2010 Opel Astra

GM has reneged on a deal that was almost closed, choosing not to sell Opel/Vauxhall and leaving the Germans angry. The latest chapter in this complicated story came after a Tuesday GM board meeting in Detroit that put forward the new corporate strategy. The company has pledged to pay back about €1.1 billion in bridge loans from German sources.

GM’s move is a setback for Magna, the prospective buyer, and the German government, which reacted predictably, and the German unions, which have offered to strike. As we last reported, the decision comes on the heels of European Union officials questioning the deal and workers in Opel factories in other countries protesting possible job cuts.

The decision came about because the company’s fortunes have been recently improving. European sales across the board are better, and GM’s U.S. sales were up 4 percent last month—no great shakes but the first increase in 21 months. (Ford saw a 3 percent increase; Chrysler a 30 percent decline.) Also, as one commentator said,

GM decided they just couldn’t envision a future without their German subsidiary, which provides most of their presence in Europe and is the main source of their fuel-efficient global vehicle platforms.

The company desperately needs these platforms and needs to be part of the global playing field. Restructuring Opel will cost some $4.4 billion—less, the board figured, than they would have had to pay out under the Magna deal, even with help from Germany.

The case for the renege also rested on keeping the company’s Insignia and Astra cars away from the competition in Russia (Magna’s interest was financed by a Russian bank). But GM is in no way out of the woods. Paul Horrell of Top Gear put it this way:

GM needs to have a solidly profitable European arm. So difficult days await the 55,000 workers in Britain and the rest of Europe, because factories will have to be shut to make sure that Opel and Vauxhall have a cost base that’s realistic for the number of cars they can sell. And more political battles will affect the result.

Despite the furor the decision has caused and will cause, I think it makes sense for GM to keep Opel. What do you think?

—jgoods

2009 Ferrari California

I’m a little jealous today of people in the UAE.

Normally, I count my blessings to live somewhere that never sees 120-degree days. Occasionally, though, it would be nice to experience something a little more exotic.

Take parades, for instance. In my city, the only parades we see consist of second-rate high school marching bands. Sometimes those parades include an “exotic” car, something like a 1987 Corvette. I can only dream of what a parade of over 100 Ferraris might look and sound like.

For those living in Dubai, though, a Ferrari parade is exactly what happened as part of the inaugural festivities of the city’s new (and world’s largest) Ferrari dealer. The Italian supercars wound through the streets of the UAE and ended up at the new Yas Marina Circuit in Abu Dhabi.

Lucky for us Ferrari-deprived Americans, the cameras were rolling and captured nearly 10 minutes of exotic car heaven. Check it out:

According to TopSpeed,

Among those participating in the parade included no less than some of the most important and influential personalities in Ferrari, including company chairman Luca Di Montezemolo, seven-time F1 champion, Michael Schumacher, current Ferrari drivers Kimi Raikkonen, Felipe Massa, and Giancarlo Fisichella, and the region’s ambassador to Italy, Claudio Doniosi.

That’s a pretty distinguished list of paraders… one I’d take over a marching band any day. Even if that day was 120 degrees.

Did anyone in the Dubai area see the convoy of Ferraris? If you could see 100 versions of any kind of car in a parade, what would you choose?

-tgriffith

What makes the ActiveHybrid 7 strange is BMW’s boast that it is the quickest hybrid sedan on the market. If speed is the objective, we’re not sure why a hybrid is the answer. Likewise, if fuel economy is the end goal, tuning the twin-turbo V-8 gas engine for an additional 40 hp and 30 lb-ft of torque seems silly. However, if a 7-series customer believes he needs a car more powerful than the 750i but doesn’t want to step up to the 12-cylinder 760Li—which we think he should—and also wants 15 percent or so better fuel economy, BMW has just the model.

Looking at the many entrants in the rarefied-price stratum of hybrids, the question we finally ask is “Why?” Particularly since the BMW goes head to head with the Lexus LS600h L, available now for at least two years. Why would one spend all that money to get a car that offers minimal performance and fuel economy advantages? To be hybrid hip, I guess.

Fisker has a different idea. They don’t want to build $110,000 BMW or Lexus-type hybrids but “affordable” plug-ins. We wrote last week that they were in negotiation for the old GM factory in Wilmington, Delaware, where they will reportedly build in three years a “family-oriented plug-in hybrid sedan that will come in at around $40K” after federal tax credits. The Karma S sedan (right) will start at $87,000. CEO Henrik Fisker isn’t all that concerned about engines. He told Autoweek that he “envisions a future where hybrids will get their own niche powerplants, specially tuned to the need of alternative technologies. A hybrid for example, probably doesn’t need to rev to 8,000 rpm.”

Fisker got a very good deal from a Department of Energy grant to buy and refurbish this plant, and that surely will give the company a leg up on the competition. Tesla just received a $29 million tax break from the state of California, which makes that state the likely home for the company’s future production.

Another stimulus, this one for electric car production, has come to Seattle to build a network of more than 2,000 car charging stations. “By December 2010, drivers in Seattle should be able to buy mass-produced, plug-in electrics that create no emissions and run for pennies a mile.” And the state has aggressively pursued not only federal money, which will fund this effort, but also the efforts of many hi-tech businesses that are greening up.

Another reason is that lots of “Generation Y” folks live in the Northwest, and they are partial not only to hybrid powertrains, but also to considering the purchase of Chinese or Indian brands of hybrids. This according to a study by AutoPacific reported in egmCarTech. If they are really hot for hybrids, they would do well to use the Hybrid Payback Calculator, which you can download here. It helps you determine whether the cost of a hybrid is really worth it. You enter in the car’s cost, miles per gallon, price per gallon of gas, and the estimated miles you drive in a month. Clever, eh? Maybe a prospective BMW ActiveHybrid 7 purchaser could use one.

What’s your opinion on high-priced hybrids? Are they worth it—and to whom?

—jgoods

Back when Acura was doing it right

It’s not often an automaker throws up its arms and says, “Oops, we kind of screwed up and need to start over.”

While Acura hasn’t exactly gone that far, parent company Honda admits there’s some confusion regarding the brand. Autoweek is reporting that Honda’s CEO Takanobu Ito said about Acura,

We are in the midst of big changes. We’ve changed the direction of research and development.

That simple statement has huge implications. Changing direction on research and development is as close to starting over as automakers get, considering new models spend years in the R&D phase. Dump the products in the R&D pipeline and lose a good two years of new product introductions.

Since that pipeline was going to provide V8, RWD models to go head to head with the likes of BMW, Lexus and Audi, Acura dealers are being left in a bit of a lurch. Especially the ones who have spent millions on new showrooms to feature the now nonexistent new vehicles.

Just 18 months ago, Acura promised its dealers five new models. Now there will be only two, the TSX Sportwagon (which we briefly covered here) and the ZDX crossover. Neither will do much to stop Acura’s four-year sales decline.

On the positive side of all this, I’m thrilled to see an automaker realize it has been playing somewhere it shouldn’t be. It goes back to the problem with automotive advertising, when brands try to be everything to everyone. Acura is realizing that it can let BMW build BMWs and just focus on its core values and the cars it builds best.

The place Acura can really compete and succeed is back where it started: with sensible, fun, entry-level luxury cars. Remember the original Integra? I think that’s the route we’ll see future Acuras take, with a few modern luxurious and efficient twists, I’m sure.

There’s nothing confusing about an Acura that is sensible and practical.

What kinds of cars do you think Acura should be building?

-tgriffith

established two joint ventures with the Shanghai Automotive Industry Corporation in China. One was for manufacturing. The other venture, for design and engineering, is the Pan Asia Technical Automotive Center. The center has done the engineering to adapt various G.M. global models for the Chinese market.

This from The New York Times, recently reporting how the design of a new version of the Buick Riviera is being led by a team in China, as was done with the LaCrosse (above), the car responsible for much of GM’s sales success in that country.

My correspondent in Xi’an, Yue Han, remarked that the popularity of Buick has remained very steady over the years and is increasing in this decade. In Xi’an (home of the terracotta warriors and the giant wild goose pagoda), the LaCrosse is considered a highly desirable upscale car, as evidenced by the numbers seen on local roads. The car has become a status symbol because of its comfort, styling, and electronic amenities. Says Yue, “It is really an upper-middle-class car. But the Big People still drive Mercedes and BMWs.” That’s no different from what Buick’s market has almost always been in the U.S.

Shanghai Automotive Industry Corporation (SAIC) partnered not only with GM but also with Volkswagen in a joint venture in 1984. They created Shanghai Volkswagen, one of China’s largest car factories, producing 500,000 vehicles a year. The plant makes everything from Polos (right) and Santanas (below) to Škodas (the Czech marque owned by VW since 1991). Amidst a plunging third-quarter profit, VW was pleased to announce that it was still in the black, thanks basically to its China sales.

VW Chairman Martin Winterkorn noted that while the business climate is still “tough,” China remained the company’s largest market, accounting for one in five vehicles sold. Similarly, Buick sells far more cars in China than in the U.S. Said the Times,

For the first nine months of 2009, for instance, Buick sold 312,798 vehicles in China; in the United States, it sold 72,389.

What are the implications of China’s coming dominance in automobiles? What are its implications for GM’s future? Leave us your thoughts in a comment, please.

—jgoods

Bad drivers know no budgets

Inspired by Honda’s newest advertising campaign, I have a theory I’d like your help proving:

Everybody knows somebody who is a bad driver.

The person I know is my grandpa. More on that, and the laughable irony behind it, later.

First, I have to wonder why people never admit to being the bad drivers. Folks are sure quick to point out if they live with one. Or are related to one. Or shared the road with one on the drive to work this morning.

Whether they admit it or not, bad drivers abound. Now there’s news that a scientific reason might be able to explain their existence. Researchers at the University of California, Irvine, say they might have discovered a gene that contributes to people driving like morons (not their exact term).

This might seem like an opportunity to crack a joke, and say that we’ve always known what gene creates bad drivers: the same gene that creates females. But I’ll never stoop to the level of that joke. Especially since, in my own family, my wife has never run her car into a stationary pole. Like I have.

So perhaps you should cut the bad driver in your life some slack. He may have a genetic disability that makes it harder for him to remember basic driving rules, such as applying the brakes when the light turns yellow. Or not colliding with poles.

Instead of yelling at these people and calling them names we’d never want our children to repeat, maybe we should open special driving schools for them and give them special (extra wide) driving lanes with 20 mile-per-hour speed limits.

We could even require genetic testing before driver’s licenses are issued. When people test positive, they could get a special placard to hang on their rear-view mirrors. This would give them access to the special lanes and make them feel important, while the rest of us benefit from having the driving outcasts separated from their driving superiors.

My grandpa would definitely get a placard. I would rank him as the worst/scariest driver I’ve ever ridden with. He doesn’t think he’s doing anything wrong when his tires scrape the curb at 40 miles an hour.

And that laughable irony I mentioned? He drives for a living. A school bus. And he has a commendable safety record.

Maybe, and thankfully, the gene turns off when the safety of kids is at stake.

Tell us about the worst driver you know. If it’s you, please speak up! And feel free to keep things anonymous.

-tgriffith

The event was cooked up to attract auto journalists, and Jalopnik responded first, with an entry of a Jaguar XF R, later to be withdrawn owing to brake concerns. Driver Wes Siler entered a Mitsubishi EVO instead, and came in eighth. The Truth About Cars entered a CTS-V driven by Jack Baruth, which came in fifth.

Now, from one mid-70s guy to another, let me say congratulations to the man who was not only a good loser but a good driver. We all know how badly older people can drive, but here’s a guy who’s not only kept his skills, but shown the world how to get ink for a great product. Everybody from The New York Times to Facebook has been in on this story.

Cadillac recently fired its ad agency—the one that produced spots featuring a sexy lady driving a red CTS and asking, “When you turn your car on, does it return the favor?” Lutz says stunts like his challenge are lots cheaper and more effective in attracting buyers. What do you think?

—jgoods

It's coming... are you ready?

We bought a car this summer that has beautiful 18″ chrome rims, and the first thing I thought when I saw the snowflakes this morning was how quickly I could get those babies stored as far away from road salts as possible. I have a firm “no pitting” rule at my house!

I’ll definitely be making some preparations as winter descends. I advise you to do the same:

Whip out your snow wheels now and wrap ‘em with the best snow tires you can afford. Naturally, there are many choices in snow tires: studded (if your state law allows), studless, and my favorite, Norwegian. I tend to prefer a brand like Nokian, since those Norwegians tend to know a thing or two about winter driving.

Speaking of tires, keep an eye on your tire pressure, too. It tends to drop as temperatures dip below freezing.

It’s also a good time to invest in some heavy duty all-weather rubber floor mats (unless you own a Toyota). Heck, even if you do have a Toyota, keeping your carpets clean and dry might be worth the risk of uncontrollable acceleration. Probably not, but your call, of course.

Then there’s the rest of the typical winter stuff:

• Get your battery checked. This will help you avoid having to asking a stranger for jumper cables in a dark and scary mall parking garage.
• Add wiper fluid.
• Get your antifreeze checked.
• Make sure yours isn’t one of those cars driving around with one headlight out.

I know, I sound like your dad, but I care about you, so I’m going to keep going.

It’s also important to pick up some winter wiper blades. A full tank of fluid isn’t going to help if your wipers just smear it all into the mud already caked on your windshield. Once that happens you’ll be driving with your head out the window, and let me tell you, snow coming at your face at 40 mph really stings the eyes.

You should also take the time to wax your car one last time before spring. Putting down a protective layer will help spare your paint from the horrors of road-sanding trucks.

As winter sets in and temperatures plummet, even starting your car’s engine can be a challenge. Park in a garage if you can, or try an engine block heater if you live somewhere really cold. And don’t forget to switch to a lighter weight oil (consult your owner’s manual) or even a synthetic, since it tends to stay liquid in colder temps.

Finally, I’m going to mention something I would think everyone knows, but apparently they don’t. All-wheel drive or four-wheel drive will help you get going in snow and ice. It will not help you stop.

Tell that to the moron in the Jeep who gets stuck in a ditch on the highway. I promise you’ll see him this winter.

Do you have any special winter preparation or driving tips to share?

-tgriffith

Other details from Auto Express:

The engine line-up will mirror that of the Panamera, so a 4.8-litre V8, with or without a turbocharger, producing 500bhp or 400bhp, will be available. The naturally aspirated variant is set to come with four or rear-wheel drive, while the range-topping turbo model will be 4WD only.

At this stage, much of what we hear is speculative, but the car does seem likely to be built, and the renderings look good. The 928 would basically fit into the Volkswagen-Porsche development plan tgriffith outlined recently. For a rear view, click on “Pictures” here.

1995 Porsche 928 GTS

For those of you too young to remember, the original 928 broke the rear-engine mold for Porsche and became (after the horrible 924) its first front-engine, water-cooled grand touring car. Built from 1977-1995, the car had lots of interesting tech features, including a rear-mounted transaxle, and I desperately wanted but could not afford one.

I still can’t afford one, but Porsche could be making a very smart move in bringing back the iconic 928. Until you get into the rarefied Ferrari-Aston Martin territory, the grand touring market is wide open.

Porsche’s development plans seem to make sense, at least so far. Do you foresee any roadblocks ahead as VW absorbs the company?

—jgoods

Can you guess what this is?

One of the greatest parts about having kids is getting to raid their candy at Halloween. That way, I get the treats without the work of going door to door.

If you don’t have kids, or are just too ethical to steal candy from them, no worries. Cars Coming Soon has some treats for you, too. You can’t eat them, but they’re sure to raise your excitement level and give you something to look forward to in the coming months and years.

So let’s get to it!

Euro-spec Honda Accord Tourer

First, Honda isn’t known for products that create a ton of excitement. But when any company announces that a much-loved European model will surface in the States, folks tend to go a little berserk. Even if said model is a Honda station wagon. (Proof that Americans go gaga over anything we perceive as being Euro-cool.)

Expect the Honda Accord Tourer to show up in America as an Acura TSX sport wagon. Don’t confuse this with the much ballyhooed Honda Accord Crosstour that is also on the way. The TSX sport wagon, according to the good folks at Autoblog,

will be based on the TSX sedan, which is itself basically a Euro Accord. It is unclear which powertrains we’ll get, or if styling will be tweaked from its European counterpart, but it is expected to arrive next fall. Color us excited.

Ford Kuga

In other Euro news, production of the Ford Kuga SUV will move to America by 2011. Car and Driver suspects that move could lead to the Kuga replacing the aging Ford Escape. Let’s hope that’s true, because the Kuga is sleek and refined, while the Escape is bulky and well…ugly. Feel free to make your own “Kuga on the prowl” joke while gazing at the loveliness of European SUV design.

Reports have been floating around that Volkswagen is working on a U.S.-built sedan that would replace the Passat in 2011. The new midsize sedan, dubbed the NMS (shown on top!) should start at around $20K, making it much more affordable than the $27K Passat. Sketches are emerging, and it appears that Volkswagen is taking a page out of Chevy’s book. Anyone else see the Camaro resemblance here? Regardless, it looks like the NMS will be much sexier than the current Passat.

What other European models do you hope make it to the United States?

-tgriffith