lineup with a similar but more subtle strategy. Automotive News [sub] reports that the current Quattroporte has a problem

The car is too big to be a compelling driver’s car, but too small – particularly in terms of rear legroom – to serve as a good chauffeur’s car.

Luckily, according to the report, there’s an easy solution:

The problem will be resolved by offering two cars – a “baby” Quattroporte, code-named M157 and a larger Quattroporte, code-named M156.

The new flagship model will continue to use a Ferrari-sourced V8, and presumably an evolution of the current model’s underpinnings, extended by 70 mm to 5170 mm, or 203 inches… about the length of the forthcoming Cadillac XTS. The smaller version, on the other hand, is going to be a case study in the ever-evolving art of balancing shared components and premium differentiation.

Read more
  • Kjhkjlhkjhkljh kljhjkhjklhkjh [h3]Wake me up when it is a 1989 635Csi with a M88/3[/h3]
  • BrandX "I can charge using the 240V outlets, sure, but it’s slow."No it's not. That's what all home chargers use - 240V.
  • Jalop1991 does the odometer represent itself in an analog fashion? Will the numbers roll slowly and stop wherever, or do they just blink to the next number like any old boring modern car?
  • MaintenanceCosts E34 535i may be, for my money, the most desirable BMW ever built. (It's either it or the E34 M5.) Skeptical of these mods but they might be worth undoing.
  • Arthur Dailey What a load of cow patties from fat cat politicians, swilling at the trough of their rich backers. Business is all for `free markets` when it benefits them. But are very quick to hold their hands out for government tax credits, tax breaks or government contracts. And business executives are unwilling to limit their power over their workers. Business executives are trained to `divide and conquer` by pitting workers against each other for raises or promotions. As for the fat cat politicians what about legislating a living wage, so workers don't have to worry about holding down multiple jobs or begging for raises? And what about actually criminally charging those who hire people who are not legally illegible to work? Remember that it is business interests who regularly lobby for greater immigration. If you are a good and fair employer, your workers will never feel the need to speak to a union. And if you are not a good employer, then hopefully 'you get the union that you deserve'.