Archive for April, 2010

Jaguar is eager to shed the “bad kitty” reputation it earned after years of lackluster quality and reliability.  To do so, the luxury carmaker is launching a new complimentary maintenance program for all 2011 models.

The Platinum Coverage program includes free scheduled maintenance and no-cost replacement for common wearable items, like windshield wiper blades and brake pads.  Coverage lasts for 5 years or 50,000 miles, whichever comes first.  Roadside assistance is also included.

BMW offers a similar Ultimate Service program, which has been credited with boosting sales after it’s launch several years ago.  Carlo Poccino, a BMW sales consultant in Irvine, California notes, “We’d be selling a lot fewer cars if it weren’t for Ultimate Service.”

It’s clear that Jaguar needs the boost.  The British marque has been hit particularly hard by the global economic recession.  Sales in the first quarter of 2010 were down 14% compared to the prior year, at a time when the industry as a whole was up 16%.

Unlike other luxury manufacturers, Jaguar lacks an entry level model that can attract buyers who are either on their way up into the luxury ranks or who are downsizing as a result of tightening household budgets.  The lowest priced vehicle in the Jag lineup is the stylish XF sedan, which starts at $52,000.  For comparison, the Mercedes C-Class starts at $33,600 and the BMW 1-Series at $29,150.

With the new Platinum Coverage program and a striking new XJ flagship sedan on the way, Jaguar is hoping for a strong rebound in the latter half of 2010.  In an interview with Automotive News, the company’s vice president for sales and marketing, Richard Beattie, said that the new program is, “game changing for Jaguar.”  He expects the program to increase traffic and help to close deals at dealerships.

“This will dramatically improve people’s perception of the brand,” he added. “Getting customers into our cars is a real goal. If they don’t want to shop for Jaguar because they feel servicing is too expensive, we have wiped that concern out completely.”

Chevrolet took a huge swing at the 2010 Beijing Auto Show with the introduction of its new Volt MPV5 concept.  Based on the Volt platform, the SUV is roughly seven inches wider and taller than the Volt sedan.  It production model will likely carry the same Voltec system – engine generated electrical power.  The added weight of the vehicle will be interesting to see how this affects range and performance.

The look is extremely consistent with the Volt – a good thing – and shows the promise of great things from GM.  One striking thing you can see from the concept car is its extremely low rocker cladding, making this crossover more wagon-ish than SUV-ish.  The lithium ion battery packs certainly have a lot do do with the lower floor.

While it doesn’t take a trend forecaster to know this vehicle was coming, it is comforting to know that GM is spending our government funds wisely.  They have built another smart package and they are clearly addressing the growing needs of the consumer.  I for one, don’t really see myself in one of the plenty smallish EVs on the road.  It will take a product like this to get me over the hump to buying electric.  Yes, I did money down on a Nissan Leaf, but that’s because another better opportunity is not in front of me yet.  The world hopefully changes in the next 6 months.

I’m not a hug fan of the rear, but I get why the designers needed to make it so vertical, almost van-like.  To make it truly a cargo carrying crossover, they needed to create as much cargo space as they could.  Without much flexibility in the wheelbase, all they could do is maximize rear height.  It’s doesn’t kill the car for me, but i do wish they had the ability to get a few more inches out of the wheelbase and give the designers more flexibility in shaping the rear.

The introduction of this vehicle at the Beijing Auto Show is a sign of the times for GM.  As it has spent considerable energy in China the past 15 years, it is clearly showing the world the importance of the region by showcasing a vehicle that has very American proportions.  But if they’re going to win in China, they’ve learned that they must give it’s premier show the respect by launching a future core product there.  I like the thinking as it also shows they are going to get out of their current crisis by being a world brand.  And their press release accentuates this point:

“Rapidly growing demand for personal transportation across China is creating new environmental and energy security challenges,” said Kevin Wale, President and Managing Director of the GM China Group. “GM is committed to finding and adopting solutions, which include the electrification of the automobile. The world premiere of the Volt MPV5 concept in Beijing demonstrates GM’s desire to make China a global focus of its advanced technology strategy.”

To see the full press release, go here.  You can also view all car reviews of various GM vehicles at Honk.

GM is launching a new grassroots marketing campaign to reach out to minority groups across the country.  Dubbed ‘Ride and Drive,’ the campaign is designed to get people behind the wheel of GM vehicles without requiring a trip to the dealership.

Representatives from the company show up at places where large minority groups congregate and then let people look around and go for a spin at their leisure.  In some cases, GM is even offering incentives to take the cars out for a test drive.

The ride-and-drive events are so far being met with success.  A recent event had GM reps attend one of Detroit’s largest churches, the Hartford Memorial Baptist Church, after a Sunday service.  Parishioners were invited to test drive several Chevrolet, Buick, GMC, and Cadillac vehicles.  GM even went so far as to offer free inspections of child car seats by their own safety experts.

In an interview with the Detroit Free Press, Pastor Charles Adams explained that the event demonstrated GM’s commitment to minority causes.  He added, “We are encouraging our church members to take care of their community by buying locally. This is an ethical purpose that is beyond profit.”

At a similar event held in Los Angeles, the automaker reached out to the Korean-American community by showcasing the new Chevrolet Camaro, which was penned by Korean-born designer,  Sangyup Lee.  GM served up tasty Korean bar-b-que from a well known local food truck while patrons chatted with company representatives.

GM spokeswoman, Carolyn Normandin explained that the Ride and Drive events are, “helping to change the public’s perception of our brands,” and are giving people the chance to experience vehicles, “firsthand, on their own terms.”  Last week, Normandin hosted another event at a Detroit coffee shop where patrons were offered a $5 coffee card in exchange for spending a few minutes to sit inside the new Buick Lacrosse and learn about its key features and options.

GM’s Ride-and-Drive events are so far proving to be a great way to gain exposure to markets that are often difficult to reach through traditional advertisements.

Normandin notes, “We know some people have never been in GM products before, particularly for a division like Buick/GMC. We know one way to help people fall in love with our products is to get them into our products and get them exposed to it.”

While reading the coverage of Fiat’s 5 year plan on Automtive News this morning, I was excited to learn that Alfa Romeo may be coming back to the United States. According to the Automotive News article: “(Chrysler) will build two new Alfa crossover models for sale in North America and in Europe.”

So, what does that mean? Will the styling be Alfa or Chrysler? What about the engines?

While we don’t have any of the details yet, a girl can certainly dream. As shown on the Alfa Romeo website, their current line-up consists of 7 models:

1) The MiTo, which is a 3-door hatchback mini-car (serious front, cutesy bug-like rear)

Alfa Romeo MiTo

Alfa Romeo MiTo Rear view

2) The Giulietta (which replaces the Milano) is a five door family car (European family cars are usually a lot smaller than family cars in the US)

Alfa Romeo Giulietta front

Alfa Romeo Giulietta Rear

Alfa Romeo Giulietta Interior

3) The 159 is Alfa Romeo’s mid-size sedan…it is also available in a Sportwagon version

Alfa Romeo 159 Sedan Front

Alfa Romeo 159 Sportwagon

4) The Alfa Romeo GT is a front wheel drive coupe

Alfa Romeo GT Front

Alfa Romeo GT Rear

5) The Brera is a 2+2 coupe (manufactured by Pininfarina)

Alfa Romeo Brera Front

Alfa Romeo Brera Rear

6) The Alfa Romeo Spider is a roadster version of the Brera

Alfa Romeo Spider Front

7) The gorgeous Alfa Romeo 8C Competizione and 8C Competizione Spider (8C comes from 8 Cylinder), high end sports cars, round out the line-up

Alfa Romeo 8C Competizione front

Alfa Romeo 8C Competizione Spider front

Alfa Romeo 8C Competizione Spider Side

Alfa Romeo 8C Competizione Spider Rear

Alfa Romeo is said to have between 3-7 new models coming out in the next 5 years. It should be an exciting time for the Italian Automaker, and I am anxious to see what Alfa Romeo and Chrysler will bring to the US.

Just in time for Earth Day, Nissan has announced a priority reservation system for their upcoming electric vehicle.  The Leaf’s 115,000 registered fans can secure their place in line nearly a month before the general public is allowed.  Reservations require a $99 placeholder fee that is fully refundable.

Though Tesla was first to market with a modern highway-capable electric vehicle, Nissan has a significant advantage when it comes to price.  The Tesla Roadster starts at $101,500 compared to the Nissan Leaf’s $25,280 (yes, batteries are included).  A federal tax credit of $7,500 is used in both cases to reduce the vehicle’s base price, though additional state and local incentives can reduce the price even further.

Nissan is getting extra creative by preemptively rolling that same $7,500 federal tax credit into a very aggressive lease deal.  Customers will be able to lease a Leaf for 36 months for only $349 per month (with $1,999 down payment).  Three-year leases on Toyota’s Prius range from about $330-$540, depending on the level of optional equipment, putting the Leaf within easy striking distance of the popular hybrid.

The attractive lease deal is a clever move on Nissan’s part because it allows skeptical consumers to try out the Leaf in the real world without the need for a long-term commitment.  If owners find that the 100-mile driving range is too limited, they won’t have to worry about finding an eco-minded buyer to take the car off their hands.

Nissan doesn’t think that demand will slacken, though.  The Japanese carmaker is already hard at work on several new electric vehicles to sell alongside the 5-seat, 90-mile per hour Leaf and has been partnering with state and local governments to develop an extensive network of public recharging sites.

Carlos Ghosn, Nissan’s CEO, cites research indicating that more than eight percent of automobile owners in Europe, Japan, and the US want for their next vehicles to be powered solely by electricity.  “We are very optimistic,” he said at the Geneva Auto Show earlier this year.  “We may have to rush to build capacity for cars and batteries.”