April 7, 2010
Daimler AG, Renault SA, Nissan Motor Co. The German company led by Dieter Zetsche is cozying up to Reanualt-Nissan's Carlos Ghosn to develop future powertrains, small cars and commercial vehicles. All well and good on paper - and in theory anyway - because cutting development costs of the horrendously expensive fuel-efficiency technology needed to compete going forward has become paramount to these manufacturers, and global alliances will become standard operating procedure from here on out. The limited scope - at least initially - of this agreement is probably a very good thing, because it prevents the kind of organizational train wreck from happening like when Daimler attempted to "run" Chrysler. It's 50-50 we'll be writing about this alliance ending three years from now, but if that's the case the way the deal is structured will prevent any kind of chaos. Then again it could work just fine and the alliance could grow in scope too. We'll be watching.
Hyundai. From the "Looming Hubris" File comes word that Hyundai is starting to actually believe its press clippings. Too Many Kudos + Too Much Talking To Themselves + Too Much Infatuation With the Sounds of Their Own Voices = a giant kimchi bowl of Not Good. It's a formula we've seen played out repeatedly in this business over the last three decades and the big question remains: Why do these car companies actually think they're immune from the same mistakes that befell all the rest?
VW. From the "Looming Hubris" File, Part II, comes word that VW executives have officially suspended all semblance of (dealing with) reality. Actually this is nothing new and come to think of it there's no "looming" about it because VW execs have always failed to accept reality when it comes to their standing in the U.S. market. Let's look at the numbers they keep bandying about, shall we? After selling a little more than 200,000 vehicles here in 2009 the company says it will sell 450,000 by 2012 (uh, just to be clear that's 2-1/2 times more than what they've been selling less than two years from now), and a whopping 800,000 by 2018. All of this optimism because of a new plant that's scheduled to open in Chattanooga, Tennessee, in which they'll build a sedan specifically aimed at the U.S. market? And you guys are just going to flip a switch to turn that assembly facility on and it will all come good in an instant? Right.
Mercedes-Benz. Automotive News reports that the U.S. Mercedes-Benz dealers are up in arms over the fact that Mercedes executives in Germany are contemplating a switch of the entire S-class lineup to full hybrids by 2013 globally. Dealers have been vocal against the switch, insisting that it would fundamentally alter the perception of the brand here in this market - essentially crippling the brand image - especially when it came to the premium AMG products. Ahem, it wouldn't be the first time a German car company demonstrated a complete lack of understanding of this market, now would it?
Brake Override Systems. Another good idea - on paper anyway - yet one step closer to a future when driving will become optional, as our fully-programmed conveyances take us from Point A to Point B requiring zero involvement on our part. Oh, the horror, the horror.
Bob Carter. Toyota Division boss Bob Carter tells Mark Rechtin of Automotive News that "Dealers needed a shot in the arm. I have to restore sales, and I have to do it now. I'm not going cold turkey in April." Our AE Quote of the Week came after the 41 percent surge in Toyota sales reported for March due to its "Scorched Earth" incentive push, clearly a desperation play to regain sales and market share and one that isn't going to stop anytime soon. (This is what our spies report that Carter really said to his dealers: "Alright, listen up, people. Our fugitive (customer) has been on the run for ninety minutes. Average foot speed over uneven ground barring injuries is 4 miles-per-hour. That gives us a radius of six miles. What I want from each and every one of you is a hard-target search of every gas station, residence, warehouse, farmhouse, henhouse, outhouse and doghouse in the area. Checkpoints go up at fifteen miles. Your fugitive is anyone who has a license. Go get him.")
SGL Group and BMW Group. The two companies jointly announced at an event in Seattle that their joint venture, SGL Automotive Carbon Fibers LLC, will build a state-of-the-art carbon fiber manufacturing plant in Moses Lake, WA. During the initial phase, $100 million will be invested and 80 local jobs will be created. The fibers manufactured at Moses Lake will be used exclusively for BMW Group’s upcoming urban Megacity Vehicle - set to be launched before 2015 under a BMW sub-brand – and that will be assembled in Leipzig, Germany.
R.I.P. Hummer. Publisher's Note: The Hummer brand is no more. After a deal with Sichuan Tengzhong Heavy Industrial Machinery fell through - and with GM lacking serious suitors for the brand - Hummer will now cease to exist. One of the most successful product launches in the industry over the last 25 years, Hummer - for a fleeting moment in time at least - swept the rug out from under Jeep and (much to Chrysler's chagrin) became "The Ultimate" off-road vehicle. Propelled by some brilliant advertising by ad shop Modernista out of Boston - including the memorable "The Big Race" spot for the H2 with sound track courtesy of The Who's "Happy Jack" http://www.youtube.com/watch?v=bV65Z7p2Xy8 - Hummer immediately became the SUV of the moment. But we know how that all played out. The hand-wringers came out of the woodwork to vilify the brand, which quickly became the whipping boy for the Green Horde across the country, even though around the rest of the globe the Hummer brand still resonates positively today. And even though GM wisely deleted the H1, downplayed the H2 and promoted the more compact H3, rising fuel prices led to a corresponding decline in SUV sales, and by then, GM - hemorrhaging money and juggling too many divisions as it was - simply couldn't give the brand what it so desperately needed, which was a more efficient powertrain for the H3 (turbo-diesels were on deck) and even more important, the financial wherewithal to bring the sensational H4 (shown as the HX concept) to market. (I had the pleasure of getting a deep dive on the right-sized H4 and I am absolutely convinced if GM had been able to bring it to market it would have saved the brand.) So here we are. Another GM brand down the drain, and as far as I'm concerned, another blown opportunity for the company to make money on a segment of the market that no matter how hard the Green Horde might try to kill will - because of new fuel-efficient technologies and lightweight materials - survive well into this century. - PMD
Nissan Canada. The new spot for Nissan Canada produced by TBWA, Toronto, is fun. Director Terry Timely used 1/10th scale radio controlled cars (and tiny camera cars and helicopters) in the action-packed spot called "Drift" for the Nissan SE-R, yet still, it doesn't hold a candle to the famous "G.I. Joe & Barbie" spot for the 300ZX from the 90s, which used the Van Halen cover of The Kinks' "You Really Got Me" for its soundtrack. Thanks to Eric Trytko (aka "rumblestrip") for pointing the new spot out.
Irv Miller. Sometimes a corporate PR guy has to stand up and say, "WTF are you guys thinking?"
(Audi)
Audi is unveiling a novel concept at Milan Design Week in collaboration with Moritz Waldemeyer, an artist noted for combining cutting-edge technology with creative design in his works. The Lucid Flux light installation uses two Audi show cars and is composed of continuous lines of LED lamps mounted within transparent polycarbonate strips. The 2,000 LED lights create visual effects resembling jets of smoke flowing around a vehicle in a wind tunnel. Where the strips are unaligned, the cascades of light form abstract patterns. Where they are aligned, on the roof for example, the flow of light is controlled to form an interactive text display.
(Photos courtesy of BMW)
According to BMW: The weekend of April 23-25, 2010, will see the fabulous grounds of the Grand Hotel Villa d’Este and Villa Erba in Cernobbio once again offering an exquisite stage for the most alluring classics of the past and the boldest concept cars of the present. The first Concorso d’Eleganza Villa d’Este was held here on the banks of Lake Como in 1929, and today no other event of its kind can match its heritage and tradition. To mark its victory in the Mille Miglia 70 years ago, BMW will bring its 328 Mille Miglia Concept Coupé to Lake Como. And BMW Classic is bringing a car back to life which had vanished off the radar nearly 60 years ago: the BMW 328 Kamm Coupé. “We are very proud to bring this milestone in motor racing history and vehicle aerodynamics back into the public spotlight,” said Karl Baumer, Director of BMW Group Classic. “Our tribute to the M1 at the Concorso two years ago showed how much inspiration the past can provide for the future. And the BMW 328 Kamm Coupé is an outstanding example of how far back the future at BMW stretches into the past.”
BMW was quick to appreciate the unique status of its Mille Miglia cars following the victory in 1940, and they were soon spirited out of Munich into the countryside to prevent them from being destroyed in the war. The evacuation was successful, with all five cars surviving the wartime years virtually unscathed. However, in the turmoil of the immediate post-war period, the collection of silver racers were split up and went their separate ways around the world. Only the Kamm Coupé remained in Germany, former BMW Director of Racing Ernst Loof having acquired the car for his personal use. By this time he had become a carmaker in his own right, supplying Veritas racing sports cars to German customers in the post-war era. However, financial difficulties were never far away and a few years later he was forced to let the Kamm Coupé go. Sadly, this automotive gem was not destined to enjoy a long life under new ownership, and it was consigned to the scrapheap after an accident in the early 1950s. Efforts to rebuild the car have been ongoing since the mid-1990s. Documents from the Group archive and private collectors, computer calculations carried out in the BMW development department, and the skilled hands of body experts and engine specialists have all been employed to prepare the 328 Kamm Coupé for its public unveiling at the Concorso d’Eleganza Villa d’Este. For Karl Baumer this has been an incredible project: “We’ve come up against some major technical challenges, had many discussions and racked up countless hours of research, but when you see the car for the first time you can sense the passion and professionalism invested by all those involved – both all those years ago and today.”
Editor’s Note: This week’s “quick take” is on the 2010 Hyundai Tucson GLS AWD, the smallest of the brand’s crossovers, which include the Santa Fe and Veracruz. Our test vehicle showed up in a very unfortunate color called Kiwi Green, which was an instant turn-off. To make matters worse, the interior featured two different shades of brown that were not at all pleasing and combined with the green exterior to create a visual experience called Not Good. Having said that, the vehicle overall is quite competent. Looking past the exterior color, the design is clean and contemporary – much improved from the original Tucson introduced in 2005. The interior is equally clean and well thought out. Everything is right where you expect it to be, and in fact there’s a lot more standard than you might expect, which makes for a pleasant surprise. In terms of performance, the ride isn’t particularly enjoyable (as in, a bit truck-like) when the road is anything but smooth, and the 4-cylinder engine (mated to a six-speed automatic), while more powerful than its predecessor, still felt underpowered to me. But the Tucson is easy to drive and maneuver around town, and both the rear seats and rear cargo area are easy to access, making this a great Costco vehicle. With the addition of the Popular Equipment Package ($1700 – 17” alloy wheels, telescopic steering wheel, steering wheel audio controls, Bluetooth, illuminated vanity mirrors, etc., etc.) and carpeted floor mats ($100), our Tucson stickered for $24,090 – all in all a pretty decent vehicle and a lot of value for the money. – WG (P.S. I am most intrigued with what Hyundai is doing at the upper end of the market right now, specifically, the 2011 Equus V8-powered luxury sedan, which goes on sale later this summer. Can Hyundai capture the attention of the Mercedes/BMW/Audi loyalists and make lasting inroads in the luxury segment?) Publisher's Note: WordGirl was being kind about the interior color scheme. I actually detected three different colors: Dirty brown, ugly-ass brown and uninspired gray, complete with silver accents. And juxtaposed with the "Ick-Green" exterior? OMG. But the thing runs well enough and is a good value, if that's what floats your boat in a vehicle. - PMD
WE'RE OPENING THE VAULT!
The AE wearables are back - and only in extremely limited quantities and sizes, we might add - and once they're gone, they're gone! We're starting with our most popular items, the classic AE Sweatshirt and AE Hat. Click on a PayPal button below to order yours now! (If you prefer to pay by check, please send us an email with AE STORE in the subject line, and we'll reserve your item.)
AE Sweatshirt - Crewneck, sturdy 80/20 cotton/poly, in black with throwback lettering - the original AE logo in our Chiller typeface shown above. Size XL only. 40 bucks, including shipping. US orders only.
AE Hat - Black with throwback lettering - the original AE logo in our Chiller typeface shown above. 25 bucks, including shipping. US orders only.
Publisher's Note: Check-out John McElroy's daily news show covering everything about the auto biz by clicking on the graphic below. Good stuff guaranteed. - PMD
See another live episode of "Autoline After Hours" hosted by Autoline Detroit's John McElroy, with Peter De Lorenzo and friends this Thursday evening, at 7:00PM EDT at www.autolinedetroit.tv. By the way, if you'd like to subscribe to the Autoline After Hours podcasts, click on the following links: Subscribe via iTunes: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=311421319 http://www.autolinedetroit.tv/podcasts/feeds/afterhours-audio.xml
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