Sleuth: Week of June 1

Hot off the press!

A price jolt for the Volt: Every time the Sleuth writes about the upcoming plug-in-electric vehicle from Chevrolet’s parent General Motors, it seems the price keeps rising. Now there are rumblings that GM is lobbying the United States and Canadian governments for a tax break for its Volt electric car. If approved, they would chop as much as about $7,000 from the retail price in the United States. The production numbers in the first year (2010, possibly) would range from 10,000-30,000 units and then grow. The Sleuth hears the Volt will begin at $35,000 in the United States and more than $40,000 in Canada. Funny, isn’t the currency the same between the two countries? While neither the Toyota Camry Hybrid or Toyota Prius can match the Volt’s projected 40-mile range on electricity alone, they are cheaper. And that brings up the question: how much will you pay for a plug-in hybrid and will it be worth it?

Cadillac expands CTS line to include a wagon: Spies have once again spotted Cadillac’s forthcoming CTS wagon and it seems the car expands on the successful CTS franchise while filling the gap that will be left by the SRX wagon when it is discontinued. The CTS Wagon profile is almost reminiscent of the forthcoming CTS Coupe which means the rear-most roof pillar is extremely thick, and the main body line rises dramatically toward the rear. The taillights reach all the way to the roof, tapering to thin shards as they rise. Cadillac has managed to pack aggressive styling into a station wagon without excessively compromising cargo space. It looks sleek, but it doesn’t have an extremely sloped roof that limits what you can carry.

Toyota’s hybrid plans expand: Last month, news came of Toyota’s Lexus brand was getting a Prius-based gas/electric hybrid vehicle when the next-generation car debuts in 2010. Now the Sleuth hears that the automaker is mulling over at least one more hybrid vehicle that won’t look like anything else in Toyota’s current range. In fact, it could be more of a large wagon. If true, Toyota would maintain its position as a pioneer in the hybrid-vehicle industry. Meanwhile, the Prius-based car would have unique styling inside and out and be priced well north of the Toyota version. It might also use lithium-ion batteries, unlike the current and probably next-generation Prius’s nickel-metal hydride batteries, with the inline-four cylinder gasoline engine displacing 1.8 liters. The next-gen Prius, along with the unnamed Lexus variant, should debut at January’s Detroit, Mich., auto show.

BMW has sights set on a hatch: For some reason, despite their practicality, hatchbacks have never been top sellers in North America. Then how about a disguise? The rumored split trunk feature on the next-generation 5-series is engineered to act like a traditional trunk lid, which also lifts the glass. The car can thus swallow bigger items when needed. Another example of hatchbacks that look like sedans include the current-generation Mazda6. The trend is proof that hatchbacks are becoming more difficult to discern from their sedan counterparts. While the feature is not yet confirmed for the 5-series that’s due out in 2010, it is under review. Split-folding seats would also grant more storage space.

Fiat’s low-cost brand to chase Mini: We already know that Turin, Italy’s, most famous domestic brand is going to make a splash in North American within two years. Now we know that Fiat won’t be the only product the Italians export. To effectively market a new small car, Fiat is still considering a new low-cost brand, and idea that has gained some momentum. Fiat Group CEO Sergio Marchionne said that if his company ultimately decides to give the new brand the green light, it will be completely developed internally. Whichever direction Fiat decides to go, Marchionne says a decision will be made in the next 12 months. The yet-to-be-named car is scheduled for a 2011 launch. Fiat holds sway over Ferrari and Maserati, so the company already knows how to set up dealer franchises here.

Market indicators

Cost of strikes: Negotiations with unions during the past year have been rocky to say the least. Disputes between labor and management have pushed North American automakers further toward the edge. The latest case involves American Axle, which finally patched things up with the United Auto Workers (UAW). American Axle supplies axles for General Motors vehicles. But, it is only now becoming clear how the three-month strike affected GM: $2.82 billion lost. That’s billion, with a “B.” The strike (and no production of big trucks) is bad news for a company and an industry already feeling the heat.

Survival of sport utility vehicles: The automakers are finally admitting that,as gas prices go into the nosebleed zone, demand for sport utility vehicles and trucks is plunging. One automaker (Ford) is even saying that when gasoline topped $3.50 a gallon in the United States, people stopped buying. Automakers such as Ford — as well as the rest of the industry — have taken a hit and it’s quite possible that those segments might never fully recover. Leave it to Ford CEO Alan Mulally to sum it up best: “You just cannot make cars that people don’t want,” Mulally told Automotive News. At least he gets it.