Editorial: Who Needs Quality? Or, the Myth of Brand Loyalty

Quick question: what was the number one factor in your most recent new vehicle purchase? Was it styling? Performance? Features? Financing? Price? Comfort? Practicality? Or that old stalwart, quality? If you answered in the affirmative to that last suggestion, you’re part of a shrinking bloc. There were a lot of winners in the 2014 auto sales race, but quality wasn’t one of them.

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California Bill Would Cap EV Subsidies By Income

One of the bloodiest battlegrounds in the electric car wars is the topic of government subsidies for EV purchases. In the American case, it’s the $7500 federal tax credit for EVs and the various state incentives including California’s current $2500 rebate. In Europe and Asia, a variety of EV promotion schemes have frequently been the subject of acrimonious debate. Much of the disagreement arises regarding the perceived “fairness” of rebates: defenders of subsidies generally claim that they help put EVs in the hands of middle-class consumers, with critics charging that they only serve to line the pockets of the wealthy. Now one California lawmaker wants to revamp the state’s subsidy program by capping the income level for households receiving EV rebates.

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Rental Car Oligopoly Increasing Profitability at Consumers' Expense

2014 has been a good year for the rental car industry. A recovering economy has meant more car rentals and more miles traveled by consumers. Volume alone isn’t responsible for the rental companies’ recent success, though. Each of the big three rental chains has been able to raise prices, thanks to the consolidation of an industry that they now collectively control 98% of.

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Did Obama Administration Help Delphi Evade U.S. Taxes?

From Bloomberg’s Zachary Mider comes a new allegation regarding the restructuring of (formerly) American parts maker Delphi: the Treasury Department under Obama helped the company re-incorporate in England as part of a tax avoidance strategy. If that’s true, it’s an embarrassing revelation for a President who recently condemned American companies that incorporate abroad as “corporate deserters.” Like many things in the financial world, however, appearances are often deceiving.

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Roadside Temptation

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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Autoworkers, Agribusiness, and Algae: Toledo Back in Business, For Now

Toledo, Ohio has just squeaked by a major environmental crisis. A toxic algae bloom in Lake Erie poisoned the city’s water supply, leaving over 400,000 residents high and dry for three days. Restaurants, schools and businesses closed, the National Guard trucked in water, and the governor declared a state of emergency. Meanwhile, Fiat-Chrysler had to resort to creative measures to keep its Toledo Jeep plant running.

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New Round of IIHS Small Offset Tests a Mixed Bag

The Insurance Institute for Highway Safety has released the results of its latest round of small offset crash tests. This latest group of twelve cars posted a wide range of scores, highlighting the challenging nature of the Institute’s newest test. Only one car earned a “Good” rating from the Institute for this test, with several receiving the lowest score of “Poor.”

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Book Review: No Time to Cry by Wilmer Cooksey, Jr.

“On one occasion I was called out into the yard because there had been a shooting. A guard, a line worker and a car thief had been shot. The thief had been wounded gravely by the guard and was bleeding but he had made it into the cab of the car hauler and had driven for some distance before he crashed and was caught.”

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One Man, One Brand, Five Decades: The Bob McDorman Automotive Museum

Our current age is one of multistate megadealers, Carmax, Ebay, and an ever-growing number of other depersonalized ways to buy a car. In these giddy times of direct sales experiments and apps for online vehicle purchases, it’s easy to forget that local franchise car dealers were pillars of American community life for decades. At the Bob McDorman Automotive Museum in central Ohio, however, the days when car dealers were more than just a place to buy a shiny new consumer product are alive and well.

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Editorial: Tesla is What Scion Should Have Been

It’s not an exceptionally large showroom, but the façade is enormous. The Tesla retail store in Columbus, Ohio wraps around an entire corner of the Easton Town Center, that city’s premier upscale shopping venue. My trip to the store, the first time I’d ever set foot in a Tesla retail location, was an eye opener. Tesla’s retail model is an example of what Scion could have (and should have) been.

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Adventures in Downmarketing: Mercedes-Benz Goes Nintendo

From the department of brand-killing marketing ideas comes Mercedes-Benz’s latest venture: in-game product placement for popular Nintendo game Mario Kart. Why? Because Millennials, that’s why!

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Keystone Vote Looms Amid Iraq Implosion

Global oil prices are on the rise as the crisis in Iraq contributes to market instability. Large chunks of Iraq’s oil production infrastructure have fallen under militant control, leading to a sharp drop in output. Meanwhile, Canadian officials are upset with the Obama administration’s handling of the Keystone pipeline. They contend that the inaction on Keystone is keeping millions of barrels of Alberta crude from reaching more profitable markets.

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Sunday Story: The Coachworks

Hooper Bentley image by Anton Van Luijk

“For years I was a Fleetwood man. Loyal. Traded in every year, without question. Always Eldorados.” A man in a dark green jacket and a carefully waxed mustache offered James a small crystal bowl filled with a variety of dark brown cartridges. “I’d be delighted, thanks.” He slid one into his e-cigar with a click and began puffing.

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QOTD: Bring Back the Unibody Pickup?

For decades, the formula for a successful pickup design in America has been pretty much the same. Design a simple ladder-frame chassis, drop in the biggest engine you can find, give it a front-engine rear-drive layout with an optional transfer case, and start raking in the money. From time to time, however, manufacturers have tried to swim against the current.

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Sunday Story: Cheap Shot

After getting lost in the maze of hallways numerous times, I finally found the door I was looking for. I knocked and it swung open sharply. Larry stood there with a devilish grin on his face, the kind he got when he was really proud of something. I could see a still from his work on the enormous screen behind him. A famous actor stood next to a luxury sedan, pointing at it with a smirk. Before I could say anything, Larry grabbed me by my collar and pulled me into his lair.

We sat down amongst the plethora of expensive video editing equipment in the small, dark room. He grabbed the burrito out of my hand and tore into it with ravenous force.

“So what did you bring me here to see? I know it’s gotta be something special. You usually don’t care about commercials.” He gulped down his mouthful of food, then began to explain.

“It’s brilliant. This is, like, the nuclear option of car ads. You know that a lot of luxury cars aren’t made in developed countries anymore?”

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  • Jonathan IMO the hatchback sedans like the Audi A5 Sportback, the Kia Stinger, and the already gone Buick Sportback are the answer to SUVs. The A5 and the AWD version of the Stinger being the better overall option IMO. I drive the A5, and love the depth and size of the trunk space as well as the low lift over. I've yet to find anything I need to carry that I can't, although I admit I don't carry things like drywall, building materials, etc. However, add in the fun to drive handling characteristics, there's almost no SUV that compares.
  • C-b65792653 I'm starting to wonder about Elon....again!!I see a parallel with Henry Ford who was the wealthiest industrialist at one time. Henry went off on a tangent with the peace ship for WWI, Ford TriMotor, invasive social engineering, etc. Once the economy went bad, the focus fell back to cars. Elon became one of the wealthiest industrialist in the 21st century. Then he went off with the space venture, boring holes in the ground venture, "X" (formerly Twitter), etc, etc, etc. Once Tesla hit a plateau and he realized his EVs were a commodity, he too is focused on his primary money making machine. Yet, I feel Elon is over reacting. Down sizing is the nature of the beast in the auto industry; you can't get around that. But hacking the Super Charger division is like cutting off your own leg. IIRC, GM and Ford were scheduled to sign on to the exclusive Tesla charging format. That would have doubled or tripled his charging opportunity. I wonder what those at the Renaissance Center and the Glass House are thinking now. As alluded to, there's blood in the water and other charging companies will fill the void. I believe other nations have standardized EV charging (EU & China). Elon had the chance to have his charging system as the default in North America. Now, he's dropped the ball. He's lost considerable influence on what the standardized format will eventually be. Tremendous opportunity lost. 🚗🚗🚗
  • Tassos I never used winter tires, and the last two decades I am driving almost only rear wheel drive cars, half of them in MI. I always bought all season tires for them, but the diff between touring and non touring flavors never came up. Does it make even the smallest bit of difference? (I will not read the lengthy article because I believe it does not).
  • Lou_BC ???
  • Lou_BC Mustang sedan? 4 doors? A quarterhorse?Ford nomenclature will become:F Series - Pickups Raptor - performance division Bronco - 4x4 SUV/CUVExplorer - police fleetsMustang- cars