TGIF for most automakers...

Ford's bombshell this week about its record $8.7 billion Q2 loss and sweeping overhaul of its North American lineup to smaller European models pretty much hogged the limelight in what was yet another dismal week in the global auto biz:

The prognosticators at JD Power quantified what everyone already knows: the pickup as a mainstream vehicle is a thing of the past. According to its forecasters, full-sized pickup truck production in North America will "fall off a cliff" in the second half of 2008 and likely end the year nearly 1 million units lower in the U.S. than in 2007 (1.40 million in the first half of 2007 and 1.17 million in the second half.)

We're #2! We're #2! If you think the battle for the title of World's Largest Automaker is only one on paper, think again. While overseas markets helped GM's global sales in the second quarter, North American sales fell 20 per cent from a year-ago. GM reported global sales of 2.28 million vehicles in the second quarter and global sales of 4.54 million vehicles through June, down 2.9 per cent. That compares with Toyota, which sold 4.8 million global units through June. Despite this, Toyota will trim its full-year goal to around 9.5 million vehicles, from an earlier forecast of 9.85 million. But is there any reason to think GM will ever get its crown back?

Then there was the Flex fiasco in Oakville... What started out as a rumour that the just-released Flex large crossover was going to be canned, "only" ended up as a "suspension" of a planned third shift at the plant that already makes the Ford Edge and Lincoln MKX crossovers. Ford said "market conditions were too uncertain for it know when it might start the third shift," leaving in limbo the 350 recruits, who had been due to report to work on Monday. So, Ford, when do you think "market conditions" will get any better for such large and vehicles?

In addition to the bad news about the future of pickup sales, J.D. Power and Associates cut its projection of 2008 U.S. light-vehicle sales to 14.2 million units. That is down 750,000 units from the 14.95 million that Power projected earlier this year and down from the 16.2 million units sold in 2007.

For the first time in the 11 years since Mercedes began making SUVs in the States, the automaker said it will cut back production at its Alabama factory beginning in August. Sales of Mercedes U.S. truck sales fell to 5,090 vehicles in June, down 11.9 per cent from June 2007. Last year, the Alabama plant produced 174,356 units of the GL- and M-class SUV and R-class crossover for the global market.

Chrysler LLC said last Wednesday it plans to cut another 1,000 salaried jobs by the end of September to "slash costs and survive a deep industry downturn."

Whew! But then there's always next week...

Ford's radical plans calls for more Euros—now!

It's too obvious to say that North Americans like the qualities of import cars. So the question from enthusiasts and media—for, oh say, about 40 years—is why a global automaker like Ford, that has critically acclaimed vehicles in Europe, doesn't sell or make those cars here for us?

Well, it's finally taken an $8.7 billion Q2 financial loss, but Ford CEO will announce today that the Detroit automaker is saying, "Enough's enough!"

In what only one can call a desperate and radical plan, Ford will add six small European vehicles to the North American lineup, pronto, and convert three large truck and SUV plans to small cars beginning this December.

Essentially: Ford is catapulting forward its 2012-2014 product plans to 2010-2011. Coming early to America will be the Euro Fiesta and Focus in sedan and five-door hatch (seen above) and the Transit Connect small van.

We may also see the Ka city car and the Focus-based C-Max mini-minivan.

There's also good news for those working in Ford's Oshawa plant. The Ford Flex-based Lincoln seven-passenger crossover is a "go" and set to arrive in 2009.

Ford also said it will "revitalize" the Mercury product lineup by the end of 2010 with some of these Euro Fords. With no new products on the long-term horizon, the survival of the Mercury brand in the U.S. had been in jeopardy. Whether the brand returns to Canada is still up in the air.

Although it's all too easy to react to Ford's plans with a big, fat, "DUH!", props to Mulally.

He's finally blown up the Us versus Them fiefdoms at Ford and has the automaker finally acting like the global company it's always been.

But will North Americans hooked on Hondas and Toyotas come back to the showroom and accept Ford's imports?

[Source: Automotive News]

Ford reneges on 500 promised new Oakville jobs

Hamilton's CHCH-TV's report yesterday that Ford had canceled production of its Flex large crossover was wrong.

However, Ford did confirm this morning with the Star that it's only  the planned-for third shift that is being canned at the Oakville, Ont. plant that also makes the Ford Edge and Lincoln MKX five-passenger crossovers.

Since April, the Detroit-based automaker has been touting that recent job loses in Canada would be offset with 500 new workers needed to build the seven-passenger crossover starting next week in Oakville, the only plant in North America Flex was being built at.

But now that number has been reduced to 350. And even those Ford employee hopefuls were told that their jobs have been "put on hold" indefinitely because "the U.S. market for new cars and trucks had soured," a company official said on Wednesday.

In Canada, Edge sales have risen 14 per cent to 3,853 in the past three months but are slowing down. Sales in June rose 2 per cent to 1,348.

According to the report, since Flex production began in late spring, Ford has sold approximately 500 of the 13,000 or so that were produced.

Whether or not the planned Lincoln version of the Flex will be built at Oakville, or if the Taurus X will continue to be made in the U.S., Ford hasn't confirmed yet.

[Source: The Star]

Updated: Production info of Canadian-made Camaro hit the web

Fresh from the 4 pm live video feed today from Detroit, here are the official highlights of GM's introduction  of the production 2010 Camaro being built at GM’s Oshawa Car Assembly Plant:

• three models: LS, LT, SS (apparently, no RS for Canada);
• two trannys: a manual and automatic, both six-speeders
• three engines: 300 hp 3.6L V6; 400 hp 6.2L V8/auto, and 422 hp version with manual (no turbo four, yet)
• on the highway, the V6's get , 9.0L/100 km hwy, while the slushbox V8 will get 10;
• sales begin in the first quarter of 2009;
• how much? Hmmm...

[Source: GM Canada]

Production pics of Canadian-made Camaro hit the web

If you were up at the cottage or camping, you may have missed the "first official" images of the new Camaro that blew up all over the Web this weekend.

After over two-and-a-half years of spy shots since the Camaro concept was shown at Detroit in 2006, the final sheet metal isn't exactly shocking. The main differences between the concept and the production model seem to be around the details of the front and rear fascias, such as the lighting, exhaust plus the interior.

Scheduled to be screwed together at The General's Oshawa plant later this year, the Camaro 2+2 coupe goes on sale in February 2009, followed by a convertible in November.

Chevy's new Mustang rival will get a 6.0-litre V8 powerplant that makes "more than 400 hp" and GM's corporate 3.6L V6 that tops 300 hp. Also speculated is a "Secretary Special" 2.0L 260 hp from the turbocharged four also found in the Cobalt SS, among other GM rides.

These photos and info were leaked by U.S. web sites that had access to press material before an "official" press conference for the rest of the media this afternoon.

With the Dodge's pony car—the Challenger—being made in Chrysler's Brampton plant, Canadians now build two of the three existing American pony cars.

The question is: How do you feel about Canada becoming the home of American muscle?

[Source: Automotive News]

 

GM may toss Saturn and Saab out of its orbit

At this week's kick off of The General's "We Will Survive Tour 2008"—yet another round of what-took-ya-so-long layoffs, cuts in truck production and corporate bloodletting—the Detroit automaker also confirmed they're looking for buyers for "up to $4 billion" in assets, including some of its brands.

Hmm, let's see: GM is already trying to unload its Hummer SUV brand, a sale analysts expect will bring in less than a billion dollars.

So where would the remaining $3.5 B come from?

There's the GMAC financing arm, and OnStar. But among its remaining plethora of brands, a Reuters story is suggesting Saturn and Saab may be the next GM brand orphans after Hummer.

Saturn's own independent dealer network, which also tries to move slow selling Saabs (Saturn and Saab account for less than 1 per cent and Saturn at 1.4 per cent of overall U.S. light vehicle sales) is very attractive for an overseas automaker without a North American network.

Hello? China?

Anyway. All the doom and gloom hasn't stopped GM from rolling out the fresh metal.

Lost in this week's press conference, GM revealed illustrations of almost all its new vehicles for 2010, above.

This includes the first "official" photos of the 2010 Cadillac SRX crossover first seen at Detroit last January in concept form, the Cobalt replacing Chevy Cruze, new Equinox, a new Buick Allure/LaCrosse, and the Saab 9-4X .

Which models actually make it to showrooms by 2010 is the $4 billion dollar good question, eh?

[Sources: Reuters, Jalopnik]

Baseball, apple pie and hybrids

After a week away in the wilds of northern Quebec, time to put on my Industry Wonk hat again...

While the rest of the world embraces diesels, U.S. new carbuyers desperate for relief from enduring high fuel prices, are buying up (pretty much) every hybrid automakers can crank out. So filed under the "build 'em where they buy 'em" strategy, there's now news that both Toyota and General Motors are planning on manufacturing more hybrids on U.S. soil.

Toyota already builds a hybrid version of the Camry sedan in the U.S. But last week, Toyota said they would start making the Prius (presumably the next gen model, speculated left) by late 2010, south of the border as well.

This will be the first time the Prius will be built outside of Japan and China. And now it looks like GM will add European-bound Opel versions to the Detroit plant already slated to make the Chevrolet Volt hybrid.

We already know there will be two Opel hybrids.

One based on the compact Volt, shown as the Flextreme, right; the other a larger yet unannounced  model.

The Volt will go on sale first in the U.S. by late 2010. At the same time, GM says it might  add the Volt to its European Chevrolet lineup before the launch of the Opel models in 2012. Eventually, Opel hybrids may be made in Germany as well.

Do you think this is further proof of hybrids as "mainstream technology?"

Or are automakers just trying to cash in on hybrid hype?

[Sources: The Star, Automotive News Europe]

Road Trip: Day 4 - Home from Matagami

Kilometre 2,915 - Can't remember the last time I came home on a Friday evening, left, to the refrain of, "Hey Mom, Daddy's home from James Bay!"

Today's last leg back home to Ottawa was a reminder that one doesn't have to drive all the way to James Bay to "get away from it all."

The drive from Matagami south to Amos was sometimes equally pristine and remote as any kilometre on the more northernly James Bay Road.

Even the run between the mining town of Val D'or and the logging town of Maniwaki, through the La Verendrye wildlife reserve, reminded me of the vastness of the northern part of our country.

BTW, as a souvenir of my four days on the road, I brought home more than few good memories (see some of my new dead friends, right.)

You'll read more from me about my trip, and how the BMW performed in the future.

But for now, here's the (final!) scorecard for Day 4/Trip totals:

Drive time: 7 hours, 47 mins/29 hours, 41 mins
Distance km: 728/2,915.4
Fuel consumption L/100 km: 12.0/13.2
Average speed km/h: 96.9/104.8

Road Trip: Day 3 - Radisson (back) to Matagami

Kilometre 2,185/Matagami - It would have been easy to predict the 600 km drive back south to Matagami this afternoon would be a bit of a been-there-done-that chore.

But yesterday's drive north was in less then ideal conditions with downpours filling the ruts in the JBR caused by over 40 years of transport trucks. Aquaplaning  someone else's BMW into the woods would have been a great career move. Not.

So today, I took advantage of the dry conditions and had one of the best drives I can remember in a very long time.

First off, after you've gotten your head around the concept of what BMW has wrought— a sporty four-passenger utility vehicle—the X6 is actually pretty rewarding to drive fast.

For such a wide and tall vehicle, it's handling is taut and well controlled.  Plus weighty and accurate steering make it feel smaller and easy to place on very long sweepers. At least the ones that didn't have frost-heaved dips the size of Scarborough.

I wouldn't enter the BMW in a local gymkhana. Targa Newfoundland. Yes.

Whatever.

Out here on the JBR, it made for rewarding afternoon of driving when one wasn't expected.

Here's the scorecard for Day 3/Trip totals:

Drive time: 8 hours, 2 mins/21 hours, 54 mins
Distance km: 857/2,185.19
Fuel consumption L/100 km: 13.6/13.25
Average speed km/h: 110.3/105.9

Road Trip: Day 3 - Radisson (back) to Matagami

Kilometre 1,459/Outside of Chisasibi - Oceans are big, right? How hard can it be to find one?

Working on some sketchy directions from the girl in the corner store back 130-odd km in Radisson, I proceed to get lost trying to find the road to the ocean's edge.

Well, not exactly lost. More like "this looks like the airport."

I wave down a guy in a truck. He says I just missed the unmarked gravel road that leads to a boat launch about 9 km west of Chisasibi.

Cool.

Km 1,470 - Arctic Ocean - As soon as I motor along the gravel road, the landscape changes again.

Trees turn to mere shrubs, and water starts appearing in small ponds and outcroppings. Overhead, billowing dark clouds suggest a different geography ahead is affecting the weather.

After crossing a small hillock I roll own onto a beach crowded with local sea boats. Thankfully it's a boat launch with easy access to the water.

Thankfully, I haven't had to use the satellite phone I brought along "just in case." But I decide to pull it out for the occasion.

"Hi Honey? Guess where I am."

Well, it took a little over three days and almost 1,500 km, but the tireson the X6  and my toe on my feet finally get wet in the ocean waters of James Bay.