Scott K Scott K

JD Power IQS ranks Detroit ahead of imports for the first time

JDP has released their latest Initial Quality Survey (measuring problems encountered during the first 90 days of ownership) and had one big surprise in store.

While the industry average went down slightly (from 108 problems per 100 vehicles in 2009 to 109 in 2010), this year's results are the first time that the Detroit 3 have come out ahead of imports.  The Detroit brands actually improved their quality over last year's results by 4, bringing them to a score of 108.  The import brands matched the overall industry average of 109.

Ford was the highest ranked US brand with a score of 93.

JD Power ranks lists the top 3 models in several segments and Ford had a model represented in the top 3 in a dozen segments.  They had 3 models that topped their respective segments, tied with Lexus for most top-of-segment honors.

GM had 10 models in the top 3 of their segments.

Chrysler's results were mixed with Ram coming in just shy of industry average with the Dodge car brand (Ram split from Dodge recently, taking the truck lines away from Dodge) coming in as the worst Detroit brand in initial quality.

It is interesting to notice that Toyota's recent troubles have pulled its ranking down significantly falling from 6th place last year to 21st in the 2010 survey.  It is significant to mention that IQS has its detractors since any complaint on the survey is listed as a problem (recent high profile examples were Mini dropping low in the list in part due to poor cupholder design).  This means that IQS scores can be highly dependent on the level of picky-ness of the customers of a brand during a given year.

Highest in the rankings this year was Porsche with a 83 and lowest went to Land Rover with 170.
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GM Brands - Live or Die?

I'm sure you've heard by now about the piece in Fortune (my least favorite source for automotive content) about what GM should do to get back in the game...

It's strange to me how a company that is as large and successful as GM, is the only one of the 'big 3' that isn't either in serious trouble or for sale...is considered by so many journalists as a failure.

So, Toyota sold more cars world-wide than GM in the first quarter of 2007...okay. The margin is still tight and with GM's turn-around plan fully in motion, there is no reason to believe that their market share slide will not slow, stop, or even turn around soon.

But, let's accept for a moment the concept that they have not changed enough structurally and need to do more drastic things to match the Toyota machine...do they need to slice off brands and shrink down to a more manageable size?

Fortune suggests killing off Saab, Hummer, Buick, and Pontiac. Moving GMC to a commercial-only vehicle brand, repositioning Saturn as a Scion killer, and leaving Cadillac and Chevrolet as full-line brands to compete against Lexus and Toyota.

Well - I doubt I'd go nearly that far. But, the idea of bringing some coherency to the GM lineup has some appeal.

Here's my plan for GM's brands:

Saab - this brand has no place in GM's future. As a global luxury brand - it competes with Cadillac. As a competitor to Volvo - it ends up in the no-mans land between Buick and Cadillac. As a beloved quirky brand of hatchbacks and a favorite of college profs everywhere...you're killing me with a lack of attention/attempts to mold the brand into something it isn't and shouldn't be. Find a company that could understand what Saab is about and sell it to them ASAP.

Hummer - the brand everyone loves to hate, but a success story if ever there was one. Who would have ever thought that GM could have a viable competitor to Jeep so soon after launch. Sure, there are other GM brands with trucks, but Hummer has such focus and such credibility as a producer of off-road vehicles that this brand will go down as one of the success stories of the early 21st century.

Will it sell in huge numbers? No. Should GM keep it anyway? Yes, yes, a thousand times yes. This brand shows exactly what laser-like focus on a brand's mission gives you. Everyone knows a Hummer on sight, everyone knows what it can do, and it is true to these brand traits from top to bottom.

Not to mention, that it doesn't cost a lot to keep them around and they don't compete at bit with anything else GM sells (incremental profit - thy name is Hummer).

GMC - in the dictionary under 'redundant'... GMC sells rebadged Chevrolet trucks and, in the case of the Acadia, a rebadged Saturn. I understand this brand is cheap to maintain and successful in certain markets...but unless GM is serious about 'Professional Grade' enough to drop the crossovers and light-duty trucks from GMC and drop all heavy-duty trucks from Chevy - leaving GMC as a heavy-duty and commercial truck division, then just kill them and let Sierra buyers get Silverados. I can't imagine that the extra dealer body and marketing efforts are made up for by the incremental GMC buyer who would not ever buy a Chevrolet.

Chevrolet - full line, all the time. Assuming that Chevrolet keeps their truck line (it will), then Chevy can easily become the full-line brand that Toyota is. Chevrolet should be your source for everything from micro-cars through leather-lined Impalas. It is a hodge-podge brand that can be just about anything to anyone with a smattering of high-performance products, mainstream front and rear-drive product, trucks, etc.

Cadillac - 'Standard of the World' in the making. Cadillac will be a major beneficiary of a lean, mean GM. The money saved by not supporting Saab product development and GMC can be funneled into an expansion of Cadillac into a true Mercedes/BMW killer. A smaller-than-CTS sedan and coupe, a CTS coupe and wagon, a smaller-than-XLR sports car, a small SUV, as well as an ultra sedan and coupe on the upper end would book-end GM's offerings on the upper end.

Pontiac - focused like Hummer only for the on-road enthusiast. Word is that Pontiac is going all rear-drive. This is going to tick off the Pontiac dealers that are used to being a sporty Chevy...but the success of Pontiac needs to be by offering something focused. A rear-drive line, from a sub-compact through a Grand Prix sized rear driver (the new G8) in sedans/coupes/convertibles...allowing for a resurrected GTO, the Solstice, and possibly a Firebird (as more of a 2-seat, smaller, V-8 equivalent to the GTO) - then Pontiac will mean something. Think of Pontiac as a rear-drive Mazda without the SUVs and minivans and you will see the idea.

Buick or Saturn - pick one. As you have likely heard, Buick is going after Lexus (but given Lexus is totally in Cadillac price territory...why?). Saturn is expanding with sophisticated and stylish product to compete against imports (how antiquated a niche is that in this day and age?). Both are aiming at front-drive for the majority of the lineup. However, Saturn is going for everything from mid-teens hatchbacks (the Astra) through mid-30's crossovers (Outlook).

Buick is at the early stages of a resurgence with the Enclave SUV (based on the same platform as the Saturn Outlook) and will have mid and large sedans (and coupes?) as its basis.

GM needs to make a decision here. Buick or Saturn, but not both.

Saturn is becoming a full-line manufacturer (which seems to get in the way of Chevrolet). However, on the plus side, they have a young buyer and a great reputation through their dealer body and no-hassle philosophy.

Buick, on the plus side has decades of history, loyal buyers, and would carry a stately, elegant, American Jaguar aesthetic quite well. As a softer, less sporty, front-drive alternative to Cadillac's rear-drive lineup - it could work. However, with its aging buyers and less focused niche, I'm not sure how it will fit in with smaller Cadillacs and larger Chevrolets.

I can make a case for either, but better if Chevrolet is limited to softer, middle-of-the-road, tuning for their larger stuff and by merging Buick and Saturn into a single entity that sells sophisticated, stylish, near-luxury product.

So, for me, the ultimate GM would be one that sells Saab, kills GMC, merges Buick and Saturn, moves Pontiac into a hard-core sports brand, and gives the savings to Chevrolet and Cadillac to compete with Toyota and BMW, all the while spending a little bit of money giving Hummer 3 or 4 models that are various sizes of the hard-core off-roader concept.

It isn't as shocking and likely to get me press as Fortune's story...but it might be the one that gives GM an even better shot at long-term success.
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GM to show next E-Flex vehicle in Frankfurt

The good folks at Winding Road are reporting on a statement made by Bob Lutz at last week's NY Auto Show about the follow-on to the Chevy Volt concept.

Another E-Flex vehicle (a battery powered vehicle with a supplementary engine/power source to extend range) will be shown at the Frankfurt show in September, likely badged as an Opel.

Expect this E-Flex to use a biodiesel engine as the 'range extender' and to have a unique body to that of the Volt.

GM still plans on putting an E-Flex powered vehicle into production in 2010 - barring any unforeseen problems getting the Li-Ion battery technology scaled up to allow electric-only operation for 30-40 miles.

See the video of the interview at:

Winding Road: Bob Lutz - New Volt-based Concept will Debut in Frankfurt
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GM reconsidering all their cool rear drive plans?

I mentioned earlier today that government or consumer action would possibly cause the automakers to change their product mix...I really didn't expect to see a concrete example the same day.

Over at Winding Road, they are reporting that Bob Lutz is saber-rattling that GM might have to hold off on some of their most exciting upcoming product to see what the Bush Administration does with regard to CAFE (fuel economy) rules, etc.

In the report, they claim that the Camaro is a done deal, but most everything else is now being reconsidered. This could include the Alpha platform (next Pontiac G6 and Cadillac BLS), rear drive replacements for the Chevy Impala and Monte Carlo, as well as rear-drive Buicks, etc.

The issue, according to Lutz is that they don't know how they'd get 30% better economy from these platforms.

My take? They think they know how to get there - but aren't sure yet. So, the benefits of mentioning product cancellations (possibly causing Washington to enact less aggressive new rules) outweigh the bad PR of looking less eco-friendly.

Come on, Bob...you can't talk about how green GM is and how hard you are working on all this cool technology and then claim that you can't figure out how to make RWD as efficient as FWD...it makes you and GM look like you don't know what you are doing (at best) or are lobbying away our future to save a buck (at worst).

Read about it at:

Winding Road: Lutz - Most of GM's Rear-Drive Future 'On Hold' Due to Possible Regulation Changes
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Kappa + Zeta = Alpha? Pontiac G6 to go rear-drive

Gotta love those crazy engineers at GM.

For some time now, we've been hearing that GM planned to take the Pontiac line in a rear-drive-only direction.

The Solstice, while an example of this, certainly was no proof. Then the Grand Prix replacement went to the Zeta chassis as the G8 it started to look like there might be something to all this talk.

However, it has always bothered me that the G6 could not easily make the transition. It is based on GM's Epsilon global front-drive platform. Even though the 2nd generation Epsilon2 is supposed to have all-wheel drive as an option...all-wheel drive just isn't the same as rear-wheel drive. Especially to enthusiasts. How did GM plan to take a mid-sized sedan to this new rear-drive Pontiac ethic?

Now, word comes that GM is far into development of a new platform...part Kappa, part Zeta...and going by the name 'Alpha'.

This chassis will serve as the basis for both the next generation G6 as well as it's Euro-cousin in the Cadillac lineup, the BLS.

Now that this puzzle piece has fallen into place, we can only hope that we will soon hear rumblings of a Kappa based small sedan/coupe to replace the current Cobalt-clone G5...perhaps with the G4 name.

Ah, a fun time to be a GM fan no matter how you slice it.

Winding Road: GM's Next RWD Platform: Alpha
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GM plans 7 debuts at New York show

While news is trickling in of what will come from various automakers at the New York show in April, we do know a bit about GM's plans.

Expect 6 new production vehicles as well as 1 concept to make their world debuts at the NYAS.

Already known of the 6 production cars are the Lucerne and LaCrosse 'Super' packages. LaCrosse is also expected to get a freshening, so it might count as one of the 6 as well.

Also due could be a mid-cycle refresh of the Cadillac STS (we've seen the interior over at CaddyEdge.com already) as well as the expected HHR SS.

The concept is a complete unknown at this point - but this should make for a great cap to the auto show season for the resurgent GM.
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New Toyota Tundra not all its cracked up to be?

Toyota is working hard to push their new Tundra as the best thing for truck-buyers since the invention of the leaf-spring...but they are running into some snags.

First is the realization that the Tundra is the only full-sized pickup to _not_ get a 5-star front crash rating from the US government. (ouch).

Now, courtesy of Jalopnik - we have the contents of a letter from GM to their dealers that pokes some holes in the recent Tundra ad where the truck pulls a trailer up a steep incline of a see-saw device and then comes to a screeching halt at the end (once it all tips over and becomes a steep down-hill...

This is an interesting read and shows how you have to read that fine print...

Thought you might want to know this. Pass it along to your sales staff. It might help them to sell more vehicles. BTW.....attended the Minneapolis Auto Show kick off breakfast on March 8. Two of our Sandy trainers did a nice job explaining the Tundra ads. I would guess all of you have seen the stupid ad where the Tundra pulls a trailer up a steep grade (a 'see-saw'), and then barrels down hill and locks the brakes up just before the end of the ramp. Seen it? Yeah you have.

Couple things to keep in mind. The V.O. at the beginning of the spot says...."It's tough pushing 10,000 lbs up a steep grade". Myth: Toyota would like the audience to believe the trailer is 10,000 lbs. Fact: It's a 5,000 lb truck pulling a 5,000 lb trailer. A little slight of hand? You bet.

Then, on the way down the grade, the camera zooms in on the brakes as the vehicles comes to a screeching halt just prior to the end of ramp. Next time you see the ad....look for the 'mice type'. It indicates the trailer is equipped with electric brakes. Fact....the electric brakes stop the trailer -- not the truck. A little slight of hand? You bet.

And why does Toyota have bigger brake pads? They need them....their truck is heavier. Stopping distance between our truck and theirs is virtually identical. And why does Toyota have a 6 speed transmission? To improve their fuel economy....which is still 2 mpg less than ours.

And don't forget....their big V8 has one axle ratio -- a 4.3. Suck fuel much? Our trucks offer several axle options to optimize towing and fuel economy. Bottom line: OUR TRUCK IS BETTER! Spread the word.......we can all make a difference.
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Mega post - what's been going on in the auto world?

Okay, Kevin...this one's for you...

What's been going on in auto-dom?

From a corporate stand-point, we've had Chrysler rumored to be for sale and companies as varied as Hyundai, GM, and supplier Magna all in the running to pick up the pieces. Strangely, it looks like only Dodge and Chrysler might be up for sale with Mercedes keeping the Jeep brand for itself (and making a purchase by GM of the rest even less likely).

Ford is still hurting badly. They are bleeding money at a rate that few companies could sustain and are in desperate need to get something other than the F-series and Mustang to market that customers and dealers will be passionate about.

To that end, new man in town Alan Mulally at Ford is quickly trying to turn things around by challenging the processes at Ford that got them in this mess in the first place. He, at least partly, is responsible for deciding to bring back names with equity and rebadge the Ford Five Hundred, Freestyle, and Montego to Taurus, Taurus X (which seems to be a mistake to me), and Sable. Given how little the average public knows about cars, this should help at least in the name recognition department.

Ford has also announced that the new Mazda2 (that debuted at Geneva) will get reworked to become a new small-car for Ford to pitch at the Honda Fit, Toyota Yaris, and Nissan Versa's of the world...but don't expect it until 2009.

Lincoln is still a mess (the new front-end is hideous and the brand has been allowed to become a shell of its former self due to Ford's unwillingness to spend the serious money to compete in the lux market).

Mercury is still not sufficently different than Ford - a problem they could fix by announcing a plan to bring Euro-Ford product over and badge them as Mercury (a la Opel and Saturn over at GM).

GM is still going gangbusters with their turn-around.

Pontiac has announced the replacement to the Grand Prix in the new G8. Available in 3.6l V-6 and 6.0l V-8 forms and based on new Zeta chassis developed by Holden - Pontiac is on its way to a transformation into a true enthusiasts brand...it will be interesting to see if the G6 replacement is a RWD car or if they use an AWD version of the Epsilon 2 platform to skirt having a front-driver in the line. It will also be interesting to see if Kappa (Solstice) spawns a small RWD coupe/sedan to replace the Cobalt-clone G5.

Saturn is close to completing their self-reinvention with the ION replacement that will come late this summer in the form of the, imported from Germany, Astra 3 and 5-door hatches. These are the 2nd most popular cars in Europe (after VW's Golf) and are available in sedan and wagon forms as well if the hatch body-style doesn't catch on. Also, an Astra Red Line would be easy to do as there is already a turbo, sports model of the Astra sold in Europe.

Saturn also has a new people mover in the Outlook crossover that will likely replace the Relay in the Saturn line.

Chevy has as much as confirmed a super-car version of the Corvette that should debut at next year's Detroit show. Expected to pack over 600hp and possibly carry the Corvette SS name - this $100k version of the Corvette should set the supercar establishment on its ear.

Speaking of the SS sub-brand, Chevy has all but announced that SS will now only apply to true sports machines...not just sporty versions of everything they make. The Equinox Sport was announced recently with a 3.6l V-6 but without the SS badge that had SS fans fuming. I'd expect SS to only appear on Corvette, Camaro, and a new Zeta-based Impala that is expected in a year or so. Trucks, SUVs and front-drive cars will likely make due with the 'Sport' badge.

Cadillac is still on a roll...the Chicago show brought the 2008 CTS with familiar, yet more elegant styling, a direct-injection 300+ hp version of the 3.6 V6 (the previous 3.6 becomes the base engine with the 2.8 V6 becoming an export-market only powertrain). Transmissions are now all 6-speed and rumors abound of a wagon and coupe version to come in a year or so. New interiors are all over the place, starting with the SRX, now coming in the new CTS and also in a mid-cycle refresh of the STS. Cadillac is even more of a legitimate player in the upper lux segment.

GMC has the new Acadia crossover and an upcoming Yukon hybrid. Buick has a V-8 version of the Lacrosse coming as well as the stunning Enclave crossover. Hummer has more powerful engines for the H3...but not much else exciting for these three brands.

Until next time...
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