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AVALON: SMOOTH RIDE USA Today
Toyota Avalon remains a big smoothie but now has some sex appeal and a gas-electric hybrid version for the first time. It’s also just enough smaller in key spots that you might notice. The slightly trimmer exterior translates to a bit less rear legroom, roughly an inch less rear shoulder room and close to 2 inches less hip room in back. But you get about the same headroom and a bigger trunk.
Test Drive stuffed five grownups inside with only modest griping from the rear seat. The changes drop Avalon into the top of the government’s midsize category. The 2012 was at the low end of full-size.
The best developments
» Price: The base model, called XLE, has more features, but a $2,170 lower price than the bottom 2012 model. Among the additional stanSee AVALON » 5D
AVALON AT A GLANCE » What? Redo of the Avalon, including a new gas-electric hybrid model. Front-drive, four-door, big midsize sedan. » When? On sale early December. » How much? The gasoline version starts at $31,785 with shipping ($2,170 less than 2012 base). The hybrid, which adds features, starts at $36,350.
» Where? Made at Georgetown, Ky. » What makes it go? The same 3.5-liter, V-6 gas engine as 2012, rated 268 horsepower at 6,200 rpm,
248 pounds-feet of torque at 4,700 rpm, mated to six-speed automatic. It has the same hybrid drivetrain as Camry and Lexus ES but tuned differ-
ently; 2.5-liter, four-cylinder gas engine rated 156 hp at 5,700 and 156 pounds-feet at 4,500, electric motor rated 141 hp at 4,500 rpm, 199
pounds-feet from start, with continuously variable-ratio automatic. Combined rating is 200 hp.
Gas-guzzler tax applies to fewer vehicles
This high-performance Cadillac CTS-V coupe is subject to the federal gas-guzzler tax. GENERAL MOTORS
By Chris Woodyard USA Today
Automakers are using new technology to wean their performance models off the list subject to the dreaded federal gas-guzzler tax. Advancing engine technology now is making it possible to produce cars that are more powerful but also more fuel efficient — enough to avoid being subject to the federal tax that tacks up to $1,000 to $7,700 onto the price of new vehicles with very low mileage. Some top industry executives forecast the tax’s demise within a few years.
“You will see that going away,” said Steve Cannon, CEO of Mercedes-Benz USA. “All the new engine technology will avoid the gas-guzzler tax.” The tax was aimed at discouraging people from buying the least-efficient and most-emission-spewing of cars. But automakers are using technologies such as variable valve timing, direct fuel injection, the ability to stop the engine at stoplights and other tweaks made possible by computers that now control powerplants to squeeze more out of every drop of fuel. Finding a way off the list makes good business sense: Those extra
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taxes can put a model at a competitive disadvantage if its rivals aren’t subject to it. Excluding niche brands such as Rolls-Royce, Bugatti and Ferrari, here’s how major car brands are faring: » General Motors. GM will have one less model on the list next year. It said last week that it will stop using the high-end, 638-horsepower V-8 in the 2014 Corvette ZL1, switching to a new, more-efficient 450-horsepower V-8. That will leave only the Cadillac CTS-V performance sedan, coupe and wagons that use the high-end V-8 as GM vehicles subject to the tax. » Ford Motor. Ford has worked
its way off the list entirely. It had two models that were subject to the tax in the 2010 model year, but now technology has improved enough that it can produce a 662-horsepower V-8 for the 2013 Ford Shelby GT500 that isn’t subject to the tax. » Chrysler Group. Only the models in its small-volume, exclusive SRT performance division are on the list. They include the Dodge Challenger, Charger and Chrysler 300. » Mercedes-Benz. The number of models that fall under that tax has been reduced from 17 in the 2010 model year, to eight for 2013. One reason for the reduction: killing its superpremium Maybach division.
Ohio plant changed industry Japanese company now employs 26,000 Americans
ics and a lot more Japanese colleagues. “We came in thinking we had a lot to prove. ‘Could a bunch of farmers do it and prove we were as good as the Big Three, who had second and third generations of workers?’ ” LaRoche said. They exercised to the theme of the “Magnum P.I.” TV series. “It looked pretty cool, like an army ready to build cars,” LaRoche said. Honda will invest an additional $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.
By Alisa Priddle Detroit Free Press
DETROIT — Thirty years ago, the first Accord rolled off the line at Honda’s Marysville, Ohio, plant, the first car a Japanese automaker assembled in the U.S. That changed the competitive landscape of American automaking forever. From an underdog carmaker known in Japan as a cadre of engine geeks, Honda established a trust with young American consumers not unlike the way today’s millennial generation flocks to Apple stores. “They were seen as dirtyfingernailed motorcycle mechanics and got no respect in Japan,” said Dave Cole, chairman emeritus of the Center for Automotive Research. “So they decided to grow elsewhere to become a strong international company.” Since those early industrial seedlings nurtured in what used to be Ohio cornfields, Honda’s North American manufacturing network now spans seven auto plants in the U.S., Canada and Mexico with more under construction, in addition to its motorcycle and power equipment operations. Honda has invested $12.3 billion in the U.S. — $8 billion in Ohio — employs more than 26,000 Americans and has never laid off a worker. Workers were retained and paid for months when Ohio plants cut production after the tsunami in Japan. The original silver-gray 1983 Accord that rolled off the line Nov. 1, 1982, with a blue and white Ohio license plate “USA 001” is on display at the Henry Ford museum in Dearborn, Mich.
Steady, small strategy
Honda exported its first U.S.-made cars, Accord coupes, from the U.S. to Japan on March 7, 1988.
MELDING OF CULTURES FOR WINNING FORMULA
HONDA
Big North America presence Though its world headquarters remains in Japan, Honda makes and sells more cars in North America than in any other continent. The seven plants can produce1.63 million vehicles a year now and will boost annual capacity to 1.92 million vehicles when a new $800 million plant in Celaya, Mexico, starts production in 2014. “It has had the most profound effect on the industry,” said Michael Robinet, managing director of IHS Automotive Consulting in Northville, Mich. It wasn’t just the introduction of Japanese culture, but philosophies and practices that helped establish new benchmarks for engineering, manufacturing and quality. The competition made ev-
eryone’s cars better. “Honda showed a Japanese company could go into the American heartland and establish a non-union facility with unique and foreign work practices and suppliers and be successful and continue to expand over a quarter century,” Robinet said.
Start: Motorcycles in Marysville Honda’s three-decade journey began with former Ohio Gov. James Rhodes and Honda founder Soichiro Honda. Rhodes convinced Honda-san to start making motorcycles in Marysville in 1979. That led to a $3.9-billion investment and the car assembly plant that launched three years later. Jeff LaRoche, a 29-year veteran at Marysville, remembers pre-shift calisthen-
Thirty years ago, Honda was fifth in automobile production in Japan and many auto executives in Japan thought Honda would stumble in America. But it established a beachhead that grew to include suppliers and engine, transmission and car plants in Ohio, Indiana, Alabama and Canada. The melding of cultures remains.“We don’t look at whether we are a Japanese or American company,” said Marysville plant manager Jeff Tomko. “The combination of Japanese culture, U.S. aggressive style, rural manufacturing and a hard work ethic has made it a success.”
But the company’s resolution to do everything itself when others outsource and form partnerships has raised questions about whether the strategy will continue to be a winning one. Recently industry observers have attacked Honda’s styling, which has never been particularly daring, as too bland. The new Civic is getting a hasty redesign. When Big Three plants had to be idled for months to retool, Honda was able to launch new models seamlessly. The quick changeovers took stress off dealers who could sell down the outgoing models without deep discounts, and they received new models in quantities that allowed the sticker price to be close to the selling price. “It was a game changer,” Marysville plant manager Jeff Tomko said. “Folks wondered how we could do it and how we could do multiple models on one line. But in Japan, the mindset is small is smart.”
ONTHEMOVE » TALLAHASSEE DEMOCRAT » MONDAY, NOVEMBER 5, 2012 » 3
Modest price, flagrant fun By James R. Healey USA Today
Ann Arbor, Mich. — The best performance cars today aren’t all exotics that break 200 mph and your bank account. You also can get a whole lot now in affordable go-fast-mobiles created by skilled application of giddy-up mojo to mainstream vehicles. The 2013 Ford Focus ST is such a vehicle.
Good design meets value It’s a remarkable engineering success to create a car that blends an easygoing daily personality with on-command snap and growl and do so on a mere mortal’s budget. That’s why Focus ST and other well-modified, high-performance mainstreamers seem better than the exotics (which have their own appeals, but value isn’t one of them). The ST model went on sale last month, starting at $24,495 (with shipping). For that, you get interesting looks, the handiness of four doors and a hatchback, 252 horsepower (enough, Ford says, to hit 154 mph, if you have a race track handy) and a federal gas mileage rating of 26 mpg in combined city/highway driving. Rivals include Volkswagen’s GTI four-door hatchback ($25,790 and up, 200 hp, 25 mpg) and Mazda Speed3 ($24,995 and up, 263 hp, 21 mpg).
The pros Only wheel time, of course, can tell you whether good numbers on paper translate to good on the road. Focus ST, it turns out, is good in both ways. Here are the main pieces that turn a Focus economy compact into a Focus ST yippee-mobile: » Engine: Two-liter, turbocharged four-cylinder good for 252 hp and 270 pounds-feet of torque, in contrast to regular Focus’ 160 hp and 146 pounds-feet. Hours driving around here showed the high-power engine to be not at all high-strung. It can amble along nicely, or just flat go when you drop down a gear or two and nail the gas pedal.
Focus ST is powered by EcoBoost engine. COURTESY OF FORD
» Transmission: Six-speed manual. Period. No automatic. The gearshift moves in crisp, firm fashion. The only gripe is that it’s a bit too easy to mistake the 3-4 and 5-6 gear slots. Takes practice to get the feel. Clutch engages briskly. You’ll kill the engine if you’re inattentive. » Suspension (another “duh” for a sporty car): ST gets different springs, stabilizer bar and suspension geometry vs. the ordinary Focus. Driver gets confident, poised cornering — without a jarring ride. Part of that poise is from the tires: 235-by-40 18-inch Goodyear Eagle summer skins. Figure on separate winter rubber if you live where it snows.
The cons As in the regular Focus, rear seats are tight, especially with tall people in front. Put the kids in back and drive a bit to decide if it’s really a family car. Drawbacks: » Focus is small inside for its overall footprint, and ST’s no different. » There’s no backup camera at any price. Seems a big omission. Ford says ST buyers aren’t the sort who’ll care. » Torque-steer compensation is well-intentioned but wrong.
FORD FOCUS ST DETAILS
» What? High-performance version of Focus front-drive, four-door, compact offered only as a hatchback. » When? On sale since September. » Where? Made at Wayne, Mich. » Why? Boost the Focus image, draw new buyers. » How much? $24,995 including $795 shipping, to $30,265. » What makes it go? 2-liter turbocharged EcoBoost four-cylinder gasoline engine rated 252 horsepower at 5,500 rpm, 270 pounds-feet of torque at 2,500 rpm. ST is offered only with six-speed manual transmission. » How big? About 6 inches longer, 2 in.
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wider, 100 lbs. heavier than rival Volkswagen GTI. Focus ST is 171.7 in. long, 71.8 in. wide, 58.4 in. tall on a 104.3-in. wheelbase. Weighs 3,223 lbs. Passenger space is 90.7 cu. ft. Cargo space is 23.8 cu. ft. behind rear seat, 44.8 cu. ft. when rear seat’s folded. Turning circle diameter is unusually wide, 39.4 ft. » How thirsty? Rated 23 mpg in the city, 32 mpg highways, 26 in city/highway mix. Test car trip computer showed 25.1 mpg (3.98 gallons per 100 miles) in mix of frisky driving with frequent downshifts and hard throttle on rural two-lanes and relaxed interstate cruising. Burns regular, holds 12.4 gallons. » Overall: Tons o’ fun for pounds o’ dough.
Avalon Continued » 1D
dard items are defrosting outside mirrors and heated front seats. On the other end, though, the top-flight Limited (like the preproduction test car) starts at $3,250 more than the 2012 Limited, which admittedly wasn’t as lavish. » Mileage: Fuel economy, and not just for the new hybrid, is up a bunch. The V-6 gas engine is rated 4 percent to 9 percent better in the government’s city/highway combined rating. The 100pound diet helps. » Looks: The previous Avalon had a whiff of the dork about it. Not quite so with the new one. It’s still on the conservative side, but stylishly so. The grille is more dramatic but not exhibitionist, and the tail angles down in a slimming fashion that suggests “premium.” » Interior: Updates are lovely to see and feel. Lots of soft-touch materials, and straightforward lines and angles that, while not everyone’s idea of grace and beauty, are simple and honest.
No fan of screen Touch-screen controls in the Limited test car were especially sensitive, which some might love but Test Drive dislikes. Avalon’s 6.1-inch main screen is paltry in these days of 8-inchers. One interesting feature: The climate control fan display gets bigger when you touch it. That makes it easier to adjust, though the adjustment is via a
left or right stroke, which isn’t as handy as a tap or push, or a conventional knob.
How different settings feel
EARNINGS
The gasoline V-6 and sixspeed automatic transmission are carried over from the previous car, but the transmission is tuned differently, Toyota says. It has a “faster-locking torque converter that locks up early even in second gear.” To the driver, that means the sloppy feel you get in some automatics is banished, at the same time reducing the mpgrobbing slippage of a conventional automatic. It also means the car drives more like a sporting machine and less like a wheeled hog.
A few complaints An “eco” mode ruins all the fun, though. Mainly, it makes the throttle less responsive. Test Drive discovered, however, that sluggish “eco” settings can be useful in stop-lurch traffic, minimizing the tendency to become intimate with the tailpipe of the car ahead. Brakes felt somewhat soggy on the test car, very out of character with the car’s nifty new responsiveness. The hybrid system, similar to what’s used in the gas-electric version of the Camry and the Lexus ES, is OK. It did as advertised and ramped up fuel economy considerably. Like the gas model, it was generally quiet and serene. But because it’s based on a modest-power four-cylinder gas engine, not a six, the sounds of strain and struggle come through when you push the go pedal hard.
AVALON AT A GLANCE » How big? Bigger trunk, slightly smaller interior than 2012. Avalon is 195.2 inches long, 72.2 inches wide, 57.5 inches tall on a 111-inch wheelbase. Base gas model weighs 3,461 pounds., base hybrid 3,585 pounds. Passenger space: 103.6 cubic feet (102.3 cubic feet gas with moonroof and hybrid). Trunk: 16 cubic feet (14 cubic feet hybrid). Turning circle diameter: 37.4 feet. » How thirsty? Gas rated 21 mpg city, 31 highway, 24 (with 18-inch wheels) or 25 (17-inch wheels) combined. Trip computer in preproduction test car showed 26.1 mpg (3.83 gallons per 100 miles) on rural two-lanes in hilly terrain. Hybrid rated 40/39/40. The mpg meter in preproduction test car showed most 15-minute segments in low 30s. Both use regular, hold 17 gallons. » Overall: Nice update, and hooray for the lower base price.
Honda’s quarterly profit surged 36 percent as Japanese automakers bounced back from last year’s tsunami disaster in northeastern Japan. KOJI SASAHARA/AP
Honda profit jumps following recovery Japanese tensions with China, however, will lower future earnings
By Yuri Kageyama Associated Press
TOKYO — Honda’s quarterly profit surged 36 percent as Japanese automakers bounced back from last year’s tsunami disaster in northeastern Japan, but the company lowered its annual forecasts Monday because of a sales plunge in China. Honda Motor Co. raked in a $1 billion net profit for the July-September quarter. Sales jumped 20 percent. Honda has recovered
strongly after being hit hard by the March 2011 earthquake and tsunami disaster that disrupted car production, and the floods in Thailand later that year. But the Tokyo-based manufacturer of the Accord sedan, Fit compact and Asimo humanoid robot lowered its forecasts for the business year through March 2013. It cited the recent sales drop in China sparked by a territorial dispute that has set off violent protests in parts of China and a call to
boycott Japanese goods. It now expects to sell 4.1 million vehicles in the year through March 2013, down about 180,000 from the earlier projection to sell 4.3 million vehicles. Still, that number is an improvement of more than a million vehicles over the 3.1 million Honda sold globally in the previous disaster-struck year. Honda sold 996,000 vehicles during the fiscal second quarter, up from 678,000 vehicles a year earlier. Honda now expects a $4.7 billion net profit for the full fiscal year, up 78 percent from the previous year.
ONTHEMOVE » TALLAHASSEE DEMOCRAT » MONDAY, NOVEMBER 5, 2012 » 5
EARNINGS
Ford reports $1.63 billion profit
A worker at the Ford Stamping Plant in April. Ford earned $1.63 billion in the third quarter. AP
North America provides bright spot as Europe’s problems persist By Dee-Ann Durbin Associated Press
DEARBORN, Mich. — Europe may have lost its appetite for new cars, but buyers in America and China propelled Ford to a better-than-expected profit in the third quarter. Ford Motor Co. earned $1.63 billion, down only slightly from a year earlier, despite lower worldwide sales and bigger European losses. It was the company’s best performance
ever in the third quarter. Ford said Tuesday its per-share net income was unchanged at 41 cents. Excluding one-time items, like severance payouts, Ford earned 40 cents per share, beating Wall Street’s forecast of 30 cents, according to FactSet. Ford reported a $2.3 billion pretax profit in North America, its best performance since the company began reporting separate North American results 12 years ago. The region has been profitable for
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three years now, after a grueling restructuring that saw thousands of job cuts, plant closures and the accelerated development of new products like the Focus sedan. That restructuring is now Ford’s blueprint for Europe, which is expected to drag down results this year and next. “We know what it takes to have a healthy business,” Chief Financial Officer Bob Shanks said. Ford’s revenue fell 3 percent to $32.1 billion as vehicle sales dropped
worldwide, but the company still exceeded Wall Street’s revenue forecast. That was due to North America, where revenue jumped 8 percent to $19.5 billion, helped by higher pricing and increased sales of more profitable trucks and SUVs like the Ford Explorer. It was the third quarter in a row that the company has made more than $2 billion in North America and has reported an operating margin of 10 percent or more.
EARNINGS
A turnaround in South America and a rosier outlook in Europe helped push General Motors shares up Wednesday percent. GM said it earned $1.48 billion from July through September. AP
GM nets $1.48 billion in income despite Europe
By Nathan Bomey Detroit Free Press
DETROIT — General Motors Co. reported net income of $1.48 billion in the third quarter, a 14.5 percent decline from a year earlier, as the North American market continued to fuel profits despite the economic malaise in Europe. The performance significantly outpaced Wall Street expectations, even as GM estimated that it would lose between $1.5 billion to $1.8 billion for the full year in Europe. The strong showing “stems from our geographical diversity, strong brands and financial vigor we are installing in the business,” GM CEO Dan Akerson said in a conference
call. In North America, GM posted an operating profit of $1.82 billion. The figure, a 17 percent decline from a year earlier, was a strong performance partly offset by $250 million in extra income taxes.
Nagging Euro-problem The automaker said it would post slightly better results in Europe in 2013 and projected it would break even by mid-decade, reflecting the depth of its challenges there as the continent faces a sovereign debt crisis. GM Vice Chairman Stephen Girsky, who is leading the automaker’s turnaround efforts in Europe, said
the company had already reduced its number of employees in Europe by 2,300 this year and plans to cut an additional 300 positions. “We’re getting this done largely from voluntary separations, retirements and will continue to drive further head count reductions in the future in line with demand,” Girsky said. GM posted earnings per share of 93 cents excluding one-time financial items, compared with analysts’ expectations of 60 cents.
New autos coming GM’s financial performance could provide fodder for debate in the presidential campaign, which has
featured a fiery debate over the federal government’s $49.5 billion bailout of GM in 2009. The automaker’s global revenue rose 2 percent to $37.06 billion in the third quarter. GM Chief Financial Officer Daniel Ammann said the company was pleased with its North American performance especially because “we have the oldest portfolio” of products compared with GM’s competitors. That will change in 2013, when GM will deliver several critical products, including the redesigned Chevrolet Silverado pickup truck. By the end of next year, about 70 percent of GM’s nameplates will be redesigned.
ONTHEMOVE » TALLAHASSEE DEMOCRAT » MONDAY, NOVEMBER 5, 2012 » 7
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8 » MONDAY, NOVEMBER 5, 2012 » TALLAHASSEE DEMOCRAT » ONTHEMOVE
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