Luxury Lounge

tayl0rd

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Many of the aftermarket turbo Honda Civics with upgraded suspension can probably put this Brabus C into the hall of shame without any sweat...

Heck, you don't need an aftermarket, turboed Civic to beat that. That stock Civic Si sedan does it in, what, 7.6 seconds. Yes, I know that's 0-60, but it's still more than likely door-to-door with that Brabus, if not ahead by a fender or more at 62MPH.

topspin628

Unfortunately, recent historical data does not look good for the 7-series. The 2006 models have had much-worse-than average statistical reliability according to Consumer Reports (and that performance is expected to continue for the 2007 and beyond) and the recently released J.D. Power vehicle dependability study also gave the 2004 7-series very low marks.

It's interesting that CR doesn't reccomend any german luxury car (A8,7, S Class). Only Lexus LS. I think that one must be careful to weigh customer satisfaction against reliability. There are some cars out there that require a bit more upkeep and aren't as bullet proof as Lexus but their owners are more satisfied with them. Corvette comes to mind.

topspin628

Again, my point is: based on current and historical data apparently the increase in price has no negative affect on the LS in terms of sales.
Let's see how the trend plays out when MB S Class brings in lower priced smaller and/or diseal engines. For now Lexus has only been going against the top of the line S550. In the past the S430 was the main competitor and it doesn't exist at the moment. I predict that when the price gap is closed even further that the LS will lose some of its luster. Lexus was founded on the value/price relationship and I think they may be straying too far from that basic philosophy with the latest LS. We will see.

blkhemi

Failures? This is just a short list of the most recent mishaps.

(1) Lexus delivered the otherwise acceptable IS to the table without a proper 6-speed stick- huge mistake in this category. And what's with the wholly underpowered IS250? If I can recall, a 2.0T Audi A4 4-cyl will smack it silly.

(2) Maybe with the exception of the 350, the GS was DOA from the gate. The 430 is now obsolete and dead, but only to be follwed up with a 342hp version of the vaunted 4.6L mill when this was the time to truly pull the GS up to the 550 and E550 standards. And need I elaborate on the GS450h?

(3) The LS600hL. Why? Thousands of man hours and millions of dollars spent only for the finally product to become, well, utterly pointless other than for status maybe. And while on the subject of the LS, Lexus has really moved this car far beyond the value portion of the equation, limiting it's appeal to the people who bought it for that very reason. Yes, the 460 starts 61, but before you know it, you're at 71 with very few options, and the L is truly in the company of the S550 in content, and now, price.

These are just the few things that the otherwise thought of "perfect" company goofed up on this year.

blkhemi

Agreed.

MBZ is in the process of sending over the S450. With that and the eventual diesel version, this will further advance the appeal of the S-Class and , IMO, move some Lexus buyers in the showroom. May it be lower priced models or just newfound interest, I really feel that MB will move customers in the doors that otherwise would've went to buy the cheaper LS or the discounted A8 or 7-Series.

And adding in to the fact that Mercedes has already acknowledged that their customers are wanting more models and some new customers don't need all of the power and content that the S550 imparts, it only makes business sense that they're going to expand the lineup rapidly, and not just focusing on the hi-po AMG models and 600.

tagman

And adding in to the fact that Mercedes has already acknowledged that their customers are wanting more models and some new customers don't need all of the power and content that the S550 imparts, it only makes business sense that they're going to expand the lineup rapidly, and not just focusing on the hi-po AMG models and 600.

Man, you are right on focus.

Mercedes is in fact expanding the lineup... and this time we are talking smaller and more fuel efficient to round out the historical ever-increasing trend towards more and more power.

The latest C-Class is likely to turn out to be the biggest single model push from Mercedes possibly in their entire history... and with a dual personality... sport or luxury.

Add to that the upcoming smaller GLK, which will be a huge hit in the about-to-explode small SUV category.

Then in a few more years, the release of the B-Class vehicle to our shores.

On top of that, the diesels and hybrid options to existing models.

All this points to a Mercedes Benz that expands its focus from the very heavy powerful gas cars to a broader spectrum that includes smaller vehicles, greater fuel efficiency, and alternative powertrains across the entire board. All this without giving up its continued efforts at power and performance as well.

Ultimately it is a brilliant expansion, as we will see a Mercedes Benz with a wider model lineup and a broader market appeal.

TagMan

louiswei

First of all, Lexus is NOT perfect. Don't you remember it's slogan - The endless pursuit of perfection? If they are perfect then why the pursuit? :confuse:

Here are my counterpoints:

1. Trust me, the 2.0T A4 will NOT smack the IS250 silly (I drove both before and the A4 has a terrible turbo lag). As matter of fact Edmunds has just proved that the IS250 equips with a slightly upgraded sports suspension (X-package, not sports package) has higher slalom speed than the benchmark - 3 series. Lexus does offer MT in the IS250 but not in the IS350. Apparently MB is following Lexus' strategy by only offer MT to the C300 but not the C350. Looks to me the strategy worked for Lexus and MB agreed. As a car buyer and an enthusiast (okay, a semi-enthusiast) I would love to see the IS350 comes with MT. However, to put myself in Lexus' position I can understand why they didn't and I would make the same decision if I was them.

2. There is a reason why the GS430 is now obsolete and I have explained that before so I wouldn't get into it again. As for the GS460, granted the 342HP is kind of low but I'll wait until Lexus has officially released the specs before making any judgment. One thing I don't really understand is what's with all the bashing about the GS450h. Can anyone here please name another midsize luxury car (that's 5er, E-class, A6, STS, S-type, S80, M and RL) that delivers the same HP and FE as the GS450h? It can be either diesel, hybrid or gasoline, I don't care, as long as it matches performance-wise.

3. The whole purpose of the LS600hL is to create a car that has V12 performance with V6 (or V8) like FE. Simple as that. With that in mind please tell me that the LS600hL is a failure with a straight face. I sat in the LS600hL in the Taste of Lexus event last weekend and was impressed, the interior quality is night and day compare to the LS460. As for the LS460, apparently the buyers do agree with Lexus' pricing strategy and it is leading the sales chart for almost a year now. Lexus did a survey before the LS460 was launched to ask the LS430 owners in something like: "would you willing to pay a premium if the next LS will be much better than the LS430". The majority of the owners answered yes much to Lexus' surprise. At the end of the day Lexus is just giving what the customers want and the success of the LS460 speaks for itself.

bristol2

I think that MB's current reliability record is the biggest obstacle for them.

I think that while value is a large part of Lexus' draw, the reputation for trouble-free ownership is equally or more important.

I am sure I am the exception, but I would trade all the back-up parking sensors, variable cruise, radar heads-up displays, swiveling headlights etc for outstanding materials, workmanship and reliability. Actually, looking at that comment that could apply to any of the cars under discussion....I'm not saying that these qualities aren't available, just that the obsession with turning cars into NASA operations rooms is not my cup of tea.

houdini1

I am sure I am the exception, but I would trade all the back-up parking sensors, variable cruise, radar heads-up displays, swiveling headlights etc for outstanding materials, workmanship and reliability.

Well said. I could not agree more. Add to the list 30 speaker radios, on star, tire pressure monitors, self parking, blue tooth, etc, etc, etc. Put the money into making a better car.

tagman

I think that while value is a large part of Lexus' draw, the reputation for trouble-free ownership is equally or more important.

Reliability is extrememely important, and there is no one on this board that would say otherwise. The difference is just how much it matters to different buyers.

Will Buick, with its top reliability rating, expect to have the reputation of Lexus? If you were to tell the average person that Buick is as reliable as Lexus, they would think that you are nuts.

Consumer Reports, as well as the long history of Toyota and Lexus reliability have etched their reliability into the mainstream mindset... even as Toyota dips in reliability.

When it comes down to it, for me, the reliability nowadays is generally good enough (although Range Rover would worry me a bit. LOL), and if I like/want/need a vehicle, I'm going to get it regardless of what CR says, and I'm going to equip it the way I want.

That said, I completely understand your post, and I am sure it applies to a lot of folks beyond yourself... but admittedly not me, and buyers that are like me.

TagMan

houdini1

Will Buick, with its top reliability rating, expect to have the reputation of Lexus?

Likewise, would a top handling Subaru WRX be expected to have the reputation of a Mercedes S?

You keep implying that only reliability AND/OR performance are important when buying a car. For me, this is simply not the case. If you only wanted performance you would buy the WRX, and if I only wanted reliability I would buy a Corolla or a Civic.

For me, in addition to reliability and performance, it is the overall synergy of the car that is important. The way it works. The look. The smell. The way you feel when you sit in it. Comfort. Quietness. Smoothness. Workmanship and quality of materials. Lack of harshness and vibration. Exclusivity. And, of course, value.

Yes, reliability and performance are important, but without all those other things, I am not interested.

dewey

Tagman and Houdini,

as far as I know the best performers tend to have less than stellar reliability and the most reliable cars tend to have less than stellar performance.

It is no mere coincidence that the car company that combines these two extremes quite well is right now the most profitable auto maker in the world today (based on operating margins):

"Porsche has the performance of an exotic [car] but the reliability of a Honda," says John Casesa, managing partner of auto consultancy Casesa Shapiro Group in New York.


Unless you want extreme performance (Ferarri) or bulletproof reliability (Civic) you will end up buying a compromise between these two extremes. IMO a Porsche is a nice compromise.

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dewey

Last year the cash-rich sports car maker took a controlling stake in Volkswagen (VLKAY ), the world's fourth-largest auto manufacturer. The goal: to ensure access to Volkswagen's development resources and electronics expertise, keeping costs down and profits chugging at Porsche.

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Porsche wants to have Honda-like reliability by gaing access to VW electronics expertise? Yikes sounds like Porsche may be seeking reliability at one of the worst places possible. :lemon:

tagman

You keep implying that only reliability AND/OR performance are important when buying a car.

Where did I post that? :confuse:

For me, in addition to reliability and performance, it is the overall synergy of the car that is important. The way it works. The look. The smell. The way you feel when you sit in it. Comfort. Quietness. Smoothness. Workmanship and quality of materials. Lack of harshness and vibration. Exclusivity.

Those things matter to me too. Where did I say otherwise? :confuse:

TagMan

tagman

Thanks for the link, Dewey! Good article.

BTW, I've missed your posts lately... been on vacation?

TagMan

houdini1

Can't argue with that!!

dewey

I was in Alaska and the Yukon last week.(my vacation from Global Warming).

blkhemi

I'm sure you will find a way to disprove me, but the 2.0T A4 hooked with DSG will smoke an equally equipped IS250. Hate to hand it to you this way, but it is what it is.

The GS450h receives flack around here from both sides of the aisle for a number a reasons, mainly because yes the car is relatively quick and posts ok but not extraordinary fuel econ numbers. But what you get in return is a car with half it's trunk lopped off with a price tag that encroaches well into the V8 crowd. And what you get in the end result is that no one wants this car.

The 600hL does not delive V12 like performance. 0-60 in 5.7 secs won't move the Richter Scale much. Audi's W12(4.9), BMW's V12(5.3), and MBZ V12(4.2) all scorch those numbers. And the fuel economy this thing has is almost laughable.

BTW: Those numbers that you love to boast about also include some 430 numbers because as of this point last year, the 460 wasn't even here.

I wouldn't get to cozy with those numbers for long..

blkhemi

Welcome back, Dewey! How was the Yukon Terr. this time of year? Hope you had fun

tagman

It was 107 degrees here yesterday. I wonder if Al Gore was in town.

I'm sure the market volatility has kept you busy. Some thrive on the volatility... quickly buy when it's down, quickly sell when it's up... over and over again.

Not me... I'm not a market timer or day trader... I'm just in it for the long run, and make periodic adjustments.

Good thing you are East. The opening bell is a bit early for left coasters.

TagMan

houdini1

I hope Audi can deliver on the A3 diesel. Their version of the VW Tiguan. Looks like it would make a dandy little runabout SUV. It may be the first of this new breed to make it here.

bristol2

I was in Alaska and the Yukon last week.(my vacation from Global Warming).

Get it while it's there. I am planning as many ski vacations for my 2-year old as possible. She'll get a shot at the powder while she can!

tagman

Funny you should mention the Tiguan. I've been researching that vehicle for days... reading up on everything there is about it.

The letdown may be that the final production version will be too watered down as compared to the original concept... and I really liked the concept. Otherwise, it sounds like a great vehicle. I'm not as familiar with the Audi version.

Tagman

houdini1

There was a short take on the A3 in the Oct. C&D. You will like it. 2 litre turbo diesel, 40 mpg and designed mainly for on road use with all wheel drive. Probably priced in the mid 30's. Expected to be available in all 50 states.

The bad news is we have to wait about a year and a half! You might find some info if you google it. Because Audi already has the A3 sportwagon, the new one may have to be renamed.

jlbl

Get it while it's there. I am planning as many ski vacations for my 2-year old as possible. She'll get a shot at the powder while she can!



Jose

tagman

I googled it and came up with some limited info. The problem I'm having is that if I had my way I'd get something a bit more sporty in appearance, but it's going to be slim pickins... heck, I've even thought about the VW GTi with DSG, but I'm not sure it's large enough.

It's tough coming up with this one. The upcoming GLK will be attractive, but almost too conservative. The X3 is nice, but is generally considered a woman's vehicle (at least it is out here), the upcoming Tiguan also seems really nice, but watered down from the original concept. The small Toyota SUVs are oatmeal in style. My FJ is too much of a cartoon vehicle, and I'd like to downsize a bit and get better fuel economy, as it only gets 15.5 mpg.

I'm suffering with this one. I just can't find the right vehicle. :sick:

TagMan

dewey

Blkhemi,

when I was there the Yukon was sunny between 60 to 70 degrees. Alaska was about the same except for a bit of rainfall.

Bristol,

at least my kids got a chance to see actual glaciers before melting into non-existence. As we were looking at the Hubbard glacier for several hours I had videotaped several occasions of ice collapsing.

dewey

I'm sure the market volatility has kept you busy. Some thrive on the volatility... quickly buy when it's down, quickly sell when it's up... over and over again.

I still did not yet sell some of the stocks that I had first bought way back in 1982 (a lot of untaxed capital gains ---fortunately I am not a day trader). Buying a high quality company during panicky times is always a rewarding experience.

I am crossing my fingers for more volatility :shades:

dewey

MB may give up developing new transmissions in the future and outsource their transmissions from Gertrag or ZF.

Developing a eight-speed dual clutch unit is expensive and why not leave such endeavors to the experts like ZF?

Subscription Required:

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lexusguy

Developing a eight-speed dual clutch unit is expensive and why not leave such endeavors to the experts like ZF?

I wouldn't be surprised. While the 7Gtronic is very good, the ZF 6-speed is generally regarded as the king of automatics.

dewey

Take the 500-plus-horsepower, Formula 1-inspired sub-5.0-liter V-10 slated for the 2010 Lexus LF-A supercar, drop it in the body of the all-new 2011 GS sedan, and what've you got? The 2012 Lexus GS-F. Watch out, BMW M5, Audi RS6, Mercedes-Benz E63 AMG, and 2009 Cadillac CTS-v!

Details are sketchy, but engineers are said to be protecting the next-generation GS to be able to package the supercar's V-10. The GS-F apparently hasn't been approved for production. It would be a good idea, though, and not just for enthusiasts. It would cut engine costs through higher volume than by building it just for the exclusive supercar.

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dewey

Not too long ago the BMW 5 Series had a GM auto tranny.

Trying to develop everything all the time in-house has its drawbacks. GM tried doing that for several decades and look where it got them.

tagman

For a supercar, it looks horrible. Hopefully the performance will be incredible, cause from an appearance point of view, what's the difference between the looks of that and any other ordinary Japanese car? It's one of the things that really bugs me about some of these vehicles. Surely, they can do better than that, but why don't they? I just don't get it.

C'mon... help me out here. Is it me... am I missing something here? Is that really an exciting car and I just don't see it?... 'Cause it's doing nothing for me at all.

TagMan

bristol2

Edmunds has a first look review...
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It makes more sense with the designer describing the vehicle.

Also the shift knob is improved when retracted. Still don't think that front end does it for me.
Apparently it will be available with the Leaper as an option, which is certainly how I would want it if I were in the market for a Jag. That makes me either sad and dull or sophisticated and conservative.

Would any of you ">guys replace your current drive with it?

tagman

the ZF 6-speed is generally regarded as the king of automatics.

Earlier this year, ZF developed their first 8-speed automatic. Leave it to them to do it right.



Here's some good technical data on this terrific new tranny...

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TagMan

tagman

Would any of you ">guys replace your current drive with it?

That's an excellent question, because that's what it will boil down to when all is said and done. Will enough folks put up the green for this car?

As for me, I wouldn't be a buyer. And I have my doubts that there will be enough buyers. Expect a small initial sales surge, and then when the early excitement wears off, it's curtains.

TagMan

tagman

Lexus LF-A to be sold in China
08/30/07, 09:52am, EDT

Just 13 days after Lexus' LS600hL went on sale in Beijing, the automaker has announced it will introduce its LF-A to the Chinese market in early 2008. "We are planning to import the latest Lexus models to the Chinese market at the earliest time possible," said Zeng Lintang, vice president of Toyota China.

The Lexus LF-A, which debuted at the 2005 Tokyo Auto Show, will start production at the beginning of next year, capping off two years of crash testing. The LF-A is expected to retail in China for 2 million yuan, or $264,700 U.S.

$264,700? !!! :surprise:

TagMan

lexusguy

As for me, I wouldn't be a buyer. And I have my doubts that there will be enough buyers. Expect a small initial sales surge, and then when the early excitement wears off, it's curtains.

If Jag can price the standard XF against the competition's sixes and the supercharged version against their 8s, similar to the old S-type R after its price cut, they may have a shot. The XF SV8 is no match for an M5 or E63, but it would have class leading power in the $55-65K price class. Jag has to lead the class in something besides wheel diameter if they expect to get anywhere with this car. It's Fordy-Volvoy-Astony looks aren't going to do it.

brightness04

The purpose of M5 is to sell more regular 5 series cars. The M5 itself is probably a money loser. That's more or less the general marketting strategy behind the M division . . . a very successful one. Every generation of M cars look more or less the same as the regular cars, for that very reason. AMG (after the MB take-over), RS and soon F are just M-wannabe's. Sometimes though I have to wonder if all this horsepower race is a fool's errand that happens at the end of evey economic cycle, when resources are misallocated towars perceived consumer demand that is really more cheap money than common-sense, thanks to over-lax monetary policy by the central bank. Historically, the manufacturers lose money badly on those projects every time the central banks tighten to reign in inflation.

topspin628

MBZ is in the process of sending over the S450.
Do we know when it will be arriving and the projected price difference between the 450 and the 550?

louiswei

Still haven't answer my question didn't you? Please find me a luxury midsize sedan that can match GS450h's power and FE, whether it's a diesel, hybrid or gasoline.

As for the LS460's sales number, I wasn't comparing to the LS430, I was comparing to all full size luxury sedans. Last I checked, the LS460 is still leading in sales out of all the flagships.

dewey

I like this rendering of the GS-f far better than the styling of the IS-F. I think the new IS-F looks awful especially when compared to the understated good looks of the current Audi RS and upcoming BMW M3.

But this is a mere rendering and who knows what Toyota really has up their sleeves in terms of future GS styling?

dewey

could not find this particular article (published over a year ago), but it basically stated that Lexus surveyed some of its current LS customers and generally found that they were willing to pay more for a Lexus product than what was currently available for sale from Lexus at that time; .

Was this article written by SteveKilburn :confuse:

dewey

Evidently all Japanese automakers had benefited greatly these past few years from a weaker yen:

SOURCE: Wall Street Journal

August 30, 2007

TOKYO -- Japanese auto makers have seen their share prices fall sharply after the yen's surge against the U.S. dollar in recent weeks, prompted by worries that their profits may wane. But analysts say strong sales and diversification in emerging markets such as China and India may cushion them from serious damage in the long run.

For the past several months, Japan's three biggest auto makers by sales -- Toyota Motor, Honda Motor and Nissan Motor -- have benefited from the weak yen, which helps boost profits by increasing the value of overseas earnings when converted into Japanese currency. That changed earlier this month, when the U.S. subprime-loan problem led to jitters in the global financial markets. The yen rose sharply, reaching a 14-month high of 111 yen to the dollar on Aug. 17. Toyota's stock price has fallen nearly 10% in the past month to 6,530 yen ($57.09) yesterday. Honda's price has declined 14% in the past month to 3,690 yen yesterday. Nissan's also has fallen 14% since July 30 to close at 1,089 yen.

dewey

As MB is pondering whether to outsource transmissions, BMW is seeking technology alliances with other auto makers. To remain independent today both MB and BMW will have to become more dependent on outsourcing and tech alliances. The definition of independence is becoming less rigid as each year goes by.

Below are just a few paragraphs from a Wall Street Journal article:

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BMW's second-quarter profit fell 23% despite a 7.3% rise in revenue. Mr. Reithofer, in an interview at BMW's U.S. headquarters in Woodcliff Lake, N.J., said he's "not satisfied."

Mr. Reithofer said BMW won't fall short of its previously stated goal to bring in profit this year above the €3.75 billion ($5.11 billion) earned last year, excluding a €372 million gain on the sale of certain securities. "Not with me as chairman," he said.


The solutions aren't simple. With European and U.S. regulators and consumers demanding that all car makers significantly boost fuel efficiency, BMW faces rising costs from developing and deploying new fuel-saving technology. Complicating that effort, the company faces cost issues related to the strong euro and higher commodity prices.

BMW said research-and-development costs jumped 22% during the first half to nearly €1.5 billion. That represented 5.5% of revenue, compared with 4.8% a year earlier. (OUCH!!)

Mr. Reithofer said BMW is responding by pushing across its fleet a suite of fuel-saving technologies. Among the features are technology that shuts off the engine when the vehicle is stopped, turns off accessories such as the air-conditioner compressor when they aren't needed, and dashboard lights that prompt the driver to shift gears to achieve the best fuel efficiency. BMW will outfit its European 3 series sedans with these technologies this fall.


In the U.S., BMW's big technology push will be the introduction next year of vehicles with a new three-liter diesel engine clean enough to be sold in all 50 states. Diesel engines can achieve significantly better fuel economy than like-size gasoline motors. In the U.S., diesels have remained a marginal technology in the passenger-car market, in part because of tough clean-air standards and consumer perceptions that diesels are noisy and dirty.

But with competition intense and costs high, the industry is developing looser alliances to come up with the industry's next generation of technology. BMW already has deals to develop hybrid gasoline-electric drive technologies with GM and DaimlerChrysler and builds four-cylinder engines for its Mini line with PSA Peugeot Citroën SA. The difficulty with more such alliances: BMW would become more dependent on the moves of its partners, which may also be competitors in some markets.

brightness04

Louiswei has already addressed the GS450h very well; no repeat necessary. Let me just address the LS600hL for a moment:

1. You are citing the slowest number for LS600hL, and the quickest for the others, from very different tests. If we want to play that game, I will give S600 V12 as taking days to do 0-60 . . . that's how long it will take to fix the S600 that I saw stranded by the side of the highway and was being hooked up to a tow truck

2. Find another 400+hp full size luxury car that can do 21/20 for city and highway combined using 2008 EPA testing method. The competitions cited are in the lower teens. That means LS600hL brings a whopping 25-30% improvement in fuel mileage over the competition. The conventional industry wisdom is that diesels typically improve only 15%; that's before new power and efficiency-sapping contraptions, including lower energy content new diesel fuel, is introduced. If you think that is laughable, you must be really deriding diesels . . . after all, Bluetec commercial trucks in Europe get only single-digit miles per gallon. Yes, as in lower than 10mpg. Goes to show how silly it is to look at mpg only and ignoring what type of car we are talking about. 21/20 using 2008 method is fantastic for a 400+hp full-size luxury car.

dewey

To introduce its future plan, Lexus SA hosted a “ladies day” for motoring journalists, and if the luxury we received on the day (by means of spa treatments and good food) is a hint at the luxury that Lexus plans to offer, then it seems that the company is on the right track.

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The marketing folks at BMW and MB better quickly wake up and go on the right track by offering those auto journalists some pedicures and facials . :surprise:

louiswei

Also, isn't diesel price usually $0.2 higher than the premium (91/93) gasoline?

brightness04

The interpretations is wrong. In the same month, BMW stock price has dropped from around 50 Euro to around 44 Euro, while Euro itself has dropped in value relative to the Dollar. In other words, BMW stock has dropped nearly 14% in real terms (well, common unit of count, dollar, for the sake of argument) whereas the 14% drop in Yen terms for the Japanese automakers is offset by 10% rise of Yen itself, netting only a 4% drop for Japanese carmakers in the common unit of count of dollar (lets save the trouble of converting the common dollar to steal and plastic cost, i.e. the real real term cost for carmakers).

In other words, the European carmakers are suffering even more from rising Yen cost than Japanese carmaerks, far more; more than three times more. The reasons are quite simple:

1. European carmakers have been on the forefront of taking advantage of the cheap Yen policy. BMW for example has been issuing large amounts of Yen-denominated bonds. Now it's facing a 10% jump in yen obligations in a week while the relending of the borrowed money is only collecting less than 3% in a year from American lessees. IMHO, more is to come; hence the need to find a merger partner.

2. While all carmakers will face tougher times as the economy retrenches, people are going to use more brain than emotions in choosing cars, that will penalize the European luxury marques even more severely.

cdnpinhead

"I would trade all the back-up parking sensors, variable cruise, radar heads-up displays, swiveling headlights etc for outstanding materials, workmanship and reliability."

You and me both. Thanks for an interesting post.