TOP 100 RACING SITES
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| Dennis quits as McLaren chief Ron Dennis has quit as chief executive of McLaren, handing over to team principal Martin Whitmarsh, the Formula One team. foxsports.com.au |
Martin saves fuel at Michigan, bags third win of season Mark Martin saved just enough gas to outlast Jimmie Johnson and Greg Biffle, and held on for his third NASCAR Sprint Cup victory ... rssfeeds.usatoday.com |
Will hybrids and a weaker yen propel Toyota back into profit? According to a report in today’s Yomiuri newspaper, Toyota plans to raise its annual production forecast. The Yomiuri reckons the Japanese automaker will now make 6.67 million vehicles this fiscal year, compared to its most recent official forecast of 6.3 million. If the story proves correct—and Toyota hasn’t confirmed the Yomiuri　article—much of the credit must go to hot-selling hybrids. The new Prius, aided by government incentives for cleaner, greener cars, is Japan’s best selling auto. Prius sales have also made a solid start in the U.S. where it is comfortably outselling the Honda Insight. The even newer Lexus LS250h hybrid sedan, a first Lexus offered only as a hybrid, has received 10,000 orders in Japan—twenty times Toyota’s monthly sales projection. And according to a separate report, Toyota is now planning to buy hybrid batteries from electronics giant Sanyo because its current supplier (Toyota controlled) Panasonic EV Energy cannot keep up with demand. Perhaps of more interest, though, is what all this will mean for profitability. After all, Toyota made a first loss in almost six decades in the fiscal year that ended in March. Meanwhile, critics of hybrids have claimed that because they require batteries, electric motors and other parts in addition to a conventional engine, the technology is too costly to drive earnings. (Nissan chief Carlos Ghosn, a long time skeptic, criticized hybrids at the recent unveiling of the Nissan Leaf electric vehicle.) Toyota says the boom in hybrid sales in sales won’t have a huge impact. At its most recent quarterly results, it announced a loss of $818 million for the April to June quarter and, despite sweetening its forecast, projected a loss of $4.7 billion for the full year. To me, though, that number looks conservative. Indeed, with the sales data improving (albeit from a low base) and the yen below the company’s projected level of 92 to the dollar, Toyota could even return to profit this year. For sure, analysts are more upbeat than the company. Andrew Phillips, who covers Toyota for KBC Securities in Tokyo, recently cut his net loss forecast from $2.9 billion to $210 million, citing improving sales volumes and better profitability at group companies. From a deficit of $210 million, it wouldn’t take much more of an improvement in the sales environment—or a weakening of the yen—for Toyota to be back in the black a year ahead of schedule. rss.businessweek.com |
Biffle excited about new engine, but hits Talladega with caution It doesn't matter where you are in the Chase going into this weekend at Talladega because it can all change in a split second. ... rssfeeds.usatoday.com |
Caddy tries to resurrect the wagon Will Americans buy wagons? History says no. And by history I mean after 1980. Sure, Subaru sells wagons quite successfully to some outdoorsy types on the coasts. You also see the occasionall BMW lover in a 3-series wagon. But the jury has been in for years. Americans would rather have a crossover suv of some kind. It’s easy to understand why. Wagons were America’s family car of choice before the minivan forced their near extinction. How nerdy does a car have to be for a minivan to beat it on pure coolness factor? Just think about fake wood-grain panel wagons and the picture is complete. Enter the Cadillac CTS sport wagon, which I took on a test run a week ago. It’s quite impressive. GM engineered a tight handling ride. The direct injection 3.6-liter V-6 is powerful and smooth and the fuel economy is pretty good with 26 mpg on the highway. Combined fuel economy is less exciting at 21 mpg. But this is a luxury car that gets 304 horsepower. That’s the same impressive combination that can be had in the Chevrolet Camaro RS. With the 2010 CTS, General Motors has proven that Cadillac is in step with what luxury cabins are all about. The dashboard and surrounding decor is as modern-looking as anything on the market. It’s more artistic than Audi’s interior appointments and just as posh as a Lexus. When you close the doors, for example, they seal shut automatically. It’s a nice touch that shows a bit of craftsmanship. The best thing about this wagon is the styling. GM didn’t just take the CTS sedan and stretch it back with some extra sheet metal. The company spent the money to design a different back end. It’s the right way to go. Design is subjective, but the CTS wagon looks like it’s cocked and ready to go. In the past, carmakers just stretched their sedans, creating oblong wagons with awkward design proportions. Past-generation Toyota Camry and Ford Taurus wagons come to mind. This one is actually a head turner. As fine a car as this is, don’t expect Americans to come pouring into showrooms for a CTS wagon. GM is launching a Cadillac SRX crossover suv at the same time. That will pull in many buyers who want a Caddy with some storage space. Plus, a lot of what makes this a good car have less to do with the fact that it’s a wagon and more from the fact that the CTS is the best car made by a resurgent Cadillac brand. Surely GM will sell a few thousand CTS wagons. But don’t expect this car to resurrect a market that has been dead for years. It’s a shame, too. Most buyers who want a luxury car with cargo space would opt for the SRX, which gets lower fuel economy with a combined 23 mpg. The CTS wagon has 53.4 cubic feet of cargo space compared with 61.2 cubic feet in the SRX. So most buyers will opt for worse fuel economy and pass up on the tighter handling of the CTS wagon just to ride up high on the road and get a few more feet of cargo space that they’ll probably never use. Maybe this wagon will break through. If not, there’s always the European market. rss.businessweek.com |