xcel
08-06-2008, 12:31 PM
From Hemi powered and "bling" marketed Hybrids to products domestic auto execs say “we” want to buy, reality is clearly being missed. (http://www.cleanmpg.com/forums/showthread.php?p=132811)
http://www.cleanmpg.com/photos/data/501/Chrysler_Aspen_Hemi_Hybrid_-_19_city_-_21_highway.jpgWayne Gerdes – CleanMPG (www.claenmpg.com) – Aug. 6, 2008
Chrysler’s 2009 Aspen Hemi Hybrid – 19/20 mpg city/highway.
The Motor City, once home to the American automobile's best and brightest is now home to an executive core that appears to be listening to its own upbeat press releases. While fuel costs have nearly tripled in 4 short years, the Big 2.5 continue to lack direction and a future business model to cover the contingencies highlighted by the question, “What if... ?”
Focusing on the Problems
Alliance of Automobile Manufacturers
Although the alliance represents more manufacturers than just the Big 2.5, their purpose since inception has been unwavering opposition of any and all legislated increase in corporate fleet average fuel economy. With grandiose declarations about lost jobs and competitiveness, their lobbyists have succeeded. The Big 2.5 are jettisoning jobs faster than at any time since the Great Depression even though the current CAFÉ standards have not changed in over two decades.
Unfortunately, the law of unintended consequences has now convinced the Big 2.5 they won a war with last year's energy bill -- the 2020 CAFÉ standards increase mandates a paltry 28.6 mpg for trucks, Van’s and SUV’s while passenger cars are require to hit the low target of 35.7 mpg (approximately 26 mpg on the 08 EPA in reality). With the bar for success set so low, Toyota's support of Alliance goals has systematically destroyed any chance the Big 2.5 had to succeed in a future of higher fuel prices and fuel supply constraints.
Ford
The new Taurus and Taurus X were launched at the 2007 Detroit Auto show. Unfortunately, the nameplate was simply affixed to the poor sales performance 500 and Freestyle vehicles with additional HP added to the mix. While Ford execs were exalting customer response to name recognition including benefits to corporate bottom line calculations, most in the audience were shaking their heads in amazement. Why would a Fortune 100 company even consider re-badging what were already market failures in an attempt to regain market share? Was this a sign of things to come?
With Ford’s upcoming EcoBoost solution for their 3.5L engine equipped vehicles, HP and Fuel economy are supposed to increase by up to 20%! 20% of what? The 3.5L equipped Ford Edge is EPA rated at 18 mpg combined. Will a 22 mpg combined rating move people to the showroom? At $3.75 for a single gallon of fuel, it will take $14,000 to fuel an EcoBoosted Edge -- and that does not include the massive deprecation hit a purchaser will receive over the next 5-years/75,000 miles.
What is Ford’s hope for the future? Perhaps they believe the upcoming European based Focus and Fiesta will pull them out the danger zone. Unfortunately, these vehicles will be lacking the 50 and 60 + mpg European super diesels and will instead be equipped with EcoBoost. A possible 20% increase in Fuel Economy over the current Focus just won't be enough!
GM
Fuel efficiency promotion from GM’s own marketing team has taken center stage the past few years and proved itself the biggest bait and switch since WMD’s and terrorists in IRAQ caused the US to go to war.
“From gas-friendly to gas-free, GM is leading the way toward innovative energy solutions.” -- a lofty slogan heralding the solution. A wonderful sentiment, but one lacking an actual product delivering on the promise.
What about flex fuel? Did GM really believe E85 marketing could cure lagging sales or was it really just the CAFÉ standards dodge it appears to have been?
“GM has the most models with EPA estimated 30 mpg or higher highway fuel economy.”
Let's take a look at the veracity of this claim.
HHR – 25 mpg combined (Stick and Auto).
Cobalt Sedan, Cobalt Coupe and G5 – 28 combined (Stick, Auto and XFE)
Aveo sedan and hatch – 29 mpg combined (Stick and Auto).
Vue Hybrid – 28 mpg combined
Aura Hybrid – 29 mpg combined
Vibe – 28 (1.8L Stick and Auto)
Malibu and Malibu Hybrid – 27 mpg combined (I4 Auto)
Astra – 27 mpg combined (Stick and Auto)
G6 coupe and sedan - 25 mpg combined (Stick and Auto)
The future Volt platforms and possibly the 1.4L DI-Turbocharged Cruze are cause for hope but some of the pieces and parts have yet to leave the drawing table. This makes for quite the gamble in a day and age when the corporation is losing as much as $15.5 Billion in a single quarter (2008). The time for action was long ago.
Chrysler
The Chrysler (http://www.chrysler.com/en/) website says it all. A Chrysler 300 is shown with the headline “Vanity plates would be redundant.” Marketing an 18 mpg rated 300 with fuel costs just below $4.00 a gallon might be good for the bottom line but with sales off 58% last month and almost 40% for the year, the public is not deceived. Chrysler is missing what the public sees and needs.
Throughout the rest of their lineup, the best FE available is delivered by the aging Avenger at a whopping 26 mpg combined.
Ford’s Mulally walked into a company on the brink. GM’s Wagoner has been orchestrating his company's own demise for years and Cerebrus’ Nardelli has been dealt a whole slew of inherited problems.
Did any of the three get the message? Will they stay the course or choose to survive?
http://www.cleanmpg.com/photos/data/501/Chrysler_Aspen_Hemi_Hybrid_-_19_city_-_21_highway.jpgWayne Gerdes – CleanMPG (www.claenmpg.com) – Aug. 6, 2008
Chrysler’s 2009 Aspen Hemi Hybrid – 19/20 mpg city/highway.
The Motor City, once home to the American automobile's best and brightest is now home to an executive core that appears to be listening to its own upbeat press releases. While fuel costs have nearly tripled in 4 short years, the Big 2.5 continue to lack direction and a future business model to cover the contingencies highlighted by the question, “What if... ?”
Focusing on the Problems
Alliance of Automobile Manufacturers
Although the alliance represents more manufacturers than just the Big 2.5, their purpose since inception has been unwavering opposition of any and all legislated increase in corporate fleet average fuel economy. With grandiose declarations about lost jobs and competitiveness, their lobbyists have succeeded. The Big 2.5 are jettisoning jobs faster than at any time since the Great Depression even though the current CAFÉ standards have not changed in over two decades.
Unfortunately, the law of unintended consequences has now convinced the Big 2.5 they won a war with last year's energy bill -- the 2020 CAFÉ standards increase mandates a paltry 28.6 mpg for trucks, Van’s and SUV’s while passenger cars are require to hit the low target of 35.7 mpg (approximately 26 mpg on the 08 EPA in reality). With the bar for success set so low, Toyota's support of Alliance goals has systematically destroyed any chance the Big 2.5 had to succeed in a future of higher fuel prices and fuel supply constraints.
Ford
The new Taurus and Taurus X were launched at the 2007 Detroit Auto show. Unfortunately, the nameplate was simply affixed to the poor sales performance 500 and Freestyle vehicles with additional HP added to the mix. While Ford execs were exalting customer response to name recognition including benefits to corporate bottom line calculations, most in the audience were shaking their heads in amazement. Why would a Fortune 100 company even consider re-badging what were already market failures in an attempt to regain market share? Was this a sign of things to come?
With Ford’s upcoming EcoBoost solution for their 3.5L engine equipped vehicles, HP and Fuel economy are supposed to increase by up to 20%! 20% of what? The 3.5L equipped Ford Edge is EPA rated at 18 mpg combined. Will a 22 mpg combined rating move people to the showroom? At $3.75 for a single gallon of fuel, it will take $14,000 to fuel an EcoBoosted Edge -- and that does not include the massive deprecation hit a purchaser will receive over the next 5-years/75,000 miles.
What is Ford’s hope for the future? Perhaps they believe the upcoming European based Focus and Fiesta will pull them out the danger zone. Unfortunately, these vehicles will be lacking the 50 and 60 + mpg European super diesels and will instead be equipped with EcoBoost. A possible 20% increase in Fuel Economy over the current Focus just won't be enough!
GM
Fuel efficiency promotion from GM’s own marketing team has taken center stage the past few years and proved itself the biggest bait and switch since WMD’s and terrorists in IRAQ caused the US to go to war.
“From gas-friendly to gas-free, GM is leading the way toward innovative energy solutions.” -- a lofty slogan heralding the solution. A wonderful sentiment, but one lacking an actual product delivering on the promise.
What about flex fuel? Did GM really believe E85 marketing could cure lagging sales or was it really just the CAFÉ standards dodge it appears to have been?
“GM has the most models with EPA estimated 30 mpg or higher highway fuel economy.”
Let's take a look at the veracity of this claim.
HHR – 25 mpg combined (Stick and Auto).
Cobalt Sedan, Cobalt Coupe and G5 – 28 combined (Stick, Auto and XFE)
Aveo sedan and hatch – 29 mpg combined (Stick and Auto).
Vue Hybrid – 28 mpg combined
Aura Hybrid – 29 mpg combined
Vibe – 28 (1.8L Stick and Auto)
Malibu and Malibu Hybrid – 27 mpg combined (I4 Auto)
Astra – 27 mpg combined (Stick and Auto)
G6 coupe and sedan - 25 mpg combined (Stick and Auto)
The future Volt platforms and possibly the 1.4L DI-Turbocharged Cruze are cause for hope but some of the pieces and parts have yet to leave the drawing table. This makes for quite the gamble in a day and age when the corporation is losing as much as $15.5 Billion in a single quarter (2008). The time for action was long ago.
Chrysler
The Chrysler (http://www.chrysler.com/en/) website says it all. A Chrysler 300 is shown with the headline “Vanity plates would be redundant.” Marketing an 18 mpg rated 300 with fuel costs just below $4.00 a gallon might be good for the bottom line but with sales off 58% last month and almost 40% for the year, the public is not deceived. Chrysler is missing what the public sees and needs.
Throughout the rest of their lineup, the best FE available is delivered by the aging Avenger at a whopping 26 mpg combined.
Ford’s Mulally walked into a company on the brink. GM’s Wagoner has been orchestrating his company's own demise for years and Cerebrus’ Nardelli has been dealt a whole slew of inherited problems.
Did any of the three get the message? Will they stay the course or choose to survive?
