Chevy upgrading its 'Vette to take on Ferrari, Porsche

Paul A. Eisenstein

It’s long been known as “America’s sports car.” But as Chevrolet gets ready to roll out the latest version of the Corvette, that’s clearly no longer good enough for the General Motors division.

When the all-new model, known to aficionados as the C7, debuts at the Detroit Auto Show next January, Chevy is clearly hoping to deliver the sort of sports car that can challenge global leaders like Ferrari, Porsche and Lamborghini.

"We set out to build a world-challenging sports car with design, refinement, efficiency and drive engagement that is second to none," declared Tadge Juechter, the program’s chief designer.

The new model, as its code name signifies, will be only the seventh version of the Corvette since its debut in 1953. First seen in concept form at GM’s annual Motorama car show in New York City, the production “’Vette” quickly developed a following among those who wanted an alternative to the heavy steel land yachts rolling off Detroit’s assembly lines.

Though early models were more show than go, they were popularized in song and on such TV shows as “Route 66,” a CBS series that followed two buddies cruising the back roads of the West in search of adventure.

By the late 1960s, models like the legendary Corvette Stingray had evolved into some of the more powerful automobiles ever produced in the U.S. But the twin oil shocks of the 1970s changed the automotive equation. Downsized Japanese automobiles challenged the Detroit mainstream, while European brands delivered sleek and more nimble alternatives to U.S. luxury and sports car buyers.

While the Corvette could still deliver neck-snapping acceleration off the line, it couldn’t come close to matching the handling of a Porsche or Ferrari in the corners. At the other end of the price spectrum, Americans discovered nimble little Japanese models like the Mazda Miata and so-called rice rockets such as the Honda Civic.

The GM division shifted gears with a fifth-generation Corvette introduced in 1997 and the even smaller, more nimble C6 that debuted eight years later, now about the size and weight of a Porsche 911 — though still boasting the trademark small block V-8 that had powered Corvettes since the mid-1950s.

Despite such improvements, efforts by Chevy to sell its two-seater abroad gained little traction except among a few select fans who wanted something decidedly offbeat. But with Chevrolet today earmarked as GM’s lead brand globally, the automaker is clearly targeting its European rivals with the C7.

And that’s led to an assortment of rumors about what’s in store. Early in its development, there was speculation that Chevy engineers would shift to a Lamborghini-like midengine layout, or migrate to the sort of small, high-tech turbo or supercharged six-cylinder power trains favored by other European competitors.

As the development program heads for the finish line, spy shots have begun leaking out showing that the new Corvette won’t be nearly as radical as some had anticipated. The 2014 model appears to be roughly the same size as the current C6, although it’s expected to make use of new materials and advanced manufacturing techniques that will result in a sports car that’s lighter, more aerodynamically efficient and a lot more nimble.

Meanwhile, the new C7 Corvette will deliver even more power than before. Chevy this week revealed the next-generation LT1 engine, a 6.2-liter small block that is expected to make “at least” 450 horsepower and 450 foot-pounds of torque — 20 horsepower and 26 foot-pounds more than the outgoing LS3 V-8.

If the new two-seater is indeed notably lighter than the outgoing Corvette, that would signify a major improvement in its power-to-weight ratio. For the moment, Juechter is only hinting that it will deliver zero-to-60 times of 4.0 seconds or less, “and that is on the entry-level vehicle.” Chevy has yet to reveal what it has in store for the limited-edition Corvette Z06 and ZR1 versions.

There may yet be some surprises, such as a small, high-tech power train option, more in line with the likes of Porsche or Ferrari, but that possibility — along with a shift to a midengine layout — appear likely to be on hold for the eventual C8 Corvette.

The one other detail Chevy is confirming is that there’ll be an all-new “crossed flags” logo appearing on the 2014 Corvette.

While the Corvette has always been a low-volume niche product, it is the halo brand for Chevrolet and takes on even more significance as the brand’s role grows for post-bankruptcy GM.

So, anticipate plenty of media attention in the weeks building up to the January auto show in Detroit, including a flood of spy shots and endless reports and speculation. This could be a critical moment for America’s sports car and a critical opportunity to take on the world’s best.

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The VW, Porsche marriage is back on track

By Paul A. Eisenstein, The Detroit Bureau
The on-again/off-again tie-up of Porsche and Volkswagen finally is set to be completed after a series of potentially costly snags that threatened to scuttle the deal.

The marriage – which follows an abortive David-and-Goliath effort by the smaller maker that triggered an assortment of lawsuits and a feud within the extended Porsche family – is “expected…to take effect as of August 1, 2012,” Volkswagen says.

Despite earlier fears that the tie-up could leave them vulnerable to billions of dollars in legal costs due to those lawsuits, the makers now contend the merger will generate a “clearly positive impact on consolidated profit(s).”

“We will concentrate all our strength on the operative business and the solid, profitable growth of the company,” says Volkswagen CEO Martin Winterkorn, adding that the newly combined firm should achieve “long-term synergies of about €700 million per year.”

“In the end, it’s all about the money,” said analyst Joe Phillippi, of AutoTrends Consulting. And once Porsche found a way to minimize the potential financial risks, Phillippi believes it was inevitable the deal would be completed.

The merger will come as a peaceful end to one of the most bitter battles the auto industry has seen in years. In a highly unlikely scenario, Porsche began accumulating shares of the bigger maker hoping to take over VW. But when it couldn’t complete the hostile acquisition Porsche found itself saddled with 10 billion Euros of debt. That led to the ouster of the maker’s once-celebrated CEO Wendelin Wiedeking.

It also threatened to lead to even more financial problems for Porsche as investors accused it of breaking various securities laws in its attempt to acquire Volkswagen.

The two makers agreed to a merger in August 2009 but put that deal on hold as the lawsuits – and potential risks – facing Porsche began to mount.

They’ve recently taken several critical steps to reduce their potential risks – while they also came up with a strategy to avoid as much as 1.5 billion Euros in taxes on the merger. The deal will be classified as a restructuring under Germany’s reorganization tax law.

Volkswagen already holds a 49.6% stake in its German rival. It will now assume Porsche’s remaining shares for a 4.46 billion ($5.9 billion) payment and issuance of a new common share to the Porsche holding company.

Adding to the complexity of the deal was the fact that it started out, as much as anything, as a feud between rival factions of the Porsche family. Wolkfgang Porsche, whose grandfather started the iconic sports car company, is a cousin of Ferdinand Piech, chairman of the Volkswagen AG Supervisory Board.

Observers suggest that once he thought he could win that internecine battle Piech was bound and determine to eventually make the deal come together.

But he isn’t the only one pleased that the merger will occur. Investors drove sharp gains for both VW and Porsche shares Thursday.

In the long run, analyst Phillipi contends the deal should pay off handsomely. “Both companies have lots of unique technological expertise they will now be able to leverage by working together,” says Phillippi, adding that with all the new emissions and fuel economy mandates being put into place – never mind increasing competitive pressures, “being able to spread your costs across a wider number of products will be more important than ever.”

Once focused on just a handful of high-performance models, Porsche has rapidly expanded its product mix in recent years, adding models like the Cayenne SUV and Panamera 4-door sports car. It is now readying a smaller SUV and is expected to add still more products.

The question that concerns some analysts is whether Porsche will be able to maintain its distinctive brand identity, something buyers pay a hefty premium for. But proponents note that VW has been able to maintain the unique identity of several other high-line brands, including Audi, Bentley and Lamborghini.

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Ferdinand Porsche, sports car designer, dies

Hoep / AP

Ferdinand Alexander Porsche is photographed in 1963 with a Porsche 901.

FRANKFURT, Germany — He designed Porsche's classic 911 sports car — the sleek model that evokes power, wealth and envy among aficionados — cementing his grandfather's name into the modern psyche

Ferdinand Alexander Porsche died Thursday in Salzburg, Austria at age 76, Porsche AG said. No cause was provided.

Porsche, known as F.A. to his colleagues, was head of the Porsche design studio in the early 1960s when the company developed the 911 model that remains its brand-defining product. The car, now in its seventh version, remains recognizably the same vehicle, with its sloping roofline, long, low hood and prominent headlights.

Hoep / AP

"The creator of the Porsche 911 has founded a culture of design in our company that distinguishes our sports cars even today," Porsche CEO Matthias Mueller said.

Porsche was the son of former Porsche Chairman Ferry Porsche, who died in 1998, and the grandson of Ferdinand Porsche, who started the company as a design and engineering firm in the 1930s.

Born in Stuttgart on Dec. 11, 1935, F.A. Porsche was initiated into the family business while still a boy, spending time in his grandfather's workshops and design facilities. He studied at the Hochschule fuer Gestaltung in Ulm and joined the company in 1958, taking over the design studio in 1962.

In the 911, he created a larger, less cramped replacement for the company's first model, the four-cylinder Porsche 356. The new car, with a rear-mounted, six-cylinder engine, was originally designated the 901, but the number was changed because French competitor Peugeot claimed a patent on car names formed with a zero in the middle.

Porsche left the operational part of the company with other family members in the early 1970s and in 1972 founded a design business, Porsche Design Studio, where he created eyeglasses, watches and pens.

As a designer, he had a reputation as a functionalist.

"A formally harmonious product needs no decoration, it should be elevated through pure form," he once said — a motto reflected in the lean lines of the 911.

He served as chairman of Porsche AG from 1990 to 1993 and helped steer the family firm through a crisis as sales plunged in the late 1980s under pressure from global competition and a strong German mark that hindered exports.

Under his chairmanship, the company brought in a new CEO, Wendelin Wiedeking, who is credited with turning the company around.

Porsche was to be buried in a private ceremony in the chapel at Schuettgut, the Porsche family's estate in Zell am See, Austria.  

© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Volt is drivers' favorite, topping even Porsche

A Chevrolet Volt electric is shown at GM's Flint, Mich., plant. The car is wildly popular among owners.

The Chevrolet Volt extended-range electric car is the most popular among owners, topping a perennial favorite that costs twice as much, the Porsche 911, and a recent addition, the Dodge Challenger, according to an annual survey published Thursday by Consumer Reports.

The magazine was careful to specify that only the Challenger equipped with the “That thang got a Hemi innit?” V8 engine was named to the list, and not the girly-man fuel-sipping V6 version.

But I digress.  The Volt is the overall winner of the owner satisfaction survey, with the announcement coming at a time when the Volt is in the news for a less-good reason: fires in crash-tested vehicles days or weeks after the crash.  Ninety-three percent of owners surveyed said they would buy the Volt again, compared with 91 percent of 911 and Challenger buyers.

The Volt has a starting list price of $41,000, compared with $82,100 for the Porsche and about $30,000 for the Challenger.

Porsche via AP

The 2012 Porsche 911 Carrera is due out in February. The current edition of the car, which came in second in Consumer Reports' annual owner satisfaction survey, sells for $82,000 and up.

Chevy also grabbed the last spot on the list with the Aveo minicar, which would only retain 37 percent of its owners.  The Aveo has since been replaced by the Sonic (see review here), ensuring, at least, that the Aveo will not be last again next year. (See the full list here. Subscription required.)

Volt drivers are happy with their cars for a couple reasons.  Firstly, they are electric vehicle zealots, and they would be happy with an EZ-Go golf cart as long as it was fully charged.  EV zealotry even tops sports car zealotry, as seen by the Volt’s defeat of the 911, which is popular among sports car zealots despite its high price, useless back seat and thirst for fuel.

“These models reflect a larger trend we’ve seen in recent years: sporty cars and fuel-efficient cars with alternative drivetrains tend to generate more enthusiasm and loyalty than most other types of vehicles,” said Rik Paul, Consumer Reports automotive editor.

The second reason for Volt owners’ satisfaction is the dedicated manservant Volt adviser issued by Chevrolet who talks with owners daily about the Volt’s awesomeness.   “From the very beginning we’ve tried to provide an extraordinary customer experience to go with the technology,” said GM spokesman Greg Martin.

The combination of engaged owners and continuous discussion between GM and Volt owners has stemmed any rush to the exits even since the reports of post-crash-test fires.  For the record, these fires took place days or weeks after extreme crash testing in which the Volt successfully protected occupants and earned the highest possible safety scores.

Following the tests, the cars’ batteries were left fully charged, and because the car were also rolled over and because the battery coolant system was damaged in the tests, coolant leaked onto the charged batteries and eventually sparked fires.

The lesson here is to get out of a crashed car within a few days, and be sure to turn off the lights when exiting.  A gasoline car might not be as obliging in providing an opportunity to climb out before combusting.

Despite recent safety concerns about the Chevy Volt's battery, the popularity of electric cars is picking up traction, with CNBC's Phil LeBeau.

In the real world, “five or six” Volts have been totaled in severe crashes, with no fires resulting, Martin said.

To mollify any potential concerns while GM undertakes its investigation into how best to prevent post-crash fires, the company is offering a free loaner car to Volt owners who prefer to park their electric car for now. GM CEO Daniel Akerson even has offered to buy back the Volts of anyone who is concerned about the fire hazard, according to The Associated Press.

The number of drivers asking for a loaner car is “a handful,” according to Martin.  Hmm, that’s suspiciously similar to the number who have already crashed their cars.  Is anyone checking to see if the people asking for loaners have already totaled their Volt?

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