General Motors Chairman & CEO Ed Whitacre Looks Back & Forward

Ed Whitacre, a 68 year old Texan who spent 44 years at AT&T (previously SBC) serving as its Chairman for 18 years before retiring in April of 2007, took over as Chairman of General Motors in June 2009 after receiving a call from the Treasury Department. After initially telling them "no", he thought that having "always been a GM owner", he should reconsider. Whitacre told the audience at the Center for Automotive Research Management Briefing Seminars in Traverse City that "I took this job out of a sense of duty – the country put a lot of faith in GM and in the industry, and I wanted both to succeed."

Here are some of the highlights of his remarks which took us through the turnaround from bankruptcy to GM's first quarterly profit since 2007 in the first quarter of 2010 and today's renewed demand for its vehicles:

"First, we clarified the company’s focus. Today, GM has a clear and simple vision:  “Design, build, and sell the world’s best vehicles.”  That’s what we do… that’s all we do."
"Second, we reinvigorated the team and restructured the organization."
"In addition, we have brought new blood and fresh thinking into the management team … while retaining the auto expertise that is so important to our success.  It has also allowed us to open up opportunities for many of our younger talents – Mark Reuss running our North American team is a great example."
"Third, we’re moving faster and smarter. We’re changing the way we do business at GM – doing all we can to make smart decisions and make them fast… while clearing the underbrush that can impede good thinking."
"In June, for example, we launched a new subsidiary called GM Ventures to identify and develop new technologies."
"The fourth key to our ongoing turnaround – we’re making vehicles that people just can’t wait to buy.
Of course, as I’ve come to learn, it takes years to bring a new vehicle to market.  So we owe a debt of gratitude to the people who had the foresight to develop these awesome cars and trucks – people like Rick Wagoner, Fritz Henderson, Bob Lutz and others.  And I’m happy to report that the products we have in the pipeline are just as exciting as the ones we’re selling now.
So, that’s the foundation for GM’s turnaround."
"We want to reshape the company and help change the industry in the process.  And the opportunities for doing that are boundless… for all of us.  Let me give you three of my personal favorites:
First, is the industry’s growth potential.
In China, GM’s first half sales this year were up almost 50 percent compared to 2009.  That’s one reason we’ll roll out more than 10 new or upgraded products in China this year alone. GM is selling more vehicles today with four brands than we were last year with eight, which is very positive.
The second big industry opportunity we can all be excited about is technology. That’s why we’re so excited about the new Chevy Cruze Eco, which will get 40 mile-per-gallon on the highway.... We have aggressive plans to expand the number of hybrids and plug-in vehicles in our portfolio… and I know many of you are working on the same challenges at your companies.  The opportunities are huge… and we’re just beginning to see the possibilities.
The third opportunity is bringing innovation to how we market our products.
Last week, for example, Chevrolet became the first brand to pilot an app for the iPhone and iPad that allows salespeople to sell vehicles anywhere, anytime...."

"In fact, today, I’m pleased to announce that we concluded our dealer arbitration process, paving the way for the new GM dealer network. Starting November 1, we will have a network of about 4,500 U.S. dealerships in place to sell and service our Chevrolet, Buick, GMC, and Cadillac brands… and it will be the best network in the business. The GM dealer network will be the right size… and have the right dealers… to make our customers happy and keep them coming back.  Our network will be about 25 percent smaller than it was, but it will still be the nation’s largest.

In the mean time, we’ve embarked on what we believe is the largest facility makeover the industry has ever seen.  So far, we’ve updated more than 300 facilities; we expect to update more than 1,000 by the end of this year. For the first time in a while, our dealers are fully devoted again to what they do best…focusing on our customer.

So, GM has come a long way in a year’s time…and so has the industry.  In fact, I’d like to congratulate Chrysler and Ford for their progress during this period…as well as the suppliers, who toughed it out with all of us. Now, we’re on our feet again… getting into fighting shape… and taking the fight back to the marketplace."

In the Q and A that followed, Whitacre repeated that the government bailout loan has been paid back but they, the Government/taxpayers, still have a lot of equity/ownership in GM. He expects the upcoming IPO (Initial Public Offering) of stock to be the biggest in U.S. history. He doesn't like being called Government Motors saying "it turns off customers". He said "the timetable (for the IPO) is not there yet" with an S1 report still needed to be filed with the SEC.

Whitacre is optimistic that things are improving with dealers apparently screaming for vehicles and GM working hard to produce them. He says next week's second quarter earnings release will surprise people on the heels on GM's first quarter profit. Whitacre admitted that he now has his first Corvette and "no speeding ticket". He concluded by saying an all-new, redesigned Chevrolet Corvette will be coming soon.

Whitacre's rare speaking engagement seemed to impress the crowd. His delivery was simple and stated a straight forward mission and plan of execution, but keep mind this gathering depends on GM's success and survival, as do all us U.S. taxpayers.

Toyota's Steve St. Angelo: "Extremely Focused on Improving Quality"

Steve St. Angelo, Toyota's chief quality officer for North America, claims that failing to get an acting role on the TV show Welcome Back, Kotter in 1970's forced him into the automotive industry. Fast forward to today when Toyota has been raked through the media and Washington Congressional hearings over floormat/pedal interference, unintended acceleration and sticky gas pedals and St. Angelo delivers a passionately emotional speech to an automotive audience saying that after rigorous internal and third party testing "there is nothing wrong with the electronics" and that's with 40 million Toyotas on the road today. Using Exponent, a company with scientists and engineers, to test every electronic throttle control system, past and present, St. Angelo says they "can't find anything" that would have caused the reported incidents that have dominated news headlines for nearly a year. Since March, in an effort to "go to the problem and see it for yourself" St. Angelo has been traveling to Japan every other week to Toyota's proving grounds where vehicles are put through magnetic fields to check for potentially damaging effects.

Nevertheless, St. Angelo reiterates that Toyota never comprises safety in its vehicles and needs to listen to its customers to make improvements to quality. St. Angelo says Toyota is doing more testing in the development stage before mass production begins, has 1,000 more engineers dedicated to quality assurance, six more offices related to quality and "smart" expert response teams who evaluate quality and go into the field to inspect vehicles. He says brake override will be standard by the end of the year. He points out that the industry will have 20 million vehicles recalled this year, the most since 2004.

Despite the recalls and economic recession, Toyota made no layoffs worldwide, including among its 35,000 employees in North America. Toyota has a $23 billion investment in 14 U.S. plants including Mississippi that will produce Corollas, bringing production of that popular car back to the U.S. St. Angelo says that 200,000 Americans have jobs because of Toyota. He recommends reading One Team, All Levels, an employee-written book on the Toyota culture.

The message is that Toyota is doing all it can do about quality and is being transparent with the results. Government findings and expert panels all seem to conclude that driver error is the culprit and manufacturers are making fixes to compensate for them plus adding many new safety systems. At the CAR Management Briefing Seminars in Traverse City, Ford, for example, said it's reducing its supplier base from 3,000 to 750. With that many suppliers and thousands of vehicle parts it's truly amazing that more doesn't go wrong. The bottom line is that these are complex vehicles with drivers who need to be better educated and tested to operate them.

July 2010 Auto Sales Rise vs. 2009 Cash For Clunkers Surge

General Motors July sales for Chevrolet, Buick, GMC and Cadillac increased by a combined 25 percent to 199,432 units. Year-to-date total sales for GM’s four brands have risen 31 percent to 1,269,009 units, while retail sales for GM’s brands have risen 18 percent.

Ford, Lincoln and Mercury dealers delivered 170,208 new vehicles in July, a 3 percent increase versus a year ago, when “Cash for Clunker” sales started to surge. Year-to-date sales totaled 1,151,560, up 23 percent.

Toyota Motor Sales reported July sales of 169,224 units, a decrease of 6.8 percent from the same period last year, on a daily selling rate basis. On a raw volume basis, unadjusted for 27 selling days in July 2010, compared to 26 selling days in July 2009, TMS sales were down 3.2 percent compared to the same period last year. Year-to-date, Toyota has sold 1,015,766 vehicles, 7.5 percent more than in the first seven months of 2009.

American Honda posted July sales of 112,437 vehicles, a decrease of 5.6 percent and year-to-date sales reached 706,346, an increase of 9.4 percent versus last year.

Chrysler reported U.S. sales of 93,313, a 5 percent increase compared with sales in July 2009. July represents the fourth consecutive month of year-over-year sales increases. Year-to-date Chrysler has sold 620,532, an 11 percent increase.

Nissan North America reported July sales of 82,337, an increase of 14.6 percent compared with July 2009. Year-to-date Nissan sales are 522,669, up 24.6 percent.

Hyundai Motor America announced sales of 54,106 vehicles in July, a 19 percent increase compared with the same period a year ago.  This represents an all-time sales record for the month of July and marks only the fourth time Hyundai has surpassed 50,000 units in a month. Year to date, Hyundai sales are 309,888, up 24 percent versus 2009, a performance that represents an all-time record for the first seven months of any year.

Kia Motors America announced record July sales of 35,419 units, a 20.7 percent increase from July 2009 with year-to-date sales of 205,488 up 16.3 percent.

Volkswagen of America reported July sales of 23,880 total units, for a 16 percent increase over July 2009, and its thirteenth consecutive month of sales growth.  For the year-to-date, Volkswagen's sales have risen 27.5 percent versus the same time frame in 2009.Separately, Audi recorded 7,817 sales, a 22 percent rise compared to July 2009 and for the first seven months of 2010 sales are 56,257, a 27.1 percent increase.

Subaru of America reported July sales of 23,983, a 10 percent gain over July 2009 and year-to-date sales are 149,943, a 30 percent rise over last year's record pace.

The BMW Group in the U.S. (BMW and MINI combined) reported July sales of 23,390 vehicles, an increase of 10.1 percent from the 21,253 vehicles sold last year.  Year-to-date, the BMW Group reported sales volume of 144,975 vehicles, up 6.8 percent from last year.

Mercedes-Benz USA reported July sales of 18,048 vehicles, an increase of 11.2 percent. On a year-to-date basis, the company sold 125,015 new vehicles, an increase of 23.4 percent over last year.

Mazda North American Operations reported sales of 20,732 vehicles, an 8.9 percent increase. Year-to-date sales through July stand at 136,451, and are outpacing last year's sales at this time by 14.3 percent.

Mitsubishi Motors North America July sales of 5,648, an increase of 16.5 percent compared to July 2009 and Mitsubishi’s highest monthly sales total since August 2009.

American Suzuki reported July sales of 1,952, a 44 percent decline from a year ago. Year-to-date Suzuki sales are 25,915, a 48 percent plunge from 2009.


Sales will be updated as manufacturers report.

2011 Ford Explorer Offers Industry-First Inflatable Seat Belt

The new 2011 Ford Explorer will have optional inflatable second-row seat belts that are triggered with airbags in the event of a crash but only if the seatbelt is buckled up. A cold gas is channeled from a canister below the rear seat through the belt into the airbag (seen deployed above). As a opposed to an airbag which inflates at you, the seatbelt device inflates away from you.

Ford says rear seat passengers, often children or mature passengers, can be more vulnerable to head, chest and neck injuries.The Ford inflatable belts spread impact forces across five times more area than conventional seat belts. This reduces pressure on the chest while helping to control head and neck motion. Belt comfort also should help increase usage rates. Studies show inflatable belts to be more comfortable for passengers due to the padding.

It's an industry-first from Ford.

Center for Automotive Research Management Briefing Seminars

The Center for Automotive Research Management Briefing Seminars kicked off this morning in Traverse City, Michigan, with manufacturing executives from the Detroit 3, BMW and Honda speaking on strategies and methods they've engaged to improve the product and process while UAW President Bob King bestowed the merits of unions and the fact they are an essential part of every democracy.

Chrysler's Senior V.P., Manufacturing Scott Garberding described Fiat's role, investments of about $1.2B in new engines and transmissions and their World Class Manufacturing banner which encompasses eliminating waste, developing new tools for manufacturing, cleaning and painting machinery and facilities and the allocation of 30 people per plant to handle fit and finish issues. Garberding says "there's a new spirit of teamwork at Chrysler."

Ford's V.P. of North American Manufacturing, Jim Tetreault, extolled how the One Ford plan of the past 3 1/2 years has brought flexibility and the ability to change the model mix in response to consumer demand. Tetreault explained how their detailed virtual manufacturing efforts create an ergonomically conducive setting for workers before the equipment is even made and how reprogrammable tools eliminate the need for replacements - a time and money saver.

GM's V.P., Manufacturing and Labor Relations, Diana Tremblay, stated the mission of delivering "products people want" and finding fast solutions using existing assets such as using the Buick Lucerne and Cadillac DTS platform to make the new Volt extended-range electric car. Tremblay says there's more employee involvement and GM's suppliers now know the plans well in advance so they can prepare for upcoming vehicles.

Other speakers discussed recycling, energy saving developments and the importance of good communication. More to come from Traverse City, the northern Michigan town that prides itself as a prime cherry and wine producing region.

2011 BMW X3, Second Generation X3 Arriving At Year End

 The new second generation BMW X3 will have a 240 horsepower engine in the X3 28i and a 300 horsepower powerplant in the X3 35i which has a 0 - 60mph time of 5.5 seconds. Both engines are mated to an 8-speed transmission. The new X3 will have more suspension technology and more options that will be standard, like bluetooth, iPod connectivity, privacy glass, alarm system, etc. The new X3 grew in length 3.5 - 4 inches because the new X5 grew 8 inches to accommodate the 3rd row seat making the new X3 equal in length the older generation X5.  The new X3 will be produced in an expansion of the BMW Spartanburg, South Carolina plant and is expected to arrive in U.S. BMW showrooms by the end of the year.

2011 Ford Explorer, An All-New SUV Coming This Winter

The one-time top-selling SUV, Ford Explorer has been reinvented and redeveloped offering two new engines with more than a 30 percent improvement in fuel economy over the current vehicle. The 290 horsepower 3.5-liter V6 engine is offered as standard equipment across base, XLT and Limited models delivering an anticipated improvement in fuel economy of more than 20 percent versus the current Explorer and the 237 horsepower EcoBoost 2.0-liter I-4 turbocharged direct injection engine improves estimated fuel economy by more than 30 percent. Explorer XLT and Limited models offer a SelectShift Automatic™ transmission, allowing drivers to manually change gears using a shifter-mounted +/- toggle switch.

Ford's new "twin independent variable camshaft timing" or Ti-VCT enables increased mechanical efficiency for improved response and performance, while optimizing fuel economy. Ti-VCT is a low-tension drive belt featuring a one-way clutch for the alternator, a direct-acting mechanical bucket valvetrain with polished buckets to reduce friction, piston-cooling jets, improved bay-to-bay breathing through the cylinder block and composite cam covers that reduce engine weight. Ti-VCT allows precise, variable control of valve overlap, or the time when intake and exhaust valves are open concurrently. This enables increased mechanical efficiency for improved response and performance, while optimizing fuel economy. In part-throttle conditions, Ti-VCT helps reduce emissions.

The 2011 Explorer will be produced at Ford’s Chicago Assembly Plant and will be exported to more than 90 countries. The 2011 Explorer goes into production later this year and goes on sale this winter.

Top 3 U.S. Dealer Groups Report 2nd Quarter Profit Gains Over 2009

AutoNation, America's largest automotive retailer with 200 stores throughout the U.S., reported 2010 second quarter adjusted net income from continuing operations of $62 million or $0.38 per share compared to adjusted net income of $50 million or $0.28 per share for the same period in the prior year, a 36% improvement on a per-share basis. Revenue totaled $3.1 billion, compared to $2.6 billion in the year-ago period, an increase of 20%, driven primarily by stronger new and used retail vehicle revenue which increased 25%. AutoNation's new vehicle unit sales increased 20%.

Penske Automotive Group with 323 stores (171 franchises in 17 states and Puerto Rico and 152 franchises located outside the United States, primarily in the United Kingdom) reported second-quarter net income rose to $29.2 million, or 32 cents per share more than double the $14.1 million, or 15 cents per share, in the year ago period. Revenue rose 16.6% to $2.7 billion from $2.3 billion a year ago. Total new retail unit sales increased 19.6%, including an increase of 20.5% in the U.S. Penske's same store sales rose 16 percent in the U.S. boosting total same-store retail revenue by 15.8% in its U.S. operations.

Sonic Automotive, the nation's third-largest automotive retailer operating 140 franchises, reported second quarter adjusted earnings from continuing operations were $15.6 million, up 41% from adjusted earnings from continuing operations in the same prior year period. On a per share basis, the Company earned an adjusted $0.27 per diluted share from continuing operations, compared to an adjusted $0.23  per diluted share from continuing operations in the same prior year quarter.  New vehicle retail revenue increased 19% and used vehicle retail revenue increased 23% for the second quarter of 2010 compared to the same quarter last year. 

2011 Audi A7 Will Be In Europe This Fall & U.S. 2nd Quarter 2011

The 2011 Audi A7 is a five-door coupe that blends the features of a sedan and the practicality of a station wagon. There are four V6 engines, two gasoline and two TDI units, including the 204 horsepower 3.0 TDI and Audi offers two different transmissions depending on the engines. The continuous multitronic sends the power to the front wheels, while the seven-speed S tronic works together with quattro permanent all-wheel drive. The A7 will have similar features to the new A8 where the driver can use a touchpad to perform numerous functions, such as using his or her finger to write the letters of the destination or the digits of the telephone number. The Audi A7 is 16.31 feet long compared to the new A8 which is 16.85 feet long. The A7 will be rolling into European dealerships in the Fall and into the U.S. in the 2nd quarter of next year. Audi's new flagship A8 will be in U.S. dealer showrooms in late November. U.S. pricing will come closer to launch but expect both models to be on either side of $80,000 depending on equipment and currency exchange rates.

2011 Mazda2 Arrives With Facebook Game: DriverVille

The 2011 MAZDA2 is being launched now in North America with a social game on Facebook called DriverVille which puts consumers in a virtual world to learn about and compete with the eco-friendly, five-door hatchback in a social adventure. Players customize their Mazda2 to fit his or her driving personality and then play to win Driver Bucks virtual currency to buy virtual items and win weekly sweepstakes prizes. There are mini-games including racing at Mazda Raceway and getting snow tires, a snowboard and accessory roof rack in order to go snowboarding. To access the game visit http://facebook.com/mazda and click on the DriverVille tab.

2011 Chevrolet Volt Can Be Ordered Now For Delivery Late This Year

The 2011 Chevrolet Volt electric vehicle with extended-range capability can be ordered now for a price starting at $41,000 ($33,500 net of the full federal tax credit, which ranges from $0-$7,500) including a destination freight charge of $720 OR on a lease program with a monthly payment as low as $350 for 36 months at the Manufacturer's Suggested Retail Price with $2,500 due at lease signing, including security deposit based on current conditions, which could vary at time of delivery. The benefit of the $7,500 tax credit is included in the reduced lease payment, with the tax credit going to the lessor. Customer deliveries of the Chevrolet Volt are scheduled to begin in launch markets late this year with initial production limited.

The Volt will be initially available to Chevrolet customers in California, New York, Michigan, Connecticut, Texas, New Jersey and the Washington D.C. area. A Volt dealer locator is available at http://www.getmyvolt.com. For customers needing general Volt information, Chevrolet will have a team of Volt advisors available to answer questions at 1-888-VOLT-4-YOU.

The Chevrolet Volt has a total driving range of about 340 miles and is powered by electricity at all times. For up to the first 40 miles, the Volt drives gas- and tailpipe-emissions-free using electricity stored in its 16-kWh lithium-ion battery. When the Volt's battery runs low, a gas powered range-extending engine/generator seamlessly operates to extend the driving range another 300 miles on a full tank.

The Volt is the first GM vehicle to offer five years of OnStar Directions and Connections service, which includes Automatic Crash Response, stolen vehicle assistance and connected navigation, all standard.  Volt will introduce an OnStar-enabled mobile app that connects the vehicle to the owner's smartphone. The Volt also has eight air bags -- dual-stage frontal, side-impact, knee, and roof-rail side-impact—and StabiliTrak electronic stability control with Traction Control. 

Ford's Farley Now Global Leader In Marketing, Sales & Service

Ford Motor Company made some executive appointments that it says will "further sharpen its senior leadership team’s focus on the “One Ford” plan and to support the company’s growth around the world."

Jim Farley, 48, currently Ford group vice president, Global Marketing and Canada, Mexico and South America operations, will take an expanded role as Ford’s global leader for marketing, sales and service around the world. This marks the first time Ford has a single global leader for marketing, sales and service. The move is effective Aug. 1.

Other moves include:

    * John Fleming, 58, Ford executive vice president currently serving dual roles as Chairman and CEO of Ford of Europe and head of Global Manufacturing and Labor affairs, will lead the company’s Global Manufacturing & Labor Affairs operations.
    * Stephen Odell, 55, currently CEO of Volvo Cars, is appointed a Ford group vice president and succeeds Fleming as chairman and CEO of Ford of Europe.
    * Stuart Rowley, 43, chief financial officer of Volvo, becomes chief financial officer, Ford of Europe.

All three appointments will be effective upon the closing of Ford’s sale of Volvo to Zhejiang Geely Holding Group Limited, expected to occur later this quarter.

Ford is reorganizing its operations in Canada, Mexico and South America. Effective Aug. 1, Eduardo Serrano, 50, currently president and CEO of Ford of Mexico, is appointed executive director, Latin America, with responsibility for the company’s operations in Mexico and South America. David Mondragon will continue as president, Ford of Canada. Both Serrano and Mondragon will report to Mark Fields, Ford executive vice president and president of the Americas.

Former Toyota & Chrysler Exec Jim Press Joins Renault-Nissan

Reuters and Bloomberg are reporting that the Renault-Nissan alliance hired Jim Press as of March in a role of consultant on sales and marketing projects. Late last year the 63 year old Press ended a two-year stint at Chrysler after 37 years at Toyota where he was the first non-Japanese to be elected to its board of directors.

Simon Sproule, director of communications at the Renault-Nissan alliance said Press's consultancy contract started in March and the length and terms of the contract were confidential.

2010 Toyota Highlander - Great Look, Value & Ride

The Toyota Highlander may be considered a mid-sized crossover or even a Camry wagon on steroids but in my view it's the best choice when compared to its Toyota siblings or competitors which is supported by the fact that the Highlander (39,725) has outsold the Sequoia (5,700), 4Runner (21,953) and Venza (25,196) through the first half of 2010.

The Highlander is the shortest, most fuel efficient (18 city/24 hwy) and least costly going against the Honda Pilot, Chevrolet Traverse, GMC Acadia and Mazda CX-9 though the Dodge Journey is quite a bit cheaper. Exterior beauty is in the eyes of the beholder and interior seating height is also a personal preference, and Highlander fit the bill of combining the space and seat height of a large SUV into a smooth, powerful car-like experience into an aerodynamically-crafted sleek vehicle. The current Highlander is the result of a 2008 redesign which made it larger and more powerful than the original generation which debuted in 2001 and received a horsepower boost in 2004. The "salsa red pearl" Highlander Limited that I was fortunate to test drive was amazingly quiet which is a very important characteristic based on today's market research which ranks wind and outside noise as a top customer complaint.

The Highlander provides plenty of cargo space when the 2nd and third row seats are folded flat, in fact, I would bet there's more cargo room in the 2010 Highlander than my 2002 Sequoia SUV where the 2nd and 3rd rows stow vertically, unless the 3rd row is removed entirely. It's truly amazing how much cargo does fit into the Highlander, and, when fully loaded, how nimble it performs delivering a comfortable the ride.

Highlander comes in either 2 or 4 wheel drive and has three powertrain choices: the standard 187 horsepower 2.7 liter four-cylinder engine, the more popular 270 horsepower 3.5-liter V6 and, of course, the hybrid-powered model. My brother has the smaller previous generation Highlander hybrid which he raves about, especially on the fuel economy.

My wife who still spends time driving a 1996 4Runner, first goes for looks and says the Highlander's sleek exterior styling beats the current model 4Runner (pictured right above) which has a more macho bulky appearance. She also enjoyed the Highlander ride, SUV-like raised seating position and interior styling.

I was impressed with the versatile functionality, specifically the seating options and hauling capability, and the effortless acceleration and smooth handling of the AWD V6 Limited with a sticker of $40,995 that included the $1,780 Rear-Seat DVD Entertainment System and $4,900 Extra Value Package that bundled touch screen nav, bluetooth phone connectivity, upgraded sound system, moonroof, rear air, heated from seats and a power rear tailgate door with remote. The $40,995 sticker included the $800 delivery and handling charge and an Extra Value Package discount of $1,500.


The Highlander starts at $25,855 for the 4-cylinder model which gets 20mpg City/27mpg Highway and runs up to a starting MSRP of $41,220 for the Highlander Hybrid Limited with 27 City/25 Hwy mileage. The mileage of the AWD Limited with the 3.5 liter V6 is 17 City/23 Hwy.

Bottom line: this Highlander was loaded with features including 7 airbags and it drove like a dream for the thousand miles I racked up in a week. A definite BUY.

Toyota provided the vehicle used in this evaluation.

2011 Mercedes-Benz CL-Class With New Features This Fall

 The updated 2011 Mercedes-Benz CL550 4MATIC is powered by a new 429 horsepower V8 biturbo engine with BlueDIRECT technology which achieves a 10 -15% improvement in fuel economy and 23% improvement in CO2 emissions and takes 4.9 seconds to accelerate from a standstill to 60 mph. The top-of-the-line 2011 Mercedes-Benz CL600 has a 510 horsepower 12-cylinder biturbo engine and accelerates from a standstill to 60 mph in 4.5 seconds (pictured above).  Now before you fall in love, be aware that the 2010 CL-Class models start at $110,400 for the CL550 and $156,400 for the CL600 so expect 2011 prices to be in that ballpark. OK - read on.

Driver assistance systems in the CL-Class include a modified Active Body Control with crosswind stabilization system that not only regulates roll, but pitching and squatting movements as well. Also, theres a Direct-Steer system which can vary the steering ratio based on the steering angle and Active Lane-Keeping Assist which evaluates information provided by a camera mounted on the inside of the windshield. It identifies the contrast between the road surface and the lane markings. In addition, the optional radar system scans the side of the roadway for dividers and other roadway edge markings. The system also evaluates the driver's actions and can reliably determine whether the car is departing from the lane intentionally or not. For instance, there is no warning if the driver accelerates hard just before passing or when accelerating onto a highway, or if he brakes hard or steers into a curve. The CL-Class Active Blind Spot Assist is a system that makes use of a multi-stage warning concept. If the system detects that a lane change would be too dangerous, it warns the driver by displaying a red triangle in the glass of the exterior mirror.

The standard Navigation system features a nationwide map system stored on a 40-Gigabyte hard disk, enabling extremely rapid route calculation. Another factor contributing to a high level of navigation ease is the detailed 3-D map display with SIRIUS real-time traffic information.

The standard Voice Control system allows the driver to operate the navigation, telephone and audio devices via whole-word input -- meaning the driver no longer needs to spell out his commands but simply speaks whole words when entering the destination, choosing a radio station or a music title from the Music Register, or when calling up a name from the phone book.

The 2011 CL-Class will make its U.S. debut in the Fall.

Ford Getting More In SYNC To Keep Drivers' Eyes On The Road

Ford is expanding its SYNC technology to give drivers safer alternatives for hand-held texting to keep their eyes focused on the road. Ford is improving the SYNC text message readback feature, giving drivers a “Do Not Disturb” button and “lock-out” capabilities that are not needed for driving. Ford will offer the new features on 2011 model year vehicles equipped with MyFord or MyLincoln Touch, the driver connect technology that provides drivers personalized access to information and entertainment through voice control, touch screens and five-way controls mounted on the steering wheel.

The new 2011 Ford Edge and Lincoln MKX will be first to offer the “Do Not Disturb” button which blocks incoming phone calls or text messages from a Bluetooth-enabled mobile phone paired with SYNC by diverting calls into voicemail and saving text messages on the device for viewing later. But unlike turning the phone off, drivers can still make voice-activated outgoing phone calls.

Toyota Adds Four New U.S. Product Quality Field Offices

Toyota Motor Sales, U.S.A.is expanding its Product Quality Field Office program to four additional U.S. regional sales areas, following a pilot program launched in the New York regioin late 2009. TMS will officially open its next Product Quality Field Office in San Francisco this month, and three additional offices across the U.S. over the next 12 months. Toyota Canada will establish Product Quality Field Offices in Toronto and Calgary, for a total of seven offices across North America.

Staffed by technical and engineering specialists, the Product Quality Field Offices aims to enhance the ability to detect, analyze and respond to customer and quality issues in the field with the mandate to investigate specific field quality issues related to unique regional, geographical or environmental conditions in each area.  The New York region office was developed to investigate the performance of Toyota, Lexus and Scion vehicles in cold weather climates, with an emphasis on corrosion issues. The new San Francisco office will focus on hybrid vehicle systems and durability, with the high concentration of these vehicles in the California market. 

Toyota is currently evaluating opening additional offices in Jacksonville, Fla. to focus on heating, ventilation and air conditioning and drivability; Houston, Texas to concentrate on trucks and chassis components; and Denver, Colo. to study high altitude performance and SUV models. Offices in Toronto and Calgary will focus on extreme seasonal temperature changes and high road salt usage, as well as unique vehicle operating conditions. 

500 Special-Edition Mopar 2010 Dodge Challengers Coming Next Month

Chrysler Group will launch 500 special-edition Mopar 2010 Dodge Challenger in dealer showrooms next month at an MSRP of $38,000 for an automatic transmission and $39,000 for a manual transmission. Both prices include $750 for destination. Customers may pre-order now. The Mopar '10 comes equipped with a 5.7-liter HEMI® V-8 engine, a hood-venting system, a cold-air intake, a front strut-tower brace with shock caps, and a unique engine cover. Under the decklid is a rear strut-tower brace that stiffens the chassis and improves handling characteristics of the car.

Mopar '10 will be available in Brilliant Black with a choice of three accent colors: Mopar Blue, Red or Silver. Accent colors will appear on side stripes as well as in the stitching on the steering wheel and seats. Exterior features include 20-inch forged heritage gloss-black wheels, black-chromed grille surround, and a functional, vented T/A-style hood with vintage hood pins. Mopar logos and graphics are prominent on the front fascia, hood, hood-pin caps, body-side stripes, windows and on the chromed fuel door. A special Mopar '10 car cover also comes with the vehicle. Interior features include Katzkin leather seating, custom leather-wrapped steering wheel with baseball-style stitching, Mopar shift handles (T-handle for automatics, Pistol Grip for manuals), a serialized dash plaque with Mopar '10 logo and Mopar branding throughout.

No mention of power in the news release so I guess we can expect the same 357 horsepower that's under the hood in the current top of the line Challenger R/T models.

Chrysler Begins Selecting Dealers To Sell Fiat 500 Later This Year

Chrysler Group has begun to select dealers in about 125 U.S. markets covering 41 states, identified for growth potential in the small-car segment, to sell the Fiat 500 late this year and the Fiat 500 Cabrio in 2011.

Dealers must demonstrate how they will market, sell and service Fiat vehicles with a new customer service model. Chrysler Group's best performing dealers will have preference in the identified markets. A completely separate facility will be required to represent the Fiat brand with a separate Fiat team will be required to sell and service the Fiat brand. (Photos from 2008 Geneva Auto Show)

Range Rover Evoque Goes On Sale In North America Fall 2011

The all-new Range Rover Evoque, the smallest, lightest and most fuel efficient Range Rover ever produced, was introduced at the 40th birthday celebration of Range Rover in London and will join the Range Rover and Range Rover Sport in North American dealerships in the Fall of 2011. The all-new Range Rover Evoque which spawned from the 2008 LRX concept will make its global public debut at the Paris Motor Show at the end of September and will be sold in over 160 countries starting next summer.

June 2010 U.S. Auto Sales

General Motors' Chevrolet, Buick, GMC and Cadillac brands saw June U.S. sales of 194,828, an increase of 36 percent. Year-to-date sales of 1,069,577 for the four brands is a 32 percent over the first six months of last year.

Ford, Lincoln and Mercury sold 170,900 new vehicles in June, a 15 percent increase versus a year ago. Year-to-date sales total 954,745, up 28 percent.

Toyota Motor Sales reported June sales of 140,604, up 6.8 percent over the year-ago. The Toyota Division posted June sales of 123,272, an increase of 7.4 percent over the same period last year and Lexus had June sales of 17,332, up 2.7 percent over the year-ago month. For the first-half of the year, TMS reports sales of 846,542, a gain of 10.6 percent over the same period last year.

American Honda June sales of 106,627 was an increase of 6.2 percent while  year-to-date sales reached 593,909, an increase of 12.6 percent versus last year. Honda Division posted June sales of 95,788, an increase of 4.0 percent while Acura sales were 10,839, a 30.9 percent increase over 2009.

Chrysler Group's U.S. June sales of 92,482 was an increase of 35 percent versus June 2009. Year-to-date, Chrysler has sold 527,219 vehicles, up 12 percent over the first six months of last year.

Nissan North America reported June sales of 64,570, an increase of 10.8 percent, compared with June 2009.  Nissan Division sales rose 8.2 percent for the month, while sales of Infiniti vehicles were 31.7 percent higher than a year before. Year-to-date, total sales are 440,332, a gain of 26.6 percent over the first six months of last year.

Hyundai Motor America June sales of 51,205 was a 35 percent increase compared with the same period a year ago and an all-time sales record for both the month of June and the entire first half of the year for Hyundai. Year-to-date Hyundai sales are 255,782, a 25 percent rise over 2009.

Kia Motors America announced its best June sales ever of 31,906, a 18.8 percent increase over last June. Kia's year-to-date sales of 170,069 are up 15.4 percent over last year.

Subaru of America posted record June sales with 21,601 vehicles sold, a 16 percent increase over June 2009. Year-to-date sales total 125,960, a 35 percent increase over 2009.

Volkswagen of America reported June sales of 21,051 total units, a 10.6 percent increase over June 2009, and its twelfth consecutive month of sales growth.  Year-to-date, Volkswagen's sales are 126,012, up 29.9 percent versus 2009. Separately,  Audi reported June sales of 8,601, a 14.3 percent increase over a year earlier. Year-to-date Audi U.S. sales of 48,440 propelled it to the best first-half results of any year since it began selling cars in the U.S. market surpassing its previous first-half record set in the first six months of 2007.

BMW and MINI vehicles June U.S. sales of 23,331, increased 11.9 percent. For the first half of the year, the BMW Group reported a total sales volume of 121,585 vehicles, up 6.2 percent from the same period last year. BMW brand accounted for 19,182, an increase of 14.6 percent while MINI USA sales of 4,149 cars in June was an increase of 1.1 percent compared to last year.

Mercedes-Benz USA June sales of 18,997 vehicles, an increase of 25.4 percent and on a year-to-date basis, MBUSA has sold 106,967 new vehicles, an increase of 25.7 percent over last year. On a year-to-date basis, MBUSA has sold 106,967 new vehicles, an increase of 25.7% over last year. smart USA recorded 577 sales in June bringing Daimler's June total to19,574 for Mercedes and smart.

Mazda North American Operations reported 18,238 vehicles sold, a 32.8 percent increase and through the first half of the year, MNAO has sold 115,719 vehicles, outpacing last year by 15.3 percent.

Jaguar Land Rover June sales were 4,408, a 53 percent rise from June 2009 and year-to-date JLR has sold 20,815, a 15 percent gain.

Mitsubishi Motors North America June sales were 4,198, down 3.8 percent compared to June 2009. 2010 sales so far are 26,490.

Porsche Cars North America June sales in the U.S. were 2,141, an increase of 137 percent over last year when it sold 902. Year-to-date sale are 10,984, a 13.7 percent rise over 2009. Halfway through the calendar year, Porsche has now sold 10,984,14 percent ahead of last year’s six-month pace.

American Suzuki reported June sales of 2,035, a 5 percent drop. At the mid-way point of 2010 Suzuki's U.S. sales are 11,549, a 48 percent tumble from 2009.

This report will update as manufacturers report.

Tesla Shares Soar On First Day of Trading While Market Tanks

Tesla (ticker: TSLA), the electric car maker, sold 13.3 million shares in its initial public offering on June 29th, a fifth more shares and at a higher price than the originally planned.  Offered at $17, above the expected price range of $14 to $16, the stock opened trading at $19 dropped and then raced ahead by 41% to close its first day of trading at $23.89 per share. The IPO raised $226 million. All this on a day when the Dow fell 268 points.

Started by by Pay-Pal co-founder Elon Musk 7 years ago, Tesla came out with its $109,000 Roadster in 2008 and despite the high price tag has sales of over 1,000. I have not driven the Roadster but a good friend who has was blown away by the 3.6 second zero to 60 time and says it compares to the best gas-powered high performance sports cars. (Shown above in September 2009 in Frankfurt.)

 The anticipation is that its $50,000 (after rebates and credits) Model S launching in 2 years could be a big hit based on pre-orders. It's being manufactured in the Fremont, California, New United Motor Manufacturing, Inc. (NUMMI) plant where the Toyota Matrix and Pontiac Vibe were made in a GM-Toyota joint venture. (Tesla Model S shown above in Detroit in January.)

Covering The Auto Industry: An SPJ Event

 (left to right: Mike Michels, Chris Woodyard, Richard Saxton, Jeremy Anwyl, Chris Hosford)

The Society of Professional Journalists - Los Angeles Chapter went up against the NBA Championship Lakers-Celtics' Game 7 on June 17 with an event entitled “Covering the Automotive Industry.” Panelists were Edmunds.com CEO Jeremy Anwyl, Hyundai Motor America Communications VP Chris Hosford, Toyota Motor Sales, U.S.A. VP of External Communications Mike Michels, and USA Today auto writer Chris Woodyard. The panel was moderated by SPJ secretary yours truly.

Anwyl provided attendees with a look at how recent automotive trends from the Edmunds.com data team indicate a possible so-called "double dip recession" because fleet sales have been unusually high due to spending triggered by the federal stimulus package. He warned that when these purchases slow down soon, a sales downturn is inevitable. Many news sources will then report that the Seasonally Adjusted Annual Rate (SAAR) has fallen without noting the actual buying behavior that caused the sales decline. Unseasonably high incentive offerings and other unusual offerings that shift consumer psychology also undermine the accuracy of the SAAR, but reporters tend to cover SAAR as a simple black and white picture of industry health – a practice that is often misleading and potentially damaging to consumer confidence. We'll keep a close eye on June sales numbers this week.

Hyundai's Chris Hosford made the point that like cars themselves, the industry is quite complex, so there's rarely a simple answer to issues that may seem basic. He also pointed out that journalists shouldn’t forget the importance of current technologies despite the allure of future technologies.

Toyota's Mike Michels presented the audience of journalists and educators with a list of ten points worth knowing about the auto industry, including “Autos are everyone’s business” -- meaning the auto industry affects the economy in many more ways than the average person – or reporter – may realize. Michels also discussed recalls, and acknowledged that government regulations regarding timing often result in a recall announcement taking place before a fix is determined, causing potential confusion and uncertainty for consumers and dealers.

USA Today's Chris Woodyard, the only writer on the panel, expressed that a critical part of being an automotive writer is taking very complex issues and breaking them down for readers so that they can understand and draw value from those issues. Woodyard who had covered other beats like retail, says automotive reporting brings you much closer to the executives and also provides the widest variety of story choices because cars are involved in almost everything. He cited a stories about going through the contents of trunk of a car to the latest industry trends.

The key message was use the resources available to research your story - from Edmunds.com data compiled from 14 million views per month to those provided by the media reps like Michels and Hosford.

My thanks to Edmunds.com for hosting this event which ended with 4 minutes left in the game so that many of us could dash upstairs to the big screens to see the Lakers capture another NBA title. I'll be sure to schedule the next event when the L.A. Dodgers or Kings are in a crucial  play-off game to bring them luck, too.

2011 Honda CR-Z Starts At $19,950 In Late August

The all-new 2011 Honda CR-Z sport hybrid coupe is set to debut at dealers on August 24, 2010, with a manufacturer's suggested retail price (MSRP) starting at $19,200, plus a destination and handling charge of $750.

The gasoline-electric hybrid has a 1.5-liter iVTEC 4-cylinder engine mated to a six-speed manual transmission which works with Honda's Integrated Motor Assist. An automatic Continuously Variable Transmission is available and includes steering wheel-mounted paddle shifters for manual-like gear-ratio control.

A new, exclusive 3-mode drive system allows the driver to configure the vehicle's responsiveness for Sport, Normal or Econ (Economy) driving modes. Driver efficiency tools include Eco Assist™ and Eco Scoring, which together can help drivers find improvements to efficient driving styles, while also comparing economy achievements to previous trips as well as the life of the vehicle.

The CR-Z is available in two equipment grades – the CR-Z (base) and the CR-Z EX. Standard features on the CR-Z include an AM/FM/CD/USB audio system with six speakers, automatic climate control, power windows and door locks, remote entry, cruise control, and more.

The CR-Z EX adds a 360-watt AM/FM/CD high-power audio system with seven speakers – including a subwoofer – Bluetooth® HandsFreeLink®, leather-wrapped steering wheel and more. The CR-Z EX is available with the Honda Satellite-Linked Navigation System™ with Voice Recognition.

Looks like alot of car for the money.

2010 J.D. Power Initial Quality Study Results

 The 21 highest-ranked models in the 2010 Initial Quality Study:

Sub-Compact Car: 2010 Hyundai Accent
Compact Car: 2010 Ford Focus
Compact Crossover/SUV: 2010 Toyota FJ Cruiser
Compact Multi Purpose Vehicle: 2010 Scion xB
Compact Sporty Car: 2010 Mazda MX-5 Miata
Entry Premium Car: 2010 Mercedes-Benz C-Class
Entry Premium Crossover/SUV: 2010 Acura RDX
Compact Premium Sporty Car: 2010 Volvo C70
Midsize Car: 2010 Honda Accord
Midsize Crossover/SUV: 2010 Honda Accord Crosstour
Midsize Pickup: 2010 Nissan Frontier
Midsize Sporty: 2010 Ford Mustang
Minivan: 2010 Toyota Sienna
Midsize Premium Car: 2010 Lexus GS
Midsize Premium Crossover/SUV: 2010 Lexus GX 460
Large Car: 2010 Ford Taurus
Large Crossover/SUV: 2010 Chevrolet Tahoe
Large Pickup (tie): 2010 Chevrolet Avalanche and 2010 GMC Sierra 1500
Large Premium Car: 2010 Lexus LS 460
Large Premium Crossover/SUV: 2010 Cadillac Escalade

There are 6 Toyota/Lexus/Scion, 4 General Motors, 3 Ford and 3 Honda/Acura vehicles.

This year, consumers were asked to report problems experienced in eight categories:
    * Features/Controls/Displays
    * Exterior
    * Engine/Transmission
    * Interior
    * The Driving Experience
    * Audio/Entertainment/Navigation
    * HVAC (Climate controls)
    * Seats
Over the years, the most frequent types of problems that owners report will vary. In the 2010 Initial Quality Study, for instance, the top five, most-frequently-reported problems are:
    * Excessive wind noise
    * Climate controls are difficult to use/see, or are in a poor location
    * Hands-free communication system does not recognize user voice commands
    * Front audio/entertainment system controls are difficult to use or are in a poor location
    * Materials that scuff or soil easily

The 2010 Initial Quality Study is based on responses from more than 82,000 purchasers and lessees of new
2010 model-year cars, trucks and sport utility vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to identify problems, to drive product improvement, and to improve initial quality for new-vehicle buyers. The study was fielded between February and May 2010.

Courtesy of JD Power & Associates

2011 Volkswagen Jetta Starting At Around $16,000 In October

The all-new 2011 Volkswagen Jetta, at a starting price point of around $16,000, will be available in the U.S. this October. The all-new 2011 Jetta has been completely overhauled, inside and out with its new wheelbase and exterior length significantly bigger than its predecessor. At 182.7-inches long, 57.1 inches tall and 70.1 inches wide, it is more than 3.5 inches longer than its predecessors. The Jetta comes with a 2.0-liter turbodiesel direct injection (TDI) Clean Diesel featuring common rail injection with 236 lbs-ft. of torque.  The engine runs as quietly as a gasoline engine, but yields the power of a sports car achieving 0-60 mph in 8.7 seconds. Additional engines include the 2.0, 2.5 R5, and as of 2011, the 2.0 TSI.  All Jetta engines will be offered with a manual transmission as standard equipment. An automatic transmission will also be available with each engine version as an option.  On the new 2.0-liter TDI and 2.0-liter TSI, Volkswagen will offer the 6-speed DSG – one of the most advanced and efficient automatic transmission systems in the world.  In the U.S., S, SE, SEL and TDI versions of the Jetta will be available, as will a 2.0-liter GLI.

This is big news for VW with Jetta accounting for about half of its U.S. sales and the push to grow its business aggressively.

General Motors Statement: Chevy vs. Chevrolet - Really!

Today's emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet.  It is a passion we share and one we do not take for granted.

We love Chevy.  In no way are we discouraging customers or fans from using the name.  We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.

In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes.  The memo in question was one step in that process.

We hope people around the world will continue to fall in love with Chevrolets and smile when they call their favorite car, truck or crossover a "Chevy."

2011 Chevrolet Cruze Starts at $16,995 In September

The all-new 2011 Chevrolet Cruze will begin arriving in U.S. dealerships this September, starting at $16,995, including destination. This is the long-awaited Opel-based Chevy replacing the Cobalt. GM is betting on the Cruze to attract customers from the popular top-selling Japanese models to carry the brand.

The 2011 Cruze will be offered for retail sale in four models:
The Cruze LS with a 136 horsepower 1.8L Ecotec engine starts at $16,995, and has 10 air bags, StabiliTrak electronic stability control with rollover sensing, traction control, anti-lock brakes, collapsible pedal system, power rear-door child safety locks and standard OnStar, with a six-month subscription including Turn-by-Turn navigation.
  
The Cruze LT which starts at $18,895, Cruze Eco at $18,895 and the Cruze LTZ at $22,695 all will have the 138 horsepower 1.4L Ecotec turbo engine that's expected to get 40 miles per gallon highway. The LTZ will have a six-way power driver seat, leather seating surfaces, leather-wrapped steering wheel and shift knob, cruise control, Bluetooth phone connectivity, USB port with audio interface, steering-wheel mounted audio controls, remote vehicle start, standard automatic climate control, auto-dimming inside rearview mirror, and ultrasonic rear-parking assist.

Available options features on Cruze include in-dash navigation system with 40-gigabyte hard drive, enabling pause-and-play radio, downloading of audio CDs, or transferring MP3 files from a USB memory device, Pioneer Audio system, with nine speakers and 250-watt amplifier, heated leather seats, ultrasonic rear park assist and RS Appearance package, including rocker moldings, unique front and rear fascias, front fog lamps, and rear spoiler.

2012 Lexus LFA Supercar Starts At $375,000 In December

The all-new 2012 Lexus LFA supercar powered by a new high-revving 552 horsepower 4.8-liter V10 engine has an MSRP of $375,000 (excluding delivery, processing and handling fee). The engine is mated to a six-speed Automated Sequential Gearbox with paddle shifters that enables ultra-quick gear shifts of 0.2 seconds with four driving modes – AUTO, SPORT, NORMAL and WET.

The LFA Lexus performance flagship for the F portfolio accelerates from 0 to 60 in 3.6 seconds and achieves a maximum speed of 202 mph thanks to an independently controlled throttle body for each cylinder, high-volume 12-hole injectors, dual Variable Valve Timing with intelligence, low-friction engine components, and equal length exhaust manifolds. All LFAs will be hand-built to customer specifications with production beginning in December 2010. (LFA pictured above at 2010 New York Auto Show)