DOT Blog-a-Thon
We're here this morning at the Department of Transportation's "bloggers row" -- with USA Today, the Wall Street Journal, Washington Post and a host of internet-only bloggers -- I saw one from "Fare Compare."
Transportation Secretary Mary Peters has just announced the results of two reports on the grounding of hundreds of American Airlines planes -- a carrot to convince some of the reporters to attend this event. "For the system to work and for safety never to be compromised, we need a single entity" responsible for when it is safe to fly. Peters said the department is issuing a final rule today on reporting delays on the tarmac planes face and baggage fees. "Airlines may not impose increased fees" after a passenger has purchased a ticket," Peters said. She also said the department had issued an order capping flights at Newark Liberty Airport through October 2009. She also proposed auctioning off some new slots at JFK and Newark -- roughly 90 slots out of 1,200 over a ten-year-period. Proceeds would go to congestion mitigation measures in the New York area, the most congested area for air travel in the United States
The Transportation Department recently launched its own blog fastlane.dot.gov and has been touting its efforts to modernize its communications efforts.
Europe: For Ford, it's like America without the recession
Ford has just released its April sales numbers for Europe, showing big gains on the other side of the Atlantic - particularly in France and Germany.
The Dearborn automaker said its sales in Western Europe were up 6.4 percent to 129,500 units last month, but sales in France soared 27 percent, while sales in Germany increased by more than 25 percent.
There was good news in the East, too.
Ford reported a record month in Russia, where sales climbed 17 percent to 18,200 units.
Category: Mazda
Posted by John McCormick on Thu, May 15, 2008 at 9:59 AMMazda scores well with CX-9 and 5 models
Mazda may be perceived as a second tier Japanese brand next to the giants, Toyota, Honda and Nissan, but the Ford-owned automaker is producing some models that strike me as standouts by any measure.
I'm referring particularly to the CX-9 and the Mazda5, both of which I test drove recently. On a long drive, with five on board plus two dogs and luggage, the CX-9 did a superb job.
It is refined, smooth riding, sufficiently powerful and surprisingly fun to drive. I say surprisingly because most vehicles in the same class - models with three rows of seats AND decent lugggage space (an important distinction) - are much more truck-like in their handling and general road manners, even if they are not based on a truck platform.
The CX-9 starts at around $30,000 but can climb over $40,000 with all-wheel-drive and all the trimmings that our test vehicle came with. Two irritations: no fuel economy trip computer (an inexplicable omission that afflicts other Mazda models as well) and the center seat in the second row is uncomfortable for anyone other than a small child.
Moving on to the Mazda5, this seems like a perfect vehicle for the times, with its chic hatchback (yes I know hatchback's a dirty word to Americans)styling, compact size and six-passenger (three rows of two) practicality.
Really, the Mazda5 is a junior minivan done right. It's peppy, economical and for around $22,000, good value.
Ford challenges students to develop 21st century Model T
As part of Ford's centennial celebrations for its most iconic model, the Dearborn automaker is challenging students at five different universities to come up with a new global vehicle that offers the same basic attributes that made the Model T such a hit a hundred years ago. It has to be simple, lightweight, practical, compelling and priced under $7,000. It is a global contest, with students at the Lawrence Technological University in Southfield and the University of Michigan -Dearborn competing against their peers at the Art Center College of Design in Pasadena, Calif., Aachen University in Cologne, Germany and Deakin University in Melbourne, Australia, for $25,000 in scholarships.
"The Model T is a true product of an engineering genius. Although simple and practical, it changed the way we live, work and play and met the needs of millions," said Paul Mascarenas, Ford's vice president of engineering for global product development. "Through this challenge we're looking for the students to push the boundaries and deliver an alternative transportation concept for tomorrow - and beyond."
Ford gave each university $75,000 to help support the development of each team's concept.
Each entry must accommodate at least two passengers. Each design must address issues of assembly and sustainability. And each vehicle must have a range of at least 200 kilometers (about 125 miles). The students have until Sept. 1 to submit their proposals, which will be judged by Mascarenas and other Ford executives. Scholarships will go to the teams that offer the two best concepts.
Category: Ferrari
Posted by Neil Winton on Tue, May 13, 2008 at 7:06 AMFerrari Shows Pictures of New California Sports Car
Ferrari has published these first photographs of its new California sport car.
The Ferrari California will be available exclusively as a convertible with a folding hard top. Both chassis and bodywork are aluminum, in line with the rest of the current range. The California will be powered by a new 4.3 litre V8 engine with direct fuel injection generating 460 bhp at 7,500 rpm, blasting the car from rest to 60 mph in under 4.0 seconds.
The California uses a 7-speed dual clutch automatic transmission that reduces fuel consumption to about 17.5 mpg. There's a new multilink rear suspension system. The Ferrari California is also equipped with the F1-Trac traction control system which made its debut on the 599 GTB Fiorano. The Brembo brakes feature carbon-ceramic material discs as standard.
The car will be officially unveiled to the public at the Paris International Car Show in September.
No details yet on price.
Category: Volvo
Posted by Neil Winton on Fri, May 2, 2008 at 1:20 PMFord Has No Plans To Sell Volvo
LONDON - Ford is not about to sell Volvo.
Ever since Ford Motor Co sold the British components of its Premier Automotive Group - Jaguar, Land Rover and Aston Martin - to raise cash to finance its recovery programme, the future of its Volvo subsidiary has been questioned.
Jerry York, who represents Kirk Kerkorian's Tracinda Corp which recently made a cash tender offer for up to 20 million Ford shares, said earlier this week that in his opinion he would sell the Swedish upmarket pretender.
"There's no rational reason for keeping Volvo or Mercury," York told Automotive News.
Lewis Booth, Ford of Europe chairman, told a press conference here on Friday that Volvo was not about to be put on the auction block.
"Volvo is not for sale and we are about improving the business," Booth said.
Volvo posted a pre-tax loss of $151 million in the first quarter compared with a profit of $94 million in the same period last year. Volvo's first quarter revenues slid to $4.2 billion from $4.6 billion.
"Volvo had a very tough first quarter and like all the brands was hampered by raw material costs and currency. A lot of Volvos are being sold in the U.S. market and we all know where the dollar is," said Booth.
Investment banker Merrill Lynch reckons Ford could raise at least $6 billion if it sold Volvo.
"Although Volvo was and should recover to be a profitable car company, we believe that it may be sold in the not to distant future as management focuses on consistent profits in core brands, even if the top line is smaller. Depending on profit recovery, we believe that a Volvo sale would likely raise at least $6 billion," Merrill Lynch said in a report last week.
Booth said Volvo was much more closely integrated with Ford production than Jaguar and Land Rover.
"We want to be careful with Volvo, we don't want to rush it," he said.
Ford bought Volvo from its Swedish owners in 1999 for $6.45 billion.
Booth said he was excited about new Volvo products like the XC60 (picture) compact SUV, which looks like a scaled down version of the highly successful big XC90. The XC60 will be available in America early next year. Sales begin in Europe this summer. The XC60 will be the first car to offer a safety system which helps avoid low-speed accidents common in city driving. The system automatically brakes the car if the computer detects an imminent front-impact.
Analysts react cautiously to Ford's earnings surprise
Ford has beat Wall Street's expectations pretty much every quarter since Alan Mulally took over as CEO, though yesterday's surprise was bigger than most. But the rocket-like performance of Ford's shares Thursday, followed by today's big sell-off, has prompted most analysts to approach the news cautiously.
Here's a survey of some of the reports released today:
Itay Michaeli of Citigroup characterized the automaker's progress as "too far, too fast" and reiterated his "sell" rating:
"Ford continues to demonstrate progress in Q1 2008, but a low quality beat and unsustainably high margins abroad did not compensate for the challenges ahead," he wrote in a note released this morning. "Ford's risk-reward proposition appears outright unattractive. At these levels, we judge that the stock is not only pricing in a return to solid profitability in North America, but also sustainability of robust margins in South America and Europe, along with a profit recovery at Ford Credit - scenarios that remain optimistic at best."
Others, like Brian Johnson of Lehman Bros., struck a more balanced tone in their analysis:
"It is clear that Ford is progressing in its turnaround. We detected mgmt flexibility and execution to adjust to changing market conditions (e.g., finding new material savings to offset commodity increases), he said. "However, we expect pressures to mount through 2H08 and 09 from mix shift away from pickups/SUVs, soft pricing and rising commodity cost. While we forecast a profit in 09 and 2010, and have raised our PT to $6.50, we do not given the headwinds see enough earnings power mid-term to support the recent run up."
Bear Stearns' Peter Nesvold, who takes a near-term approach to the auto industry, actually downgraded Ford to "underperform" because of the stock's volatility:
"We continue to believe that Alan Mulally & Co. are doing a terrific job with the turnaround," he said. "However, we need to separate the company from the stock; we recommend using this rally to prudently take near-term profits."
Minivan sales on the rise*
Minivan sales are up 40 percent *, according to Chrysler LLC.
I use the asterisk to clarify that we're talking about Chrysler built, long wheel base minivans, only sold through retail channels.
If you compare all Chrysler vans sold, regardless of wheel-base or channel, sales are down 25 percent for the first three months of this year, compared to 2007.
Chrysler shared this information in their media blog, The FireHouse
What do we learn form this:
1. Chrysler is getting a little annoyed with Ford's George Pipas and others telling the media that the minivan is dead - as Ford rolls out a fleet of crossovers.
2. The minivan market is shirking, but it's likely turning into a more profitable segment. (I didn't say niche.)
It's better that Chrysler sell its new, long-wheel base only vans, for a tidy profit at dealerships, as they say they are; rather than depending on break-even sales to rental car companies and those who want only the cheapest van in the market.
The question still remains though, could Chrysler maintain or improve those profits with a single van?
GM slips in Fortune 500
General Motors Corp. has fallen one more notch on the iconic Fortune 500 list of America's top grossing corporations.
The automaker spent nearly half a century atop the list, compiled annually by Fortune magazine, before being knocked off its perch in 2001 by Wal-Mart Stores and Exxon Mobil Corp..
In the list released today, GM is No. 4 for the first time behind Wal-Mart, Exxon and another oil company, Chevron. Last year, Chevron was fourth on the list.
The California-based oil company posted record profits of $18.6 billion last year. GM, meanwhile, has been grappling with a sales slide in the critical U.S. market and competition from leaner foreign-based rivals. Revenues were down about 12 percent in 2007 to $182 billion.
Ford Motor Co. held its No. 7 ranking. Delphi Corp. slid to 83 from 77.
Category: Audi
Posted by Neil Winton on Mon, Apr 21, 2008 at 9:33 AMQuestion for Audi RS6 Avant Owners - 155 mph or 175?
LE CASTELLET, France - Be thankful to Audi, the German premium car manufacturer owned by Volkswagen, for saving you from an agonizing decision.
Across Europe, buyers of the rip-roaring new Audi RS6 quattro Avant, are facing up to a key judgment about an important feature of the new car. Should they opt for a speed limiter which cuts off the power at 155 mph, or should they let it zoom on to 175 mph before the computer does a Roberto Duran and says "No Mas".
Americans will be spared this dilemma because Audi has decided that the RS Avant, the most powerful production station-wagon in the world, will not be available in the U.S. The numbers likely to be sold do not justify the expensive process of meeting U.S. regulations. That, and the fact that the high value of the euro against the dollar makes it all but impossible for German manufacturers to make a profit on anything they sell in America.
This is what you will be missing.
The four-wheel drive RS6 has a 5.2 litre 572 bhp V10 engine boosted by two turbo chargers which uses a direct injection petrol system. The power is split 40:60 front to rear. This gives the understated looking load-lugger amazing acceleration, on a par with low-slung Italian two-seaters. The RS6 blasts from rest to 60 mph in 4.6 seconds, and could power on to 175 mph, if you are in a part of Germany which still has no speed limit. The engine is based on a motor used in the Lamborghini Gallardo. Audi owns Lamborghini of Italy.
The media was introduced to the RS6 at Audi's spring testing centre at Le Castellet, which looks down on the Mediterranean from about 10 miles up in the mountains. The naval port city of Toulon is about 15 miles to the east, and Marseilles 30 miles west. Audi says the RS6, which has a six-speed tiptronic automatic transmission, is in an exclusive club of cars producing more than 570 bhp. This includes the Bentley GT Speed, the Ferrari 599, and the Lamborghini Murcielago. Unlike these exotic supercars, the RS6 will not only blast you along like a racing car, but will also carry about 5 refrigerators and a wardrobe, if you fold the seats down for maximum lugging space.
Audi RS 6 quattro Avant - Engine 5.2 litre V10, power 572 bhp @ 6,250 rpm; torque 480 lb foot @ 1,500-6,250 rpm; 0-60 mph 4.6 seconds; max speed 175 mph (limited); fuel consumption average 16.8 mpg; price-from $155,460 after taxes (not available in U.S.)
