Introduction to the new Kia Picanto

Check out the new 3 Door Picanto.

Choosing the right tires for your car

Hope all of you had a wonderful Christmas. I had a great time with family and few friends in London. While chatting with the guys about cars I realised that most of us had only one set of tires (or Tyres for those in the UK) which we only changed when they were worn out.

Like most people, I leave it up to the tire shops to recommend and change the tires. However, there are a range of tires to choose from but it is important to be aware that all cars have different requirements depending on the type of car and what you usually use it for. For example it would not make sense to have performance tyres usually used for racing for your family car which you normally use for every day commuting.

Moreover now that winter is here, it is a good idea to think about winter tires as well. The winters here are not that bad and so far we have had fairly great weather without any snow, we never know. It was fairly bad last year and I had a tough time driving in the snow using my normal tires. I have learnt my lesson and have got myself some winter tires which I ready to change to once it starts snowing.

Anyway, if you are interested in learning more about the different styles of Car Tires, check out Tires information site.

More TrueCar

TrueCar.Com Truly Infuriates Many Dealers

by David Ruggles
WardsAuto.com, Dec 19, 2011 8:58 AM

Scott Painter says he wants to help dealers sell more cars. So why is the founder of TrueCar.com under attack by auto-retail people on social-network blogs and elsewhere?

Painter contends he is the dealer's friend when selling them his Zag/TrueCar lead-generation program. Then he says he is the consumer's friend in their price battles with dealers. Is it possible to take both sides of the same issue at the same time? He also says he wants to transform the industry by "commoditizing" new vehicles, which eliminates the need for salespeople and marginalizes losses. Have we been down this road before?

TrueCar has grown dramatically, making enough inroads to raise $200 million from venture-capital investors with which the firm promptly purchased Automotive Leasing Guide, the industry's highest-profile residual value predictor.

In a nutshell, TrueCar as an online lead provider offers dealers a deal that seems hard to refuse. They only pay for online leads that are closed as sales.

In the fine print is an agreement to give TrueCar access to information in dealership management systems. After all, how will TrueCar know how much to bill at the end of the month for the closed and delivered leads without verification?

But the firm also harvests data, in particular transaction-pricing information that TrueCar shares with car consumers visiting its website. After seeing what other people paid for the same vehicles they are interested in, they can make an offer.

Painter says that pricing data does not come from DMS units. Even if it doesn't, it puts additional pressure on dealers under the guise of providing "a public service." Is there another industry where consumers feel they have the right to know a seller's actual true costs?

Scott Painter under fire from dealers.

Eventually dealership people, led by Jeff Kershner, figured out what was going on.< Now, an industry movement is swelling against TrueCar. There is plenty of information on industry social-network blogs, with more being added by the minute. Hundreds of people have weighed in. Jim Ziegler's blog has had more than 12,000 views.

"There really is only one way to stop this nonsense with vendors," says dealer Tamara Darvish of the Darcars Automotive Group in Maryland. That requires "a gentleman's agreement" among dealers not to exchange DMS data for leads, she says. "Unfortunately, greed and ignorance often take priority with some, rather than logic and long-term planning."

TrueCar's Devin LaCrosse provides the other side of the story. By enabling participating dealers to provide upfront, no-haggle price quotes, TrueCar has helped over 5,500 dealers nationwide sell over 400,000 new and used vehicles, he says. TrueCar lowers dealership selling costs "by providing high-quality customers and no need for haggling, and provides free transaction-based pricing data to help dealers price vehicles scientifically."

Some would say TrueCar is not incrementally increasing vehicle-sales volume, just lowering dealers' gross profits. Some dealers are doing more volume at the expense of others, but there is no evidence more vehicles are sold. Kershner, Ziegler and others think dealers unwittingly are enabling Painter to transform the auto business based on his perception of how it should operate.

Why are dealers going along with what seems like a self-defeating initiative? Many were caught unaware. They need to thoroughly read their contract with TrueCar. Dealers who have just learned what is happening are up in arms. Many are as angry at themselves as they are with Painter and his firm.

Everyone can draw their own conclusions. But some people are taking it very seriously. Ziegler calls it "the Battle of Armageddon for car dealers."

WardsAuto Dealer Business columnist David Ruggles is a former dealership general manager.

Trying to blow up the XJ Sentinel

Targeted at the rich, famous and powerful, the XJ Sentinel from Jaguar provides discreet armoured protection. According to Jaguar, they have put through extensive independent testing and certification to the latest national and international standards by QinetiQ®.

The cars offer ballistic protection up to B7 level (BS EN 1522 level FB7 and BS EN 1063 BR7-), blast protection against 15kg TNT equivalent detonated within close proximity of the vehicle, and substantial under floor grenade protection.

They are also available with several optional features and can be tailored to individual requirements.

BMW M5 to be launched in Canada in 2012

updated: 17th Dec 2011

Another North American BMW news:

Just found out from the BMW Canada website that the new BMW M5 will be launched there in 2012. The car is the latest update - the 5th generation of one of the most popular sport sedans in the World (BMW claims it to be the most "most successful high-performance sedan in the premium segment of the executive class").

The new BMW M5 is powered by a eight–cylinder V8 engine with M TwinPower Turbo technology developing 412 kW/560 hp, which can take the car from 0–62mph in 4.4 seconds,

The engine is mated with a seven-speed M Double Clutch Transmission with Drivelogic, and Active M Differential.

Exterior details including twin dual–tailpipes and subtle M shaped rear spoiler.

Check out the clip of six lucky guys who get the change to test drive the car at the Nordschleife, Nürburgring.



Click the link for more news about BMW Canada

BMW i3 and i8 at LA show

BMW recently showed of their i3 and i8 Concepts at the 2011 LA Auto Show.

Both the i3 and i8 cars are part of BMW's "Project i" and is a separate brand.

First unveiled at 2011 Frankfurt Motor Show, the i3 is expected to go into mass production in 2013 and available for delivery by the end of the year. The car will be BMW's first zero emissions mass produced vehicle.

On the other hand, first announced in 2010 and also unveiled at the 2011 Frankfurt Motor Show, the BMW i8 is a hybrid and sporty looking car. The car will be available in 2014. SO far no news on expected prices as yet.

The War with TrueCar

Open Letter to the Automotive Industry from Scott Painter, Founder & CEO of TrueCar, Inc.

Responses by Ruggles

Monday, December 12, 2011 12:01 am

Painter: Our world is changing. Unprecedented access to information and a massive shift in consumer behavior has resulted in a challenging new automotive retail landscape. It has also enabled a consumer appetite for data transparency. To hide from evolving consumer behavior is to deny change. At TrueCar, we embrace this opportunity. We also believe that transparency is the centerpiece of trusting relationships. Some in the industry disagree. We would like to make our position clear.

Ruggles:Transparency is NOT the objective of auto dealers. Survival is, followed by net profit. It takes gross profit to have some net profit left over at month end. Is there another industry where consumers feel they have the right to know a seller's actual true costs? What gives consumers the right to that information in the first place? Providing transparency is NOT your only aim – making money in the doing is! The behaviour by consumers wanting to know a car dealer's bare costs is NOT something new. In 1970 credit unions would arm their members with "dealer cost." There were books available on every news stand. The delivery of the information is what is different.

If you want total transparency, give consumers actual bare cost down to net net net. Then allow the negotiation to be based on the gross profit, say a thousand or two. Do you really think consumers understand gross profit? Do they understand the expenses that are paid out of gross profit? More importantly, do they care?

Over the course of time car dealers have had their margins trimmed dramatically by their OEMs. When I started in the business the margin on large cars was 22.5% with a 2.5% hold back. "Trunk money" was available only for special promotions, but it was nowhere near as prevalent as today. The profit a dealer makes these days has moved to "trunk money," as the dramatically narrowed margin and increased availability of information to consumers has dictated it. And you are looking to disclose this information as if consumers have some kind of inherent right to it.

The auto business is a business of negotiation. AND consumers can shop. Consumers aren't bound by the same rules that auto dealers are. You seem to be saying that you would like to remove the negotiation aspect of the business while making money for your own company in the doing. It's not like you are performing some needed public service. You think an "efficient" market for new vehicles is good for everyone? How does that jive with the dealer, who has made substantial investment, making a reasonable return? If they don't, who will be around to provide other essential services to the consumer? The factory?

You're a business man and have closed some deals where negotiation has been required to reach agreement. You also know that in negotiation if neither party gets their feathers ruffled at some point, money has been left on the table. I suspect that in your very best negotiations, you negotiated without appearing to negotiate at all. I suspect that is how you have gotten so many dealers to sign on initially. That might even be how you gathered in $200 million in venture capital. I take my cap off to you for being such an artful negotiator. But don't in the same breath talk about transparency. Your objective is to make your deal while adopting the APPEARANCE of transparency as a negotiating tactic. How do you expect to make money in a negotiating business like the auto business with true transparency? You call it transparency to share transaction data, where ever you happen to get it and however the consumer interprets it. Real transparency is when only the margin is negotiated because the consumer knows our costs as well as we do, but of course they lack the knowledge of what has to be paid out of that margin. To repeat - you are selling the illusion and perception of transparency, but in the doing you are feathering your own nest by portraying yourself as the "good guy" to the consumer who readily accepts the dealer as the "bad guy." The amazing thing is that any dealer has cooperated with you.

And what of the sales people you intend to replace? Or do you deny that that is one of your aims? It seems you are on record about that.

Painter: Our goal at TrueCar is to foster healthier relationships between manufacturers, dealers and consumers through data transparency.

Ruggles: Forget about healthier relationships. Profitable business relationships that are also "healthy" are the kinds of relationships to have. The euphemism "data transparency" means disseminating propriety information to consumers, information that is none of their business. They can shop at the touch and click of a mouse. What more are they entitled to?

Painter: To deliver on this promise, we require a high standard from our 5,800 dealer partners – an upfront competitive price and a commitment to a great customer experience.

Ruggles: Where does the great customer experience come from in a race to the bottom on price? Where does the money come from to accomplish that?

Painter: A discoverable upfront price is the cost of getting noticed. Contrary to popular concerns this does not create a “race to the bottom.” The lowest price only secures the sale 19.2% of the time within the TrueCar network. The sale is still won by location, selection and good old-fashioned customer service.

Ruggles: No race to the bottom? Easy for you to say! If only 19.2% buy based on the lowest price, why would you even try to provide consumers with the lowest price? The cynic in me tells me that your motive is not public service, but your own profit. Let's tell it like it is. That being the case, how on earth would you expect dealers to be your allies in the endeavor? Well, that's easy. A host of dealers with their heads up their asses have already signed on providing initial validity to your premise. In case you haven't noticed, there is a burgeoning group looking to enlighten our fellow dealers.

Painter: At TrueCar, we believe that upfront price is at the core of a good buying experience for dealer and consumer. Informed consumers buy more confidently and are more satisfied. At TrueCar, we publish the most accurate reflection of the retail market that has ever been available. The goal is to establish an objective, credible and transparent baseline for fairness – both for the customer and the dealer. That being said, TrueCar does not set this market. Our dealer partners set their own prices 100% of the time.

Ruggles: Its great that you believe that "upfront price" is at the core of a good buying experience. In our mind, a good buying experience is where the dealer makes a substantial but reasonable profit, the consumer is happy, and a long term profitable relationship is formed. The price is negotiated. Trades are taken. Consumers can shop if they feel they aren't getting what they want.

Whose definition of fairness are we using? Yours? The consumers? As previously mentioned, ask a consumer what they think a fair margin is on a new car and the answers will be all over the map. Most aren't business people. It doesn't even occur to most of them that there are substantial costs that have to be paid from gross profit.

Bottom Line: You are trying to create a system based on wildly variable consumer perceptions, while destroying the system that has worked for years, and to make a few million in the doing.

AND after you have taken down sales people and the dealer network, do you then turn you program on manufacturers? Where does it end? Dealers don't need any more downward pressure on gross profit. And those who help you provide additional pressure on their own gross profits just haven't woke up to that fact yet.

Painter: Dealers earn their business every day and we believe that their marketing programs should too. TrueCar is the only fully accountable source of new business where our dealer partners only pay when they sell a car. Gone are the days when dealers have to assume all of the marketing risk and pay for advertising and for leads as a primary way to secure new customers.

Ruggles: I suspect that more and more dealers will be opting to take their "risk" back in return for not being complicit in their own demise.

Painter: TrueCar requires DMS integration for tracking of this accountable model, the core of what makes us unique. We use DMS feeds from our dealer partners for tracking and optimization of introductions made to the dealership. We don’t use our dealer partners’ information to populate the TrueCar pricing curve. That information comes from entirely separate sources of anonymized data that represent nearly 90% of all vehicle transactions in the U.S.

At TrueCar, data integrity, security and privacy are job #1. Our policies, systems and technology have passed the scrutiny of partners like USAA, Consumer Reports, American Express, AAA and many others. TrueCar has never, and will never, sell or repurpose DMS data for any reason.

Ruggles: IF security and privacy are job #1, you have failed miserably. The credibility gap between TrueCar and dealers is growing. Even if it is true that your access to a dealer's DMS doesn't provide actual transaction data, the fact remains that your company is making money by putting additional pricing pressure on dealers under the guise of providing a "public service."

Painter: In spite of all this, we recognize that change is threatening for some. Ours will always be a high-touch industry. The service of our dealer partners and highly-trained sales professionals becomes increasingly important the more consumers know. At TrueCar, our commitment is to relieve those professionals from needing to resort to high-pressure sales tactics or misdirection. These tactics have been an albatross for our industry and they are at the heart of why consumers have become generally mistrustful of the car shopping experience in the first place.

Ruggles: Change? This isn't change. TrueCar simply puts the dissemination of proprietary dealer information on steroids. Do us a favor and let dealers return to their high-pressure and misdirection tactics of days gone by when we delivered 17,000,000 new vehicles a year. The only way most consumers will be satisfied is to be guaranteed to win the negotiation. And they can't even define what it would mean for them to win. You say consumers have become "generally distrustful of the car shopping experience?" Please tell me, is this some kind of new phenomenon that recently arose so TrueCar could come to the rescue?

Painter: Is TrueCar good for all dealers? There will always be those that resist change. To our dealer partners, we applaud your understanding that truth, transparency, and customer service is at the center of success in our changing market. And, to those that still have questions, we invite an open dialogue. One of the great virtues of transparency is that we have nothing to hide.

Ruggles: The change dealers want to resist is further downward pressure on their gross profits, at a time when their manufacturers are pushing them to spend more and more money on their facilities, thereby further increasing their costs. As a 40 year industry veteran retired from the day-to-day of retail, I can speak my mind. I hope others will do the same.

David Ruggles

The Industry's Recovery: The Devil is in the Details

...I'll cheer when the glass is half full...

The media claims the auto industry as a bright spot in our recovery. If this is good news ... well, read on.

First, sales remain well below peak; we will close out the year as a whole with less than 13 million sales, against a peak SAAR [industry jargon: seasonally adjusted annual rate] of 17 million. So we're still down 24%. Nevertheless, the glass is at least half full, because that's 30% better than the sub-10 million unit level of late 2008-early 2009.

That story is grimmer when we examine the value of motor vehicle and parts shipments; they are still  down a full 33%. But again, at $30 billion shipments are still up 30% from their nadir.

 

Quarterly data from the FRED database of the Federal Reserve Bank of St. Louis. Click graphs to enlarge.

Well, then there's employment. That's up, by about 80,000 in retail and 90,000 in manufacturing. Given the abysmal state of our job market that's something for which we should be thankful. But again, it's from a really, really low base. Well into 2007 manufacturing employed over 1.0 million; compared to January 2007, at nadir the industry had lost 400,000 jobs. Retail saw less of a drop in percentage terms, about 15%, but compared to January 2007, in absolute terms employment at the nadir at dealerships shrank by about 246,000 and parts retailers by 58,000. If we combine the two, January 2007 employment was 2.94 million; the nadir was 2.25 million. Today (Nov 2011) we're at 2.40 million.

Generated by Smitka from BLS data. Click graphs to enlarge.

In the auto sector, retail and manufacturing, we've added 150,000 jobs. Not bad. But we were down 680,000. So at +22% we've not even regained a quarter of what we lost. It's not that things could be worse; things have been much worse.

I'll cheer when the glass is half full.

Mike Smitka
Professor of Economics, Washington and Lee University
Judge, Automotive News PACE "Supplier of the Year" competition

The Politics of the GM-Chrysler Bankruptcies

By David Ruggles

During the recent Republican debate held in Mitt Romney’s home state of Michigan, the presidential hopeful was asked about the “rescue” of General Motors and Chrysler. The premise of the moderator’s question was that since the automakers are now doing well, did Romney “regret his opposition to the rescue?” Romney answered, “The government finally followed my advice,” referencing his November 2008 op-ed in The New York Times entitled, “Let Detroit Go Bankrupt.” [Click to read the full article.]

Despite the inflammatory headline, Romney’s article was temperate and well-reasoned. Some readers might have assumed that the “bankruptcy” Romney recommended was a Chapter 7 liquidation, but that was not the case. The piece was written in the context of events of the day, in particular the Detroit Three CEOs appearing before Congress to request a “bailout.” The initial request was for $25 billion in loans or loan guarantees. That appeal later grew to $35 billion, while the total investment necessary to do the job, which has largely been repaid or secured with stock, ballooned to $81 billion.

In his op-ed, Romney stated that it would be better if the two companies in question, GM and Chrysler, were allowed to go through a “managed, pre-structured bankruptcy to allow them to restructure themselves.” Without such a restructuring, but with a “bailout,” Romney argued, the companies would continue on their current unsustainable path and would ultimately have to liquidate. “But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost,” Romney said in his piece.

Reached by telephone for this column, Steve Rattner, former chief of the Automotive Task Force, called Romney’s 2008 piece “prescient.” He praises Romney’s op-ed as “95% correct.” According to Rattner, the “Romney plan” was followed almost to the letter. The exception: there was “no debtor-in-possession financing available through private lenders, requiring the U.S. Treasury to fill that role,” he said. (Remember the financial system meltdown of 2008-9 – see the note at the bottom.)

After the “government finally took my advice” comment, though, Romney should have left it there. The Democrats seem to be trying to mischaracterize Romney’s stated position in the New York Times article by applying “liquidation” bankruptcy to Romney’s headline, instead of the reorganization he clearly recommended in the body of the column.

Even more confusing is that Romney himself currently seems to be mischaracterizing his own original position. Bloomberg writes: "In Michigan after Wednesday's Republican candidate debate, Mitt Romney defended his opposition to the government bailout that saved jobs in the tens of thousands at GM and Chrysler. (Again, see the note.) According to Romney, instead of asking the government to intervene, the companies should have entered into private sector bankruptcies immediately.”

Never one to waste an opportunity, former Michigan Gov. Jennifer Granholm, a Democrat, said in an interview with Bloomberg that “Romney's view was ‘a knife in the back’ to his home state."

Rattner, too, is puzzled. “I can’t understand how Romney can go from being so out in front of the auto company reorganizations to disavowing his almost perfect original position. In fact, GM CEO Rick Wagoner stubbornly refused to consider Chapter 11 bankruptcy for GM and had to be removed for the reorganization to go forward.”

By the time Pres. Barack Obama was inaugurated, the Bush administration had already advanced $17.4 billion in “bridge loans” from the Troubled Asset Relief Program to the two ailing automakers. Congress had turned down a “bailout” package despite Vice Pres. Dick Cheney admonishing his fellow Republicans, “Do you want to be known as the party of Hoover forever?”

Perhaps Romney is criticizing the Bush administration for the “bridge loans,” but last anyone checked, George W. Bush is not running for President again.

What is clear is that the rescue of the auto industry will be a hot topic in the upcoming 2012 elections. The President and the Democrats will be taking credit for what so far seems to be a good move, despite flaws in the “rescue’s” execution. The Republicans seem determined to claim that the “rescue” was a “bailout” and shouldn’t have been done.

In Republican frontrunner Romney’s case, he seems to be having a difficult time making up his mind what he thinks. His camp did not respond to a request for clarification of his position in advance of this column.

David Ruggles has spent his career in every phase of the retail side of the auto business, new and used, sales and management, including consulting and training in both the U.S. & Japan. Ruggles has been a dealer for Mercedes-Benz, Chrysler, Dodge, GMC, Ford, Mazda, and Subaru, and has consulted for one of the world’s largest privately owned Toyota dealer groups located in Japan. He blogs at autosandeconomics.blogspot.com and writes regular columns for several publications.

Note: on this blog Ruggles and Smitka repeatedly examined this issue during 2008-9, arguing that, due to the interlinked nature of the supply chain, made visible in the aftershocks to the industry of the "3/11" Tohoku earthquake, the liquidation of GM would have forced suppliers and hence Toyota, Honda and the rest of manufacturing to close. Without inventory, dealers would have followed, while even repairs on existing vehicles would have become difficult because spare parts production would also have shut down. Remember, there was no private financing to handle normal Chapter 11 bankruptcy – the only alternative would have been immediate liquidation.

The Resilient U.S. Economy

If the stock market is the pulse of the American economy, the outlook might be better than expected.

In a conversation I had with noted Wall Street analyst and international trader James Vena, he asked a very interesting question: “Where was the Dow a year ago?” Answer: About 12,000. “And where is the Dow today?” About 12,000.

Vena pointed out that the economy has withstood some serious challenges this year, including:

• A debt crisis that would threaten the European economy and the Euro currency itself.
• A significant cheapening of the U. S. dollar.
• A disruption in oil supply from Libya caused by a series of uprisings in the Middle East and a corresponding spike in fuel prices.
• An earthquake and tsunami in Japan that would disrupt world trade including components for global auto production.
• Flooding in Southeast Asia that further disrupts the global supply chain.
• An attempt by a U.S. political party to hold a lifting of the country’s debt ceiling resulting in a lowering of the credit rating.
• The bankruptcy of a major legacy U.S. airline.
• Continuing U.S. housing foreclosures and a further decline in home values.

The U.S. economy is far from out of the woods. But it has withstood a serious assault in the past year and not slipped into a double-dip recession. Will the upcoming election year bring about new challenges, or will the economy get a break?

Mike Smitka as devil's advocate: but it's housing prices that are weighing down household balance sheets, not the stock market. Until you get into fairly high incomes shareholdings are primarily indirect, through retirement plans -- are Americans really going to cut back on their contributions further in order to buy a new car???? And sitting at 9%-plus unemployment for 2 years is "resilient"?

The Ford-GM Stock Equation

As with the economy, the stock market will continue to evolve. So far this year, though, auto stocks, specifically, have hit some hard times.

Surprising to many is the fact that the stock of General Motors has dropped to about $21 per share from its $35-per-share post-IPO high a year ago. Even more surprising is that Ford’s stock has dropped to about $11 per share from $18 in the same time frame. This decline, despite impressive sales gains and profits, and improved fixed costs, now that both companies' VEBAs have capped legacy costs while their UAW contracts have removed the threat of strikes and wage hikes.

Of course, in the past year there have been headwinds: high oil prices, the Japanese tsunami, and the debt crisis debacle, to name a few. Both companies have taken hits on quality, with GM experiencing bad PR due to some Chevy Volts that burst into flames during crash testing and Ford being slammed in a J.D. Power quality survey.

Despite these obstacles, the two companies have stood firm. GM announced the reopening of the old Saturn plant in Spring Hill, Tenn., to build the Chevy Equinox. Both companies continue to increase volume, marketshare, and profits. They have both been reducing incentives while maintaining sales momentum.

Once GM’s stock price gets to a certain level, expect the Treasury Department to sell quantities of the taxpayer’s GM stock. The outcome: a somewhat depressed price.

So what is your prognostication for the upcoming year? Buy? Sell? Hold?

GM recently began paying a dividend on preferred stock while Ford just announced a 5 cent per quarter dividend, its first since 2006.

David Ruggles has spent his career in every phase of the retail side of the auto business, new and used, sales and management, including consulting and training in both the U.S. & Japan. Ruggles has been a dealer for Mercedes-Benz, Chrysler, Dodge, GMC, Ford, Mazda, and Subaru, and has consulted for one of the world’s largest privately owned Toyota dealer groups located in Japan. He blogs here at blogspot and writes regular columns for several publications.

From whence will they come? -- profits, that is.

In North America the pricing umbrella created by the need of the Detroit Three to fund retiree health care is unwinding, while the Europeans are fleeing the Euro to add capacity here; the Japanese began diversifying out of their yen cost base 15 years ago. In the short run, that may improve profits for the Detroit Three and the Germans at the expense of the Japanese, but will ultimatlely enhance rivalry and lower profits for the industry as a whole. Europe remains in the doldrums, and the excess capacity in China will become more apparent as sales slow to a merely torrid pace. Ditto India. Brazil? South Africa? Sure, there will be markets that grow, but will they grow faster than new capacity is added? I can't think of an exception.

That pressure is obscured by shifts among market segments, particularly in the move away from small cars in the US and China that boosted profits for some firms. It is also obscured by exit, the role of which is inadequately recognized. In Europe VW snapped up SEAT, Skoda and others while Ford and GM consolidated formerly autonomous UK and German operations. In Japan Toyota absorbed Hino, Isuzu, and Daihatsu and now has a large though not yet controlling stake in Fuji Heavy Industries, Subaru's parent. Meanwhile foreign partners have unloaded their stakes in Mazda and Mitsubishi, which face a shrinking domestic market and a yen whose value makes exports unprofitable. No one is likely to value them solely for their engineering capabilities; their demise is only a matter of time. The US looks different partly because of large capacity adjustments by the Detroit Three, but we've also seen the demise of AMC, Suzuki, Isuzu, and Mazda while Mitsubishi's plant continues to run at unsustainably low capacity. If we include the elimination of brands such as Saturn and the cessation of exports by various firms, exit is significant. Inside Korea, Hyundai gobbled up Kia while GM purchased Daewoo and Renault picked up Ssangyong. The survival of brand names makes it hard to know what operations remain. Ditto Australia, where the Ford and GM affiliates were at one time stand-alone companies.

You might say "but China." Few outsiders are aware that there were 120 firms in that market, which was dominated by a host of minuscule operations owned by the governments of provinces and large cities. They had captive markets -- the models made in Shanghai couldn't be found on the streets of Beijing, and vice-versa. Of course some of these firms and subsequent private entrants (Geely, Chery and BYD) continue in business. But the market is dominated by those Chinese firms that poured their efforts into joint ventures; they've created jobs and been able to keep a slice (as a first approximation, half) of the profits, and some of them have quietly gobbled up failing regional firms. That's important because, while the central government in Beijing has been able to eliminate the domestic trade barriers in industry after industry that impeded the creation of a national economy, the legacy of local fiefdoms remains visible in the vehicle market. VW and GM, strongest in Shanghai, have done very well. Who will "own" Sichuan Province, with a population of over 100 million? It won't be a local firm, because their exit continues.

So as I look across the world (OK, on a good day I can only see 40 miles from my mountain ridge home), well, what strikes me is the likelihood that in the aggregate profits will continue to erode. Consumer preference for choice offsets that, allowing an amazing diversity of product to survive in the marketplace. From time to time individual firms will themselves with the right vehicle in the right place, and do quite well. But that will be offset by poor profits elsewhere. In the background, there's the pressure to invest in new technologies. No one can risk not pouring resources into R&D, as regulatory pressure for safer products, lower emissions and higher fuel efficiency keeps raising the technology bar. But with expensive new and less expensive old technologies continuing side-by-side in the marketplace (and typically the dealership), it won't be possible to raise prices sufficiently to generate generate commensurate profits.

With lower industry profits, the losses for those firms that fail to hit a sweet spot will be worse. It will thus be much harder for firms that find themselves on left tail of the distribution of profits to survive. Chances are Saab won't be the last manufacturer to fold in the 21st century's second decade.

Followup: For a story focusing on this issue from that standpoint of one product, see"Toyota Threatened..." by Alan Ohnsman at Bloomberg.

Mike Smitka

Hybrid cars showcased at Warwick Uni open day

Warwick University WMG showcases Hybrid car technology at their open day.

Disney World to Offer World-Class Driving Experience

Recent visitors of the Walt Disney World Resort in Orlando, Florida might have wondered what their Speedway is primarily used for, since it's almost always clear of cars and the stands are just as empty.

While at one time it hosted professional racing competitions, lately it's been the scene of the company's introduction of the “Richard Petty Driving Experience”, an expensive ride for grown-ups which allows them to test-drive NASCAR stock racers. But recently Disney has decided to give visitors the chance to get behind the wheel of a Lamborghini or Ferrari in addition to the stock car options. It's a totally different new offering as compared to the usual draws of the theme park, and car enthusiasts are certainly now more likely to take out auto title loans in order to afford the formerly too-expensive family trip to Florida.

Dubbed “The Exotic Driving Experience” by the Speedway's chief marketing officer Mike Bartelli, the addition is expected to start in January, with pairs of Ferraris and Lamborghinis, an Audi R8 and a Porsche 911. According to the Orlando Sentinel, all available vehicles will come with automatic transmission, and the starting price of $199 for a six-lap experience will be preceded by an instructional class where an instructor will accompany you on the raceway. For half that price, thrill-seekers can pay to sit in the passenger seat while a professional driver whizzes them through the three-turn tri-oval track. Either way, Bartelli and his Disney overlords all both counting on boosted success at the Walt Disney World Speedway.

That's because the Speedway has been a thorn in the company's side ever since it was built back in 1995. Originally meant to be a site for the newly created Indy 200 at Walt Disney World, the track hasn't seen a professional race in over a decade. Since then, it's either sat deserted or used sparingly in various driving experience thrills over the years. But a constant high price, a required half-day devoted to preparation, training, and the thrill itself, and a general lack of target-market visitors has made the Speedway the source of cost over-runs for sometime. In the mid-2000s Disney saw an opportunity in the rising popularity of NASCAR, but in the wake of the global recession, NASCAR numbers have dwindled and Disney is once again looking for a way to turn a profit from the Speedway.

Starting in January, visitors will have the chance to experience what it's like to operate some of the world's most luxurious sports cars. It will certainly entice a wider variety of car enthusiasts than just letting people get behind the wheel of some retired NASCAR stock racers. However, the question is whether there is a market it needs to sustain itself? Those immediately informed may attempt to orchestrate the annual family trip to include Disney World in order to jump on the opportunity, but what about the long-term? Disney is desperate to find a way to make their Speedway useful, and they hope they've finally found what they were looking for.

The new BMW M5

The BMW M5 will be launched on Nov 19‎ and according to news reports, will be priced at at £73,040. Check out the video of the new BMW M5 being put through its paces.

The car is powered by a 560hp 4.4-liter Twin-Turbo V8 rear drive engine. The car is said to have a a top speed of 190mph and goes from 0 to 60 mph in just 4.4 seconds.

Tata invests in the West Midlands

There was some good news for the automotive sector in the UK today as Jaguar Land Rover (JLR) announced that they plan to increase their workforce at their plant in Solihull by more than 25%.
For more info read their press release here.

This follows the opening of their new Global Headquarters at the Company's site in Whitley in Coventry last week.

From left: Mr Ravi Kant, Vice President of Tata Motors, Mr Ratan Tata (cutting the tape) Chairman of Tata Sons, and Dr. Ralf Speth, CEO of Jaguar Land Rover (Right).

Tata the Indian owners of Jaguar Land Rover will be investing more than £1.5 billion pounds annually for the next five years.

Jeremy Clarkson vs Karun Chandhok

Clip from Jeremy's new DVD.

The new BMW 3 series and buying used BMW cars

Last month BMW officially announced that the new BMW 3 Series Saloon would be launched here in the UK on 11 February 2012. There would be be four trim specifications, namely Sport, Modern, Luxury and ES/ SE.

Prices start from £24,880 (OTR) for the 316d ES Diesel model.

In case you were not aware, the BMW 3 series remains their best selling model. Even if you can't afford to buy a new model, there are so many affordable used cars out there in the market. Though you can sometimes get a fantastic bragain from private sellers, there are several risks involved. It is always better to buy from trusted dealers as they offer several advantages over private sellers including warranty, minimum MOT, finance options and also to avoid the risk of being sold a stolen car. In fact there is a large co-operative of Trusted Dealers BMW (used).

The trusted dealers site has a huge range of second-hand BMWs for sale which you can search by post code and your budget. So if you are thinking of buying a second hand BMW 3 series model from a trusted dealer, check out Trusteddealers.co.uk

Discovery 4 in the Malaysian Jungle

The unmodified Land Rover Discovery 4 takes on the Malaysian jungle and survives. With help of course.

Mantis Waterless Car Cleaners

A couple of weeks back I received some samples of a new car cleaning products from the guys at JML.

The unique feature about these car cleaning products is that it's water free - yes, that's right. This was ideal for me as I do not have a driveway and I am not really keen on washing the car on the pavement carrying bucket loads of water and soap.

They sent me the Mantis Instant Shine, the Mantis Scratch Remover and the twin pack microfibre towels - one for application and another for buffing.



The Mantis Instant Shine combines a wash, polish and wax and has a fabulous fruity fragrance. It retails at £9.99 from is available on the Mantis site, in ASDA and few other places as well.

I had a slight problem when I roughly pulled the paper cover and some parts of the spray mechanism came off (see pic). However, I was able to  put it back and works all fine.



I followed the instructions and sprayed the liquid over the bonnet of my car (which had been unwashed for a few weeks) and left it on for a few minutes. I then wiped it clean with the supplied application towels and polished the cleaned surface using the buffing towel.

Check out my car bonnet - the left side (top in picture) has not been cleaned while the right (bottom in picture) has been cleaned and buffed. Though not very clear from the photograph, there was a clear visible difference.



I also tried out the Mantis Scratch Remover on some of the scratches on my car. Key scratches on door locks and shoe scuffs can seriously dent your car’s resale value. As directed, I applied the paste to the affected area and rubbed it in a circular motion until my arms ached.



However, it did not do much for the deeper scratches on my car bonnet. I found that it works best with the light scratches  (as shown below). The light scratches are barely visible afterwards.





The scratch remover also retails at £9.99 on  the Mantis site and is also available in a few other stores including ASDA.

This water free cleaning kit is ideal for guys like me who hate hauling buckets of water and soap to clean their cars on the pavements (sidewalk in the US).

Over 500,000 units of Mantis Instant Shine has been sold in the UK and I am not surprised.

Production model of the Invader TC-3 to be unveiled soon

The production model of the Invader TC-3 will be unveiled at this years 2011 SEMA Show. The Invader is a reverse trike with two steering front wheels and one rear drive wheel and comfortably seats two - an exciting fusion of bike and super car.

As compared to the prototype, the improved version has a longer and wider wheelbase for a better ride and handling, and we increased its width and height to make it more comfortable and easier to get in and out of.

The Invader features an enclosed cockpit complete with a roof and a tempered safety glass windshield. Its frame is constructed from one-and-a-half-inch tubular steel with a front crash zone, triangulated side protection bars and a complete roll-cage around the cockpit.

Inside there are two side-by-side fully adjustable race style bucket seats that will comfortably accommodate six foot plus occupants.

The Invader is powered by a 1,300 cc Hayabusa engine capable of delivering 197 horsepower to the 18-inch wide rear tire.According to their press release the can go from 0 to 60 mph in just under four seconds with a top speed of 150 mph. Stopping power is provided by front and rear discs equipped with four and six piston calipers respectively.

Last year's Invader prototype is pictured below:

Sebastian Vettel's journey to the top

Red Bull has created an exclusive webpage dedicated to grand prix champion Sebastian Vettel. Check out the video clip charting his journey to the top of the podium.

Car Magnets - an effective advertising medium

A great way to advertise your business or organisation is to use the vehicles. They represent a really great medium for advertising and promotion as they are visible, mobile and cost effective.

You have several options: First of all, there is the more permanent method of painting on the vehicles or you can also have the really popular method - using customized vinyl decals which can partially or fully wrap the vehicle. Another method which is fast gaining in popularity is the use of magnetic signs. These offer several advantages over the previous two methods namely, in terms of flexibility and relatively inexpensive as well. They can be removed easily and transferred to other positions or vehicles.

Sometimes if you are using your car for both commercial and private purposes, you may not want the sign on all the time. In this case, magnetic signs are the obvious choice. On the other hand, these signs have certain limitations in the sense that it may not be possible to have full coverage or have them go round the curves or the vehicle.

Anyway, I was going through the CarMagnets.com - a company which specialises in car magnets.

According to the company, their signs use high quality material, with non-fading ink which is UV and scratch resistant. However, I guess there is a small mistake on the home page at the top as it says that you can choose from 3 sizes when in fact, they offer five standard sizes of magnetic car signs.

They take away the difficult job of designing your own signs by offering over 100 templates to choose from. To make it easier, the templates are also grouped under different categories ranging from "Just Married" to "Autism Awareness" - all you have to do is add your own slogan or company name. On other other hand, if you are the artistic type or know someone good with graphics - you also have the option of uploading you own graphics and then use their online editing tool to add additional text.

I feel that a little bit more information about the advantages of magnetic car signs and also some more information about the company would help. It also appears that their pricing page is still under construction - not a great way to instil confidence in prospective customers. They could also do with a more professional looking logo. Apart from that, I think the site is really innovative and their online editing tool is really user friendly as well. It took me less than 5 minutes to choose a template and create my own sign.

Check out the site in case you are thinking of getting a magnetic sign for your car.

Quality used cars from Hertz

Most of us know of Hertz as a reputed car rental company. However, not many are aware that Hertz also sells exceptional used cars as well.

If you are looking for a great deal on a car in the US, check out the Hertz Rent2Buy® programme for high-quality, used rental cars at really competitive prices. Their website allows you to have a unique shopping experience, by being able to compare a variety of models. Check out Hertzcarsales.com to take advantage of this new way to "car-shop." Hertz has a large selection of used cars for sale by owner, so your ideal car is never out of reach.

Also don't forget to take advantage of a 3-Day Test Rental, which gives you time to see how the car really feels on the road. You can try out the car for 3 days at a special low rate which will be waived if you decide to buy the car.

Call 1-888-674-3309 for additional information and questions!

Hyundai Genesis best upscale sedan

According to new test results from Consumer Reports, out of a test group of 10 upscale sedans including the the Chrysler 300C, Hyundai Genesis, Toyota Avalon, and Acura TL, the Hyundai Genesis came out at top of the CR’s ratings with an Excellent road test score of 92. The car has been on top of the list of upscale sedans since 2009. The 2012 model has a softer, more comfortable ride; a stronger direct injected V6; and a more fuel-efficient eight-speed automatic transmission improving the overall mileage.

A surprise was the Revamped 2011 Chrysler 300C which scored an “Excellent” overall road test score of 80, up from 64 for the previous model. According to David Champion, senior director of Consumer Reports’ Auto Test Center in East Haddam, CT “The 300C’s quick, muscular 5.7-liter V8 engine is now complemented by responsive handling and a more comfortable ride.” He further added: “And, thanks to a major upgrade, its roomy interior is now quieter, more luxurious, and has improved visibility.”

A disappointment was the Hyundai Sonata Hybrid, a fuel-efficient family sedan, which scored only 69, a full 20 points below the previously-tested and more popular conventional Sonata GLS.

On the other hand, the all-electric Nissan Leaf scored a respectable 78 points. The Leaf is quick, very quiet, rides comfortably and is easy to get in and out of. However, the limited driving range of only about 75 miles per charge, and the long time it takes to recharge (about 6 hours on 240V) are the main drawbacks.

The full report is available to subscribers of www.ConsumerReports.org and in the November issue of Consumer Reports.

GE Joins Hands with Nissan

GE and Nissan has announced a joint, two-year R&D collaboration to speed up the creation of a reliable charging infrastructure for electric vehicles like the Nissan LEAF.



They plan to focus their resources on two key research areas:

1. integrating electric vehicles with homes and buildings and
2. investigating EV charging dynamics and the future impact on the electricity grid once millions of EVs are on the road.

I found it really interesting to learn that 25 percent of the world’s electricity is generated or distributed by equipment designed and made by GE,;

For more information read the complete GE Report.

Modified Mini at Antartica

Came across this interesting article in the Mini blog about a modified Mini - the Mini Trac at Wilkes Antarctic Base in 1965 .

Appearance Improvements for Your Vehicle

Every driver has a vested interest in keeping his or her vehicle in the best-looking shape possible. Whether it’s for keeping up appearances or prepping the vehicle for resale to a potential buyer or a used car dealer, the way a car looks matters. If you are unsatisfied with the current condition of your car’s exterior, consider pursuing several of the following upgrade ideas, many of which may help enhance the aesthetics of your vehicle. After all, if you’re going to be caught driving something on the road, you want it to be something that makes a positive impression at first glance.

Lighting
Poor lighting may be dangerous when driving, but it can also be disastrous to a car’s appearance. Cars with dim headlights and broken tail lights don’t inspire much confidence for potential buyers, and they can make a car appear prematurely older than it actually is. From yellowing headlight casings to malfunctioning tail light bulbs, you’ll want to replace any car lighting components that can cause a dent to your vehicle’s reputation. For easy headlight upgrades, try HID headlights, which can be customized by color and which also shine much brighter than a typical halogen headlight array. For tail light modifications, go with bold and modern LEDs.

Grille
The front grille on a car may be a rather small component in comparison to much larger pieces on the car’s exterior, but the grille is the focus of many people’s attention as they pass by your car. That’s because the grille sits front and center on your car, making it a pristine visual centerpiece when properly cared for. If your car’s front grille has been damaged in an accident, or simply just hasn’t aged well, you can replace it with plastic, billet or stainless steel grilles.

Windows
Windows that are scratched up, cracked, or just really dirty (dirty to the point where taking the car through a car wash isn’t enough to clean them) aren’t going to help you sell your car, and certainly won’t make a positive impression as you continue to drive it. For easily impressive windows, try using a window tint kit. Dark windows increase the privacy of your car’s inside space while also making your car look more upscale on the outside, so there are benefits abound from this single upgrade. Just don’t forget to apply each tint evenly before going forward. Also do not forget to check the legal requirements in your area.

Where are the French?

...they must have all the love they need at home...

Mike Smitka

First it was the Japanese. Then a couple Germans and the Koreans. Now the rest of the Germans. The Italians have one foot in the water. But except for a fleeting presence through American Motors, both with Simca as a subsidiary and later with Renault as an owner, the French -- who dominated the global industry in its formative years in the 19th century -- are nowhere to be found. Why?

Now it may be that Renault's control of Nissan represents de facto entry. Certainly purchasing is handled on a global basis, and there's cooperation in engineering. It may be that some Nissan products currently on sale in fact use a Renault platform (Perhaps one of my readers can fill in the gap.) But the absence is puzzling.

That's even more true of PSA (Peugeot-Citroen). The last time I looked (I'm probably showing my years!) they were doing well in Europe and solidly profitable. They keep up with technology, as seen in the customer base of the winners of the PACE Supplier of the Year innovation award for which I'm a judge. They're simply not here.

So what is their strategy? Do they believe that sufficient technology resides in the supplier base that they do not need sheer size to fund the R&D for tomorrow's products? Are they making enough money in small cars that they've chosen to "stick to their knitting" -- not venture into segments with which they have no experience -- and are therefore passing up the US market with its cheap gas and penchange for fuel guzzlers?

I don't know, but I've started to think about the variance in such "macro" strategy across the top vehicle assemblers. Suzuki strikes me as the closest analog, but they have a strong base in India, though it's probably no longer accurate to say that they dominate the market through their joint venture Maruti. Then there's Daihatsu, but they were gobbled up by Toyota and so, for better or for worse, are shackled to the small vehicle niche. Daihatsu long ago exited the US market; Suzuki seems likely to. So maybe PSA made a sensible strategic decision, and refused to join the herd in entering (and now exiting) the US.

My curiosity is piqued, but I have no answers.

The VW up! family

The up! is the new city car from Volkswagen and had it's World premiere at the 64th International Motor Show (IAA) in Frankfurt. VW also showed off 6 concept cars in the up! family of cars. This includes the buggy up! and up! azzurra: specially designed for the world’s beaches as well as the cross up!, GT up!, eco up! and e-up!

The up! will be launched in the UK in Spring next year 2012. However, they are opening up for orders from October 2011.

For more information about the up! concept cars, click here.

Fisker unveils the Surf

Fisker Automotive recently unveiled the "Surf" at the Frankfurt Motor Show. The car is styled by former Aston Martin and BMW chief designer Henrik Fisker.

The car is a finished production model rather than a concept car and it's also Fisker's second model to go on sale. The company's first car, the Karma, which was launched earlier this year has generated more than 4,000 orders.

Fisker Automotive has been producing electric vehicles with extended range since 2007. BMW has signed an agreement with the company whereby the German car company will supply Fisker with engines and other components for future Fisker models.

Fisker was formed in 2007 and has raised 1.5 billion dollars worth of investment, with 1500 people employed worldwide.

Finding dependable car shippers in the US

Choosing a reputable and reliable company the United States can be a formidable task as there are literally thousands of companies out there, each claiming to deliver the best service at an affordable price.

You do not have to worry. Just check out Cartransportquotes.com which links you to the most trusted and Dependable Car Movers in .

Qualified professionals who are licensed and properly insured will give you fast and reliable quotes/ rates with reported savings exceeding 20%.

The site offers the best Car Shipping and auto transport quotes for free. All you have to do is fill up their quick form and generate up to eight car shipping estimates. You can then use this information to compare national car shipping rates from automotive shipping carriers at one time. This way, you can select the best quote.

I would suggest anyone who has never shipped a car to first check out the Car Shipping Glossary so that you are familiar with the industry jargon and go through the Frequently Asked Questions as well. Teh site also has a Auto Mover Blog with loads of interesting information.

Video of the new Jaguar Land Rover Defenders concepts

Here is a video of the new Jaguar Land Rover DC100 and DC100 Sport concepts. Also inculdes interviews with the designers of the Defender and Jaguar C-X16 concept cars.

Bad behaviour while driving is learnt from parents

According to a research by AXA car insurance, it was found that found that many young drivers will emulate the way their parents drive.

The study has found that young drivers who demonstrate bad behaviour while driving, such as hand gestures and swearing, and more dangerous cases including speeding and drink driving, have may actually have learnt these from their parents.

• 28% of those with parents who drink drive do so themselves.
• Young drivers with parents who drive aggressively are 50% more likely to swear, flash or beep aggressively at other drivers.
• Drivers whose parents have points on their licence or a ban are three times as likely to face the same penalties themselves.

Can an Automaker Incentive Battle Goose the Economy?

David Ruggles

As the economy wallows in the doldrums, is there any cause for optimism? The outcome of the European debt crisis is still unknown, and we know how markets despise uncertainty. There are still plenty of uncertainties associated with the so called “Arab Spring” uprisings in the Middle East, and those could be with us for a while. While fuel prices have somewhat moderated, they remain high. The country’s credit rating took an unnecessary hit, although plenty of money seems to still be seeking to buy our debt. When the Dow fell dramatically after the downgrade of our credit rating, much of the money that left equities found its way into our “downgraded” Treasury bonds. Either the European debt crisis or our government being hamstrung by ideologues has sent the Dow on a downer after the debt ceiling crisis “semi resolution.” The 12-member “Super Congress” still has an important job to do, and there is additional uncertainty attached to that, that will take weeks to resolve.

The economic recovery that seemed so promising 10 months ago has stalled. Real estate prices continue to drop in many markets with many foreclosed properties not even listed to lessen the perception of burgeoning inventories of distressed merchandise. In Las Vegas a realtor friend mentioned that 50% of her deals these days are cash, as many properties don’t qualify for a certificate of occupancy and can’t meet standards for a mortgage. Only 20% of real estate market sales are “conventional sales,” she says. To put this in perspective, previous Federal Reserve Chairman Alan Greenspan says we shouldn’t expect any kind of robust recovery until home values rise at least 10%. His comment was made in an interview before values retreated another 5%.

Unemployment has plateaued at about 9%, with under-employment and fear of unemployment stifling consumers’ will and ability to buy. The President’s new jobs plan has been met with a collective yawn by Congressional Republicans. It is yet to be determined if can even pass, let alone actually make an impact if passed. The first stimulus package of the Administration managed to stem job loss of 780,000 per month, but did not achieve its stated goal of keeping unemployment below 8%. Despite stemming the job loss, the word “failure” is bandied about in political circles. As it turns out, the initial calculations of how much stimulus might be needed were based on preliminary numbers, which showed the economy contracted 3.8% in the last quarter of 2008. Once all the numbers were in, the real numbers showed a 6.2% retraction in that quarter. It turns out that to do the job promised, Paul Krugman, Nobel Prize-winning economist and New York Times columnist was correct, the stimulus needed to have been twice as large. Regardless, we are where we are, the original stimulus has exhausted its funds, the economy is stagnant, domestic auto stocks have tanked, and recovery has been stopped in its tracks.

This economic downturn isn’t like our previous ones. This one was caused by a financial crisis, with a near-collapse of the financial system averted at the last minute by government intervention. In my own business career, I recall the auto business being a major player in dragging the country out of economic stagnation. In late 1971, Pres. Richard Nixon repealed the excise tax on automobiles, touching off a spurt of business that pulled the economy out of stagnation and carried us forward to the first 10 million unit sales year in 1973. That momentum was halted in late 1973 by the OPEC oil embargo, fuel price spikes, and the associated economic downturn. Chrysler and Joe Garagiola helped pull us out of that one in 1975 with the “Buy a Car, Get a Check” promo. We then went through the Iranian hostage crisis in 1979, another spike in fuel prices, inflation, and the recession associated with the Carter/Reagan era and the first Chrysler bailout. Chrysler’s resurgence helped lead the economy out of the depths. In the past 10 years, GM led the industry and the economy out of the doldrums caused by the Sept. 11 attack with “Keep America Rolling” and 0% interest. That was followed by the “Employee Purchase Plan.”

This time around, we experienced the recession, the near insolvency of the banking system, a real estate crisis of epic proportions, and one that stubbornly hangs on, the temporary disappearance of financing of all kinds, bankruptcies of two of the three domestic automakers, and unthinkable job loss. After the restructuring of the auto industry, and a less than perfect “Cash for Clunkers” program, and a brief period of revival, any forward momentum has stalled.

Currently, new vehicle inventories are low. This isn’t a particularly abnormal situation for this time of year, as it is typical for dealers to clear out previous year’s stock to make room for the new model year’s models. But Japanese manufacturers, in particular, have lost ground against their competition because of the supply interruption caused by the tragic Japanese earthquake and tsunami. And they want their marketshare back. According to Kelly Blue Book, Japanese brands were approaching 40% of the U.S. market. Bus since April, that share has fallen to about 30%. Most SAAR projections are running behind pace, including my own. People are talking about an incentive battle from now through the end of the year. As Japanese brands gear up, domestics are expected to respond. And the domestics now have a much lower breakeven point than before their restructuring.

Incentive wars usually drive down used-vehicle values. But we have been experiencing an acute pre-owned inventory shortage. Dealers would welcome some relief.

Rental fleet replenishment is still in long-cycle mode. Wouldn’t it be nice to rent a vehicle again with less than 25,000 miles on it, riding on smooth tires? Can a case be made for a production orgy and short cycling of rental vehicles for a period of time as we had in the 1990s? For all the negativity attached to “push-marketing,” could this be an ideal time for it? The idea of manufacturing plants running at full capacity, paying overtime and adding shifts, and the trickle down through the supplier base and the financing community sounds pretty good right now. And the market could use a supply of low mile pre-owned units. Customers of Hertz, Avis, Dollar/Thrifty, etc., would be happy. And perhaps the auto industry could help touch off recovery like it has in the past.

David Ruggles has spent his career in every phase of the retail side of the auto business, new and used, sales and management, including consulting and training in both the U.S. & Japan. Ruggles has been a dealer for Mercedes-Benz, Chrysler, Dodge, GMC, Ford, Mazda, and Subaru, and has consulted for one of the world’s largest privately owned Toyota dealer groups located in Japan. He blogs at autosandeconomics.blogspot.com and writes regular columns for several publications.

Jaguar Reveals the C-X16

Today Jaguar revealed the production concept of their new sports car - the new C-X16 at the Frankfurt Motor Show. The car's unveiling also coincides with the 50th anniversary of the iconic E-Type.

The C-X16 concept aims to set benchmarks in design, vehicle dynamics and technology for future Jaguar sports cars. The car represents a step forward from the 2010 Jaguar C-X75 supercar concept and works towards enhancing the driving experience as well as the car’s environmental credentials. It is also built and designed to a beautifully high spec, with the cabin trimmed in dramatic red leather.

The car is powered by an innovative supercharged 3.0-litre V6 producing 380PS (280kW) and 332lb ft (450Nm) of torque with an impressive 126PS specific power per litre. Mated to the engine is a eight-speed ZF gearbox with Quickshift changes. The high-performance hybrid system boosts output by 70kW and 235Nm with a top speed of 186mph, 0-62mph in 4.4 seconds and 50-75mph acceleration in 2.1 seconds. The electric-only top speed of 50mph.

The two-seater model is environmentally conscious with CO2 emissions of 165g/km. It also features a steering wheel-mounted ‘Push to Pass’ button controls the hybrid boost function. Intelligent Start/Stop for improved fuel economy.

New Land Rover Defender Concept

After more than 60 years of production, theLand Rover Defender is finally getting a makeover. Land Rover today unveiled the new Land Rover DC100 and DC100 Sport concept cars at the Frankfurt Motor Show. This indicates a new future direction for the Land Rover Defender which is one of Land Rover’s oldest and most iconic models and has been used by UN aid workers, Red Cross medic’s, police and military forces worldwide.

The new concepts have been designed by the Land Rover Advanced Design team whose remit was to create a vehicle that would resonate with the commercial customer as well as the retail customer. Their aim was to create a model that is relevant to the 21st century.

Both the Land Rover DC100 and DC100 Sport concepts are buit on a Lightweight, mixed-alloy platform using sutting-edge, sustainable, hi-tech materials taken from aerospace industries.

They are loaded with high tech features including

• The Terrain-i scanning device which warns the driver of obstacles when off-roading and can suggest alternative routes.
• Wade Aid which uses sonar technology to assess water depth and advise the driver of optimum speed
• Intelligent, next-generation, Land Rover Terrain Response system automatically optimises the car for any environment.
• Driver-activated spiked tyre system can be deployed at the touch of a button.

Both cars are permanent four-wheel drive with an eight-speed transmission, Intelligent Stop/Start and a transfer case. They are powered by 2.0-litre, four-cylinder petrol and diesel engines with hybrid and plug-in capabilities.

The new Defender models are planned for production in 2015.

Zara Phillips is the first owner of the Range Rover Evoque

Land Rover ambassador Zara Phillips recently became the first owner of a 5-door Orkney Grey Evoque. The car has a 2.2 litre Diesel engine, 6-speed automatic transmission, panoramic sunroof and features including park assist, blind spot monitoring and a surround camera system.

Zara said: "I've grown up around Land Rovers and have been an ambassador for the brand for several years – I am really looking forward to getting behind the wheel of my new Evoque. It looks absolutely fantastic and I am delighted to be the first person in the UK to take delivery of one."

Land Rover has received over 20,000 pre-orders for the Range Rover Evoque worldwide with 6,000 of these in the UK.

Zara is one of the UK's leading equestrian figures and has been a Land Rover brand ambassador since 2006.

The new BMW 1 Series Sports Hatch

The new BMW 1 Series Sports Hatch will be launched on 17 September. The car is the only rear-wheeldrive car in its class. Available in a variety of different trim levels with different specifications, namely, ES, SE, Sport and Urban models.

Prices will range from £19,375 OTR for the ES model to £24,720 OTR for the diesel engine Sport and Urban models.

The BMW i3 and BMW i8 Concepts.

BMW just unveiled two concepts - the fully electric BMW i3 was formerly known as the MegaCity Vehicle, and the BMW i8, a plug-in hybrid vehicle. One of the major problems with electric vehicles are the huge and heavy batteries. Well both cars use the innovative architecture and CFRP (Carbon Fibre Reinforced Plastic) to cancel out all of the extra weight added by the batteries.

Both cars will be manufactured at the BMW plant in Leipzig.

New Audi S models

Audi has posted photographs of its new S models - the Audi S6, S7, Sportback and S8 on their Facebook page. The models will be shown at the 2011 Frankfurt Auto Show and launched the following year.

 Audi S6

 Audi S6 Avant

 Audi S6 Avant (front)

Audi S7 Sportback

Audi S7

Audi S8

Audi S8

The new 4.0 litre TFSI engine

According to Audi, these models combine high power outputs with low fuel consumption. Sounds too good to be true.