Carz Gate

A blog dedicated to autos reviewing and latest happenings in automotive.

Toyota announces prices of the Prius V and Prius P...

Posted September 19th, 2011 at 01:09 pm by
Filed under: Car News
Toyota announced pricing of the new Prius V and Prius Plug-in on Friday. The new compact V wagon will carry an MSRP of $27,160, while the plug-in hybrid stickers at $32,760. ...
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Acura announces 2012 TSX pricing, special edition

Posted September 19th, 2011 at 01:09 pm by
Filed under: Car News
The 2012 Acura TSX sedan and sports wagon gets a $200 price bump across the line, which puts the base model with a five-speed automatic at $30,695. Acura also ...
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Archive for April, 2011

Hyundai delays Sonata Hybrid deliveries for change in sound device

Delivery to dealerships of most of Hyundai’s initial Sonata Hybrids has been delayed until at least late March because the brand is altering the car’s device that emits an artificial engine noise at low speeds.

Hyundai planned to have the car available in January but only a small number of the vehicles are in dealer stock, Hyundai spokesman Jim Trainor said. Trainor declined to say how many Sonata Hybrids have arrived in the United States but said about 700 units are in port or at sea.

Dealers can expect cars to trickle into dealerships before becoming more widely available in late March or early April, Trainor said.

The delay comes after Hyundai decided late last year to change the car’s “virtual engine sound system.”

The system mimics the sound of an idling gasoline engine to alert nearby pedestrians of the car’s presence when driving at low speeds. Concerns about the safety of pedestrians being unable to hear hybrids, which are nearly silent when moving at low speeds, prompted U.S. lawmakers to pass a law in January requiring automakers to install sound-emitting devices.

Under the law signed by President Obama on Jan. 4, all hybrids will be required to have such devices in a few years.

The National Highway Traffic Safety Administration is writing the rule to enforce the new law.

Hyundai had planned to have a button on the Sonata Hybrid’s instrument panel to turn the virtual engine sound system on and off, Trainor said. But late last year, after hearing that NHTSA was considering banning such switches, Hyundai decided not to install the button.

“We were hearing that at some point NHTSA would not allow [the noise device] to be turned off,” Trainor said. “We said, ‘why put this thing out there now and have to redo it in a few months?’”

Chevrolet Colorado show truck is set for debut at the Bangkok auto show

Chevrolet on Monday said a concept that previews the next-generation Chevrolet Colorado small pickup will debut at the Bangkok motor show on March 25. Chevy released a teaser photo that shows the front corner of the show truck.

Chevy says it chose Bangkok for the debut because the popularity of small pickups in the market; 43 percent of vehicles sold in Bangkok last year were pickups. The redesigned Colorado will go on sale in Bangkok later this year.

Chevrolet did not say that the redesigned Colorado would be sold in the U.S. market, or where it would be built.

Nissan pits new cargo van against aging workhorses from Ford, GM

To break into the commercial van business in the United States, Nissan North America Inc. plans to do something it rarely does: attack Detroit head-on.

That is because there is no way around it.

When it comes to workhorse vans–those large, boxy cargo vehicles favored by house painters, electricians and florists–there are really only two players: Ford Motor Co. and General Motors Co.

Ford and GM together controlled 96 percent of the U.S. full-sized commercial van segment in 2010 with the Ford E series and the GMC Savana and Chevrolet Express. Daimler AG holds the remaining fragment with the Sprinter van, which has variously shown up as a Dodge, a Freightliner and now a Mercedes product.

That bothers Nissan Motor Co. CEO Carlos Ghosn. Nissan’s commercial vehicle business delivers 20 percent of its global volume, and Ghosn wants a comparable contribution from Nissan’s North American commercial vehicle sales.

But in North America, half a century after Nissan arrived, its commercial vehicle share is zero. And to get in the game, Nissan’s new full-sized NV van must pull market share from North America’s biggest and most entrenched players.

As it launches the NV this month at about one-fourth of its 1,100 U.S. retailers, Nissan says it is up for the challenge. The source of its confidence? Nissan’s van is a new design, while Ford’s and GM’s vehicles are using older van platforms.

“I will admit that I was skeptical when I heard Nissan was getting into the segment,” says Harry Criswell, a third-generation Chevrolet dealer from Gaithersburg, Md., and a Nissan dealer for the past three years. “But they’ve done this right. They went out and heard every complaint the owners of vans had, and then they fixed them all.”

Criswell, whose multifranchise Criswell Automotive sells about 470 Chevrolet Express vans a year, says he believes the NV will take away a little of that business–”But more than likely, it will take business away from the Sprinter,” he speculates. “They’re both tall vans.

“The Express is a good van, and people like it,” Criswell adds. “But they haven’t done all the creature-comfort things that Nissan has done. They just haven’t faced the competition.”

Nissan planners scrutinized the segment to learn what their Detroit competitors are doing right and wrong. Now the Japanese automaker plans to market the van as a comfortable alternative for drivers and small-business operators with design elements such as adjustable seats that make spending hours in a truck more bearable.

“There is no more dissatisfied customer than the people who drive this segment,” says Larry Dominique, Nissan North America’s vice president of product planning. “Our research shows us that they absolutely hate their vans. They hate them. So we believe there’s an obvious opportunity for a new van.”

Damoni Hurt takes exception to that idea.

“We’ve been in this segment for 50 years,” says Hurt, Ford’s marketing manager for the E series and the smaller Transit Connect van. “We’ve sold more than 8 million vans over the years. And we’re confident of our market position. There is a lot of brand loyalty in this business.”

He acknowledges that “although the bones of our van haven’t changed much over the years, we do continue to update the product.” The Ford van received a new front grille in 2008 and interior changes in 2009.

Nissan faces another obstacle. Work-van buyers tend to be price sensitive–especially large fleet buyers, where Nissan hopes to get 40 percent of its volume. And skimping on comfort features can save money.

One automaker source who asked not to be named said he had been negotiating recently with a large parcel delivery company to buy a fleet of new commercial vans. The fleet operator allowed its drivers to choose between two feature options: automatic window controls or air conditioning.

The NV will start at $25,570. Chevrolet’s base-model Express starts at $25,840, the GMC Savana at $25,635, and the Ford E series at $27,035. The least expensive Sprinter sports a $36,990 sticker price. All prices include shipping.

But Nissan also knows it must market the NV differently from other vehicles to gain a toehold.

Nissan marketing managers have been touring the country to call on potential buyers. In February, the tour showed up in company parking lots in warm-weather cities such as Los Angeles and Phoenix. In May, the tour will go to potential customers’ office buildings and warehouses in New York, Chicago, Boston and other markets.

Cristi Brown, Nissan North America’s senior manager for fleet and commercial vehicle marketing, says she and her staff are calling on small businesses and large fleet owners. Potential buyers are allowed to climb through the van and sit in its seats.

Nissan is touting these features:

– A tall-roofed version of the NV allows someone well over 6 feet tall to walk around upright in the back of the van.

– The NV’s cargo doors easily swing open around to the sides of the van.

– A convenient step-up enables a driver to walk up easily into the cargo area.

– The body comes with pre-drilled holes so that customizers can more easily install racks and shelving. Because no holes will be drilled into the van’s body, there is less chance for rust on the exterior, says Mike Hobson, Nissan’s director of light commercial and fleet vehicles.

Nissan plans to break with traditional auto-marketing practices to focus the van’s advertising most heavily on radio spots. Hobson says that is where commercial van owners are reachable: “sitting in their current vans with the radio on.”

The competition: The Ford Econoline, Chevrolet Express and GMC Savana.

New sales strategy

Nissan also is asking its dealers to sell the NV differently. To reach commercial van buyers, retailers will have to cold-call potential customers and not wait until they walk into the showroom, Hobson says.

Most dealers who agreed to sell the vans have spent money on their service shops, adding heavy-duty lifts and dedicating service bays to commercial owners needing quick repairs.

As NVs reach dealer showrooms this month, Nissan will be taking on not just Detroit, but the U.S. economy–amid evidence of a market shift away from large vans in general.

In 2007, U.S. commercial van sales totaled 325,744 units. In 2009, the total was just 168,189. Last year, it rose to 218,170–still far below the 2007 level.

Steve Latin-Kasper, director of market data and research for the National Truck Equipment Association, says the van segment’s first challenge is rising fuel prices.

“That segment began to shrink back when gas first moved toward $4 a gallon,” Latin-Kasper says. “The customer base for vans is a lot of people who are working out of their garage or their basement.

“They are very cost-sensitive. And for some of them, a van as such is really optional. Faced with higher fuel prices, they might very well opt for a smaller vehicle.”

Hobson says Nissan is aware of the lower sales but believes that many traditional van buyers have temporarily moved to other vehicles.

“We believe a lot of customers in this segment have migrated out of vans and are now driving pickups,” he says. “But we think they should come back. And they will come back if offered something new and fresh.”

Latin-Kasper believes that the rise of alternative vehicles is itself a challenge for a newcomer such as Nissan, giving commercial drivers smaller, more fuel-efficient choices. The Mercedes Sprinter comes with a four-cylinder engine option in Europe and South America and has a 3.0-liter diesel option in the United States. Ford is turning heads with its imported compact, front-wheel-drive Transit Connect van.

Maybe a compact van

Nissan also is contemplating a compact van to sell next to the NV. It sells such a model, the NV200, in Europe, and Dominique says Nissan could introduce the smaller van in the United States, redesigned for U.S. commercial customers. It is planning a second compact commercial van, an electric vehicle based on its new Leaf electric sedan.

Meanwhile, Nissan forecasts a rise in U.S. commercial van sales to 285,000 units in 2013, an increase of almost 67,000 sales from 2010.

“There are a lot more commercial customers out there who want vans,” Hobson says. “They want that enclosed space to store their tools or their products. They can’t get that from a pickup. So we think they will come back–as soon as someone gives them a good reason.”

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Rennsport Reunion IV brings Porsches to Mazda Raceway Laguna Seca

Porsche has confirmed that its Rennsport Reunion IV, sponsored by Porsche Cars North America, will feature three days of the German marque’s historic race-cars at Mazda Raceway Laguna Seca in Monterey, Calif. This is the first time the Rennsport reunion will be held on the west coast, with Rennsport Reunion IV scheduled for Oct. 14-16, 2011.

“The Rennsport name has become a staple fixture for international collectors and racers over the past 10 years by providing a one-of-a-kind gathering to Porsche fans,” said Detlev von Platen, president and CEO of Porsche Cars North America. “Being that this is the first time a Rennsport will be staged on the west coast, enthusiasts [there] will now have an opportunity to participate and immerse themselves in this rare Porsche experience.”

The celebration will feature on-track races, and an open paddock for visitors to interact with the car owners, drivers and machines.

“For sports-car racing enthusiasts and Porsche fans in particular, Porsche Rennsport Reunion IV will provide a sensory experience unlike any other event,” said Gill Campbell, CEO/general manager of Mazda Raceway Laguna Seca. “With the event being held just every three years and previously only on the east coast, you can be assured that Porsche Cars North America is going all out to bring a phenomenal show in October to the Monterey Peninsula.”

As well as the vintage celebration, the Pirelli Drivers Cup will be part of the weekend and will feature 996 and 997 GT3 Cup race cars from 2000 through 2011 competing on-track.

For those lucky enough to be invited, there is also the Porsche Race Car Classic Concours d’Elegance at the Quail Lodge in Carmel Valley on Sunday, Oct. 16. About 200 Porsche race cars from 1950-1965 will be on display; all funds raised at the Concours will be used to support lung cancer research.

Rennsport Reunion IV tickets are on sale now, with from $25-$60. Visit www.mazdaraceway.com or call (800) 327-7322.

Lexus gets new focus

Battered by recalls and public inquisitions, Toyota is hoping to restore its once-pristine image with new hybrid products and a renewed focus on Lexus.

Lexus increasingly will be positioned as a “global premium brand,” the company said on Wednesday, and see improved styling, more hybrids and better service. The brand’s sales have fallen 9 percent this year, to 26,674 in the United States.

Execs say they hope the CT 200h, a premium hybrid priced at $29,995 that launches this month, will help prop up sales and attract new customers. The RX SUV remains Lexus’s top-selling vehicle, with sales of 6,567 this year, a 13 percent increase.

Enthusiasts have been eagerly awaiting the $375,000 LFA supercar, which packs 552 hp and will be sold in ultralow volumes–just 500 around the world. Five were delivered in February, and nine have been delivered in the United States this year. A driver-development program is being held at Infineon Raceway in Sonoma, Calif., this week to educate buyers on harnessing the capabilities of the performance car.

Meanwhile, Toyota’s bread-and-butter Camry sedan will see development increasingly focused in North America for that market and exports. Toyota also expects to add 10 more hybrids, including an expanded Prius family revealed in January at the Detroit auto show, by 2015.

Saleen Performance to end S302 Ford Mustang production, prepares to expand

If ordering a Saleen S302 Ford Mustang is on your wish list, the time to do it is now.

Revstone Industries, owner of Saleen Performance Vehicles, said on Wednesday that it will stop taking orders for the car in May and will finish building Saleen Mustangs in suburban Detroit by the fall.

But the Lexington, Ky.-based company is not getting out of the performance parts and merchandise businesses and isn’t abandoning the vehicle-upfitting field, spokesman Pete Borum said.

In fact, Revstone wants to grow those businesses. But the company says that the Saleen name has become so connected with the Ford Mustang that it needs a fresh start in the market.

Also, the Saleen name has passed through a series of owners since race-car driver Steve Saleen launched his performance-Mustang business in 1983. Ironically, Saleen does not own the rights to use his name on cars. His current business uses the name SMS Supercars.

Revstone acquired the Saleen name in February 2009.

“We want to clean the slate and get back to engineering performance cars,” Borum said. “We have a wide variety of customer relationships that we look to explore.”

Revstone, which also owns several auto-parts-manufacturing companies, will keep the rights to the Saleen name. It will manufacture and sell replacement Saleen parts, Borum said. It will also honor the warranties on Saleen cars.

But the company looks to use other brand names for its parts and vehicles going forward. Borum said the company is not ready to disclose those names yet. It plans to release more details about its strategy this summer.

“The teams responsible for engineering and development of Saleen bring a level of engineering prowess and passion that is second to none,” Bob LaCourciere, president of Revstone Aftermarket, said in a statement. “We want to apply that same talent and dedication to second-stage manufacturing.”

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Toyota’s Akio Toyoda flies solo at media event, in change of style

It was as much a change for Akio Toyoda as it was for Toyota Motor Corp.

In unveiling the company’s new mid-term business plan this week, the media-shy president flew solo at a news conference without the usual safety net of being flanked by his top brass.

The move was a departure for Toyoda, who — in his two years as president — has tended to divert technical or detailed questions to a panel of executives sharing stage with him.

The kind of buffer was especially apparent when Toyoda appeared before Congress last year to testify about the company’s recall problems. Toyota’s North America chief Yoshimi Inaba sat beside him and was quick to intercept sticky questions for his boss.

Toyoda, who was largely shielded from media access as he climbed the ranks at the company founded by his grandfather, often appears uncomfortable, if not pained, to perform before the media. But facing hundreds of reporters at Wednesday’s press conference, that all changed.

After presenting the plan, called Toyota Global Vision, Toyoda sat — looking almost lonely — at a tiny table to single-handedly field questions without turning to lieutenants. Glaring spotlights and the immensity of the conference hall only underscored its nature as a one-man show.

Toyoda’s new blueprint aims to double operating profit by 2015, achieve sustainable profit margins of 5 percent, expand sales in emerging markets and redouble the company’s focus on green cars. He also slashed the number of board members for more nimble decision making.

Call it kaizen–Toyota’s term for constant improvement–both for the carmaker and its CEO.

Last year, in the thick of the recall crisis, Toyoda acknowledged that he needed to show more leadership in stepping forward as the company’s public face.

He stressed that fact again in this week’s management shuffle by putting public affairs directly under his command, instead of under an executive vice president proxy as done today.

“In the past year or so, I have the keen awareness that I am the person 100 percent responsible for whatever Toyota does,” the president said. “So through one voice, coming from myself, I would like to take full accountability.”

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More executive upheaval as GM changes CFO

Chris Liddell, the onetime executive hotshot hired from Microsoft and rumored to be a candidate for CEO, is leaving General Motors on April 1.

The 52-year-old will be replaced by Dan Ammann, 38, who is GM’s treasurer.

Liddell oversaw GM’s historic return to the stock market last year after its 2009 bankruptcy. He was lured from Microsoft as part of a team of new executives expected to inject the Detroit automaker with fresh blood and new ideas, but his abrupt departure now continues a string of upheaval in the executive suite.

Liddell joined GM in January 2010.

“Chris was a major contributor during a pivotal time in the company’s history,” Dan Akerson, GM chairman and CEO, said in a statement. “He guided the company’s IPO process and established a good financial foundation for the future.”

Liddell said in a statement: “I came to General Motors to be part of something great. My objective was to help rebuild this iconic company, and I am particularly pleased that through this process, we have also developed a strong successor in Dan Ammann.”

Ammann’s replacement at treasurer was not announced. He’s been with GM for one year.

IndyCar: Versus to televise Indy Lights Series

The Firestone Indy Lights Series will return to live television this season, with eight events broadcast on the Versus network. The feeder category to the Izod IndyCar Series had just one live broadcast last year.

Also part of this year’s TV package is a tape-delayed event in Trois-Riviéres, Quebec.

The live broadcasts will be from Barber Motorsports Park, Streets of Long Beach, Indianapolis Motor Speedway, Iowa Speedway, Streets of Toronto, Edmonton City Centre Airport, Streets of Baltimore and Kentucky Speedway.

“It is very important as we look to develop our future stars that we are able to provide opportunities to increase their exposure and build names,” IndyCar CEO Randy Bernard said in a statement. “The live broadcasts on Versus provide coverage [of the races] on the fastest-growing sports cable network in the country [and help] further integrate Firestone Indy Lights into the momentum surrounding the Izod IndyCar Series.”

Versus officials said they will name the announcers for the Indy Lights broadcasts at a later date.

NASCAR: Sprint Cup and Nationwide teams take to the track in Las Vegas

On-track activities began Thursday afternoon for NASCAR’s annual spring double-header weekend at Las Vegas Motor Speedway. Nationwide Series teams had the 1.5-mile track to themselves for two practice sessions.

The Friday schedule features two more Nationwide practices between noon and 2:50 p.m. Eastern. There’s a 90-minute Sprint Cup practice session at 3 p.m. and full-field Cup qualifying at 6:40 p.m. Just as last weekend in Phoenix, only 44 cars are expected for the 43 grid positions.

Nationwide teams will qualify at noon Eastern on Saturday, followed at 1 p.m. by the final Cup practice. The Sam’s Town Nationwide Series 300 is scheduled for 3:15 p.m., the same time as Sunday afternoon’s Kobalt Tools Sprint Cup 400.

Carl Edwards (177.819 mph) and Kyle Busch (177.299 mph) were fastest in Thursday’s first Nationwide practice. The other top-10 runners were Ricky Stenhouse Jr., Denny Hamlin, Trevor Bayne, Mark Martin, Brian Scott, points leader Reed Sorenson, Aric Almirola and Elliott Sadler.

Busch easily led the second session at 178.094 mph. Stenhouse was second at 177.177 mph, followed by Martin, Edwards, Hamlin, Bayne, Sorenson, Scott, Kevin Harvick and Justin Allgaier. Twenty-nine of the 42 teams ran the first session and 34 ran the second. Only 40 cars showed up and raced last weekend in Phoenix, the first Nationwide short field since the second race of the 2008 season, in February at Fontana.

  
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