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May 12, 2008

Exhaust Note #11 – When Did Small Vehicles Get So...Nice?

Automotive technology always seems to trickle down from the high end. And why shouldn’t it? Expensive and innovative technologies typically appear in luxury vehicles first, but as they increase in popularity and volume, economies of scale ultimately make them financially viable to mainstream consumers.

Coincidentally, a whole host of formerly pricey accoutrements are making their way into small vehicles at a time when interest in small vehicles is increasing. Yes, fuel prices have a lot to do with increased consumer interest in smaller vehicles, but it’s also a steadily increasing number of young, Generation Y first time buyers coming into the marketplace.

Just last week, Suzuki announced that navigation will be standard – yes, standard – in the 2009 Suzuki SX4, their little entry level car. And it’s no bare bones nav either – it includes all the latest in navigation technology, such as real time traffic, weather, local events, and integrated Bluetooth for your cell phone, which is also capable of reading your text messages to you. Developed by Garmin and Microsoft, Suzuki’s T.R.I.P. (travel, real-time traffic, information and play) system incorporates infotainment features that many luxury cars don’t even offer yet. You can bet that similar technology will soon be available (if not standard) in competing small vehicles in the near future.

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Posted by Ed Kim at 11:10 AM | Comments (0)

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May 09, 2008

Muscle Cars: Losing Mass, Momentum

Okay, let me run some names by you:

Charger

Camaro

GTO

Pop quiz, hot shot: What decade is it?

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Posted by Katrina Ohlemacher at 12:34 PM | Comments (0)

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May 07, 2008

SIX DOLLAR A GALLON GAS

This is all conjecture, understand? But we were talking over lunch about the continuing increase in the price of gasoline. That subject has everybody talking, right? Well, crude oil has just gone comfortably over $120 per barrel and we are well on our way to a national average price of $4 per gallon for regular unleaded gasoline. What is doing this? And where is it going?

Remember when gas was this cheap? May, 2006.

Weak Dollar

Since George W. Bush entered the White House, the value of the dollar has fallen 41%. This automatically makes the price of gasoline in dollar terms much, much higher. At dollar parity from the beginning of 2001, we would be paying $72 dollars for a barrel of oil and gasoline would be priced at between $2.25 and $2.50 using the equation from energytomorrow.org. EnergyTomorrow.org is brought to you by "The people of America's Oil and Natural Gas Industry". Their formula contends that crude oil is 72% of the cost of gasoline; refining, distribution, service stations, marketing is 16% (probably includes their profits as well); taxes are another 12%.

So, with gasoline being at a national average of $3.61 today, the weak dollar accounts for $1.36 of the cost per gallon.

Now, government policies determine the value of the dollar and even though President Bush and the Treasury state that they are in favor of a strong dollar, their actions have resulted in a weak dollar.

Crude Oil Prices

Sure, crude oil has just moved over $120 per barrel. Goldman Sachs Group was widely criticized in 2005 when they forecast a barrel of oil at $105. Now, they are talking about $150 per barrell by the end of the year. $150 would result in gasoline priced in the range of $4.90 to $5.10 per gallon. If the price per barrel rises to $200 per barrel a per gallon gasoline price of between $6.40 and $6.60 per gallon would be the result.

Big Oil?

We believe, although we have no proof, that Big Oil is also a major culprit. They do have some level of influence on the price of crude oil. After all, they drill for it, pump it, refine it and sell it. For the past half decade, it has appeared to us that Big Oil has been playing a psychological game with American drivers. They ratchet up the price of gasoline to $3.00 per gallon and everybody is pissed. Then they drop it back to $2.50 per gallon and everybody feels better. The next price peak is $3.25 and then it drops back to $2.75. The next price peak is $3.50 and then drops back to $3.00. See the pattern? Intentionally or not, they are psychologically conditioning us to higher and higher prices.

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Posted by George Peterson at 02:39 PM | Comments (0)

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2008 Dodge Challenger SRT8: Ready to Run

After much hype and buildup, the Challenger SRT8 arrives in dealers this month. The wait for a broader lineup isn't long, however, as a fleshed-out range arrives this fall (click for our coverage of the full-line reveal at New York, or the SRT8 reveal in Chicago). We were lucky enough not to have to wait until fall to get behind the wheel, though, as Dodge invited us to take a spin in Pasadena, California, on our way to Willow Springs Raceway. Not a chance we'd say no!

Driving away from the hotel, easing out of Pasadena local traffic, it was a few miles before the opportunity to explore the depths of the throttle arrived. When it did, the payoff was instant acceleration and an exhaust and engine symphony. The 425HP Challenger SRT8 tune is visceral, powerful, and begs that right foot ask for more. When you get, say, up into the Angeles Crest highway and away from stop signs and bicyclists, Challenger proves an entertaining companion. In town, the car is comfortable and it only takes a well-placed blip to bring out that wonderful burble. Mustang's V8s sound terrific; Challenger SRT8 sounds even better. Issues of fuel economy and pollution aside, the Challenger SRT8 and smoky burnouts are an obvious pair. Though none executed by this author, an SRT engineer left serious rubber on request just outside of pit lane. It was truly a sight to behold, watching the car just get swallowed up in tire smoke.

That SRT8 is estimated for 13/18 mpg on the EPA cycle, improved with MDS and other tweaks over the known Charger SRT8, isn't important here. If you're considering an SRT8, you've already accepted living life below 50 mpg. And if you haven't, there are plenty of options out there. The limited-run 2008MY starts at just under $38,000, with only three sub-$1000 options.

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Posted by Stephanie Brinley at 11:48 AM | Comments (0)

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May 05, 2008

Exhaust Note #10 - Will VW’s Road to Mainstream Success be Smoothly Paved?

Considering just how much Volkswagen is a part of our cultural lexicon, it’s somewhat surprising that there aren’t more of them on the road. Volkswagens have been an iconic part of our automotive landscape, and just about everyone has a Volkswagen memory – whether recent or from long, long ago.

Volkswagen enjoyed a tremendous resurgence in the late 1990s with the New Beetle and the fourth generation Jetta. Both appealed strongly to young and young-at-heart buyers, leading to incredible sales growth and an enviable owner base of youthful, hip, opinion-leading consumers. As of late, though, the brand has lost some of its luster. VW has lost some of its edge with those trend-setters that had flocked to the brand just a few years ago. Yet, losing that edginess hasn’t translated to massive sales gains to mainstream Middle America types.

Volkswagen is currently in a push to become a truly mainstream brand in the North America, as it is in many other parts of the world. They have ambitions to sell (combined with its sister Audi) one million units in the US by the middle of next decade. Those are some seriously lofty targets, making one wonder what steps Volkswagen is taking to achieve those goals.

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Posted by Ed Kim at 05:15 PM | Comments (0)

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May 04, 2008

Nissan GT-R and Nissan Clipper Pickup

Earlier this week, a whine of American auto journalists gathered in Cascais, Portugal to drive Nissan cars and trucks from around the world. (Maybe I should explain "whine". A "whine" is a group of journalists. Kinda like a flock, or bevy, or pod, or herd. You can guess why some PR flack came up with the term "whine"). During two days of driving, we were exposed to Nissan vehicles from Japan, North America, Europe and elsewhere. We were able to drive them on public roads through the coastal area surrounding Cascais (a resort area on the Atlantic Ocean near Lisbon) and into the hills to Sintra - a picturesque tourist haven filled with tour buses and mini cars.

Automotive Ecstasy - Nissan GT-R

But the piece de resistance was the opportunity to drive Nissan's GT-R Super Car. Couldn't drive it on public roads, but we were able to put in five laps at Circuito Estoril a famous race track near Lisbon. There were three GT-Rs to drive and one that was giving hot laps with a Nissan race driver who could really make the GT-R fly. But back to the actual experience. I teamed up with Pedro, a Portuguese driver from Sintra who demonstrated the features of the GT-R while lapping the course. The first lap was to get familiar with the course. The second was to get familiar with the car. Impressive car. Impressive driver.

For the third through the fifth laps, I got to drive and experience Nissan's $70,000 rocket ship. Check all the boxes and you can get it up to $72,000. Compared with a Porsche Turbo, the GT-R is a deal.

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Posted by George Peterson at 12:26 PM | Comments (0)

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May 02, 2008

Stick It To The Man

I remember the call like it came just last week, because it did.

“Katrina, I have a new car.”

“How exciting!”

“It…it has a stick shift.”

“Even better!”

“You don’t understand! I don’t know how to drive a stick. I need you to teach me.”

“You’ve made me a very happy woman, grasshopper.”

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Posted by Katrina Ohlemacher at 01:06 PM | Comments (0)

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