Those looking for a little bit more punch from their microcars are in luck as smart will begin offering the BRABUS-tuned version of its fortwo in the U.S. beginning in February 2009. News of its impending arrival was apparently emailed to potential smart owners who have already placed reservation deposits but have not yet configured their new fortwo. These people in line for a regular smart fortwo will have the option of changing their reservation to the limited edition BRABUS model beginning 8PM EST tonight. The American-ized version should feature the same 98-horsepower turbocharged three-cylinder engine as the BRABUS fortwo in Europe, as well as the same styling tweaks and handling package. Even with the increase in power, the European BRABUS fortwo is still able to achieve 45 miles per U.S. gallon. While it's 10-second run to 60 won't break any records, that's a precious few ticks quicker that the standard model and would surely make the microcar a lot more fun to drive. Still, we'll take what we can get.
Light-vehicle sales in the U.S. are expected to continue their decline in 2009. Global Insight, a firm that has been forecasting sales since the 1960s, is predicting sales of 13.4 million units next year. That figure is slightly down from the 13.8 million units automakers are expected to sell in 2008. (For comparison to recent years, 16.1 million vehicles sold in 2007 and 16.5 million units sold in 2006.) Global Insight makes note of the current U.S. credit crisis and the worsening global economy, citing the worldwide financial situation is more detrimental to auto sales than oil at $200-a-barrel. When oil is high, at least the countries benefiting from the oil profits continue to purchase cars – unlike today. While analysts differ on when we may see a turnaround, the firm feels it could take until 2013 for sales to recover to levels seen just a few years ago.
Hopes for Renault's possible return to the American market were stymied when it became apparent that General Motors wasn't interested in a far-reaching partnership with the brand and its Nissan ally a few years ago. It seems that the French automaker is still very interested in re-entering the U.S. and would consider other possible partnerships. One particular option that popped up at the Paris Motor Show is a purchase of the Chrysler brand if Cerberus were interested in parting ways with it. Interestingly, Chrysler was the automaker that Renault pawned its last U.S. efforts off on. It wouldn't be an easy time to enter the U.S. market, as every automaker is currently posting lower-than-hoped-for sales figures, including Chrysler, which reported numbers down by nearly a third. Still, Chrysler has plenty of dealerships in the U.S. and Renault would love to have access to some of them. Plus, Chrysler is rumored to be in search of a new mid-sized sedan platform to build off, something that Renault would be more than capable of providing. Another more costly option would be for Renault to go it alone, producing three brand-new vehicles just for the U.S. We'll keep an eye on these rumors and report back if anything more substantial breaks.
Diesel fuel prices are hovering about 20 above gasoline on average. It seems that automakers are a bit worried this disparity could have a negative impact on their upcoming diesel-powered cars and trucks. While it's true that Volkswagen and Mercedes-Benz are already rolling out new oil-burners in all 50 states with positive results, there remains a concern that there are only so many buyers willing to spend extra to get a more efficient engine and then pay extra to fill it up. At a Senate Energy and Natural Resources Committee on diesel fuel prices today, a spokesperson for the Alliance of Automobile Manufacturers fell short of suggesting what to do about the situation, choosing instead to highlight the fact that diesel fuel is taxed more than gasoline, whereas in Europe where oil-burners are much more popular, the opposite is true. Reading between the lines a bit, it's not hard to see his point.
Gumpert has finally expanded its reach beyond Europe and begun selling its Apollo supercar in the U.S. The supercar, which currently sits atop the list of fastest cars around the Top Gear test track, will be shipped to the U.S. and arrive in Arizona where the drivetrain will be assembled and final performance checks done by Evolution Motorsports. Then the cars move on to California where customers actually do the purchasing and pick up at European Touch in Huntington, Beach. The base price for one of ten U.S.-spec Gumpert Apollos coming to the U.S. each year is reportedly $400,000, though each can be infinitely customized and final prices above $700,000 are not uncommon. Just watch out for those speedbumps, as any repair work has to be done back in Arizona by Evolution Motorsports, the only authorized Gumpert repair center in the country.
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Production of the Artega GT is set to begin later this month and even though the budget Cayman competitor is limited to 500 units per year at the automaker's current plant, Artega has plans to expand beginning with new variants of the GT. Within the next two years, Artega will offer a lightweight, four-cylinder version likely to be powered by one of Volkswagen Auto Group's turbocharged 2.0-liter engines, while a soft-top is slated to go on sale sometime in 2010. The current production center can't handle the increased capacity of two additional models, but an Artega exec says that the company owns enough land to build an extension next to the main plant. Speaking with CAR, Karlheinz Kalbfell said, "Mid-term U.S. sales are a must. But since we need to prepare ourselves well for this important move, late 2010 looks like the earliest possible date." That's about the same time the convertible should be available, and according to Kalbfell, since "roadsters have traditionally always done well in the U.S.", it would be the perfect time to launch the brand in the States. Needless to say, we're looking forward to getting behind the wheel.
Toyota Financial Services recently leaped over GMAC Financial services to take the lead as the biggest U.S. auto lender in terms of loan and lease contract volume. The study by AutoCount (a unit of the Experian Automotive company) estimates that Toyota captured 6.35% of the market from January through June, while GMAC had 6.2% for a close second place. Rounding out the top five were Chase Auto Finance, American Honda Finance, and Ford Credit (in that order). As GMAC has made major cutbacks in leasing over the summer, many industry experts expect Toyota to hold its lead through the end of the year. A spokesperson from GMAC was quick to point out that the study did not include two wholly owned subsidiaries: Nuvel Credit and National Auto Finance. When those two companies are included, GMAC's share increases to 6.72 percent -- effectively placing them at the top again. While the automakers battle for the title position, the independent banks are the ones to watch. They've been steadily increasing their lending share as the Detroit 3 struggle with the rising costs of funds and declining credit ratings.
A quick glance at today's announcements from America's largest automaker is an easy indicator that the U.S. auto market, at the very least, is under as strong as recession as could be imagined. According to Presidential hopeful Barack Obama, the entire industry as a whole is facing a "perfect storm" of "record gas prices, rising steel prices, a credit market contraction that has made it more difficult for consumers to purchase autos, and a weakening economy that has shed jobs for six straight months."
As the auto industry goes, so go the livelihoods of countless workers -- both directly employed by the Detroit 3 and indirectly supported by suppliers, dealers and the like -- making today's announcements from GM a "sobering reminder" of the current state of the U.S. economy. Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole it currently finds itself in. What it likely doesn't mean, though, is a bailout, according to Obama's likely opponent, John McCain, and U.S. Secretary of Commerce Carlos Gutierrez.
Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.
The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.
Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.
GM knows it needs an economical, mass-market, mass-appeal small car -- badly. Yes, it has the Aveo, but it's underwhelming in all respects, and sure, it's currently pimping the Cobalt XFE, but that car's about as exciting as an episode of Antiques Roadshow. Corsa? Not engineering the current one to be U.S.-compliant probably wasn't the greatest idea. The answer? MarketWatch says The General has summoned its inner Janet and cried, "Gimmie a Beat!" GM has yet to make a formal announcement, but it seems the Chevy Beat is indeed coming to the U.S. market. The broader public will get a really good look at it next Summer in the Transformers sequel, and as was the case with the Camaro, they'll be looking at a car they'll (apparently) be able to buy. If GM is smart, the screen-to-showroom transition won't take two years as it has with Camaro. It seemed a bit dumb that GM chose New York as the launching pad for the Beat and its fellow Triplet concepts, only to say that the car would be a "global" vehicle (read: everywhere but here). Now, it would seem that global really means global. Hey General, it probably wouldn't hurt to make Trax and get your Groove on, too.
