What are We Thankful for This Year?
From my chair in Detroit, things are bleak whether GM, Ford, or Chrysler get any loan money or not. I've returned from last week's Los Angeles Auto Show, where grilling of the Detroit Three leaders by Congress was more discussed than the product on the ground in front of us, or so it seemed. Lots of opinions have been shared, some informed and some not. There are several elements of the debate that seem to be overlooked (sales decline a minimum of 2.5 MILLION units this year is not affecting only the Detroit makers, next year is going to be worse, business decisions that look unwise in the rearview have been severely compounded by a credit freeze and housing market crash, elements not in control of any automaker.), but that's all I'm going to say about that today.

Instead, I want to think about good things that have happened this year. So, follow the jump to see what myself and my colleagues are grateful for having the opportunity to experience this year!

Continue reading "Exhaust Note #37: Happy Thanksgiving" »

Posted by Stephanie Brinley at 1:28 PM | Permalink

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So the word about the auto industry just keeps getting worse. With Congress mulling over the fate of the proposed aid package to the domestic automakers, we are also at the start of the 2009 auto show season. It's going to be an interesting series of auto shows over the next few months, that's for sure.

Media days for the 2009 LA Auto Show start this Wednesday, and it's already going to be a somewhat pared down show in terms of new introductions, at least from the Domestic automakers. GM and Chrysler have already announced that they're postponing LA Auto Show launches until January for Detroit's North American International Auto Show. Still, look forward to a slew of new launches from the various import makes...and their spins on how they will stay relevant in these depressed times.

Look for our coverage starting this Wednesday. Till then, happy motoring!

Posted by Ed Kim at 11:25 AM | Permalink | Comments (0)

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AutoPacific, VehicleVoice’s parent company, just released its latest sales forecast numbers for the current year and beyond. We all know by now just how bad this year’s sales have been so far. It’s so bad, in fact, that the sales slump we saw earlier this year due to skyrocketing fuel prices almost seems like a happy memory compared to the much more dire and long term problems we are now facing. Indeed, it looks like the industry’s in for a long, hard road ahead.

Continue reading "Exhaust Notes #35: AutoPacific Sales Forecast Predicts Continued Grim Times Ahead" »

Posted by Ed Kim at 1:29 PM | Permalink | Comments (0)

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A Sensible Recommendation? Yes, In Fact
At the close of the Audi Mileage Marathon we talked about last week, Audi of America's Executive Vice President Johan de Nysschen took a moment between results announcements and meet-and-greets with a few Hollywood celebrities to make a plea to the political structure. Mr. de Nysschen called for a lowering of diesel tax. Good, lowering taxes I like, though for a racing fan like myself, I was more impressed with Audi American Le Mans Series and Le Mans drivers Tom Kristensen, Allan McNish, and Dindo Capello than Mario Lopez or Brooke Burke. But that's just me, and I digress.

Continue reading "Exhaust Note #34: Audi Calls for Lowering Diesel Tax" »

Posted by Stephanie Brinley at 6:03 AM | Permalink | Comments (0)

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I just finished the fourth leg of Audi's Mileage Marathon, a coast-to-coast demonstration and competition drive for the best fuel economy from a range of Audi TDI clean diesels. The drive started in New York City on October 6, ending in Santa Monica on October 19. I joined the crew in Las Vegas, which included driving through Monterey, California, and the chance to see the Audi R10 TDI cars take 1-2 in the final American Le Mans Series race of the year at Laguna Seca, their ninth consecutive victory.

The undertaking allowed attending Audi engineers, designers, and product planners to take a deep dive into the extremes of American driving conditions, from a crowded New York City street through the Rocky Mountains, Red Rocks at Sedona, Death Valley to Mammoth Lakes (from altitude of minus 282 feet below sea level at Badwater Basin in the Valley to 11,000 feet in Mammoth Lakes), and finally down Pacific Coast Highway to Santa Monica.

This convoy of 23 silver Audi Q7s, Q5s, A3s, and A4s, dressed in nearly as many stickers as the R10 racing car, could not be missed. U.S. and international journalists and Audi engineers, designers, and executives got to see people over the country, talk to them about the car and the benefits of diesel, as well as gain firsthand knowledge of U.S. reactions. When the 3.0L TDI Q7 becomes available in the States next year, Audi will begin to see the results of the overall diesel communication strategy and education outreaches.

This was an astounding event in ambition, scope, and execution, and next week I'll be telling my driving story. Today, we're going to talk a little about diesel acceptance and Audi's positioning.

Continue reading "Exhaust Note #33: Audi Continues U.S. Diesel Education Program" »

Posted by Stephanie Brinley at 12:00 PM | Permalink | Comments (0)

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Are we nearing the end of Chrysler? Or the beginning of a new blended family? Or just another day at the rumor mill?
Late on Friday, the first stories began appearing about GM and Chrysler in possible merger talks. And at least in Detroit, dominated the weekend news cycle. GM's stock went up this morning, but given that the Dow was up 5.6% and GM went up only about 3%, the stock bump might have happened without merger talk. GM closed on Friday at $4.89, a number some say is actually less than the company would be worth in capital assets alone.

All of this merger talk, whether these deals are realistic or not, does nothing good for public perception. The economy is weak, last week's events on the stock market don't reassure anyone, and talking about GM and Chrysler perhaps needing to merge to survive only further erodes confidence in American business. While GM and Chrysler LLC, as well as any other maker in trouble right now, needs to consider even unthinkable options and test our common assumptions as they get out of this trouble, this merger does not inspire hope.

Continue reading "Exhaust Notes #32: More Detroit Merger Talk" »

Posted by Stephanie Brinley at 1:49 PM | Permalink | Comments (0)

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Oh, and Saab 9-7X, too
Last week was full of horrible sales results. The worst single month of sales since February 1993, in fact. In the midst of abysmal sales and the brouhaha to get the financial sector bailout passed, for better or worse, General Motors said production of the GMC Envoy and Chevrolet TrailBlazer will end in December 2008. This is two years earlier than once planned, though not much earlier than many guessed. Are you sad? Saying goodbye to a truly American vehicle?

We're not, really. The TrailBlazer and Envoy have come to their logical end, not for being badly drawn or executed products, but because the General's offerings today are better suited for real life. Envoy sales for 2008 are down 44.1% and TrailBlazer down 36.9%. In a tough economic situation where leasing and credit are more difficult to get and buyers seem perfectly happy to delay big-ticket purchases, why continue them for another year?

Continue reading "Exhaust Note #31: Goodbye, TrailBlazer and Envoy!" »

Posted by Stephanie Brinley at 3:35 PM | Permalink | Comments (0)

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Is there no end to the bad news this year? Mortgage crisis. Sky-high fuel prices. Financial institutions dropping like flies. A steadily warming planet. And of course, rapidly declining auto sales. The last time things were this bad, disco was in, aesthetics and design were taking a huge leap backwards, and we were all driving ugly, emasculated, smog-controlled cars that were a sad echo of the fast and passionately styled cars of just a few short years past. Yes people, I’m talking about the 1970s, an era that Jalopnik.com, one of our favorite fellow automotive blogs, refers to as the Malaise Era.

Continue reading "Exhaust Note #30: It’s the 1970s All Over Again! Or Is It?" »

Posted by Ed Kim at 11:50 AM | Permalink | Comments (0)

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Last week, General Motors wrapped up its centennial celebration. If one thinks about GM’s prominence on the world landscape, it’s easy to see just how significant of an event this is. Even if you’ve never owned a GM vehicle yourself, think about the company’s impact on the American and global economies and its products’ impact on popular culture. Can you imagine an America where Chevrolet didn’t exist? What if there had never been songs about GTO’s or Cadillacs? How about a world where the word Camaro was simply French slang for “friend” or a Corvette was just a small gunboat used to escort convoys?

Continue reading "Exhaust Notes #29: GM Celebrates 100 Years And…Hey, Where’s the Party?" »

Posted by Ed Kim at 3:56 PM | Permalink | Comments (0)

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There’s been a lot of talk over the last few days about a bailout for the Big Three. The Big Three have been struggling due to a lot of factors (fuel prices that favor smaller vehicles, the economy, labor and legacy costs, etc.) and some even posit that bankruptcy could be the only way out!

One of the issues at the center of the discussion is whether the Big Three deserve a bailout at all. Well, let us – your fearless VehicleVoice editors – attempt to put some clarity to this situation!

Continue reading "Exhaust Notes #28: Bailing Out the Big Three? It's Not a Bailout!" »

Posted by Ed Kim at 1:01 PM | Permalink | Comments (0)

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Hey, it's Labor Day. You're not going to spend it inside reading our ramblings on the state of the automotive industry, are you? Go have yourself a lovely day!

Posted by Ed Kim at 4:00 AM | Permalink | Comments (0)

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Last week, GM loudly trumpeted the pending arrival of the Chevrolet Cruze compact car, to be officially unveiled at next month’s Mondial de l’Automobile (that’s Paris Motor Show to us ‘Murricans). First, they unveiled photos of the car and then revealed the real thing at the Lordstown, OH plant where the car will be built for American consumers.

As earlier spy photos had suggested, the Cruze, which in the US will effectively be the next generation Cobalt, is a very handsome compact sedan. It’s as appealing as the Cobalt is appliance-like. There’s some real design going on here with a sleek profile and great surface tension and great interaction between the exterior’s various design elements. GM also promises a very intriguing efficient powertrain choice in the form of a tiny 1.4L direct injection turbo engine. This engine is rumored to produce at least 140HP (on par with much larger engines) while achieving 45 miles per gallon. It will also be among the first compacts available with a 6-speed automatic.

Continue reading "Exhaust Note #26: Don’t Just Cruze Along, GM; You’re Not Out of the Woods Yet" »

Posted by Ed Kim at 4:30 AM | Permalink | Comments (0)

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NextCruise was billed as a fun, eco-friendly addition to the gas-guzzling fun of the Woodward Dream Cruise. We were promised engaging displays, a glimpse into the future and the opportunity for some quality time behind the wheel of hybrids, clean diesels and alternative fuel vehicles. Did things pan out as organizers had hoped?

The future (clean diesel, in this case), craftily hides inside a Grand Cherokee.

Continue reading "Exhaust Note #25: NextCruise - How the Future Fared on Woodward" »

Posted by Katrina Ohlemacher at 1:06 PM | Permalink | Comments (0)

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Toyota announced today that in light of greatly diminished sales of the full-size Tundra pickup and Sequoia SUV, the company will start selling them on the international market. As with just about every other full-size pickup and SUV, these big Toyotas have suffered greatly at the hands of $4 per gallon gasoline. The situation is particularly troubling because most Tundras are built in a brand-new (and extremely expensive) purpose-built factory in San Antonio, Texas – smack in the middle of truck country.

It’s a rare stumble for the usually unimpeachable Toyota; the company had invested untold dollars in developing and manufacturing a true full-size pickup contender that could go toe-to-toe with the best of the Big 3 pickups, only to have the market for such vehicles tank in a matter of months. As the Tundra hadn’t built up commercial credibility yet (commercial users are a major source of full-size pickup sales), the truck was relying heavily on personal-use customers. With fuel prices being the way they are, personal-use pickup customers are the first to leave; they may want pickups, but they don’t need pickups. That being the case, demand for Tundra has collapsed.

Continue reading "Exhaust Note #24: Foisting Big Toyota Trucks on the World Market – Any Takers?" »

Posted by Ed Kim at 2:16 PM | Permalink | Comments (0)

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No doubt many of you have heard the news about the Domestic manufacturers pulling back from leasing. Chrysler has pulled out of leasing altogether effective August 1 while Ford and GM are significantly raising their lease rates on many vehicles, particularly trucks whose residuals are now in the tank.

What’s the rationale here, and what does it mean for the consumer? Well, let’s start off real quick with a one-paragraph explanation of leasing for the benefit of those of you who are still a bit confused as to what leasing is (it's ok to admit it - there are more than a few of us!). In a nutshell, when you lease a vehicle, you’re essentially paying monthly payments that add up to the difference between what the vehicle is worth new and what the car is pre-determined to be worth (residuals or resale value) when the lease term is up. This means that among similarly priced vehicles, those with higher resale values will generally have a lower lease price since the difference between the sales price and the pre-determined residual value at the end of the term will be smaller.

Continue reading "Exhaust Note #23: Dude, Where's My Lease?" »

Posted by Ed Kim at 12:40 PM | Permalink | Comments (0)

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I’ve just had no luck in getting you, our loyal reader, the sort of in-person coverage of the past week’s cool automotive happening that I’d been hoping for! You’ll remember that last week, a traffic accident that shut down a major freeway prevented me from bringing you the reveal of the 2010 Chevrolet Camaro. Since Thursday, I’ve tried and failed to bring you full reports from two other automotive happenings, which I’ll get back to in a minute. I might be good at forecasting the automotive market, but a resourceful automotive journalist I am obviously not!

Had things gone differently, this story would have brought you some pics and insight from me attending a panel discussion at 2008 Comic-Con in San Diego with the creatives behind Click and Clack’s As the Wrench Turns, a new animated TV series on PBS based on those lovable Tappet Brothers who have entertained and informed us about cars and car care on NPR for decades. I would have also told you about me being an audience member at the taping of the pilot for Top Gear USA, the American version of the world’s best car-related TV show – ever.

Continue reading "Exhaust Note #22: There be cars on TV!" »

Posted by Ed Kim at 12:26 PM | Permalink | Comments (0)

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What a disappointing day today turned out to be. I was supposed to represent VehicleVoice at Chevrolet’s unveiling of the long-awaited new Camaro up in North Hollywood this afternoon. Unfortunately, a three-car pileup on the I-5 North brought my northward progress to a halt, effectively making it impossible for me to get to the press conference. Beaten, I turned around and drove back to the office.

Continue reading "Exhaust Note #21: Is the New Camaro the Way Forward or a Wistful Diversion?" »

Posted by Ed Kim at 5:26 PM | Permalink | Comments (0)

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Does Alfa Finally See Their U.S. Dreams Come True?
In another example of automakers looking to partner and share synergies rather than swallow one another whole, Fiat and BMW entered into a memorandum of understanding to evaluation cooperative opportunities. They've formally agreed to talk about how, and if, they can help one another.

Alfa Romeo may have the most ego wrapped up into the outcome. Desperate to get back into the U.S. car market, Alfa wants the next-generation of the 147 be the lead volume product. They've further announced the intent to start building cars in the States in 2011CY, and have started looking for partners to make that happen as well. Technically they do return this summer with the low-volume 8C Competzione and next year with the convertible 8C, but Alfa's only building 1000 8Cs, including both bodystyles, for worldwide consumption. With only about 100 8C coupes being offered here, the image-building 8C doesn't make much of an impact on the market.

Continue reading "Exhaust Note #20: BMW and Fiat Consider Working Together" »

Posted by Stephanie Brinley at 11:49 AM | Permalink | Comments (0)

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After a lovely 4th of July weekend, doing my best to focus energies on anything not related to work (something I hear is easy for most people to do, but I've never quite got the knack of), I started my usual workday morning routine at my local Bally Total Fitness. And, sure enough, as soon as I get near the gym TV, there's the news, dragging me right back to 5:15 am Monday morning reality.

The 5 am scoop in Detroit was the rumor GM is considering dumping more brands, one way or another, and firing more mid-management white-collar employees. (No, UAW, you do not have the corner on losing jobs. I swear.) Of course, by time I was in the office and caught up with e-mail, GM has flatly denied that any brand, other than Hummer, is up for review. We'll only know the truth of that if GM manages to hold onto the seven remaining brands, and assuming Hummer is sold. Here's the thing: If GM is not considering reducing their brand count, they should be.

Rumors actually surfaced on this subject last week. In fact, I'm pretty sure it was on my way home to enjoy said holiday weekend that I heard an automotive journalist being interviewed for his opinions on the rumors and what GM should do opine that Saab and Saturn are the likeliest brands to go. Monday morning and it's groundhog day again. Between that interview and Monday morning, it turned into "news" that GM is considering selling those two brands. Says a lot about how quickly (and recklessly) rumors and speculation fly in this industry, but that's a story for another day.

Continue reading "Exhaust Note #19: Is GM Breaking Up?" »

Posted by Stephanie Brinley at 3:39 PM | Permalink | Comments (0)

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It seems that VehicleVoice, along with most other publications, are becoming overindulgent with conversations on how skyrocketing fuel costs are destroying our lives. On my way in to the office Friday, I heard oil broke the $140 mark. The situation isn't getting any better.

But, though I may be alone, I'm tired of talking about high gas prices. Really, really tired of the subject. Eye-wateringly-high gas prices are likely here to stay. We all know this, and new-car buyers are dealing with it. Most either by delaying a new-vehicle purchase or by buying something more fuel efficient, both options that add to the woes of a difficult industry, but the subject has been beat to death.

Was a $100,000-plus Chevrolet inevitable?

I'm pretty sure we'll talk about gas prices again, but this week we take a break from that painful subject. This week, Exhaust Note looks at the 2009 Chevrolet Corvette ZR-1, specifically at pricing of the supercar from America's heartland. We haven't driven it, but we can talk about pricing. This 638HP beast gets a base price of $103,300. Not including $1700 gas-guzzler tax but including destination charges. Really and truly. A Chevrolet with a base price above $100,000. And I bet you thought the Z06 had a notably significant base price when it launched for 2006MY at $65,800.

Continue reading "Exhaust Note #18: $117,000 Chevrolet, Anyone?" »

Posted by Stephanie Brinley at 8:04 AM | Permalink | Comments (0)

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There’s no doubt in anyone’s mind anymore: fuel prices have reached a level where people’s driving habits are beginning to change significantly. We at VehicleVoice have conducted our own research that quantifies just how much people’s attitudes towards driving have changed as a result of these high fuel prices. And indeed, my own habits have changed drastically.

You see, I’ve always loved driving. More than most other things. Ever since receiving my driver’s license, there has been nothing I’ve loved more than jumping into the driver’s seat and just driving. It didn’t matter where to, or whether I was alone or with others…I simply have always loved piloting a vehicle. Today however, fuel prices and my own personal views on oil issues have conspired to put the brakes on my old favorite past-time. Nowadays, I only drive when I have to. I combine trips and try not to make any unnecessary extraneous ones. Of course, I savor every moment of those necessary trips because those represent my times to simply enjoy being behind the wheel.

Continue reading "Exhaust Note #17: Driving…You'll always be #1 to me" »

Posted by Ed Kim at 7:00 AM | Permalink | Comments (1)

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Five Days without Power, and I Wonder...
Some terrific storms blew through the Midwest this week, with more to come today. Many areas have seen more dramatic devetastation, like the house in Wisconsin that literally floated away in a flooding lake, but Michigan's storms meant power outages across the region. Our local energy provider, DTE Energy, has been unimpressive in their effort to restore power to the 320,000 or so customers who lost service during storms over the weekend. By Friday, there are "only" 30,000 left without power. Unfortunately for us, we're in that number, with our restoration estimate just bumped to Saturday at midnight. I'm writing and posting this from my office, which never lost power.

It occurs, as I sit in my nice electrically air-conditioned office, typing on my electrically powered laptop, and about to post this story, that if I relied electric car, I wouldn't have been able to get to work today. Not after five days without a source at home for recharging the car.

Some have hope that electricity is a large part of the answer for vehicle transportation in a world of $4-plus gas and environmental concerns, on top of all the other things we rely on electricity for, with lots of interest in plug-in hybrids as well. While serial hybrids like the Chevy Volt would stand a chance in this situation, because it can use the gasoline engine for motive power and for recharging the electric motor, but what happens if you can't recharge your Tesla?

Continue reading "Exhaust Note #16: Electric Cars and Power Outages" »

Posted by Stephanie Brinley at 11:00 AM | Permalink | Comments (2)

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A few weeks ago, I was cleaning out my email inbox – something I’d meant to do for years – and happened upon one particular old email I had written to a friend in 2002 while I was vacationing in Germany. I spoke of my rental car, a Mercedes-Benz C180 (yes, that’s a C-Class with a 1.8 liter normally aspirated 4-cylinder and about 130HP), and how the fuel prices over there necessitated these fuel sipping engines in vehicles that we Americans think of as pretty upscale. Specifically, I referred to “Germany’s $4 per gallon gasoline” and its impacts on vehicle choice in that part of the world.

Continue reading "Exhaust Note #15: High Gas Prices Stink, But Don't Forget About the Tech" »

Posted by Ed Kim at 12:05 PM | Permalink | Comments (0)

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In-Car Advertising is Next

It's not really any surprise that in-car ads are coming, but we don't see them as an improvement in our driving lives. Conventional wisdom says our world is a never-ending rush of information and we live in a constant state of motion. We also don't really want to pay for information; information is supposed to be nearly free, and our access unfettered. Further, with all this information coming in, we don't really have time to bother sifting through it all.

Marketers to the rescue!

Newspapers, radio, TV, and the Internet have all taught us that information is cheap, it only costs the effort to sit through (or filter out) a few ads, and in-car infotainment systems are the next new advertising vehicle.

Under the guise of trying to be really helpful, advertisers are looking to reach you through your in-car navigation system. The software developers are pitching this as a way to offset further software development costs, make systems affordable, and as a workaround for monthly fees. The ability schedule an oil change from your car might be brought to you by Penzoil or Jiffy Lube. Or your hair appointment by Pantene. Or a search for a restaurant brings an ad for McDonald's.

In-car ads sound annoying at best and a drive distraction at worst, but living with that kind of clutter elsewhere hasn't slowed use in the slightest. Google and Yahoo list search results with sponsored links above non-sponsored, and it is an accepted part of the game.

Continue reading "Exhaust Note #14: Free Fries with Your Big Mac, Turn Left Now" »

Posted by Stephanie Brinley at 2:44 PM | Permalink | Comments (0)

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We're Not Taking a Road Trip, Are You?
Like most of the country, we're off on Memorial Day. Like many others, most of our vehiclevoice.com contributors will be staying close to home. With the national average at $3.87 on Friday afternoon, AAA tells us that the gas prices are causing about a 1% decline in the number of people traveling by car for the holiday. CNN even made up a new word to describe it: stay-cations. I, for one, hope that silly bit doesn't take hold in our collective slang.

AAA says the last time there was a decline in Memorial Day travel plans was in 2002, after 9/11, and this bucks a trend of increased travel. At that point, there was also some concern over fuel prices, the economy, and our future, though most to a less urgent degree than now. Last year, it seemed, people more or less felt they could shave some cost elsewhere on the trip to make up for it. This year, it appears more will opt to stay home. Anecdotally, our own Jim Hossack noted far fewer RVs traveling this year during his annual early May road trip.

The mood of the country seems to be understandably skittish; the economy is struggling, many homeowners are still dealing with the mortgage crunch, gas price increases are scaring people as well as confusing them, and, being an election year, there's the air of uncertainty regarding the direction of the next administration.

Deloitte & Touche also released stats on expected travel, indicating about 25% of Americans still planned to travel, but that about 12% had canceled plans because of fuel costs. Airline travel looks to be down as well, as increased fares and fees show up for airlines struggling with the same fuel-cost increases.

My thoughts: Fuel cost is impacting plans, clearly, but it seems to be the uncertainty as much as the cost itself. We don't know when these increasing prices will stabilize, we don't know who will be running the White House next year, and it seems all the economic news is bad. If the economy itself was sound or fuel costs were stable, people would be more likely to adapt and find a way to go where they wanted. In the midst of uncertainty, though, spending money on vacation seems like something we can put off for now.

What about you? How are you spending Memorial Day?

Posted by Stephanie Brinley at 10:00 AM | Permalink | Comments (0)

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