Preview - 2006 Buick Lucerne from Autoblog.com
Autoblog.com has an excellent preview of the 2006 Buick Lucerne, the replacement for the best-selling Buick LeSabre. Based on this preview, it looks like Buick will hold onto its most loyal customers. Whether it can win new (and younger) customers may depend upon pricing and intangibles.
2006 Buick Lucerne: Autoblog First Look - Autoblog - www.autoblog.com _
Monday, June 06, 2005
Is there an Aromatic Membrane in your future? Fuel Cell Car Update 2005 - Hond FCX
This year's Honda fuel cell vehicle, the FCX, drives like an ordinary car according to Jim Motavalli of the New York Times. While range remains limited, at about 190 miles, this year's fuel cells are half the size of the previous models and produce twice the power. The subcompact FCX weighs 3700 lbs, goes 0-60 in about 11 seconds (slow but not extrodinarily slow), and costs over a million dollars.
Honda's #1 bragging point: an aromatic electrolyte membrane allows the FCX to operate at temperatures down to four degrees below zero. Cold weather performance has always been a problem for fuel cells. That's why I never understood why they are used in NASA spacecraft, since the temperature in space is close to absolute zero.
Honda FCX: What a Gas! A Week in Suburbia With a Hydrogen Honda - New York Times
This year's Honda fuel cell vehicle, the FCX, drives like an ordinary car according to Jim Motavalli of the New York Times. While range remains limited, at about 190 miles, this year's fuel cells are half the size of the previous models and produce twice the power. The subcompact FCX weighs 3700 lbs, goes 0-60 in about 11 seconds (slow but not extrodinarily slow), and costs over a million dollars.
Honda's #1 bragging point: an aromatic electrolyte membrane allows the FCX to operate at temperatures down to four degrees below zero. Cold weather performance has always been a problem for fuel cells. That's why I never understood why they are used in NASA spacecraft, since the temperature in space is close to absolute zero.
Honda FCX: What a Gas! A Week in Suburbia With a Hydrogen Honda - New York Times
Fireworks at the GM Annual Shareholder Meeting?
GM CEO Richard Wagoner is expected to announce a turnaround plan. Since changing anything at GM is like pulling teeth, the Wagoner plan is expected to involve fairies and massive amounts of enamel & dentin stashed under pillows all across the GM universe.
In March, Wagoner announced that GM lost $1.1 Billion in the first quarter. Coincidentally, $1.1 Billion is how much Hyundai spent to build its Alabama plant. Hyundai's plant will ultimately have the capacity to build 300,000 cars and light trucks. Coincidentally, 300,000 is about the total annual sales volume of GM's Buick division, or thought of another way, GM's smallest three divisions (Saab, Hummer & Saturn) put together.
The Car Connection - GM Braces for Shareholder Gripes - This time, it?s Wagoner?s big shot.
GM CEO Richard Wagoner is expected to announce a turnaround plan. Since changing anything at GM is like pulling teeth, the Wagoner plan is expected to involve fairies and massive amounts of enamel & dentin stashed under pillows all across the GM universe.
In March, Wagoner announced that GM lost $1.1 Billion in the first quarter. Coincidentally, $1.1 Billion is how much Hyundai spent to build its Alabama plant. Hyundai's plant will ultimately have the capacity to build 300,000 cars and light trucks. Coincidentally, 300,000 is about the total annual sales volume of GM's Buick division, or thought of another way, GM's smallest three divisions (Saab, Hummer & Saturn) put together.
The Car Connection - GM Braces for Shareholder Gripes - This time, it?s Wagoner?s big shot.
Thursday, June 02, 2005
Three Seat Crossover Comparison
This month marks the formal release of the Subaru B9 Tribeca, a crossover SUV with three rows of seats. I put together an Edmunds.com comparison of similar vehicles. What stands out is the tremendous price advantage held by the Ford Freestyle, about $6,000 in this set-up. The Ford has a lower horsepower engine, but according to multiple sources, it is anything but slow thanks to an innovative CVT transmission. With 0-60 coming in at under 9 seconds even with AWD, the Freestyle can get out of its own way. When the Freestyle was first introduced, I called it the "style fee" due to generic SUV styling. In all fairness, the styling is neither better nor worse than average for this class of vehicle.
Comparator - Print
This month marks the formal release of the Subaru B9 Tribeca, a crossover SUV with three rows of seats. I put together an Edmunds.com comparison of similar vehicles. What stands out is the tremendous price advantage held by the Ford Freestyle, about $6,000 in this set-up. The Ford has a lower horsepower engine, but according to multiple sources, it is anything but slow thanks to an innovative CVT transmission. With 0-60 coming in at under 9 seconds even with AWD, the Freestyle can get out of its own way. When the Freestyle was first introduced, I called it the "style fee" due to generic SUV styling. In all fairness, the styling is neither better nor worse than average for this class of vehicle.
Comparator - Print
True or False: It costs more to own a Honda Civic than it does a Dodge Ram 2500.
Answer: False, but it's closer than one might think -- at least for the first year. Even though the fuel cost for 15,000 miles for the Honda is only $653, the depreciation on the Civic is $5,252 for the first year, compared to $2,891 on the Dodge Ram. Thanks to higher financing, taxes, insurance, taxes and maintenance, the Dodge truck costs $10,339 for the first year compared to $9,403 for the Civic. Over the long term, the Civic is much cheaper. The 5 year cost on the Civic is $28,116 versus $43,707 for the Dodge. The difference: $15,591. It could be worse though, remember from my previous post, over 5 years, GMC pick-up cost about $10,000 more than the Dodge.
What about SUVs? A Nissan Armada is rated at $53,195 over 5 years, with a whopping $17,661 coming out of your pocket in the first year.
It's clear then that your choice in vehicle can easily make a $5,000 a year difference in your net worth over time. That difference can either be ameliorated or exaggerated based upon your choice of new versus used and based on how long you choose to keep your vehicles. If you are finding it impossible to save money, I recommend that you run the numbers an plan your car purchases far in advance. Also, these figures assume a 15,000 miles driven per year. You should budget the per mile costs of your actual vehicles when you are determining where to live. You may find that it is more economical to buy a more expensive house that is closer to work.
2005 Honda Civic True Cost to Own ratings at Edmunds
Answer: False, but it's closer than one might think -- at least for the first year. Even though the fuel cost for 15,000 miles for the Honda is only $653, the depreciation on the Civic is $5,252 for the first year, compared to $2,891 on the Dodge Ram. Thanks to higher financing, taxes, insurance, taxes and maintenance, the Dodge truck costs $10,339 for the first year compared to $9,403 for the Civic. Over the long term, the Civic is much cheaper. The 5 year cost on the Civic is $28,116 versus $43,707 for the Dodge. The difference: $15,591. It could be worse though, remember from my previous post, over 5 years, GMC pick-up cost about $10,000 more than the Dodge.
What about SUVs? A Nissan Armada is rated at $53,195 over 5 years, with a whopping $17,661 coming out of your pocket in the first year.
It's clear then that your choice in vehicle can easily make a $5,000 a year difference in your net worth over time. That difference can either be ameliorated or exaggerated based upon your choice of new versus used and based on how long you choose to keep your vehicles. If you are finding it impossible to save money, I recommend that you run the numbers an plan your car purchases far in advance. Also, these figures assume a 15,000 miles driven per year. You should budget the per mile costs of your actual vehicles when you are determining where to live. You may find that it is more economical to buy a more expensive house that is closer to work.
2005 Honda Civic True Cost to Own ratings at Edmunds
How much does it cost to tow your bass boat?
Here's an Edmunds.com "True Cost to Own" printout on a Ford F150 4wd.
2005 Ford F-150 True Cost to Own ratings at Edmunds
Over 5 years, this vehicle will cost $46,124 or $.61 per mile. Like most vehicles, a higher percentage of the cost to own is depreciation than fuel. Depreciation is $5659 in year one but goes down to $2303 in year 5. With fuel costs of about $2000 for 15,000 miles, it's easy to see how drivers of full-sized trucks don't sweat fuel prices much. It's the price of the truck itself that predominates.
Incidently, Edmund calculates the TCO for the Toyota Tundra at $45,165 based on slightly lower depreciation and operating costs. On the other hand, the 2005 GMC Sierra 1500HD is rated at a True Cost to Own of $53,375. So, if you can believe these figures, you can buy yourself a $7000 vacation in Hawaii (or a used bass boat) every 5 years just by choosing a Ford over a GMC. And if you really wanted to save money, you could get a 2004 Dodge Ram Pickup 2500. This is an even bigger truck than those described above, and instead of sucking down $2000 in gas a year, it slurps $2700 to $3000. Even with the extra gas money, the True Cost to Own the Dodge over 5 years is only $43,707. What's the difference? Depreciation. First year depreciation is only $2,891. Fifth year depreciation is only $1859.
From a public policy standpoint, we will not achieve meaningful fuel savings until the cost of fuel relative to the total cost of ownership goes up substantially.
Here's an Edmunds.com "True Cost to Own" printout on a Ford F150 4wd.
2005 Ford F-150 True Cost to Own ratings at Edmunds
Over 5 years, this vehicle will cost $46,124 or $.61 per mile. Like most vehicles, a higher percentage of the cost to own is depreciation than fuel. Depreciation is $5659 in year one but goes down to $2303 in year 5. With fuel costs of about $2000 for 15,000 miles, it's easy to see how drivers of full-sized trucks don't sweat fuel prices much. It's the price of the truck itself that predominates.
Incidently, Edmund calculates the TCO for the Toyota Tundra at $45,165 based on slightly lower depreciation and operating costs. On the other hand, the 2005 GMC Sierra 1500HD is rated at a True Cost to Own of $53,375. So, if you can believe these figures, you can buy yourself a $7000 vacation in Hawaii (or a used bass boat) every 5 years just by choosing a Ford over a GMC. And if you really wanted to save money, you could get a 2004 Dodge Ram Pickup 2500. This is an even bigger truck than those described above, and instead of sucking down $2000 in gas a year, it slurps $2700 to $3000. Even with the extra gas money, the True Cost to Own the Dodge over 5 years is only $43,707. What's the difference? Depreciation. First year depreciation is only $2,891. Fifth year depreciation is only $1859.
From a public policy standpoint, we will not achieve meaningful fuel savings until the cost of fuel relative to the total cost of ownership goes up substantially.
Overcapacity in China - Part One
Chinese domestic auto sales went down 4% this year. That country already has more capacity than domestic demand. Even with that, foreign automakers are investing $12 Billion to triple capacity there before the end of the decade.
(Not in this press release) Honda announced that it was going to import Chinese-made Fit minicars into Europe.
Research and Markets: China's Auto Market Faces Increasing Oversupply in the Next Two Years
Chinese domestic auto sales went down 4% this year. That country already has more capacity than domestic demand. Even with that, foreign automakers are investing $12 Billion to triple capacity there before the end of the decade.
(Not in this press release) Honda announced that it was going to import Chinese-made Fit minicars into Europe.
Research and Markets: China's Auto Market Faces Increasing Oversupply in the Next Two Years
Rosie O'Donnell's Most Shocking Confession: I Bought A Pontiac Aztek
formerlyROSIE: 6 months after leaving
formerlyROSIE: 6 months after leaving
Wednesday, June 01, 2005
Strike 2 for General Motors Marketing - gmprovingrounds.com
General Motors has a gimmicky marketing website gmprovinggrounds.com. Unfortunately, it has a fixed browser window size without a scrollbar, and all of the feature's aren't accessible at 800x600 through MSIE 6.0. So, I'll pass.
That's marketing money wasted. Speaking of wasted marketing money. Earlier this spring, I got a certificate to test drive a Buick and receive a gift certificate. I went to the local Buick dealer to test drive a car, I waited over an hour, but they had no dealer plates left, so I left without test driving the car. They did validate my certificate, but it's been two months, and I haven't received anything.
The Buick LaCrosse might be a good car. I wouldn't know, I didn't get a chance to drive one. Hare Buick Pontiac GMC didn't think it was a good idea to have as many dealer plates as it has salespeople.
GM has to learn that you can't have cars 90% as good as the competition. You can't have dealers 90% as good as the competition either.
Proving Grounds
General Motors has a gimmicky marketing website gmprovinggrounds.com. Unfortunately, it has a fixed browser window size without a scrollbar, and all of the feature's aren't accessible at 800x600 through MSIE 6.0. So, I'll pass.
That's marketing money wasted. Speaking of wasted marketing money. Earlier this spring, I got a certificate to test drive a Buick and receive a gift certificate. I went to the local Buick dealer to test drive a car, I waited over an hour, but they had no dealer plates left, so I left without test driving the car. They did validate my certificate, but it's been two months, and I haven't received anything.
The Buick LaCrosse might be a good car. I wouldn't know, I didn't get a chance to drive one. Hare Buick Pontiac GMC didn't think it was a good idea to have as many dealer plates as it has salespeople.
GM has to learn that you can't have cars 90% as good as the competition. You can't have dealers 90% as good as the competition either.
Proving Grounds
When you think Child Pornography - Think Yahoo!
I'm trying out for a marketing gig for Yahoo! The article linked below discusses an investigatory journalism article that blows the lid off of Yahoo!'s Child Pornography chatrooms. Yahoo hosts sites geared to adults trying to pick up kids. Pepsi, Countrywide Mortgage, and other major firms advertised on the site.
TheIndyChannel.com - Technology - Investigation Shows Big Business Funding Sex Chat Rooms
I'm trying out for a marketing gig for Yahoo! The article linked below discusses an investigatory journalism article that blows the lid off of Yahoo!'s Child Pornography chatrooms. Yahoo hosts sites geared to adults trying to pick up kids. Pepsi, Countrywide Mortgage, and other major firms advertised on the site.
TheIndyChannel.com - Technology - Investigation Shows Big Business Funding Sex Chat Rooms
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