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

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rp