Zest Minicar On Sale March 1
The Japanese market has seen variations on the tiny fuel-sipping car theme for many years. In the USA, we may refer to them as minicars. In Japan this class is called "kei cars". We at VehicleVoice and AutoPacific can fondly remember the Honda City that came with a diminutive motor scooter in the cargo area circa the mid-1980s. Never made it to the States except as Honda test cars or gray market one-offs. The scooter was its claim to fame, but in American traffic a car the size of a Japanese kei car is just a bit frightening. But Japanese car companies need to compete with these types of cars in their home market where where are substantial tax benefits.

Honda introduced its new Zest kei car on March 1 in Japan. In Japan, the Zest kei car class is comprised of cars that meet certain exterior and engine size requirements. Among the requirements are a cap for overall length set at a 3395mm and a power output cap of 64HP. These small cars, while they fall in and out of fashion globally, are in part the result of government restrictions and manipulations in the Japanese economy. High taxes and government rules make kei cars attractive to many Japanese consumers, a situation that does not exist in the States. While on paper, these small cars sound like a terrific solution for U.S. buyers looking for ultra-economic transportation, they are too small to sell in sufficient numbers in the States to be profitable.

The Zest measures less than 134 inches long, though there is a terrific amount of space inside. While in Japan the segment with cars this size is significant, the Zest is a full sixteen inches shorter than the three-door Toyota Yaris hatcback. Other cars that U.S. buyers consider small have an overall length even further from the Zest, and are pictured below. Mazda's MX-5 convertible is almost 156 inches long, Scion's xB is 155 inches long, Toyota's Yaris sedan is nearly 170 inches long, and Honda's Fit is more than 157 inches long. These examples seem to be about as small as the North American buyer is willing to go, despite any inherent logic that a small city car may have in terms of inexpensive operation and a usable size for city driving. The fact is that we do not need cars as small as the Zest in the USA, and so far, it doesn't seem that Americans want them, either. So, admire from afar kei-car enthusiasts! You'll have to wait til your next trip to Tokyo to see the Zest in person.

Continue reading "Some Zest for Honda's Home Lineup"

Posted by Stephanie Brinley at 02:55 PM | Permalink | Comments (2)

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Automotive researcher AutoPacific has released the results of its comprehensive study of the Baby Boomer automotive consumers. The conclusion from AutoPacific's Baby Boomer Consultancy is that automotive marketers are paying too much attention to youth marketing at the expense of a huge potential with the Baby Boomer market.

Baby Boomers – now aged 41 to 60 - are the most affluent Americans, with three-quarters of the nation's financial assets and $2-trillion in disposable income annually. Boomers control more than 50% of all discretionary income and will become more affluent as they inherit a great amount from their parents.

Boomers account for more than half of U.S. spending, and the older they get, the deeper their pockets. Boomers will keep spending.

The Boomers' household fleets say it all. Boomers likely have an SUV, sports car, or a classic in their garage. The average American household purchases 13 cars over a lifetime. Seven vehicles are purchased after the head of the household turns 50. AutoPacific research shows 50% of Boomer households already owns 3 or more vehicles. Many Boomer couples will add a third vehicle to their family fleet that will be “aspirational”, displaying their personal style.

Baby Boomer Households – Number of Vehicles

1-vehicle: 12%
2-vehicles: 38%
3-vehicles: 27%
4-or more vehicles: 23%

AutoPacific research indicates Boomers will maintain their pace of car buying with 54% of Boomers expecting to keep their vehicle 4 years or less, 26% 3 years or less.

Baby Boomer Households – Expected Length of Ownership

2 years or less: 10%
2 to 3 years: 16%
3 to 4 years: 28%
More than 4 years: 46%

AutoPacific's conclusion is that marketers should focus on Boomers – where the money is and where there is willingness to spend it!

Continue reading "AutoPacific Releases Results of Study on Baby Boomers"

Posted by George Peterson at 09:37 AM | Permalink | Comments (1)

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Pricing for 2007MY Suburban Follows Tahoe with a Drop in MSRP
According to an announcement from Chevrolet, a comparably equipped 2006 Chevrolet Suburban LS was $2550 more expensive than a 2007MY LS. This may well be true for the new Suburban's MSRP, but the transaction price for the outgoing SUV was far lower than MSRP, sometimes varying appreciably from month to month. GM's new approach to pricing is logical, whether customers can be weaned off incentives or not. If your vehicles almost never sell for full price and there is a significant difference between transaction prices and MSRP, the MSRP is clearly set above what customers are willing to pay. Moving MSRP and transaction prices closer together, in the long term, should improve the image of the brand. Some buyers will feel smart for getting the "great deal" incentives can appear to be, but others are turned off by constant loud and dramatic incentives.

While a 2006 Suburban 1500 4WD started at about $42,500, the LTZ package (which included the 6.0L engine) also added almost $11,000 to the price. For 2007, Chevrolet says the 4WD LTZ starts at $48,455. Though the trim package components may have shifted a bit, both LTZs get the bigger engine and there is a price drop between the models.

The reduced pricing strategy is supposed to help Chevrolet and GM reduce their dependence on rebates, incentives, a deal-of-a-lifetime sale periods, like last fall's Employee Pricing for everyone and even the $5500 hundred sitting on the hoods of 2006 Suburbans through at least the end of February. Dropping the price by something in the neighborhood of $2500 can earn some goodwill as well as setting themselves up for potentially smaller rebates if they are needed down the road. Whether this really works with customers now conditioned to blow-out sales and large incentives remains to be seen.

Read on for the official Chevrolet 2007 Suburban pricing release.

Continue reading "2007MY Chevy Suburban Continues Value Pricing"

Posted by Stephanie Brinley at 02:50 PM | Permalink

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Aston Martin May Beat Porsche Panamera to Market
At the 2006 North American International Auto Show, Aston Martin unveiled a concept called Rapide. Within a month or so of the introduction, suppliers confirmed to Automotive News reporters production is being planned for summer 2007. Aston could bring out its new sports car two model years ahead of the Porsche Panamera, due in 2009CY for 2010MY. Reports are that Aston is planning to build 3,000 to 3,500 units annually, compared with the Porsche's 20,000-unit target. Comparing the Porsche to the Aston Martin is a touch misleading, however, as the Aston is likely to command a transaction price comfortably above the Porsche. AutoPacific and VehicleVoice correspondents were on hand when the Rapide was unveiled complete with a designer pooch. We'll take the car, you can have the dog.

The addition of the Aston Martin Rapide will give luxury-minded buyers several four-seat, grand touring entries to choose from by the end of the decade, whether two doors like the BMW 6-Series and Bentley Continental GT or four doors like the Mercedes-Benz CLS, Porsche Panamera, and Aston Martin Rapide. Though not necessarily direct competitors, entries like these similar philosophies, with seductively gorgeous exteriors, pampering and sumptuous interiors, more power than you ever need, and a driving experience tuned for the grand touring side of life as much as the sporting side. These aren't racing cars barely dressed for the street like a Dodge Viper or Porsche Carrera GT, though they have enough power to win most stoplight challenges.

Continue reading "Aston Martin Rapide Looks Set for Production"

Posted by Stephanie Brinley at 01:42 PM | Permalink

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Welcome to "Let's Talk Cars"


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AutoPacific VP and Industry Analyst Jim Hossack weighs in on the current state of fuel prices, what Americans are thinking, and what the near future holds with regard to fuel and alternatives. Hossack's comments summarize the results of the latest VehicleVoice Fuel Price Impact Survey conducted by the VehicleVoice automotive internet research panel. Next, AutoPacific Founder and CEO George Peterson explains the 2006 Future Vehicle Survey - an important program that helps automobile manufacturers learn about the needs of consumers. Learn how you can participate in the Future Vehicle Survey. Audio Podcast.

Show Rundown

00:50 Fuel Crisis: The latest on fuel, pricing, and the needs of Americans at the pump

10:18 2006 Future Vehicle Survey: George Peterson, VehicleVoice

Posted by dbarrett at 11:34 AM | Permalink | Comments (0)

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I learned how to drive with a manual transmission. My instructor, a former racing driver turned attorney, explained how important it was to have control over the gears and to not assume anything - or to leave chance to an automatic transmission. I loved shifting when I started driving, and yes, it did make me feel as if I had more control over the vehicle. Once, during a rainstorm, my "total control" did put me (aged 16) and my BMW 1602 askew in somebody's front yard. With that exception, I have always enjoyed driving a car with a manual transmission. I must be lucky, as my wife feels the same way.

A Typical 6-Speed Stick

Yet, manual transmission cars have been on the decline for many years, notably here in America. Drivers here seem to prefer the lack of exercise required when sitting on the highway or freeway with 200,000 of your closest neighbors sharing the same lane and destination. And recently, when searching for a new car, I've come across more and more situations where a manual transmission just wasn't available.

Posted by dbarrett at 09:33 PM | Permalink | Comments (1)

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The Opportunity

President Bush spoke about our national addiction to imported fuel in his 2006 State of the Union address. Every news magazine has had an article (or many) about E85 ethanol. So is this the holy grail or not? The answer appears to be a definite "maybe".

It looks like expanded use of E85 would reduce air pollution, reduce our financial and strategic dependence on imported fossil fuels, extend the expected life of the world's fossil fuels, maybe even reduce the likehood of man-driven global warming. The vehicle technology already exists, in fact millions of E85-compatible vehicles are already on the American road. So what's the hold up?

The core problem is that only about 600 of our 169,000 gas stations offer E85. And why is that? Essentially one reason: because E85 (currently) costs more per gallon to make than conventional gasoline, and because expected fuel economy is worse than with conventional gasoline. The actual cost per mile driven is actually higher than with conventional gasoline. Therefore demand is low, and as a result of low demand, there is low supply and limied distribution.

Vehiclevoice.com Survey results:

Will the public be willing to pay more for a cleaner environment and reduced dependance on Middle East oil?

A recent survey by our VehicleVoice.com Internet research panel indicated that:

- 41% of motorists would be willing to pay more for fuel if it was made in the US
- 40% would accept fewer miles per gallon if their fuel was American sourced
- 39% agree that higher fuel prices would be good for America

Well, that's not proof, by any means. But it does suggest that there is a growing consensus that many Americans, perhaps not the majority, but a significant percentage nevertheless, would be willing to make a personal financial sacrifice for a better environment and reduced dependence on Middle Eastern oil.

There is an increase in vehicle cost for E85 compatibility - estimated at about $200 per vehicle. Not much compared to the incremental cost of a Hybrid for instance. And there is no reason why hybrids could not run on E85 instead of 100% gasoline. In fact, Ford showed an E85 compatible Escape Hybrid at the 2006 Chicago Auto Show complete with Kermit the Frog who, of course, contends it is great being Green.

And General Motors introduced an E85 Chevrolet Avalanche to go along with a wide-ranging ethanol strategy for 2007 and beyond.

The answer isn't at all clear, but it is begining to look like ethanol's cousin, Bio-diesel may also have a real role in our future. And perhaps, with economies of scale, that cost per mile penalty can be reduced with more research and development, and greater bio-fuel production, distribution, and awareness.

Continue reading "E85 - the Holy Grail...or Not?"

Posted by Jim Hossack at 10:33 AM | Permalink

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Editor's NOTE: The Multi-S was launched as the Kia Rondo late in 2006.

Small Minivan Explores Reaction at Best-Attended U.S. Auto Show
As the Chicago Auto Show has a reputation for having the highest attendance figures of all U.S. auto shows, what better place to test a possible new people mover? While this concept was first shown last September on Kia's stand at the 2005 Frankfurt auto show, Chicago marked its first North American appearance. AutoPacific and VehicleVoice contributors were on hand at both showings, and can promise that there were no real changes between Frankfurt and Chicago, aside from Kia showing a gasoline engine in the States and a diesel in Frankfurt.

In Korea and Europe, where North American minivans are too large and the exception rather than the rule for family transportation, Kia sells a minivan smaller than the Sedona. The second-generation of this vehicle is being developed under the codename UN, and it is expected to join the U.S. lineup before the end of 2006. While the final verdict on the Kia's U.S. nomenclature is not in, Multi-S is reportedly in the running.

The UN will be a more modern and fully featured than the example currently sold in international markets, making it more competitive in Europe as well as giving it a chance in the States. The concept dimensions indicate a vehicle slightly bigger than the Mazda5 and that the U.S. version is likely to get a four-cylinder gasoline engine mated to a five-speed automatic transmission.

Kia Motors America Vice President of Marketing Ian Beavis characterized Multi-S competition as "drawing from station wagons, vehicles like the Mazda5 and even small SUVs. The Multi-S did pretty well against the new Toyota RAV4 in research."

Continue reading "Kia Multi-S to Join U.S. Lineup as Kia Rondo"

Posted by Stephanie Brinley at 11:54 AM | Permalink | Comments (0)

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GTO Nameplate Returns to the Shelf. According to Automotive News, when Pontiac's 2007 model year lineup comes out, the GTO will not be included. Sources told Automotive News that the company decided to drop GTO rather than re-certify for 2007, an expensive process. At the moment, there are no specific plans for a replacement, though certainly there are those among Pontiac's staff that will consider the possibility in the future and Pontiac will not comepletely rule out another sporty car down the road. If you want one, GM says they will bring another 10,000 to 12,000 units into the country.

AutoPacific and VehicleVoice correspondents had the opportunity to drive both versions of the GTO over its short three-year lifecycle, the 350HP 2004 version and the 400HP 2005 model. The 2005 model won AutoPacific's vaunted Vehicle Satisfaction Award edging out the Ford Mustang for top honors much to the consternation of Ford's upper management.

The GTO is fun to drive and a solid overall package. In large part because of the GTO badge, the car suffered much criticism for bland and boring styling. Labeling it GTO raised expectations to a level that the styling did not meet. The lesson to be learned here is that bland is worse than ugly for a sporty car, particularly one that intended to play on nostalgia for a fondly remembered, aggressive car like the original GTO.

Continue reading "Pontiac Dropping GTO for 2007"

Posted by Stephanie Brinley at 09:19 AM | Permalink | Comments (7)

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Caliber Gets 125HP per Liter
Introduced with the help of Dodge NASCAR driver Kasey Kahne at the 2006 Chicago Auto Show, about the time standard models began arriving at dealerships, the SRT Group introduced its take on the Caliber, and your faithful VehicleVoice and AutoPacific correspondents were on hand for the introduction.

Along with developing the current Viper RT/10 coupe and convertible, SRT has been hard at work since it was formally created in 2002, adding horsepower, suspension, braking, and interior/exterior styling cues for top-line takes on models including the old Neon, Crossfire, 300C, Magnum, Charger, Grand Cherokee, Ram, and now Caliber. SRT is made up of a group that is passionate about what they do, and it shows in the lineup.

While the standard Caliber tops out at 172HP, the Caliber gets a turbocharged version of the 2.4L DOHC 16v four-cylinder engine tuned to 300HP and 260 lb-ft of torque. SRT promises a sub-six-second 0-to-60-mph time. The engine is mated to a standard six-speed manual transmission, but the package is offered only in front-drive form. Pricing has not been announced, but executives told us that this decision to go front-drive only is in part to keep the Caliber's price reasonable. Among the goals of SRT is to bring their benchmark performance models to market at the lowest possible price, and adding the AWD system would drive the Caliber SRT4 price too close to that of entries like Subaru WRX STi and Mitsubishi Lancer Evo IX. Both of those cars require an investment of $32,000 or more.

Continue reading "SRT4 Raises Dodge Caliber to Another Level"

Posted by Stephanie Brinley at 07:22 AM | Permalink | Comments (0)

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Titan Onyx Suggests Future Personalization Options
At the 2006 Chicago Auto Show, alongside and overshadowed by the updated 2007 Quest, was a Nissan Titan concept called Onyx. Following the press conference and walking the show amongst other industry watchers and journalists, AutoPacific and VehicleVoice correspondents noticed a lack of activity around the Onyx. With any luck, the car-buying public that the Chicago show truly caters to took more notice the following week.

Nissan created the Onyx concept to gauge reaction for potential future special edition packages or perhaps dealer-installed accessories. The idea is not a bad one, as the other truck manufacturers offer various add-ons, and there is a perception that Nissan buyers may be more into personalizing their ride than some other makes. Nissan has a strong reputation among the tuner crowd, and if they stay loyal to the brand for a truck, they are likely to take their penchant for personalization with them.

Nissan is committed to expanding the Titan lineup, and though the Onyx was only a very small step in that direction, heavy-duty and diesel variants of the Titan will likely arrive before the end of the decade. Showing the concept Titan also likely endeavored to generate some attention for Nissan's full-size pickup at the show, where it was heavily overshadowed by the unveiling of Toyota's next Tundra.

Continue reading "Nissan Titan Onyx to Expand Titan Range"

Posted by Stephanie Brinley at 12:24 PM | Permalink | Comments (0)

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