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May 29, 2007

Product Range is Key to Owner Loyalty

Customer loyalty is important to automakers. When more owners trade their vehicle for a new one from the same brand, it means the brand has to spend less money to capture or conquest owners of competitive products—an expensive undertaking. One key determinant of owner loyalty is the breadth of the brand's product portfolio: the more products a brand offers, covering many different segments, the higher probability an owner can find their next new vehicle within the same brand.

In the February-April 2007 time period, Lexus had the highest owner loyalty—53%—among the 14 premium or luxury nameplates, based on data collected by the Power Information Network (PIN), a division of J.D. Power and Associates. This means more than half of Lexus owners who traded in their vehicles during these three months traded for another Lexus. This repurchase rate is almost 8 percentage points above that of Porsche, which has the next-highest owner loyalty among premium brands; Mercedes-Benz, Cadillac and BMW round out the top five premium nameplates in terms of owner loyalty.

Among the 23 non-premium or non-luxury nameplates, Toyota had the highest owner loyalty rate at 59.1%—nearly 7 percentage points ahead of Honda. Hyundai, Nissan and Chevrolet ranked third, fourth, and fifth, respectively.

Two brands—Porsche and Subaru—have enjoyed high owner loyalty despite narrow product ranges. Porsche placed second in the premium market, ahead of several brands with much more comprehensive product offerings, while Subaru placed seventh among the non-premium nameplates despite a limited product range.

May 25, 2007

ESC is Better Than Nine Lives

Electronic Stability Control (ESC) can help motorists retain control of their vehicle and even avoid vehicle rollovers—especially trucks and sport utility vehicles. The software-based safety system interacts with a vehicle's engine and drivetrain components to recognize and correct dangerous situations without driver intervention. ESC compares the direction in which the vehicle is headed with the direction the driver intends to go—as indicated by the position of the steering wheel. With speedy calculations, ESC can determine if the vehicle is headed off course and then takes corrective action, often before the driver even realizes there is a potential problem.

This complex automotive technology uses preprogrammed electronic "maps" to identify unstable vehicle conditions, such as understeer (when the front wheels slide first in a corner, also known as plowing) or oversteer (when the rear wheels slide first and the car attempts a spin, also known as fishtailing). If the system recognizes a dangerous condition, it automatically triggers a number of evasive actions.

Based on the driving conditions and the manufacturer's programming, the system can reduce throttle input by temporarily interrupting the flow of fuel or spark to the engine to reduce speed; apply each wheel's brakes separately to bring the vehicle under control; automatically apply ABS; and in vehicles equipped with active steering, the system can countersteer (take control of the steering gear) to regain control. All of these actions can be performed without—and in spite of—driver intervention. For example, the system can engage ABS—regardless of whether a driver's foot is on the brake pedal, and it can reduce engine power—even if the driver has the pedal to the metal.

A typical scenario: Imagine driving down the freeway in light to medium traffic at 65 mph. Suddenly, you notice a tire or other object directly in your lane. You apply the brakes and swerve to avoid the object. Without ESC, even if you were able to reduce your speed to 58 mph when you swerved, the combination of braking and swerving at such a high speed might cause the vehicle's rear end to swing wide (oversteer) quickly, leading to an uncontrollable situation for most drivers.

With ESC, you could swerve, but it would be very unlikely that the vehicle would become unstable. The only things you might notice would be a light on the dashboard flashing to indicate that the ESC system is in use, and an elevated heart rate resulting from escaping danger. In the meantime, your vehicle's computer would be calculating the appropriate actions to take to protect you. In milliseconds, ESC can determine the best course(s) of action to maintain vehicle stability, engage the relevant subsystem (brakes, throttle, steering) and take action.

According to the National Highway Traffic Safety Administration's (NHTSA) Web site (www.safercar.gov), 218 new car and truck models for the 2007 model year come equipped with ESC or offer it as an option (see: www.safercar.gov/pages/ESC-EquippedVehicles-2007.html for the complete list). When you're in the market for a new vehicle, consider a model that features ESC. The cost is fairly reasonable, and it could save your life.

May 23, 2007

Fewer Dealers Means More Profits

One ingredient common to the turnaround plans of each of the three domestic automakers—Ford, General Motors and Chrysler—is reducing the number of dealers. While the domestic share of the U.S. new-vehicle market has declined (from 65.7% in 2000 to 56.5% in 2006), the domestics' dealer networks have not been winnowed to match lower demand. As the dealer networks are reduced, the remaining outlets will become more profitable.

The domestic brands' sales per outlet have shrunk substantially. In 2006 the typical Ford franchise sold 631 new Ford vehicles, down from 873 in 2000, while the typical Chevrolet franchise delivered 583 Chevrolets in 2006 vs. 612 in 2000. In contrast, the typical Toyota franchise sold 1,685 units in 2006, up dramatically from 1,179 in 2000, and the average Honda franchise sold 1,289 units in 2006, up from 1020 in 2000.

The domestics' lower sales per outlet translates into lower profitability from the new-vehicle department and, in the long term, a lower number of units in operation and reduced parts and service revenues. Furthermore, dealer-OEM relations deteriorate when dealer profitability sags. After all, the dealer is in business to make money and when he or she isn't doing that, the relationship with the factory becomes strained. On the other side of the coin, Toyota and Honda stores (and other import franchises) are increasingly profitable, and this in turn helps their relationships with the factory.

In short, as the domestic manufacturers pare their dealer networks, the profitability of the remaining stores will increase, which in the long run will help not only the dealers but the OEMs as well. Consumers benefit as well from a healthy dealer network because the dealers can offer better, more cost-efficient long-term service to retail customers.

Imitation Automobiles

I've never been a fan of competitive advertising. If you have a good product and you know it, I don't think you need to mention another company's product in your ad. After all, why would you want to give your competitor free advertising?

If imitation is the sincerest form of flattery, BMW must be pretty pleased. There are several TV commercials running with automakers comparing their products to BMW's. After seeing these commercials I ask myself, whatever happened to the concept of competitive advantage—knowing the strengths and weaknesses of your product or service and communicating its benefits?

A current Hyundai commercial, for example, shows one of the automaker's models with a BMW 5 Series in the background. The voiceover explains how the Hyundai model is in many respects better than the BMW as the camera pans so that, by the end of the commercial, the Hyundai model eclipses the BMW.

In each industry segment in which it competes, Hyundai is known as the value offering. Hyundai is not necessarily cheap or inexpensive—with some models approaching an MSRP of $30,000—but compared to competitive products in the same segment, its models consistently are priced lower. BMW is a luxury automaker with premium-priced products. In every category in which they compete, BMWs are more expensive than competitive products from mainstream automakers. What puzzles me is that BMW and Hyundai are diametrical opposites from a branding perspective. I imagine that Hyundai is trying to communicate its value proposition, but the comparison is so extreme that it doesn't work for me, and I wonder if it works for other prospective buyers.

Similarly, Ford recently commissioned movie director David Mamet ("Wag the Dog," "Glengarry Glen Ross," and "Ronin") to produce a few television ads for Ford's crossover vehicle, the Edge. The first spot (www.youtube.com/watch?v=nbN0aaI87M8) features a clandestine meeting between two Edge drivers in a dark alley. With shadows covering their faces for dramatic effect, one driver tells the other that the Edge beat the BMW X5 in a sprint from 0-60 mph. He mentions that the X5 is "scary fast," but the Edge beat it by 0.2 seconds. The implied message is that the Edge offers more performance than the X5.

The Edge is offered in three versions: SE, SEL, and SEL Plus, with base prices starting at $25,995, $27,990, and $29,745, respectively. The BMW X5 is offered as an X5 3.0 six-cylinder model (the version referenced in the ad) and a V-8-powered 4.8i. The 3.0 model base price is $45,900, while the 4.8i starts at $54,500. With such a price disparity, is the Edge really comparable to the BMW in any way, except for the fact that they both are CUVs, or crossovers, and are available with all-wheel drive (standard in the BMW and optional in the Edge)?

Ford is running another commercial that compares the Edge to the Lexus RX 350 for interior quietness (www.youtube.com/watch?v=kYxq33_HTks&mode=related&search). In the commercial, Ford claims that the Edge won a "quiet test" against the Lexus. Will this attract some potential Lexus buyers into Ford showrooms? Maybe.

When prospective new-vehicle buyers narrow their consideration set to a manageable number, they likely will compare brands, so why tell them what to think? Let them make up their own minds. However, I suppose that's the main point of these commercials. BMW is known for performance and Lexus is recognized for interior quietness and refinement. Some advertising and marketing people believe that mentioning these benchmark brands will provide a positive halo effect on their own brand. I disagree, although I find the commercials entertaining.

May 22, 2007

Subcompacts - On the Move

The trend toward compact models - whether based on better fuel economy, entry-level prices, the attraction to small, sporty and versatile models, or all of the above - continued to gain ground in the first month of 2007. During the first four weeks of January 2007, the average compact basic model remained on U.S. auto dealer lots an average of 39 days before selling - 9 fewer days than in the same month a year ago. The retail turn rate (days to turn) in January 2006 was 48 days, based on data collected by the Power Information Network (PIN), a division of J.D. Power and Associates.

The average new-vehicle transaction price (less customer cash rebate) for a subcompact in January 2007 was $14,447, more than $1,000 higher than in January 2006, when the average price was $13,393. The major reason for the increase, however, was that three of the best-sellers in the segment - the Toyota Yaris, Nissan Versa and Honda Fit - were not on the market in January 2006. The Fit sold for about $2,000 more than the average transaction price for a compact this year, and the Versa sold for nearly $1,000 more. The Fit and Versa were among the 10 models that sold in the shortest average number of days in January, PIN data indicates.

Sales of small or compact basic cars (including segment leaders Toyota Yaris, Nissan Versa and Chevrolet Aveo) more than doubled from a year ago, according to the J.D. Power and Associates Sales Report.SM This year's year-to-date growth follows a 60% increase in compact basic sales in 2006. Nearly 289,000 compact basic models were sold last year, up from 183,000 in 2005.

Among the major compact categories, compact basic models - which include subcompact sedans and hatchbacks - posted the largest gains among all eight compact segments, as a total of 22,733 were delivered, up from 9,270 units in January 2006. A year ago, three of the top-selling models were not even on the market. The Toyota Yaris, the segment leader, replaced the previous slow-selling Toyota Echo last spring. In Europe, the Yaris has been one of the best-selling models. The Fit was sold in Europe and Japan as the Jazz, and the Versa has been marketed in Japan as the Tilda.

May 21, 2007

Driving on the Autobahn

Germans take driving seriously. They don't eat fast food, apply eye makeup, or read the newspaper while driving—behaviors I have witnessed on numerous Los Angeles freeways. In fact, German automakers were criticized in the 1990s by the U.S. automotive enthusiast press for not providing adequate cup holders in their models. German manufacturers countered that cars are for driving, not for cruising down the freeway drinking hot coffee and eating jelly donuts.

A friend of mine from Germany tells me that lane discipline on the autobahn is taken seriously—not surprising given the near three-digit speeds. Unmarked police cars and motorcycles armed with video cameras patrol these German freeways, where the rules of the road are much stricter than in the United States.

On the autobahn, penalties for driving infractions can be severe. As of May 2006, for instance, citations for tailgating can result in a suspended license for as long as three months. Stopping on the autobahn also is not permitted, unless there is an accident or emergency (running out of gas doesn't count, as this is considered preventable and is subject to a fine). Horn honking and headlight flashing are permissible to signal your intention to pass, but legally required distances between vehicles must be followed, even while passing.

A common misconception is that there are no speed limits on autobahns, but this is not the case. According to AutoWeek Magazine, "at least half of the 7,500 miles of German autobahns have permanent or temporary speed limits." Although the "recommended" speed is 81 mph, the average speed is 93 mph (exceeding the recommended limit is allowed, but speeders may be subject to increased liability in the event of an accident). Electronic signs allow speed limits to be changed based on weather conditions, unusual traffic patterns or construction. But there are still many areas where there are no speed limits whatsoever.

One of the most important traffic rules on the German autobahn is related to passing. Overtaking is only permitted from the far left lane—the passing lane. No passing is allowed on the right side of the other vehicle. Steady cruising or driving in this lane is only permitted when all other lanes are occupied due to traffic conditions. Drivers who ignore these rules may be fined.

There also are some unwritten rules regarding passing on the autobahn. There is a strict hierarchy of brands that dictates which vehicle should move over when being passed. At the top of the pecking order is Porsche. German drivers know that when a fast-moving Porsche is approaching they should change lanes and allow the other driver to pass. Whether it's a modified 911 or a Cayenne Turbo, Porsche means get out of the way—fast!

Next is Mercedes-Benz. In conjunction with its own in-house engine tuner, AMG, Mercedes offers 12 models that feature from 500 to 700 horsepower. On the autobahn, everyone yields space to an approaching Mercedes in the passing lane—everyone except Porsche drivers, of course. Third is BMW, which offers several models with 500 horsepower, followed by Audi, which offers a few models sporting between 400 and 500 horsepower, and finally, Volkswagen.

What's interesting about this hierarchy of brands is that according to one recent study of wealthy individuals in the United States (average income of $313,000 and average net worth of $3.3 million), the brand strength and reputation of Porsche, Mercedes-Benz, and BMW is similar in this country. For a second consecutive year, Porsche earned the top score as the most prestigious luxury auto brand in the 2007 U.S. Luxury Brand Status Index survey by the New York-based Luxury Institute. Mercedes-Benz tied for second with Lexus, and BMW was third.

May 18, 2007

German Machinery Part 3—Mercedes-Benz

Mercedes-Benz recently released its redesigned C-Class, the automaker's volume model, in Europe. Soon it will reach U.S. dealerships, which is a good thing, because luxury car buyers here will appreciate the "shrunken" S-Class design aesthetic and expected improvements in quality. The resemblance to Mercedes' penultimate model, which offers 500 horsepower for around $100,000, is no accident. The new C offers much of that goodness for less money.

Mercedes' in-house tuner subsidiary, AMG, is planning to fit its latest powerhouse into the new C-Class to create the Mercedes C63 AMG. This large (6.2-liter) V-8 engine is expected to produce between 450 and 500 horsepower in a bid to overthrow the Audi RS4 (420 horsepower and 0-60 mph in 4.2 seconds) and the forthcoming BMW M3 (420 horsepower and a similar 0-60 time). In a vehicle that will likely weigh around 3,500 pounds, this should provide class-leading acceleration.

For Mercedes-Benz, that's just the beginning. The long-time provider of fast, smooth, and luxurious automobiles, Mercedes-Benz offers a selection of 12 models that feature powertrains with at least 500 horsepower. Here's what I found on mbusa.com:

(1.) The E63 AMG sedan, which is based on the midsize E-Class luxury sedan, features 507 horsepower for $85,000.

(2.) And, if you like the E63 sedan but need more cargo or passenger capacity, try the E63 wagon for a reasonable $800 premium over the sedan.

(3.) The S600 sedan, based on the S-Class full-size luxury liner, is the $140,000 flagship with a V-12 twin-turbo engine that, like all V-12s, is designed to produce smooth, effortless acceleration rather than outright power. Total output is 510 horsepower.

(4.) If 510 horsepower isn't enough, step up to the S65 AMG version with a 604-horsepower V-12 engine for only $42,000 more.

(5.) For stylish good looks, you can choose the CLS63 AMG for $93,000. It features a 507-horsepower V-8 engine, a 4-door coupe design, and a 7-speed automatic transmission.

(6.) If you want a true, 2-door coupe, maybe the CL600 with its twin-turbo V-12 and 510 horsepower is more to your liking.

(7.) How about a convertible? Try the SL55 AMG based on the SL-Class roadster. It features a 510-horsepower V-8 engine, 19-inch wheels, and an automatic transmission.

(8.) If you like convertibles but want a V-12 engine, try the SL600 roadster for $132,775. A twin-turbocharged engine will get you anywhere you need to go—fast.

(9.) If that's not enough, try the AMG version, the SL65 AMG, which features a 604-horsepower version of the same engine and 19-inch wheels.

(10.) If high-powered SUVs are what you have in mind, Mercedes offers two, each priced at $85,000: The ML63 AMG is based on the M-Class, the automaker's crossover vehicle, and features a 503-horsepower V-8, a 7-speed automatic, and go-anywhere capability.

(11.) The R63 AMG is a super-high-performance version of the R-Class "minivan." It is powered by the same engine as the ML63 AMG and sports 20-inch wheels. You and seven of your closest friends can travel as fast as 155 mph on the autobahn or your local track.

(12) Finally, for buyers with $452,750 to spend, AMG will provide its topline model, the SLR McLaren. Designed and engineered in conjunction with race car-builder McLaren—the same firm that partnered with BMW to create the McLaren F1, one of the fastest road cars ever produced—this heavy hitter can move to 60 mph in 3.8 seconds and on to a top speed of 208 mph.

In summary: Whether you need to cruise in a 600-horsepower convertible; drive cross-country in a 2-door coupe with a twin-turbo V-12; or travel beyond 200 mph, Mercedes has the car (or SUV) for you.

  • Source: mbusa.com and wikipedia.org

  • May 17, 2007

    Making a Name—Midsize Offerings a Must for Manufacturers

    If a non-premium nameplate hopes to compete with the big boys—General Motors, Ford, Toyota and DaimlerChrysler—it needs to, first of all, have an entry in the midsize conventional car segment, and, second, do well in the segment. After all, the midsize conventional (sedan) car segment, which includes models such as the best-selling Toyota Camry and Honda Accord, continues to dominate the new-vehicle market. With a 13.59% share through the first four months of 2007, this segment is the largest of all 26 vehicle segments that J.D. Power and Associates tracks and analyzes.

    To perform well in the midsize conventional car segment, a nameplate needs to achieve high quality, maintain a good reputation and bring to market a steady flow of fresh products, among other things. However, one marketing tactic that is not mentioned all that frequently is continuity, i.e., retaining the same model name through the years. By retaining the same model name, the nameplate creates a large pool of existing owners from which to draw repeat buyers. The brand also creates widespread and deep name awareness and recognition.

    Since the midsize car segment was created in 1962 with the introduction of the Ford Fairlane (followed in 1963 by the Chevrolet Chevelle), the Ford Division has used nine different names for its midsize cars, the most recent being the Fusion. During that same time, the Chevrolet Division has used six names, the current model using the Malibu moniker. In contrast, the Toyota nameplate has had just four names for its midsize cars, including the Corona, Cressida, Avalon and Camry.

    The standout brand for retaining names, though, is Honda. Honda entered the midsize car segment in 1976 with the Accord, and during the 31 years since, Honda has exclusively used that one name for its midsize car. With this in mind, it's not all that surprising that in 2006 the wholesale value of a three-year-old Accord was 70.2% of its original transaction price, while a 3-year-old, 4-door Camry had retained 65.4% of its original price. Both of these numbers are far above the results for all domestic midsize cars. Keeping the same model name through the years by itself certainly will not ensure success in any segment, but it certainly helps.

    May 16, 2007

    German Machinery Part 2—Audi

    Audi, a long-time purveyor of German luxury sedans, seems to be changing its tune. Audi's recent performance renaissance began in 1998 with the introduction of the TT sports car, which featured innovative design and the availability of Audi's proprietary Quattro all-wheel-drive (AWD) technology.

    Quattro was originally featured on a turbocharged rally car aptly named quattro. Audi was the first automaker to use AWD to take advantage of a rule change in rally racing that permitted the technology. Although critics dismissed Audi's AWD efforts in racing, due largely to the excess weight required by AWD hardware, quattro dominated rally races during a two-year period. The brand's focus on performance kicked into high gear when it purchased Lamborghini, an Italian builder of extremely fast, high-performance automobiles; all of the company's models have top speeds near 200 mph.

    Like its German competitors BMW and Mercedes-Benz, Audi offers max-performance variants of its mainstream models. BMW's M models, which feature increased power and handling, include the M5 sedan and M6 coupe with 500 horsepower. If that's not enough, call U.S. tuner Currency Motor Cars and ask for a custom 799-horsepower M5 with a top speed of 240 mph for $349,000 (but call quickly—only 10 will be made). German tuner AMG offers spicy handcrafted versions of mainstream Mercedes models with 500, even 600 horsepower. Each AMG engine features a plaque with the signature of its builder.

    Audi uses S and RS nomenclature for models aimed at speed addicts. The S4, S6, S8, and RS4 are endorphin-producing machines with all-weather quattro capability. Buyers can opt for an S4, which is a high-performance version of the A4 packed with a 4.2-liter V-8 (0-60 mph in 4.8 seconds). Or, they can try a high-performance version of the S4—the RS4—which sprints to 60 mph even faster—in 4.2 seconds. Thanks to its relationship with Lamborghini, Audi also offers two V-10s, which are based on the Italian automaker's engine architecture from the Gallardo. In the S8, the V-10 produces 450 horsepower and achieves 60 mph in 4.9 seconds—seriously fast for a large luxury car. In the S6, the V-10 produces 435 horsepower and a 0-to-60 time of 5.1 seconds. If it were my money, I'd choose the S6. Yes, it has a cool 10-cylinder engine, and yes, it's fast, but the thing that I really like is the use of high-tech LED running lights in the front grille.

    For the past several years, numerous U.S. models from Audi have featured LED taillights. They're more expensive than traditional bulbs, but last the lifetime of the vehicle and allow designers more freedom in placement. Lately, European automakers have been offering LED headlights on models in their home market, and we'll soon see them on U.S. models.

    The S6 may be one of the coolest models on the road when it comes to lighting technology. I saw one on the freeway the other day. What caught my eye as the S6 approached from behind was the dazzling brilliance of the LEDs. Since they operate on a different frequency than normal lights, they are very bright, even in broad daylight. The LED running lights make the car distinctive and easier to identify from any other car on the road. For that reason, the $72,000 entry fee seems almost reasonable.

  • Source: audiusa.com and wikipedia.org.

  • Wind Noise Significantly Impacts New-Vehicle Owner Satisfaction, Recommendations

    Wind noise reduces ownership satisfaction significantly more than other problems in new vehicles, according to data from the J.D. Power and Associates 2006 Initial Quality StudySM (IQS) and 2006 Automotive Performance, Execution, and Layout StudySM (APEAL).

    Additionally, these owners are less satisfied with their vehicles than owners who experience other problems. Wind noise problems diminish a vehicle's APEAL satisfaction index score by 6.5% more than other problems, on average. Wind noise is the most pervasive problem in the automotive industry, across all segments of the market.

    Compact multi-activity vehicles (MAVs) have wind noise problems 62% more frequently than average, and are the most likely vehicle type to have this problem. The average APEAL satisfaction score for this segment is 5% less than the industry average. However, when isolated to owners who indicate a wind noise problem, the compact MAV APEAL satisfaction score is 12% below industry average.

    Not surprisingly, owners who experience wind noise problems are less likely to recommend their vehicles to others. While 65% of owners who experience other problems say that they'd "definitely" recommend their vehicles, only 53% of owners who experience wind noise would "definitely" recommend their vehicle. Also, wind noise leads to a 3% increase of detractors—owners who "probably" or "definitely would not" recommend their vehicles.

    Correcting wind noise is not an easy fix. A typical vehicle inspection is not likely to identify the problem, and the problem may not develop until the owner has driven the vehicle for thousands of miles after purchase. Excessive wind noise may be a design problem, such as insufficient insulation in the vehicle. Alternatively, wind noise may develop as a defect, such as a door seal with a small air leak. Either way, owner satisfaction is reduced, and working with suppliers to improve the quality of the materials used is essential to improving owner satisfaction.

    Manufacturers and suppliers have made improvements, however. Only half as many new-vehicle owners currently report wind noise compared with just five years ago. However, wind noise remains a consistent problem for long-term vehicle durability. This means that wind noise is less of a problem for new vehicles, but is still a consistent problem for three-year-old vehicles, based on data from the J.D. Power and Associates Vehicle Dependability StudySM (VDS). Perhaps newer models will age better and future VDS study results will reflect sound improvements made to the newest generation of vehicles.

    Wind noise greatly reduces the perceived quality of a vehicle, and can be a daily nuisance for an unsatisfied vehicle owner. Manufacturers that focus on wind noise problems can greatly boost their IQS and APEAL scores by concentrating on making the interior of a vehicle quieter and, as a result, increase owner recommendation levels and retention rates. Reducing wind noise is particularly necessary for manufacturers that produce compact multi-activity vehicles.

    May 15, 2007

    German Machinery Part 1—BMW

    In Germany, you can find two things that appeal to all automotive enthusiasts: the autobahn and the Nürburgring. In the latter's case, for a small fee, anyone can drive on this former Formula 1 racetrack. And that's all you really need to know to explain why German auto manufacturers excel at producing ultra-high-performance automotive machinery.

    There's lots of good news about the forthcoming M3, BMW's ultra-high-performance model based on the entry-level 3 Series. The current M3 features a 343-horsepower engine that moves this car to 60 mph in 4.8 seconds and on to a top speed—once the electronic speed limiter is removed—of 189 mph.

    Since Audi and Mercedes-Benz offer cars in the same size category with more than 400 horsepower, and because BMW's inline-six cylinder was reaching its capacity in terms of output, BMW had no choice but to up the ante. For the 2008 M3, BMW took its 5.0-liter V-10 engine (with 500 horsepower) from the M5 sedan and M6 coupe, removed two cylinders, and created a 4.0-liter V-8 engine with 420 horsepower that can rev to 8,300 rpm.

    The newest BMW M3 is expected to sprint to 60 mph in around 4.5 seconds and speed through the quarter mile in about 12.5 seconds. That's fast; faster than Audi's RS4, which also has a 420-horsepower V-8 engine but weighs about 500 pounds more.

    For those who think BMW's long-time slogan, "The Ultimate Driving Machine," is advertising puffery, stop reading now. For true enthusiasts, that slogan signifies that BMW is offering an exciting driving experience in all its models. BMW is one of the only automakers to test all models at the Nürburgring racetrack. BMWs are designed to excel in all aspects of driving dynamics: acceleration, braking, and cornering. That's why the M3 engine can supply adequate lubrication during lateral acceleration up to 1.4g. This is the essence of the BMW brand—driving enthusiasm.

    With a list price expected to be around $65,000, this car is for serious enthusiasts. It would be nice to imagine M3s being taken to the track on a regular basis, but the reality is likely going to be quite different.

  • 2008 BMW M3 details and specs courtesy of worldcarfans.com.

  • May 07, 2007

    What a Girl Wants: Better Vehicle Quality

    Among vehicle owners, females experience 14 % more vehicle quality problems than do males, according to data from the J.D. Power and Associates 2006 Initial Quality StudySM (IQS). Additionally, troublesome vehicle designs plague female owners much more frequently than male owners.

    Historically, females have always reported more vehicle problems than males, based on several years of data from IQS and the J.D. Power and Associates Vehicle Dependability StudySM (VDS). This phenomenon consistently presents itself in nearly every vehicle segment, from sub-compacts to premium luxury vehicles. It is also irrespective of age, education, income, or any other demographic, and most vehicle brands are impacted.

    The underlying truth behind why females experience more vehicle quality problems comes down to one key issue: usability. Looking at 2006 IQS data, the number of manufacturing defects reported by both male and female owners is relatively consistent. However, there are design issues that are more problematic for females, which center on vehicle usability, feature operation and comfort.

    Features, controls and displays comprise a category of design-related problems that females note more frequently than do males. However, no single problem stands out in this category. Females find the various vehicle features, controls or displays to be less intuitive, harder to reach, or harder to see. Some examples include the windshield wiper controls, the clock, and dome or map light controls.

    Doors, trunks, hatches and tailgates are also quite problematic for females, and they specifically note that the handles are difficult to operate, and opening and/or closing any of these vehicle access points is difficult. The most obvious inference is that females typically have less strength and thus find that doors require more effort to operate, although long fingernails or jewelry may come into play as well.

    Seat adjustment is problematic for females as well - manual seat adjustment is often more difficult but power seats noticeably reduce the frequency of seat-related problems. Females also have more trouble achieving lumbar comfort and adjusting the headrest. It's certainly conceivable that females adjust their seat more frequently than do males, due to clothing considerations such as high-heeled shoes, hats, large hair clips, etc. More frequent seat adjustments, coupled with the strength required to manually adjust seats, could certainly be the root cause of these problems.

    Perhaps vehicle manufacturers should produce more vehicles that are intentionally designed with females in mind, and further study the vehicle design elements that females find most troublesome.



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