Archive for March, 2010

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This week’s theme is all about commercial vehicles. The commercial grade sector is often a tranquil market with very few product upgrades happening on a yearly, sometimes decade, long basis. Though, in the past few years, the competition has started to heat up in the commercial cop car, full-size van, compact van and heavy-duty pickup segments.

The Week in Car News:

  • Cadillac distances from GM to avoid bankruptcy stigma [link]
  • All-new 2011 Kia Optima [link]
  • New Malibu renderings [link]

Clip of the Week

2010 Lexus Hybrid Commercial: ‘Milestones’

Tweetmeme:

Joel relives the chatter on tweeter involving Jim Sikes’ 2008 runaway Prius.

Talking Points

Commercial vehicles sales are a big part of America’s automotive industry. Commercial fleet sales make up about 30% of yearly industry sales and there are about 11 million commercial vehicles on the road today. As the retail industry has grown ultra competitive over the past 40 years, the commercial fleet segment has stayed relatively quiet up until today. Now, with new foreign a domestic arrivals, the new competitive battlefront is in this segment.

We go over four key vehicle markets in the commercial segment, specifically:

Cop Cars:

  • Ford Police Interceptor/ Chevrolet Caprice PPV/ Carbon E7/ Dodge Charger

Full-size Vans:

  • Nissan NV-Series/ Iveco Daily/ Vauxhall Movano/ Mercedes Sprinter/ Ford Transit

Compact Vans:

  • Ford Transit Connect/ Nissan NV200/ Fiat Diablo

Heavy-duty Trucks:

  • GMC Sierra HD/ Ford Super Duty

Listen, Comment and Enjoy!

For additional information visit AutoBird and Accelerate Minneapolis

Images By: Andrew Walensa

Cop Car Wars [UPDATE]

March 15, 2010 by Colin Bird

briefcaseAB_CopCarChoice

A couple months back I wrote a post about the developing battle for the heart and soul of the American cop car market.

My previous post had one gaping hole – Ford’s Crown Victoria replacement. After all, GM, Chrysler and Carbon Motors are all vying for Ford’s lunch; you’d think the blue oval would have enough experience to deliver a formidable contender.

Last week we got our answer, Ford’s “purpose-built” 2012 Police Interceptor will be the automaker’s contender in the hotly contested market.

The new Police Interceptor takes a 2010 Ford Taurus and slaps on a police package – really not much here that’s “purpose built.”

Police-specific features include performance-tuned steering and a heavy duty suspension; bigger brakes, a beefed up alternator and cooling system; a shifter that’s mounted on the instrument panel to make room for two-way radio, mobile data terminal, navigation and audible/visual warning control unit and heavy-duty seats to accommodate fully “equipped” officers.

Ford didn’t mention anything about a heavy-duty transmission or any other engine modification which many competitors offer.

The Ford Police Interceptor will be equipped with the same two engines found on the civilian Taurus. The base model gets the 3.5-liter V6 producing 263 horsepower and 249 lb-ft of torque. The Taurus SHO’s 3.5-liter V-6 twin-turbocharged engine is also available: producing 365 horsepower and 350 ft.-lb. of torque. The base 3.5-liter will be available in both front and all-wheel drive. The turbocharged model will be available in all-wheel drive only.

Competition:

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So now that Ford has thrown down the gauntlet, is it enough to beat the new competition? The Ford Crown Victoria is the number one selling police vehicle for 15 years and counting. However, the Ford Crown Victoria has consecutively lost market share since the mid-2000’s, basically ever since Chrysler started selling the Dodge Charger police package. In 2008 Crown Vic market share stood at about 54%, with the Chevrolet Impala grabbing 35% and the Dodge Charger taking 11%.

The Chevrolet Impala, long derided by highway patrol men everywhere as a doggedly slow pursuit vehicle, will be replaced by the purposed-built Chevy Caprice PPV. The Caprice comes standard with 355 horsepower, 6.0-liter V8 engine with 384 lb-ft of torque mated to a heavy-duty six-speed automatic transmission for 2011. The V-8 is expected to offer best-in-class 0-60 acceleration. A V-6 engine will also be offered beginning in the 2012 model year. The dash is compatible with the latest in-dash touch-screen computer technology.

The 2010 Dodge Charger will be available till the end of this year, when a new Dodge Charger will go into production. It remains to be seen if Chrysler will remain as a contender in the future cop car wars.

Ford’s Police Interceptor may also have to compete against the well equipped Carbon E7 (pictured above). If this thing is built, it will be a cop car halo vehicle. The car features 250 horsepower, 3.0-liter turbo diesel, with 400 lb-ft of torque. This car also features a high-tech in-dash touch-screen computer, 360-degree built-in police-duty LED lights, suicide doors and a washable, hard plastic rear compartment. Carbon claims that its vehicle is the only purpose-cop car that meets 97% of law enforcement requirements. The company already has 12,500 reservations for the E7 from 350 law enforcement agencies across the US.

Still, the Carbon E7 may never be built. The company is still waiting for the Department of Energy to approve a $310 million loan it needs to get started. The company has started hiring for its factory in Indiana – it expects to hire 1,550 workers in all.

Verdict:

The Ford Police Interceptor has very obvious weaknesses compared to its up and coming competition. Out of the bunch, it’s the only front-wheel drive vehicle. Like I said earlier, police agencies have commented on the Chevrolet Impala’s poor pursuit performance. This could limit the Police Interceptors desirability amongst highway patrol men. The Impala has always done well in snow-belt urban areas, so maybe that’ll be where the Ford Police Interceptor can play up its strengths.

The twin-turbo charged V6 could prove to be an admirable cruiser, but will it be cheap enough to compete with the V8 Charger and Caprice?

Visibility is also an issue. The current Taurus is already criticized for its poor visibility – I would image that to a cop being able to see potential criminal activity is sort of a big deal. Many people also criticized the move from body-on-frame to unibody, but since all the competition is unibody that is something that will not be detrimental.

However, against its competitors, the Ford also has some remarkable strengths. The Taurus, as a domestically produced car, already has an established parts supply.  Ford already has established relationships with almost all police departments. Ford has the largest base of long-term existing law enforcement contracts of any car company in America. These personal relationships and the existing contracts could give Ford the upper hand in wining new contracts on price, convenience and sustainability.

The Ford Police Interceptor has the biggest trunk out of any of its contenders, at 20.1 cubic feet. The Ford also has the potential of being the most fuel efficient out of the bunch, but just because this is a front-wheel drive vehicle doesn’t make that certain.  The Taurus gets 18 mpg city/ 28 mpg highway in front-wheel drive formats and 17 mpg city/ 25 mpg highway in all-wheel drive – keep in mind that the police modification will hurt fuel efficiency. Regardless, if the Carbon E7 is ever built it will be more fuel efficient than the Ford – the company states 30 mpg on the highway.

The biggest thing Ford did to ensure keeping its Crown Victoria buyers is to keep the same space in-between the front seats on the Police Interceptor. Ford did this by reducing seat bolstering. What this does is allow departments to use the same console and mounts from existing Crown Vics. Buying new center terminals is a huge expense that Ford just allowed its existing customers to circumvent.

The Chevy Caprice PPV will be built in Australia, which could raise operating expenses. Also the Caprice has a console mounted shifter. For cops, this is a big no-no. By having a console mounted shifter cop agencies will have to buy new center consoles or mounts that can accommodate the shifter.  All other competitors put the shifter on the steering column. The Dodge Charger is built in Canada, which doesn’t really effect price or parts availability. Chrysler was out of the cop car market for more than a decade so the company is still reestablishing its government law enforcement sales force.

Carbon Motors, while the best cop car, is probably too expensive and too much of an unknown for many law enforcement agencies.

When I started this post, I never thought I’d say this, but it looks like the Police Interceptor (Taurus) has a pretty good chance of winning the next-gen cop car wars. Now we’ll just have to wait and see whether this crossover Explorer Police Interceptor can compete against the Tahoe.

Image by: Andrew Walensa

More pictures below:

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This Week in Cars: 03.07.2010 – 03.13.2010

March 14, 2010 by Colin Bird

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03.07.2010

  • Saab 9-3 sees price drop for 2010 [link]

03.08.2010

  • Ford expands no-interest financing [link]

03.09.2010

  • Toyota may expand Tundra frame recall [link]
  • Cadillac distances from GM to avoid bankruptcy stigma [link]
  • Audi saves Volkswagen’s year, sees 2010 improvement [link]
  • Toyota, GM take lumps at Oscars [link]
  • BMW’s spring financing offers released [link]
  • Certified pre-owned face numerous challenges [link]
  • Mitsubishi to make 100,000 EVs for Peugeot-Citroen [link]

03.10.2010

  • 2011 Nissan NV full size commercial vans released [link]

03.11.2010

  • Some aid to GMAC will never be repaid [link]

03.12.2010

  • 2012 Ford Police Interceptor unveiled [link]
  • Pricing announced for 2011 Nissan GT-R [link]
  • Renault-Nissan-GM alliance could rev up global auto sector [link]

03.13.2010

  • All-new 2011 Kia Optima unveiled (picture above) [link]

Clip of the week:

The 2011 Runaway Prius. Have you considered a Ford lately?

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Since China is, and likely will remain, the largest car market on the planet – “By the Numbers” will now extend to our Sino neighbor.

In February, sales of cars, commercial vehicles, SUVs, trucks and buses topped 1.21 million in China, a 46.40% increase from last year.

Excluding commercial vehicles (buses and commercial grade trucks), China sold 942,900 vehicles to its citizens – that’s up 55% from last February. Passenger car sales are about 17% higher in China when compared to USA’s 780,265 units sold in the same month.

According to Waverly Advisors, while China’s sales are dramatically less than January’s (chart above) it’s still considered to be profound growth due to the nature of February in Chinese society. The Lunar New Year’s is the most important holiday for the Chinese. The two week long holiday reduce sales prospects by as much as 30-40% according to Waverly, and yet sales were up nearly 50% from last New Year’s.

The top three passenger car sellers in China remained Shanghai Volkswagen, Shanghai General Motors, and FAW-VW, according to morningpost.com.

For GM, sales of the new Chevy Cruze (13,515) and Chevy Spark (10,405) have been better than expected. Ford moved 4,857 of its new Fiesta and 59,362 of the vehicle since it was launched in the country. Chrysler sold a measly 1,234 vehicle in the country, but, then again, Chrysler only sold 10,405 vehicles outside North America.

While there were big winners in China, many automakers also suffered. Beijing Hyundai, Changan Ford Mazda, and Chery, suffered a 40%-plus month-on-month drop in sales volume. Dongfeng Kia and Changan Suzuki also fell by 25%.

Toyota’s sales fell to 45,400 units in February from 72,000 in January, according to the Associated Press. Toyota has announced a 0% financing scheme similar to the one announced in the US. Toyota is also offering gas coupons worth $13 USD and $140 USD discounts on car insurance to win over buyers. Toyota is suffering from recall hangover in China, the same as in the US.

According to Waverly, Beijing has hinted that it will continue to support the auto industry through distortionary market incentives. China’s Ministry of Industry continues to place pressure on the market to create 500,000 green vehicles by 2013.

Source: Associated Press

Graph Source: Waverly Advisors

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This week’s theme on the AutoBird Podcast is the “Cult of Toyota.” We talk about those diehard Toyota fans and what Toyota is trying to do to keep them loyal and mobilized for use on Twitter and Facebook.

Along with Joel Feder, we have a very special guest joining in on the conversation, Michelle Naranjo. Michelle is a big deal on Twitter, she’s also the founder of MissMotorMouth.com and a regular on the RoundAbout podcast.

This Week in Car News:

  • Hyundai removes Jeff Bridges voiceovers from Oscars ads [link], [video]
  • Ford number one brand/automaker in America for Feb. [link]

Tweet Meme:

Joel and Michelle go over the Twitter reaction towards Lutz’s announced retirement from GM.

Talking Points

We chat about some of the production/ concept vehicles of the 2010 Geneva Auto Show:

  • Opel Flextreme GT/E [link]
  • Mitsubishi ASX [link]
  • Lexus CT 200h [link]

The Cult of Toyota [link]

We discuss Toyota’s aggressive push into social media, largely focused on abating the negative criticism bubbling around the recall situation. We discuss whether or not Toyota’s attempted cult of personality has had, or will have, any effect on its public image.

Listen, Comment and Enjoy!

For additional information visit AutoBird, Accelerate Minneapolis and MissMotorMouth.com

Images by: Andrew Walensa

Download this episode

A Positive Toyota News Story

March 8, 2010 by Colin Bird

briefcase

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I decided to give Toyota a little break and post some of the positive news that’s coming out of the beleaguered automaker. Despite all the negative press, Toyota seems to be persevering, and might even have an unexpected sales rally in March. Here are some reasons why.

Advertising:

According to the Associated Press, Toyota has initiated a new TV ad campaign that pushes the idea that Toyota customers remain loyal. This campaign comes after the automaker’s $1 billion ad push in Q4 2009. There is very little mention of recalls in the new TV spots, as the company is trying to redirect the corporate message towards the company’s stronger points, namely relatively good customer service, resale value and safety, recalls excluded of course.

The campaign started on March 2, and will go through until April 5. One example given by the AP is an ad featuring a baby boomer couple who just bought two brand new Toyotas in February, during the heat of the recalls. Mark Murphy, the buyer of the vehicles, says “These cars that we’ve had have been exceptionally safe.” Of course he’s only owned them for a few weeks, but so far so good.

Other commercials feature Toyota dealership employees thanking customers for their support and loyalty (example above).

Marketing analysts are giving Toyota props for the direction of the ads. Troubled brands need to focus on their strengths to reestablish corporate identity, and, in my opinion, dwelling on the company’s deficiencies on television can only damage perceptions further at this point.

Incentives:

Many automotive analysts believe that a part of the tepid industry-wide sales performance in February was due to Toyota buyers sitting on the sidelines, waiting for Toyota’s huge incentive push.

It’s probably a good thing they waited, because these incentives are in unprecedented, Domestic-like territory for Toyota. The automaker claims this is their first far-reaching sales program in its history.

Starting at the same time that the ad campaign began, and ending on April 5th, the program includes financing, leasing and customer loyalty offers. Toyota is offering

  • 0% APR financing for up to 60 months on the models affected by the pedal recall. Also included was the Yaris, unaffected by the recalls but experiencing poor sales nonetheless,
  • Very low lease rates on said vehicles, but also on the Venza,
  • Complimentary two-year premium maintenance program for new buyers. Items in this package include 24-hour roadside assistance, oil changes, fluid inspection checks, etc.

Since the announcement of the incentive, Edmunds has seen a dramatic 40% increase in purchase intent on Toyotas on their website.

Hybrids:

Toyota also remains, by a wide margin, the largest producer of hybrids in the United States. Even with Toyota’s sacred cow—the Prius—entangled in recall hell, Toyota’s hybrids sales have continued to improve. For the month of February, Prius sales were up 10.2%, and overall Prius sales are up 11.6% for the year. Toyota has sold a total of 23,147 hybrids since the beginning of 2010. While that’s a 2.5% drop from last year, it’s better than Toyota’s overall yearly sales performance of -8.7%.

Last week at the Geneva Auto Show, Toyota unveiled a new dedicated hybrid model that should further advance the automaker’s goal of doubling its hybrid lineup by the end of 2010, and offering a full hybrid lineup by 2020.

The Lexus CT 200h is a production intent vehicle, which will make it to American shores sometime in early 2011.

The CT 200h is a small, dedicated hybrid hatch. It features the Prius powertrain, which is a 1.8-liter inline-four gasoline engine mated with a 650V electric motor. For a Lexus, this is sort of an earth-shattering development. The Lexus HS 250h was given a bigger 2.4-liter four-cylinder, which increased performance but damaged gas mileage (35 mpg combined vs. 50 mpg on the Prius). The new Lexus hybrid has a smaller wheelbase than the HS 250h and Prius, which means that it may have less interior volume and a lighter curb weight. This makes me believe that the CT 200h will have similar gas mileage to the current Prius.

From a marketing perspective, the mantra has always been that luxury buyers will not compromise on performance. Given the lukewarm reception of the HS 250h, maybe the CT 200h is Toyota’s attempt to test this belief?

Also expected is a Sienna hybrid, a compact Toyota branded dedicated hybrid, and a plug-in Prius hybrid within a 12-18 month time frame.

More Pictures below:

Read the rest of this entry »

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Once again, I was invited onto the illustrious RoundAbout podcast. This week’s theme is “Less is More.” Throughout the episode we talk about the Geneva Auto Show and the worst concepts that were unveiled at the event:

For the Blind Spot of the week we discuss an innovative way to spot potholes. Zach Bowman talks about his time with the Cadillac CTS Sportwagon. We wrap up with a Stupid Car Trick: it’s a small boy and his $40,000 Chevrolet Camaro SS that his daddy bought him.

This week’s group includes Zach Bowman, Dalibor Dimovski, Eric Trytko, Craig Cole (host) and Ben Sanders (producer).

Listen, Comment and Enjoy

For more information visit RoundAboutShow.com

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02.28.2010

  • Ford can’t get labor savings [link]

03.01.2010

  • Two Toyotas earn IIHS Top Safety Pick [link]
  • Jeff Bridges voice-overs removed from Hyundai’s Oscars blitz [link]

03.02.2010

  • February car sales up 13.3%: Ford number 1! [link]
  • Geneva Motor Show wrap-up [link]
  • GM’s Reuss takes bigger role in sales [link]
  • GM recalls 1.3 million compact cars [link]
  • Toyota hopes 0% financing will lure customers [link]
  • Poll says 31 percent of Americans believe Toyotas unsafe [link]
  • U.S. considers brake override system [link]
  • Daimler, BYD to develop electric vehicles jointly in China [link]
  • NHTSA has only five electrical, one software engineer [link]

03.03.2010

  • 2011 Ford Mustang V-6 to get 31 MPG [link]
  • GM names new VP of communications [link]
  • Toyoda got it right in China [link]
  • NUMMI’s pension plan being taken over by U.S. guaranty fund [link]

03.04.2010

  • Chrysler promotes two execs [link]
  • Auto veteran Bob Lutz to retire from GM [link]
  • Global car sales weakened last month [link]

03.05.2010

  • GM to give 600 dealers another chance to sell its cars [link]
  • GM to pay Vice Chairman Girsky $5 million [link]
  • Toyota owners file 60 complaints after recall fixes [link]

Clip of the Week:

Note: Apparently one of the gymnast severely hurt their ankle during the production of this ad.