Episode 942 – Toyota Passes GM for No.1?, Hot Cars at GM Design, Where is Studio ‘X’?
August 3rd, 2012 at 12:00pm
Runtime: 7:56
With all the 2Q numbers in Toyota sold more than a million more units than it did last year when Japan was ravaged by natural disasters. The company also may have passed GM again to take the sales crown. In our tour of the GM Design Center we saw a lot of great cars, including one with an interesting history. The Nürburgring gets a bail out to stave off bankruptcy. All that and more, plus we ask Ed Welburn where GM’s super secret Studio X is located.
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Welcome to Autoline Daily. I’m John McElro. It’s Friday, and here’s the news.
TOYOTA PASSES GM FOR No. 1?
Toyota reported its latest financial numbers and they sure do look good. The giant Japanese automaker sold 2.2 million vehicles in the last quarter, up by more than a million units compared to last year, when the company was hit hard by the earthquake which hit Japan. Revenues shot up nearly 60 percent to $68 billion. And Toyota reported a net profit of $3.6 billion. Interestingly, since GM reported sales of 2.4 million vehicles, this would make GM the No. 1 automaker based on vehicle sales. However, some analysts don’t count GM’s sales of Wuling brand vehicles in China, since GM is a minority owner in that partnership. Take Wuling out, and Toyota surpasses GM.
CHEVY SPARK
Speaking of GM, we got a chance to drive the Chevrolet Spark that is coming to the U.S. for the first time. The funky-looking A-class hatchback is already sold all around the world, and it’s built in six different countries. It’s only 4 inches longer than a Fiat 500, but comes with four doors and feels far roomier, especially in the back seat. It’s powered by a 1.25 liter four-cylinder engine that generates 84 horsepower and 83 pound-feet of torque, mated to a five-speed manual or four-speed automatic. Thanks to a curb weight of only 2,300 pounds the car does not feel underpowered. The base price is $13,000 with a manual trans, the automatic costs another grand. Load it all up, and the price comes to nearly $17,000. Chevy wants to emphasize the city fuel economy of 32 MPG with the manual and 28 with the automatic. The highway number is 38, but this is a car designed for urban use. My overall impression: the Spark offers an interesting infotainment package, good styling, decent enough dynamics and an attractive price. And it’s gets Chevy into a segment where it’s never competed before, at least not in North America.
HOT CARS AT GM DESIGN
On last night’s super-special episode of Autoline After Hours we took a tour of GM’s Design Center with the man himself, Ed Welburn. There was a ton of cool stuff on display but on the way out we ran across something I had NEVER seen before. Called the Pegasus, this red-hot car was built to former GM design honcho Bill Mitchell’s specifications. It’s essentially a customized Pontiac Trans Am, but powered by a Ferrari V-12 competition engine that’s supposedly worth a FORTUNE on its own. The shifter and gauges are Ferrari as well. Mitchell was a Ferrari aficionado, which is why he had this car built. When he retired from GM he took the car with him with the stipulation that when he passed away it would be returned to the company in exactly the same condition. I’m glad he held up his end of the bargain so we all could get a chance to see this orphaned auto.
FORD’S NEW CVT BUILT IN HOUSE
Automakers are locked in a transmission arms race. With every design cycle they add more gears and more fuel-saving features. Ford just kicked off production of its latest “gearbox” so to speak, its new HF35 front-wheel-drive transaxle.
Production of this new transmission is part of a $632 million investment Ford and its suppliers are making in North America to increase manufacturing flexibility and capacity. Interestingly, by doing the work in house the company was able to reduce development costs by 20 percent!
‘RING GETS BAIL OUT
Good news for fans of the Nürburgring, the track just got a loan guarantee from the German state of Rhineland-Palatinate. The loan, which amounts to 254 million euros, will allow the track to avoid defaulting on debt it accrued while building a hotel and theme park. We reported a couple weeks ago that the track was at risk of going into bankruptcy if it didn’t get some sort of bail out. Though the famous race course has fallen on hard times lately, F1 boss Bernie Eccelstone has pledged to bring the top-level racing series back to the ‘Ring next year.
WHERE IS STUDIO ‘X’?
As I mentioned earlier in the show, Ed Welburn, the head of design at GM took us on a tour of the GM Design Center last night. But one area he would not let us into is the mystical Studio X. But he did give us the background on what it’s about, which we want to share with you, because not many people know anything about it.
In the Rapid Fire part of last night’s show, based on a viewer’s question, we asked Ed to at least point in the direction of Studio X. If I’m reckoning right, it’s in the northeast part of the building. Anyway, if you did not see that show, check it out on our website Autoline.tv. It really is a terrific view of what goes on inside GM’s design center that almost no one on the outside has ever seen before.
And that wraps up this week’s worth of reports. Thanks for watching, we’ll see you Monday.
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Comments (43)
August 3rd, 2012 at 12:27 pm
Pedro,
In case you didn’t see my late reply to your question yesterday, the shifter in my minivan is on the floor, in front of a mini console between the front seats.
August 3rd, 2012 at 12:44 pm
Toyota can add car sales leader to it’s recall leader title.
http://www.autoblog.com/2012/08/01/toyota-recalling-778-000-rav4-hs-250h-units-for-loose-suspensio/
Wonder how much money they saved by not tightening their nuts…
August 3rd, 2012 at 12:50 pm
Uh-oh, Toyota passing GM in sales! I can already hear the attack ads coming from GM. Perhaps they might even some more bogus allegations a-la the unintended acceleration fable from a few years ago (not that GM started that one)to win sales from their international competitor. Then once again GM can wear its meaningless No. 1 crown.
August 3rd, 2012 at 1:05 pm
What is the sense of Chevy offering both the Sonic and Spark in North America? These two vehicles are way to similar in my eyes.
I enjoyed last nights AAH with Ed Welburn.
Now that you have given us a view of the GM Design Center, what about a tour of a GM Engineering, Product Testing and/or Manufacturing Plant?
August 3rd, 2012 at 1:12 pm
I would like to see a more indepth discussion about the merits and drawbacks between a Automatic and CVT transmission. Nissan really likes to highlight their CVT’s in their commericals, and now Ford is also developing there own for future vehicles. Do CVT’s really give a vehicle smoother aceleration without the need of all those gears, or is it just hype?
August 3rd, 2012 at 1:21 pm
I’ve never seen Peter with such a big smile for so long (at one time) than at yesterday’s AAH at GM’s design studio. Peter got a deja-vu moment (at the end of the show) when Ed gave Peter a ride in the Mako-Shark Corvette. Hey John, did you get ‘your’ ride too? Great show (wonderful history lesson as well).
August 3rd, 2012 at 1:30 pm
#4,
The Spark is a lot smaller (and cheaper) than Sonic, and about 500 pounds lighter. It is clearly in a different market segment, though maybe not a segment with much market demand.
August 3rd, 2012 at 1:35 pm
#5,
It seems that nearly all automotive “journalists” hate CVT’s, but those who have them like them.
CVT’s definitely give smooth acceleration, whether the belt type like Nissan uses, or the power splitter setup used in Toyota and other hybrids. I, personally, like them, but some people don’t like hearing the constant changes in engine speed when you change the position of the right pedal.
August 3rd, 2012 at 1:48 pm
If the Spark goes up to $17k then how much is a Sonic? No wonder people avoid the A segment market, for a little more money you can move up to a B segment and get a lot more car for your money, or buy a used C segment for that same money. BTW did anyone catch the police chasing a dumb driver in a “dumb” car in Texas? what an idiot!!
August 3rd, 2012 at 2:14 pm
So John, that must have been you I saw out on the Southfield Freeway on my way in to work yesterday morning behind the wheel of that Spark. I didn’t bother trying to see who was behind the wheel. Too busy checking out the car.
You say that this is the first time Chevy has competed in this segment (the A segment). So then the Chevy Chevette of the 70′s & 80′s was a B segment vehicle?
August 3rd, 2012 at 2:34 pm
Chevette overall length in 1976 = 158.7
Spark overall length = 144.7
Sonic overall lenght = 159
Chevette = B Segment
I think the only A segment car I remember before the Smart was the Civic CVCC…
August 3rd, 2012 at 2:43 pm
#11,
A Chevette was about the same size as a Mk 1 Golf/Rabbit, which was 155 inches long.
August 3rd, 2012 at 2:56 pm
#19,
A Sonic LTZ has an MSRP of #18,625, and you can run the price up to around $20K from there.
To me, all of these small cars make most sense as near zero option versions. A base Sonic is under $15K MSRP, and has A/C and everything else you need for basic transportation, plus things you don’t need, like power windows.
August 3rd, 2012 at 3:15 pm
I suppose there are some folks that just don’t want to take a chance on used, so they’ll take less car for the money as long as it is brand-new, but today you can buy extended warranties, which are just as good as the manufacturer’s and sometimes even longer coverage.
August 3rd, 2012 at 3:25 pm
Some people just like small cars, if they don’t need more room.
I certainly could have gotten “more car” for the same money, new or used, when I got my MINI, but I just like the MINI. It would not work as an only car for me; not enough space, but it’s a lot of fun, and for some people, a small car, even one without a usable back seat, can serve as an only car.
August 3rd, 2012 at 3:38 pm
A neighbor just got a 3 yr old Mini, and got to sit inside it, I can see why people like them so much, very nice interior and great ergonomics, if their reliability were better, I would jump into one as well. But with the abuse I would give it, I’d be scared of spending too much on repairs.
August 3rd, 2012 at 3:39 pm
I saw a Spark while driving past a dealer and I got a better look at Fords B-max in their flier. Now I think I know why the first reveal photos were an angle shot. At a profile view,both of these cars are ugly and really small.
August 3rd, 2012 at 4:01 pm
cwolf better keep those Sparks away from the Volts,the whole dealership could be engulfed in a big fire.
August 3rd, 2012 at 4:31 pm
More info on the demographic for Sonic and Spark:
http://wardsauto.com/sales-amp-marketing/chevy-sees-different-buyers-spark-sonic
August 3rd, 2012 at 5:59 pm
I owned a Ford 500 awd with cvt for 4 years and loved the trans. many times on icy roads i would floor it trying to spin tires but the car would just grab and go. without the sudden wheel power and surges of a tradional automatic it could put the power all to good use.
August 3rd, 2012 at 8:17 pm
Good luck GM, Toyota was targeting young people with their Scion brand and most xA and xB’s were purchased by older folks or by parents for their kids, slow and safe enough.
August 4th, 2012 at 3:20 pm
Must be a Studabaker club visiting Cedar Point park today. Peering inside many of them made my first notice of how simple and clean they were laid out. And the unmistakable nose on the front end made me wonder if Toyota did’nt copy from it’s design. My fav. of the lot was a P/U. The one I speek ofwas dimensionally perfect; A tad bigger and wider than the Ranger, yet with a more open feel. Anyway… it was a real treat to see’em.
August 4th, 2012 at 6:40 pm
Speaking of clean and simple, I had a client today who owns a 68 Camaro SS, perfect size for such a car, don’t understand why the Detroit 3 did not shrink their pony cars to those dimensions instead of what they are now, loved that car, lucky guy!
August 4th, 2012 at 8:21 pm
@ #7
Like I said, there is not enough difference to justify the production, marketing and sales of an additional vehicle like the Spark, I believe the Sonic is a waste of time also and should be replaced by the Cruze Hatchback (5 door).
Honda realized that the Element was competing against the CR-V and the small sales number of the Element led to it being discontinued. Chevy needs to realize the expense of having three small vehicles like the Spark, Sonic and Cruze in the North American Market is plain stupid! Chevy needs to consolidate it’s money and efforts under the Cruze. They need only offer three variations of the Cruze: Sedan, Hatchback and possible Wagon. I this way they will saving money due to shared components with very similar production needs to be made on the same production line / factory. I believe this is a better strategy for the North American Market.
August 4th, 2012 at 8:22 pm
TJ @ #11 I believe tehy classes are decided by interior and trunk volume. Over all size may not be as much of a factor. Besides what was considered one class years ago may not be by todays standards. The original Mustang was considered a compact car . Pintos were subcompacts . Minis ( originals) were micro cars.
August 4th, 2012 at 8:28 pm
Pedro,
The current Mustang is almost dimensionally the same as the 1st Gen cars . Wheel base is a inch or so off and overall length is with in inches. The difference is curb weight. 100s of lbs more because of safety and emission crap all the electronic gizmos they pack in cars. The Camaro and Challenger are both A LOT bigger because they were built on borrowed architecture. That is why the new SRT Cuda will be smaller than the Chally. I would bet the next Camaro will be also probably built on the platform shown with this years concepts in Detroit . ,
August 4th, 2012 at 8:47 pm
The new Stang is longer by 7 in, wider by 5in wheelbase is the same and much heavier as well, all these cars would have better handling and all around performance if they were smaller and lighter, and could get better mileage as well. The Cougar of a few years ago was a good example, not a good car, but the size was right for the segment
August 4th, 2012 at 8:48 pm
I’ve read that the next Camaro will be on the same platform as the ATS, so it should shrink to about the size if the ’67-’69. At least I hope so.
August 4th, 2012 at 8:53 pm
To me, Chevy needs the Sonic, but not the Spark in today’s U.S. market. I’d like to see a Cruze hatch, especially with a diesel. That could be an alternative to Prius for hatchback loving mpg freaks like myself.
August 4th, 2012 at 9:21 pm
Pedro ,
The Mustang numbers I found are as follows,
64-70 Wheel base 108 ”
Length 181.6-187.5
width 68.2-71.7
height 51.2-50.5
wieght 2445-3128
05-09 wheel base 107.1
length 187.6
width 74.0
height 54.5
weight 3350-4040
10-12 wheel base 107.1
length 188.1
width 73.9
height 55.6
weight 3400-3940
So straight up comparison new vs old
wheel base new -.9 inches
length 05-09 vs 69-70 + .1 inches
width + 2.3 inches
height 05-09 vs.69-70 +4.0 inches
weight 05-09 vs 69-70 + 250/900 lbs
So what I’m seeing in these numbers as far as the Mustang goes is it’s pretty close in all areas but weight which is pretty much what I said in my 1st post .
August 4th, 2012 at 9:26 pm
I read somewhere that that last Cougar was to have been the 3rd Gen Ford Probe. Not sure why it became the Cougar other than to give Mercury a entry into that class of cars and maybe to attract younger buyers to the brand. Ironic that the Probe was to be the Mustang . Except for the purists that raised hell about a Japanese sourced car with no V8 and FWD being a Mustang. Here we are 23 years later and the Mustang is still kicking and the Probe is a memory.
August 4th, 2012 at 10:53 pm
Today’s Probe is called a Focus hatch, but it has two more doors.
August 5th, 2012 at 8:38 am
I have also heard the new Camaro will be built off of the ATS platform. No reason to think that the Camaro would be any heavier than the ATS (so that would put it at 3400 lbs. or lighter; hopefully). The next iteration of ‘Pony’ cars are all destined to get trim/smaller (smart move too). Ed Welburn has stated that GM’s next ‘quest’ (or one of them) is to lighten up the vehicles (and we all know that that is what is needed) to help with mileage.
August 5th, 2012 at 10:13 am
None of these pony, er.. Clydesdale cars could go FWD it would be suicide, they just need to lose weight and girth , because the good ole boys, will always buy old ones and fix them up!
August 5th, 2012 at 11:07 am
The ATS is rear wheel drive so the new Camaro would not go FWD.
August 5th, 2012 at 11:17 am
Precisely!
August 5th, 2012 at 12:05 pm
Just because the Camaro will change to the alpha platform doesn’t mean it will be any smaller or as light as the ATS. What I find interesting is that the 2015 Mustang will become longer, wider and have an independent rear end,as the Camero does. As time has proven,these two competitors hardly stray far apart from one another.
August 5th, 2012 at 12:41 pm
Mustang will go to non-retro styling in 2015 for the first time in ages. It will be interesting to see how that goes in what seems to be a nostalgia-driven market.
August 5th, 2012 at 12:48 pm
Longer, wider and most likely heavier, don’t these guys ever listen to the enthusiasts, bigger is not better, not in that segment! At least they have managed not to bloat the Corvette as well.
August 5th, 2012 at 2:25 pm
Ya know Kit, I like the look of the 2015 Mustang,but then, it will have given up that “pony-ness” which made it an icon. The 2015 could just as well be a Taurus or a RWD Fusion. If it sells, it will be because it is an agressive good looking sedan and not because it’s a Stang! As said,” If it ain’t broke don’t fix it!” Kinda sad, in a way!
August 5th, 2012 at 2:42 pm
I suspect the 2015 Mustang is aimed at the reality that the 70 year old “boomers” are moving to Avalons and Buicks, and they need to go after younger Mustang buyers. Still, the current Mustang seems to sell to younger people. It seems that nearly all of the V-6 Mustangs are driven by middle age or younger women.
The 2015 still has some Mustang design cues, like round headlights, but yeah, it doesn’t scream “Mustang” like the current one. Not even close.
August 5th, 2012 at 7:15 pm
If the Big 3 want to sell pony cars to younger buyers the prices need to come down. I know that won’t happen ,but the prices have become ridiculous. When I bought my 89 GT in oct of 88 base price was $13272 as sold at $15178.The price has doubled but salaries haven’t . I was 25 when I bought it. How many 25 year olds can afford a $32K car today? The only good thing now is interest rates are a ton better than when I bought it. If I remember right it was 11.99% .
August 5th, 2012 at 9:13 pm
That ’89 Mustang would sell for $28,079 in 2012 dollars, according to a site I found converting for inflation. Considering the huge difference in content between the ’89 and a new one, the ’89 doesn’t seem like such a bargain. The same certainly applies to my ’89 minivan.
I doubt that many 25 year olds buy any new cars, except for spoiled rich kids who buy them with daddy’s money. What a difference from the 60′s and 70′s in my home town of Kokomo, Indiana. In the 60′s, at least, any high school graduate could get hired by GM or Chrysler, and after a few months, buy a new car. Those were the days when the UAW had the power to get truly “middle class” wages for production workers.