The Automotive News Week in Review - November 20, 2009
There is no question that the Ford Crown Victoria Police Interceptor occupies a unique niche in the automotive market. Although the vehicle’s platform, which dates back almost 30 years, has been deemed too archaic to remain a part of Ford’s consumer lineup, it still represents a strong income stream in the form of fleet sales – particularly to police departments. It turns out that the Ford Crown Victoria’s ancient body-on-frame design gives law enforcement the reliability and ease of repair they need from a vehicle that sees significant miles and abuse over the course of its service life.
All good things must come to an end, however, and every indication was given that when the Ford Crown Victoria rode off into the sunset in the near future, the company would no longer be in the position to accommodate police fleets. It was only after the announcement that General Motors, sensing an opportunity to leap back into a more significant law enforcement role, would release a fleet-only edition of its overseas market Chevrolet Caprice that decision-makers at Ford admitted that it too would produce a specialty police vehicle to replace its venerable warrior.
Slated for sale in 2011, details on the new Ford Police Interceptor are still vague, but it will follow a rear-wheel drive, V8 design along with many optional police upgrades including bullet-resistant door panels, heavy duty accessories and a fire suppression system. The company plans on the new Ford Police Interceptor helping it to maintain the nearly 75 percent market share it currently enjoys in terms of sales to police departments.
It seems that hardly a week has gone by this fall season without yet another sweeping recall being ordered by a beleaguered car company responding to a serious safety issue. Perhaps the only solace that automobile owners can take is that the blame has been spread around to so many different brands, making it hard for anyone to escape a dealership visit.
The latest vehicles to be affected by the recall bonanza include those manufactured by Jeep and Mitsubishi. Specifically, 161,000 Jeep Wranglers fitted with automatic transmissions are missing a system designed to monitor the temperature of transmission fluid, which could theoretically become hot enough to boil and eventually start a fire. Jeep’s solution is to have those vehicles fitted with a warning chime and gauge that indicates overheated fluid, giving Wrangler owners the chance to park and wait things out. The recall is targeted at vehicles built in the 2007-2008 model years.
Mitsubishi’s recall is slightly less dramatic, but could have equally hazardous effects on the health of drivers. 29,353 Mitsubishi Lancer and Lancer Evolutions built in 2008 and 2009 may have issues related to the corrosion of their front-impact sensors. The problem is restricted to vehicles which have been sold or are registered in the so-called “rust belt,” that unfortunate grouping of states which deal with serious winter conditions involving the use of road salt. The sensors are sensitive to becoming coated with salt and water and then corroding to the point where they are no longer capable of properly deploying airbags in time. Mitsubishi is installing upgraded impact sensors on all affected vehicles.
In an announcement sure to warm the hearts of taxpayers, General Motors softened the blow related to news that the company had lost $1.15 billion in the third quarter of 2009 by simultaneously stating that it will start the repayment process associated with the government bailout it received earlier in the year. Total federal investment in GM has reach $50 billion, with the loans themselves representing $6.7 billion of that total.
While the company’s reported losses might seem staggering, they are composed largely of payments related to restructuring costs and the cost Delphi’s bankruptcy. The bright side of the equation is an almost $5 billion revenue increase compared to the second quarter of 2009, along with a surge in global sales numbers. GM’s decision to begin making loan payments now is well ahead of the scheduled due date in 2015.
Continuously-variable automatic transmissions (CVTs) are an order of magnitude more expensive to repair than their traditional automatic cousins. This is due to the fact that the mechanical innards of these devices must replicate a theoretically infinite number of gear ratios, versus the simple four to seven found in most other autos.
Nissan is a brand which has been pushing the use of CVTs quite hard across almost its entire product lineup, and as a result it has recently made a fairly bold move to extend the warranties on all of its CVTs from five years / 60,000 miles to ten years / 120,000 miles. Not only that, but the company will actually reimburse any current Nissan owner for their documented repair expenses related to any CVT work performed out of warranty and prior to the extension. This act of good will should not only generate positive vibes for Nissan amongst its existing customer base, but it will most likely also encourage more than a few potential buyers to take a chance on a continuously-variable transmission in a future Nissan purchase.
Hummer’s sales are currently experiencing the full extent of the anti-SUV backlash, with 64 percent fewer vehicles sold thus far in 2009 compared to 2008. That hasn’t discouraged the off-road brand’s new ownership group, Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. from forging ahead with plans to flesh out the current Hummer lineup with some fresh blood. The company hopes to more than triple sales in 2010 with the addition of a more compact, two-door H4 model intended to appeal to lone wolf outdoor adventure types currently served by the Jeep Wrangler, and another smaller model dubbed the H5, which would be positioned as the company’s fuel saver.
Friday Free for All: MAZDA2 Joins the Party Edition
Or perhaps "joins the Fiesta" would be more appropriate, and I don't mean just because I'm feeling a bit bilingual today.
Here's the deal: As most people with even the slightest interest in the industry already know, the Blue Oval is launching its successful global subcompact, the Ford Fiesta, early next year in the U.S. The car has been on sale overseas for about a year now, moving more than 500,000 units since its debut and becoming the second-best seller in Europe for 2009.
Needless to say, Ford is expecting big things from the little car in America. It's supposed to give the company instant credibility in the subcompact segment, where Ford hopes it will pull customers from rivals like the Honda Fit, Toyota Yaris, Nissan Versa and Chevrolet Aveo. And it should, as it is expected to offer the same kind of fuel efficiency but in a more stylish package that also offers some impressive driving dynamics. Plus, as Ford's first mainstream global product launching in the U.S. — the Ford Transit Connect isn't exactly aimed at retail buyers — it will also be a serious test case for whether American customers are ready for a European driving experience.
And while European-spec models already have been prowling our roads for a few months courtesy of the Fiesta Movement, the excitement has been growing over the U.S. version's official debut at the Los Angeles auto show next month. You know, the same event at which the Mazda MAZDA2 (overseas model shown above) will be launched.
Now, the brief for the MAZDA2 probably sounds a bit familiar to Fiesta supporters: The Mazda is a well-established global subcompact that aims to bring style and "zoom-zoom" driving dynamics to the segment in this country, while still achieving serious mpg numbers.
The MAZDA2 also happens to be built on the same platform as the Ford Fiesta, which makes perfect sense once you remember that Ford had a controlling interest in Mazda right up to about this time last year.
This kind of cross-company platform sharing has worked out pretty well for the Ford Fusion and the Mazda MAZDA6, but those two mid-size sedans are really aimed at different parts of the market. Well, different enough, anyway.
The Ford, despite the presence of the Fusion S sport version, works the more family-oriented Toyota Camry/Honda Accord side of the street, while the Mazda6 relies on that aforementioned "zoom-zoom" stuff to set itself up as the choice for more enthusiastic, style-driven customers.
But the MAZDA2 and Ford Fiesta (UK model pictured near right) are going to be much more similar, and their battle for market share is likely to be much more contentious.
Kind of like the situation with another Ford model slated to debut in L.A., the 2011 Ford Mustang. The current-generation retro-look Mustang has already been the recipient of a subtle-but-extensive exterior redesign for the 2010 model year, and the focus in Los Angeles is likely to be on powertrain and handling improvements — and a rumored 600-hp EcoBoost engine for the next Mustang GT500.
But even that might not be enough to win today's muscle-car sales wars, as Ford has to battle against the surprisingly popular Chevrolet Camaro. The Chevy has outsold the Ford for five consecutive months, and some analysts (e.g., those who work at GM) are thinking the Camaro could end up ahead of the Mustang by the end of the year.
The Camaro, to my admitted surprise, has become a flat-out hit. Not only is it outselling its chief rival from Ford, but it was also the fourth best-selling car overall from the General in October, trailing only the Chevrolet Malibu, Chevrolet Impala and, uh, Pontiac G6, which was still good for 8,358 October sales.
Coincidentally, that's about the same number of vehicles that HUMMER has sold all year, which is about what you would expect from the dead brand. What you might not expect, on the other hand, is that HUMMER thinks it can triple that number in 2010.
This might be a bit optimistic, but if the the current crop of U.S. muscle cars can find more than 100,000 customers a year — a number already exceeded in 2009 by combined sales of the Mustang, Camaro and Dodge Challenger — there's no reason to think off-road enthusiasts can't support both Jeep and HUMMER.
Rumors are percolating through the blogosphere about upcoming HUMMER products, too, with a new H4 and possible H5 getting most of the play. These would be smaller — and more fuel-efficient — than the current H2 and H3, with the H4 aimed at the Jeep Wrangler and the H5 slotting under that. These vehicles are still years away, at best, but it's worth noting that GM had already begun work on the former before killing off the brand, and that Sichuan Tengzhong Heavy Industrial Machinery will get the associated engineering plans as part of its deal to purchase HUMMER.
Assuming, of course, the deal actually goes through.
Select photos via Mazda and Ford
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