TOP 100 RACING SITES
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| Michigan is Still MoTown For Asian Carmakers As Well As GM-Ford-Chrysler The Motor City, even after this great downsizing and flogging of General Motors and Chrysler, is far from dead in the car business as some would have you believe.I was struck by this quote today in The Wall Street Journal: "It's a pretty safe bet that Detroit is not going to be Motown in the very near future," said John Heitmann, a professor at the University of Dayton who studies the auto industry.The story goes on to talk about the growth of the auto sector in China and India relative to the U.S. Couple of things to remember:Automakers may not be building any new assembly plants in Michigan, but there is a reason why Toyota, Honda, Hyundai-Kia and Nissan all have major tech centers in the Ann Arbor-Farmington Hills area. There is more automotive intellectual capital here than most places on earth. Michigan, I would predict, will remain a major intellectual hub, and vehicle testing hub, for the auto industry.You know where the technical development for the Toyota Tundra, Avalon, Camry, Lexus RX, Nissan Altima and Titan, Hyundai Sonata, Santa Fe and Veracruz were largely carried out? Michigan.You know where the Chinese and Indian carmakers testing the waters for the U.S. market do most of their vehicle certifications? Michigan. You know where the nation’s police car standards are set and re-set? Michigan.There had been some wacky estimates of the U.S. auto industry going to 20 million units a few years ago. But let’s not get carried away. Without the recession, the real demand is probably at about 13 million right now, up from the 10 million we will likely see this year. But consider that you have two generations of consumers/drivers coming up, Gen Y and the Gen Z(born after 1996) that are bigger than the baby boom. And with baby boomers having a lot of living and car buying to do yet, that sounds like a lot of vehicles to buy. A lot more than we are selling today, and well North of 13 million by 2015-2020 when the financial and demographic cycles should again favor car buying.True, no-one is looking to reclaim an old assembly plant in Michigan. Brownfield auto plants are not popular with automakers. And none of them want to take over a plant that has a UAW Local nearby. That’s just the truth.It’s tough to think of a city with an average house price of $18,000 as the hub of anything. But Detroit isn’t just about the city of Detroit. You have to consider all of Southeast Michigan as the hub.Ford is still in Dearborn, and doing quite well. Thirty miles to the West is the Ann Arbor hub. The tri-angle stretching from Auburn Hills, down to Detroit, West to Ann Arbor with Farmington Hills in the middle, is really MoTown.Say what you want about China and India as growth markets. But the volume of vehicles that earn auto companies their biggest profits get sold in far greater numbers in the U.S. than elsewhere. If the U.S. wasn’t so important, than why are Fiat, Renault, Mahindra and Mahindra, Geely, Chery, BYD and Great Wall all trying to hatch an entry, or re-entry, into the U.S. market at the same time Saturn, Saab, Pontiac and Hummer are exiting?Just questions to ponder for those ready to toe-tag Detroit. rss.businessweek.com |
Team notes: Drivers set to make midseason push at Daytona NASCAR team reports as the Sprint Cup Series makes its second stop of the season at Daytona International Speedway for its annual ... rssfeeds.usatoday.com |
Johan de Nysschen speaks: Volt is a car for idiots In the politically-correct world of corporate America, rarely do you see an executive throw down the gauntlet or talk a little trash. But then, Audi of America President Johan de Nysschen isn’t American and he proudly speaks his mind. Thus was the case when he reportedly called the Chevrolet Volt “a car for idiots” at a recent press event. I give him credit for taking off the mitts before he takes a swing. That kind of honesty is refreshing. Other than General Motors Maverick-in-Chief Bob Lutz and Tesla Motors hip shooter Elon Musk, it’s a prim and proper bunch occupying the C-suites. But after admiring his moxie, I part company with de Nysschen on this one. First of all, he gets 10 demerits for back pedaling. On Audi’s Facebook page, de Nysschen later wrote, “I do not specifically recall using the term ‘car for idiots.’” Well, the journalists who were present did, and an Audi spokesman told me that they aren’t fighting it. Johan, if you think the car won’t sell or that its business case is a big-time loser, stick to your story. More to the point, de Nysschen’s comments about the Volt are off the mark. On Facebook, he wrote: “Returning to the Volt, my point was simply one of its economic feasibility today. The 50% or so price increase that the Volt represents over a similar gasoline car cannot be offset through the savings from reduced fuel consumption. The only way to offset the extreme premium for the Volt is through taxpayer-funded subsidies. So I question if that makes economic sense.” Of course it doesn’t make economic sense. But the Toyota Prius didn’t make money from day one, either. New technology rarely does. What the Volt will do is spark interest in electric cars and help get more real-world driving with lithium ion batteries so carmakers can make improvements and reduce costs. It will also get cities thinking about an putting up charging stations so urban dwellers can charge their cars even if they don’t own a garage. Power utilities will think about grid capacity and setting consumers up with the right charging equipment in their homes. In short, it will help electric-drive technology get from cocoon to flight. Whether it succeeds or not, the Volt and other profit-challenged cars like the Tesla Roadster and Nissan Leaf will at least be necessary steps toward the electrification of the car. That sounds far from idiotic. rss.businessweek.com |
For Martin, Finishing Second Wouldn’t Mean Falling Short Mark Martin has had a resurgent season as a teammate of Jimmie Johnson, who is expected to clinch his fourth straight Cup title on Sunday. nytimes.com |
French Court Overturns F1 Life Ban Against Briatore The Formula One authority had banned the former boss of the Renault Formula One team from ever taking part in the sport again for his role in a plot to rig a race. nytimes.com |