Auto Trends We’re Following

What’s in the news?

The summer months are supposed to be fairly quiet when it comes to developing auto industry news stories, but there is enough happening this summer to keep everyone’s eyes focused.

This time last year the federal CARS or “cash for clunkers” program was heating up, introduced on July 24 and offering an artificial surge in car sales. In 2009, billions of dollars of taxpayer monies were being directed to an industry already benefiting from tens of billions of dollars in bail out bucks and other relief. What good the program did is a matter of debate, but know this: there is no desire on the part of most politicians to bring it back.

Here are some of the auto trends we’re currently following:

• The 2011 Cadillac CTS Coupe is in production and the first cars have left the factory floor and are enroute to Cadillac dealerships. This model will expand the CTS portfolio which now includes a sedan, sport wagon, the coupe and V-Series versions of the sedan and soon the wagon and coupe.

• Toyota knew about engine problems with its Lexus models as far back as 2007, but didn’t issue a recall until July 1 this year.  Automotive News reports that the first customer complaints for affected Lexus models dates to March 2007, when Japanese customers complained about defective valve springs.

• Not much has been said about Ford’s sale of Volvo to Geely in recent months, but that is beginning to change. The Wall Street Journal shared a statement from the EU’s antitrust body which said, “The Commission concluded that the transaction wouldn’t significantly impede effective competition.” Expect that Ford to conclude the deal sometime this summer.

• How will Chrysler handle the sale of the Fiat brand in America? That is a good question, one that has remained unanswered even as the Fiat 500 is being prepared for its stateside debut later this year. The Kenosha News reports that Chrysler dealers are receiving packets outlining what is required of them to be considered for Fiat dealerships. Chrysler, 20 percent owned by Fiat, will be establishing 200 dealerships in hopes of selling 50,000 Fiats annually.

• Will the Detroit 3 survive? Some people are still asking that question although Ford’s position is by far the brightest of all three. GM appears to have stabilized and even Chrysler is enjoying a boost thanks to its recently released 2011 Jeep Grand Cherokee.  The Detroit Free Press says that all three automakers appear to be able to ride out the current economic storm.

That’s it for today…new stories shared as we discover them!

No Reprieve For Pontiac G8

The Pontiac G8 will go away when the Pontiac brand is retired, in contrast to rumors that Chevrolet would sell the Australian made sports sedan as the Caprice. GM CEO Fritz Henderson put to rest a suggestion by Bob Lutz that the Holden built model would become the flagship car for the Chevy brand, dashing the hopes of some.

With GM deciding to keep the Holden Commodore (Pontiac G8) out of the US, hopes that the automaker would bring the Chevy El Camino back have been dashed too. GM had announced months prior to the shutting down of the Pontiac brand that the Holden Ute would not be sold as the Pontiac G8 ST as originally planned. Enthusiasts wanted GM to call the truck the "El Camino" but GM scotched that idea too.

Problems with the 2010 Chevy Camaro have recently surfaced. Camaro SS models equipped with the manual transmission are temporarily on hold as GM investigates a problem when drivers used the Launch Control feature, including failure of the output shaft. GM hasn't issued a recall of the car, instead has decided to issue an "in production review" to determine just how serious of an issue it is. Once GM's review is complete, a recall order may be in the offing.

GM says that the Cadillac CTS Coupe, a concept car introduced at the 2008 auto show in Detroit, is still a go. The CTS franchise currently includes the sedan and V-Series sedan model and will be joined later this summer by a CTS wagon. The CTS line will likely become the standard bearer for GM's luxury brand with both the DTS and sTS slated to be replaced by one model within the next few years.

Buick's all new midsize sedan, the 2010 LaCrosse (Allure in Canada) is now arriving in showrooms across North America. Early reviews of the sedan have been good, providing a much needed boost for the Buick line. GM is expected to soon announce a fourth Buick model which may share the upcoming Chevy Cruze's platform. No word yet what GM plans to do with its full size sedan, the Buick Lucerne. The Enclave SUV is the other model that rounds out the Buick line.

Photos Copyright GM. Corp.

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Cadillac Whacks XLR In Favor Of CTS Coupe

Raising Cadillac’s Visibility One Roadster At A Time

It hasn’t been much of a seller for Cadillac, but the XLR roadster has done something few other Cadillac models have done in recent years: raised the brand’s visibility in a positive way.

But, the XLR isn’t going to be around much longer and, according to GM sources, the 2009 model year will be the last one for the luxed up Corvette sister.

Instead of the XLR, GM says that they will go ahead with plans to bring in the CTS coupe (pictured), a car that made its worldwide debut as a concept vehicle in Detroit at the 2008 NAIAS. That coupe wowed everyone in attendance and quickly became the odds on favorite addition to the expanding CTS product line.

The Expanding CTS Line

Well, expand the CTS line indeed — a new wagon will be joining the fleet this Spring and the CTS-V, a sedan on steroids, will likely make a reappearance in the near future. The coupe was scheduled to show up this summer, but the latest word from GM is that it’ll be moved back a full year.

Granted, if GM had the funds available now to pull it off, your local Cadillac showroom would be displaying the CTS coupe alongside the sedan, wagon and V-Series at the soonest possible moment. Unfortunately, GM is still fighting for its very survival.

Very Few Units Produced Year In And Year Out

The XLR’s history is a brief one, having been rolled out for the 2004 model year. Sales have always been modest — between 3200-3700 units were sold for the first three years before sales began to plunge in 2007. A very nice car, the XLR embodies what Cadillac can do when it takes the Corvette and makes it pretty.

Powered by a 4.6L Northstar V8, the optional supercharged 4.4 is the “V Series” wundercar, a veritable sportscar under the hood. Alas, money hasn’t been poured into the model since its inception and in its sixth model year, the XLR remains unchanged.

STS and DTS Replacement

In related business, Cadillac is pressing forward with bringing out an all new SRX this summer, the second generation of its crossover. GM is still mum on their replacement plans for the STS and DTS, but we’re likely to see one model replace them both.

Don’t count on it being rear wheel powered — GM has killed that program off.  We’ll see what GM comes up with, hopefully it isn’t something slapped together from the corporate parts bin!