BMW reinvents the car and ends up with a minivan

Attention new car buyers: Is the BMW 5 Series sedan not spacious enough? 5er Touring not tall enough? X5 Sports Activity Vehicle too utilitarian? Do you need more seats than the four found in the X6 Sports Activity Coupe?

So many questions. Yet, apparently, BMW seems to have no problem providing as many answers.

Just when you thought there were no more niches to fill, here comes the BMW Progressive Activity Sedan, all cladded up, left.

Ahead of its predicted launch at this year’s Geneva auto show in March, BMW has posted a teaser PAS concept video, above, seemingly ripped off from those UPS whiteboard TV ads with the guy who looks like a lead singer from a Rush cover band (not that there’s anything wrong with that…)

Trying to be all things to all people (hey, isn’t this how The General has gotten into so much hot water?) the BMW video voice says about the PAS: "It's not a sedan, SUV, or station wagon. Something new, full of character, 100% BMW."

Hmm…smells like a minivan to me. Or at the very least, a kick at Mercedes-Benz’s slow selling luxury minivan, the R Class.

Or is the PAS nothing more than a really expensive Toyota Venza?

When most automakers are having to make hard decisions on the product side to get through the current Autopocalypse alive, is this the right time to be launching new kind of BMW?

Has BMW stretched the niche envelope too far?

Autopocalypse Update: Is this just another Saab story?

This we already knew: As part of General Motors homework it has to submit before it can cash the full $13.4 billion in U.S. bailout loans, the automaker has to come back (again) to American government officials in a couple of weeks showing it has an idea on how to go forward as a viable and sustainable business.

A chunk of that plan is a long overdue rationalization of brands and products which has Hummer, Saturn and Pontiac either being put up for sale or getting a drastic haircut on their respective product portfolios.

Then there’s Saab: the General’s poor European orphan it’s been nursing since 1990. Saab has also been put on he sales block, but  like Hummer, nobody has stepped up to the plate to take the brand off  GM’s red ledgers.

Once thought of as a global premium brand to take on the likes of BMW and Audi, the future of Saab has been called into question recently with the delays of the replacement for the aging 9-5 sedan, above, as well as the 9-4 crossover.

But for those who thought the once respected Swedish cat was on its ninth life, two bits of recent news seem to indicate there might be hope for Saabistas after all:

• buried in a recent GM sales figures report were words indicating there is new product after all in the pipeline, as in the 2010 Saab 9-3X and 2010 Saab 9-5 that will launch this year, at least in Europe;

• financial good news came in that Saab is looking at going rogue on GM.The plan calls for Saab to go Swedish, 24/7. That translates into still being owned by GM, but getting its own operational budget and the autonomy on how to spend it, and moving the majority of production back to Sweden, a move backed by the Swedish government.

Ironically, this new independent and very Swedish Saab would not look very different from the quaint regional brand it was before sugar daddy GM stepped in almost 20 years ago.

Go figure.

With 75 per cent of it’s global sales in Europe, there seems to be some logical business sense here with this latest Saab story.

But will it work?

Do you think Saab going back to its Swedish roots has a hope in Goteberg in making a go in today’s Autopocalypse?

[Source: Automotive News, GM]

Autopocalypse Update: Two-seat roadsters taking one for the team

As the entire auto industry girds itself for a 2009 that’s looks like its going to be uglier than 2008 sales wise, the fat (i.e. niche fun-to-drive stuff) seems to be getting the axe.

With its puritanical cabin, snickety-snick gear box, high-revving four and snappy rear-drive handling, the Honda S2000, left, has been one of the purest driving experiences available. Alas, no more. Officially official from Honda, the 2009 S2000 will be the final model year.

First introduced in 1999 for the 2000 model year, over its ten-year run Honda has sold 110,000 S2000s world wide. But a decade without any substantial updates has hurt its sales in the fickle sports car segment.

Canadian numbers dropped to a mere 6 roadsters sold in December, bringing the 2008 total to 65, down from 123 the year before.

Even more of a rarity on Canadian roads is Cadillac’s XLR, right.

On sale since 2004 as a direct competitor to the likes of the Mercedes-Benz SL and Jaguar XK, the XLR is (or should I say “was”) built off a Chevy Corvette chassis—but with a retractable hardtop and a more luxurious interior.

Not any more. The General plans to end production of its two-seat roadster—which is made at the Bowling Green Assembly Plant in Kentucky alongside the ‘Vette spring—this spring.

Like the Honda, Canadian XLR sales were halved in 2008, down to only 30 units compared to 69 in 2007.

Do you lament the loss of either of these roadsters?

Can you see a day when either one of these models will ever be resurrected?

[Sources: Honda, BG Daily News]

Mitsu Lancer's UK ad verrry educational

A British TV ad for Mitsubishi's Lancer compact sedan has been banned from being broadcast in the early evenings.

Mitsubishi in the U.K. says Clearcast—the U.K. company responsible for examining and clearing ads before they air—argues the spot titled "Bird and Bees" is so jammed with sexual innuendos that it really shouldn't be seen by anyone who can't stay awake past 9 p.m. The ads aren't set to be aired until February 9 on British TV.

Take a look at the ad yourself, above.

Driven on the correct side of the road, would an ad like this help Mitsubishi Canada with its launch of its new 2009 Lancer Sportback, the five-door hatch version of the sedan set to go on sale this spring?

Do you think Canadians could handle this being aired in prime time?

Bailout Blues: Alfas won’t be making North American trek afterall

All I can say to all you exotic Italian car fans out there is spiacente. Because it looks like the proposed Fiat/Chrysler hookup won’t mean any spicy Ferrari, Alfa Romeo, Lancia or Maserati cars will be coming to you local Chrysler dealer any time soon.

Speaking at the Automotive News World Congress last night, Chrysler head pen and Targa Newfoundland hot shoe, Ralph  Gilles, confirmed it will be only the more plebeian Fiats coming to our shores.

Gilles also mentioned that talks have already begun on what Fiats will end up in the North American product portfolio and the lines of communication between the Chrysler and Fiat studios are wide open.

"There is a lot of collaboration going on. The guys are really enthusiastic. They want to see what we got, and I want to see what they got. That is pretty much where it is right now," he said.

Rebadging some Fiat vehicles is an option. "There are some natural fits where it may make sense, but right now we are in a very broad investigation mode. We are looking at all the opportunities," he said.

If you want a peek at what rebadged Fiats may end up over here, click here.

Does a rebadged Fiat Bravo work better for you than today’s Dodge Caliber?

[Source: Automotive News ]

No News Dept.: GM no longer world’s largest automaker

Really? Didn’t see that coming. Wow! What a shocker. Who would have guessed? (OK, enough with the sarcasm! – Ed.)

In case you missed it, Japanese automaker Toyota sold more cars and trucks last year than General Motors, removing the Detroit automaker from the Numero Uno slot as the global new car sales champeen for the first time in almost 80 years.

In most people’s minds—the car buying public and industry analysts alike—Toyota’s been the number one automaker for some time. Probably since 2001, when we first starting seeing the rather large chunks in the Detroit Three’s once impenetrable armour.

Like death and taxes, this milestone was inevitable. But don’t expect any champagne bottles to be popped, or employees running around Toyota’s offices pumping their fists or donning WE”RE NUMBER ONE foam fingers over this news.

If you thought 2008 was ugly for global new car sales, 2009 is already shaping up to be worse. And few in the car business, Toyota included, will escape unharmed.

The CEO of Mazda North American Operations Jim O'Sullivan said today at the Automotive News World Congress the industry is in for a rough time at least until the middle of 2010. Total annual U.S. sales, he said, could be stuck in the 11 million-unit range this year, with sales picking up in the fourth quarter.

"Survival is the name of the game, with an eye toward pulling out in the next 18 to 24 months," O'Sullivan said.

So how important outside of Toyota is it that it has the number one sales crown?

[Source: Automotive News]

Bailout Blues: The Answerman returns to answer all your Fiat and Chrysler nuptial questions

As The Crank recovers from last week’s Motown madness, The Answerman has stepped in today to give you the lowdown on the latest Fiat Chrysler talks:

So what’s this I hear? Fiat owns Chrysler now?

Um, not exactly. To get future access to Chrysler’s North American manufacturing and dealership network, Fiat is getting a 35 per cent equity in the Cerberus Capital Management LP-owned Chrysler. In return, Chrysler will have access to Fiat’s small and medium sized vehicle platforms.

So who owns Chrysler?

Nobody, outright. There’s Fiat with 35 per cent. Former parent, Daimler, has been trying to get rid of unsuccessfully its remaining 20 per cent. That leaves the Cerberus private equity gang with 45 per cent.

What’s 35 per cent of Chrysler worth?

Who knows? As a private company, Cerberus isn’t obligated to tell. What we do know is most industry analysts consider Chrysler in functional bankruptcy today. Remember, there is no cash passing between Fiat and Cerberus.

On the upside, does this mean I’ll be able to buy Alfa Romeos or the Mini-fighting Fiat 500 at my local Chrysler dealer?

Hold on to your wallets, Alfista.

Although there’s been lots of speculation of Fiat-owned Alfa Romeo’s North American return, that was all before last fall’s Autpocalypse. With the U.S. annual new car market shrinking from 16 million to some saying as low at 10 million in 2009—and with no recovery in sight—would you want to launch a new brand here? Especially a brand that's known better known as Fix-It-Again-Tony?

If—and there’s still a possibility that this Fiat-Chrysler marriage all goes to hell in a hand basket—this deal goes through, it won’t be until at least three or four years before you’ll see any Fiat products available in Chrysler showrooms.

Some cynics think this is simply Cerberus blowing smoke to keep the U.S. government bailout money flowing?

It’s hard to argue with that. In the next month or so, Chrysler has to convince U.S. legislators that it has a plan to meet the U.S. government's future 6.5L/100 km fleet average by 2020. And that plan has to involve more than churning out the only vehicles moving off Chrysler lots these days—gas guzzling full-size pickups and minivans. Otherwise, Cerberus can kiss good-bye $3 billion in earmarked new loans and forced to give back the $ 4 billion it’s already has its paws on.

The reality is, there are no new Chrysler products coming in 2009. And Cerberus has all but killed any future product budgets—niche market, money-losing electric vehicles aside—and cut its workforce. That means any new small car development will have to come from outside the company. Like the OEM deal Cerberus has cut with Nissan where Chrysler will get a version of the Versa subcompact and Nissan will get a version of the Dodge Ram pickup.

With Saab and Volvo for sale, why didn’t Fiat buy them?

Good question. My only answer is that their respective parents—GM and Ford—want real money on the table. It says a lot about how valuable Chrysler really is if Fiat can swoop in and get more than one third of the Detroit automaker without handing over one lira.

Is this the first time Chrysler has hooked up with an Italian automaker?

No.

[Sources: Automotive News, Reuters]

Done in Detroit: Who’s crystal ball has it right?

In a reversal of traditional roles at this year’s Detroit auto show, it was the American brands that showed up with environmentally conscious green wheels, while the Europeans (i.e. Germans) showed up with all the muscle.

To anyone that was listening, GM, Chrysler and Ford were all about zero-emission electric this and zero-emission electric that.

Neither their Cadillac Converj, Dodge Circuit EV nor Lincoln C had more than four bangers under their hoods conceptual hoods.

Counter that with the Germans: who trotted out all sorts of the screw-the-planet, high horsepower rides.

Mercedes showed its $1 million-plus SLR Stirling Moss super car. BMW débuted its Z4 Roadster and 7 Series V8 luxobarge. While Audi unvieled its ten-cylinder R8 super car.

So who do you think has their long-term product planning right?

Some EV fans—even the most optimistic like Nissan/Renault’s Carlos Ghosn—think electric vehicle sales will never make up more than 15 per cent of the market.

On the other hand, it looks like the global economic downturn may keep fuel pump prices lower than anyone would dare imagine last summer. This may only lower the incentive to go green by minimizing the cost and social untowardness of driving sports performance cars.

Is the future of driving the Cadillac Converj, or the Audi R8 V10?

Autopocalype Update: Tokyo may be a no-go

Just as we wrap up this year’s Detroit shindig, it looks like this falls’ biennial Tokyo auto show may not happen.

Automotive News is reporting, General Motors has pulled out of this year's Tokyo auto show to save the $2 million it had to spend at the 2007 show.

Chrysler has made the same decision and Japan's Yomiuri newspaper reported today that Ford was among the other Detroit brands that missed last year's deadline to register for the Tokyo show.

Discussion about canceling the show is driven in part by the decision of some non-Japanese automakers to shun the October venue amid the global financial crisis. But the Japan Automobile Manufacturers Association is debating whether to cancel the event.

As you know already may know, there were plenty of no-shows this week in Detroit, including Nissan, Suzuki, Porsche, Rolls-Royce and Land Rover. Mitsubishi Motors Corp. canceled its corporate presence, but local Mitsubishi dealers put together an exhibit. Honda had a display, but canceled it media presentation.

[Source: Automotive News]

Done in Detroit...

No running of the bulls. Less pyrotechnics. Fewer super cars—for me, this was the best of the eight Detroit auto shows I’ve officially attended.

Instead of floating out fanciful super cars or you’re-never-gonna-see-this concepts, this year’s show was all business. Like watching your teenager take out the garbage without being asked, the rise in the level of maturity from some of the automakers was jaw dropping.

Instead of flashy presentations that always seems directed towards new car buyers instead of the (supposedly) educated media corps, we got some real credible product and business news. And without some surprise or irony, the two most credible reveals came from of all places, two domestic luxury brands: Cadillac and Lincoln.

The Cadillac Converj concept hybrid makes so much sense on so many levels.

First, it looks great. As I was taking some photography of the car in Cobo Hall on Monday, Jaguar head pen Ian Callum was leading a couple of his designers around the car. And I asked him what he thought.

“Great proportions," he said. “They really nailed it.”

On the business side, the Converj is basically a reclothed Chevy Volt, But it’s premium image (and pricing) will help General Motors recoup some of the billions it will spend in getting these cars to market.

And a lesson for Lexus: Hybrids don't need to look dorkey (re new HS250 h.)

And, in sharp contrast to Chrysler’s EV program, GM’s other big news here was the announcement of a partnership with governments, technology partners and education facilities to develop its own lithium-ion battery manufacturing facility in Michigan—the first major automaker to do so.

Number two on my “I Bee-leeeve!!” list is Ford.

The Blue Oval crew had about a six-month head start on its Detroit rivals when CEO Alan Mulally announced last simmer that they would move up the introduction to North America of some of its excellent small European products. Just one of the reasons Ford is holding off on any government loans.

Although it’s in a relatively small market segment in Canada, the Taurus looked great. But Ford’s show highlight was the Lincoln C concept.

 Preparing for life without its premium Volvo brand, the compact C is a first step in making Lincoln a brand that could be marketed globally. Something you can’t say with any of today’s cars.

Unfortunately, it was hard to believe anything that’s coming out of the mouths of Chrysler’s executives at the show.

While Reuters is reporting that talks with Renault/Nissan to take over Chrysler's assets to get the Jeep brand are well under way again (rumours that Chrysler Vice Chairman and President Tom LaSorda is denying this morning) listening to CEO Bob Nardelli, in Chryslerland the skies are blue, the roses are blooming, and yes, the sun will come out tomorrow.

Unlike other automakers, with no electric power source, or battery supplier confirmed, how Chrysler will ever get its 200C EV concept— based on a shortened version of Chrysler’s large rear-wheel-drive platform—to achieve its 640 km extended range or 64 km  all-electric range in production is anyone's guess right now. Puh-leeeze…