2010 Ford Taurus

Everyone reading my blog is familiar with the problems of the auto industry, specifically the American manufacturers. Ford is the only American company not going to the government well for a hand out! Mainly due to the foresight of Alan Mullaly, CEO of Ford, who arranged for lines of credit in 2007 when the capital markets were much better. In addition, Ford quality has improved substantially where they are on a par with the Japanese manufacturers.

Back in 1986 Ford set Ford's sales charts on fire with the new Taurus with a spacey stylish design. I was not a fan of the car in that I thought the styling was unusual and not to my preference. The drive was OK but unexceptional. Over the years the Taurus was downgraded to a rental car status.

Ford purchased Volvo in 1998 and one of the benefits was the Ford 500 which came out in 2005. The Ford 500 was underpowered and connected to a CVT transmission and did not sell well. The Ford 500 was based on the Volvo S80 platform and is one of the safest cars on the road. In 2008, the name was changed to the Ford Taurus and upgraded the powertrains.

I drove a rental 2008 Ford Taurus last summer when I was in New York city. My associate commented that he thought this was the one of the best American cars. It drove smoothly, handled well for a sedan and braked well!

The 2010 Ford Taurus is prime example of the quality car that American manufacturers are capable of producing. It has the 3.5-liter V-6 which makes 264 hp, which is connected to a six-speed automatic.. The Limited model comes with a different six-speed transmission along with paddle shifters.

They are resurrecting the SHO (Super High Output) model which is shown below. The SHO will have a twin-turbo, high output, twin-turbocharged 3.5 liter EcoBoost V-6 with an estimated 350 hp. That is a lot of power for a sedan!

GM Time To Pay The Piper

Today GM is starting to build some of the best cars in the company's history. The Cadillac CTS, Chevy Malibu, Pontiac G8, Chevrolet Corvette and the Chevy Silverado pickup are the best vehicles that GM manufacturers. Each of these vehicles is extremely competitive in it's class. I have driven each and they are impressive cars in driving dynamics, style, design, engineering etc. It appears that they may have turned the corner in realizing that they have to compete not only here in the U.S. but worldwide.

My issue with the American manufacturers has been a management issue. GM management traditionally has chosen to build cars as cheaply as possible. Which means that they would put a minimum number of dollars into product development, use parts that were as cheap as possible and then anticipate that Americans would continue to buy them like they always did.

Unfortunately, Congress in all their wisdom allowed every country in the world to compete here. Therefore, Americans realizing that there were better cars out there started purchasing Japanese cars due to the improved reliability. Then Americans discovered the European cars based upon driving dynamics and superior safety.

So here we are , tomorrow GM and Chrysler will turn in a restructuring plan to the Treasury department. Apparently, they will not report to a new Car Czar but an inter agency task force headed by Treasury Secretary Timothy Geitner and Economic Council Director Lawrence H. Summers.

GM now has to answer to Uncle Sam! It is time for some hard decisions! GM has to cut the number of models, currently GM has 60 models which average 50,000 sales a piece. Many of the models are almost exact duplicates ie. Buick Enclave, GMC Acadia and Saturn Outlook crossovers. GM has not had the money to to market all it's vehicles nor the development dollars to improve the existing models.

GM also has four times and many dealers as Toyota in the U.S. They have to supply all the different dealers with products which they can no longer afford to do. Dealers are protected by state franchise laws. When GM shut down Oldsmobile a few years ago, GM had to pay dealers $1 billion in settlements.

Then we have the issue of the United Auto Workers and the Canadian Auto Workers unions which have generous contracts for wages, healthcare and retirement benefits. The unions have been working with the auto industry so I will have to commend their management. But, this is a make it or break it situation!

Bottom line - GM will have to undergo major financial surgery! Eventually, I anticipate that GM and Chrysler will be put into a government sponsored bankruptcy. GM will probably survive but will exit bankruptcy a smaller more efficient manufacturer. Chrysler's fate does not look very promising!

New American Car Company - Tesla Motors

Most people are unfamiliar with Tesla Motors, they are an American auto manufacturer. They produce an electric car the Tesla Roadster which is one of my favorites. Actually, while most of the auto industry is in the dole drums due to the bad economy. This company has 1000 back orders on their production thru November and will be sold out thru 2009 shortly.

The Tesla Roadster is an exotic car and sells for $109,000. The Roadster is assembled in England by Lotus Motor. European deliveries of the Roadster and Roadster Sport will start in late June, and we will announce the location of our first European showroom (in London, UK) in the next few weeks

The company is also developing a four door sedan called the Model S. The department of Energy informed Tesla that they will disburse $350 million for their Model S within the next few months. The Obama administration has made it a high priority to move quickly on the Advanced Technology Vehicles Manufacturing Loan program.

Elon Mush, Chairman of the Board, Product Architect and CEO wrote this in his blog "I expect sales demand to strengthen further as this awareness grows. After all, what’s the point of driving another exotic sports car when it is slower than a Tesla and damages the environment? Already, the Tesla Roadster is the car of choice among the technology, business and Hollywood A lists – this year’s Academy Awards will be a lineup of Teslas – and we have never had to give a discount to anyone". See the Tesla Blog for more information!

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Can Detroit Build Hybrids?

Ford has hit a a big one over the fence with the 2010 Fusion Hybrid. This product has received great reviews from the automobile writers. The car is unexpectedly refined, gets great gas mileage and is fun to drive! This hybrid was actually developed in Dearborn with Ford technology. Ford's other hybrid vehicle the Mariner Hybrid uses a version of the Toyota Synergy Drive licensed from Toyota.

The Ford Fusion actually won a comparison test in Car & Driver versus the Toyota Camry Hybrid, Nissan Altima Hybrid and the Chevrolet Malibu Hybrid. Click here to see the full article in Car&Driver.

The American companies have made a number of major management mistakes over the last twenty years. My opinion is that should have been investing enough money in product development and research and development. That would have produced better cars allowing them to compete effectively. Instead they were purchasing foreign brands that now they are forced to sell at bargain basement prices. So,it is comforting to see them developing some good products.

A hydraulic-diesel hybrid?????

Most people are familiar with a gasoline-electric hybrids. Examples are the Toyota Prius, Ford Mariner Hybrid, Toyota Camry Hybrid etc. OK, there is a new hybrid on the block! Yes, the UPS truck you will see driving down the road in the near future!

Here is a prime example of how our government should work! The Environmental Protection Agency (EPA)Advanced Technology Division, in coordination with Eaton, Navistar and the United Parcel Service (UPS) are developing a new technology to power UPS trucks. The technology utilizes high pressure hydraulic fluid. A 170-hp diesel engine is connected to a hydraulic pump instead of a transmission. The engine is not used to propel the truck but instead pressurizes the hydraulic fluid. The fluid is stored in an pressurized storage tanks located under the vehicle. The pressurized hydraulic fluid powers two hydraulic motors drive the rear wheels of the vehicle. Under braking the motors slow the truck and recapture energy in the process.

This technology gives the UPS truck a 45-50% gain in fuel economy. The fuel savings will pay for the additional costs of the technology within three years. Many hybrids take much longer to pay for the additional cost of the vehicle. So, this development is key for the mass production of the technology and the application to passenger cars.

The EPA has built a Ford Expedition with this technology. Fuel economy increased substantially by 85 percent mainly due to swapping the Expedition’s 5.4-liter V-8 for a 1.9-liter Volkswagen diesel. Who says that Americans cannot have their SUVS?