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Don’t Be a Dolt, Buy a Volt

chevrolet_volt_sm
Wait a minute, a car that gets 230 mpg in the city—as claimed by General Motors? Well, you’ve got to read the fine print, Jack, as the story has gotten played out all over the web, courtesy of GM’s press machine.

Is it too good to be true? The Environmental Protection Agency hasn’t verified the claim, as it hasn’t actually tested the Volt. And there’s debate about EPA’s testing procedures, its conclusions, and most of all, its methods for rating plug-in hybrids, or EVs. The agency is still working on the methodology, but there is much skepticism afoot. Check out the story and comments here on the Car Tech Blog, for example.

The Volt, as you may remember, has a 100-kilowatt electric motor, a lithium-ion battery to power it, and a 1.4-liter gasoline engine driving a generator to run the electric motor as the battery discharges. You plug in at night for a complete battery recharge at minimal cost. But—and it’s a big “but”—the car will cost at least $40,000, and you can buy a lot of $3.00 gas for the difference between that and a Prius’ cost. Someone calculated you would have to drive 113,000 miles to make up the price difference. And there are other factors.

Autopia mentioned some of these, quoting a former Tesla exec (no axe to grind here?) who talked about the difficulty in measuring “energy equivalents,” e.g., batteries, house current, power losses, gasoline—not to mention driving cycles. The Volt can run 40 miles before the engine kicks in, so if your commute is less than that, you’ve achieved infinite mpg, not counting use of other resources. Well, that is impressive.

The Tesla exec, Darryl Siry, says in his blog that GM’s 230-mpg claim

isn’t an “untruth”, as long as the main thing you are concerned about is the burning of gasoline as a resource, as opposed to the actual energy efficiency of the system. The problem is that this number will be broadly discussed as a comparison to other cars, particularly the Prius. People will improperly conclude that the Volt is about 5 times more efficient that [sic] the Prius, which simply isn’t true.

So why is GM making so much noise about its admittedly impressive but unverifiable estimate? Well, to co-opt the Prius, of course. And Siry is right when he says it’s also because of the increasingly demanding CAFÉ standards. GM will get a lot of mileage off their 230-mpg claim, even as it’s challenged.

Is the Volt’s claimed 230 mpg more GM marketing hype—or something to celebrate? Let us have your opinion.

—jgoods





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Car Sculpture as Something Less Than Art

Giant Audi TT SculptureIn case you missed the great event, Audi proudly unveiled a giant 10-ton TT sculpture in its home city of Ingolstadt, Germany. Dr. Werner Widuckel, Member of the Board of Management for Human Resources at Audi AG, and Dr. Alfred Lehmann, mayor of Ingolstadt, are shown here, looking totally foolish beside the be-ribboned beast that has already been shown in such eager locales as Berlin, Munich, Beijing, and Hong Kong.

The article in AudiWorld provides predictably blah-blah quotes from these fellas about the sculpture’s significance as a landmark—and the “100 Years of Audi” celebration on July 16, which passed without much notice. In a strange oversight, the article didn’t even include a photo. We got the one above from CarSession.com.

Cloud Gate, Chicago

Providence Bug

Now, why do carmakers (and other companies) make gestures like this? One could also ask why the Pharaohs built their tombs and pyramids, or why Audi’s giant car should be called a sculpture at all. There’s a structure in Chicago (above left - Anish Kapoor’s Cloud Gate) that qualifies, I think, to use that word.

Audi’s “sculpture” is just a glorified ad—like that enormous bug (above right) on the highway in Providence, Rhode Island, advertising an exterminator’s services. Then of course there’s Cadillac Ranch in Amarillo, Texas, probably the ultimate car tomb, celebrated in story and song. Now that’s a car sculpture worthy of the name.

Cadillac RanchWhat do you think about car sculpture as art? What car would you like to see sculpted, and where would you put it?

—jgoods





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Should Suzuki Pack Up and Go Home?

2010_suzuki_sx4_sportback

Something’s wrong over at Suzuki.

The Japanese automaker is skidding hard, as its sales are down a staggering 78 percent from one year ago.

That might not surprise many people. In fact, I’ll bet most folks can’t even recall the last Suzuki ad they saw or even tell me where their nearest dealer is.

Another part of the problem is Suzuki’s American lineup, which includes the Korean-built Forenza and Reno, and the lackluster XL-7.

But Suzuki has been in the news a lot lately. First came those sobering sales numbers. Then analysts urged Suzuki to exit the American car market. But there’s some good news, too, as Suzuki is getting some nice press on the new SX4 Sportback. Also, the infamous Pikes Peak International Hill Climb was won by Nobuhiro Tajima driving a customized SX4.

Of course, the car used for the hill climb was outfitted with a whopping 850 horsepower, but still, it should lend some credibility to just how good the car is.

suzuki_kizashi_conceptI think if Suzuki can eke out enough sales of the Japanese-built SX4 and sell them in the same dealerships that sell motorcycles, the company might have a chance of staying in the American market. Plus, Suzuki’s Camry-fighter, the Kizashi (at right), is due to hit dealerships in 2010. If it’s a success, stay tuned for Suzuki’s American rebirth.

If it flops, watch for the company to pack up and ship out.

Do you even know where your local Suzuki car dealership is? Do you care whether or not the company stays in the United States?

-tgriffith





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For Sale: 1950 Chevy Club Coupe, 437 Original Miles

The 1950 Chevy Club Coupe

The 1950 Chevy Club Coupe

I thought I got lucky when I  found a 2004 used car with only 28,000 miles on it, but my find pales in comparison to Mark Young’s.

According to this story by Jeff Jardine at the Modesto Bee, Mr. Young, who is with The Chevy Connection in Portland, Ore., acquired a 1950 Chevy Club Coupe last year with only 437 original miles on the odometer.

Yup. 437 miles in 59 years.

It seems anytime a story surfaces in which an old car has extremely low miles, a little old lady is involved. This story holds to tradition: It seems the original owner bought the car new in 1950 and shortly afterward had a heart attack after trying to rescue a woman who had fallen out of a boat into a river. (No word on whatever happened to that woman!)

The original owner’s widow then did what is necessary to create an automotive treasure: She drove the car back to her husband’s plumbing business and then didn’t touch it for the next 30 years.

After that, she traded the car in at a local dealership, whose owner smartly parked the car for another 20 years. Now the Chevy is in the hands of Mr. Young, who will put the car up for sale at a Barrett-Jackson auction in Arizona.

I always love stories like this and think Mr. Jardine at the Bee did a great job tracking down and reporting this one.

While I’m still proud of my ‘04 find with 28,000 miles, I know there are a ton more stories like this, with old Chevys just waiting to astound car fans everywhere.

Even if you don’t have a 59-year-old car with 437 miles, I’m sure you have fond memories of old cars… and we’d love to hear them!

-tgriffith





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The Kid Who Dismantled GM

deeseSo imagine for a minute that you nail your first government job. 

An intern, maybe? A page at the House of Representatives? Nope, how about head of President Obama’s Auto Task Force, where your first assignment is figuring out how to dismantle General Motors?

Brian Deese is a 31-year-old law student at Yale who, from November 4 until February, was the only full-time member of the auto task force. Let me repeat: Thirty-one years old. Plus, he had never even set foot in an automotive manufacturing plant until he was given the role of redefining the American automotive industry.

I’m a big fan of Mr. Obama and trust that he’s looking out for the best interests of my country, but holy smokes, sir, a 31-year-old? I’m 32 and have a darned good feel for the auto industry (some readers may disagree), but would never trust myself as the guy to remake the auto industry. 

I may have some brilliant ideas here and there (again, some readers may disagree), but there’s a certain level of knowledge that a 31-year-old just can’t have without a few more years of experience. Wouldn’t you think Mr. Obama would have given a little more thought to the guy he put in charge of the auto task force? 

Granted, in the months since February, a far more experienced team has made most of the decisions, but Mr. Deese is still the guy filtering a lot of those choices, which led to yesterday’s bankruptcy filing.

Maybe Obama made the right choice and found an exceptionally talented young guy who learned the ropes quickly and made the best choices possible. Or maybe it was a blunder quickly rectified by inserting a more mature team around Deese.

Or maybe I’m just jealous that a kid a year younger than me is Obama’s automotive sidekick. Oh well, I guess I get to sit here and criticize everyone else while throwing out my ideas without the pressure of actually having to do anything. I guess that’s pretty good.

What do you think: Should Mr. Deese’s age have been a factor in getting appointed to his position?

-tgriffith



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What Are the Two Best SUVs to Take Camping?

Happy Memorial Day! Today is the day we celebrate the unofficial arrival of summer, and for many of us that means camping! But what are the very best cars to take on your camping trip? After considering everything from your full-size 4×4 truck to your run-of-the-mill Subaru, I’ve narrowed it down to two of the very best vehicles to take on your next trip.

2003-Honda-Element

If your camping trips keep you within state park systems or only slightly off the beaten path, the Element could be the perfect all-in-one vehicle. With available AWD, a removable skylight with shade screen (to keep the bugs out) and ample space to lay a mattress in back, this little SUV could be all you need for a quick weekend away.

2008-Land-Rover-LR3

This is is the SUV that will take you anywhere. Oh sure, you can drive into the state park and look as rugged as any of the thousands of other people there. But if you want to get somewhere where you can guarantee there won’t be another human for miles, the LR3 is the way to go. Plus, you can get a really cool tent that attaches right to the tailgate area. Awesome!

What car or truck will you take camping this summer? Any advice for other campers?

-tgriffith



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The Fuel of the Future: Another Bites the Dust

Hydrogen power: Does Honda see something the United States doesn't?

Hydrogen power: Does Honda see something the United States doesn't?

Someday, we’ll have a new addiction.

The gasoline era will have come and gone, oil cartels will have made their money, and exhaust fumes will have made their mark on Earth.

Today we’re lucky enough to have front-row seats watching the race to see which fuel source will replace fossil fuels. It’s a race including electricity, ethanol, bio-diesel, natural gas, solar energy, wind, hydrogen, and a host of other technologies that may not have even been invented yet.

Electricity is the current front runner, and hydrogen has high hopes of gaining some ground, especially since Honda is a high-profile sponsor with their FCX Clarity. Those hopes took a fiery crash, though, as U.S. Energy Secretary Stephen Chu announced a budget that slashes spending on hydrogen research by 59 percent, or about $100 million. 

Chu said:

We asked ourselves, ‘Is it likely in the next 10 or 15, 20 years that we will convert to a hydrogen car economy?’ The answer, we felt, was ‘no.’

The biggest problem is the lack of an infrastructure to refuel hydrogen cars.

That’s a valid point, but does the U.S. government think they know how the future will play out better than Honda, who has one heck of a reputation for leading the way in automotive innovation? Well… maybe.

Hydrogen fuel cell technology could fail simply because producing hydrogen isn’t a very economically efficient process. And who wants to buy a hydrogen car when there’s nowhere to fill it up? Who wants to build a hydrogen filling station when there are no customers? 

Of course, the other possible outcome is that Honda is right and will somehow create technology that could make hydrogen fuel cells the perfect replacement for fossil fuels.

If that’s the case, the U.S. just gave up their stake in creating a clean new fuel source and gave future car buyers a powerful reason to buy from foreign car makers.

Did the U.S. make the right choice in cutting funding for hydrogen research?

-tgriffith



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Will the Feds Give You $5,000 to Help Buy a New Car?

chevrolet-tahoe-and-suburban

Will the government give you $5K to get rid of this?

Finally, an idea that has potential to help consumers buy cars!

We’ve heard endless stories about the government helping the automakers and the automakers offering vouchers to employees… but up until now there’s been very little help for you and me in buying a new car.

And really, nothing’s going to help automakers more than making it easier for us to buy cars.

A “Cash for Clunkers” plan has been introduced by Representative Betty Sutton (D-Ohio) and co-sponsored by Representatives Bruce Braley (D-IA), John Dingell (D-MI), and Candice Miller (R-MI). Officially known by the convenient acronym Consumer Assistance to Recycle and Save (CARS) Act, it would provide vouchers of between $3,000 and $5,000 to consumers who trade in vehicles at least eight years old for ones that get better fuel economy.

A few limitations are attached to the proposed bill, including a stipulation that the new car must be assembled in North America and achieve 27-30 mpg on the highway. Also, the car must cost less than $35,000.

I’ve been known to voice my opposition to federal bailout money for the automakers, but this is an idea I can get behind. It accomplishes three things:

  1. Stimulates the economy by investing in citizens, not companies
  2. Helps convince consumers to buy from companies who build cars in North America (not limited to the Big Three)
  3. Has a positive impact on the environment by getting older cars off the road (traded-in cars must be scrapped under the CARS act, not resold).

According to Consumer Reports, a similar measure in Germany has resulted in a 21% increase in auto sales. That’s something automakers in the U.S. would love to see!

If your car was at least 8 years old and the government gave you $5,000 toward a new car, would you trade in your current car?

-tgriffith



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Beginning of the End for GM?

gm_buildingGM’s auditor has reported “substantial doubt” that the company could remain viable without bankruptcy. As we write this on Thursday at noon, GM stock sits at $1.83, and the Dow is down 234 points. The company signaled the warning was coming last week when reporting its staggering $31 billion loss for 2008.

GM plans to keep fighting for $16 billion more (plus the $13.4 it was already awarded that it wants to keep) in bailout funds to survive. And so the cost-cutting begins in earnest:

  • 47,000 jobs to go this year
  • 14 plants closed by 2012
  • Saab, Hummer, and Pontiac sold off, shrunk, or shuttered ASAP (Saab is already in bankruptcy in Sweden)
  • GM Europe seeking $4.5 billion in Germany and not getting it.

In regard to the latter point, blogger Angus MacKenzie put it this way:

So there it is: GM’s survival in Europe has nothing to do with the quality of its product (the stylish Opel Insignia is Europe’s 2009 COTY), or the efficiency of its factories (Opel’s Eisenach plant is one of the most efficient in the world). It’s whether the politicians think the cost of GM’s failed European operations putting 300,000 out of work is less than the cost of propping up an automaker in a market where too many automakers have too many factories making too many cars for too few customers.

GM Celebrates 100th Birthday, September 2008

GM Celebrates 100th Birthday, September 2008

This is the same story the Obama administration’s auto task force will have to face, plus a prospective cascade of failure among parts suppliers and dealers.

Perhaps it’s time, in the face of this constant drumbeat of bad news, to start thinking and talking seriously about how reconstruction, i.e., bankruptcy, will work for all of the Big Three, since that appears to be the likely outcome.

The portents are all around us. Rick Wagoner is now working for $1 a year. Most ominous, the UAW has so far made no comment. And, in the cruelest blow of all, Chrysler just knocked GM off its perch as Canada’s top-selling carmaker—for the first time since 1949.

More than ever it appears that any bailout will involve bankruptcy, at least for GM. Do you see any alternative?

—jgoods



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More Rinspeed Madness: the E2

2009_rinspeed_e2_concept_main630-0225-630x360CEO Rinderknecht’s press release says the E2 “is Rinspeed’s answer to the fast changing requirements of the market and sociopolitical perception about the tuning industry.” I suppose he means that tuners aren’t held in the greatest respect by environmentalists, and that is true.

Herr Rinderknecht has indeed become a tuner transformed. His two new cars, the iChange, recently reviewed here, and the E2, a tuned version of another tuned car—the Fiat Abarth 500 SS—both show how environmentalism can coexist with speed, and that is no bad thing. Here’s a video of the standard Abarth 500, released last July, which gives you a wonderful 5.5 minutes of test drive as only the Brits can do it:

The E2, however, is both a sporting car and a commuting car. You can switch the powerplant for a 60-hp output (commuting mode and about 58 mpg) or a full 160 hp (highway mode, 33 mpg) and the incredible performance of the Abarth SS.

Boss Rinderknecht is still, I think, an unreconstructed tuner, but he wants to be on the path to cleanliness and godliness with this dual-purpose car:

I don’t believe too much in eco tuning. Many drivers are not willing to miss out on driving fun and don’t want to drive a something that announces to the world that they do without. But the number of people who want to use our energy supply responsibly - not in the least because they want to protect our environment - will grow quickly.

Und so, vee vill giff dem both.

abarth500

Fiat Abarth 500

Abarth is one of the great tuners of all time, and I remember the great Fiat Abarth cars of the ‘60s, which are still unbeatable. Whether Rinspeed will finally enter this league remains to be seen, but the E2 is an interesting idea. I just hope it doesn’t turn out like the old Caddy Northstar that switched off half its V8 to save power and turned into a dog.

Speed tuning may finally give us the best of both worlds. Yes or no?

—jgoods



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Obama’s Challenge to Think Big

84660752WM031_PRESIDENT_OBAIn the aftermath of the president’s speech to Congress, we’re hearing a lot of praise and a lot of skepticism. Maybe both are in order. On the whole, the speech was masterful—in part at least because of its tone, welcoming engagement from the opposition:

And while his program is certainly open to criticism, he made clear that he would rather engage critics than simply defeat them. He attempted to be the grown-up in the room, willing to accept responsibility and prodding others to do the same.

What struck me most was Obama’s willingness to deal candidly with the challenges that have angered and frightened so many. Regarding the auto industry:

We are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.

Obama 2008The actual agenda for the car industry has yet to be written, much less fought over, and so it will take time for those who are fed up with Detroit to see beyond their desire to punish it. Their case is similar to public anger toward Wall Street and the bankers. As much as they are to blame, we as buyers, investors, dupes, and fools were the great enablers. There were few outcries or grassroots moves to stop them.

Regarding the auto industry collapse, we, too, can take plenty of blame—for wanting and buying bloated and inefficient Detroit cars for so many years and enabling the industry’s business-as-usual practices.

Obama has very big plans. He proposes a synthesis that will incorporate more than fixing the banks and the auto industry. To reform energy policy, health care, and education will be to make short-term stimulus fixes stick. To reform the auto industry will require that these other, larger challenges be met. That is surely true as far as energy and health care are concerned. There can be no new auto industry without tackling those issues.

Whether the public and the Congress will accept Obama’s grand design remains to be seen. But his demonstration of how these problems are interlinked was a great service.

Do you think the speech conveyed real hope for the auto industry? Or was it just “kind words”?

—jgoods



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Killer Deals on Automobiles

New 2008 Infiniti G37, 0% APR

New 2008 Infiniti G37, 0% APR

It’s almost President’s Day, so you should be looking for Killer Deals on cars—if, that is, you have good credit or any money left after the market selloff yesterday. Last week we wrote about some of the incredible deals available. In particular, check out Yahoo’s table of great February deals, most of which last through March 2.

2005 BMW 3-series, $24,000 @ 0.9% APR

2005 BMW 3-series, $24,000 @ 0.9% APR

It’s definitely a good time to buy a car, but here are a few pieces of old advice, as well as some you may not have thought of.

 

1. You’re going to find wide variation (spreads) in vehicle prices, according to Edmunds and CNNMoney

The recent average price paid for a BMW 3-series at one dealership was $40,924, according to Edmunds.com. At another, it was $47,459. That’s a 16% price difference. For the Honda Accord, prices averaged between $22,036 and $28,966, a 31% difference. And on an Audi A6, average prices ranged from $39,472 to $53,638, for a difference of 35%.

2. Be a cool buyer. It’s always been a good idea to act nonchalant and never too eager. And don’t be captive to one dealer; negotiate with three or four before accepting any offer.

Even if you really do want a very specific set of features and color on your car, you should act as if you don’t care so much. . . . Even if you really do want precisely the car this dealer has, try not to let on. When all is said and done, you’ll get the car you really want at a better price by making it seem like you’re ready to buy some other car somewhere else for less money.

 3. Do your homework! You’ll likely get a better price on the Internet than by walking into the showroom cold. You can get dealer quotes and all kinds of specific info on CarGurus.com, of course. Finally, walking in with a financing commitment in hand will get you a better deal, so get preapproved from your bank. 

Some of the best deals to be had are on used higher-end cars (yes, we know the Maybach is out of your range), and manufacturers are offering great financing on some preowned certified ’05-’07 models. See more detail here.

Car/Model

Deal

Kelley Blue Book prices,
exc. cond., 30K miles

3.9% APR, 24-36 mos.

2006 C, about $24K

BMW ’05-’06 X3, X5, 3, 5, 7 series

0.9% APR

2005 3 series, about $24K

Audi ’05-’07 A4, S4, RS4, A6, S6

0.9 to 1.9% APR

2006 A4, about $25K

3.9% APR, 24-36 mos.

Accord sedan, about $16K

Infiniti, all remaining 2008s

0% APR

 

So, the bottom line is shop around, even if you know what you want, and be flexible. As always, you’ll do better if you take something that’s on the dealer’s lot. Just don’t let him know that.

Have you ever seen a buyer’s market like this? Are you tempted?

—jgoods



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Car Industry Still Competitive—in Race to the Bottom

2007 Toyota YarisToyota just got hammered with a recall for a seatbelt component in its 2005-08 Vitz, Belta, and Ractis cars. Some 1.35 million cars are affected, including what we in the U.S. know as the Yaris.

The company isn’t saying how much all this will cost, but at a cheap estimate of $150 per car, it comes to more than $200 million. And that doesn’t include the negative PR value that recalls carry.

This comes at a time when Toyota has just overtaken GM as the world’s largest auto producer, though neither firm has much to celebrate. Toyota beat out everybody but Chrysler in sales drops for December ‘08: down 37% vs. Chrysler’s 53%.

Not to be outdone, Ford took a $14.6 billion bath for 2008, including a whopping $5.9 billion loss in the fourth quarter. Because the auto industry has enormous fixed costs, the companies are burning through cash at terrific rates. It’s hard to see how this can stop, short of unfreezing credit. Instead of taking money from the government, Ford is going to its credit lines for an additional $10 billion in February.

mark-fields-fordWhile it’s healthier than the other Big Two, Ford’s outlook for increasing sales is pretty bleak. One thing it could do is get rid of Mark Fields, formerly one of the company’s “leading figures” whose real contribution to the firm is in some doubt. Says Michelle Krebs:

What really rankles those in the know is that Fields isn’t here in Detroit. He lives in Florida. As part of his contract, he boards the corporate jet every Friday afternoon to go home to Florida. The crew waits for him and delivers him back to Dearborn for the start of the work week. A Detroit TV station reported the estimated cost to Ford to be anywhere from $1 million to $3 million a year. At a time when employees face layoffs, plant closings and buyout offers, such expenses seem self-indulgent at best.

Hmm, didn’t we just hear about Mr. Obama’s reaction to all those Wall Street bonuses?

Is the auto industry still too “self indulgent”?

—jgoods



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Car of the Year?

The Brit with a job any car nut would happily hotwire and take for a joy ride, Top Gear’s Jeremy Clarkson, has named the Chevrolet Corvette ZR1 his Performance Car of the Year. This will likely surprise anyone who hasn’t seen his review of the 638-hp brute, since he’s never been shy about his dislike for American muscle-oriented cars.

jezza-zr1-love1But the ZR1 totally changed Clarkson’s mind and turned him into a strong believer. He gushes quite a bit about the car’s amazing power, handling, and ride comfort, not to mention its relatively reasonable price, at least compared to the Lamborghinis and Ferraris it competes with on the track. I’ll bet those Italian companies aren’t very happy about having to compete for customers with an American car these days (though even raving fan Clarkson admits the Corvette’s interior can’t compete with that of any of the usual exotics).

Clarkson’s certainly got lots of experience driving great cars, and he’s apparently figured out how to overcome his bias against American muscle, but he’s still a U.K. car journalist who gets to drive - and fuel up and repair - on a company tab and does a large share of his driving on a track at illegal speeds. What’s *your* favorite car of the 2009 model year, and why? Would you call it a “performance” car, or just a car?

-Steve Halloran



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