All About Cars

Ideally, a “Car of the Year” should stimulate our auto emotions and mark our place in time.

Historically, cars that have redefined motoring include the Ford Model T, the Chevrolet Suburban, the post-war Jeep, the Volkswagen Beetle, the Chevrolet Corvette, the Ford Mustang, the Honda Civic, the Dodge Caravan, the Nissan 240Z and the Mazda Miata, just to name a few.

For 2008, Motor Trend magazine chose the Cadillac CTS as its “Car of the Year.” That’s a sensible selection, but I’m going with the Smart Fortwo.

While the CTS may have changed perceptions of Cadillac, the Smart Fortwo could change the way we think about urban transportation in general and our environmental responsibilities in particular. Certainly, Smart’s thrifty 3-cylinder engine marks an inflection point in automotive history. Current economic reality has grown so dire that several major makers of full-size trucks have idled their plants in the middle of the model year.

Against long odds of penetrating the American market in an enduring way, Smart carries the clout of automotive importer Roger Penske and the car’s parent Mercedes-Benz.

Others have tried this niche. A company in Hollister, Calif., created a nifty electric-powered three-wheeler called the Corbin Sparrow that went the way of the Dodo in 2003. The car was quick and fun to drive, but closer to a motorcycle than a car.

And the Sparrow did not have the benefit of a sales record in Europe and the nationwide reality of $3 per gallon gas. What will make the Smart car go in the U.S. is likely the vanity of American motorists who want something really different, the growing strength of the environmental movement and the affordability of the car at an entry-level price of $11,590.

For anyone unwilling to endure minimalistic motoring, the Smart Fortwo will be a hard sell. In terms of ride, acceleration and comfort, the Fortwo is a big step down from, the similarly priced Toyota Yaris, Nissan Versa or Honda Fit. While those comparatively roomy models are subcompacts, the Smart Fortwo is a micro car, a new category in mass marketing.

The Smart Fortwo asks a lot of its driver. Instead of the smooth-shifting automatic transmissions that have become commonplace on even the entry-level models, the Smart has an automated five-speed manual transmission. What this means is that the transmission pauses between gears, just as if you had pushed in the clutch pedal. The clutch is operated automatically.

Critics say the fuel economy is disappointing for such a small car. Under the old EPA standards of 2007, the Smart burned unleaded at the rate of 40 miles per gallon in the city and 45 on the highway. Under the new 2008 standard, the figures are 33/40. The hybrid Toyota Prius surpasses that at 60 mpg in the city, and some conventionally powered cars come close. However, the Prius, which gets better mileage in the city than on the highway, is not recommended for road trips. The Smart can carry you coast-to-coast, provided your luggage is not much bigger than a couple of backpacks.

Thinking futuristically, the Smart could be adapted to an electric motor, as is happening on piecemeal basis in Britain. A hybrid version might surface, though the lack of capacity could limit the options there. Long range, the Smart could someday run behind the first fuel-cell system, which is one of Daimler-Benz’s specialties.

One of the most significant breakthroughs for the Smart car is its remarkable safety. Mercedes, the world’s leader in automotive safety, has created a Tridion cage that engineers compare to the shell of a walnut. Smaller does not necessarily mean less safe, Mercedes engineers say, and they have the crash-test results to back that up.

To keep the cost down, Smart limited the standard warranty to two years or 24,000 miles, allowing buyers to option up to three years or 36,000 miles.

Although built to fit big cities where parking is at a premium, Smart is getting strong responses in smaller cities such as Austin, Texas, Penske said. Even Omaha, Neb., and Jackson, Miss., will have dealerships.

This car could boom or bust. Either way, it’s a bold move.

With sales beginning in earnest in 2008, more than 34,000 potential owners have placed $99 deposits on the Smart Web site, with deliveries expected to begin in January. So far, Penske has seen no need to hire an advertising agency, relying on press coverage and word of mouth for publicity.

“We’ve learned a real marketing lesson in how powerful the Internet is,” he said

Chinese automaker Chery has started to test its A6cc sport coupe on road driving. The model was first unveiled at Shanghai Auto Show in past April, Chinese auto website Cheshi.com reported today.The model is expected to be launched in the second half of next year and priced RMB160,000 (US $31,700) to RMB 170,000 (US$23,000). The automaker once said it may offer three engine options: a 2.4 L V6, 3.0 L V6 or a turbocharged four-cylinder 2.0L variant.

With a wheelbase of 2.7 meter, Chery A6cc sport coupe is based on the same platform with A6. It has also been designed to meet Europe’s strict safety and emissions standards.

In the first eleven months of this year, Chery sold 356,214 units, becoming China’s fourth largest automaker.

Honda Motor Co., Ltd. announced the release of the all-new Inspire. The appeal of the new model has been dramatically strengthened with performance and comfort enhancements, yet the price range remains ¥3,300,000 to ¥3,900,000—very close to that of the previous model. The new Inspire will debut at Honda dealers throughout Japan.

In keeping with its status as a luxury sedan, the new, 5th-generation Inspire has inherited the sporty performance and quality feel of its predecessor, adding significant improvements to all essential elements of sedan performance—driving, cornering, and braking. The new Inspire is infused with dynamism and intelligence in all aspects of design, interior space, driving, and functionality.

The V6 3.5-liter i-VTEC engine, available for the first time in Japan, features an advanced Variable Cylinder Management (VCM) system that switches between six-, four-, and three-cylinder combustion depending on the driving conditions. This system is combined with numerous improvements to aspiration and combustion efficiency to achieve high output of 206kW (280PS) and high torque of 342N•m (34.9kg•m), and making the new Inspire the only domestic 3.5-liter-class sedan in Japan*1 to run on regular, unleaded gasoline. Fuel economy is also significantly enhanced.

The new Inspire is equipped with a full range of safety equipment. A driver and front-passenger i-SRS airbag system, front-seat i-side airbag system, and side curtain airbag system are standard equipment on all types, along with Honda’s original Advanced Compatibility Engineering body, which provides a high level of protection to vehicle occupants while also helping to reduce the force of the impact on the other vehicle during a collision. The 35iL also features Honda’s CMBS (Collision Mitigation Brake System) and E-pretensioners as standard equipment. CMBS determines if there is a danger of a rear-end collision and alerts the driver, further functioning to mitigate injuries and vehicle damage in the event of a collision.

In order to deliver the sort of direct handling feel and smooth ride comfort one expects in a luxury sedan, the new Inspire features a newly developed suspension, along with a lightweight, high-rigidity body for a lower center of gravity and reduced inertia. The interior design blends luxury with advanced functionality. A broad range of accessories provide all the amenities needed for a long drive, creating a relaxing, luxurious space that transports the vehicle’s occupants in comfort around town and on the freeway.

MOST listed Chinese auto makers powered to better-than-expected profit this year on growing sales, and analysts forecast that they will drive investors to higher profit next year.

Shanghai Automotive Co Ltd, the listed unit of China’s biggest car maker, Shanghai Automotive Industry Corp, reported its net profit more than tripled to 3.8 billion yuan (US$513 million) for the first three quarters of this year. Sales rocketed more than 21 times to 76 billion yuan.

Shanghai Auto’s share price soared more than 170 percent from 8.3 yuan at the start of the year to 26.07 yuan at the close last Friday.

Its shares reaped harvest from the car maker selling additional shares to investors last year to expand its core business from auto parts to car production by merging assets in its two joint ventures with General Motors Corp and Volkswagen AG.

SAIC sold over 840,000 units in the first half.

Net profit at Beiqi Foton, China’s largest light vehicle producer, powered 92 percent to 285 million yuan from January to September while sales rose 45 percent to 21 billion yuan during the same period.

Sinotruk, China’s largest heavy-duty truck assembler, estimated profit for the whole year will jump by 150 percent to 200 percent on high demand for heavy-duty trucks.

Last year Sinotruk made a net profit of 224 million yuan. Its shares also climbed from 25.48 yuan on January 4 to 48.4 yuan last Friday.

“In addition to the booming stock market, auto-related stocks are favored because the profitability of car makers has improved and assets have been optimized, ensuring more potential for future growth,” said Wang Canbing, an independent industrial analyst.

Auto-related stocks are projected to remain upbeat against overall market performance because of a rosier outlook.

China replaced Japan as the world’s second largest auto market last year, trailing only the United States.

BMW’s big Detroit debut will be the production X6 Sports Activity Coupe (unsurprisingly, BMW avoids the somewhat unbecoming “SAC” acronym), which will be arriving in US showrooms sometime during the second quarter of 2008. When it does, buyers get two flavors to choose from.

The xDrive50i is powered by a new twin-turbo, direct-injected 4.4L V8 pumping out 400-horsepower and 450 lb-ft of torque. The xDrive35i, meanwhile, gets the automaker’s acclaimed 300-hp TT inline six-cylinder. Dynamic Performance Control is a standard feature that can direct torque to either rear wheel, further aiding steering in both dry weather and sloppier conditions. Design-wise, the production X6 looks pretty much just like the hybrid-equipped concept version we saw earlier this year. Basically, it’s a larger “X” model with a coupe roofline. Not bad, as SUVs go, but the sloping roof obviously forces owners to compromise some space in the name of style. Still, the driver and three friends can stow their golf clubs in back while riding in comfort. Interior appointments are typical BMW fare, meaning they’re quite nice. If you’ve been in a modern Bimmer, you know precisely what to expect. The X6 is no slug, either, with a manufacturer-claimed 0-60 time of 5.3 seconds for the turbo V8 model. We’ll have plenty more to say after we check it out firsthand in a few weeks.

With the new Ikea store, once again the Planning and Roads Services have shot themselves in their carbon feet!

They preach carbon reduction, but with bare-faced hypocrisy set minimum numbers of car parking spaces.

No car parking should be the sustainable norm for commercial developments, especially those out of town, with total dependency being on public transport.

A spin-off would be the survival of our High Street shops.

Getting tired of the staid supercars sitting in your garage? Now is your chance to own the Guinness-verified world’s fastest car, the SSC Ultimate Aero which was clocked at an average two-way speed of 255.83 mph - besting both the Bugatti Veyron and Koenigsegg CCX. Motorcars of Las Vegas. the sole distributor of the Ultimate Aero, has chassis #SSC-07-004 on its showroom floor ready for its first owner. This is the first one they have had for immediate delivery, and there are only 15 miles on the odometer. The twin-turbo V8 mounted amidships puts out 1183 horsepower and 1094 lb-ft torque. Other features include a full carbon fiber body, navigation system, back-up camera, and a front lift system to clear speed bumps. If this particular one doesn’t suit your taste, you can also commission one to your own specifications.

Mazda’s presence at the Tokyo Auto Salon, the great aftermarket emporium in the East, will be marked with three Mazdaspeed concepts that should give us an insight into what’s in store for the automaker’s in-house performance arm.

The Atenza/Mazda6 concept we saw last week will be joined by hotted-up Axela (Mazda3) and Demio (Mazda2) models that receive a fair share of body enhancements and interior upgrades. Unfortunately, Mazda has yet to release an English language press release on its Japanese site and Google doesn’t seem to be keen on providing a translation. However, we know that Japanese tuning houses, Ken Style and DAMD, had their hands in the development, so we’ll see what’s released when the show gets underway January 11 through 13.

Vu Tran of Calgary, Alberta, figures he saved about $14,000 when he recently bought a new car at a Montana dealership. After driving the 400 miles back to Calgary, he told family and friends about the deal and ended up coming back — to help them buy cars.

“What a bonus I got from Montana!” Tran said in a telephone interview.

Placer Motors, where Tran did business, has seen an influx of Canadians looking to take advantage of a hot combination: new cars at sticker prices below what they’d find at home, plus favorable currency-exchange rates. Placer owner Erick Anderson says he’s just one of a number of U.S. automobile dealers reaping the benefits of Canadian trade. There’s even a Web site with tips about the process.

“There’s a huge price difference to begin with and then you take the exchange rate — it’s a no-brainer,” Anderson said. A Subaru Tribeca on his lot costs about $35,000, compared to roughly $55,000 in Canada, he said.

Anderson said Canadian business began as a trickle last year and increased, with his company in November selling 17 or 18 cars to people who then drove them north of the border.

Not everyone is happy with these sales.

Under a Subaru of America Inc. policy effective Jan. 3, new cars sold in the United States but registered in Canada no longer will count toward dealers’ bonus payments, spokesman Michael McHale said from company headquarters in Cherry Hill, N.J. Ford spokesman Jim Cain said that company also is among those that discourage selling cars destined for Canada.

“Canadian dealers have their own business and we have our business here,” McHale said. “Their job is to sell cars in Canada and our job is to sell cars here, and we’re just trying to make sure we all do our own jobs.”

He did not elaborate on the policy and declined to discuss differences in car prices.

“They want to try to protect the Canadian dealer a little bit,” said Dave Terebessy, a market analyst in Detroit for CSM Worldwide, which forecasts automotive markets.

Anderson has standardized how he handles the Canadian sales.

“We agree on price and everything else before they (Canadian buyers) get here,” he said. “They transfer the money and if for some reason the car is not what they want, I give the money back. Nobody’s wanted the money back.”

An influential Cebuano businessman, who has connections with politicians, has been importing high-end cars from Europe for more than a year, an official of the broker’s association in Cebu alleged.

Ricky Gantuangco, external vice president of the Professional Brokers Association of the Philippines-Visayas, said he received reports from an insider at the Bureau of Customs that the businessman, whom he refused to name, could import luxury cars from Europe at least once a month.

Gantuangco said two of the congressmen-friends of the businessman come from Mindanao while the third is from Cebu.

He added that the businessman was allowed to bring in luxury cars because of his congressmen-friends.

The Cebu Auto Dealers Association (Cada) had earlier complained of car smuggling in Cebu.

Gantuangco has called for a congressional inquiry after Cada exposed the huge discrepancy over the registration of new and used vehicles.

He said he would ask for an executive session if called to testify during the House investigation on the alleged car smuggling in Cebu.

“I am willing to give the names of those I learned who are involved in the smuggling activities in an executive session but what I am after is how to correct the system,” Gantuangco said.

He added he has some recommendations, which could help curb or even stop the car smuggling.

He recommended the improvement of the Customs systems by inviting representatives of Cada, Presidential Anti-Smuggling Group, the brokers association and civil society, to witness the scanning of container vans.

“What is really important is to focus on how to improve the system [and] not to run against these persons who will just use all the excuses to absolve them from any crime,” Gantuangco said.

Jose Manuel Cuenco, president of Cada, also said some businessmen in Cebu who were importing luxury vehicles had friends in “high places.”

Cuenco alleged that more than 10 businessmen in Cebu had influential friends in Congress and in other government agencies, such as the Land Transportation Office and Customs.

These friends have been conniving in the car smuggling activities, which have been going on for the past five years, he added.

Cuenco claimed that the businessmen first engaged in importing surplus parts and vehicles, then expanded to bringing in used luxury cars and have been involved in car theft.

He expressed hope that the brokers would testify in Congress because they knew more.

Cada had claimed that the smuggling of luxury cars had become rampant in Cebu as evidenced by almost 20,000 difference between the number of vehicles registered by the LTO in the region in 2006 compared to the number of cars sold by legitimate car dealers.