Good Week/Bad Week

It’s Been a Good Week for…

… Mini lovers BMW said around 25,000 Mini enthusiasts from more than 40 countries gathered at the F1 track in Silverstone, England, to celebrate the car’s 50th anniversary. Over 10,000 Minis showed up, some from as far away as Russia, and South Africa.

… Toyota Despite relatively cheap gas prices and a lousy economy, it looks like the new 2010 Prius is a hit. In Japan at least.

Toyota says it has received 80,000 orders for the third-generation Prius, which rolled out earlier this month in its home market and will go on sale in Canada next month.

Speculation has orders had jumped to 110,000, and Toyota is raising Prius production from its initial plan for 42,000 to 43,000 vehicles a month to 50,000.

Consider it a bright spot for a company that is posting GM-like losses.

… Ragtop muscle cars OK. It’s will be a year late. But GM confirmed that the Camaro convertible will indeed be built, starting in spring 2011.

At least that will give plenty of time for its targeted demographic—aging boomers—to get their hair transplants in place for some serious top down motoring…

It’s Been a Bad Week for…

… Canadian tax payers $1.4 million. That’s how much you and I could fork out to save each of the remaining Canadian jobs at just-about-bankrupt Government Motors. The only consolation is that the “about $10 billion” in tax money will get us a 10 per cent share of the "new" GM.

How excited are you about owning a car company?

… Credibility He’s baaack!

Serial entrepreneur Malcolm Bricklin wants to buy up to 300,000 new vehicles a year from GM and Chrysler, upgrade the interiors “from standard to luxury,” and install “hydrogen hybrid” engine technology he says could double fuel mileage.

“I really believe this is why I was put on this Earth,” he said. “All those mistakes, and all those lessons, and all those experiences have led me to know exactly how to take advantage of this technology.”

The fact there is absolutely no where to fill hydrogen vehicles I’m sure won’t stop some suckers investors to sign over their life savings to Malcolm. Again.

… Auto parts makers Uh oh. As hard as Ford has tried to avoid the bailout shrapnel that GM and Chrysler have taken, its biggest parts supplier, Visteon, filed for bankruptcy in the U.S. this week, blaming a 40 per cent nose dive in Ford’s April sales.

Can Ford afford to support Visteon to keep the parts flowing? Will Ford cave in and finally dive into the bailout trough?

[Sources: The Star, Boston Herald, Automotive News, BMW, Associated Press, Detroit Free Press]

Official B-roll—NOT!

You’ve seen those staged , nudge-nudge, wink-wink, Nurburgring  “spy” videos automakers have incorporated into their PR campaigns. This capture of Toyota’s Lexus LF-A prototype racer going all Fiero-like at this year’s 24 Hours of the ‘Ring isn’t one of those.

Expect the long delayed production LF-A to show up at this fall’s Tokyo shindig. A new 4.8L V10 pumping out around 5550 hp is speculated. With only 500 samples, pricing is still planned for the $200,000 US range.

Asbestos seat covers may be optional.

[Source: AutoExpress]

Over to You: Would you buy a car from a bankrupt company?

If not as inevitable as death and taxes, it looks like Government Motors is heading for bankruptcy.

The Detroit News is saying this morning that GM couldn’t convince enough of its bondholders to swap debt for a 10 per cent stake in the company. Apparently, this will push the automaker closer to a Chapter 11 bankruptcy filing by Monday, the deadline by which the automaker was required by the U.S. government to restructure and reach money-saving concessions with the United Auto Workers and bondholders.

Go figure. The number of bondholders who agreed to the swap was "substantially less" than the 90 percent mandated by the U.S. Treasury Department, which has loaned GM $19.4 billion.

So with Chrysler posting a similar filing at the beginning of this month, that’s two-out-of-three of the Les Detroit Trois that have lost control of their companies.

So, over to you, Crank crew: Would you buy a new car from one of these bankrupt automakers?

[Source: Detroit News]

From the They Went and Done It dept.

As much fun as BMW’s X6 is to drive, its relevancy in the marketplace is highly dubious. Yet, that hasn’t stopped the wunder kidz over at BMW from rolling out yet another questionable niche mode that its maker seems to expect to be all things to all people, with "the characteristic features of a prestige saloon, a modern, highly versatile Sports Activity Vehicle, and a classic Gran Turismo."

What’s that they say? You can’t please all the people…

Anyway, those crazy Bavarians still have time to pull the plug. But that would be an admittance of guilt. So with the release this week of European model specs, it looks like the German minivan builder carmaker really is going ahead with a production version of the four-passenger 5 Series hatchback, above, previewed last spring in concept form.

While, as usual, Europeans will get the more interesting smaller sixes and diesels, our big boned American friends will demand the 550i Gran Turismo, powered by the same 407 horsepower, twin-turbo 4.4-litre V8 from the new 750i. It will be the first GT to go on sale here in Canada early next year at about $12,000 dearer than a $80,400 550i sedan.

So is BMW the smartest kid on the block?

Or will the four-passenger 5er GT be the niche model that will break BMW's credibility as a maker of machines for enthusiasts?

[Source: BMW]

Autopocalypse: Shuffling the deck chairs on the Titanic

What does it say when your company’s sales are down 17 per cent, yet you jump to Number One in your market segment?

Welcome to yet another thrilling chapter in the Autpocalypse.

Forecasts have Ford leapfrogging Government Motors to become North America's top auto producer this year. And guess what? Ford’s ascension is mainly due to GM’s and Chrysler’s stumbling and bumbling through their respective bankruptcy woes. Go figure.

As GM shutters most of its plants as it braces for a “possible” June 1 bankruptcy, it will build only 1.7 million vehicles, about half as many as it did last year.

Chrysler, which has stopped production during its bankruptcy filing, will fall to No. 5, behind Honda and Toyota, building only 903,191 vehicles—or more than half it did last year.

Ironically, Ford gets the crown with a projected 17.7 per cent decrease from 2008, or 1.9 million units for 2009.

So let me ask you: Do you think by the end of this year, we’ll be calling Ford the “Detroit One?”

Can GM and Chrysler ever get back to competing with Ford?

Or will Ford eventually fall to the same dire consequences as its Detroit Three rivals?

[Source: Automotive News]

Green is Good: The race is on to 2016!

Now that it looks like the future of driving will be green, (or at least greener) the next logical question is which automakers today are closest to the stricter 2016 standards.

Thanks to our friends over at Jalopnik doing all the heavy lifting, the short answer is, er, none. No automaker meets U.S. President Obama’s proposed new rules. Not even close.

At the same time, it's no surprise that the farthest away from meeting the 39 mpg for cars and 30 number for light trucks is Porsche. Or that the closest are Honda and Toyota. And among the Detroit Three, Ford has the least improvements to make to make the 2016 grade. It’s all based on U.S. figures, but you can read the gory details below:

BMW
2009 Fleet Fuel Economy Rating: 27.5 MPG
Distance From 2016 Fleet Fuel Economy Rating: -11.5 MPG
2009 Light Truck Fleet Fuel Economy Rating: 23.1 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -6.9 MPG

Chrysler
2009 Fleet Fuel Economy Rating: 28.3 MPG
Distance From 2016 Fleet Fuel Economy Rating: -10.7 MPG
2009 Light Truck Fleet Fuel Economy Rating: 23.9 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -6.1 MPG

Ford
2009 Fleet Fuel Economy Rating: 31.1 MPG (excluding foreign import)
Distance From 2016 Fleet Fuel Economy Rating: -7.9 MPG
2009 Light Truck Fleet Fuel Economy Rating: 24.7 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -5.3 MPG

GM
2009 Fleet Fuel Economy Rating: 31.3 MPG (excluding foreign import)
Distance From 2016 Fleet Fuel Economy Rating: -7.7 MPG
2009 Light Truck Fleet Fuel Economy Rating: 22.5 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -7.5 MPG

Honda
2009 Fleet Fuel Economy Rating: 36.5 MPG
Distance From 2016 Fleet Fuel Economy Rating: -2.5 MPG
2009 Light Truck Fleet Fuel Economy Rating: 26.2 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -3.8 MPG

Hyundai
2009 Fleet Fuel Economy Rating: 33.2 MPG
Distance From 2016 Fleet Fuel Economy Rating: -5.8 MPG
2009 Light Truck Fleet Fuel Economy Rating: 25.7 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -4.3 MPG

Kia
2009 Fleet Fuel Economy Rating: 33.7 MPG
Distance From 2016 Fleet Fuel Economy Rating: -5.3 MPG
2009 Light Truck Fleet Fuel Economy Rating: 24.4 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -5.6 MPG

Mazda
2009 Fleet Fuel Economy Rating: 32.2/31.0 MPG (Import/Domestic)
Distance From 2016 Fleet Fuel Economy Rating: -6.8 MPG/8.0 MPG
2009 Light Truck Fleet Fuel Economy Rating: 26.6 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -3.4 MPG

Mercedes-Benz
2009 Fleet Fuel Economy Rating: 27.5 MPG
Distance From 2016 Fleet Fuel Economy Rating: -11.5 MPG
2009 Light Truck Fleet Fuel Economy Rating: 20.6 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -9.4 MPG

Mitsubishi
2009 Fleet Fuel Economy Rating: 29.5 MPG
Distance From 2016 Fleet Fuel Economy Rating: -9.5 MPG
2009 Light Truck Fleet Fuel Economy Rating: 26.1 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -3.9 MPG

Nissan
2009 Fleet Fuel Economy Rating: 30.1/34.0 MPG (Import/Domestic)
Distance From 2016 Fleet Fuel Economy Rating: -8.9 MPG/ 5.0 MPG
2009 Light Truck Fleet Fuel Economy Rating: 23.5 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -6.5 MPG

Porsche
2009 Fleet Fuel Economy Rating: 27.0 MPG
Distance From 2016 Fleet Fuel Economy Rating: -12.0 MPG
2009 Light Truck Fleet Fuel Economy Rating: 19.3 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -10.7 MPG

Subaru
2009 Fleet Fuel Economy Rating: 29.0 MPG
Distance From 2016 Fleet Fuel Economy Rating: -10.0 MPG
2009 Light Truck Fleet Fuel Economy Rating: 28.4 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -1.6 MPG

Suzuki
2009 Fleet Fuel Economy Rating: 32.7 MPG
Distance From 2016 Fleet Fuel Economy Rating: -6.3 MPG
2009 Light Truck Fleet Fuel Economy Rating: 25.7 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -4.3 MPG

Toyota
2009 Fleet Fuel Economy Rating: 38.1/35.9 MPG (Import/Domestic)
Distance From 2016 Fleet Fuel Economy Rating: -0.9 MPG/3.1 MPG
2009 Light Truck Fleet Fuel Economy Rating: 25.8 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -4.2 MPG

VW
2009 Fleet Fuel Economy Rating: 30.2 MPG
Distance From 2016 Fleet Fuel Economy Rating: -8.8 MPG
2009 Light Truck Fleet Fuel Economy Rating: 23.9 MPG
Distance From 2016 Light Truck Fuel Economy Rating: -6.1 MPG

[Source: Jalopnik]

Green is Good: Obama to the U.S.: You WILL like eating broccoli

After yesterday’s announcement that U.S. President Obama is looking at accelerating the U.S. fleet average regulations by four years, here are a couple of fearless predictions from yours truly:

• Bye-bye pickups If high fuel prices and the social stigma of driving a gas guzzling vehicle has pretty much killed the personal-use pickup market, this new policy will kill off any commercial sales as well.

The solution? Just look at the rest of the world. Small, compact, diesel vans (like Ford’s forthcoming Euro Transit) is what Jean le Plummer drives in Paris.

• The rising up of the hot hatch Better enjoy your V8 muscle cars while you can. In a 6.72L/100 km fleet average future, the Camaros and Mustangs of the world crawl will back into the primordial ooze from whence they came.

Power-to-weight  ratios will all be about weight—the less the better. That means small, FTD cars like the Mini Cooper S will rise up and rule.

• The end of cheap gas Next up for Barry O will be a (real!) U.S. Energy Policy. In other words, a doubling or tripling of the price of pump fuel.

Forcing automakers in the U.S. as to what car to build is the easy part. I mean, Barry already owns two thirds of the Detroit Three.

But getting Americans out of their large vehicles is the next logical step for any of this to work. And gas prices more inline with the about $1.80/L Europeans pay—with the resulting tax income gains to pay for new infrastructure, health and education programs—will be Obama’s next move.

Trust me.

Bailout Blues: Are Chrysler’s troubles a template for future GM woes?

This week’s release of affidavits taken from Chrysler engineers and executives illustrates that getting back to the business of making cars after the current mandated post-bankruptcy 60 shutdown may be more troublesome than anyone has dare mention.

You can scroll down and read the doom and gloom. But Chrysler's scenario may give us a scary peak at the road that lies ahead for Government Motors as it moves closer to following Chrysler's lead into bankruptcy.

In broad strokes, the documents expose that when/if Chrysler is ready to make new vehicles again, the company and its suppliers will face numerous, er, let’s say “challenges”:

• No new Chrysler models are being worked on in bankruptcy. No 2011 Jeep Grand Cherokee. No Dodge Circuit EVs. No much-needed mid-size sedans. Nada. When development begins again, it will reportedly take 50 per cent longer to get those cars finished;

• While production plants are idled for two months and nothing is being made, factories still need to be cared for and equipment must be stored. The documents claim that the bill for storing paint alone is US $2 million, and it's $15 million to replace the paint;

• Chrysler’s suppliers will be asked to begin producing parts after a lengthy interruption in revenue and with no money up front;

• None of the new 2010 models can be built until the current models sitting on assembly lines are finished. And that doesn’t include the 300,000+ 2008 and 2009 model year cars sitting on dealer lots;

• Oh yeah. Let’s not forget the millions owed to dealers for incentives, warranty costs and receivables…

So what rose coloured glasses are Fiat and our governments wearing?

And after GM’s inevitable June 1 filing, how will it NOT face a similar fate?

[Source: CNN]

Bailout Blues: Cynical Brits unplug Dodge Circuit EV

Typical British cynics.

A report in Autocar suggests is that the whole Chrysler electric-vehicle program was nothing more than a smoke ‘n mirrors exercise.

“Take an existing car Americans won’t recognize (Lotus Europa), replace the engine with some prototype batteries, and slap some Dodge badges on it,” it says.

For shame, Autocar.

Just because: Chrysler has filed for bankruptcy (that reports say could take up to two years to sort out); won’t be making cars for a couple of months; has one of the most irrelevant lineup of vehicles among current mainstream automakers; and won’t have Fiats to sell for at least 18 months, why do these U.K. snobs think that the Circuit EV won’t ever see the light of day?

Does Autocar want us to believe that the Circuit was only done as publicity stunt? Merely to convince U.S. politicos that the Detroit automaker has the tree huggers’ best interests in mind? That Government Motors and Toyota and Honda and Nissan and (fill in the black) don’t hold a patent on new ideas? To distract everyone from the Sebrings piling up in dealer lots higher than the Chrysler Building? 

I mean, c’mon. Chrysler is featuring the Circuit EV and the Chrysler 200C EV concept in all of its recent U.S. "Brighter Future" print (above) and TV spots (below.)

If it’s in the ads, it must be true?

Right?

[Source: Autocar]

Autopocalypse: Is Toyota the next GM?

You kind of expect multi-billion dollars losses from Government Motors.

But Toyota?

What’s up with that?

On Friday, the world’s biggest automaker—for now anyway—announced that it plans to lose about $8.6 billion U.S. this fiscal year, and sell about 1 million less vehicles worldwide: down about 14 per cent in 2009-2010 to 6.5 million vehicles.

In fact, Toyota loss more in its fourth quarter ($6.9B) than GM did for the first three months of 2009 (‘only’ $6.0B.)

No doubt. A drop from 16.2 million units in 2007 to a projected 10 million this year is s sucker punch to every automaker counting on American customers. But Toyota is especially vulnerable due to its exposure in America and Japan, which is also tanking.  And its sales in China—one of the few markets that are showing growth—are down as well.

So I ask you, is Toyota heading down the same path as GM?

Has the Japanese automaker just gotten soft?

[Source: Automotive News]