#Economy

Done Duratec’d Out? (photo courtesy: Supaman)

TTAC Commentator Supaman writes:

Hi Sajeev,

Haven’t visited TTAC in a while but I’m back! My Mazda 6 has now crossed the 101k mileage marker and all your nuggets of wisdom have helped keep this classic functional and beautiful. However, there’s another problem rearing its head that has plagued even the Mazda forums I’ve visited for a resolution.

It involves the car’s driveability at anything below 3000 rpm. Doesn’t matter whether the engine is just warming up or at operational temperature, the car will hesitate (sometimes violently) in a stuttering/bucking fashion when accelerating from a stop through the gears until I crest that magic 3000 mark on the tach. Out on the highway, passing in top gear is almost impossible because of the engine’s hesitation if revs fall below that number, requiring a downshift to 4th to keep them up. At first I thought my manual skills were to question but then I never started experiencing this issue until around the 87,000 mile mark. It has since gotten worse. Sometimes the bucking is enough to trigger the CEL but then it always goes away after a while.

Browsing the forums I’ve tried everything from cleaning the MAF sensor, fuel injector cleaner, throttle body cleaning as well as replacing the O2 sensor. I’ve narrowed it down to either spark plugs (some forum members replaced theirs but the problem came back hours later), the coils or possibly a vacuum leak. One post I read indicated a potential cylinder misfire. Even Mazda dealers were confounded.

Chrysler has been on a steady upswing since the dark days of bankruptcy. Throughout its merger with Fiat, each model has been updated or completely replaced. Jeep has been the shining star of the core brands, selling every Grand Cherokee and Wrangler they can make. Even the controversially styled Cherokee has been fairly well receieved. The next vehicle in the Jeep lineup will be the small Renegade, designed to attract “a new wave of youthful and adventurous customers around the world to the brand.” We concur.

Making a “cheap” car is a tried and true formula for most auto makers. Making a car with a low sticker and a solid value proposition is tough. Not only do you have to keep the starting price low, but you have to worry about fuel economy, maintenance, insurance and everything that goes into an ownership experience. Reviewing cars that focus heavily on value is even trickier. Indeed a number of buff-book journalists were offended by the Versa Sedan’s plastics, lack of features and small engine. My response was simple: what do you expect of the cheapest car in America? Trouble is, the Versa Note isn’t the cheapest hatchback in America, so this review is about that elusive quality: value.

Should you find yourself renting a Chevrolet Spark in Acapulco in the near future, beware: it won’t have the same safety features — as in none at all — as the Spark exported to your local dealership. In fact, unless a car or truck screwed together in Mexico is bound for the United States or Europe, only the bare minimum, if any, in safety features will be available to customers in Latin America shopping for base models.

Many assumed that with the new FR-S hitting the dealers, it would only be a matter of time before the front-wheel-drive tC was sent out to pasture. However with an average buyer age of 28, the tC is isn’t just the youngest Toyota, it’s the youngest car in America. With demographics like that, product planners would be fools to kill off the tC and so the “two coupé strategy” was born. The last time we looked at the tC, the FR-S had yet to be born, this time the tC has been refreshed in the FR-S’ image. Which two door is right for you? Click past the jump, the answer might surprise you.

I have to admit, I’m a fan of the Fiat 500. Yes, I know it’s just a Fiat Panda with bubbly sheetmetal. Yes I know it’s a little peculiar. Yes I know it’s trying to ride on MINI success. It doesn’t matter, the wee Fiat makes me grin every time I drive one. Whether it’s the slow-as-dirt standard 500, the ludicrously loud Abarth, the almost-convertible 500c or the totally impractical 500e, the Cinquecento knows how to brighten my day. I was therefore excited when Fiat announced the 500’s success would spawn a four door stable-mate for 2014. Is the 500L 40% more smiles for 20% more cash?

The very first Generation Why column began after GM unveiled two concept cars aimed at millennial buyers, with the subsequent 18 months spent debunking numerous articles claiming that young people have abandoned the automobile in favor of electronic gadgets.

This author has long maintained that such talk was, in its most extreme form, the wishful thinking of people with a not-so-hidden desire to see cars disappear from the urban landscape. At its most benign, it’s simply foolish. Finally, the rest of the world appears to be catching on to the notion that when it comes to falling rates of car ownership, “it’s the economy, stupid.” General Motors just happens to be one of the first to say it publicly.

Something I’ve long maintained (and that has been backed up by many of the B&B) is that young people still like cars and do care about them. The issue of falling car ownership among young people is largely an economic one. The cost of living is going up while wages are stagnating. Gasoline is expensive. Student debt, smartphones and rent are more important obligations than car payments, insurance and fuel. All of that can be quantified with data.

What hasn’t been so easily demonstrable was that young people still like cars, despite the wishful thinking of many who cheer for the end to the automobile era. Now we finally have some good research that backs up my gut feeling.

With a CAW labor contract expected to be announced today, Fiat has confirmed that cars built in Italy will be exported to markets like the United States, as Fiat looks beyond its ailing home market for growth.

Here’s a statement you won’t see at any other automotive outlet – when I hopped out of a 2012 Mercedes CLS and into a 2012 Nissan Versa SL, I felt like I was at home. This has as much to do with my auto journalist salary as it does my love of bargains. As much as I love $50,000 pickups and supercharged sports sedans, my friends and relations rarely ask which AMG product they should buy. Usually, the decision looks a little like the photograph above. Today’s quandary: the 2012 Nissan Versa vs the 2012 Nissan Sentra. Let the games begin.

As the world struggles to come to grips with economic uncertainty, Bertel has been reporting that Japanese automakers are abandoning their homeland for lower-cost production centers overseas. Now, with economic turmoil shifting to Europe, it seems that Fiat could possibly be preparing for a pullback from Italy. Two basic factors are driving Fiat towards reconsidering its global manufacturing footprint: first, its struggles in the European market where margins are slim and dropping, second, its battles with Italian unions. Though Marchionne’s latest comments are ambiguous at best, some see these factors pushing the Italian automaker away from the market that gave it birth.

Toll roads at one point appeared to be unstoppable. Steady growth in traffic yielded rapidly rising profits, especially for pioneers in the field such as Australia’s Macquarie Bank where executives became so rich from deals that included the leasing of US roads that it was dubbed the “millionaires’ factory.” That all changed when the recession took hold and motorists scaled back on the mileage driven each year. Losses began to mount, and as a report released last week by Fitch Ratings argues, the dynamics for tolling may not improve in the near future.

“Fitch tracks data on toll roads, bridges, and tunnels across its ratings portfolio,” Fitch analysts wrote in the report, Downshifting: US Transportation Reacts as GDP Growth Flattens. “Traffic declined year over year as much as 10 percent during the Great Recession. Sustained positive growth in traffic commenced in February 2010. The most recent Fitch data indicates that growth in traffic volumes began slowly declining on tolled facilities, heading to zero growth in second-quarter 2011.”

14 millions Americans are out of work. The government is facing default. U.S. home prices are at their lowest level since 2003, and Robert Shiller, the economist who co- founded the S&P/Case-Shiller index of U.S. home prices, said a decline in property values up to 25 percent in the next five years “wouldn’t surprise me at all.” From Bernanke on down, everybody is scaling back the rhetoric that economic growth is just around the corner. Suddenly, automakers aren’t so sure anymore about all that pent-up demand that will bring back U.S. car sales back to their old glory. Reuters asked around and didn’t come back with good news.

Bloomberg reports that a “person familiar with the matter” says the US Treasury won’t sell its remaining stake in GM as long as the automaker trades below its $33/share IPO price. Previously the government’s auto team had said it would not try to “time the market” and our analysis showed that the Treasury was likely to sell sometime late this Summer. But it’s been months since GM spent more than a few days above its IPO price, indicating that Treasury may be waiting considerably longer if the IPO-price floor is set in stone. And with $36.5b in cash equivalents on hand and only $5b in debt, GM’s $45b market cap is hardly encouraging… especially with investors waiting for The General to match Ford’s profitability levels. Heavier discounts mean a lower operating profit for GM in the US market, and the first quarter shows a $1b swing in pricing between the two firms (with Ford improving $700m and GM dropping $300m) according to Bloomberg. Lower finance earnings are also holding The General back relative to Ford. So, what’s GM’s response?