ON THE TABLE

November 16, 2011

Sergio Marchionne. Editor-in-Chief's Note: Automotive News is reporting that the Chrysler Group has suspended production of its 1.4-liter FIRE engine that powers the Fiat 500 in North America due to slow U.S. sales of the subcompact, according to "a top UAW local official." Internal Chrysler documents obtained by AN dated Nov. 1 show that the Italian-owned automaker has a 184-day supply of Fiat 500 coupes and cabrios available to dealers. Uh, hello? Remember all of the glowing pronouncements by Fiat-Chrysler CEO Sergio Marchionne about how the Fiat 500 would "transform the U.S. market" and that the automaker would easily sell 50,000 units in the first year? Even though he downgraded that prediction somewhat when the rollout of the car turned out to be a complete and utter disaster, the bottom line is that just 15,826 Fiat 500s have been sold in this country to date. Let me repeat that, just 15,826. And that number includes fleet sales. The problem wasn't with Marchionne's delusional thinking about Fiat and what it could and would do in this market, because even though he fancies himself a genius and his minions think he is so very, very, special, the bottom line is that delusional thinking is delusional thinking in any language. And Marchionne is no different from any of the other auto industry executives of the last, say 50 years, who were convinced they were special and who were equally convinced that they couldn't possibly be wrong. The problem with all of this, of course, is that Marchionne's vision for the future health and well-being of the Fiat-owned Chrysler hinges upon Fiat making it here in the U.S. so that the table can then be set for the launch of Alfa Romeo. (And while we're at it let's not forget that Marchionne has also promised that Alfa will be another "can't miss" success and will propel the new Fiat-owned Chrysler to new heights around the world.) This is a giant pasta bowl of Not Good, any way you look at it. Marchionne has sold everyone a big fat bill of goods with the return of Fiat in this market and the big losers - besides the media mavens who kiss Marchionne's ass on a regular basis, of course - are the dealers who bought Marchionne's Bush League Bullshit from the beginning (see below). Will Fiat ever be more than a small-time niche player in the U.S. market, at best? No. Frickin'. Way. - PMD

Fiat Dealers. Editor-in-Chief's Note: Well, that was special, wasn't it? You waited at the base of the mountaintop for Sergio to come down and bestow his wisdom on you because, after all, Sergio is a genius and he said that Fiat and the 500 "can't miss," right? Then you got the T-shirt and even got your souvenir DVDs autographed by The Maestro and now, except for a few of you in the smile states who have managed to push enough Fiat 500s on to the flavor-seekers-of-the-month to be noticeable, you're all left holding the bag and looking at your watches wondering what the hell just happened. I'll tell you what happened. You got screwed. You bought Sergio's Bush League Bullshit about the 500 being the next MINI and let me just reiterate in case you need to be reminded, that was nevergonnahappen, no matter how many Abarths and other special editions they crank out. (That was the AE "Duh of the Year" hands-down, by the way.) Not only that, you then bought the whole idea that you needed to spend $1 - $2 million each to build exclusive Fiat stores so that you'd be ready to make the real dough when the Alfa Romeo product onslaught started. How is that workin' out for ya? Especially when the first Alfa of any note is easily two-and-one-half years away, if not more? Here's the thing, Fiat is a nice little brand and all but it's never going to be more than a curiosity in this market. Sure, there will be a few consumers every year who like the whole "being different" aspect of buying a Fiat but that's never going to be enough to build brand equity in this market, not by a long shot. And just for the record, the idea of Alfa Romeo being one of the two pillars of Marchionne's strategy to gain global legitimacy for the Fiat-Chrysler mashup? That dog won't hunt even with a prosciutto-wrapped T-Bone. So good night, and good luck. - PMD (Get more Fiat perspective from a Chrysler-Jeep-Dodge dealer in Reader Mail - WG)

(Ford)
Ford has announced an exclusive collaboration with SHFT.com, the award-winning multimedia platform and green lifestyle website founded by actor and filmmaker Adrian Grenier and film producer Peter Glatzer. Together, Ford and SHFT are collaborating on a variety of programs with the intention of inspiring and inviting consumers to take a more sustainable approach in life. One project includes developing the creation of a short documentary series profiling leaders in innovation who are shaping new sustainable businesses that are influencing positive change around the world. Ford and SHFT also are looking at live-event programs and film festivals to further spread their shared mission.

(Photos courtesy of Mercedes-Benz)
The next-generation Mercedes-Benz ML63 AMG will make its world debut at the 2011 Los Angeles Auto Show this week. In addition, three more high-performance Mercedes-Benz cars are making their North American debut at the show – the roadster version of the SLS AMG gullwing coupe, the monster C63 AMG Coupe Black Series (the most powerful C-Class of all time, with 510hp) and the 415-hp SLK55 AMG, the first V8-powered car in the SLK lineup.

(Photos courtesy of Ford)
The escalation in the Pony car wars between Chevrolet and Ford just got a lot more serious. Chevy fired first with its mind-blowing 580HP ZL1 Camaro, but everyone knew that car would only enjoy a moment in the sun before the much-rumored "Super Boss" Shelby GT 500 Mustang made its debut. Powered by an aluminum 5.8-liter supercharged V8 producing 650 horsepower and 600 lb.-ft. of torque, the 2013 Shelby GT500 boasts the most powerful production V8 engine in the world and an aero package which generates the proper downforce for its over 200 mph top speed. Ford went through the whole car tweaking everything to make sure it was ready for the inevitable stand-off with the ZL1 including a new supercharger, a significantly updated cooling system, new cross-drilled block and heads, updated camshaft profiles, a new carbon fiber driveshaft and upgraded clutch, 6-speed manual gearbox, a revised rear axle with a 3.:31 final drive ratio, and updated Brembo brakes with new six-piston calipers in front along with larger front and rear rotors. A new launch control system lets drivers set the desired launch rpm depending on tire temperature, street surface or other conditions. Unique to SVT’s launch control is that it is integrated with both the engine control and traction control. The car has new downforce-generating front grilles, an aggressive splitter, new quad exhaust system and two new forged-aluminum wheels, including a unique wheel for cars with the optional packages. The 19-inch front and 20-inch rear wheels are coupled with Goodyear Eagle® F1 SuperCar G: 2 tires on all vehicle configurations. The super Mustang also has an optional Performance Package with SVT-designed Bilstein electronic adjustable dampers and a Torsen limited-slip differential. The option can be coupled with a track package for all-out racetrack performance. “It might just seem like we’re putting a bigger engine into the car. But it’s been a balanced approach through and through,” said Jamal Hameedi, SVT chief engineer. “We’ve completely redone the car to be even more sophisticated in terms of handling and control than the prior model.” Editor-in-Chief's Note: The only problem with all of this? These two car companies should be racing these machines against each other. I've suggested a new "GTX" class for American road racing over the last several weeks in my "Fumes" column, but these manufacturers love competing on playing fields they can control. So the likelihood you'll see these cars compete against each other on the racetrack is slim. And none. - PMD

 Camaro ZL1. The 580HP 2012 Chevrolet Camaro ZL1 Coupe by the numbers? It accelerates from 0 to 60 mph in 3.9 seconds and can reach a top speed of 184 mph. Base price is $54,995 (includes a $900 delivery fee), including Performance Traction Management and Magnetic Ride suspension. The Camaro ZL1 is available with six options: The six-speed automatic transmission with TapShift controls is $1,185; 20-inch, bright aluminum wheel package, $470; Power sunroof, $900; Stripe package, $470; Exposed-weave carbon fiber hood insert, $600; and the suede package, including suede microfiber accents on the steering wheel, shift knob, and shift boot, $500. The Camaro ZL1 Coupe will go on sale in the spring of 2012, as a 2012 model. The Camaro ZL1 Convertible will go on sale in the summer of 2012, as a 2013 model. Pricing for the Camaro ZL1 Convertible will be announced later. “With 0 to 60 taking less than four seconds, and a top speed in excess of 180 mph, the power and acceleration of the Camaro ZL1 rivals many supercars,” said Al Oppenheiser, Camaro chief engineer. “And, horsepower is only half of the story, as the most significant measurement of the ZL1’s potential is lapping the Nurburgring in 7:41.27. That is a great testament to the power, braking, grip, and balance of the Camaro ZL1, and to the well-rounded performance of the ZL1 that sets the bar for the sports-car segment.”  And it all gets put on the trailer as soon as the new Shelby GT500 Mustang appears.

(Ford)
The "standard" 2013 Mustang gets tweaked too with new exterior design cues including a more prominent grille, new hood, standard high-intensity discharge headlamps on both V6 and GT cars, new signature lighting with two individual LED bars accentuating the front headlamps and three LED ropes forming the iconic three-bar rear lights, plus a bunch of other tweaks and details too numerous to mention. The 5.0-liter engine will now deliver 420 horsepower. A new SelectShift Automatic™ transmission is standard as well. The 2013 Mustang Boss 302 Laguna Seca (above) has a new reflective hockey stick graphics package, which is the first modern application on a production vehicle, according to Ford. And the 2013 Boss 302 and Boss Laguna Seca models feature new School Bus Yellow paint, honoring Parnelli Jones' iconic 1970 Trans-Am championship car prepared by Bud Moore.

(Ford)
The new Ford Escape makes its debut this week at the L.A. auto show and it could be one of the most significant entries to the segment, if not the most significant entry, simply because of the total package: exceptional design, excellent fuel economy, versatility, technology, connectivity and most important, it's going to be fun to drive. Ford projects that fuel economy is up to 5 mpg better than the previous Escape, with 1.6- and 2.0-liter EcoBoost® engines available. The Escape is jam-packed with features and available cool stuff, like an available hands-free power liftgate that allows quick and easy access to cargo with the kick of a foot, but suffice to say we project that this new Escape is going to be one of the industry's hot sellers the moment it hits the ground next spring.

 

(GM)
Another significant entry to the market next spring will be the 2013 Cadillac XTS, unveiled today at the L.A. Auto Show. Larger than the CTS, Cadillac says that "the new XTS delivers the space, elegance and dramatic presence that are Cadillac signatures, but with entirely new and technically advanced methods tuned for a new generation of luxury customers." We say this new Caddy will be hot in the market because this just in: There are ton of buyers over 50 "out there" in ConsumerLand who will find this roomier, sorta large Cadillac just what the doctor ordered. And yes, it has a ton of stuff jammed into it as well, including the debut of CUE, which Cadillac calls "a comprehensive in-vehicle experience that merges intuitive design with auto industry-first controls and commands for information and media control." Uh, that's nice, but here are the details you'll be most interested in: The XTS has an advanced Haldex all-wheel-drive system with electronically controlled limited-slip differential available, Magnetic Ride Control, rear air suspension, HiPer Strut front suspension and Brembo brakes. 19" wheels come with it, 20" wheels are optional. It's powered by the now-obligatory direct-injected GM 3.6L V-6 with lightweight features, including integrated cylinder heads/exhaust manifolds. It also has a capless fuel tank filler, a feature that Ford pioneered and that is so simply brilliant that it should be standard throughout the industry. And a bunch of other stuff. And knowing what people are looking for, Cadillac is pushing the roominess of the new XTS, touting its 40 inches (1,016 mm) of rear legroom, which is about four more inches than the BMW 5 Series and Mercedes-Benz E-Class, and about two more inches than the Audi A6. It also has 18 cubic feet (509 L) of trunk space. The real secret of the XTS, however, will be its presence on the road. This car flat-out looks great when you see it, and people in the market for this kind of car are going to give it a close look.

Editor-in-Chief's Note: It is well known that the Fiat launch was botched from the beginning, and nowhere was that more apparent than in the Los Angeles market. Our West Coast correspondent, Tom Pease, weighs-in on the subject with another "Letter from L.A." this week. - PMD

How Fiat got it wrong in L.A.

By Tom Pease

Beverly Hills. The Fiat story in L.A. is a microcosm of the issues the whole company suffers from, which starts with a complete lack of Common Sense.

First, the 500 is sold only on the cute factor. Its gas mileage, price and usability aren't as good as at least three of its competitors. It's not even that much fun to drive.

Second, Fiat launched the 500 with too many manuals when nobody in Los Angeles wants one. A week of commuting on the 405 in a manual will have drivers learning new and interesting swear words in record time.

Third, they launched in a wasteland area south of downtown L.A. If you're going to launch a rolling fashion accessory at least put the store somewhere where people who might buy one live. At least Smart was smart enough to open first in Beverly Hills. I certainly wouldn't feel like trekking all the way to Figueroa & 21st every time my 500 needed an oil change when there's a Yaris, a Fit, or a Focus with dealerships on Santa Monica Blvd.

But hey, what do I know? I wouldn't have hired JLo either...

(Honda)
The fourth-generation Honda CR-V also made its debut at the LA Auto Show today.  Honda says that the 2012 CR-V (EX-L shown) "... introduces the latest evolution of Honda's successful CR-V formula. Compact on the outside and roomy inside, the CR-V represents an ideal balance for size and capability in the entry SUV segment. The all-new five-passenger CR-V offers improved car-like interior comfort, a smoother and quieter ride, and even more innovative features than the previous model." All CR-Vs are powered by a 2.4-liter i-VTEC 4-cylinder engine with 185 horsepower and 163 lb-ft. of torque paired with a standard 5-speed automatic transmission. Huh? No 6-speed transmission in a land of six-speeds and more? Not. So. Much. The CR-V will go on sale at Honda dealerships nationwide on December 15th.

(Lincoln)
The 2013 Lincoln MKS and MKT get tweaked for the 2013 model year, in preparation for the all-new MKZ, which will really set the tone for the rejuvenated Lincoln brand when it hits later next year. Most apparent is the refined grille work, which is noticeably more restrained and refined, or "tailored" as Bill Mitchell would always say. The two vehicles are also jam-packed with more technology, far too numerous to list here.