Monday 25 June 2012

VW Passat 1.8T vs Toyota Camry 2.5

Toyota recently launched their 2012 edition Camry with the 2.0 litre and 2.5 litre engine models. this new model promises more refinement, better handling and better space. The new Camry is without a doubt a good car and Toyota has been improving this model for decades to bring it close to Lexus level.
The biggest threat to Toyota is now the VW Passat 1.8T rather than the traditional Honda Accord as the current Honda Accord model is getting old and is due to be replaced in 2013. Why is the VW Passat 1.8T a serious competitor to the Camry? The reason is simple. The cars are of similar size, similar price but both are engineered differently hence the interesting comparison.

Here is a direct head to head comparison:
Engine:
Toyota Camry 2.5: 181ps and 231Nm.
VW Passat 1.8T: 160ps and 250Nm

Transmission:
Toyota Camry 2.5: 6 speed automatic
VW Passat 1.8T: 7 Speed DSG

Vehicle Weight:
Toyota Camry 2.5: 1480kg
VW Passat 1.8T: 1517kg

Acceleration 0-100km/h:
Toyota Camry 2.5: 8.7 secs
VW Passat 1.8T: 8.5 secs

Fuel consumption:
Toyota Camry 2.5: 8.5 litres/100km (estimated)
VW Passat 1.8T: 7.0 litres/100km

With the statistics listed above it is very clear that engine downsizing works wonders for fuel economy and performance. The VW Passat is easily 20ps down on the Camry but the higher torque figures and better transmission efficiency pays dividends for the Passat despite the slightly heavier body weight.
VW has utilized the engine downsizing and ultra efficient DSG transmission to great effect to make the Passat a great contender for this segment of the market. Positioned as a mid size sedan, VW was able to bring the best of both worlds with good handling, solid highway stability, good fuel economy and ride comfort at a price cheaper than the new Camry 2.5.
In Malaysia VW offers 5 years warranty while Toyota offers 3 years warranty. The competition in this segment of the market just got hotter and Toyota has something to seriously worry about. The competition is no longer just with Honda Accord, Hyundai Sonata and the Nissan Teana. VW has joined the party with a strong contender and having a European badge with a similar price it may just swing many buyers over. For similar money, would you buy Japanese, Korean or German?

Thursday 21 June 2012

BMW 520d vs Peugeot 508 2.2 Hdi

Not all car manufacturers are created equal and all have different levels of engineering. This is due to their history, philosophy and their approach to design and engineering.
Companies such as Toyota are very conservative and but they constantly introduce various new technologies as they go along. Their rate of technology introduction is not as fast as they strive for out right reliability before allowing the technology to be part of their new car. Then there are companies such as BMW are more dramatic and always introduce some new technology with every new model launched. This naturally puts them ahead of most of their competitors and make them look like serious innovators.
The major car manufacturers invest hundreds of millions of dollars in engineering and research and development every year to improve their cars. I shall discuss an example of the different levels of engineering for 2 different car companies with similar classed models.


BMW - F10 520d - this model is the entry level model for BMW's 5 series range. Putting out 184hp and 380Nm, this car promises refinement, good handling, comfortable ride and very good fuel economy. At present the 520d is one of the top selling 5 series model for BMW. It is able to accelerate from 0-100km/h in 8.1 seconds while consuming just 5.2 litres per 100km of diesel.


Peugeot 508 2.2 HDi - this is a flag ship model for Peugeot with good interior space, decent ride and handling and good exterior looks. The performance of this car is also good for a diesel engine with performance figures standing at 201hp and 450Nm. This car is able to accelerate from 01-00km/h in 8.2 seconds while consuming  5.7 litres per 100km of diesel.

These two cars are of similar size and weight but both car companies demonstrate the different levels of engineering. The BMW is still superior in engine and transmission technology as their 520d model is able to out perform the Peugeot in terms of acceleration and fuel economy. Overall the performance difference between the 2 cars is very close. It is not that the Peugeot is not good. It is just not as good as the BMW overall. One would argue that both cars are  in a different league because of price however price should not be a factor as these two cars are of similar size, weight and category. On paper the Peugeot has more power and torque but why is it not translated into real world performance? At a glance, one would expect the Peugeot to easily out perform the BMW as the Peugeot has 17hp and 70Nm advantage over the BMW. The difference is in the transmission system and how the power is put to the wheels. Having high performance engines is good but having a weak or inefficient transmission will really take the bite of the advantage from the engine.

Wednesday 20 June 2012

Malaysia's National Automotive Policy

Every country has their own national automotive policy to cater for their own domestic market. Some of the policies are skewed towards Going Green to help the environment and some are designed to promote and protect local manufacturers, and some are there to help overall growth of the automotive industry domestically.
In Malaysia, the National Automotive Policy is more flawed than a pothole ridden road. The National Automotive Policy (NAP) has been designed specifically around the protection of Proton and Perodua, and to aid the well connected businessman who are within the close circle of government ministers with the seriously flawed Approved Permit (AP) system. This AP system was subject to abuse and made many government linked businessmen very rich by only selling import permits for US$15,000 each. To make matters worse, these businessmen where making it difficult for car distributors or even car manufacturers to import their own cars. This AP system was initially planned for abolishment in 2010 but until today this system is still being used as the government linked businessmen were able to lobby for further extensions. This has meant that imported car prices will remain one of the highest in the world. For the sake of enriching a few businessmen the country continue to suffer. Loss of jobs, loss of foreign investment and burdening the public with high priced cars.

Over the years the Malaysian government has changed their NAP to try to evolve with the times however it has always fallen short of anything significant and this has frustrated many car manufacturers. This has led to many of them opting to invest heavily in Thailand and Indonesia instead. The loss of foreign investment is well over US$200 million in direct capital investment and massive opportunity cost in terms of employment and local parts supply business. One foreign business report estimated 200,000 potential jobs would be created if the automotive industry was open. Foreign car manufacturers are constantly confused with the policies tabled in the NAP. Many don't know found that the policies were not fair and they simply did not have the confidence to invest in Malaysia.
Proton is a poorly managed car manufacturer that is like a baby that refuses to grow up. Surviving on government protection, Proton's days are numbered. As the Malaysian government has been under tremendous pressure from neighbouring countries and other trading partners to liberalize the automotive industry. As each NAP is tabled the Malaysia automotive industry is slowly opening up. It is still a positive step considering how slow it takes for any significant changes to be seen. The changes in Malaysia's NAP is still seen by many as a half baked attempt to pacify trading partners and foreign car manufacturers.
Having made Proton a private company again, the Malaysian Government may not necessarily protect Proton as much as before and this could spell some positive changes to the automotive industry. Whether this will happen is still questionable.

The current political scene in Malaysia is a hot debate as the Opposition party has garnered tremendous support. With the ruling party being the one behind the NAP and Proton, if the Opposition wins the next upcoming elections, there is a possibility for car lovers in Malaysia to rejoice as the NAP will be completely different and the AP system will most likely be scrapped with immediate effect. The NAP will probably see a much more open automotive industry to stimulate more foreign investment, creation of jobs and promote more local supply business opportunities.

As far as I know, all Malaysians would wish to have more affordable cars and not be saddled with crazy car loans stretching up to 9 years! Owning a car should not be a luxury but a right to a basic necessity.

Tuesday 19 June 2012

Triple Turbo diesel

Turbo charging is nothing new in the automotive industry and many car manufacturers use it as a way to boost performance and efficiency. Until end of 2011, traditional turbo setups are either single or twin turbos. BMW took the first step to be the very first company to introduce a production car with triple turbos. This was never thought to be possible before because of the complicated plumbing associated with a triple turbo. Nevertheless, BMW managed to perfect it and made it reliable. BMW recently introduced their M550d, X550d and X650d. Keeping their proven 3.0 litre inline diesel engine and coupling it with the triple turbo setup, the net result was an amazing 381hp and 740Nm. This was ground breaking for any car company as no one has ever seen so much power and torque from a 3.0 litre production engine. The beauty about this design is that the car is very easy to drive and have monstrous power at your disposal and very good fuel economy. Power and fuel economy has never gone hand in hand as you need fuel to generate power. However, when it is applied in the case of a turbo diesel engine the efficiency of the engine goes up.



This brings a new level of sportiness to diesel engines. Diesels were never known for being sporty in the past but in the recent 10 years and the heavy development of turbo diesel engines, it has gone to prove that turbo diesel cars can be fun to drive and sporty at the same time. The turbo diesel craze seems to be concentrated mainly in Europe as the Europeans drivers can appreciate the superior torque and fuel economy of a diesel engine. European car manufacturers have gone so far as to prove their diesel technology on the race track with convincing wins in LeMans and touring car championships.

In countries such as Japan and USA, most drivers still prefer their gasoline engines. Many of the drivers still think that diesels are for trucks and commercial vehicles. They really don't know what they are missing out on.

vehicle grooming and hygiene

It is fascinating to see how much a car lover will spend to detail or groom their car. A buddy of mine owns the most exotic car detailing centre in South East Asia. He often charges over US$1000 for detailing jobs. His attention to detail is so incredible that you can shave your face from the reflection off the paint work. This is one extreme and is usually reserved for the hardcore car lover. The grooming aspect is mainly reserved for cosmetic aspect rather than overall health. Yes, a cleaner car should be more hygienic however, for people with children, washing your car's exterior and vacuuming the carpets and seats are not enough.
Literally millions of bacteria linger in the car's ventilation and air conditioning system and no one bothers to clean this part. They don't clean it because they don't know how to and they have no clue that the air that they are breathing in everyday is harmful.
You can often find a car with immaculate exterior paint work but the interior is not as clean. Many people forget to thoroughly clean their car's interior. It is also more difficult to clean the car's interior as there are more nooks and crannies which make it extremely difficult to reach.

The car's air conditioning system is notorious for harbouring harmful bacteria as the hot and cold working environment creates a breeding ground for bacteria. When the air conditioning system is switched off, the cool air condenses and forms into water droplets which will stay in the ducting, couple this with the car occupants sneezing and coughing, the bacteria will manifest itself. Mold spores will also start to form and this usually leads to respiratory problems.

The next time you send your car for your regular car wash, I highly recommend treating your car's air conditioning (if available). Consider a service similar to this: http://www.bactakleen.com/index.php/products-a-services

Wednesday 13 June 2012

Hybrid car vs Normal car resale mismatch

Hybrid cars are the current wave and the buyers who were willing to try out new technology bought hybrid cars. In Malaysia it can be seen as an upcoming trend however there is a gross mismatch.
What I mean by mismatch? I mean the mismatch in resale of the hybrid cars versus resale of normal gasoline powered cars. The problem here in Malaysia is with the used car dealers. The new car dealers are busy promoting hybrid cars as it helps them boost their monthly sales but they also need the used car dealers to do the trade-in for older cars. This is not a problem when the car to be traded in is a normal gasoline powered car. The problem comes when the car to be traded in is a hybrid. This also applies to people trying to sell their hybrid cars.
Used car dealer usually refuse to accept used hybrid cars or offer very low trade in values for hybrids because they do not want to bear the risk of a hybrid car with a dying hybrid battery or a hybrid battery that is due for replacement. As we all know the cost of replacing a hybrid battery can run anywhere between US$2,000 to US$3,000. This will effect the profitability of the used car and also whether the buyer of a used hybrid car is willing to bear the risk themselves. This is an ongoing debate and very serious impending problem.

Many people may not realize this now but when they try to upgrade or buy a new car by trading in or selling their current hybrid car will face this problem. My question is, how long will it take before the used car market will accept hybrids without the massive reduction in residual value? And for those car owners who are very concerned about residual values, will this make them think twice about buying a hybrid car?

Monday 11 June 2012

Lotus - a burden or asset to Proton?

Proton purchased Lotus in 1996 and have not done much to capitalize on the engineering expertise of Lotus.
Lotus was saddled with a lot of debt and Proton ultimately lost a lot of money keeping Lotus afloat by continuously pumping money into Lotus. Lotus has not since made any profit and has stayed in operation solely from the financial support from Proton. Proton only benefited from some basic suspension and chassis engineering for the Proton Perdana V6 model, Satria Gti and the later Gen 2, Persona, Satria Neo, Exora and Preve models. Having a decent chassis and suspension does not necessary mean better sales when the engine, transmission and build quality is substandard! Until today Proton is still losing a lot of money due to Lotus and it is a big financial burden.

In 2009 Lotus took a bold step and engaged Dany Bahar which attempted to turn the company around with a flurry of new models which were due to be released over the next 5 years. Sadly, the direction which Lotus took was wrong. Under his leadership, Lotus planned to release numerous new sports car models with 1 luxury sedan model. In the current global economic climate, it would not make sense to keep making sports cars as the old product to sell. Lotus had the brand pedigree, engineering know how and also the motorsports heritage to build and sell non-sports car models.Lotus in reality should re-look at their business model and consider how they are able to turn the company around. Surely in our current economic climate
sponsoring the Lotus Renault F1 team in consideration of the company's financial situation, it does not make logical sense to indulge in such expensive branding exercise. Lotus cannot survive on selling Elises, Evoras and Exiges only and sponsor a major Formula One team.



Lotus should develop a mid range sports sedan similar to a BMW 5 series size and a sports SUV to their model range. These two models will be able to capture buyers who are looking for a car with the Lotus branding, racing heritage and engineering and yet carry 4 adults comfortably. Building such models by no means dilute or bring down the brand image of Lotus. It just widens the customer base across all countries. Being able to sell more cars naturally mean more revenue for the company. Lotus should take some notes from Porsche that did what many people did not expect them to do by introducing the Cayenne and Panamera. It just seems like Proton never capitalized on Lotus's abilities and Lotus never took the step in the right direction to make itself profitable. It appears that Lotus is destined to be the burden for Proton until something drastic is done to turn the company around. I believe if Lotus was sold a China car manufacturer, they would be able to turn the company around and capitalize on Lotus's capabilities just like how they did for Rover and Volvo.

In comparison, in 2004 Porsche was smart enough to introduce the Cayenne and 2009 the Panamera which are currently its most popular and profitable models in their model line up. This move was in anticipation of economic changes and moving in a different direction to create a wider customer base. Porsche being one of the most traditional sports car companies in the world took a bold step in a direction that many people were very critical of them but it has paid of handsomely. Porsche did not invest in Formula One as a branding exercise. They focused instead on product development and expansion into key emerging markets such as China, South America, Russia and Nigeria. I do apologize to readers who wonder why I keep comparing many companies with Porsche and their models. The reason for this is that in this current economic climate, Porsche has done extremely well with their new models and has made more money than many other companies. They had the right strategy and good models to match.

Sunday 10 June 2012

Problems with Porsche Hybrid system

It appears that Porsche is starting to have problems with their hybrid system on the Cayenne. This was initially thought of as a rumour but after hearing a personal account from an owner of a Cayenne Hybrid the car seems to have problems with the hybrid system. The problem is not catastrophic and will not render the car not drivable. The problem lies in the system's activation when on the highway during hard acceleration. Normally when the driver full throttles the car, both the supercharged gasoline engine and the hybrid electric motor will work together to provide maximum power and torque. The problem occurred the hybrid system failed to activate under full throttle and it also failed to activate while driving at city speeds.
The system seemed to work initially in the first 6 months of car ownership (as claimed by the owner after owning the car for 15 months) but in the last 6 months the hybrid system seems to work intermittently and after several attempts to rectify the problem, Porsche Malaysia has failed to offer him a suitable explanation for this.

Thinking that this problem could be an isolated case, several similar cases were reported in Singapore and Malaysia. Is the problem due to our excessive humidity? or did Porsche rush into introducing a hybrid system that is not completely ready and bug free?

In my opinion the problem could be in the software as the car's hybrid system is controlled by the ECU.

car development and over conservatism

Each year new models are introduced and many car manufacturers would step forward to display the new technologies and innovations they have developed. This is usually the case for German car makers such as BMW, Audi, Mercedes, VW and Porsche. The Koreans have also started to follow in this route and with good success. However this is not always the case for Japanese car makers. Companies such as Toyota has always been conservative with their approach to this and is often late to introduce massive changes to their popular models such as the Toyota Camry.
Toyota has also adopted the "if it is not broken, don't fix it" motto and kept their introduction of new technologies a step behind and watched while the others rush to show off their new technologies. Adopting this approach is good and bad. Good in the sense that you can see the errors made by the competitors and bad is that the competitors would be seen as technological innovators.
This can have a positive and negative effect to the sales of their cars. Positive in the sense that customers who are conservative and want a reliable car with good residual value will buy a the car. Negative  in the sense that it will not deter younger buyers or buyers who are keen to have the latest technology in their car.

the launch of the latest Toyota Camry is a good example of how Toyota did not introducing anything new with this model. The 2.0 litre model still comes with a 4 speed automatic in comparison to Hyundai which is offering a 6 speed automatic transmission with their Sonata 2.0. The engine power also has not increase from 148ps while a similar Honda Accord 2.0 offers 155ps and a Hyundai Sonata 2.0 offer 163hp. Toyota's logic to this is that majority of the buyers are corporate customers and they are looking for reliability and comfort rather than technological advancement. However, this attitude will eventually see sales be eroded as the benchmark shifts forward and the comparable Toyota model will look like serious laggard. Customers perceptions and wants will change over time and reacting only when you notice changes in customer wants will be too late.

The key technology that Toyota has pioneered in the last decade has to be the Prius Hybrid. Having taken the lead in introducing this technology, Toyota was able to take a big bite out of the market and is currently the market leader for hybrid car sales. Saying this, Toyota currently does not offer the most advanced hybrid system in the world. Companies such as BMW, Mercedes Benz, Nissan and Hyundai have all caught up and some have been seen to have over taken Toyota in terms of outright technological advancement in this field.

Toyota will not lose sleep over the other competitors catching them as their market position and brand position is solid.

Wednesday 6 June 2012

The Korean force

The Korean car makers are taking massive steps in engine development and also innovation in automotive technology. They are the one to be reckoned with in the next 2 to 5 years as they have moved in the direction similar to the Germans while keeping their production costs low.
While the Japanese have been working hard on their hybrids and EV cars, the Koreans have been working on engine down sizing, diesel engines, hybrids and EV cars. Their emphasis on massive development will pay dividends in the near future as they will be able to offer a wide variety of engine options compared to the Japanese and yet be cheaper than the Germans.
In a recent trip to Korea to visit a motorshow, Hyundai displayed their impressive new 1.6 Turbo engine (gasoline) that promised good power delivery from low RPM and coupled with a twin clutch gearbox. Instead of following the Japanese option of using CVT (which is a flawed transmission), Hyundai followed the Germans to use the far superior twin clutch gearbox for their new Sonata 1.6T. This new 1.6 Turbo engine uses the latest Gasoline Direct Injection technology to boost efficiency and the net result is an impressive 204ps and 265Nm.


The Europeans have been pushing engine down sizing for the last 5 years and it has been paying dividends as their engines all fuel efficient and powerful at the same time. By following this route the Korean will be able to further promote their gasoline engines to be just as fuel efficient and yet powerful. The Korean hybrids are also taking a knock at the Japanese as the Koreans are now using Lithium Ion batteries which are far superior and more efficient than the Nickel Metal Hydride batteries used by the Japanese car makers. The Lithium Ion batteries are more compact and more powerful than the Nickel Metal Hydride variant.

The Korean EVs are also much better looking than the Japanese EVs (such as Nissan Leaf and Mitsubishi Miev) . Instead of designing the EV to look different from conventional models, the Koreans have adopted existing designs to be EVs. This makes a lot of sense as the cars do not necessarily have to look ugly to be EVs.


The Japanese may have currently have the lead in terms of total market share of car sales around the world but the Koreans are a major force to be reckoned with. Hyundai's aim to be in the top 3 in terms of total world market share is highly possible at their current rate of development.