Auto Events

Barely into the second week of February and Hyundai Auto Canada Corp. (HACC) made a confident offer to the Canadian market. Called the “Hyundai Promise”, the Korean-based manufacturer announced it was giving Canadians up to 30 days to decide if the Hyundai Sonata was their right purchase choice. 

The "Hyundai Promise" initiative is a nation-wide pilot project the company is exploring to give buyers of the Sonata the added confidence in their purchase decision in the short term – by accepting the vehicle's return – as well as into the future with a longer warranty, extended from 5-years and 100,000 kilometres to 7-years and 120,000 kilometres.

This new programme allows Canadian consumers to return the vehicle and get their money back, without a usage or penalty fee.

As John Vernile, Vice President of Sales and Marketing at HACC stated "We looked at what the competition had to offer and saw that our Sonata stands toe-to-toe with the best on the market, which is why we can offer this type of programme. Buying a car is a big decision, so we want to help assure our customers they made the right choice and can be proud of their Sonata. The Hyundai Promise does that by giving them peace-of-mind both now and over the long term."

Mr. Vernile continued, "We're so convinced that the Sonata will win buyers over in 30 days or less, that we'll give them their money back if it doesn't." 

There is a third part to this equation; 0% financing for up to 72 months.

Pretty bold.

But in reality, is it?

A follow up chat with Chad Heard, Public Relations Manager from HACC at the 40th Anniversary edition of the Canadian International AutoShow in Toronto underlined the manufacturer’s intent going forward.

To be 100% clear, this may be a limited time offer. Which part? All of it or specific components? 

That will depend – upon many factors. The economic climate; Sonata sales generally and, of course, the reaction from the public.

Hyundai have in the past couple of years enjoyed considerable success with their products and some vehicles specifically. In 2012, as a manufacturer, Hyundai sold more vehicles in Canada than Honda. And the Hyundai Santa Fe 2.0T was voted the winner of the Automobile Journalists Association of Canada (AJAC) 2013 Canadian Utility Vehicle of the Year on February 14, 2013. The Elantra GT finished just behind the Honda Accord Sedan in the Car of the Year category and in 2012, the Elantra was declared the AJAC Car of the Year. Once considered a value brand, Hyundai is making strong statements as a valuable brand.

Any time a manufacturer makes a strong statement such as the Hyundai Promise, you know that considerable thought has been invested. Obviously, Hyundai has faith in the overall quality of the Sonata (and their other line extensions), but perhaps more importantly regardless of who is ultimately financing this initiative, the dealer network must be supportive. Mr. Heard made it quite clear that the Promise has the complete support of Hyundai’s 206 dealers coast to coast and that this was, overall, a corporate initiative.

There is an economic implication. There is a risk. But the risk is deemed acceptable. 

While there is small print attached to the offer, it is not necessarily considered onerous. The reality is that few consumers are likely going to return their Sonata within 30 days. And as for the 2 years and 20,000 kilometres added to the overall warranty? Well, to say that confidence is high on overall quality and reliability among dealer principals and Hyundai executives would be an understatement. 

Since the major redesign of the Sonata, the quality of this brand has been duly noted. Consequently adding to an existing warranty is a (well) calculated risk – especially since J.D. Power and Associates just released a study that measures problems experienced by owners of three-year old vehicles. The result, reported problems fell 5% since they began collecting data in 1989. That same study also proclaimed the Sonata was the most reliable mid-size car overall.

J.D. Power also revealed that the average age of a vehicle being traded in is 6.3 years – just shy of Sonata’s new benchmark – meaning that that same vehicle, when re-sold today may be done with some warranty remaining! Added value to a consumer considering a previously owned product – what a novelty, yet also a (re-) selling feature.

Were you aware that a short five years ago 14% of car buyers financed their vehicles over 72 months? That number is now a startling 58% - an astounding number when you consider that 66% of vehicles purchased are financed!

So, at the end of the day, is Hyundai bowing to market pressure – or are they better corporate citizens when it comes to the promise on the Sonata? Or really just good business people hedging their bets?

We’ll see soon enough; especially if the promise extends to other brand extensions. Elantra with a 7/120 promise? Wait and see.

YOKOHAMA, Japan – Nissan Motor Co., Ltd. today kicked off a new era for NISMO, confirming it as Nissan’s exclusive global performance car and motorsports brand and officially opening the new NISMO global headquarters and development center in Yokohama, Japan.

NISMO is already well-known to motorsports and performance car enthusiasts in Japan and to millions of global gaming enthusiasts. Now, NISMO is poised for accelerated global impact, enhancing Nissan’s reputation for innovation and excitement with a new line-up of sporty Nissan production vehicles.

In a special ceremony today, Nissan CEO Carlos Ghosn declared the new headquarters open and explained how NISMO will play an even more prominent role for the company’s performance car and motorsports activities.

“NISMO will democratize performance and bring new excitement to the Nissan portfolio with a broader range of affordable and innovative performance models for more markets and more people,” said Mr. Ghosn. “Whether it’s a small car or a sports car, if it’s wearing the NISMO badge it offers something special – quality, functionality, and efficiency, with NISMO’s distinctive styling, sporty handling and dynamic performance capabilities.

The first new Nissan production vehicle to get the NISMO treatment, the Juke NISMO, is already on sale in Europe and Japan and launches in the United States in the spring.

A new version of the 370Z NISMO for European markets is the next NISMO vehicle, which made its world debut earlier this month and builds on the platform of Nissan’s most popular and accessible sports car. The 370Z NISMO is now in its second generation in the U.S., with a revised 2014 370Z NISMO set for sale this summer. 

Nissan is promising a rapid pace of introduction of even more NISMO models – at least one model every year during the Nissan Power88 period, encompassing the breadth of the Nissan model range. This will include the flagship of Nissan’s performance and technology efforts, the Nissan GT-R. 

“It would be unthinkable for us to develop a range of NISMO road cars without including the GT-R,” said Mr. Ghosn. “The standard production model is a global supercar and the GT-R’s performance on track reflects the passion and talents of the NISMO team. The GT-R NISMO will be special and I can’t wait to drive it.”

A New Home for NISMO

Nissan has invested in an entirely new facility for NISMO’s operations, redeveloping a former production site to give it the resources for expanding beyond motorsports engineering to encompass performance car development alongside Nissan. The new headquarters facility allows the NISMO team to be co-located in one place, bringing together the functional areas for NISMO’s key activities and technical and competition expertise under one roof.

The 180-strong team is now located inside Nissan’s Powertrain Engineering complex. The workshop, engine shop, rooms for fabrication, grinding and carbon composite processes are consolidated into the same floor space along with the parts warehouse. A new larger showroom allows up to eight vehicles to be displayed, while the retail area is now almost twice the size of the previous store in the Omori factory.

“This is a great move for NISMO as we can now shift gears to operate more efficiently and expand the brand globally,” explained NISMO President Shoichi Miyatani.

“NISMO is a key element in Nissan’s future global vehicle and motorsports strategy and we will quickly establish it as Nissan’s exclusive performance brand,” he added. “This is the first time that all of our team has been located together, and the entire facility will become a hothouse of passion and performance.”

The NISMO Spirit

At the heart of each new NISMO model will be a consistent DNA focused on delivering quality, functionality, and efficiency in everyday driving with NISMO’s distinctive styling, sporty handling and dynamic performance capabilities.

Nissan’s new range of NISMO performance models will be built on the same production lines as their standard counterparts, which combined with inspiration taken from decades of racing and tuning expertise means that the NISMO brand ensures fully integrated performance enhancements.

Every modification NISMO makes to a production car will be functional and targeted to improve on-road performance and presence. The spirit of NISMO relies on its proud motorsports heritage and a maverick engineering philosophy. This spirit will be reflected in every new NISMO model with efficient performance, accessible and advanced technology, and bold, smart design, all of which embody Nissan’s philosophy of “innovation that excites.” 

You know, I really want to be able to embrace EVs (electric vehicles) – I do, but sometimes they can be their own worst enemy.

Hybrids I get – although, not immediately. When Honda introduced the Insight to the United States in late 1999 and Toyota with the first generation Prius world wide a few months later it became apparent that they were not going to vanish as if driven off an incomplete freeway. More and more major manufacturers have embraced the premise and there is now a thriving market for those vehicles that are the ultimate crossover when it comes to power – battery and internal combustion. Heck, some manufacturers have upped the ante and introduced turbo-charged hybrids! 

General Motors (GM), once the single largest manufacturer of cars, trucks and many other means of transportation threw their slightly tattered hat into the EV ring with the introduction of the MY11 Chevrolet Volt. Introduced initially in the United States in mid-December 2010, the Volt was one technological solution devised by GM to meet stringent fuel efficiency and emissions rules. And, it was marketed as an everyday city runabout. A bold marketing move.

Let’s take a quick look at the specs; the Volt has a battery-only range of 40 – 80 kilometres with another 500 kilometres available from the battery-charging gas motor on board. The vehicle looks pretty good and, for the most part, performs as advertised.

And here is where one of the inherent issues with EVs lies. Its price. In Canada, the suggested MSRP is around $41,545 – plus, plus. If you purchase one in Ontario, the provincial government presently (I could not say currently!) provides a subsidy of $8,320. In addition, GM tells us that a Volt should run at about 1 – 2 cents per kilometre versus 6 – 8 cents for ‘normal’ gasoline powered vehicles – assuming gas is running at up to $1.30 per litre.

Like I said, price seems like a deterrent. Consider the Chevrolet Cruze by comparison. Starting with a suggested MSRP of $14,995, the Cruze can go as high as $26,445 – and up. And as an everyday commuter-type car, it delivers a claimed efficiency of 7.2 city, 4.6 highway L/100km.

The second strike? There is little to no infrastructure to support re-charging the Volt’s 400 pound, 288-cell lithium-ion battery. Again, we keep hearing this is changing – slowly. In fact, a Tim Hortons franchise in Oakville recently installed one charging station. Kudos. But how does that effect me in the drive-thru lane?

GM also went out on a limb when they made sales predictions for the Volt; 40,000 units to be sold in North America in 2012. A heady number to be sure. But again, this is GM and volume is practically their middle name.

The reality? GM sold 23,461 units. The winner of the steak knives? Toyota with the Prius plug-in at 12,750 units.

Don’t misunderstand. The Volt is a good car. I have driven one on a short test and plans are in the works for a longer test over a one week period. However, as can only be expected, the price tag and lack of feasible infrastructure don’t make things easy. Of course, you can add a charging station in your garage at home. At additional cost.

While electricity is still the least expensive viable fuel option today; taking full advantage comes at a price.

And now, almost rubbing salt in everyone’s wounds comes the announcement made in January at the Detroit auto show of the sexy, sleek-looking Cadillac ELR which GM advises will be available in limited dealerships starting in late 2014.

Could this be the Chevy Volt 2.0 with a premium badge on the hood?

Let’s hope that’s not the case. You have to admire GM’s tenacity. Introducing a new luxury vehicle when generally, austerity still abounds. At the end of the day, it’s a Volt internally but an extra 61 horsepower has been wrung out of the borrowed drivetrain/power plant. And that’s also not a bad thing.

But here’s what I, personally do not understand. This is a Cadillac. It’s a coupe. And it’s an EV.

If sales faltered for the Volt, how can a luxury brand hope to succeed? And, let’s be honest, coupes are NOT volume sellers in any market. And then this good-looking car is “hobbled” as an EV? 

With the recent success of the Cadillac ATS, this ELR introduction seems almost awkward and hesitant. Cadillac successfully misdirected the general public and the ATS deservedly continues to receive awards and accolades.

The ELR, because it’s a coupe will likely have less cabin space than the Volt – and is only accessible by two-doors. OK, so GM has money invested in this model, going as far back as 2009 when the Cadillac Converj was presented in Detroit as a concept car.

But still, that does not make the decision to produce a niche car, for a limited demographic at a likely high price (estimates put that at around, conservatively, the $70,000 mark – and up). And here’s another kicker; the Ontario government’s subsidy will be the exact same as the Volt.

Thing is, there is no reason that EVs should not be represented by luxury brands – look at Tesla and Fisker.

However, for Cadillac, might a more practical vehicle be more marketable – like a CUV-type vehicle on a SRX platform?

Would that not make more sense?

GM and Cadillac specifically need the general public to get behind this vehicle. It is NOT a concept. It is a production vehicle slated to hit winter 2014. The Cadillac ELR was introduced with enormous fanfare in Detroit. Auto journalists practically clambered over one another to see it. The ELR made no appearance in Montreal later that week. It was presented on media day in Toronto for the 40th anniversary of the Canadian International AutoShow – and was then quietly shipped out later that very same day to Chicago. 

If the public does not see the car, how will they know they want or even need one?

I admit it; I admire anyone who boldly goes where no man, etc. – however, I hope that the powers that be who “sold” the ELR to Cadillac left themselves a trail of breadcrumbs to find their way home. Unless there is a major change, the Cadillac ELR may soon claim fairy tale status.

And that would, indeed, be a bad day for the automotive industry generally.

How do you make Canada's favourite cup of coffee even better? Add a chance to win one of 40 all-new, Canadian-made RAV4s.

For this year’s RRRoll Up The Rim To Win® Contest – which starts today – Toyota Canada and Tim Hortons are teaming up for their eighth year of Canada's favourite coffee contest.

“The 2013 Toyota RAV4 is built right here in Canada, and it’s designed to get Canadians to the fun activities they love – whether it’s to the hockey rink, on a camping trip, or anywhere else their leisure time takes them,” said Stephen Beatty, Managing Director of Toyota Canada Inc. “That makes the RAV4 a perfect fit for this contest, because there’s also nothing more Canadian than stopping at a Tim's along the way.”

The new 2013 Toyota RAV4, with its bold and athletic design, is the fourth generation of the world’s original compact sport utility vehicle. Canadian drivers will be able to enjoy more time at play thanks to the RAV4’s winning combination of a fun-to-drive spirit, versatility and efficiency.

With a fuel-efficient four-cylinder engine, new six-speed transmission, available dynamic torque control, two-row seating for five, and a host of available in-cabin technologies, the RAV4 offers a nuanced balance of performance and all-around capability, including class-leading cargo capacity with rear seats folded down, class-leading eight standard airbags, a premium interior and a compelling array of standard features.

The RAV4 for this contest will be the AWD LTD model. The vehicle will be featured on RRRoll Up The Rim To Win® cups, in television and radio advertising, on outdoor advertising such as billboards and transit shelters, and on in-store displays at participating Tim Hortons locations across Canada.