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Economic woes put the brakes on powerful cars
TORONTO STAR FILE PHOTO
The diesel-powered Audi R8 seemed like a good idea at the time of the Detroit auto show last year, but not any more.
High-performance cars are dropping like flies and the culprit is not global warming or environmental concerns – it's the economy.
In preparation for the 2010 model year, beleaguered General Motors is slashing most of its performance models, with Chevrolet taking the hardest hit.
The company's so-called "performance" division, Pontiac, won't exist after 2010. But 2009 will also be the last model year for SS versions of the Impala, Cobalt sedan and HHR wagon.
According to a U.S. Chevrolet spokesperson, the Cobalt SS coupe will continue, "a while longer – to be determined."
Also gone for 2010 will be the Cadillac V Series version of the mid-size STS sedan.
At least GM still has the Camaro SS, Caddy CTS-V and Corvette ZR1 to keep enthusiasts happy.
But GM isn't the only automaker blaming the economy for the death of fun-to-drive cars. After teasing us with the idea of a diesel supercar, Audi has killed the production version of the V12 diesel R8.
The R8 was not originally engineered for a V12, and Audi says the costs of re-engineering it don't add up, particularly when the U.S. market, which accounts for one-third of R8 sales, is dragged down by diesel prices that are higher than gas.
That's what friends are for Would you recommend your new car to a friend?
That's the question automotive research firm AutoPacific asked 25,000 American new-car customers who bought or leased vehicles last fall.
And, surprisingly, in an age where fuel economy and frugality are supposed to rank high among purchase considerations, a couple of sporty cars took top spots.
Porsche was number one, with 91 per cent of its new owners saying they would recommend their car to a friend, while the Infiniti G37 received the highest ranking – car or truck – in overall customer satisfaction with 95 per cent.
"Typically, car buyers are very pleased when they first drive their new car off the dealer lot. But just as a vehicle's worth depreciates over time, some car owners' level of confidence depreciates," says George Peterson, president of AutoPacific.
"We have quantified their level of confidence to see which new-car owners will recommend their model."
On the truck side, the highest overall satisfaction score went to the Ford F-150, recommended by 89 per cent of its owners. In a tie, the GMC Yukon XL and Honda CR-V were recommended by 93 per cent in the SUV category.
It really is bad for business One of the reasons both Chrysler and General Motors have avoided the "B-word" for so long is the fear customers wouldn't buy a new car from a bankrupt automaker.
Proof those fears were well-founded happened just one week after Chrysler filed for bankruptcy in the U.S.
Automotive Lease Guide, considered the U.S. industry's guide to vehicle resale values, dropped its projected residual values for Chrysler's 2009 vehicles by 6 per cent.
That means the average Chrysler, Dodge and Jeep vehicle is projected to be worth an average of just 31.2 per cent of its original sticker price after three years – down from 37.2 per cent the week before the bankruptcy filing and 43.1 per cent from this time last year.
Specifically, Chrysler residuals fall to 28.8 per cent, Dodge cars to 35.5 per cent, Dodge trucks to 29.3 per cent and Jeep to 32.4 per cent.
As a comparison, ALG's combined car and truck residual values for Toyota is 45.5 per cent, 38.5 per cent for Ford, and 36.4 per cent for Chevrolet.
China's gain and Canada's loss The promise of cheap Chinese-built cars flooding the North American market has been on the table for years. Now it looks like General Motors could become the first major automaker to import Sino-made cars to our shores.
A GM planning document circulated among U.S. lawmakers shows the Detroit automaker plans to triple the number of Chinese-made vehicles sold in the U.S. from 17,335 in 2011 to 51,546 in 2014.
However, those foreign manufacturing gains will come at the expense of fewer GM vehicles being made in Canada.
Apparently, GM plans to sharply increase sales of cars it makes in China, Mexico and South Korea, while reducing the number made in Canada from 431,708 in 2010 to 330,610 in 2014.
As reported in Automotive News, the UAW criticized GM plans.
"GM should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries," the letter from UAW legislative director Alan Reuther said.
Germans prep for Frankfurt
It's a long summer for auto show junkies between the New York exhibition at Easter and when the season kicks off again in the fall.
Germany's Frankfurt show, which alternates with the Paris auto show each year, is a go for this September. And according to Dutch website AutoWeek.nl, word is already out as to what we can expect from the home country's major automakers.
Audi is set to unveil its Mercedes-Benz CLS "four-door coupe" rival as either the A5 Sportback or A7. As well, expect a new A8 sedan.
BMW will have hybrid versions of its X6 crossover and 7-series full-size sedan to debut, plus the production X1 compact crossover as well as its new 5-series sedan. That will also include the controversial GT five-door hatchback version.
Mercedes will have a cloth-top convertible version of its just released E Coupé.
Even General Motors' orphaned Opel is still going ahead – with a new Astra compact for the show.
The German automaker that could potentially make the biggest news, though, is Volkswagen, which will have no less than four all-new models.
Expect to see its new Robust compact pickup, a Golf wagon, high-performance R version of the Golf, plus a sports coupe based on the subcompact Polo.
Will any of these debuts make it to our shores? We'll just have to wait and see.
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