The last time a Mazda CX-7 stopped by the Motor Trend garage, it found itself in a three-way dance against the Subaru Forester XT and Volkswagen Tiguan ("Turbo Chargers," September 2008), where it finished second, behind the Forester. The appeal of a gas-thirsty turbocharged crossover is limited, however, and so when Mazda gave the CX-7 its midlife makeover for 2010, it threw in a naturally aspirated inline-four to the CX-7's lineup in an effort to broaden its appeal.
Available in two new trims -- base i SV and slightly-enriched i Sport -- the engine is the same 2.5-liter mill found in the Mazda3 and 6, but tuned to make 161 hp and 161 lb-ft in the CX-7. It's mated to a five-speed automatic, transmission and, unlike the turbocharged variant, is not available with all-wheel drive.
Our i Sport tester came equipped with several options, the biggest of which was the $1750 convenience package. It includes a power moonroof, power driver's seat, automatic climate control, heated front seats, and a rearview camera displayed via a new 4.1-inch color multi-information display. In a nav-equipped model, this doubles as the nav screen. Though the overall design of the interior is improved, the new screen is something of a step back. It's smaller than the old screen and recessed into the dash above the center stack, which makes it harder to discern details even though the new screen is clearer and has a higher resolution. The heated seats work great, but there's a downside to them, too. There's only one on mode, which results in rapidly toasted buns. In addition, our tester had a cargo net ($50), fog lights ($400), scuff plates ($145), and Sirius satellite radio ($430), for a total of $25,865.
First Test: 2010 Mazda CX-7 i Sport
First Test: 2010 Subaru Legacy GT
We've been hearing it for decades. "What sets our mid-size sedan apart from Camry/Accord is that ours is a sport sedan." Translation from market-speak is, it's got a leather-wrapped steering wheel and stiffer springs and shocks to mitigate short suspension travel, and its maker can sell nowhere near the 400,000+ per year each of Camry or Accord.
So it's refreshing to come across a mid-size family sedan that delivers the goods. Subaru's new Legacy GT, delineated from quotidian naturally aspirated H-4 and H-6 Legacys, is a WRX for grownups. Yes, Subaru did this with the last-generation Legacy, there was even a B-spec. Now the 2010 model has a back seat for grownups, thanks to the Legacy's 3.2-inch longer wheelbase, 3.2-inch taller body and its extra 3.6-inches of width.
Shoulder room is up 4.2-inches in front and 2.4 inches in back, for example. The EPA says interior volume totals 103 cubic feet, versus 90.9 for the '09 model, and the trunk is now good for 14.7 cubic-feet, up from 11.4.
Downside is styling. The last Legacy was one of the cleanest designs in this class. Now it looks gawky and ill proportioned, a retrograde step not unlike the one the Impreza took a couple of years ago. It's a much more striking step back for the Legacy sedan than for the Outback based on it.
Inside, the GT is purposeful and high quality, though not quite as upmarket and modern as Subaru would like to claim. As a smaller niche brand, Subaru is semi-premium in its home market, and here it would rather sell against Acura than against Honda. "This wood is too sparkly, glittery," Frank Markus says of the GT's dash trim. It could use a bit more of the polish of the Outback's similar interior. Texture/color options shouldn't make this sort of difference.
You won't care about this quite so much as you're tossing it around a canyon road. First, there's the power; the turbo-four propels the Legacy GT from zero to 60 mph 0.2-seconds quicker than the slightly heavier and more powerful Toyota Camry SE V-6, which has front-wheel-drive. It's 0.9-seconds quicker than an AWD Audi A4 2.0T and will easily beat either in covering the quarter mile: the Legacy GT's time is 14.1 seconds at 98.8 mph. Like the smaller WRX, the Legacy's turbo four is more spirited, more willing to rev than a typical six, though of course you will have to wait for the turbo to spool up in very low-rpm tight corners.
First Test: 2010 Mazda3i Touring Sedan
As you've surely seen by now, the 2010 Mazda3 has hit the streets with a spring in its step and (literally) a smile on its face. The redesigned front end may be the easiest place to look if you're trying to tell the difference between a new Mazda3 and an older one. Up front, there's a large grinlike (yes, grinlike) area, said to allow for more cool air intake than in the previous model. And it isn't the only thing about the car that has changed: every bit of sheetmetal is new, in fact, and the chassis is now stronger and lighter. Wheelbase is identical, but overall length is up by a couple of inches. In addition, the interior has been given a significant redo, and the lineup benefits from a new engine and new transmission options.
Since the first time behind the wheel of the new 3 at Mazda's initial launch nearly a year ago, we've had opportunities to test the Speed3 and the 2.5-liter-motivated hatch. This, however, was the first time we were able to take the base model out for a spin-and we got some performance numbers while we were at it. When it first arrived, the original Mazda3's 2.0-liter engine put out 148 horsepower and 135 pound-feet of torque-and it still does. However, the transmission choices have improved. The base 2.0-liter sedan comes backed by a five-speed manual; our i Touring was equipped with the five-speed automatic, a new option with this engine.
While this source of power hasn't changed all that much, the new transmission option makes a big difference, providing more gears than its newest competitor, the all-new Kia Forte, and matching what's available in the rival Honda Civic. This five-speed also allows manual shifting, which is a nice bonus at this price point. Off-the-line acceleration won't break any records, but there's plenty of power coming from the four-cylinder (and a nice, sporty engine note), and steering was very good. The ride was pleasantly compliant on rough roads, yet the Mazda3 is just as sporty and fun as ever when driving on twisty two-lanes. Not only that, but at freeway speeds, the 3 sedan was surprisingly quiet. At the track, the smallest Mazda3 reached 60 mph in 8.8 seconds (for reference, a comparable Kia Forte sedan we tested took 10.3 seconds) and ran through the quarter mile in 16.7 seconds at 83.1 mph, also faster than the Forte. From 60 mph, it came to a stop in 136 feet.
2010 Subaru WRX STI Special Edition
A touch of JDM suspension tuning flair will soon be making its way to the U.S.-market Subaru WRX STI lineup the form of the 2010 Subaru STI Special Edition -- a model developed by Subaru's famed Subaru Tecnica International high performance subsidary. If you aren't quick enough to get your hands on one of the first 125 units, don't worry: Subaru is making the STI Special Edition a regular part of the lineup after the special edition goes on sale in Spring 2010.
To be officially unveiled at the 2009 Los Angeles Auto Show, the STI Special Edition is a slightly more enthusiast-focused machine that forgoes some of the usual creature comforts in favor of upgraded suspension components from the Japanese-market Subaru WRX STI spec C.
The STI spec C lends its stiffer rear sub-frame bushings, retuned springs, and 1-mm thicker rear stabilizer bar to the STI Special Edition. The WRX STI's 305-hp turbocharged 2.5-liter Boxer four is unchanged, and as you'd expect on a car like this, it's hooked up to Subaru's six-speed manual transmission. But the Special Edition forgoes the STI's HID headlights in favor of halogen units, its 10-speaker sound system is replaced with four-speaker unit, and manual A/C takes the place of the automatic climate control.
Passersby won't be able to discern the STI Special Edition by its 16% stiffer front springs or 29% stiffer rear shocks, but the unique Aspen White color should be a clue. If you can't tell the regular STI's Satin White Pearl from the Aspen White, focus on the 18-in. seven twin-spoke wheels. The charcoal-colored rims -- also taken from the spec C -- would be attractive in silver but are especially eye-catching against the white paint.
The rest of the package is standard STI spec, including the highly customizable powertrain and handling settings. The STI-specific AWD system lets the driver pick among three automatic performance modes plus six manual center differential locking settings. Stopping power is made easy thanks to four-wheel Super Sport ABS disc brakes from Brembo.
A base 2010 WRX STI starts at $35,690 (including destination) -- don't expect the STI Special Edition to stray too far above that mark. The car's exact price will be announced at the L.A. show. This model is set to become part of the permanent STI family and is probably as close as Subaru enthusiasts can expect to get to a U.S. version of the STI spec C.
First Drive: 2010 Porsche Boxster Spyder
Tossed out the window -- no, out the open cockpit, actually -- are the radio, the air con, conventional door pulls, and more. Porsche says the result is a weight savings of 176 pounds over the Boxster S, making the new Boxster Spyder, at a claimed 2800 pounds, the lightest model in the maker's production-car lineup.
Perhaps stung by criticisms of "diluting the brand" (i.e., Porsche sport/utes and the new Panamera four-door), the iconic German speed factory has countered with a sporting piece nearly as pure and purposeful as James Dean's 1955 550 Spyder. As such, this newest, fastest Boxster also qualifies as the most toy-like model in the range, a pricey plaything for perfect days and writhing roads -- and almost exclusively so. How long would the Spyder's charms last, I wonder, without refrigerated air and the diversion of a radio during a long stop-and-go commute on a blistering summer day? (Not to worry: If you're feeling "unpure," you can pile on A/C, radio, nav, and whatever other options you like.)
So, no, in basic "stripped" form the Boxster Spyder isn't an ideal daily driver; you'll want to be rich enough to own one as your second or third car. Ah, but for those days that call for a leather jacket and driving gloves...
In addition to the jettisoned A/C and radio, the Spyder features aluminum doors (saving 33 pounds), lightweight sport bucket seats (saving 26 pounds), an aluminum rear deck (saving 6.5 pounds), and the lightest 19-inch alloy wheels in the Porsche catalog. Also changed over conventional Boxsters are the side windows -- they're lighter and lower -- and the soft top, which for Spyder duty is a manually erected affair that's little more than a handkerchief for blocking the sun (the lid, which stows away above the engine, isn't even waterproof; indeed, Porsche admits it won't stand up to a car wash).
2011 Ford Mustang V-6
Ford was caught with its engineering pants down when the base Chevrolet Camaro got GM’s high-feature V-6 (we told you so) and not the 3.5-liter pushrod. While the Camaro SS, with its small-block V-8 is selling well in its first year, typical of high-profile new models, the RS and base V-6 strike at the core of Mustang’s volume sales. And so for 2011, Ford’s 4.0-liter V-6, originally built in Cologne, Germany, eons ago, is finally out.
The new Mustang V-6 is Ford’s first rear-drive application of its familiar 3.7-liter with twin-independent variable cam timing. The Mustang 3.7 includes aggressive deceleration shutoff, piston-cooling jets, polished valvetrain tappets and electric power steering and transmits its power through six speeds, automatic or manual.
And the numbers are impressive: Ford claims 305 horsepower at 6500 rpm, 280 pound-feet at 4250 rpm and 30 mpg with the automatic, on the highway. “We are the only ones who can provide 30 mpg and 305 horsepower,” says Barb Samardzich, Ford’s global powertrain vice president. What’s more, redline is now a Honda-like 7000 rpm.
For those of you keeping score, the Mustang’s new V-6 is 0.5-liters smaller and 41 pounds lighter than the lump it replaces, it has 95 more horses and it’s 2 decibels quieter.
In addition, Ford will offer the V-6 Mustang with a performance package, featuring the GT’s suspension with high-performance brakes, summer tires on exclusive 19-inch wheels and vehicle stability control. Ford figures it will be popular with Mustang’s younger buyers (read, “growing out of the Civic Si”). So the next Mustang-Camaro faceoff won’t just be about 0-60 and quarter-mile, it’ll be about which one can go furthest on a tank of gas, as well.
2010 Range Rover Sport Autobiography
When buying a 510-hp supercharged Range Rover Sport seems too plebeian, perhaps the newly unveiled 2010 Range Rover Sport Autobiography Limited Edition would suit you better?
Like the Range Rover Sport Supercharged, the Autobiography Limited Edition -- debuting at the Los Angeles Auto Show -- is refreshed for 2010. That means much more powerful engines and tweaked styling. This special edition adds to that package (and to the base price, of course), enhancing the SUV's design inside and out. The effort is most eye-catching on the interior, where two-tone leather is available in three color combinations. An Autobiography Sport logo can be found in the front and rear headrests, as well as on the wood door panels. We see the interior changes improving an already posh cabin.
Santorini Black is the only exterior color for the 250 Autobiography Limited Editions, which are all equipped with 20-in. Diamond-Turned alloy wheels and a unique grille. The look is more subtle than the attractive 5-spoke wheels available on the regular Supercharged model. The Limited Edition also gets beefier-looking exhaust extensions, something Land Rover should consider implementing on the rest of the line when sales of the Range Rover Sport begin to falter.
Like the identically powered Range Rover Sport, the Limited Edition will sprint from 0-60 mph in 5.9 sec.Included in the Limited Edition are a number of otherwise optional features like an electronic rear differential lock, adaptive cruise control, HD radio, and a rear seat entertainment system with 10-in. displays mounted in the back of the front seat headrests. Altogether, a regular Range Rover Sport with these options would cost around $80,000. Factor in the extra equipment and exclusivity of the Limited Edition and you are left with its $88,545 price, including $850 for destination.
If you're already set to pay this much for an SUV, why not go all the way?
First Drive: 2010 Lexus GX 460
For those who feared that the Lexus GX would go soft and join the ranks of the unibody RX, you can rest easy. At a time when the crossover seems to have taken over the SUV world, the 2010 Lexus GX 460 didn't give in to the trend. Undergoing its first major redesign since it was introduced in 2002, the GX continues on as a body-on-frame vehicle, sharing its highly revised platform with the new-for-2010 4Runner.
While the new GX's dimensions have changed slightly, its wheelbase remains identical to what it has been since the 2003 model year. Overall length is up one inch due to a longer front overhang, it's also 0.2 inch wider, and, even though ground clearance remains unchanged (on Premium models), overall height is down 2.5 to 2.9 inches depending on model. And despite the fact that the GX's wheelbase is the same as that of the 4Runner, the Toyota is longer, about an inch and a half wider and lower, and its track is nearly an inch wider.
ven though a lot is shared underneath, you can't tell from looking at them that the Toyota and Lexus are related. The new GX looks significantly different from the earlier GX as well, with its most noticeable new styling cue being the exaggerated rear fender flares which look as if they were pulled from the LX 570. The front fascia has been cleaned up, the roof rack made smoother and more aerodynamic (cross rails are now a dealer option), and the rear end is cleaner and less cluttered. Both the door handle and window button for the rear cargo door are hidden (even the rear wiper is now out of sight), tucked neatly under the rear spoiler. Overall, the GX looks more sculpted, more muscular.
First Drive: 2010 Lexus ES 350
Okay, the Lexus ES isn't the most exciting luxury sedan money can buy. Those who want spectacular handling should look at a BMW 3 Series or an Infiniti G before the ES. However, Lexus' entry-level sedan is the best-selling vehicle in the automaker's car lineup and near the top (behind the 3 and the G) in its class in 2008. In addition, the ES was given a major redesign for 2007, so the changes are only minor for 2010.
On the outside, there are a few styling revisions: a new grille, headlights, bumper with new foglights, and taillights. The side mirrors, revised for 2008, now come with integrated turn-signal lights. There are two new wheel designs as well, both 17-inch.
Those who enjoy the experience of the ES will not be disappointed with the 2010 model. As was the case before, power comes from a 272-horsepower, 254-pound-foot DOHC 24-valve 3.5-liter V-6 with dual variable valve timing, backed by a six-speed automatic. This is still the only engine/transmission choice, and the ES continues to be front drive only. When we tested the 2009 ES, it reached 60 mph in 6.5 seconds and took 127 feet to stop from that same speed, and we have no reason to believe the performance would be dramatically different for 2010-even though Lexus estimates its 0-to-60 time to be 6.8 seconds.
Also not all that different from 2009 is the way the car drives. This is more freeway cruiser than canyon carver, and it seems everything about this car is more biased toward a smooth ride than making the driver's heart beat faster. Acceleration is quick off the line without being startling, and transmission shifts are nearly imperceptible. When taking turns at speed, the suspension is soft, and there is some body roll. However, twisty roads are not where the ES does its best work. Where the sedan really shines is in driving comfort on straight roads. Lexus wants to make sure you don't feel too much road irregularity, and the suspension does a fine job of keeping that unpleasantness out of the car.
First Drive: 2010 Mitsubishi Lancer Evolution MR Touring
Listen here, sonny, that ex-rally racer known as Evo is all grown up. It goes by MR Touring now, but you'll know that the minute you see it. That ridiculous wing? Gone. A subtle, age-appropriate lip spoiler takes its place so there's no more guessing about the cop pacing behind. Inside, the Recaro racing seats are now lined in leather -- and heated to boot. A full color LCD now rests between the gauges and not only delivers more information (because of higher resolution), it's easier on the eyes. They've even put a powered sunroof in the thing -- a first for an aluminum-roofed Evo.
So this MR Touring definitely looks more mellow and certainly has additional creature comforts, but does this mean the mighty Evolution has gone soft? Limp even?
Not one bit.
Bilstein dampers and Eibach springs still suspend the MR Touring, so the crisp handling clarity has diminished not one iota -- even with the 30 extra pounds the Touring package adds. And that glass sunroof? Though it puts weight up high, you can't feel the Touring roll any more than a regular Evo -- which ain't much. Steering feel and ride quality have not changed either; the MR Touring still rides on rails without feeling like it's snorted a few too.
It's not as fast though -- it's faster. Running upgrades to the TC-SST six-speed dual-clutch transmission mean all new MR Evos are apparently the fastest of the 10th generation. Mitsubishi claims the MR and Touring will consistently hit 60 mph in under five seconds. A bold claim (and one we'll have to test) since the last dual-clutch Evo we tested (2008 MR) managed only a 5.2-second blast.
What we do know is that, in Sport and Super Sport modes, the Touring we drove still drops rev-matched downshifts like a mechanized Makinen. Even better, TC-SST trans served up quick, yet velvety smooth shifts around town, at low speeds -- something few of these fancy dual-clutches seem to be able to manage. At this price point, the Evo has arguably the best dual clutch on the market.
GENEVA PREVIEW: New Alfa to take a bow
Ailing Alfa Romeo, which has seen its sales fall from a peak of around 203,000 in 2000 to fewer than 100,000 last year and has been losing money for the past decade, is pressing ahead with the launch of its new Giulietta next spring.
The new car, which replaces the 147 hatchback, will make its world debut at the Geneva motor show next March, Alfa Romeo announced on Wednesday. 2010 marks the centenary of Alfa which Fiat acquired 23 years ago.
The car was originally going to be called the 148, then the Milano after Alfa's home city but that name was dropped amid fears that many Alfa workers are likely to lose their jobs.
Media reports this week suggested that other new models might be canned or switched to Chrysler platforms and built in North America as Fiat boss Sergio Marchionne tries to reconcile his loss-making divisions.
Alfa Romeo said that sales of the new model will start in spring and be gradually extended to all major markets.
The Giulietta name is a tribute to an automobile legend which in the 1950s caught the imagination of generations of car enthusiasts, making the dream of owning an Alfa Romeo accessible for the first time.
The car incorporates new vehicle architecture and includes a next-generation steering system, a rigid yet light body made of aluminium and high-strength steel, and numerous on-board electronic systems.
Three settings (dynamic, normal and all weather) are available and can be selected using the 'Alfa DNA'. This device - standard across the entire range of the new models including the recently launched entry level MiTo - modifies the operating parameters of the engine, of the steering system, and of the electronic differential, in addition to fine-tuning the stability control system.
Four turbocharged engines will be available at launch, all Euro 5 compliant and fitted with a standard start/stop system for reducing consumption and emissions: two petrol units (1.4TB - 120hp and 1.4TB MultiAir - 170hp) and two diesels (1.6 105hp and 2.0 170hp, both belonging to the second generation of JTDM engines). Finally, the range is completed with the lively 1750 TBi - 235hp with an exclusive Quadrifoglio Verde configuration.
LA SHOW: Wraps off US Ford Fiesta
Ford on Wednesday launched US-specification versions of the European designed Fiesta at the Los Angeles motor show, claiming its first all-new model in the subcompact sedan and hatchback market in years would "redefine US small car customers' expectations".
While European buyers are offered a mix of petrol and diesel engines with manual, automated manual or automatic transmissions, US buyers will be offered just two drivetrains combining a 1.6-litre I4 DOHC petrol engine with a 'PowerShift' six-speed, dual dry-clutch automated transmission or a conventional five-speed manual 'box with electric power steering
Like some European Volkswagen model lines, the automated transmission version actually gets better fuel mileage than the manual - it's projected to deliver best-in-class highway fuel economy of 40mpg according to Ford.
"Fuel economy leaders have traditionally been manual shift models," said the automaker's transmission team leader Pierro Aversa. "[The] six-speed automatic delivers maximum fuel economy."
Standard equipment will include a claimed segment-exclusive 'Sync' voice-activated communications system.
The Mexican-built model line will launch in 2010 as a 2011 model in four-door sedan and five-door hatchback body styles matching Toyota's Yaris (which also comes as a three-door and competing with other imports such as the Honda Fit (Jazz) and Nissan Versa (Tiida) already on sale in North America.
Ford claims the Fiesta will also offer 15 "class-exclusive technologies".
"Customers are savvy. They want expressive cars that deliver not just great fuel economy but also high quality, new technologies and a fun driving experience," said Ford president of The Americas Mark Fields. "We plan to answer the call with Fiesta; an all-new vehicle in North America we hope will set a new standard for small cars."
The automaker said the US launch of the Fiesta is the next milestone under its so-called ONE Ford plan to design and develop vehicles that meet the differing needs, wants and expectations of customers world-wide. More than 500,000 current generation Fiestas have already sold to customers in Europe and Asia - European-built cars are exported as far away as Australia and New Zealand. Thai production will begin in 2010 for Asia-Pacific markets.
Ford has been heavily promoting its new small car (previous attempts to crack the small car market have included the ill-fated US-designed and made Pinto, launched in 1971, and first generation Fiestas imported from Germany in the mid-1970s) with its 'Fiesta Movement' promotion with 100 'social media mavens' chronicling their experiences of driving European market Fiestas (shipped in from Germany last March) on American roads.
According to the company, the promotion has has generated over 675,000 Flickr views and over 5.5m YouTube video views.
US versions will have dual-stage first-row air bags, a class-exclusive driver's knee air bag, side air bags and side curtain air bags. AdvanceTrac with electronic stability control is also standard.
Trim and equipment are competitive with US market rivals which are usually somewhat less well specified than their model-for-model equivalents here in Europe to keep the Stateside price down.
"For North America, the global Fiesta was tweaked, not re-designed or re-developed." said chief engineer Steve Pintar. "We built on the success of the European Fiesta and are really proud of how little has changed."
Standard and optional equipment includes the aforementioned Sync, integrating a mobile phone with the voice- activated communications and entertainment system, keyless entry and push button start, another claimed segment-unique feature. Adjustable cup holders can accommodate Red Bull cans and Big Gulps along with every container size in between, the automaker was at pains to point out.
The Fiesta also has Ford's 'EasyFuel' capless fuel filler system, a North American industry-exclusive (first introduced here in Europe to prevent diesel version drivers accidentally refuelling with petrol) as standard equipment.
LA SHOW: California first in line for Chevy Volt
Chevrolet on Wednesday unveiled the US version of the GM-Daewoo-designed Cruze at the Los Angeles show.
General Motors described it as "a popular global car refined for America" and said the Cruze was expected to achieve segment-best fuel economy - up to 40 mpg highway - thanks to its new family of small-displacement engines, including a flagship Ecotec 1.4-litre I4 turbo unit which will eventually be built in the US.
Chevrolet claims the new car has a more spacious cabin and greater cargo room than the rival Honda Civic and Toyota Corolla models sold in North America.
Ten standard air bags help make it one of the safest cars in its class, the automaker added.
Assembly for the US and Canada begins - after a US$350m investment in the facility - at Lordstown, Ohio, next year (pilot production cars were clearly visible in newscasts of President Obama's recent visit to the factory) and the Cruze goes on sale in the third quarter with a five-year/100,000-mile powertrain warranty.
"Cruze is already a hit across Europe and Asia; and now, it's coming to America to challenge the status quo," said Chevrolet brand chief Brent Dewar. "Along with the Volt electric vehicle, Cruze is the latest tangible example of how Chevrolet is working on exciting products that range from gas-friendly to gas-free."
The Cruze will be offered in LS, LT and LTZ trims with 1.4-litre turbocharged or 1.8-litre petrol engines and six-speed automatic or manual transmissions.
Electronic stability control with rollover sensing, Bluetooth, USB connectivity and navigation system, XM Satellite Radio and OnStar telematics, 16-, 17- or 18-inch wheels, anti-lock brakes, and electric power steering will be available standard or optional.
"There's a lot of content in all Cruze models; it was designed to give customers the features they want regardless of the car's size or segment," said Brooks.
"At a very competitive price, you'll be able to get a Cruze with leather and heated front seats, 16-inch aluminium wheels, XM satellite radio, OnStar, Bluetooth, a USB port for your iPod, cruise control, power locks and power outside mirrors."
Instruments and interior control are lit in ice blue with light-emitting diodes (LED) and a driver information centre - rare in this class in North America is standard.
COMMENT: Situation vacant at GM - never a dull moment
You can maybe see where GM's board is coming from with the Fritz Henderson situation, but I'm not convinced it looks well handled. Sure, Henderson was a 'GM guy' but he had steadied the ship in the recent unprecedented and rocky times.
A smooth transition might have been the preferred route, GM quietly on the lookout for someone external - a 'name' - to take the CEO role on a permanent basis and elevate GM to a new level, galvanise the whole firm the way Mulally has at Ford. Maybe Henderson could have dropped hints that he would step down from the CEO role 'soon', but that he would carry on in a supportive capacity of some sort in the future if that was appropriate.
Yesterday's abrupt departure looks clumsy. What does it say? Even that was not communicated very clearly: 'all involved agree that changes needed to be made' was what the official statement, albeit hurried, said. Thanks for that.
The downside to losing Henderson like this is that it will not play well with a sizeable body of GM's employees and dealers who will be concerned about possible instability. Henderson was seen as a very capable technocrat and stabilising influence; he was trusted by many inside GM. Perhaps that was precisely why some wanted him out, to quicken the process of change and to create a viable GM on a shorter timescale than current progress suggested. Seems a bit unfair though - what could be done more quickly? Where is the foot-dragging?
GM needs a blend of old and new in its top management; you absolutely need people who know the car business and have valuable experience mixing with talented people from outside the biz with good business brains (behind Mulally at Ford are people highly acquainted with Ford and the car business, like Mark Fields).
Is GM getting the balance right? I guess the GM board is well aware of these arguments and has decided change is more important than continuity at this point. Perhaps Henderson wouldn't let go of the reins quietly and it therefore had to come to this. Maybe he wanted the big job on a permanent basis and had become difficult to placate.
It is a bit messy though and it makes you wonder about the politics that goes on behind closed doors. A lack of clarity on why Henderson has suddenly gone and what it means won't help.
I wonder how many people fancy that GM CEO position on a permanent basis? It is one very hot seat and you would be capped on remuneration, but it would never be dull...
GERMANY : Mercedes to build C-class in US
German production of the next-generation Mercedes-Benz C-Class due out in 2014 will be moved from Sindelfingen to Bremen while US production will be at the company's Tuscaloosa, Alabama, factory, Daimler said on Wednesday.
The move would allow Daimler to save EUR2,000 (US$3,000) per vehicle thanks to "lower salary levels" in the US, operating director Rainer Schmueckle told a telephone press conference.
Though SL assembly would, "in return", be transferred from Bremen to Sindelfingen and employment levels there "will be maintained", the move will see 1,800 workers building the current C-class at Sindelfingen redeployed within Daimler, the automaker said in a statement.
"As part of various initiatives, the remaining approximately 1,800 employees affected will be offered attractive employment opportunities. With those measures, employment of the Sindelfingen C-Class employees can be maintained."
"It is very important for us to provide our employees with a clear and stable outlook for the future by optimising the allocation of resources in our production network, by strengthening the competencies of the respective sites, and by means of alternative working arrangements," Daimler labour chief Wilfried Porth said.
Daimler has previously used its Brazilian plant, originally built in the mid-1990s for the first generation A-class, to assemble North America-bound C-class sedans from CKD kits shipped from Germany but this will be the first time the popular compact model line has been assembled in the US.
Brazil ended C-class sedan output in 2006 but production of the three-door C-class sportscar was subsequently transferred there from Sindelfingen early in 2007, again using CKD kits produced in Germany. M-B Brazil aimed to boost local content to 35%. Brazil remains the sole source plant for that model, a Mercedes spokeswoman confirmed on Wednesday.
Tuscaloosa currently builds large SUVs and crossovers designed primarily for North American markets though a proportion is exported worldwide.
Earlier this week, German media said Sindelfingen employees had specifically asked the company not to move the C-Class to the US - the workers' council claimed that would put about 3,000 jobs in Sindelfingen at risk.
Mercedes-Benz Cars chief Dieter Zetsche said: "Germany is and will remain at the heart of our production network.
"In connection with the launch of the next generation of the C-Class, important preparations will be made in the period from 2014 on so that Daimler maintains its competitiveness, utilises the growth opportunities presented around the world, and is able to protect jobs in Germany over the long term.
"We are aware of our Sindelfingen employees' great emotional attachment to the C-Class and we recognise the outstanding work that they perform every day. So this decision was not made easily. But this step is essential for strategic and operational reasons, so that Mercedes-Benz remains competitive and can fully utilize future growth opportunities."
Daimler said building the C-Class closer to its markets (the current model is also assembled in China and South Africa) will "make Daimler more independent of exchange rates, will optimise its profitability in this price-sensitive segment, and will allow it to fulfil regional customer requirements even faster and more flexibly.
Zetsche added: "This decision will also help to protect employment at our sites in Germany over the long term."
The Sindelfingen plant will become a central technology and research facility for Mercedes-Benz Cars and also a worldwide 'competence centre' for the production of premium and luxury cars , increasingly with alternative powertrain systems, Daimler added.
Production of European market C-Class sedans and of all other C-class model variants would be concentrated at Bremen and that plant would become the competence centre for that high-volume series, it said.
In order to increase production by about 20% from 2014, SL roadster assembly would be transferred from Bremen to Sindelfingen that year.
"The expanded production of the C-Class will protect the jobs of the workforce in Bremen in the long-term," the automaker said.
Production of Mercedes-Benz compact cars (A- and B-class) would remain concentrated at Rastatt.
Daimler reiterated it had recently affirmed its clear commitment to production sites in Germany and said it would invest about EUR3bn at its domestic passenger car locations in 2009 and 2010.
Daimler said US production would account for under 20% of the total C-Class model range. Tuscaloosa, too would receive further investment. As well as adding the C-class, the plant will continue to produce the R-, M- and GL-Class models. The plant produced 152,561 vehicles in 2008.
Mercedes-Benz sold around 251,000 cars in the United States last year, compared with global sales of about 1.13m vehicles. This year's sales to the end of November were down 19.4% to 184,477 units, according to WardsAuto.com data released on Wednesday.
Daimler said the production reshuffle reflected changes in its markets and sales regions.
"Due to the projected demographic developments in the United States, the automobile market in that country will further strengthen its already important role, opening up additional growth opportunities," it said.
"To make optimal and competitive use of those opportunities, it is essential to have production facilities of the high-volume C-Class close to the market.
"The sedan version of the series is already the best-selling Mercedes-Benz model in the US."
"Due to the tough competition in the C-Class segment, it is extremely important for us to optimise our production costs for the future," added Mercedes-Benz Cars chief operating officer Rainer Schmückle.
"This applies not only to our direct production costs, but also to the import-duty and logistics advantages of each production site.
"But it is just as important for us to be able to offer alternatives to the Sindelfingen C-Class employees affected by this decision in order to maintain their employment. We are convinced that our concept fulfils this criterion."
In March 2008, Daimler's German-based rival BMW said it would spend $US750m expanding its own southern US plant to boost production capacity from 160,000 to 240,000 units by 2012.
The Spartanburg plant would grow 60% to 370,000 m², and 500 new jobs would be created, BMW said at the time.
"The expansion will also lead to a hike in purchase and export volumes into and out of the NAFTA region, which will contribute considerably to the BMW Group's natural hedging strategy," the automaker said then.
After the expansion, Spartanburg will make the X3, X5 and X6 models for world markets and the Z4 sportscar production would be made in Germany - the model line has been made mostly in the US since the first generation was launched in the 1990s.
"Centralising our know-how for X models in Spartanburg will enable us to work even more efficiently going forward. In addition, it was a logical step for the BMW Group as a global player to increase production capacity in its largest market," BMW board member Frank-Peter Arndt said in 2008.
November light vehicle sales up 9%
Bearing in mind that year on year comparisons are now against the latter months of last year when US industry volume were tanking due to the summer fuel price spike and the credit crisis, November's light vehicle sales, adjusted for selling days, were up 8.9% to 744,669 units, according to WardsAuto.com data.
Year to date volume was off, however - 23.8% to 9,375,624 versus 12,303,321 after 11 months of 2008.
The three Detroit automakers collectively were up 1.5% to 335,064 units last month, reflecting black ink on sales analysts' spreadsheets at GM (+6.7% to 150,705 units) and Ford (+9.6%; 121,334) but red digits across at Chrysler (-19.3%; 62,992). New CEO Marchionne has recently announced plans to address that, however.
Year to date, the Detroit automakers were down 29.1% to 4,181,343 with individual falls ranging 18.3% (Ford) to 38.1% (Chrysler). GM was off 31.8%.
In import land, Asian brands were up a healthy 16.2% to 349,152 in November, beating the Detroit Three on both unit volume and growth. YTD volume was down 19.3% to 4,507,363 cars and 'light trucks'.
The Germans, too, were up, by 8.9% to 60,453. YTD? Off 16.2% to 686,918.
Against the lower base of November 2008, Hyundai's US sales soared 58.6% to 28,047 while affiliate Kia, just ramping up its first North American assembly plant, managed a 28.5% hike to 17,955. Both were also up YTD, Hyundai by 6.2% to 401,267 units and Kia at +7.8% and 279,015.
Turning to the bigger fish, Toyota's 133,700 (+11.5%) was second last month only to GM but it remained top seller year to date at 1,582,289 (down 23.8%).
Honda was up 5.5% last month with 74,003 sales (-22.3% to 1,043,641YRD), and Nissan was up 31.2% to 56,288 in November, and down 21.7% to 696,699 YTD.
It was win-some-lose-some at Porsche which, reflecting its recent slew of new or updated models, was up 28.3% to 1,626 units last month (but down the most amongst the Europeans at -26.4% to 17,578 YTD).
Volkswagen's November sales rose 18.9% to 23,060 (-6.6%; 266,753 YTD); Daimler was up in November (+18.8%; 17,495) and down YTD (-19.4%; 184,477) and BMW up just 0.5% to 18,272 for the month and off 22.5% to 218,110 for the year so far.
That, today's Financial Times Deutschland said, was due mainly to a drop in Mini deliveries by almost 44% year on year to 2,564 units though sales of the core BMW brand, however, posted annual growth of 3.2% to 15,708.
The individual model pecking order remained unchanged - as usual - with Ford's perennial F-series at the top (365,416 units year to date) followed by the Toyota Camry (321,878) and the F-series' arch-rival, Chevy's Silverado (283,243).
Top Detroit car line this year so far? Ford's Fusion - currently sixth with 161,819 sales.
LA SHOW: Toyota launches Prius plug-in hybrid
Toyota on Wednesday launched its long-awaited Prius Plug-in Hybrid vehicle (PHV) at the Los Angeles motor show.
Built specifically to support a global demonstration program that begins this month, the Prius PHV is based on the third-generation Prius. The vehicle expands Toyota's Hybrid Synergy Drive technology with the introduction of a first generation lithium-ion battery that enables all-electric operation at higher speeds and longer distances than the conventional Prius hybrid.
When fully charged, the vehicle is targeted to achieve a maximum electric-only range of approximately 13 miles and will be capable of achieving highway speeds up to 60mph (96km/h) in electric-only mode. For longer distances, the Prius PHV reverts to "hybrid mode" and operates like a regular Prius. This ability to use all-electric power for short trips or hybrid power for longer drives alleviates the issue of limited cruising range encountered with pure electric vehicles, the automaker said.
Beginning later this month, a total of 350 vehicles will be delivered in Japan and Europe to support programmes with business and government partners aimed at raising societal awareness of, and preparedness for, the new technology.
Beginning early next year, 150 vehicles will start arriving in the US, where they will be placed in regional clusters for market/consumer analysis and technical demonstration.
On the consumer side, the US programme will allow Toyota to gather real-world vehicle-use feedback to better understand customer expectations for plug-in technology. On the technical side, the programme aims to confirm, in a wide variety of real world applications, the overall performance of first-generation lithium-ion battery technology, while spurring the development of public-access charging station infrastructure.
All vehicles will be equipped with data retrieval devices which will monitor activities such as how often the vehicle is charged and when; whether the batteries are depleted or being topped off during charging; trip duration, all-EV driving range, combined mpg and other factors.
"This programme is a necessary first step in societal preparation, in that it allows us the unique opportunity to inform, educate and prepare customers for the introduction of plug-in hybrid technology," said Irv Miller, TMS group vice president, environmental and public affairs. "When these vehicles come to market, customers must understand what to expect and if this technology is the right fit for them."
In October, Toyota announced its first regional programme partnership with Xcel Energy's SmartGridCity program in Boulder, Colorado. Ten PHVs will be placed with local residents who will participate in an interdisciplinary research project coordinated by the University of Colorado at Boulder Renewable and Sustainable Energy Institute (RASEI), a new joint venture between the US Department of Energy's National Renewable Energy Laboratory (NREL) and the university.
RASEI, Xcel Energy and TMS will use this programme to gather data on vehicle performance and charging patterns, consumer behaviour and preferences, as well as electric utility/customer interactions. The locale offers the additional benefit of monitoring high altitude, cold climate performance of Toyota's first generation lithium-ion battery.
Additional partners will be announced soon, Toyota said. Regional programmes are currently slated for California, Washington DC, New York, Oregon and Pennsylvania. Each placement area will have a variety of 'use cases' or driving conditions to gain maximum input to vehicle performance and customer needs.
To assist with customer education, Toyota has launched a PHV demonstration program website to enable consumers to learn about the technology, follow the programme's progress and, once the vehicles are deployed, track the performance of the demonstration program fleet.
"This transparent communication of vehicle performance and real world data will allow customers to make informed decisions when considering the purchase of a plug-in hybrid vehicle."
The battery powering the Prius PHV is the first lithium-ion drive-battery developed by Toyota and its joint venture battery production company, Panasonic Electric Vehicle Energy (PEVE). In early November, PEVE began producing the first of more than 500 lithium batteries on a dedicated assembly line at its Teiho production facility in Japan.
PEVE is the world's leading producer of nickel-metal hydride batteries for automotive drive applications, having surpassed 2m units in total production volume. Toyota maintains that nickel-metal batteries (used in its standard Toyota and Lexus hybrid models) are ideal for mass producing affordable conventional hybrid vehicles due to their low cost, excellent quality, high reliability and moderate-demand charge-sustaining operation.
Lithium-ion batteries, on the other hand, are more promising for pure electric and plug-in hybrid applications which require higher energy density to meet the higher demands of charge-depleting operation (large swings in charge/discharge). And, although lithium-ion batteries are less expensive in terms of materials, they are more expensive than nickel-metal in terms of production costs.
This first-generation lithium battery has undergone more than three years of coordinated field testing in Japan, North America and Europe in a wide variety of climatic environments and driving conditions. Using approximately 150 conventional hybrids (mostly Prius), the field test vehicles logged well over a million combined miles. In the end, the battery was deemed both reliable and durable, confirming that it could indeed be used in conventional hybrid applications in the future, depending on further developments in cost reduction.
The battery will now be placed into service in the 500 Prius PHVs dedicated to Toyota's global demonstration programme which begins in December. Operating in a more severe charge-depleting mode, the battery's overall performance in a broad range of vehicle-use applications will be confirmed.
GM to evaluate Saab 'interest' by year-end
In a statement issued late on Tuesday (1 December), General Motors' Board of Directors has said that it has received 'expressions of interest in Saab' and will evaluate potential bids between now and the end of December.
At that time, GM said it will 'determine whether a suitable arrangement for Saab exists. If not, we will then begin an orderly wind down of the global Saab business.'
BAIC - also involved in Koenigsegg's recently withdrawn bid to buy Saab from GM - is widely tipped to have expressed interest again, though doubts persist over whether it can put together a credible bid in time and satisfy concerns at GM over technology transfer and rights.
The Swedish government has said that it could make loan guarantees available again to a prospective new owner, though it has ruled out taking a stake.
GM's Henderson 'ousted'
General Motors Chief Executive Fritz Henderson is leaving the company amid reports that he has been ousted by the GM board, which met yesterday (December 1).
Chairman Ed Whitacre is taking over as interim Chief Executive, according to a GM statement, in which he said that the GM board accepted Henderson's resignation
Whitacre said in the statement that 'Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change'.
However, the statement went on to say that 'while momentum has been building over the past several months, all involved agree that changes needed to be made'.
Whitacre said he will begin working in the Renaissance Center headquarters on a daily basis and said that the leadership team 'are united and committed to the task at hand'.
GM's daily business operations will 'continue as normal', the statement said.
"The board decided - and Fritz agreed - that given where we are, it was time to make some changes," GM spokesman Chris Preuss said at a hastily arranged news conference.
GM's board also decided at its meeting today to give Saab a stay of execution. It said it will evaluate expressions of interest by the end of the year and wind the brand down if a suitable buyer isn't in place.
It's not clear exactly what has triggered Henderson's abrupt departure following the board meeting.
Some analysts believe that GM needs an outside talent to galvanise the firm for rapid change the way Alan Mulally has apparently succeeded at cross-town rival Ford. Henderson, they say, is seen as 'old guard' GM and was always supposed to be an interim appointment following former CEO Wagoner's enforced departure during the Chapter 11 crisis earlier this year.
However, Henderson was thought by many to be growing into the job which he seemed in no hurry to leave.
