Tuesday, December 15, 2009

VW's Shot Across the Bow


Last Monday we reported that VW had quite publicly announced its plans to unseat Toyota as the world's largest automaker by 2018. The company has certainly wasted no time moving ahead with those plans. Earlier today, VW spent around $5.8 billion to acquire 49.9 percent of Porsche Automobil Holding (by all accounts opening the door to a full takeover down the road, which is an impressive sort of jiu-jitsu maneuver since Porsche tried -- and failed spectacularly -- to do the same thing to VW this summer). And it's just been announced that VW is now the proud owner of a 19.9 percent stake in Suzuki, to the tune of an additional $2.5 billion.

And while Suzuki may not have the same cachet as Porsche in the U.S. (despite some favorable reviews of its new Kizashi), it is the dominant brand in the important Indian marketplace. VW's sales -- thanks in part to being the market leader in China, the world's largest market -- combined with Suzuki's numbers, outpace even Toyota, still the world's largest brand. However, Suzuki CEO Osamu Suzuki was quick to point out that the deal was not a takeover but a partnership. Suzuki will benefit from VW's engineering expertise and hybrid and other forward-looking powertrains. "Suzuki is not becoming a 12th brand for Volkswagen," he said.

(Source: Automotive News.)

2011 Honda CR-Z Details Leaked


The details of the 2011 Honda CR-Z have made their way to the Internet via a Japanese sales brochure, giving everyone a glimpse of exactly what we can expect when the 2-door hits dealerships sometime next year. The CR-Z is designed to be a hybrid that’s focused on driving enjoyment -- a goal that nearly every other battery-equipped eco-fighter out there hasn’t even bothered to attempt. So how does it stack up next to its competition? The CR-Z will face heat from the likes of the Toyota Prius, corporate brothers Insight and Civic Hybrid as well as the Lexus HS 250h.

According to the leaked brochure, the CR-Z will arrive in the Japanese market with a 1.5-liter 4-cylinder engine paired with a small electric motor. Combined output is expected to be around 126 horsepower and 164 lb-ft of torque; drivers will have their choice of a continuously variable transmission or a 6-speed manual transmission. Right now, the reigning sales champion of the hybrid market, the Toyota Prius, packs a 1.8-liter 4-cylinder/electric motor combo good for around 134 horsepower and 154 lb-ft of torque, while the Honda Insight ships with a 1.3-liter 4-cylinder engine and electric motor with 111 horsepower.

The really heavy hitters are the Honda Civic Hybrid with its 130 horsepower and 176 lb-ft of torque and the 2010 Lexus HS with its 2.4-liter 4-cylinder and electric motor capable of a combined 187 horsepower. At first glance, it would appear Honda’s “sport” hybrid is seriously outgunned, but it’s important to remember the CR-Z is a coupe. While the rest of the hybrid offerings out there have to lug around three extra seats and two extra doors, the CR-Z should get away with considerably less weight -- making the car a little bit quicker relative to its power.

Even more notable, Honda has made it clear the CR-Z will be available with an honest-to-goodness 6-speed manual transmission, which should be more entertaining to operate than the CVTs found on most hybrids. The brochure didn’t mention price, but we’ve been told in the past to expect an MSRP in the neighborhood of the Civic Hybrid, or around $24,000. That puts the CR-Z smack in the middle of the hybrid market with the Insight, at $19,800, on the low end and the Lexus HS up top at $34,200.

Of course, no one buys a hybrid to be a sports car -- they buy it for the fuel economy. Unfortunately, the leaked brochure didn’t mention the CR-Z’s EPA numbers, but judging from the hardware onboard, it wouldn’t surprise us to see the car manage slightly better than the Civic Hybrid’s 40 mpg city/45 mpg highway. Those figures should be good enough to keep the CR-Z competitive, even against the 50/48 from the mighty Prius.

(Source: ToV)

(Photo courtesy of Honda.)

Volt Could Be a Shot in the Arm for Detroit

Posted by Lawrence Ulrich on Monday, December 14, 2009 9:34 AM

Detroit’s woes have been brutally documented: bankruptcy and bailout for GM and Chrysler, 17 percent city unemployment, a ruinous real-estate market -- and in the latest gut-punch, the Tigers choking away their shot at the MLB playoffs.

Any shred of good news is welcome in my former hometown. Which is why GM’s decision to build two critical models in Detroit -- the Chevrolet Volt plug-in hybrid and the strong-selling Chevy Malibu sedan -- is a plus for the city and state.


This isn’t charity on GM’s part: Michigan pulled out all the financial stops to get the Volt. Gov. Jennifer Granholm backed $945 million in tax credits and grants to spark development of alternative-fuel cars and technology in Michigan. The state reeled in an additional $1.35 billion in Department of Energy grants. After all that, the Volt is scheduled to begin production late next year at the Detroit-Hamtramck plant, just a few miles from where I used to live in downtown Detroit. (The Volt’s sister vehicle, called the Opel Ampera and destined for sale in Europe, will also be built at Hamtramck.) Despite modest production volumes, the Volt could be a make-or-break vehicle as GM seeks to revamp its business and image. GM’s total investment in Michigan for the Volt will now rise to $700 million.

Additionally, the Detroit News quoted a United Auto Workers official in Detroit who said GM will switch production of the 2012 Malibu from Fairfax, Kansas, to Detroit, though GM manufacturing spokesman Chris Lee declined to confirm the report.

So, once again, the city is looking to Hamtramck to help spark a rebirth. I still remember the controversy the plant stoked before it opened in 1985. GM and the city had the plant’s 465 acres seized under eminent domain, displacing 4,200 residents and obliterating what was known to the locals as "Poletown" (thanks to its overwhelmingly large Polish demographic). Public opinion was divided: Ralph Nader got into the act, opposing the plant and drawing attention to protesters; other residents supported the plant for the 6,000 jobs it would bring. Mayor Coleman Young savaged Nader as a Washington carpetbagger with “a psychotic hatred for GM.” A 29-day sit-in at the Immaculate Conception church ended in July 1981 when police evicted and arrested protesters, and the wrecking ball soon followed.

Despite all that, the plant never did much to boost Detroit’s fortunes. Sales of Cadillacs built at Poletown plunged through the '80s and '90s. Only about 1,250 hourly and salaried workers remain at Hamtramck today, building the slow-selling Cadillac DTS and Buick Lucerne sedans.

I’ve long argued that if Detroit is to stage a comeback, it won’t be exclusively because of cars. Even the Volt and Malibu won’t bring back the good old days: GM today employs 21,000 people in Michigan -- fewer than one-tenth of the 215,000 workers of 30 years ago. GM’s Lee also said the Volt won’t initially require new hires at the plant. But the car is expected to bring spinoff employment, including in GM’s upcoming lithium-ion battery assembly facility near Detroit. A successful Volt could lay the groundwork for GM and Michigan’s bid to lure well-paying jobs in electric cars and technology. For a city that’s been mired in a vicious boom-and-bust loop for decades, every little bit helps.

Nissan Introducing Leaf to America


Nissan Leaf at Microsoft CampusSeveral car companies are working on electric car offerings, but it looks like Nissan will be the first to market with a mass-production, affordable model. To get the word out about the company’s new Leaf electric car, Nissan is taking the car around the country in what’s billed as the Zero Emission Tour. The tour made a stop at the Microsoft campus in Redmond, Wash., the other day, and I went over to check out the new car.

There were plenty of Microsoft employees stopping by to ask questions about the Leaf, and most wanted to know how fast, how far and how much. So here’s what the Nissan reps told us: The Leaf will reach 60 mph in about nine seconds, it can travel about 100 miles on a charge and it will be “affordable.” The actual price will be released closer to the on-sale date, but they expect it to be around the price of a Prius (which runs from about $22,000 to $27,670).

The Leaf looks like a typical small hatchback with usable cargo space and plenty of room in the rear seat for two adults. At the front of the Leaf is a small access panel that reveals two power inlets: one for the standard 110/220 that would commonly be used at home for overnight charging, the other designed for use at a commercial charging station where a 3-phase direct-current power source could charge the batteries to 80 percent in just 26 minutes. A 220 outlet would fully charge the Leaf in six to eight hours, perfect for an overnight charge.

So how much cheaper is an electric car to run versus a hybrid or other fuel-efficient car? Here’s the equation: The Leaf’s batteries store 24 kilowatt hours, which is equivalent to 100 miles. According to the Energy Department, the average cost of a kilowatt hour is 12 cents. That calculates to $2.88 for 100 miles – about the cost of a gallon of gasoline. The most fuel-efficient car on the market today, the Toyota Prius, goes half the distance for the same cost.

When Leaf goes on sale in December 2010, it will be built in Japan. However, within 18 months of introduction, Nissan expects to be building the Leaf in a new factory in Smyrna, Tenn. This will make it possible to increase production as well as lower the costs.

Check to see when the tour is coming to a place near you: http://www.nissanusa.com/leaf-electric-car/tour.jsp#/tour