ON THE TABLE

April 13, 2011

Saab. From the "It's All Over But The Hand-Wringing" File comes word that Spyker is desperate to shore-up its finances in order to keep Saab from going under. Deep in debt to suppliers, Saab is on the cusp of being mothballed permanently. Spyker is even getting Russian businessman Vladimir Antonov involved. We don't think it's going to matter. Saab isn't going to recover from this and it will soon be yet another automotive brand relegated to the dustbin of history. It's too bad, but then again, anyone who thinks this is some sort of a surprise is kidding themselves. In essence we've arrived at the final Saab Story.

Carlos Ghosn. With the resignation of his trusted "No. 2", Patrick Pelata, over the "spying" fiasco - the French government wanted a body for the embarrassing sequence of events surrounding the scandal - CEO Carlos Ghosn is now officially under the gun with the French government, which just happens to be the largest shareholder in the French automaker. Ghosn's performance with Nissan has been exemplary - although the jury is still out on his betting of the farm on the Leaf EV - but Renault has always been the tougher nut to crack. Even though most observers feel that Ghosn is secure no matter what, you just never know about things when the French government is involved in the mix. Needless to say, it's going to get very interesting for Ghosn from here on out.

The Japanese Auto Industry. They've lost over 500,000 units of vehicle production in the month since the earthquake. And it's going to get worse before it gets better, too, because recovery may take another year or more before things are completely back to normal. Ouch and Not Good.

Fiat-Chrysler. Fiat now officially owns 30 percent of Chrysler after meeting certain U.S. government requirements put in place at the time of the bankruptcy. Plans are already in place for Fiat to eventually own over 51 percent of Chrysler, and once that happens, it's just a matter of time before Fiat owns it all. At which point it will probably be called Fiat-Chrysler, and those "imported from Detroit" ads will long be obsolete.

Detroit city councilwoman JoAnn Watson. Editor-in-Chief's Note: Continuing the ongoing embarrassment that has defined the Detroit City Council for, oh, about 35 years now, JoAnn Watson is calling for a U.S. government bailout of Detroit, saying the city that built the middle class deserves as much help as Wall Street or General Motors, according to the Detroit News. Watson's histrionics occurred during Mayor Dave Bing's budget presentation, where he was desperately trying to talk some sense into city officials about the grim financial reality for a city that saw its population decline 25 percent since 2000, to 713,777. "We are worth it. We are worth at least as much as General Motors or Chrysler or the Wall Street bankers," Watson said. "It was this city that built military vehicles for World War II. It was this city that (invented) the middle class and the five-day work week. We should not be in a position to be victims. We are victors. And we deserve respect." Really? This is a city whose government bureaucracy was shaped by the Coleman Young administration of 35 years ago, which created and then pushed the corrosive concept of entitlement to the point where it became standard operating procedure, rotting the city government and the city itself from within. Add to the mix the maliciously calculating city unions, which bled the city's coffers dry and drove the cost of doing business in this town into the stratosphere, and the implosion of the domestic auto industry at the end of 2008, and you have a recipe for disaster that is manifesting itself today in ugly and no uncertain terms. No, councilwoman Watson, at this point respect isn't the issue. What the city of Detroit needs most is a massive dose of reality, and that means understanding what's at stake and dealing with the fact that there are painfully limited economic resources at hand to do anything about it. With an intransigent city council in place led by brainiacs like JoAnn Watson, Mayor Bing is fighting a losing battle. The only thing that can possibly save this city at this point is receivership, with a manager appointed by the governor who will have absolute power to do what needs to be done and straighten this mess out. And what should be first on that manager's agenda? The disbanding of the city council and the school board, the two most egregiously embarrassing contributors to the ongoing chaos that defines Detroit. - PMD

The State of Texas. The Texas state House passed a bill this week that would allow some highways in the state to have an 85 mph speed limit. The state Senate is also considering a similar bill. We've seen all of the hand-wringing over this one, but the fact of that matter is that if you've never driven in West Texas you have no idea what it's really like out there, and an 85 mph speed limit makes perfect sense. You can go for miles without seeing anyone, and you have to put your foot in it just to keep awake. So we applaud the Texas legislature, and we hope this idea catches on in other states where the great wide open should mean more than just the clear blue skies. Editor's Note: Dr. Bud surfaces this week with a few comments on the new Texas speed limits, and many more comments on the Shelby GT500 Mustang. - WG

(Toyota)
The Lexus LF-Gh hybrid concept will make its global debut at the 2011 New York International Auto Show. The concept, according to Toyota, "sets out to redefine the premium grand touring sedan." “For this concept, Lexus designers studied characteristics that are often considered contradictory and difficult to execute together,” said Kengo Matsumoto, general manager, Lexus Design Division. “The captivating design of the LF-Gh concept examines the possibility of balancing what are normally opposing qualities, such as style and functionality.” Uh, if you say so. To us it looks like a semi-interesting looking front end in search of a car to attach to it.

(Audi AG)
The Audi Q3 will make its world premier at Auto Shanghai 2011 on April 19. It will be the first public unveiling of its compact-format premium SUV. More details to come.

Editor's Note: We had the opportunity to drive the 2012 Fiat 500 last week, and I must say, I was a bit underwhelmed. I wanted to like this car, I really did. Ours was one of the Prima Edizione models - a limited-edition run of - wait for it - 500 vehicles, exclusively available in Bianco, Rosso or Grigio. These special models are further distinguished by a sequentially numbered VIN, along with each vehicle's number on a badge on the instrument panel (e.g., 1 of 500, 2 of 500, etc.). All Prima Edizione models also come with a manual transmission. And they are the first Fiats to be sold in the U.S. since 1984 (I'm not sure how significant this really is since most 500 buyers are likely to have been born after 1984). Story goes, Fiat enthusiasts were offered the Prima Edizione model as a reward for their loyalty in the brand's absence here (huh? loyalty to what, exactly? have they been driving vintage Fiats for the past 27 years? walking? riding their bikes?). But I digress... The fact of the matter is, the new Fiat 500 simply falls short. First of all, it is short. Really short. And that's fine if you're just using it to zip around town and don't plan on splurging for a new big-screen tv anytime soon. Or if you can resist the lumber section at Home Depot, as well as those bargain-priced trees and shrubs they start selling at Costco this time of year. But even if you're not into all that, there's still something weird about walking up to the 500 - like you're a grownup and here's this really small car and things are just out of proportion. That said, the interior is surprisingly not that small (unless you're super tall and happen to have ordered the sunroof - or have plans to actually have human beings occupy the backseat) - and in fact, it was pretty comfortable. The overall design is pleasant, if fairly generic (mask out the Fiat badge on the steering wheel and the special Prima Edizione badge on the IP, and you would not be able to win 'Name That Marque'). Come to think of it, there's really nothing about the 500 that says Italian - especially if you know nothing about the Fiat brand and the history of the 500. I actually did take it to Costco, but I kept my purchases small. Overall, my day with the 500 wasn't bad - but it wasn't remarkable either. And that's the problem. Somehow, I expected more of a point of view to this car, or as P.J. O'Rourke said, "Considering how much personality the Fiat 500 has, it should have more personality." (Check out his review in the April Car&Driver, as well as Dan Neil's piece in last Saturday's Wall Street Journal - A Car for the JV Cheerleader in Everyone.) In short (sorry - can't help it), the new Fiat 500 was just okay. The Grigio was tasteful, but maybe too much so (this, coming from a person who likes any color in a car, as long as it's black). Charcoal grey just doesn't scream la dolce vita, afternoons in Tuscany or strolling through the Cinque Terre. Everything about this car just begs to be sunnier, happier, jauntier. Wait, I've got it - maybe all of those Fiat enthusiasts who have been waiting for the brand's return here can share some of that bliss with their new 500! And once the nostalgia-fueled sales have run their course, let's hope there's still enough brio to go around. -WG

Editor-in-Chief's Note: I liked the Fiat 500 just okay, although I acknowledge that the gearbox/shifter was excellent. But I agree with WG, there's nothing overtly Italian about it. The design is somewhat reminiscent of something Italian, at least if you squint, but that's about it. Alas, that's the nature of the global auto world we live in. With intertwined and overlapping suppliers churning out the same stuff for multiple manufacturers, it's hard to imbue character into some of these machines, and in that regard the Fiat 500 comes up short. It's just lacking on too many levels. As I've said previously the 500 is a cute little car that will attract the first-on-the-block types in droves, but cute isn't enough. Will it become the foundation for a brand powerhouse like BMW has with the MINI? In a word, no. Will it successfully re-launch Fiat in this country? I'm not sure it has the legs to do even do that. Call me underwhelmed. - PMD

Editor-in-Chief's Note: Our occasional West Coast correspondent, Tom Pease, filed this report after attending a GM drive event in Los Angeles last week. - PMD

Main Street in Motion in Los Angeles.

By Tom Pease

Los Angeles. I saw that they were doing this event again and decided to sign up.  It's a fun event where you are invited to try some of GM's cars with their direct competitors.  Buick brought their models out with competing models from Nissan, Acura and Lexus and the Buicks were nice.  Better inside than the competition, but not quite as responsive as the Acura.

Before driving the Volt, they asked that you drive the Cruze supposedly because the Volt is based upon it.  I got there first thing in the morning, so I had a clear track.  That clear track showed me a weakness in the Cruze's powertrain: there's a disconcerting pause between nailing the gas pedal and actual power going down.  It's not unsafe, but it is noticeable.  To be fair, the Corolla and the Hyundai do the same thing to a slightly lesser extent.  The Honda doesn't, which in my mind makes it the one that I would go for.  After testing a bunch of SUVs that were surprisingly good handlers for something that should have its own zip code, I went back to give the Cruze another go against the others.  This time there were a lot more people on the track, so I couldn't really flog it.  It was more like an actual commute and this is where the Cruze really shines.  The interior is exceptionally nice; only the Hyundai comes anywhere near to it.  I found the Elantra to be a bit over-styled, the Honda somewhat bland and the Corolla so spartan it was like penance for something terrible I must have done in a past life.

So I'd take the Civic for Mulholland, but prefer the Cruze for the 405.

But the car I really came for was the Volt.

Volt was the only car that they had us take on city streets, albeit for a brief test.  The first one I drove I was told hadn't been charged the night before.  I had to be told when the gas engine fired up; I didn't notice it.  It might have been that I had the windows open and there was a fair amount of engine roar coming from the Corvette track close by.  My second drive was pure electric.  It is sort of disconcerting that you press the start button (placed perfectly logically right where you would expect it to be and where no one else places it - even other GM vehicles) and the only clue it's on is the displays coming to life, but if you're a Prius driver you're used to that.  Frankly, the only really disconcerting thing about this car is that you aren't giving up anything to have it.  The interior is quite nice, it seats four comfortably, has a decent trunk and feels quite zippy.  I didn't see that there was an "eco" mode like on the Nissan Leaf, but since the Leaf drives like it's trying to haul the planet off it's axis in its eco mode I wouldn't miss it.  My only quibbles are that the interior materials aren't exactly luxurious, but neither are the ones in the Leaf, and the last Prius I was in had plastics that made the ones used on the Corolla seem like a Maybach.

I honestly walked away from the Volt thinking that Chevy really has something here.  Even for me, an apartment dweller.  I have a garage space so it's not so crazy that I could wire at least a 110 volt outlet there.  The idea of my commute being gasoline-free has its charms.

Of course, on a sunny Sunday in Los Angeles I wasn't going to pass up driving the Corvette convertible. I did, twice.  I like the idea of commuting in the Volt, not using any gas.  I like the idea of driving that yellow Corvette to Santa Barbara for lunch, top down a lot better.