Is It Smart to Put Premium in Your Little Fortwo?

By Paul Eisenstein May 28th, 2008

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Among the cars I am test-driving this week is a BMW M3 Coupe. It is, as you might expect, a joy to drive. But it is painful to refill, averaging barely 17 mpg and demanding nothing less than the choicest of premium gas.

OK, when you’re spending $53,800 on a high-performance two-door, I guess you can expect – and afford – to pay for high-octane. But I got a surprise this morning when I opened up my print edition of the Detroit Free Press and found a telling report by old friend Mark Phelan. Seems an unexpected number of today’s cars require premium fuel, many of them not in the same category of performance that might justify that requirement for the M3.

Who would expect Smart to recommend high-test for its little fortwo? The smallest car in the country requiring the highest octane? Yep. But so do the Mini Cooper and new Mini Cooper Clubman, at least if you follow factory recommendations.

Among mid-size sedans, the list of premium sippers includes the Volkswagen Passat, Nissan Maxima, and Nissan Altima V8.

BMWs, no surprise, often require the most expensive fuels. That may be fine on models like the big 750iL and the high-performance M-editions, but the little X3 Sport-Activity Vehicle? Acura also requires high-test for its compact RDX crossover. And I was disappointed to realize the Mazda CX-7 also should be fueled with premium, as are the Nissan Murano and Toyota FJ Cruiser. Considering the latter ute’s positioning as an affordable toy, young buyers may be in for a big surprise at the pump.

You may notice that there’s not a single American model in the above list, and indeed, the Big Three have made a valiant effort in recent years to switch to regular whenever possible. There are a few exceptions, such as the Cadillac CTSv and Ford’s Shelby Cobra, but even the hot Mustang Bullitt can run on regular.

Among import premium brands, however, like Mercedes-Benz, Lexus, and Audi, premium is the fuel of preference for most, though not all, models.

Premium fuel is often the only way to deliver the maximum performance out of today’s engines. Indeed, the average new powertrain delivers significantly more horsepower and torque per liter of displacement than comparable engines of generations past.

But there is some good news for those who take the time to carefully read their owner’s manual. While the products we’ve listed – and others – may be designed to run best on premium, many can operate on regular or mid-grade fuels, as well, thanks to their sophisticated computer control systems. You will almost certainly experience a decline in performance, however. Before you switch, make sure to check that manual, however. Running regular in an engine that can only handle premium could cause serious damage and void your warranty.

Tags: Industry, Gas Prices

Posted in: 2008, Smart, fortwo, Cooper, Mustang

Ford Slashing Up to 12% of Its Salaried Workforce

By Paul Eisenstein May 28th, 2008

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Ford Blue Oval Logo

Just days after announcing it won’t meet a self-imposed goal of turning a profit in 2009, Ford Motor Co. will eliminate as much as 12 percent of its salaried workforce. That was the sobering gist of an announcement delivered by Ford marketing chief Jim Farley during a corporate “town hall” meeting with senior employees.

According to reports, Farley declared the automaker “need(s) to act fast” in order to cope with “a structural change to our economy.”

Last Thursday, Ford CEO Alan Mulally met with reporters and industry analysts on a teleconference to reveal that Ford’s already harsh turnaround plan was falling short in the face of a weakening U.S. economy and record fuel prices. Heavily dependent upon its gas-hungry truck products, such as the Explorer SUV and F-150 pickup, Mulally said, “Unless there is a fairly rapid turnaround in U.S. business conditions, which we are not anticipating, it now looks like it will take longer than expected to achieve our North American Automotive profitability goal."

The former Boeing executive acknowledged that even with an economic recovery, Ford has to accept there will be structural changes to the American auto industry. The pickup share of the new car market, for one thing, has dropped from 11 percent to just 9 percent in recent months, and Mulally said he did not believe that even a revival of the housing market will restore the once-booming demand for trucks like the F-Series.

To cope with the current situation, Ford intends to trim between 10 and 12 percent of its white-collar workforce. That could mean as many as 2,000 pink slips among the 24,300 staff in the U.S., Canada, and Mexico. And unlike past cutbacks, the newest round of job reductions will not be voluntary, company officials stated.

The automaker will also consider cutting back the normal, mid-summer merit increases it gives to salaried employees.

No further blue-collar cuts are in the offing -- at least not for now. Asked last week if Ford might consider closing more of its assembly plants, Mulally said there were no such plans in place. But he notedly refused to rule out that option in the future.

Some observers question how much more Ford can continue cutting back while still maintaining its ability to turn out a competitive product line. A resource shortage is being blamed by some observers for the lack of new products for the struggling Mercury division. Pressured by its outspoken investor, the billionaire Kirk Kerkorian – as well as anxious and uncertain dealers – Ford management is reportedly developing a firm strategy to handle the troubled brand. Many observers believe Mercury will be abandoned in a broader corporate consolidation.

Ford is already in the midst of consolidating product development operations in North America and Europe. Going forward, the automaker’s U.S. dealers will be carrying significantly more of the fuel-efficient small cars and crossovers – such as the next-generation Fiesta subcompact – that have helped Ford revive its fortunes on the other side of the Atlantic.

Tags: Industry, Big Three

Posted in: 2011, Mercury, Ford, Fiesta

2011 Saturn Astra Spied!

By Marty Padgett May 28th, 2008

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2011 Saturn Astra Spy Shot

Opel continues to test its next-generation Astra--the same car that will eventually show up as the 2011 Saturn Astra on our shores.

This 2011 Saturn Astra prototype was shot in Austria, as a large fleet of prototypes--and several competing vehicles--descended on the Alps for some altitude and brake testing. In all the commotion of trying to get the entire large test team under way, TheCarConnection.com's spies caught one 2011 Saturn Astra prototype with its door open and its interior completely uncovered.

The new 2011 Saturn Astra's interior follows the direction blazed by Opel's Insignia, and looks more modern, sporty, and purposeful than the current model. The dash is currently a sea of drab black plastic, but it's clear that this is a fairly early, rough representation of the next Astra's cockpit. We expect the panel fits to be much tighter, and the materials to be vastly improved as we get closer to the Astra's production date some time in 2010.--KGP Photography