Are Porsche's Latest Actions Sacrilegious?

Since the late 1990s, Porsche has seen a shift in their vehicles.

First, the iconic 911 (996) Carrera shifted from utilizing an air cooled motor to a water cooled motor.

Then, Porsche introduced the Cayenne sport utility vehicle. Following this were announcements proclaiming a hybrid and diesel were on the way -- this week diesel production commenced.

Most recently, however, is the debut of a four-door saloon, the Panamera, targeted at the Maserati Quattroporte and Aston Martin Rapide.

Source: Press.Porsche.de

Has Porsche sold out?

Feel free to weigh in and check out the full article.

rp

Nissan Viewing: Part II

So, let’s get down to brass tacks. This is the car everyone was here for, the new Nissan 370Z.

Source: rp

Disclaimer: Pictures do not do this car justice. It has to be seen in the flesh to be fully appreciated.

Adorned in a rather loud yellow, the new Z has a rather menacing looking stance. Certainly, this Z is not messing around. While the 350Z remained rather angular and squared off, the 370Z has injected a bit more sexuality and fierceness into its design.

What do I mean?

Looking at the new clamshell roof line, I have fallen in love. Personally, I believe the A-pillar should have remained blacked out, a la GTR and Koenigsegg CCX, to emphasize this new, gorgeous roof line.

Source: Nissan North America

Delving into the side profile and side-view mirrors you will notice that a lot of the sharp edges of the 350 have been smoothed out and gives the car a much more fluid look as opposed to the rigidness of the previous generation. Next, is my favorite aspect of the new 370Z – the C-pillar and how its line retreats upwards. Thank God that Nissan’s designers got rid of that plain, unimaginative beltline, which graced the 350. Whether it is revived from the Datsun 240Z is not important; it just looks good, period.

Walking around towards the rear end of this vehicle reveals a very wide and impressive stance. What is this thing a Testarossa? Christ, it appears that much wider. On top of that, this particular Z was equipped with the optional 19 inch rims, which boasts 10 inch rear tires.

Source: rp

Kudos for imagination.

Now, the most controversial aspect of the design is clearly the headlights and taillights. Nissan public relations claims they are “barbed,” and meant to evoke emotion and blah blah. “Barbed,” or not I am not a huge supporter; however, it is an interesting departure from the Nissan/Infiniti of old, which commonly featured rectangular headlights. For the Z the headlights work; for the Maxima, not so much.

Source: rp

Settling into the cock pit reveals, once again, a smoother and more fluid design. A newly designed steering wheel improves knee room for giants, like myself, and the integration of a navigation unit – pictures show similarities the FX loaner I had – gives the Z a much more Infiniti-like feel.

Source: rp

Source: Nissan North America

Speaking in terms of design, the Z is a major shift. A welcome one, at that. The exterior exudes some characteristics inherited from the Datsun 240Z while the interior has learned a thing or two from its siblings at Infiniti. Well played, Nissan.

Specification wise, the 370 has made improvements in all the right places. The engine has power bump,332-horsepower and 270 lb-ft of torque @ 5,200 revs-per-minute, stemming from a new 3.7 V6.

Most likely the exhaust note will sound very similar to the Nissan/Infiniti’s of late, which have a low-end burble that eventually turns into a shriek.

Optional brakes provide four piston, 14 inch rotors in front while the rear is supplied with two piston, 13.8 inchers in the back.

Source: rp

The new six-speed manual has the world’s first synchronized downshift rev matching system, which essentially eliminates the need for heel/toe action. Have no fear wannabe rally champions, you too can live vicariously through your 370Z by turning off this system VIA a button on the center console. Or, you can keep things simple with a seven-speed automatic boasting paddle-shifting technology. Your call, really.

Overall, the 370 is a tremendous departure from the bland 350. It is much more exciting and has a much improved side profile due to the refresh.

As with the Cube, hopefully, AT will be able to get behind the wheel of one soon.

rp

Nissan Viewing: Part I

After a long hiatus, with good reason as you will see in the upcoming weeks, AT is back!

This past Thursday night, Nissan hosted a nice, little viewing of the updated 370Z and the soon-to-be imported Cube.

Source: rp

The Nissan Cube is exactly what the name says it is, a cube. Although many will likely say the design is reminiscent of a Scion Xb, it has been on the market since 1998 – in Japan. Personally, it does not matter “who-dun-it,” because it is remains a trendy, hip design.

I will be the first to admit the current generation Cube’s design is a bit more appealing; however, the refresh is not a slacker either. Some aspects of the vehicle caught my eye immediately. For instance, the curves on the B-pillar provide a unique touch and are brilliantly executed in a contemporary fashion. And, upon closer inspection the windshield has a slight curvature towards the top, which is nothing less than beautiful.

The coolest aspect of the exterior has to be the rear door, which is hinged on one side. The sleek design reminds me of a hefty, impenetrable bank vault. Although Nissan concealed the hinge with a bulbous bit of sheet metal, I think it would have looked better with an obscenely chunky, aluminum exposed hinge.

Source: rp

Sliding into the cockpit you are confronted with a curvy, meandering dash and a helluva lot of headroom. It is remarkably airy. The A-pillars are placed extremely far in front of you, thus, providing a lot of length between you and the windshield. Essentially, this is totally the opposite of old-school Porsches where you may have felt as though you were wearing the windshield as glasses.

Source: rp

Something that caught my eye was the interesting control set up on the center stack. A circular array of buttons and controls for the HVAC unit. I am curious if that circular set up becomes irritating and confusing while driving and not paying attention to where you are poking or proding.

The underlying problem with this car: it is not a tremendously groundbreaking design after 10 years overseas and many consumers will observe the car’s silhouette and proclaim “it’s just a box!” It is unfortunate that many will overlook the little details this spiffy little car has to offer.

Source: rp

More than likely, this vehicle will sell big with younger crowds who prefer personalization, which is a major selling point of this particular vehicle. Scion should get their ammo ready accordingly as this car felt more solid than their offerings.

My grievance: why wait so long to get this car here?

Hopefully, this coming spring Automotive Times will be able to get behind the wheel and get some serious driving impressions. Time will tell.

To summarize: the Cube is essentially a gigantic iPod with four wheels targeted at the iPod generation.

rp

Smart Diesel: Full of Character

Let's see here.

New story published on TheStreet.com featuring the Bosch Brabus Smart ForTwo CDI. Certainly a cheaper alternative than an Audi or BMW diesel.

However, is it all good?

Seek and you shall find.

rp

Challenger Weighs In On Job Cuts

This past Wednesday, Challenger, Gray & Christmas released their much anticipated job cut data. The results were not too pleasing with terrifically awful trends.

Reaching levels not seen in nearly five years, 112,884 jobs were taken off the table in October. Leading the pack for the month of October were the following industries: financial, automotive, pharmaceutical, industrial goods, computer, and consumer products with each cutting 17,949; 15,692; 8,956; 8,252; 7,548; and 6,946 jobs, respectively.

Data: Challenger, Gray & Christmas
Charting: rp

October’s total is nearly 20 percent higher than September’s job cuts – that is huge! One question I am wondering is, how much worse will it become before it gets better?

After bouncing up and down this summer, it appears as though job cuts are trending upwards since August. This is tremendously disturbing, especially when year-over-year we see that cuts decreased steadily from August to December. With the economic contraction in full swing, it is likely cuts for November will remain above 95,000 for the month.

Data: Challenger, Gray & Christmas
Charting: rp

Looking at this year’s leaders, we see that finance holds the crown, automotive is trailing and picking up steam, while government/non-profit jobs remain at an arm’s length in a distant third.

Cuts in the finance sector, which have slowed down, will most likely continue on their deceleration while I expect the automotive sectors cuts to pick up tremendous steam.

Today, General Motors reported their quarter with an astounding net loss of $2.5 billion. What struck me was the $1.7 billion non-cash charge for the settlement concerning the elimination of post-65 salaried retiree healthcare coverage – ouch. You better believe there are more cuts coming down the line.

Ford, on the other hand, reported a mind-numbing $7.7 billion cash burn for the quarter. This is the kind of thing that makes you slam your head against a desk, full speed. Problem: efforts to counter this mounting burn is being offset by reduced sales. More cuts, more cuts and more cuts are in store for the near-term.

According to Federal Reserve policy-maker Dennis Lockhart, "The U.S. economy in September and October appeared to weaken dramatically ... Problems are now broad-based."

With this knowledge we can only expect auto sales to weaken further, continuing the downward trend and increasingly sputtering GM and F into further trouble. More on this later…

Data: Challenger, Gray & Christmas
Charting: rp

**2008 data is a prediction based upon the author's calculations

Now, assuming that all of that news was absorbed into your skull, let us move onto something which may be considered good news.

Considering the scale of the current economic retrenchment, we see that 2008 will likely not yield over 1.2 million job cuts. According to my calculations we will hover somewhere between 1.04 and 1.1 million cuts for the year. Essentially, we are living 2005 all over again.

The spin on this is it could be much worse, for instance, 2001 which had over 1.9 million job cuts. Only time will tell as November and December send 2008 on its merry way and into the history books.

rp

Automakers Face Catastrophic Week

It is the first week of the month and you know what that means.

New data.

Unfortunately, November's data has shed light into some of the worst numbers in years. That's right; the automakers have officially fallen off a cliff. Believe it.

The US SAAR Total Sales came back atrocious. The Challenger jobs data is disappointing, albeit, it was not expected to be an uplifting report.

Although many were hoping that Obama's victory would spur the markets, it appears after today's close that may not be the result. Granted, it is one day into Obama's victory -- do not jump to conclusions.

GM and F report Friday. I would not be surprised if one of the firms file for Chapter 11 and restructure themselves accordingly. The choice to be made is wait and prolong the pain or make this short and sweet. Kind of like taking off a band-aid.

More detail and predictions to follow.

rp

Great Fall Drives: Chicago to Denver

Now that fall is in full swing we can take a step back and enjoy the foliage.

All of the gorgeous oranges, reds and yellows are showing in all of their glory. Although one would debate taking that trek up to Vermont or Maine, I have a different suggestion for you. Take four days out of your schedule and head out to Chicago. Then, drive to Denver. Not in a straight shot either, meander.

Explore Americana and immerse yourself within the Midwestern culture.

Want to know more, check out the my published work on TheStreet.com.

rp

TheStreet.com: Audi Mileage Marathon Coverage

Greetings!

Last week, my story regarding the Audi Mileage Marathon was published at TheStreet.com.

If you would like to get a peek, click here and enjoy!

Friday brings the arrival of the Bosch Smart diesel. I am looking forward to seeing how practical a car of this midget-like size can be. After all, I am nearly seven feet tall - will I fit?

The legacy continues...

rp

Day 5: The Mile-High City

Here it is, the final day. Sad but true, the Audi Mileage marathon is coming to a close.

Amarillo is an interesting town. Relatively quiet and people keep to themselves. I wonder how it is growing up in a place like this. Growing up in suburbia was not all that bad, how is it in the great American plains?

Anyhow, back to the cars.

The Audi Q5 TDI made for an interesting leg from Dallas to Amarillo. Although it seems like a reasonably sized auto, it does not have that much interior room. As a matter in fact, I think the new A4 has better interior volume.

Source: rp

Riding in the Q5 became downright painful at some points. Although the sport seats provide great lateral, thigh and lumbar support there is not a tremendous amount of room to “stretch out,” your legs in the floor boards. Thus, for a tall individual, it can get very uncomfortable very fast. Little over an hour of driving I mercifully scrambled for the seat controls to change my driving position – I was dying.

On top of this, the driving position is awkward. In the BMW X3, you feel more in the car, where as in the Q5 you feel like you are driving a horse and buggy. On top of the vehicle.

Furthering upon this, the seating position is quite inboard; meaning, designers placed the seats closer to the center console. Not much room to the right but plenty of room on the left.

Driving wise, the car is fantastic. Pick-up is there when necessary and the seven speed transmission is a great way to manage your miles-per-gallon effectively. One thing I love about diesels, the torque. Passing is done with ease in sixth gear; plant your foot and watch the revs-per-minute rise and whoosh, you are gone.

I cannot say enough about this drive train. I love it. The transmission and engine are perfect for each other. Say what you will about “flappy paddles,” or tiptronic transmissions; they work for these cars.

Source: rp

As I said in an earlier post, the interior is typical Audi, the best. Top-notch materials and design make it an appealing atmosphere. Far from the juxtaposition of a Chevrolet Malibu.

Yeah, I said it.

Overall, the Q5 feels solid, as if it was created from one solid chunk of metal. There is a confidence-inspiring heft to the vehicle.

One thing that was interesting was the steering. Surprisingly heavy. Enough to make one’s arms tired after spending a sizable amount of time in some twisties. It reminded me of an E46 330Ci with 18s and a sport suspension I used to pilot. I wish the Q5’s steering was not as numb but it is an Audi, so, I should not be surprised

Rolling through New Mexico was a trip; it is the equivalent of driving on Mars. No one is around, no buildings and no stops. Just you and your two lane road ahead of you.

Source: rp

It was awesome.

The more we pressed on the more I realized how much open land there is in the Great Plains. My German co-pilot muttered several times “My, what a big country.”

Just outside of Denver, the crew and I stopped off at Pikes Peak International Raceway. What a great time! Peculiar driving in an oval but it was certainly memorable.

Arriving in Denver, we were so late that we did not get the opportunity to fill up with the IMSA officials. So, we do not know our last day’s traveling worth of miles-per-gallon. Does that bother me?

No, the trip computer insisted we yielded over 30 MPG.

rp

Day 4: Amarillo, Here We Come

On the road to Amarillo.

Setting off from lovely downtown Dallas, I notice things are not quite normal. People are driving around the town in convertible Jeep Wranglers screaming, flags are flailing and there are an abundance of specific colors.

It is the big event of the week: football. You know, I have been to a few football games in my day and I have tailgated for certain events; however, nothing could prepare you for Dallas style football. Essentially, the whole city is transformed into a gigantic tailgate party and everyone adorns the garb of the team they are rooting for. I have never seen anything like it.

Something more important, at least in my world, comes up. Starting on day four, I now have the opportunity to drive the new Audi Q5 3.0 TDI. This is a big deal because the Q5 will not be released in North America until spring 2009, according to Audi executives.

Source: rp

Where does the Q5 place in Audi line-up? The Q5 is Audi’s answer to smaller sport utility vehicles, such as BMW’s X3 and Infiniti’s EX. So, you can presume pricing will slot in higher than Volkswagen’s Tiguan and hopefully lower than BMW’s X3 – in an effort to remain competitive.

Give or take a $35,000 base price.

It is a rather interesting juxtaposition of exterior design. I see a Volkswagen Tiguan which has mated with a Q7, really.

The interior is what you come to expect from Audi. Top grade materials positioned in an appealing A4-like set-up. I have yet to see a firm with the ability to trounce Audi’s interior design and usage of quality materials.

Source: rp

Motoring on through northern Texas, the flat land continues on.

One of my fellow journalists remarked “If Christopher Columbus sailed and landed here, he would have certainly thought the world was flat.”

Passing through small towns with populations smaller than an apartment complex was rather humbling. Population 566, population 1,600, population 2,455. Tornado Alley is a peculiar mix of homes, people and shops.

I suggest that everyone take this trip at least once. Not only is it an awe-inspiring experience but you get to see what the real Texas Chainsaw Massacre looks like!

No, but seriously, the stopover in Wichita Falls was interesting. The grilled chicken and baked potato dish I received was tremendously good. Perhaps, I should fly down there and steal their recipe.

Source: rp

After arriving and settling in at rainy, windy Amarillo, the event headed over to something classified as only Texas – a rodeo. Needless to say, these people must be out of their mind. 15 year-old boys hopping on bulls and mustangs in order to see how long they can hold on for? It is wild!

Oh yeah, and our Q5 obtained over 32 miles-per-gallon.

The cars are managing to impress all of the journalists. As the daily reports come in at breakfast, joined by gasps, the results continue to draw much attention. Strategies are still varied; however, it seems many have begun to enjoy the landscape and vehicles more and more as Wave 2 progresses.

Stay tuned for day five, which takes the trip from Amarillo to the mile-high city, Denver.

rp

Day 3: Dallas-bound

Arriving in Memphis at nearly 8:00 p.m., we soon realized we were the townspeople. So quiet, you could hear a pin drop. Downtown Memphis was reminiscent of a bad western movie.

Needless to say, there is not much else to expand upon about Memphis.

Following a night’s stay in The Madison, my partner and I soon found out that we had taken second place in our A4 3.0 TDI. Surprisingly, the vehicle obtained over 37 miles-per-gallon. Considering we were not trying the last half of the leg, we were happy with our results. I estimate if we had not been filming, the A4 could have easily topped over 40 MPG for the day.

Source: rp

Not bad for a 3700 pound pseudo-luxury sedan.

Following our announcements, we packed up our auto and headed directly for our next stop; Little Rock, Arkansas. The three hour jaunt was quite enjoyable. Even in top gear, the A4 can pull well for passing – no need to downshift. When we reached our destination, I had the opportunity to open the windows and give the A4 some gas in first gear. Wow, the sound is astonishing. The turbo makes a glorious whistle while resonating this powerful, truck noise.

Source: rp

After a brief lunch, we left the colorful city of Little Rock and motored on to Dallas. Much greater distance than anticipated. Thankfully, passersby managed to entertain us throughout.

One guy, just outside of Little Rock, happened to notice our camera crew. Trust me, it is not that hard when you have two individuals following in a Q7, hanging out of the sunroof and doors, videotaping and photographing. Our mystery man made sure to pose for our cameras and continued to make a total fool of himself. It was great.

Source: rp

It was these moments that I came to love on the marathon.

Onward bound. You would be surprised how many cows there are in Texas. Quite shocking, actually. I am convinced the entire United States receives a vast quantity of their beef from the Lone Star State.

After being harassed by inpatient drivers and truckers, we soon became within three miles of our stopoff for fueling. Unfortunately, it appeared that Dallas has quite a traffic problem, although, it is nothing compared to New York jams.

Source: rp

This gave us a chance to make friends in traffic. After all, everyone wants to be on television. So, we gave that chance to several people we spoke with while in the jam.

Eventually, we made it. The hotel where we stayed, The Joule, must be one of the finest hotels in the land. Even turning on my room’s lights was as magnificent as one of Beethoven or Mozart’s symphonies. Like the Audi, it too had a ridiculously amount of useless technology. You have to love it.

If you have the means, I highly suggest spending the night.

End of day three.

If you would like to see more pictures and videos from the journey, go to UnitedPictures and download the items.

Source: rp

rp

Day 2: Journey to Memphis

Do you think cornfields are boring? Yeah, so do I. However, when you are behind the wheel of an A4 3.0 TDI, things change quickly; not to mention lanes.

Starting the morning right, by getting keys to my Audi, I headed out to the starting grid. Car number 8, my new love until October 13.

The A4 may be the best car out of the entire fleet. It has the best styling, nicest interior and great power. I adore the sport seats with alcantara inserts. Fantastic for gripping.

Source: rp

Upon start-up you would not think you are behind the wheel of a diesel. Chatter is kept to a minimal level and pick-up comes on briskly. The flag drops and we are rolling. After realizing the GPS navigation system has no idea what it is stammering on about, we find our way to Michigan Ave. and the satellite picks up the vehicle.

Finally, able to put the hammer down. Well, not exactly. Utilizing a very simple strategy, I pin the vehicle’s speedometer at 70 miles-per-hour and give the throttle the slightest touch. Every millimeter counts. Every hill’s incline and decline counts. If a feather lands on the A4 whilst flying overhead, you bet, it will count.

Source: rp

Chicago to Memphis is most likely one of the most interesting routes to travel. Being born and raised in the New York City region, culture shock sets in. Barns, cornfields, silos, and horses surround in all directions. The horizon falls straight to the ground.

Source: rp

After the first leg, my partner and I were guessing we received over 35 MPG. Considering we did not even try for the second half of driving, my partner and I were quite content with our estimates.

More to follow.

rp

Day 1: Audi Mileage Marathon

You know you are at an Audi event when you hear those lovely, German accents. Let me tell you, these guys know how to treat the media.

Throughout the next several days, I will be participating in the Audi Mileage Marathon. Essentially, the gist of this event is to help introduce Audi’s latest diesel technology to the United States. I am in Wave 2, which means, I will be traveling from Chicago to Memphis, Dallas, Amarillo and Denver.

As journalists, we are the best force to get out Audi’s message. The new diesels are here and they are not like the old diesels Americans are used to.

Arriving in downtown Chicago, I was greeted by a team of individuals affiliated with Audi AG. After going through the paperwork process and making sure to outfit us with plenty of Audi gear, we were turned loose like a bunch of kiddies at a carnival. Forget about the cotton candy and the clowns, however.

After settling in, I made sure to take in my surroundings – I have never been to Chicago before. It was during this time the participants from Wave 1 arrived at the hotel and W. Adams Ave. was filled with silver, stickered-up Q5s and Q7s.

There I was, at the corner of an intersection, when a Q5 TDI pulled up. Once the light changed to green it made, what must be, one of the finest sounds I have heard from an auto in a long time.

The only way I can describe it is a small diesel truck motor with a significant turbo “whooOOsh.” It sounds majestic. I must make note, it is a very subtle, diesel sound. Not loud, not the clatter diesel’s typically make.

I hope I can get sleep tonight; I am eagerly awaiting the keys to my own A4 3.0 TDI. I have a good idea of which strategy I will try to employ to achieve the highest miles-per-gallon. Wish me luck.

It’s Christmas eve all over again.

rp

Batten Down the Hatches.

The bailout has been rejected. Say it again, but this time, think about what the implications will be. Are you curled up in a fetal position yet? You should be.

In a stiff vote of 205 to 228, the House sealed the deal on the $700 billion bailout package.

How can the leaders of our nation be so obtuse? Without this package, Armageddon has waltzed into our lives and will surely Riverdance on our chest – with spiked heels.

Was Warren Buffet’s warning to Congress not enough? The fact the markets have stumbled downwards for a year, doesn’t say anything? When the Canadian dollar reigns triumphant, we have a problem.

The House members should be ashamed of themselves. Although, they believe that they have saved the taxpayer and the greater good by screwing over Wall Street. I guess they do not believe in trickle-down economics. Life on Main Street is going to get harder.

In turn, we will see the struggling automotive industry get even worse. With the lack of credit availability and much tighter spending habits, it is unlikely we shall see a rise in auto sales.

The end of the week will bring results from September’s US SAAR auto sales. I am looking forward to the numbers and what they bring; however, I do not believe it will be positive given the macroeconomic environment. Even with the insane incentives, I do not think many buyers lined up this month.

Oil is under $100 as of press time, so, gas prices should lower within two weeks. Let’s see how that shoe drops.

In the meantime, I have constructed a tinfoil hat which should, in these times, protect against Armageddon visitors. I suggest you do the same if you intend to ride this one out.

rp

Audi Mania!

Audi has done it again and again. If there is a third time, I promise it will be a charm. Audi has blessed the world with two new sport-sedans and they’re pissed off.

The new RS6 sedan will be utilizing the same power plant as the avant, which is out overseas. The statistics are astounding: 580 bhp accompanied by 479 lb-ft of torque. Essentially, that is the same as God descending from the heavens. Striking and awesome.

Source: Autoblog.com

The twin-turbo V10 means business and will not stand for anything less. 0-60 comes in an Audi-claimed 4.5 seconds. I think it is safe to assume it can knock off a couple tenths of a second from their claim, albeit with 580 bhp, I was hoping for a sub four second number.

Source: Autoblog.com

I am going to stop there though. Long story short, it would be a fantastic rival to BMW’s M5 and Mercedes’ E63 AMG, but the Audi folks will not be bringing the RS6 stateside. I find this quite disheartening because it is head and shoulders above its competitors – at least in styling.

Something we Yankees can relate to is the B8 S4. Yes, she will be coming stateside.

One problem; no more avant!

Blasphemy. From the company that produces the best wagons in the planet, we have received the shaft.

Looking beyond this disturbing fact, Audi has done a fantastic job putting together a respectable offering. Fitted with a new 3.0 TFSI supercharged V6, the new S4 will do 0-60 in a claimed 5.1 seconds. Not bad. The specs are pretty nice, 333 bhp and 325 lb-ft torque. Personally, I would have loved to see a twin-turbo set up a la B5 S4. God, I loved that car and just about every B5 owner did as well.

Source: Audiworld.com

Matted to the new engine is a fresh 7-speed “S tronic,” dual clutch transmission. You can expect this “S tronic,” gadgetry to impress with head-snapping upshifts. As with all modern transmissions, I am stoked to hear the throttle blips.

An interesting option is the new quattroSport rear differential. I want to hear more details on this when they are available.

The car’s interior is, as expected, stunning. Audi does every interior “right.” They really do. A mixture of top-notch plastics, piano black trim and aluminum adorn the cockpit. If that center stack is oriented slightly towards the driver, Audi has won me over – for good.

Source: Audiworld.com

Audi has been turning out fantastic designs as of late. The brand is where BMW use to be; subtle, classic and aggressive designs. Remember the E39 M5, the E46 M3? How about the E38 7-series? The new design language Audi has tapped will make many new styling triumphs. I wish I could shake the designer(s) hand.

Expect the B8 S4 in showrooms next fall as a 2010 model – womp womp.

Conspiracy theory: Audi kept the B8’s bhp under 350 in order to make room for a new RS4 which I presume will debut with upwards of 450-500 bhp.

In other Audi-related news, I will be covering the Audi Mileage Marathon from Chicago to Denver. It will be a very nice way to get more acquainted with Audi’s diesel variants.

rp

Chevrolet Volt Revealed to the Public

Newsflash! Exciting event on the horizon.

I hope that is enough explanation for my absence.

Moving along, it appears as though General Motor’s Volt is well, not spectacular. The technology is far from awe-inspiring. Especially, when GM had the EV-1. At least they got the Camaro right.

I was expecting much more. Disappointed, to say the least.
The upcoming Volt’s design has been radically revamped as well. Although the company claims the changes were done for aerodynamic purposes, I do not understand why they would alienate an excited fan base. The Volt had a pretty reasonable following with individuals putting deposits on the concepts design; it was that good.

Source: carmagazine.co.uk

Clearly, GM was not thinking clearly from a marketing perspective. Before revealing this concept, the company should have put the car through its paces and determined if aerodynamic changes were necessary. Maybe “the General,” will figure this out after they see an exodus from the waiting list.

Source: carmagazine.co.uk

The car’s rather blasé styling leaves me cold. I was holding higher expectations for such a ground breaking car. Perhaps I became a victim of the over hyped media blitz this car is receiving.

Does anyone else think this car’s styling is eerily similar to the Honda Civic? To clarify, I am speaking of its front-end. That is not necessarily a bad thing, as I feel the Civic has a nice, conservative look to it.

Source: myride.com

It would have been nice to see something original and groundbreaking for this auto. Kind of like the concept.

In other news, the company announced plans to build a new $370 million plant to produce four-cylinder engines for the Volt as well as other models.

rp

When it Rains it Pours.

Although the soul intent of this site is to provide automotive commentary, this is too big of a story to ignore.

News is breaking nearly every minute. I have been watching Marketwatch, Bloomberg and CNN in disbelief since 12:00 midnight.

The stories get worse every second.

MER and BAC in talks? What?! Now BAC is buying MER? What the hell?

LEH's suitors turned and walked? LEH is filing chapter 11. Wow.

$70 billion fund being set up? What is this?!

AIG is looking for a $40 billion loan from the Fed? How can this happen?

All hell is breaking loose on the street early Monday morning.

God help us all.

rp

Challenger Report: Painting an Ugly Picture

With the financial industry in chaos, thank you Lehman Brothers, the auto sector is looking quite subdued right now.

But wait, there’s more.

Challenger, Gray & Christmas is the nation’s first and oldest outplacement consulting firm. You know what that means; these are the job cuts guys. The firm’s most recently released report displays some rubbish numbers for the auto industry, which lead August in job cuts.

To be more specific, automotive accounted for 17,233 job cuts - a nice chunk out of the 88,736 cuts for August. Year-to-date, the automotive industry has tallied up a significant 80,323 cuts. This is nearly an 83 percent increase year-over-year from 43,897 cuts in August 2007.

Data: Challenger, Gray & Christmas

When I spoke with John Challenger, CG&C’s Chief Executive Officer, in July, he did not seem to believe we would surpass one million cuts for the year. Granted, many things have changed since and it appears that the markets will breach that epic number.

In his latest report, Challenger said “We have not seen this level of summer job cutting since 2002, when the country was still struggling to recover in the wake of the 2001 recession and September 11.”

I assume that at the current pace we will reach somewhere in between the levels of 2002 and 2003; approximately 1.2-1.4 million job cuts for the year 2008. Please note the graph “Yearly Job Cuts.” You can see the level we are at year-to-date compared to previous year totals.

Data: Challenger, Gray & Christmas

Clearly, this will yield a sizable impact on the auto builders. Not only will they be shedding staff to compensate for their cash burns, the companies will also experience even poorer sales due to less consumer spending.

With this in mind, I reinforce my position on September’s US SAAR Total Sales data coming back weaker from August.

Get out your helmets. It is going to be a rough ride into 2009.

rp

What Happened to Free Markets?

Another bailout? Again? Could it be possible?

Yes. Unfortunate but true, it is becoming more common talk that we could see another bailout with the automakers stepping into the batter’s box.

As my prior write-up noted, sales remain to struggle even taking into account August’s seasonality. Not very positive looking charts, down below. Year-over-year the “Big three,” have taken on serious debts and have managed to align themselves in an unfavorable position regarding their model offerings.

Now, the United States government has aided in two bailouts - namely Bear Stearns and the Fannie/Freddie debacle – and this has the auto industry feeling as though they deserve their fair share. Thus, this has raised the chatter on a possible automotive industry bailout due to the sizeable losses which have been reported from the domestic builders.

This is a tough situation.

On one hand, the government has to look to protect the workers of the automotive industry and guard the US economy. Remarkably, the US economy has managed to prevail relative to the damage already done. It is a wonder if this could be the final straw.

The other hand paints a different picture, depicting the government star-gazing as the manufacturers fail or consolidate to stay afloat.

American auto manufacturers got away with producing over-sized vehicles for far too long and the industry is paying the piper. To analogize, the American OEMs faltered precisely where the big banks ran astray - they got greedy. General Motors, Ford and Chrysler all had high margin truck portfolios which yielded big rewards; unfortunately, risk reared its ugly head.

The past year has provided some stellar collapses. Real estate, mortgage-backs and now sport utility vehicles. Unfortunately, there are going to be repercussions for these firm’s actions. The only way I can see the playing out is through mergers or consolidations.

Welcome to the SUV bubble.

rp

August SAAR data: A Fluke.

Although we are currently in one of the greatest eras for automobile development and innovation, sales are still tanking.

August’s US SAAR total sales have painted a reasonably grim picture. You may ask, “how?” or “why?” The approximate 1.2 million vehicle sales increase can be seen as artificial due to the incentives that you can find on 2008 models and gas guzzling sport utility vehicles.

Data: Bloomberg

A CNN report implied that due to oil’s recent pull back, currently near $106 per barrel, consumers are starting to get back into sport utility vehicles. Check the 8th and 9th paragraph of that story. I am not sure if I believe that as I do not see gas prices below $3.50 in my region; what would motivate someone to run out and buy a SUV?

Are the incentives that good? What does it matter if you pay your savings back in gas bills during the vested life of the vehicle?

Back to the SAAR data. Another crucial point which must be taken into consideration is that during this time of year, auto dealers are attempting to push out as many of the prior year’s cars out of their inventory before the new models are introduced. There is a seasonal re occurrence and you can see it on the Domestic Sales and Japanese Sales charts.

Data: Bloomberg

Last August, Domestics and Japanese autos saw a nice up-tick in their respective sales. This year, it appears that General Motors is seeing a similar trajectory while Ford and Chrysler are struggling. The Japanese are fairing well with similar trends in respect to last year.

Data: Bloomberg

Essentially, after taking into consideration the seasonality of August’s numbers, as well as the significant increase in incentives I can not foresee this year’s car sales to remain on this upward trend. I am calling August a fluke. It is extremely negative to see that Ford and Chrysler are struggling with sales this past month when there should have been an improvement in sales given the current incentive programs and 2008 model year liquidations.

Out of curiosity I inserted trend lines into these charts and it appears the only company which is doing well sales-wise is Honda. The company, known for its gas-sipping cars, recently surpassed the Ford F-150 as the most sold model in a given month - Three cheers for the Honda Civic. Pretty earth-shattering news for the car world.

If you want to see how bad things have gotten, look at the year-over-year numbers. They will turn anyone who is not squeamish a nice shade of green. US SAAR has declined nearly 16% while the big three, General Motors, Ford and Chrysler lost 20%, 25%, and 34%, respectively. The Japanese are doing much better albeit not well by any means; Toyota’s sales lost 9% YOY while Honda dropped 7% in sales.

The Domestics will have to keep their chin up during this time of distress and pray their new models and changes reverse their losses. Good luck, boys.

Watch for next month's SAAR data to downtrend, I can not see it rising or going flat.

rp

Lexus IS-F: Ready to Rumble

Published this week, on Monday, was my first auto review.

Essentially, it details the experience of having an IS-F for several days. Thankfully, I was able to tack on an extra 500 miles onto its odometer while gaining further insight into the latest technology coming out of Japan.


Take a look and I am sure you will walk away with a different perspective on Japanese autos and their future in the United States.

rp

Small Cars Coming Back in a Big Way

As we have been seeing many firms beginning to change their model line-ups due to depressed sales and higher energy costs, small cars are back.

Source: NYTimes
Car: Volkswagen space up! Concept

A great article in a recent publication of Winding Road, the online magazine details future pint-sized options and gives insight into upcoming offerings. If you are interested in the future of small cars and what it will hold, I highly suggest checking this out.

Particularly interesting to me are the new Volkswagen Scirocco and the Alfa Romeo MiTo. Both are beautiful examples with fantastic styling and decent drivetrains.

Personally, I harbor a love for the Scirocco because the 197hp engine mated to a DSG transmission is fantastic. I yearn for throttle-blipping.

I am crossing my fingers Volkswagen gets their reliability in check. As an original owner of the 2004 Volkswagen Touareg, nicknamed “disaster” by yours truly, I have a pretty good idea of what VW can do to ruin an awesome machine.

Check out the feature, it is a worth while read.

rp

Good Times Are Here Again.

Perhaps it is a bad time for the automotive industry. Oh, wait! It is an awful time for the auto manufacturers. At least that is what the majority of the media is reporting. Taking a step back and observing, it seems as though the industry has been turned upside down, essentially.

The Germans are infatuated with flashy, swoopy, awkward designs (with the exception of Audi AG). The Japanese are creating fast, interesting vehicles. The American manufacturers are building decent looking, well-received cars. And, the Italians are trying to make a comeback stateside.

Last time I checked, it should appear more like this:

The Germans are infatuated with subtle, timeless designs. The Japanese are creating emotionless, boring vehicles. The American manufacturers are building unreliable garbage. And, the Italians are too busy in the mirror; they do not make it to the factory to build more than 500 units per year.

Oh-kay, oh-kay. You have got me. Oil prices are taking away sales, big time. Last month’s seasonally adjusted annual selling rate (SAAR) data showed total new car sales at 12.55 million units sold while we are use to seeing approximately 15-17 million units sold. SAAR gives a glimpse into what the year’s total production will be if demand remains constant into the year’s end. Clearly, July’s number reveals a poor year for sales.

Although many Wall Street research analysts have changed their views of American auto builders going bankrupt, due to oil’s “back down” from $147 a barrel, they remain to see a significant cash burn. It is essential these firms inject fresh capital into their respective balance sheets in order to make it past next year. Years of reliance on pig-like, high margin sport utility vehicles, which had automakers absolutely delusional (Porsche produced an SUV, is it any more clear than that?!), have harmed manufacturers due to the recent spike in energy costs affecting demand. Inventories are building up alongside the layoffs which keep rising, just take a look into the Challenger report.

Source: WTRG Economics

Did Ford whole-heartedly believe that consumers would want Expeditions with $3.50 gas? Did General Motors expect buyers to rush out to their nearest dealers to pick up the latest and greatest Yukons and Escalades when inflation came home to roost? Now, the manufacturers who were way off the curve have to retool their respective factories and rework their game plans. Rightfully so, this may paint a dull image into the future of the automotive industry as well as the American economy, but I beg to differ.

If you ask me, this must be the best period the auto industry has ever found itself in. Out are the old, gluttonous vehicles many have come to know and unfortunately love. In are sleeker, smaller and more practical cars. Miles-per-gallon numbers are on the rise! The shock from crude oil’s jump has lit a fire under the American’s and has motivated them to compete; this is good.

Look at the new Dodge Challenger and the upcoming Chevrolet Camaro. Although retro-inspired rehashes, these cars are exciting and I predict they will both sell very well. Note: the Camaro’s interior is one of the best American interiors I have seen in eons. It appears that Chevrolet will not drop the ball like Ford did with the Mustang concept, i.e. cost cutting.

Source: PimpMyChevy

With all of the incentives and deals on cars, especially with 2008 inventories dwindling due to 2009’s making their annual September/October debut, I would not be surprised to see August’s SAAR number see a rise. Could I be wrong? Absolutely. But, I am going to put more weight into the fact that with crude’s back track to teens we will see a small “snapback,” and some more volume pushed out dealer’s showroom floors.

It is good to see that the American’s have been pushed to act. This will fuel other foreign manufacturers to continue raising the bar and resist complacency. So, do you understand where I am coming from now?

rp

Ferrari California: Success or Failure?

An interesting subject, I introduce to you the new Ferrari California. Essentially, the car has been unveiled as a revolutionary product for Ferrari's line-up which targets a new demographic, specifically females. Naturally, this has the Ferrari community divided.

Source: Ferrari North America

Source: CarAdvice

The California is a new step for the brand and that is not necessarily a bad thing. The mis-step is seen in the California's lackluster design coupled with a name which represents beauty, exhilaration and a magnificent V12.

Personally, I dislike this vehicle because it is sacrilegious to the California name. The original, 250 GT California Spider SWB was a front-engine V12 and if Ferrari wanted to "do it right," it should have utilized a V12.

Then, there is the design which is quite flawed. The new California reminds me of a Calculus textbook where the vintage 250 GT California is a representation of car pornography; easily one of the top designs in the automotive history. One must note, when looking at a 250 GT California, it is a very simplistic design; however, it does stir something and make you feel. The new California does not do this. Every time I stand back and look at this new vehicle I see a hard-top wannabe Mercedes-Benz SL targeted at Rodeo Drive mothers.

Looking at the design of the new California, there appears to be little mistakes which eventually add up to a big catastrophe. One area that bothers me is the side profile. Do not get me wrong, the car's side profile is probably one of its best attributes; however, that side crease appears as though it was placed there to break up the design. The way it twists and digs into the aluminum body is gut wrenching. Perhaps it would have been wiser to stick with a sleek, smooth body while emphasizing the rear bonnet a la 250 GT California which appears to become "pinched".

Which brings me to the next design issue, the rear bonnet. A problem with the new Cali, it has been pointed out by many in spy photographs and individuals who have seen it in the flesh, is the sheer scale of the rear bonnet compared to the front of the vehicle. It puts Jennifer Lopez to shame. It makes the front-end look dainty and the rear look gargantuan, proportions are crucial. I cannot harp on this too much though, because there was no way to make a smaller rear end when the design called for a hard-top. I do think this car should have been a rag-top, but, this car has to conform to the latest trends of southern California trophy wives.

The stacked exhaust, you either love it or hate it. At first, I hated it, but after acquiring a Lexus IS-F for a few days, I came to like it. To say it is a copy-cat design from the IS-F is obtuse, it is can be argued it is reminiscent of early Ferrari racers of the past which commonly featured stacked pipes. Yes, I am defending the stacked exhaust.

Probably the most obvious flaw is the chunky black area which runs the entire rear of the vehicle. Encased is the license plate holder as are two disgustingly large rear fog/reverse lights. Since when did Ferrari start creating lights which rival the scale of Infiniti (check out Infiniti's M35/45 if you do not understand). Something tells me these lights could have been integrated in a much more eloquent fashion.

Source: Ferrari North America

Source: Flickr -IJsselstein

Speaking of rear taillights, do not even get me started on these. The recent taillight treatments seen on the F430 and Enzo are not appealing in my eyes and this one does not get much better. Bad Pininfarina, bad.

The new California's face is actually the car's best feature. Sure, the headlights have a slightly Japanese look to them and the car's grille should be slightly less happy, but overall there is not much to nit-pick. One aspect which was carried out very nicely was the hood scoop; very unassuming and subtle. Well played, Pininfarina.

In reality, design can be something which can grow on anyone over time. It is not something I will remain very critical on because I am sure in the flesh the California will somehow "make it work." The sour grapes on this car remain in the goal of this vehicle; to be mass marketed as a practical Ferrari in an attempt to take sales from Bentley's Continental GT.

I would have loved to see Ferrari create something just for the sake of making a stellar vehicle, not trying to steal sales using a shoddy design, a largely Maserati underpinning and a legendary name. The company is better than that, at least, I hope.

I predict this car will sell out, quickly. But, do not expect it to be to Ferrari enthusiasts - probably those "status-seekers" looking to tool around town in the latest and greatest. I wonder what Ferrari's next step will be after this. Time will tell.

This car will remain successful in sales and production; however, it will remain a failure to Ferrari's branding.

rp