Straightline

No one's about to say that the automotive industry is out of the woods just yet (certainly not with current unemployment rates), but October 2009 sales numbers give reason for optimism, mainly because they look a lot like the October 2008 numbers.

General Motors recorded its first year-over-year increase in nearly two years, selling 177,603 vehicles (up 4 percent from October 2008). GM also notes that 95 percent of those sales came in its "core" brands (Chevrolet, Cadillac, GMC and Buick) -- not terribly surprising given that it doesn't build Pontiacs, Saturns, Saabs and Hummers anymore.

Ford was up 3 percent with 132,483 units sold, though its optimism was tempered by the fact that the Fusion is still the only Ford passenger car in positive territory for 2009. Chrysler sales weren't as bad as September's, but were still down 30 percent from Oct. 2008.

Toyota sold 152,165 vehicles, which is nearly identical to October 2008. And just like old times, the Lexus RX was one of the hottest sellers. Honda continues to struggle, though, as the Fit and Insight just aren't doing well.

Auto Observer: October Auto Sales Uptick May Presage the 'New Normal'

Continue reading Shades of Recovery in October 2009 Sales; GM Finally Up; Hyundai, Subaru Still Hot.

Categories: Auto Industry,Manufacturers

Ever the promoter, Jim Wangers promised us "a hokey little show" to accompany the unveiling of the reincarnated 1969 Pontiac GTO Judge being built by Big 3 Performance that will bear his signature.
 
Billows of smoke engulfed a garage door, from behind which came the rumble and roar of a big V8. The door opened and there was Wangers behind the wheel of an iridescent orange GTO, smiling like a kid of 23 (not 83), as the unmistakable prow of his latest automotive endeavor parted the smokescreen.
 
Wangers, as the logo on his golf shirt proudly proclaims, is the "Godfather of the GTO," based on the innovative marketing tactics (and at times pure hokum) he devised to enhance the high-performance image of the model created in 1965 by Pontiac's Russell Gee, Bill Collins and John DeLorean. The promotional campaign that Wangers managed so successfully tapped into America's love of fast cars that it ignited the muscle car craze of the 1960s. 

Continue reading 1969 Pontiac GTO Judge Jim Wangers Edition.

Categories: Carnival of Cars,Manufacturers,More Categories,Pontiac,Tuners and Modifications

At the swank "Rusnak Jaguar Reveals - A Night of Luxury" event at Universal Studios back lot on Saturday, we rubbed elbows with Miss California, Natasha Henstridge (Species), some actress from Desperate Housewives (not one of the wives) and even good ol' Scott Baio of Happy Days' Chachi fame. There were complimentary cocktails from Effen Vodka and Courvoisier as well as Maddalena wines to make things interesting for the well-heeled masses as they carefully negotiated the cobblestone streets. A cigar lounge welcomed those who wanted to puff on the free stogies from Cigars by Chivas. And at the end of the night, this "California chic" attired crowd enjoyed the Kevan Hall fashion show.

Yes, a fashion show. At first, we, too, thought that this seemed an odd thing to pair with a luxury car reveal. But then it made sense. Much like designer fashions, luxury cars connote high-quality and the best there is to be had. To own these items shows the world that not only do you have a well-padded bank account but that you possess exquisite taste. So it was no wonder that after each reveal of the 2010 Jaguar XJ, Porsche Panamera and the Rolls-Royce Ghost, party guests swarmed the luxo-cars for their chance to get in the driver seat; well, except the Ghost, whose doors remained locked. It was difficult to get close enough to the cars to even sniff their sumptuous leather interior, let alone check our reflection in their windows.

In any case, it was a fun albeit surreal way to see how enthusiastic the other half gets over cars.

More pictures after the jump.

Continue reading Rusnak Jaguar's Night of Luxurious Reveals.

Categories: Celebrities,Jaguar,Luxury Cars,Manufacturers,Porsche,Rolls-Royce

The expected slow September after Cash-for-Clunkers August came to pass, and you can get the full, brand-by-brand analysis on Auto Observer. Hyundai/Kia was the major bright spot, as the company continued its record-setting 2009 pace: It sold 55,134 vehicles -- a 26-percent year-over-year increase from September 2008.

Ford saw its year-over-year sales decline slightly, but was still encouraged by its third-quarter results -- sales were up 5 percent compared to 3rd-quarter 2008 and incentive spending decreased by an average of $1,400 per vehicle. Plus, the company's market share was 15 percent for September compared to 14 percent a year ago.

Among the exceptions for September was BMW, which saw its first year-over-year increase of 2009, selling 19,175 vehicles for an increase of 3.6 percent. The other manufacturer on its way to a record year, Subaru, recorded steady sales for September. It sold 14,593 vehicles for an increase of 1 percent (citing a 63-percent increase in Outback sales and +24% for the Legacy); Subaru is up 10 percent for all of 2009 with 158,421 units sold. Volkswagen saw a 1.5-percent year-over-year increase for September, selling 17,358 vehicles.

Finally, respectable Boxster and Cayman demand kept the Cayenne from dragging down Porsche, which sold 1,581 vehicles -- an increase of 8.4 percent.

Auto Observer: Automakers Eager to Move Past September's Tepid Sales

Categories: Auto Industry,BMW,Ford,Hyundai,Kia,Manufacturers,Porsche,Subaru,Volkswagen

Today President Obama spoke to the employees of GM's Lordstown, Ohio, plant, which just assembled the 1 millionth Chevrolet Cobalt. Obama apparently signed the hood of that particular Cobalt. He also sat in a Chevy Cruze, which Lordstown is ramping up to build.

"It was nice sitting in there," he offered. "It was a roomy car -- and it's going to get 40 mpg."

That was his segue into talking about fuel economy, as the EPA and NHTSA released the formal plan for achieving the 35.5-mpg CAFE (Corporate Average Fuel Economy) standard by 2016 today. The program will be progressively phased in, starting with a 30.1-mpg CAFE standard in 2012. By 2015, the standard will be 33.8 mpg, so there's a steep climb between 2015 and '16

Of course, as Green Car Advisor has explained, 35.5 mpg by CAFE rules does not mean 35.5 mpg by EPA rules. It's complicated math, but the short answer is that manufacturers will be able to meet the new standard with cars and trucks that average considerably less than 35.5 mpg.

More details, and a video of Obama's speech, after the jump. (Warning: The video autoplays.)

Above Photo: Elizabeth Conley / The Detroit News

First Drive: 2011 Chevrolet Cruze

Continue reading Obama Visits GM's Lordstown Plant, Formalizes 2016 Fuel Economy Standards.

Categories: Auto Industry,Chevrolet,Manufacturers

Bill Visnic analyzes the confirmed list of Frankfurt Auto Show debuts over on Auto Observer today and makes the suggestion that the sort of old-school luxury associated with big engines, rich interiors and large profit margins might end up being a casualty of our current economic times. In its place is a more rational, environmentally minded view of the top end of the market.

"How else to interpret the rash of hybrid-electric and pure-electric unveilings from the German automakers -- on their Frankfurt home field, no less --  the ones who long pooh-poohed any kind of vehicle electrification in favor of advanced diesel engines?" Visnic asks.

He points to the BMW Vision EfficientDynamics diesel-electric, plug-in hybrid concept, which balances its 356 horsepower with a claimed 63 mpg on the European test cycle, and the Mercedes-Benz Vision S500 Plug-In Hybrid that will supposedly haul to 60 mph in the low 5s while returning 74 mpg (Euro test cycle). And of course there's the Lexus LF-Ch, which is both a hybrid and a compact hatchback.

Then again, more traditional high-end cars like the Mercedes-Benz SLS AMG, Ferrari 458 Italia and Lamborghini Reventon Roadster will be on the floor, too. Are they still relevant?

Auto Observer: Frankfurt Motor Show: Enviro Plays, Luxury the Big Question

See the full list of introductions at the 2009 Frankfurt Auto Show

Categories: BMW,Concept Vehicles,Ferrari,Frankfurt Auto Show,Lamborghini,Lexus,Luxury Cars,Manufacturers,Mercedes-Benz

Have you ever laid eyes on a Spyker outside of an auto show? Lead Senior Editor Ed Hellwig has, as he drove out to Utah's Miller Motorsports Park for some track time in a 2009 Spyker C8 Aileron Coupe. While there, he also learned plenty about the Dutch automaker's history, which surprisingly, goes all the way back to the late 19th century.

After driving an Aileron with an Audi-sourced 4.2-liter V8, ZF six-speed automatic transmission and Lotus-tuned suspension, Ed confirms that the car starts, drives and does most of the things you'd expect of a high-dollar exotic (about $225,000).

However, judged against comparatively mass-production Ferraris and Lambos, it's not quite ready for prime time, he says. Check the first drive for a full discussion of the Spyker Aileron's faults and triumphs.

First Drive: 2009 Spyker C8 Aileron Coupe

Categories: Coupes,Luxury Cars,Manufacturers,Sports Cars

Yesterday on GM's FastLane blog, GM vice chairman announced a new ad campaign called "May the Best Car Win," noting that it would include a 60-day money-back guarantee. "In short, we're going to take away every last excuse not to consider a vehicle from Cadillac, Chevrolet, Buick and GMC," he wrote.

Today GM has issued a press release with a few more details. Apparently, if you buy a Buick, Cadillac, Chevrolet or GMC vehicle between now and Nov. 30 and decide it's not for you, you can bring it back, and a receive a refund for the purchase price, including sales tax. Any dealer accessories or negative trade-in equity rolled into the deal are not included. You have to try the car for at least 31 days but no longer than 60 days, and log fewer than 4,000 miles. All models are eligible, save for medium-duty trucks.

In addition, every vehicle will be backed by a transferrable 5-year/100,000-mile powetrain and roadside assistance coverage. (Of course, the basic warranty will still span only 3 years/36,000 miles or 4 years/50,000 miles, depending on the model.)

Look for more details on GM's consumer websites on Sunday. The program starts Monday.

Categories: Buick,Cadillac,Chevrolet,GMC,General Motors,Manufacturers

Updated

Yesterday Chrysler officially ended the Global Engine Manufacturing Alliance (GEMA), the alliance under which it, Hyundai and Mitsubishi developed the architecture for the 1.8-liter, 2.0-liter and 2.4-liter engines now used in cars like the Dodge Caliber, Kia Forte and Mitsubishi Lancer.

Hyundai and Mitsubishi have sold their interests in the Dundee, Michigan, plant. In actuality, neither Hyundai/Kia nor Mitsu has ever used a Dundee-sourced engine in any of its cars, Auto Observer reports. Each company has plants in its respective home market that can build the GEMA-developed engines. So, to date, the Michigan plant has only built four-cylinder engines for the Caliber, Chrysler Sebring/Dodge Avenger, Dodge Journey and Jeep Compass/Patriot.

With this announcement, Chrysler has now ended all development/manufacturing alliances with other manufacturers. If it weren't for Fiat, it would be all alone out there.

Auto Observer: Hyundai, Mitsubishi Out of Chrysler Engine-Making JV

Categories: Chrysler,Hyundai,Manufacturers,Mitsubishi

UPDATED

The news that Honda will build its new crossover at its East Liberty, Ohio, plant comes as no surprise, really, given that the 2010 Honda Accord Crosstour will be sold exclusively in North America.

Hidenobu Iwata, president and CEO of Honda of America Manufacturing, made the announcement today during a tree-planting ceremony to commemorate the 30 years Honda has been building cars in the U.S.

Engines for the Crosstour will come from Honda's nearby Anna, Ohio, engine plant. Presumably, those will be the familiar 2.4-liter inline-4 and 3.5-liter V6. The press release also says, "Honda's transmission plant near Russells Point, Ohio, will be the production site for its automatic transmission." Undoubtedly, that's a reference to the company's five-speed automatic, and we take this to mean that it's unlikely a manual gearbox will be offered in the Crosstour, even with a base four-cylinder engine.

There's also this line: "Going on sale this fall, the Accord Crosstour will be positioned at the top of the Accord lineup." Given that the 2010 Honda Accord sedan and coupe pricing ranges from $21K to $31K, we'd guess the Accord Crosstour will have a starting price around $25K. With a V6, we'd guess it would move up to around $30K.

Feel free to tell us what you think of our extremely guesstimated predictions.

Official Photos: 2010 Honda Accord Crosstour

Categories: Auto Industry,Crossovers,Hatchbacks,Honda,Manufacturers

Two weeks ago it seemed doubtful that General Motors would do a deal for Opel with Magna. Today, though, GM announced its support for the sale of a 55-percent stake in Opel (and British Vauxhall) to the Magna-Sberbank consortium.

Magna is the big Canadian parts supplier leading a Russian consortium that includes the state-owned bank, Sberbank, and the Russian automaker GAZ. In the deal, Magna and Sberbank will each get a 27.5-percent stake in Opel, while Opel employees will hold 10 percent, with GM keeping a 35-percent stake.

German Chancellor Angela Merkel expressed her approval over the deal. She's facing an election, and the Opel sale is a big political issue in Germany. Of the two bidders, Magna-Sberbank and the Belgian investment firm, RHJ International, the Germans preferred Magna, which is thought to be more amenable to preserving German manufacturing jobs (half of all Opel employees are based in Germany). The fact that Merkel promised government financial backing for a Magna-Sberbank deal is very likely what tipped this in the Russians' favor.

Under this deal, 10,000 jobs will be cut, but only a quarter will be in Germany. This has of course elevated concern among Vauxhall employees in the UK, which is Opel's second-largest country of operation.

All along, GM is thought to have preferred RHJ, which made a simpler bid. In addition, GM officials have expressed concern over the flow of intellectual property and product development responsibilities to Russia, which is apparently on the other side of the earth from Detroit.

GM will still be involved in product development under the Magna/Sberbank deal, though, as the Opel Insignia (Vauxhall version pictured) and Astra will continue to provide the basis for GM cars sold in the U.S. 

Reuters

Financial Times (sub.req)

Categories: Auto Industry,General Motors,Manufacturers,Opel

Chinese automaker Geely did indeed place a bid to buy Volvo in August, the company's CEO, Gui Shengyue, confirmed yesterday in an interview with the Financial Times. Geely is still thought to be the only serious bidder for Volvo.

Two sources close to the company estimate the size of the bid at just under $2 billion, which falls into the line with the $1.5 to 2 billion Ford is reportedly seeking. FT reports that Geely also wants to buy all of Volvo, which would seem to work well, since Ford wants to sell its Swedish subsidiary in one piece.

Financial Times (sub.req)

Categories: Auto Industry,Ford,Geely,Manufacturers,Volvo

Ron Bloom, leader of Obama administration's task force on the automotive industry, has been appointed to lead the administration's manufacturing policy as well. Over the weekend, President Obama named Bloom his senior counselor of manufacturing policy. Bloom, an investment banker with a strong union background, will be called upon to put the brakes on U.S. manufacturing jobs flowing overseas while continuing to lead the auto task force.

In a short statement issued Sunday, General Motors applauded Bloom's appointment to Senior Counselor.

"Manufacturing is essential to America's strength and economy and we applaud the President's appointment of Mr. Bloom to this important position. The President's recognition of Mr. Bloom's work is well deserved. His leadership within the Auto Task Force helped GM emerge from its restructuring a more strong and viable company in record time.

"We're confident Mr. Bloom's counsel and expertise also will benefit U.S. manufacturing on a broader scale. GM looks forward to his continued leadership in this expanded role."

Photo from Associated Press

Categories: Auto Industry,General Motors,Manufacturers

Edmunds.com continued tracking vehicle sales as usual while the Cash for Clunkers (i.e., CARS) program was active. But early on, our data analysts noticed they were coming up with different numbers than the Department of Transportation.

It turned out the government was keeping track by drive configuration as the EPA does to rate fuel economy. For example, it appears the government counted front-wheel-drive, all-wheel-drive and hybrid versions of the Ford Escape individually. However, as you'll see on the chart after the jump, even when calculating sales by drivetrain, the Edmunds numbers still differ from the DOT's.

Moreover, we also get different results for the top 10 models traded in under the CARS program.

Most puzzling of all are the inconsistencies in the government's own numbers: The overall  number of Cash for Clunkers voucher applications (690,114) submitted by dealerships is different from the number of clunkers the government said were turned in under the program (685,201), which, in turn, is different from the number of vehicles purchased (684,941).

Auto Observer -- New Math: Cash for Clunkers Numbers Don't Add Up

Continue reading Top-Selling Models in Cash for Clunkers: Edmunds.com vs. the Federal Government.

Categories: Auto Industry,Manufacturers

An August 2009 Consumer Reports survey is getting quite a bit of attention today. Among the 1,777 car owners CR phoned from July 30 to August 3 of this year, 79 percent said they are likely to consider an American-brand car. That compares with 51 percent who would consider an Asian-brand car and 37 percent who would buy European.

This survey is conducted annually, so it would be interesting to compare these percentages to last year's numbers, but we weren't able to dig up the 2008 results. (However, in a brand perception survey published in January 2008, Toyota and Honda finished on top by a wide margin.) CR has published the 2008 and 2009 percentage changes for buyers' likelihood to buy from Chrysler, Ford and GM, though: No surprise that Ford is up 10 percent. GM, meanwhile, is flat, while interest in buying a Chrysler has dipped 28 percent.

Lack of appealing product was cited for all three brands as a reason not to buy domestic. Buyers were also concerned about financial stability in the case of Chrysler and GM, and potentially low quality in the Chrysler and Ford lineups.

To the surprise of no one, price (49 percent) is the number one cited buying consideration among all respondents, followed by fuel economy (47 percent) and safety (42 percent)

Consumer Reports

Categories: Automaker Feedback,Chrysler,Ford,General Motors,Manufacturers