ON THE TABLE

November 18, 2009

Toyota. From the "Hell Is Freezing Over" File comes word that Toyota failed to put any of its vehicles on the Insurance Institute for Highway Safety's “top safety pick” list for the first time in three years. On the other hand, Ford led all automakers for the second year in a row with six 2010-model top safety picks (thanks to four models from its Volvo brand, which it's selling). Tougher standards by the IIHS trimmed the number of top selections from 94 last year to 27 this year. And to add insult to injury for Toyota, the Ford Fusion is Motor Trend's Car of the Year. In the immortal words of Vince Lombardi, "What the Hell is going on out there!"

GM. Publisher's Note: From the "Much Ado About Nothing" File. Come on, people, really? Because there's a fiber-optic pinpoint of light at the end of the tunnel for the company, GM's "announcement" yesterday merited the kind of positive coverage that they received? Please. Let's be clear here, GM returned some of the money that the government - meaning "we the people" - had already loaned the company. And its cash position is substantially better, but it still lost $1.2 billion in the third quarter. Yes, the new products are more than promising - some are actually pretty great, even - but to say this company has a long, long way to go is the understatement of this young century. Show me serious, sustained profitability in the North American market for twelve consecutive months, and then I will celebrate right along with them. Until then, this is very much a work in progress. And make no mistake, folks, the progress is going to be excruciatingly s-l-o-w. - PMD

The City of Detroit, the State of Michigan. As rumors suggested months ago, GM is most likely moving 1,500 of its 4,000 employees out of its RenCen headquarters downtown in the next few months, while seeking additional tax breaks to keep the remaining 2,500 there. GM clearly needs to consolidate its diminished workforce in fewer locations, which is why its Tech Center in suburban Warren is looming large in the discussion as the probable home for its employees exiting downtown. The chances that the city and state will approve incentives to keep GM downtown? Try 100 percent. The city is already reeling as it is, and its ability to function would be called into question without GM's presence in the RenCen. Period. (The Michigan Economic Growth Authority approved new tax incentives to keep GM in the RenCen Tuesday afternoon, terms and details will follow next month.)

The Electric Coalition. A123 Systems, FedEx, Johnson Controls-Saft, Nissan, and Pacific Gas & Electric are presenting a united front in favor of the electrification of the automobile. The "Electric Coalition" is being led by none other than Renault-Nissan CEO, Carlos Ghosn, who has basically bet the farm on the electrification of the automobile around the world. The group projects 14 million EVs on the road by 2020 - which translates into a staggering 25 percent of the market just ten years from now - and 100 million by 2030. They're looking for tax credits for batteries and charging stations and loan guarantees for retooling plants, to the tune of $120 billion over the next eight years. The group's wildly optimistic projections concerning the penetration of full EVs in the market by 2020 are almost as crazy as the amount of tax credits they're looking for. Good luck with that.

Mark Rechtin. The Automotive News reporter based in Los Angeles wrote an interesting article in this week's issue about how the luxury brands have been hammered around the country in this economic downturn, but particularly so in California. Bentley sales are down 54 percent over last year in the U.S., Lotus is down 50 percent, Maserati is down 49 percent, Lamborghini is down 44 percent, Aston Martin is down 32 percent, Rolls-Royce is down 19 percent, and even Ferrari is down 12 percent in this horrifically bad market, according to Rechtin. Much of it can be attributed to the economic calamity that has taken its toll on consumers of all stripes, but some of it can be blamed on the manufacturers who got greedy and built too many cars when times were still booming. Rechtin quotes a source who declined to be identified who said: "We have 2008 Astons stacking up. People are getting hammered on the residuals because Aston built too many cars. A Vantage that sells for $150,000 new is selling for $75,000 after two years, but the owner still owes $110,000. That is not a good equation." Thanks to Mark for the story, and thanks to the unidentified source for presenting the quintessential definition of what being "upside down" in your car loan really means. And the unidentified source gets our AE Quote of the Week too.

Editor’s Note: Those of you who have followed me over the years here at AE (all six of you) know that I am a Mercedes girl. I’ve had flings with old Camaros and Audis and Volvos and BMWs (with a ’57 Jag thrown in for good measure), but I can’t seem to quit Mercedes-Benz. I know, I know, the brand’s not what it used to be, not by a long shot, but it still speaks to some part of my warped brain, and I like what I hear. That doesn’t mean I’m blind, however, or closed to the possibility that there might be something else out there that would meet my standards for a daily driver. Long intro to get me to last weekend and my time with the 2010 Lincoln MKS EcoBoost. First of all, this car looks great – finally, after years of nondescript, here’s a Lincoln with some presence – beefy yet elegant, imposing yet understated. My car was Tuxedo Black (I like any color, as long as it’s black), with Sienna Flagship Leather – a truly gorgeous dark cocoa brown with Charcoal Black trim – very tasteful (bonus points are due here - dark interiors with dark exteriors immediately say luxury and elegance in my book). My MKS was no slouch when it came to performance, thanks to its 3.5L EcoBoost direct-injection V6, which delivers 355 hp and 350 lb-ft of torque. This output makes a compelling case for the MKS EcoBoost, compared with, say, the M-B E350 – but a non-EcoBoost MKS? Not so much. This car is big (I like big) – it feels big, and it's also heavy – so I can’t imagine the standard 273-hp V6. The interior is equally impressive – or maybe I should say surprising. The seats are supremely comfortable, making this a great candidate for a road trip. And it's packed with all of the features you expect in the luxury category. But because the standards are so high, it always seems to be the little things you notice more than the big things – especially if you’ve been driving a particular marque for a while. In the MKS, it's things like heated seats that actually let you fry your derriere if you so choose (unlike the Germans, who just know when you’re warm enough and automatically dial back the heat settings from three to two to one – very annoying). Or the exterior lighting that comes on beneath the doors at night when you press unlock. Or the subtle blue ambient lighting in the footwells. But then, there are also ‘bad’ little things, like the turn signal – why can’t all cars have the one-touch lane-shifter thingy where the signal stays on until your turn is complete? And I’m not really keen on the push-button start (not unique to luxury vehicles, by any means) – I just don't see the point of it if you still have to lug the key around. Overall, however, there’s a lot to like about the MKS, but the star of the show in terms of amazing is Active Park Assist – Ford’s parallel parking system. Simply push a button to engage, and the ultrasonic-based sensing system determines if the car with fit in a particular parking spot. Commands on the IP tell you when to move forward and when to stop. You then shift into reverse, and the steering wheel moves – hands free – to park the car (you retain control of the accelerator and brake). The first time you do this – it is W-I-L-D – think steering wheel as Linda Blair in The Exorcist – it’s really pretty cool. With a base price of $47,460 – options (including Active Park Assist, moonroof, rear view camera, kick-ass audio system, and the EcoBoost Appearance Package - unique grille, 20-inch chrome wheels, MKS badging with “S” in red, illuminated sill plates, the special leather seats, etc., etc.) brought the total MSRP on my EcoBoost up to $56,625. Am I ready to walk away from my Mercedes? No, but for the first time ever I'll have an American luxury car on my shopping list. - WG

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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

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