is taking the steps necessary to right its financial ship, but when a patient has this kind of issue, the cure can hurt just as much. The small, independent carmaker has been hurt by its relatively and the strength of the yen, the loss of as a noteworthy stakeholder and the resulting . Mazda is expected to post a $1.2 billion loss for its 2011 financial year, which is smaller than earlier estimates but it’s still the fourth losing year in a row and the largest in a decade.
The need to act has forced Mazda North America into a five-month plan to shed a number of its 701 employees for leaner running. Select employees will be offered a buyout package, and if voluntary uptake isn’t sufficient then involuntary dismissals will occur. The timeline begins this month with lump-sum offers, followed by layoffs at the end of May if necessary, and the stretch to August will see the transition of personnel into the restructured organization.
Mazda is also issuing shares to raise $1.9 billion in order to aid its position and get production started in Mexico and Thailand. It is also aggressively seeking a partner and considering licensing its SkyActiv technology.
Motorsports is expensive in any form, although there are ways to do it without completely breaking the bank. One of those ways is the relatively new featuring the compact offerings of , , , , and more that allows racers to compete in SCCA and Grand-Am racing on a relatively level and inexpensive playing field.
Ford is the latest to enter the B-Spec foray with an upgrade kit for the current 2011-2012 Fiesta. The package includes everything from a tow hook ($59.00) to a coilover suspension kit ($1,486.00) to make the Fiesta meet the B-Spec eligibility requirements. Racers will also need to add a variety of safety equipment like a roll cage, racing seats and so on. Ford says that it will cost just $25,000 to build a complete Fiesta B-Spec racer, including the cost of the donor car.
The first SCCA B-Spec race is scheduled for Miller Motorsports Park in Utah late next month while the inaugural Grand-Am B-Spec event is slated for Homestead Speedway in Miami the same weekend.
for more details about the Ford Fiesta B-Spec upgrade kit and a complete list of parts included in the package.
According to Automotive News, is looking to expand its dealer network in a big way. The luxury Italian automaker intends to double its dealers by the end of next year in an attempt to take advantage of a rash of new models heading for production. All told, Maserati intends to have around 500 showrooms open by the time the new vehicles roll in, and CEO Harald Wester says that the majority of the growth will happen this year. While the automaker sold just under 6,200 units last year, Wester wants to see that number swell to 40,000 in 2014 and 60,000 by 2015.
That’s a substantial jump, but with an all-new on the way as well as a production version of the not-yet-named Kubang, Wester believes the numbers are attainable. Maserati has also made it clear the company will offer an entry level sedan positioned below the big Quattroporte, which will likely do a smart job of bringing in even more customers.
That isn’t double vision you’re experiencing, it’s the Gigahorse. Said to be the “hero car” in Mad Max: Fury Road, the ride, , is a double-bodied ‘59 Cadillac with two supercharged V8s connected by a planetary gear, sitting on a monster-truck chassis and sporting a four-bladed cow catcher. With Charlize Theron as Furiosa alongside Tom Hardy as Mad Max, it’s unknown which hero the Gigahorse might serve but it’s certainly bat**** crazy enough for The Mad One.
Production is setting up in Namibia (because the Aussie outback has gotten too green, according the director), and peeks at have shown at least one other car as big as a semi, a couple of buggies and, of course, enough tractor-trailers to remake Convoy. A stuntman said the movie would have “.”
Speaking of Theron, last November George Miller said he’d (Mad Maxes 4 and 5, essentially) back-to-back and that production could take 2.5 years, so it might be some time before we see the Gigahorse in the local multiplex.
Scott Burgess, former auto critic for The Detroit News, has joined the AOL Autos / Autoblog team. He is a veteran automotive journalist with six years in Detroit covering the auto industry and a Michigan native. Each month he’ll dig deeper into the industry’s sales figures and file this By The Numbers special report.
Now that I’ve figured out how to open my email, what in fact my email address is, and where the office is, I’ve been able to catch my breath and go through the February sales figures.
Lots of people were excited over the February sales numbers, which were the highest since 2009, declaring the end of tough times and announcing only big profits ahead.
Then again, that may not be exactly true. Yes, it was a 15-million-a-year sales pace, outperforming everyone’s expectations with sales jumping 15.7 percent compared to the same month last year. But people are waiting to buy cars like never before. The average age of a vehicle on the road is over 10 years old, a trend growing for nearly 20 years, according to a Polk research firm study. Polk says that people are just hanging onto vehicles longer because they’re worried about the economy. To think about how different times were 10.8 years ago – Motor Co. had just (re)introduced the all new Fabulous , which, someone is holding onto right now.
So the depression/recession party may not be over, but times are still good. Here are the things I learned by examining the February sales figures.
1. LOTS OF PEOPLE WANT CARS
This February, cars outsold trucks 53.3 to 46.7 percent.
Throughout the industry, car sales jumped 23.9 percent compared to February last year. (Truck sales rose 7.6 percent.)
There are lots of reasons for the jump, though my gut says that people buying new vehicles are also listening to the fear mongering concerning climbing gas prices. Don’t expect either trend to end any time soon.
A more important trend might be that in February 2011, trucks outsold cars 50.3 percent to 49.7 percent. This February, cars outsold trucks 53.3 percent to 46.7 percent.
However, the big difference between 2008 and 2012, the last time gas prices skyrocketed, are that Detroit’s carmakers have a solid collection of little cars ranging from the and to the and soon-to-be released . More on the later. The key for Detroit is to see if people associate fuel efficient vehicles with those brands. When times get tough, people tend to go with the brands they assume are the most efficient, even when they’re not.
We had a feeling this was coming, but the cat’s now officially out of the bag: The is being discontinued in the United States.
The recently launched will effectively replace the CX-7 (as well as the -sourced ), meaning there won’t really be a void in Mazda’s product lineup. “CX-5 has a clearer competitive set, unlike CX-7, which was in the middle of two segments,” explains product communications specialist Beverly Braga.
Dimensionally, the CX-5 is slightly smaller than the CX-7, but actually boasts more cargo capacity and overall interior volume. With the rear seats folded, the CX-5 can hold up to 65.4 cubic feet of cargo (compared to 58.6 cubic feet in the CX-7) and has a total of 103.8 cubic feet of overall passenger space (101.7 in CX-7).
What’s more, the CX-5’s nifty new 2.0-liter Skyactiv four-cylinder engine offers than the base 2.5-liter four of the CX-7. And while we’ll certainly miss the potency of the optional 2.3-liter turbo four of the CX-7 – a version of the mill used in the – we can easily do without its fuel economy ratings of 18/24 miles per gallon city/highway (or 17/21 when paired with all-wheel drive – ouch!).
This may be the end of the road for the CX-7 in the U.S., but Mazda says that sales of the crossover will still continue in other markets. The CX-7 will officially be phased out at the end of the 2012 model year.
For sure, the is a striking machine, and even after five years on the market it continues to look sexy in all of its forms. Audi has pushed out several variants as well, including the V10-packing , the topless and track-focused .
To commemorate five years of the R8, Audi put together a short video, if only to remind us how the range-topping Audi looks even better in motion. And just to keep us thinking about its supercar, Audi finished the video with a sneak peak of the new R8, which bows later this year.
When Audi says “new,” it really means freshened, though, with rumors of a bump in power and a few design tweaks. The may not arrive until 2015, when the R8 is rumored to receive a more thorough makeover. for the video.
If ever a car made us think of mullets, Cragars, racing suits and Natty Light, this is it. And we don’t mean that in a bad way. The COPO Camaroconcept that Chevrolet last year is officially becoming a production reality for everyone; however, only 69 people will be able to own it. In celebration of the built in 1969, is building just that many of its modern drag-strip-only racer.
Two engine choices have been mentioned previously: a 427-cubic-inch V8 for AA Stock racing and a 327-cubic-inch V8 with a 4.0-liter supercharger for A Stock racing. Now, a third engine choice has been added: another 327-cubic-inch engine but with a 2.9-liter supercharger for B Stock. If you want all three engines Chevy will install one and provide the other two, all with matching numbers. Shifting is handled with a Powerglide automatic, and color schemes include Metallic White, Semi-Gloss Black, Inferno Orange Metallic and Chevy Racing Blue.
The price of entry is $89,000. How can you be one of the lucky? Chevrolet isn’t saying. An “independent third party” chose the initial buyers, but it isn’t clear how many slots are left or how they’ll be distributed. for a press release with more info.
plans on moving its ferocious exhaust note into other market segments, which we know so far include an SUV perhaps called the (nee Kubang) and a sport sedan to slot under the larger, next-generation . Internally it is said that the new sport sedan is called “Maseratina,” but an Italian publication has discovered a recent Maseratitrademark for the name “Levante.”
The Levante, if that is its name, is aimed at the thick end of the mid-level executive sedan market, meaning the and , and could be . By the way, Levante has a few meanings, the one probably meant here is “rising,” as in what the sun does. But it’s also British slang for “leave secretly or hurriedly to avoid paying debts,” which is a humorous coincidence in light of .
Italy is dealing with a financial crisis that placed it just behind Greece on the list of dangers to the stability of the euro, and with €1.9 trillion in public debt the country hasn’t hesitated to turn over its couch pillows searching for every contribution. It started a couple of years ago with the Guardia di Finanza targeting superyacht owners, and it has continued with the financial police going after supercar owners.
In December 2011, the police noted the license plates of roughly 150 Lamborghinis, Ferraris and other high-dollar cars at the Cortina d’Ampezzo ski resort and gave the registration info to the tax office. The tax office checked on the declared incomes, and in nearly 60 cases found owners that claimed to be making less than €40,000 per year – this in a country where the base price of a is €70,700. In an especially bad case, one business owner owned a but had no tax records and a wife on public assistance.
The focus on owners of expensive cars has since spread to other hotspots for the rich like Rome, Milan, Portofino and Florence, and owners have responded by selling their cars at massive discounts. There have been reports of owners so worried about getting stopped by the police that they won’t even drive them to the dealer to be traded in, but want the dealer to come pick them up. Entrepreneurs in Eastern Europe and South America are taking advantage of the clearance sales.
Tax cheats are estimated to cost Italy €120 billion per year, and the new efforts along with huge new taxes are expected to reap more than €160 billion annually.
We may not have found much to like about the redesigned 2012 sedan when , but here’s something in its favor: A Top Safety Pick award from the Insurance Institute for Highway Safety.
While the old subcompact never made it to the top of the IIHS rankings, the new sedan earned its award by scoring “good” ratings in front, side, rollover, and rear tests and coming equipped with standard stability control, according to the IIHS. The 2011 and earlier Versas only scored “acceptable” in side impact and roof strength tests.
Keep in mind that the Top Safety Pick only applies to the new sedan, as a has not yet launched. The is the same design that’s been on sale since the 2007 model year.
for a video of the IIHS side impact test on the Versa sedan.
Two months with our is enough for me to know that history will not look back kindly on this generation of VW’s long-running compact sedan. As has been covered, rather exhaustively I might add, the 2011 refresh of the Jetta brought with it a significant reduction in interior fit, finish and overall quality. Sadly, the more time you spend in the Jetta, the more its interior bits and pieces wear on your senses, as does the dour black color palette.
Perhaps the interior deficiencies of the 2011 Jetta wouldn’t be so noteworthy if hadn’t set such a heady precedent in past models, offering an upscale alternative to its competitors at a slightly higher price. As you’re likely aware, VW’s latest strategy puts its products on an equal footing with more mainstream brands while boasting a highly competitive price. Based on the brand’s , the plan is working to perfection.
We hate to harp on the point, but have to wonder if moving downmarket will have long-lasting repercussions with diehard VW fans.
Keep your eyes locked on the official for the majority of our updates, as well as the official Autoblog Twitter account (, look for the hashtag).
We weren’t exactly smitten with the when we got the chance to tae one out for a spin, thanks in part to the eAssist wizardry aimed at improving the vehicle’s fuel economy. With a lackluster drivetrain, regenerative brakes and low rolling resistance tries, the simply isn’t capable of keeping its head high among the competition. Even so, we were told to wait for the Ecotec 2.0-liter turbocharged four-cylinder set to debut this year. Now we know why. According to General Motors, the engine is good for 269 horsepower and 260 pound-feet of torque. More importantly, all that torque comes on at a very low 1,700 rpm.
The direct-injection engine helps the Malibu hit 60 mph in a scant 6.3 seconds. Trust us when we say that’s an improvement over the Eco model. While there’s no word on fuel economy, we would expect the engine to return well better than the 17 mpg city and 26 mpg highway supplied by the outgoing 3.6-liter V6, an engine that was only good for 252 horsepower.
This isn’t the first time GM has dabbled with a turbocharged four-cylinder. The company supplied buyers with a 2.0-liter Ecotec in vehicles like the Pontiac Solstice GXP, HHR SS and Cobalt SS that put out 260 horsepower. for the full press release.
Malibu’s turbo four rated at 269 HP, 0-60 in 6.3 seconds
It reported a record profit margin, but still wasn’t as profitable as its rival . According to a report in Automotive News, BMW booked an 11.8-percent profit margin, up from eight percent last year. Audi, however, managed 12.1 percent.
Both figures were calculated using the earnings before interest and tax method (EBIT).
Audi and BMW have had a blossoming rivalry since Audi began directly targeting BMW, both in the development of its products and in its advertising. The two ultra-competitive German luxury brands most famously clashed in a .
Analysts had forecast an 11.9-percent profit margin for BMW, according to AN. Despite this “mild disappointment,” as one analyst called it, BMW still led Audi and as the .
The company expects to set another annual sales record this year, besting the 1.67 million units it moved in 2011, thanks largely to it’s new-for-2012 F30 .
has filed its annual financial report with the Security and Exchange Commission, and a few important tidbits have thus been revealed. For instance, company CEO was paid exactly zero dollars last year in compensation for the role he played in rescuing Chrysler from the clutches of bankruptcy.
It’s important to note that Chrysler is no longer under restrictions from the U.S. government when it comes to executive pay since the Treasury has sold its entire stake in Chrysler. Still, Chrysler voluntarily decided to limit the compensation of some top executives. Marchionne did receive $4.5 million from , the Italian automaker he guided in its acquisition of Chrysler in 2009.
Up for an interesting exercise? Contrast Marchionne’s total compensation with that of rival CEO Alan Mulally from . Mulally , in addition to whatever he is paid in salary as CEO. Of course, Ford did not accept any bailout assistance from the government and was therefore never under any compensation restrictions, but that’s still a heck of a lot of money.
Carbon Motors, maker of the purpose-built E7 police car, won’t receive the $310 million in U.S. Department of Energy (DOE) loans under the Advanced Technology Vehicle Manufacturing (ATVM) program that it applied for almost three years ago, and said that it’s a victim of politics.
“We are outraged by the actions of the DOE and it is clear that this was a political decision in a highly-charged, election year environment,” Carbon Motors William Santana Li said in a statement. The company added that it was “actively examining its strategic and financing alternatives.”
Carbon Motors says its vehicles will save government entities money because they get better fuel economy and they’re purpose-built, meaning that factory vehicles don’t need to be retrofitted. Carbon Motors has said its diesel-powered cars may cut law-enforcement fuel use and greenhouse-gas emissions by as much as 40 percent, and that building such cars may create as many as 10,000 jobs. The car was to feature a BMW 3.0-liter turbodiesel engine.
The company says it’s received about $200 million worth of financial commitments from private and public sources and has taken orders from more than 500 law-enforcement agencies for more than 20,000 cars.
Last December, the company urging the Obama Administration to push the DOE to approve the loan.
The federal loan process has vexed other automotive companies. Bright Automotive, which was to make extended-range plug-in utility vehicles, publicly pleaded with the government to process its application for a $400 million loan in January. Last month, that company .
Meanwhile, , maker of the extended-range plug-in sports sedan , has been fielding questions about its future after the company in early February and halted production. Fisker has received less than $200 million of the $529 million loan it was slated to get from the DOE.
German automaker teamed up with fashion house Sieger to give its roadster a fitting send-off after 18 long years on the market. The duo came up with – one for each year the car was on sale – and one of those cars is currently on display at the .
Besides being the perfect ride for a University of Michigan alum, this machine, like all MF3 models, is powered by an inline six-cylinder engine. In this guise, that mill sends a total of 343 horsepower to the rear wheels.
We’re not certain how many of the 18 special edition machines are still available, but we imagine that if yellow and blue just aren’t your cup of tea, you’ve got other options. Like maybe one that’s scarlet and gray?
CEO Alan Mulally has been awarded $58.3 million in company stock for his hand in righting the automaker’s fortunes. After taxes, the CEO will receive $34.5 million. According to Automotive News, Mulally will also receive salary and benefits for 2011 on top of the his stock incentives. The stock was handed out as part of an incentive plan associated with the company’s performance in 2009. The report says Ford has earned $29.5 billion since then after suffering through $30.1 billion in losses between 2006 and 2008. All told, Mulally has been awarded $100 million in stock in the past two years.
Ford, meanwhile, says that the company believes in a compensation philosophy that ties executives to the interests of the company’s shareholders. That’s all fine and good, but Mulally’s pay scale brought the ire of the United Auto Workers last year, when UAW President Bob King said the compensation was “morally wrong.” Zing.
Morally wrong or not, it’s hard to argue with Mulally’s performance at Ford. The CEO nailed nearly all of his performance targets for 2009 and kept Ford afloat without delving into the federal government’s infamous Troubled Asset Relief Program.
While recalls are , they’re still news. And today’s announcement certainly qualifies for the modifier “big,” with nearly half a million pickups being recalled under one campaign, and 116,000 crossovers and 70,500 Camrys under another.
The 2009 is the only model year covered by the recall, while 2009-2011 Venzas are affected. These vehicles may need a replacement stop lamp switch, which may have been installed incorrectly. Symptoms include warning lamps illuminating, a non-starting condition, and the inability to shift out of Park.
The Tacoma recall covers some 2005-2009 models that may need their steering wheel spiral cable assembly replaced. Symptoms include an air bag warning lamp that does not go off after the vehicle is started, which could result in the driver’s air bag being deactivated.
In both cases, Toyota says it is “obtaining the necessary replacement parts” and owners will be notified by mail. Owners may also visit or call the Toyota Customer Experience Center at 1-800-331-4331.
General Motors wants to become the second-largest shareholder in PSA Peugeot Citroen, and the gears of are beginning to mesh. It cost General Motors $423 million to buy into PSA, and the companies will remain competitors despite lashing their rafts together.
Both automakers would like to net cost savings over the course of the initial 10-year term of the partnership by leveraging their collective purchasing power for better prices from suppliers and also sharing economies of scale. GM and PSA are also looking to create vehicles, powertrains and/or components together within the next four years. The two companies have already started work on developing a low-cost small car to sell in emerging markets, and GM is looking to hook up with Peugeot’s Gefco logistics arm, as well.
has been forced down in value by the company issuing new shares for General Motors to buy, facilitating the deal. Peugeot has also suspended paying a dividend this year to keep cash on hand, further upsetting shareholders and the market in general. Market watchers suspect that any cost savings may be slow in coming, and there’s little detail of how GM and PSA intend to address both companies’ overcapacity problem in Europe or how they intend to find compromises with the typically strong labor unions there, as well.
Still, the hopeful need only look to for an example of the potential upside. Of course, GM’s deal with Fiat, which started in 2000 and ended with a , is a reminder of just one of the ways the bloom could fall off this rose.
