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Wednesday
Apr212010

1907 White Steam Car

Totally cool, Jay Leno goes through the entire starting procedure of a steam car. As we always say a video is worth a gazillion words....enjoy!!

 

Tuesday
Apr202010

Brakes

Although the video features the Galaxie, the conversation is all about brakes. Its a great overview of disc brakes, calipers, brake pad material. 

 

Monday
Apr192010

Canadian Sales 3-10

The conclusion of the first quarter of the first new decade, of the new century after a tumultuous 2009, which was "pretty good" in Canada. With a quarter completed, the numbers are more meaningful, and in some instances compelling.

One thing has not changed, the auto industry still has to create a customer, and move iron to keep the wheels of the industry turning. After all the opinions and comments have been expressed, the constant is that a customer must be created....perhaps the social autosphere might even smooth some of the rough edges. Lets not forget; as taxpayers we are all stakeholders.

What are the numbers are telling us, and how the tea leaves are aligned.

Canadian Market: Is up by 15% at the end of the first quarter compared to the previous year (2009) an encouraging development, especially that 2009 was not a bad year. Any manufacturer that is not up by 15% YTD March 2010 is not trending with the market. The most glaring is GM, one gets the impression that in Canada GM is struggling to overcome the loss of Pontiac.

Value of Franchises: In case you did not know, a dealership is sold, the franchise is never sold (granted by a manufacturer), although there is a "valuation" to the various franchises. In Canada some franchises have diluted in value, while others have increased in value and desirability. You can draw your own conclusions from the numbers

Price of Gas: Until gas remains at $1.00 per liter or less for regular, the tendency and preference towards an all wheel drive utility vehicle (sound like a CUV) to transcend winter conditions (which we no longer seem to have) increases appreciably. In addition pick up sales have increased, with manufacturers focusing on commercial use/applications.

Diesel: Makes a compelling "branding difference" in the market. A few manufacturers that offer diesels are taking full advantage of the difference. Some folks buy an hybrid others a diesel to assuage their green conscience.

Credit: We never had in Canada the credit challenges experienced in the US, for some reason Canadians have piled on more credit, perhaps on the premise that good credit and low rates is less risky than bad credit until it becomes overwhelming. Auto industry sales are powered by credit! Lets see how it develops in the coming months with CSM (Citizen Main Street).

Parity: From our perspective parity between the CDN and US dollar is a moot point, Canadian prices were adjusted a long time ago. With values of used vehicles on an upward trajectory in the US, and a downward trajectory in Canada its a different parity landscape than a few years ago.  

Now the numbers:

CUV: The Ford Escape is the undisputed leader with 8,189 followed by the Honda CR-V 6,879 Hyundai Santa Fe 6,112 look at this Chrysler Journey 5,025 to the Toyota RAV4 5,090. Journey catching up to a RAV4?

CUV Luxury: Mercedes GLK 1,225 Audi Q5 653 Acura RDX 616 BMW X3 522 the bigger versions Lexus RX 1,660 Acura MDX 1,340 BMW X5 899  Mercedes M Class 886  Buick Enclave 844 Cadillac SRX 474 Lincoln MKT 255. You can conclude that styling "sells" in this segment.

Mid Size Sedans: Ford Fusion 3,947  Toyota Camry 3,921  Honda Accord 3,257  Nissan Altima 3,095 Hyundai Sonata 2,822  Chevrolet Malibu 2,486. The bragging rights go to Fusion!    

Entry Level Luxury: BMW 3 Series 2,372  Mercedes C Class 1,909  Audi A4 1,092  Infiniti G 1,009 Cadillac CTS 744  Genesis 675 Buick LaCrosse 659  Lexus ES 569  Acura TL 540. Would you ever think that Infiniti is ahead of all the others, just behind the Germans.

Compact: Honda Civic 11,794  Mazda 3 11,762  Toyota Corolla 9,241. Must be a case of Honda seeking redemption. 

Pick Up: Ford F Series 18,655  Dodge Ram 11,064  GMC Sierra 8,546  Chevrolet Silverado 7,590. Have you seen a Ford F350 Super Duty lately (it almost dwarfs a Peterbilt)?  

Pony Car: Camaro 1,001  Challenger 752  Mustang 652 (Sam Posey passed Parnelli Jones, with Mark Donahue still in the lead)

Miscellaneous: In no particular order vehicles that caught our attention Viper 8  Ferrari 23  Corvette 63 Kia Soul 1,943  Nissan cube 984  Porsche Panamera 78  BMW 7 Series 87  Maserati 31  Audi R8 23 Bentley 9  Toyota Venza 3,223  Toyota Prius 879.

If you enjoy perusing sales numbers, the complete breakdown by manufacturer and model....take a look.

Care to share your thoughts, leave a comment

 

Friday
Apr162010

Vro0m Ro0m

Good Morning!

from Gary SmithWe are alternating to caffe latte for the warmer months, this morning its caffe latte and biscotti...enjoy!

With the Canadian dollar at par with the US dollar there is renewed interest in "price parity" for all sorts of products, especially vehicles. Lets keep in mind that the differences are no as glaring as they were a few years ago (the last time our money was at par). It is interesting to see that various pricing strategies that are used by manufacturers to price a wide spectrum of goods, not just vehicles. 

The thing to watch, although the Canadian economy was not "abused" as much as the US economy in the past year. We will be reading that the US economy is gaining momentum much faster, than our Canadian economy. In addition prices of used vehicles that are slightly depressed in Canada, are a contrast to increasing prices in the US. 

From Deans Garage an impressive photo gallery of hot rods and custom cars take a moment to review the sketches.

Do you have an affinity for watches? An informative article/slide show on IWC.

Last week we briefly mentioned the developments with GM dealers in Canada. Yesterday we described what developed with GM dealers in our immediate area. At times it happens right under your nose! We are certain that you can draw your own conclusions, especially if you are involved in the business of the auto business.

By now you know that Ferrari unveiled the 599 GTO which encompasses an extensive knowledge transfer from Ferrari's F1 experience. How is your Italian? Take a look at the engine development, and the chassis/body development

Do you remember the Birdcage Maserati....take a look. If you remember....then Camoradi is a familiar name to you.

While we are talking of GTO's do you remember the famous/infamous Car and Driver GTO comparison from March 1964? A brief summary is here. From that comparison many a buff publication always wondered what engine was really under the hood of the muscle cars they were testing.

This will be of interest Genergraphics especially if you are "selling", really who is not selling?

 

 

Thursday
Apr152010

GM Dealers 

We were musing about what happened to some if not all GM dealers. Right under our noses, we drive by them regularly changes happened.

Where we live, there was a Pontiac/Buick dealer, a Chevrolet/Oldsmobile dealer, approximately 7 kilometers "up the road" there was another Pontiac/Buick dealer and another Chevrolet/Oldsmobile dealer. Yes...in a 10 kilometer radius in 2 different tows there were 4 GM dealers. 

This made sense when GM had 50% of the market, and there was a GM dealer at every corner or close. 

The first thing that went was Oldsmobile a few years ago, the Chevrolet/Oldsmobile dealers became Chevrolet dealers. At some point GM embarked on their "image program" and slowly the dealers rejuvenated their facades, with the 2 Chevrolet dealers doing extensive renovations. 

By the time GM announced that Pontiac was being eliminated, as you drive by, you begin to wonder what will happen to the Pontiac dealers, and on a slightly bigger picture what will happen to the 4 dealers in these 2 municipalities. 

One Pontiac dealer, probably the instant it reached an agreement with GM, quickly wound down its business, with the facilities quickly used to represent a Korean manufacturer. Yes...the Pontiac dealer became a Korean dealer almost overnight.

In the other municipality the Chevrolet dealer stopped representing GM, and the Pontiac/Buick dealer became/morphed into a Buick/GMC dealer. The Chevrolet dealer which had done extensive renovations, is no longer a Chevrolet dealer, wonder what sort of consideration this dealer received?

Now in both municipalities GM has 2 dealers, Ford has 2 dealers, Chrysler has 2 dealers, one Korean manufacturer has 2 dealers, Toyota has 2 dealers.

Its interesting to read about the ongoing turmoil in the GM dealer body, while its going on as we drive by to conduct our daily lives.

Some points:

  • The Korean manufacturer acquired immediate representation.
  • The 2 remaining GM dealers have less internal GM competition.
  • Surely some sales reps from the closed GM dealers probably migrated to the remaining two.
  • You have to wonder how many GM dealers in other locations became Korean dealers.
  • Does GM expect to win customers to Cadillac in "warmed over" premises, when the competition has glass palaces? Just a thought.