JEREMY CATO
From Friday's Globe and Mail Published on Thursday, Jan. 01, 2009 11:46PM EST Last updated on Thursday, Apr. 09, 2009 9:50PM EDT
Every crisis also presents an opportunity, and so as 2009 dawns, the global auto industry faces the greatest opportunity in its history. It is the chance to reinvent itself through its products and how they are delivered.
Cynics will suggest this is all a load of hooey, that the car business is a backward, hidebound relic of the past. They are wrong.
There is great creativity in the auto industry, though much of it has been held in check by management without vision and courage, labour without commitment and a co-operative spirit, and governments unwilling or unable to recognize the value of an industry that employs millions working at well-paying, high-value jobs that often require unimaginable levels of both imagination and expertise.
Bob Lutz, the septuagenarian vice-chairman in charge of General Motors product development, summed up the importance of an auto industry, and a manufacturing industry in general, this way in a speech late last year to the Public Relations Society of America's conference in Detroit: "We sort of convinced ourselves that we could become or maintain the wealth of the nation by basically cutting each other's hair and mowing each other's lawns. Only works until the clippers wear out and the lawnmower breaks, at which point you are stuck because you haven't really added any value.
"There are only two ways to create value: You either get something out of the ground, like oil or coal, and sell it, or you take raw materials and you assemble them into something that is worth more than the price of the raw materials put together, and that's called manufacturing; that adds value. And I think this country needs … maybe we are having the awakening."
The awakening? The auto industry must have an awakening of enormous consequence if it is to pull out of the global slump into which it is now mired.
But this won't be easy.
Every new car is an assemblage of finely interwoven materials and devices; some 30,000 parts go into the average new car. Buyers expect them to work seamlessly and easily — and now also cleanly and efficiently — for at least 10 years or 240,000 km.
Breakdowns are unacceptable. Excessive greenhouse gases and other pollutants are unconscionable. Big price tags are for the most part unaffordable. Oh, and the seats should be comfy and supportive, the technology instantly usable without once cracking the owner's manual, performance and braking must be astounding and everyone on board should be able to walk away from a head-on collision at 55 km/hour without a scratch.
And no ugly cars, either.
The challenge of making good and popular vehicles is a tough one. Now it is being complicated further by tight credit markets, weak economies and an evolving patchwork of government regulations which force auto makers operating on a global scale to meet relatively minor differences in emissions and safety rules from country to country, province to province, state to state.
The only way out for car companies is to create a raft of innovative new models. They're coming, too, for the 2009-10 model year and beyond.
Look for an explosion of new gas-electric hybrids, for instance. Honda is rebooting its Insight brand name with the launch of a four-door hatchback that should be priced in the $20,000 range and deliver exceptional fuel economy and the lowest of emissions. The Insight could very well turn out to be the least expensive hybrid on the market.
Still, we haven't seen the all-new Prius yet from Toyota. It will be unveiled later this month at the 2009 Detroit auto show.
And this year Ford will begin selling its first hybrid sedan, the Ford Fusion hybrid, which the company says gets far better fuel economy than its rival, the Toyota Camry Hybrid.
General Motors will also continue its rollout of gas-electric hybrids, including the new Cadillac Escalade. Mercedes-Benz, too, will get into the hybrid act this year with a gas-electric version of its S-Class sedan, though it is not clear when this car will go on sale in Canada.
More diesels, too, are coming. BMW has just launched its 335d and a diesel version of its X5 sport-utility. BMW claims a 0-100 km/h time of 6.2 seconds for the 335d and the X5 twin-turbo diesel is good for 0-100 in 7.0 seconds. Yet, according to the European test cycle, combined fuel economy ranges from 6.7 L/100 km for the 335d to 8.2 L/100 km for the X5.
Audi, too, has plans to introduce a diesel version of its Q7 SUV and Nissan says it will have a diesel Maxima in 2010. They join others, first among which is Volkswagen with its TDI diesel technology in the Jetta and Jetta wagon.
That is just a quick look at what's coming from a powertrain perspective — an alternative powertrain perspective. We are, of course, interested in what other promising new models are coming. These cars give the industry a chance to prove to the world that it is seizing the opportunity of a crisis.
2010 Ford Fusion Hybrid
Ford says its Fusion hybrid will be the most fuel-efficient midsize sedan on the market and much better than its key rival, the Toyota Camry Hybrid.
"Our overall strategy is to ensure that with every new vehicle we introduce, we're either the best or among the best in fuel economy," says Derrick Kuzak, vice-president of global product development for Ford. "Clearly fuel economy … is at the top of the list of customer wants."
When: Spring 2009
Price: About $30,000 or less
Fuel Economy: The Fusion will get 5.7 city litres per 100 km/6.5 highway.
What's special: Praveen Cherian, engineering team leader for the Ford Fusion, says the auto maker was able to make big fuel economy gains by taking a lot of little steps. One of the biggest fuel savers is the air conditioners. On the Ford Escape hybrid, the air conditioner is powered by the gas engine, so once it's on, fuel savings are minimal. But in the Fusion, the air conditioner is electric-powered. The car's battery is also 23 kg lighter than the Escape hybrid's battery, and there are many small tweaks that improve its aerodynamics.
2010 Honda Insight
Honda officials won't say it, exactly, but they were stung by their very limited success with hybrids, even though the original two-door Insight was the first hybrid sold in North America more than a decade ago and it remains the most fuel efficient car ever certified. The 1999 Insight was lost in the shadow of the vastly more successful Toyota Prius. So Honda is rebooting the Insight brand name with a new and bigger version designed to take on the Prius directly, but at a lower — much lower — price.When: The new Insight will be unveiled on January 11 and go on sale in the spring.
Price: about $20,000
Fuel Economy: Equal to the Honda Civic Hybrid, on which the hybrid technology here is based: 4.7 city litres per 100 km/4.3 highway.
What's special: We've seen concept versions and Honda officials confirm that this Insight is bigger, more powerful and more functional than the original Insight, but, more importantly, it is on par with the Prius of today. Perhaps the most important innovation of all is on the manufacturing side. Honda has driven down costs to make this hybrid the least expensive of its kind on the market.
2010 Toyota Prius
The Prius is the world's best-selling hybrid. For Toyota, it is a showcase of engineering and manufacturing expertise. So in re-making the car, Toyota can be expected to improve performance and functionality, and stretch the design in new ways. A picture of it has been leaked onto the Internet and Toyota confirmed its accuracy.When: To be unveiled January 11 at the Detroit auto show.
Price: NA (current car starts at $27,400)
Fuel Economy: Should be better than the current 4.0 city litres per 100 km/4.2 highway
What's special: Rumours have been swirling that Toyota may create a separate brand for its Prius hybrid car and could add both larger and smaller Prius models to the lineup. Adding to the intrigue, Toyota will show a battery electric concept at the Detroit show.
2010 Mazda3
The outgoing Mazda3 has been a global hit. Mazda has built two million Mazda3s since launch in late 2003 and won some 90 awards around the world. It is also Canada's third best-selling car and globally, the 3 accounts for about one-third of all Mazda sales. In updating the 3, Mazda reworked the design, improved performance and refined the ride and handling.When: Late January.
Price: The base car should start at under $16,000.
Fuel Economy: With the four-cylinder (148 hp) it's up 10 per cent to 8.6 litres/100 km in the city, 5.9 on the highway. With the manual transmission, fuel economy climbs to 8/1 city/5.9 hwy. The more powerful 2.5-litre four (167 hp) is rated at 10.1 city/6.9 highway for the manual and 9.2 city/6.9 highway for the automatic.
What's special: The design. The most dramatic change is the new five-point grille, but the redesigned front end also works to drive cooling air to the engine and front brakes. And it makes the car more slippery, more aerodynamic. And it remains one of the best-handling small cars you can buy.
2009 Nissan 370Z
The updated Nissan 370Z sports car, all 332-horsepower of it, is a lighter, tighter, less expensive version of the 350Z. Enthusiasts will love the 3.7-litre V-6 engine under the hood, this one with the better breathing thanks to variable valve timing, variable valve lift and a redline of 7,500 rpm. And the six-speed manual transmission — shorter throws, tighter gates, crisper engagements — is excellent.When: January 2009
Price: about $40,000 and up
Fuel Economy: 11.6 city litres per 100 km/7.7 highway.
What's special: This Z has lost about 50 kg versus the 350. In addition, the designers have delivered a triumph of improved proportions. The short front overhang is perfectly sports car-ish and the broad fender flares and low centre of gravity project an all-business look. At the rear, the quarter panel area is less busy and the "boomerang" style head- and taillights are oddly compelling.
2009 Lexus IS Convertible
Slap a C on the rear end of the IS 250 and IS 350 models and you've got a brand-new convertible based on the current IS sedan. Call them the 250C and the 350C. The folding-hardtop gives the new car the ability to compete with Europeans like BMW's 3-series, the Volvo C70 and the Mercedes-Benz CLK Cabriolet. Engines: Both V-6, one at 204 hp and the other at 306 hp.When: Spring 2009
Price: high-$30,000s or low-$40,000s to start
Fuel Economy: NA
What's special: The fast-folding three-panel roof is made of lightweight aluminum, which Lexus types say contributes to smooth and quiet operation. "A unique roof-brake mechanism slows the closing roof panels as they approach the windscreen area" and "the top completely retracts with no elements remaining in view," says the press kit.
2009 Audi Q5
Audi will get into the game against rivals such as the Acura RDX, Infiniti EX35 and BMW X3 with this new, smaller crossover wagon. The Audi design language is obvious. The 3.2-litre six-cylinder power plant creates 270 horses.When: Spring or summer 2009.
Price: $40,000-ish.
Fuel Economy: NA.
What's special: The large Q7 has limited appeal for a larger premium car buying audience. The Q5 gives Audi an offering for suburbanites who want a crossover with premium styling, features and, above all, sporty handling.
2010 Cadillac SRX
The original version of Cadillac's crossover never caught on very well, perhaps because the long, station wagon look was not quite right for the segment. This new SRX is smaller, seating just five, and the more compact dimensions make for better proportions.When: Late 2009.
Price: $50,000 and up.
Fuel Economy: NA.
What's special: The design cues are straight off the CTS sedan and that's good. Better still are the CTS's driving dynamics, which we expect to see carried over into this crossover.
2009 BMW 335d
It's the torque that gets you — 425 pound-feet of it at a fabulously low engine speed of 1,750 rpm. That's more than the company's high-performance M3. This is a fast, fast diesel and it is, overall, about 30-per-cent more fuel efficient than its gasoline counterpart, the 335i. A racy diesel, in other words. We like it and like driving it.When: Now.
Price: $49,700.
Fuel Economy: A combined 7.1 litres/100 km, and the 0-100 km/hour time of 6.2 seconds is nothing to sniff at.
What's special: This BMW is a relatively clean diesel thanks to an emissions system BMW calls BluePerformance. This technology, like Mercedes-Benz's AdBlue and Volkswagen's new TDI, allows diesel engines to meet 2009 emissions standards in all 50 U.S. states, as well as in Canada.
2010 Porsche Boxster
The Boxster is our favourite Porsche for one simple reason: It is the purest, simplest and least expensive of the Porsche sports cars. For '10, the re-design is mostly evolution rather than revolution. The front-end is slightly reworked with new, larger head lights.When: Spring 2009.
Price: Around $58,000 to start.
Fuel Economy: At least 10.1 city litres per 100 km/6.8 highway.
What's special: We're told that Porsche is has two new engine options: a base 2.9-litre making 255 horses and a more powerful 3.4-litre engine rated at 310 horses. Yippee!!!
2009 BMW 7-series
This latest 7 will not spark the same visceral explosions as the old one. BMW is returning to simple, sleek lines, eschewing the "tearful" headlights and the over-the-top curves of the lower lid.
Most of all, the new design has once and forever tidied up the bulging trunk lid. Some critics dubbed it the "Bangle butt" in a rather negative allusion to BMW chief designer Chris Bangle. But where the outgoing 7 was startling, even jarring, the incoming one is comforting and elegant.When: March 2009.
Price: $104,900 to start.
Fuel Economy: NA.
What's special: Under the hood of the 750i is a new 4.4-litre, 400-horsepower, twin-turbo V-8 engine. The company claims a 0-100 km/h time of 5.2 seconds. To keep that power under control, BWM has a new active air suspension which uses something called "Dynamic Damping Control." It allows the driver to choose shock-absorber firmness, transmission shift characteristics, engine-throttle response and power-steering assist. There is also an improved iDrive controller, a roomier backseat, and a dashboard angled toward the driver.
2010 Porsche Panamera
Porsche is expanding its lineup with a new four-door sports coupe. It's gorgeous.When: Summer 2009.
Price: $130,000-plus.
Fuel Economy: NA.
What's special: Porsche officials say it will handle like a Porsche, only with more room. The entry level engine will likely be a 3.6-litre, six-cylinder power plant rated at 300 horses. A higher-end S version will sport a turbo V-8.
2010 Aston Martin Rapide
Aston Martin is going head-to-head here with Porsche's Panamera and, to a lesser extent, Mercedes-Benz with its CLS. This is what they call the four-door coupe segment and, to be fair, Mercedes created it.
When: Mid- to late-2009.
Price: $150,000-plus.
Fuel Economy: NA.
What's special: The Rapide should deliver high-performance handling AND seating for four. Nice combo. We expect the engine to be closely related to the roaring V12 of the DB9.
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