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Info and pictures courtesy of www.vwvortex.com

5 mm shorter than the MkV and 20 mm wider, the front overhang has been shortened and the rear lengthened. It will be available in the same bodystyles as the MkV. The engine, door seals and outside mirrors have been designed to make this car quieter and more refined. The addition of a drivers side knee airbags and optional rear side airbags brings a new level of safety to the Golf while curtain airbags become standard. The interior makes a huge step forward from the MkV and features design features form the Eos, chrome accented trim and a steering wheel lifted from the Passat CC. Also featured are an updated Climatonic system and integration for MP3 player and iPod. Interior space and cargo capacity remain similar to the MkV. U.S. makret engines are not known but the DSG gearbox will be prevalent thoughout the European lineup so perhaps it will be offered on the Rabbit. Currently DSG can be specced o the high end Jetta’s but cannot be selected from the Rabbit. One interesting bit of technology which may make it here is the rear park assist. The camera is intergrated into the rear VW logo which will continue to serve as a trunk release. When engaged, the logo flips up and image feed from the camera is sent to the navigation screen. Although other technology such as park assist, auto matic distance control for the cruise control and an adapative suspension are to made available in Europe, the pricing position of the Rabbit here means it is unlikely this technology will even be offered as a option.

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Honda’s 2nd generation Insight will be a 5 door hybrid to compete with Toyota’s Prius except it can also be plugged into electrical outlets. The concept will be shown at next month’s Paris motor show and is expected to be similar to that pictured here.

Specifically targeted at first time hybrid buyers, the Insight is not to have a price premium over other traditional models in the same category. “This is key for us and to achieve this hybrids have to be made more affordable - the key barrier to hybrid sales is price and we want to break that barrier.” according to UK environmental manager John Kingston. The vehicle will use the latest IMA powerplant from Honda.

Production is expected to start in 2009 and be 200,000 units annually. Insights will be produced in North America, Europe and Japan though production capacity per market is not known but sales expectation for the U.S. are 100,000 annually. Due to the talk of pricing the Insight at an affordable price, the Civic hybrid will be more expensive though I wonder whether the Civic hybrid will be necessary. The Insight will seat 5 and have cargo flexibility of a hatchback while costing less than a Civic hybrid. The Insight first arrived on U.S. shores in 1999 with the Prius following a year later.

Toyota still is the leading manufacturer of hybrid technology, successfully selling hybrid units across their product range and in many markets. It is virtually a brand unto itself like AMG to Mercedes except focusing on economy where AMG has done the opposite.  

Honda has thus far faced major hurdles in marketing hybrid cars. Lacking JV’s with other manufacturers like Toyota its reach it limited in the EU and the Accord hybrid was axed quickly as buyers opted for the V6 powered car which was cheaper and had similar fuel economy figures to the hybrid. The original Insight was a niche model and the Civic hybrid trails the Prius in sales and recognition. Honda has also not introduced hybrid technology to the Acura brand where Lexus has been successful. Lexus charges enormous premiums for hybrid versions of their cars even though the technology offers little in the way of reducing fuel consumption. Wealthy buyers eager to look green have nevertheless bought many hybrid versions of the RX, GS and LS; particularly in Europe where hybrid Lexus’ strongly outsell petrol powered versions.

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Posted on Autoweek.com, through interview and focus groups researchers determined that women want high quality interiors with lots of flexible storage space , environmentally friendly technology and safety technology. Women in Boston, Chicago, Germany and the Czech Republic were polled. While the original data is not available I think it is unlikely the conclusions drawn by the researchers can be considered conclusive.

Through my sales experience I would agree that women indeed place vehicle safety high on their priority list, when they have children. However how a car looks and the vehicles image are even more critical as they wont even consider buying a car they think is ugly. Furthermore, no matter how much content and space the vehicle offers it must be reasonably priced. Men too place priority on similar things. A single father of four young kids was looking at the Jetta. Trunk space and accessability, ease of fitting car seats and safety technology were high on his list. Certainly men do appreciate well crafted automobiles as Audi does not cater to women buyers exclusively.

Barring the obvious lack of information on sample size, elimination of possible biases, age range of women polled and socioeconomic status, the study fails to account for differences between markets. Vehicles designed and sold in Europe tend to be sold slightly decontented here because of: lower US sales volume, lower expectations, lower market technology standards and currency effects. Furthermore well supported studies have shown there are differences in vehicle preferences between nations with regards to many things. Besides the obvious such as which side the steering wheel is on, vehicle smell, styling, symbols on the switchgear, air conditioning systems, center console design, suspension setttings and color of the interior and exterior.

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Due to strong sales though H1 of this year, Volkswagen Group has displaced Ford as the world’s 3rd largest automanufacturer. “We are delighted that the Volkswagen Group has made it to the global automobile industry’s top three for the first time. This shows that we are on the right track with our ever-stronger international presence and, above all, our product program. We will systematically push ahead with our growth course even in the present difficult market environment,” Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, commented (www.vwvortex.com)

Vehicle delivers rose 7.2% from the same period a year ago to 3.31 million vehicles. Ford H1 sales stand at 3.22 million. GM still ranks at #1 globally with Toyota a close #2.

VW sales have likely improved due to continuing sales improvement in key markets and a refreshed model lineup. South America, China and Russia are strong performing markets for VW with the US and German markets holding up well despite the rough economic climate. VW has also recently launched new Skoda models which have been well recieved such as the new Fabia and SEAT has launched a new version of its bread winning Ibiza. VW’s Tiguan has also done well commercially with the new Golf and Passat CC likely to give a strogn boost to European sales.

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When Nanjing Auto Co. purchased the rights to MG, a quick return to production in the UK and restoration of sales to the US was promised. As usual though, the Chinese wildly optimistic predictions were unattainable. I forget how it all played out but two companies bought what essentially one copany should own. One company got the rights to MG and the car designs. Another got the tooling for the cars and Longbridge, the UK production site which solely made MG’s. I think thats how it went. Anyway Longbridge has restarted finally but on a limited scale and producing the MG TF a coupe that sold strongly when MG collasped but now is outdated.

Because of the large US market (where MG was formerly sold), NAC wanted to launch the car in the states to maximize potential sales. However the Sales and Marketing Director Gary Hagen, according to just-auto.com stated that Longbridge production is slated for the UK and EU. The US does not appear to fit into the copany’s short term pans for expansion of sales. The company is also looking into filling out the MG range with new and former MG models. Exporting vehicles from China to the US will likely not occur due to the pervasive low quality of vehicles assembled there. The cost of fuel for shipping cars was cited as another obstacle however the UK plant will likely be highly exposed to the pound  currency so US sales are unlikely to be profitable in the near term anyway.

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Toyota Scion: Attempt at Persuasion or Perversion?

If you are 45, married, have 2 kids, and make decent cash, odds are you are one

of the millions of Toyota owners in the US. Upwards of 300K of your ilk bought

the Camry last year, Toyota’s mainstream product and ad hoc flagship of the brand. But 45 is just the average age. There are plenty of senior citizens out there driving a

Toyota and this has cost the brand younger buys over time.

The solution? Echo. The result? Failure. Toyota’s new strategy: Scion. This

example of marketing genius is to become a 3rd brand for Toyota,

sold through its existing network of dealers as a separate entity. Aimed at 25-30

year olds who lead an active lifestyle and aren’t ready for a family car, Scion

will boost Toyota’s sales and image. At least that’s what the execs say. The

truth is America’s youth want fun, practical, versatile cars that have style. So

while GM’s Aztek experiment met the first three requisites quite admirably, it

fell of Niagara Falls and hit its head in terms of style. And unlike those

famous water works, nobody photographed it and slapped it on a postcard. Thus it

seems that Toyota can win over the population just beginning their careers.

Toyota’s are as practical as they come; versatility is evident with styles that

won’t cause buyers to go legally blind. Proof are the ccx and bbx concepts shown

under the Scion label. Cool and using existing components, the cars will be

cheap to build and fast to market.

            Yet as Lexus notes well, perfection is a relentless pursuit, never caught.

Scion seems like a winning proposition but has inherent problems. Most obvious

is the concept itself. Fundamentally good on paper but hell to execute, Scion

may cannibalize Toyota sales and many dealers are reluctant to carry the brand.

Stand-alone franchises would never work, being too costly and taking too long to

build. Furthermore, the product seeks to create a new image, which will take

decades to change. Its been over 18 years since the wagons reign ended, yet

Americans still feel adversely toward these staid cars. Then consider that

Toyota is an entire brand! It will take around five generations of Scion with

consistent momentum to achieve the dream of its founders. Lexus may have been a

hit in the early 90’s, but the market was far less competitive then and luxury

buyers are less discerning than today’s youth. Scion may not be doomed to

failure, but the odds against success make me wonder, why not just make the

Corolla and Celica look attractive?

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No time for a post, so this is an aritcle i wrote for my select group of readers. it has not been edited so i apologize for spelling, grammer, or offensive language. not that anybody reads my posts anyway….

Burnt Out

            What goes up, must come down, and with a few short weeks things seem to be coming down fast and hard for Hyundai Motor, Hyundai Motor America, and Hyundai Motorsport. One of the fastest growing automakers in the industry, Hyundai has led sales charges across the globe with its latest generations of vehicles winning high praise, raising standards for cars and recording years of ever rising sales figures. With little to keep Hyundai Motor from charging their way into becoming market share heavy weights, hope shone brighter than ever for the Korean automaker. That has all but vanished by September’s end.

Finbar O’Neil left Hyundai USA leaving the CEO position open in an abrupt move to Mitsubishi Motors NA where he will be their CEO. Robert Cosmai has been named interim CEO as of Sept 3rd. He previously worked as VP of National Sales for HMA. Since O’Neil became CEO of HMA in 1998, sales increased 400%. In a Spet 18^th press release, Hyundai announced the presence of a contractual disagreement with Motor Sports Development, maker of the Accent WRC3 car. The manufacturer would finish the current season and return in 2006, yes, that’s two thousand SIX. Hyundai would lose all their manufacturer points and incrue a monetary penalty if they pulled out before the season finish. On Sept 24^th Hyundai Motor America’s second exec left the company. Michael Tocci, general manager of Hyundai’s eastern region left to become senior vice president, sales, distribution and fleet, MMNA sales division. Five days later the company recalled its smart airbags in 2004 models because “sensors in the passenger seats of 2004 Elantras would turn off the passenger airbag improperly when an adult was present if the adult sat with his or her weight off the centre of the seat.” The recall affect only Elantra’s which were just 75 in number and all delivered to Enterprise Rentals. The next day Brian Miller, vice president of marketing resigned on personal reasons to become head of marketing for all Continental AG operations. All three execs left vague reasons for their sudden departures but it would be uncovered in October the source of Hyundai’s troubles.

Insiders claim the trouble lies directly with the parent company in Seoul. “top American executives are becoming increasingly frustrated with the dictatorial meddling from the South Korean parent company” which is likely the reason for the quick departures of three of HMA’s top execs. Normally when an executive of high stature, such as CEO leaves, a successor is announced in their place prior to leaving an justification is given prior to quitting not after. Furthermore CEO resignations usually become rumor before they are justified, sometimes because they are forced out of their jobs.. Finbar left no successor, made no departing statements, and was not expected to leave his post when he was succeeding. While this may seem circumstantial evidence, proof lies in the hard ball dealing occurring in the WRC. Hyundai did not compete in the San Remo Rallye beginning Oct 4^th because HMC withheld payments to MSD, “Hyundai Motor Company has failed to pay Motor Sport Developments the contracted payments necessary for it to participate in the remaining 2003 World Rally Championship.” MSD claims they had not caused any justification for payment revocation. It is now totally up in the air if Hyundai, which this year has been soundly beaten by all other manufacturers, will finish the season. After 6 consecutive year end victories in SCCA ProRally, Hyundai left the sport due to rising financial costs and this year Hyundai has the tightest budget of all WRC manufacturers. Hiring only two drivers who stand no chance of podium finishes in any event, driving obsolete cars which did not test before the start of the season due to financial constraints, HMC seems to lack commitment to sports. Their WRC site has offline for weeks, and with a 3 year hiatus planned, Hyundai will likely not get back into the game for real. It finished fourth last year due to more luck than skill and this year has been dismal. Numerous DNF’s (did not finish) due to accidents and rampant reliability issues left the Hyundai team mostly out of tenth place, the lowest scoring position in the sport. More than anything, money talks in WRC where drivers come at a premium, a single service stop can run up a $20k bill, and a whole slew of mechanics and management are needed to run the cars. Hyundai has been lacking new product too, the Tibby coupe is not a new product per se and the Elantra’s restyling is horrible. Hyundai Motor Company sure seems to have burnt out.

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There are and have been very good 4cylinder engines on the market in America. With better engine technology the simplistic increase in engine size to gain power is out of favor and unnecessary. Not only will larger engines consume more fuel, but turbocharging and supercharging engines will more than make up for any poewr loss due to a decrease in engines displacement. Indeed looking at engines across the industry, displacement is not an relaible indicator of engine power. different manufacturers can have a 6 cylinder enigne of similar displacement which are naturally aspirated and have significantly different power ratings.

Engine size/number of cylinders therefore does not dictate an engine’s horsepower or torque output. Yet there are many Americans who assume a larger engine is more powerful and therefore better. I distinctly remmeber when selling VW’s a group of customers looking at the Jetta which at the time came with a 2.5L inline 5 cylinder engine and a 2.0T 4 cylinder engine. When asked which they preferred to see the group of 4 instantly chose the 2.5L model because it had the bigger engine and so would be better to drive. Granted this group did not have a single VW fan in the lot or they would have understood that engines are more sophisticated than larger and smaller displacements. Indeed the 2.5L model is the base car and the 2.0T the premium model.

Cadillac, which has won accolades for its latest CTS and nothing else, is concerned about consumer acceptance of 4 cylinder enignes in its luxury lineup. They should be more concerned about improving their current lineup. Audi and Mercedes have (and Audi still does) sold entry level vehices with 4 cylinder engines. The A3, A4 and C-class were not derided for lack of performance though 6 cylinder options were available.

No one would say the current GTI is not a fun car. The Mini is is fun go kart-eque car. The Evolution certainly is fun though is not as ordinary. I know there were a few complaints about Acura’s last gen TSX having a 4 cylinder engines instead of a V6 but the 4 pot is perfectly fine and Acura has stuck with it in the current gen. Indeed you cannot have a V6 in every car simply because it would not fit in the engine bay (Renault got around this problem with the Clio by making it an MR). Point being that the engine size or number of cylinders does not a fun car make or break. There is so much more to it than that

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Cadillac is set to offer a car below the CTS with RWD around 2010. The question is, a 4 cylinder or 6 cylinder engine? Cadillac General Manager Jim Taylor on Autoweek.com says “There is a big debate as to whether it is four only. I think that is a bridge too far.” “I don’t think Americans are going to become un-American that fast.” “They still want power. We still have big open roads. People do not want to stop enjoying driving.”

 (Pictured is the Cadillac BLS which maybe the vehicle Cadillac is thinking of supplying here. It is currently sold in the EU and is a reskined Saab 9-3)

If I could, I would fire Jim Taylor. I understand that whether to offer a 4 cylinder or 6 might be a big debate in the product development team as GM will want to get the vehicle and product mix correct the first time around. I also understand that Americans think small engines (small being used to refer to any 4 cylinder engine) are weak and apparently make for cars that people don’t enjoy driving. American’s are WRONG!

I posit that torque is more important than horsepower. While most media quote horsepower ratings I like to know when a car’s engine makes its peak torque and how much. Excluding diesels, which are by nature (literally) high torque output engines. Having driven VW’s and Honda’s I can say I prefer engines which produce peak torque at low rpm’s and a lot of other people would too. VW’s 4 cylinder turbo charged engines tend to produce peak torue between 1500 and 3000 rpm while Honda’s engines are known for spinning into easily 7000 with peak horsepower coming in roundabout 5500rpm. This leads to VW’s which move quickly from a standstill and have decent passing power. The Honda’s do well at…track days. The lack of torque from our former 4 cyl Accord nearly got me into accidents several times. I’d floor the gas and the speedometer needle would go up slower than the gas supply needle would go down. I lost a drag race to an 80’s era Volvo so badly its was beyond shameful.

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