So this week’s link come courtesy of a new site called TrueCar.com

TrueCar provides shoppers with free price reports that show what buyers in their market area paid for new vehicles, including options. It also provides data on dealer cost, factory invoice prices and sticker prices. The site also uses some nifty graphs to help buyers decide whether or not the offer price from a dealer is a good one.

You might hold off buying a new car until Congress passes a scrappage program as in Germany, and soon in the UK.

I wish this was a daily segment on the Letterman show, but sadly, I don’t think he has dropped a safe on a Buick lately…

The General Motors brands

In a recent speech, Obama asked the question, does the GM proposal do enough to consolidate the unprofitable marques. The answer is obviously “no”. In fact, the proposal generated by GM did little to immediate liquidate assets for any of the brands, including Hummer, Saab, and Saturn, which are the first to go. GM is undoubtedly looking for buyers, but what happens when they cannot get adequate capital? You guessed it, more bailout money. This analysis will focus solely on brand management. Financial management, include dealership reductions will not really be covered here.

Perhaps a better strategy for GM is to spin-off Hummer and pitch it back to the military as was originally intended, then force the Swedes to take back Saab (the will do so of course because of their near-socialist governmental structure), then merge Opel and Vauxall, and Saturn, and sell it to Fiat. This would create a cross-border carmaker with particular focus on the low-end green market. Fiat has recently stated that it is interested in buying Opel anyway.

Under this plan, GM assesses the whole product/brand portfolio, not just the three “lesser” American marques. Selling Buick to the Chinese, who seem to think that their country is ageing and could care less about styling, could be the deal of the century. The Chinese buy more Buicks than pretty much anyone else anyway. GMC could stay on as GM’s sole “truck, Van, and SUV maker”. They seem to have competency in building large hefty vehicles anyway. That leaves Pontiac, Chevrolet, and Cadillac as the remaining core assets. GM has officially decided to eliminate the Pontiac division. Some have suggested that Pontiac become a “specialty” vehicles division, producing cars like the Firebird. That may be a waste, however. Perhaps it is better to consider Pontiac taking over the “tuning” segment much in the same way that BMW’s M-division, and Daimler Mercedes’ AMG unit have done. Does your Caddy need more power? Send it to the Pontiac tuning factory. Something like that would give Pontiac a decidedly sporty and meaningful position in the portfolio. This could also position Pontiac to bring out experimental and limited edition cars. Perhaps this division could introduce cars that run purely on hydrogen.

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Tesla’s Elon Musk on Late Night with David Letterman

60 Minutes on Coal power

GM/Chrysler and Obama

In the first place, Obama is right, though the rhetoric is decidedly populist, downplaying the performance of CEOs from the Big 3 (rightly of course), and promoting the efforts of ordinary Americans. Obama is right that the industry must stand on its own but he needs to address upfront that the industry is trying to operate using tired practices in tumultuous times. The Auto Task Force (or ATF as I will now call it) must realize that the problems the Detroit faces are only partly their own. It is still true that a person can only change their own habits, not others, but the ATF has a special task ahead of it, changing practices in a multi-industry downturn.

The next paragraph compliments GM for producing the Chevy Malibu, which right perhaps, received the nod for North American car of the year. But in the next sentence he go on to hail Buick of all entities as the most reliable car IN THE WORLD. You must be having a laugh. This web site has debunked these ratings in the past, but this author has never sat in a Buick that functioned properly. Something is always broken. The stereo. The windows. The suspension and ride comfort. There are a great many people who liked the bench seating in Buicks of old, but these tend to be the same people who would rather be sitting in a la-z-boy than a car.

The President goes on to discuss the decision to extend yet again the period for the automakers to restructure. GM gets two more months, while Chrysler gets 30 days. The problem with this approach is that it forces government to keep perpetuating the same failed leadership decisions. To deal with this criticism Obama notes that he has forced the departure of Rick Wagoner, GM’s Chairman and CEO, and someone who should have resigned some time ago, certainly before crisis hit in 2008. Then Obama does something, which should prove troublesome. He appoints an insider to run the company as interim CEO. Fritz Henderson gets the nod. A shrewder move would have been to insert someone with a record of accomplishment of success in breaking up companies. Henderson has served at GM during a time when the company got increasingly bloated, and the portfolio became a tangled mess.

What of this change? What good will brining in Fritz Henderson do for the viability of the company?

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Rolls-Royce

It looks like Rolls-Royce finally has a new name for their “cheaper” new model. It’s going to be called the Ghost. Read on!

20.04.2009

Press Release:

Rolls-Royce Motor Cars has announced the name for its new model series which until now has been known as RR4. The name was announced by CEO, Tom Purves at a press conference held at the Shanghai motor show.

The new car will be called the Rolls-Royce Ghost and production will begin at the company’s Goodwood manufacturing facility on the south coast of England later in 2009.

Rolls-Royce Motor Cars CEO, Tom Purves, said, “We are delighted to formally announce the Rolls-Royce Ghost. It is one of the most revered names in the automotive industry, evoking images of adventure and technical innovation. The name reflects this new model’s breadth of abilities. The first cars to bear the Ghost name were known not only for impressive dependability and refinement but also great flair and style. This car will be the first in a new generation of models to carry this evocative name and will give us two pinnacle product lines – Phantom and Ghost.

The Rolls-Royce Ghost will be built on its own dedicated production line at Goodwood but will share paint, wood and leather workshops with the Phantom series of cars. Rolls-Royce has expanded all areas of its manufacturing facility over the last 18 months to prepare for the introduction of the Ghost model.

Mercedes E-class BlueTec Hybrid

Without a doubt, the EU has become the leader in improving the pollution problem for the automotive sector. Recently the U.S. put in a 27.3 mpg average fleet requirement for 2011. Please see: http://www.nhtsa.dot.gov for the latest information and the impact analysis. But is the change enough to get us on the right track? How exactly do carmakers implement changes in their fleet to address the higher requirements?

The European Union defines specific emissions targets for the following 5 years as the following:

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Not having driven the new Lotus Exige Cup 260, I was of course interested to see how it would perform. But do I have the time and money to take a trip to Merry Olde England to try it out? Absolutely not. Instead, take a look at Autocar Magazine’s account. It describes the 260 as raw and useful only on the track. If you spend your weekends on the track rather than your backyard picking weeds, maybe this is the car for you!

http://www.autocar.co.uk/CarReviews/FirstDrives/Lotus-Exige-1.8-Cup-260/239389/

HERNDON, Va.—Volkswagen of America, Inc. today announced March 2009 sales of 15,720 units, a 19.7 percent decrease over March 2008 sale of 19,587 units.  

Volkswagen’s stylish new CC, designed to blend sports car dynamics and dimensions with sedan comfort, posted its best sales month ever with more than 2,300 units sold.

“Volkswagen is encouraged by how well our new products sold in March” said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. “Our stylish CC posted its best sales month ever for the third month in a row, and our seven passenger minivan, Routan, doubled its sales over last month. Our 50-state compliant clean diesel Jetta and Jetta SportWagen continue to sell well. Next month our clean diesel luxury SUV, Touareg TDI, will be available in dealer showrooms across the U.S. We’re also eagerly awaiting the arrival of our all-new Golf later this year, which will also be available with our innovative clean diesel engine,” added Barnes.

AMG E-Klasse Limousine

History of AMG

It hasn’t always been the case that AMG was Mercedes’ in-house tuner. 

Check out http://amgmarket.com/amg/the-history-of-amg-mercedes-benz/

for a history of AMG.

As a car buyer, you have to be a little bit giddy to be ready to buy at the present time. Almost every manufacturer’s numbers are abysmal, and credit is too tight. People are losing their homes as value drop, which means no home equity car financing. Everyone is miserable except the guy who has cash-in-hand at the dealership. You walk through a car dealer’s door right now with a brief case of one-hundred dollar bills, and the General Manager himself will become your new best friend.

And that’s part of the reason why now is a great time to buy a new car. But guess what. There are now two more reasons. First government intervention, and secondly, OEM subsidies.

After its initial demise last month, the U.S. Congress is back with a revised bill that some would call the “cash for clunkers” legislation. LeftLane News points out:

The Consumer Assistance to Recycle and Save bill, or CARS Act, the revised plan would offer up to $5,000 in rebates to owners willing to trade-in their old rides for a new set of wheels. To qualify, the ‘clunker’ must be at least eight-years old, the new vehicle must have a price tag under $35,000 and have better fuel economy numbers than the vehicle being traded in. According to Sutton, the new bill would cover about 60 percent of the vehicles on the road.

The CARS Act is also forward-thinking, with a $7,500 voucher set to take effect in 2010. That larger credit would be applicable to plug-in hybrid vehicles with a fuel economy rating of 100 mpg or better.

…

One of the biggest criticisms of the last ‘Cash for Clunkers’ bill was that it favored the purchase of import vehicles. However, the new version of the bill alleviates that concern by offering an additional $1,000 rebate on vehicles assembled in the United States.

What is curious about this bill is the cap at $35,000. Only a couple of European manufacturers even sell a car in the US that would qualify. All employ Americans and all have American investors. So what’s the beef? It makes wonder just how many cars have better numbers than 8 years ago – such a calculation is critical for those that wish to buy the same car model! And who makes a 100mpg car anyway??

The second part of this story deals with an article from Edmund’s Michelle Krebs. Krebs points out that compared with buying a 1-year-old car, some new cars are actually cheaper!

Krebs gives several examples including the Audi A4, and the BMW 1, 3, 5, 6, M5, and M6 series. In the case of the 6-series convertible, a buyer would save $6,175 buying a new example over a one year old example! The Japanese are also examples of carmakers whose cars are more heavily discounted now than a year’s worth of depreciation would otherwise discount them.

Now is definitely a good time to shop!

On March 23, 2009, Martin LaMonica of CNET wrote:

Seeking to boost the U.S. clean-energy industry, President Obama on Monday announced $1.2 billion for science research at national labs and a proposal to extend a business tax credit for investments in research and development.

At an event at the White House, Obama told researchers and green-technology business people that their work was vital to revitalizing the U.S. economy and cutting the country’s dependence on foreign oil. About 120 researchers, lab directors, and CEOs from energy technology companies attended the event.

President Barack Obama at the White House speaking to researchers and clean-technology company CEOs.

“We need some inventiveness. Your country needs you to mount a historical effort to end, once and for all, our dependence on foreign oil,” Obama said. “Your country will support you, and your president will support you.”

Obama said that his administration’s budget proposes a 10-year extension to a tax credit for businesses that make investments in research and development. This tax credit has been in place in the past, but lacked a long-term commitment from the federal government, he said.

For every dollar that the government spends on this tax credit, it delivers two dollars to the economy, Obama said.

Obama also announced the availability of $1.2 billion in basic research at the Department of Energy’s national laboratories. In addition to money to upgrade facilities at national labs, grants are available for research in renewable energy, such as solar power and biofuels, as well as in nuclear energy, underground storage of carbon dioxide, and hydrogen.

It is in the same week that we have learned that a startup called Virent Energy is seeking round C venture capital funding for a plant in Wisconsin, which will be capable of of producing petroleum from sugar at a much more powerful 102 octane, diesel, and jet fuels. The solution for Virent is said to be joint partnerships due to the high cost of creating a 100-million-gallon-per-year plant: US$200 million. Critically, the company is not producing Ethanol, rather they are producing hydrocarbons.

In motor sports news, the Green Earth Technologies company is said to be producing a synthetic, and “green” motor oil for cars. Specifically, they are pushing the product on the International Motor Sports Association by making it the official motor oil. IMSA has pushed recently to be the “green racing series” with requirements that all cars run on one of four fuel systems: cellulosic E85, E10, clean sulfur-free diesel, or gas-electric hybrid. Will Porsche sever its relationship with MobileOne? Probably not, the announcement certainly stands to benefit the otherwise unknown Green Earth Technologies. Candace Lombardi of CNET blog network fills in the details.