Every now and then a car company will decide to keep making a particular model in their line up for over 10 years! VW was famous for making the Beetle for over 10 years but that ended in the 1970s but it is less common the modern era with competition being so stiff among car makers. Replacing a model every 7 years is already considered too long and even the Germans makers like BMW who traditionally replace models every 7 years have cut it down to 6 years. VW have gone one better by cutting it down to 5 years with the Golf model.
Mercedes Benz also jumped on this bandwagon and cut the A class life cycle to 5 years. The competition among car makers force them to work faster to replace models to keep their models looking fresh and attract more buyers. Porsche also followed this route with newer models introduced every 6 years. Prior to this Porsche's 911 were built for over 10 years prior to the 993 model. After that fresh models were rolled out every 7 years.
Then there are car companies that have no clue what they are doing or have no budget to design new models and continue to build severely outdated models. Mitsubishi is one of them. The Lancer has been selling since 2008 and the same model has been face-lifted a few times but essentially it is the same car. Mitsubishi have their own set of problems and this without a doubt have affected their ability to produce new models. Seeing that the demand for the Lancer is dwindling they just focus efforts on SUVs and trucks.
In this modern era, car companies cannot afford to slack off in the new product development department. Keeping up with the other car makers will impact their survival and profitability. It is never easy to keep developing new models but it is a necessity borne out of competition and survival.
Companies like Honda have done a great job to keep their models looking fresh and in the same time appeal to the younger buyers. This strategy has paid of well seeing that Honda has overtaken Toyota in several markets.
Monday, 5 February 2018
Tuesday, 2 January 2018
Impact of having a well match transmission
There are lots of cars with massive engine horsepower but the experience of driving the car can sometimes feel disappointing. It is due to the power output but how the transmission affects how the power is transmitted to the road. Getting a suitable and well matched transmission can literally make a car very responsive and fun to drive or feel dull and slow.
Mercedes introduced their A45 AMG which is an absolute cracker of a car because of the amazing AMG engine with over 370hp. The problem with this car is the transmission, it feels slow to respond. Pressing the pedal shift lever one would expect near instant gear shifts but it fails miserably with an almost 1 second delay. This delay cause the car to rev higher than the driver would expect. Unlike the VW DSG which has near instant response the transmission unit in the Mercedes seems to have a mind of its own.
Lexus also seems to have a problem with their transmission but the problem is different from Mercedes. The Lexus transmission appears to have wrong ratios. the LC500 and the RC500 have 10 gears (way too many!) which is aimed at better fuel economy but having 5 cruising gears is just down right stupid! The 1st and 2nd gears are so long that you literally can hit 120km/h in 2nd gear!! The engine has 471hp and if it was geared correctly would be an absolute monster to drive. Instead with the current long gear ratios the car feel lethargic and slow.
In terms of common cars with moderate power, having well match transmission also impacts the overall driving experience. Toyota failed miserably with the 2005 Camry with pathetic 4 speed automatic when competitors were all using 6 speed automatics. The 4 speed left the car neither responsive nor economical to drive. In comparison the Honda Accord had 5 speed automatic and when driven back to back the Honda was anytime a better car. The CVT made things worse for most of the Japanese car makers. Anyone who enjoyed driving would spit at the CVT transmission. CVT transmission is by far one of the worst things created for the car. It ruined the driving experience despite it being smooth, any car fitted with a CVT was dull to drive. Flooring the accelerator did nothing for the car's acceleration, all you hear was a transmission sound with little to no difference in acceleration!
Car companies with very well matched transmissions are Porsche with its PDK, VW DSG (wet clutch) and BMW. These 3 companies do not use the retarded CVT and have properly matched ratios and have very responsive transmissions that shift very quickly with no hesitation. The engine power is well utilised and the car doesn't feel sluggish or unresponsive.
Electric cars are likely to fit multi gear transmissions soon. Currently all electric cars have only 1 gear since the electric motors have a lot of torque and the car doesn't need multiple gears for the car to accelerate to high speed, however in order to achieve a higher top speed it would make sense for an electric car to have more than 1 gear to allow the car to high a higher top speed without the motor spinning higher than it needs to. The example in Formula E race car with more than 1 gear allowed some of the teams to set the car up for higher top speed for high speed race tracks where top speed is critical.
Apart from just developing the engine car companies need to spend more time to match a suitable transmission for their cars. Slapping just any transmission will not cut it in this highly competitive industry.
Mercedes introduced their A45 AMG which is an absolute cracker of a car because of the amazing AMG engine with over 370hp. The problem with this car is the transmission, it feels slow to respond. Pressing the pedal shift lever one would expect near instant gear shifts but it fails miserably with an almost 1 second delay. This delay cause the car to rev higher than the driver would expect. Unlike the VW DSG which has near instant response the transmission unit in the Mercedes seems to have a mind of its own.
Lexus also seems to have a problem with their transmission but the problem is different from Mercedes. The Lexus transmission appears to have wrong ratios. the LC500 and the RC500 have 10 gears (way too many!) which is aimed at better fuel economy but having 5 cruising gears is just down right stupid! The 1st and 2nd gears are so long that you literally can hit 120km/h in 2nd gear!! The engine has 471hp and if it was geared correctly would be an absolute monster to drive. Instead with the current long gear ratios the car feel lethargic and slow.
In terms of common cars with moderate power, having well match transmission also impacts the overall driving experience. Toyota failed miserably with the 2005 Camry with pathetic 4 speed automatic when competitors were all using 6 speed automatics. The 4 speed left the car neither responsive nor economical to drive. In comparison the Honda Accord had 5 speed automatic and when driven back to back the Honda was anytime a better car. The CVT made things worse for most of the Japanese car makers. Anyone who enjoyed driving would spit at the CVT transmission. CVT transmission is by far one of the worst things created for the car. It ruined the driving experience despite it being smooth, any car fitted with a CVT was dull to drive. Flooring the accelerator did nothing for the car's acceleration, all you hear was a transmission sound with little to no difference in acceleration!
Car companies with very well matched transmissions are Porsche with its PDK, VW DSG (wet clutch) and BMW. These 3 companies do not use the retarded CVT and have properly matched ratios and have very responsive transmissions that shift very quickly with no hesitation. The engine power is well utilised and the car doesn't feel sluggish or unresponsive.
Electric cars are likely to fit multi gear transmissions soon. Currently all electric cars have only 1 gear since the electric motors have a lot of torque and the car doesn't need multiple gears for the car to accelerate to high speed, however in order to achieve a higher top speed it would make sense for an electric car to have more than 1 gear to allow the car to high a higher top speed without the motor spinning higher than it needs to. The example in Formula E race car with more than 1 gear allowed some of the teams to set the car up for higher top speed for high speed race tracks where top speed is critical.
Apart from just developing the engine car companies need to spend more time to match a suitable transmission for their cars. Slapping just any transmission will not cut it in this highly competitive industry.
Thursday, 14 December 2017
Transition of Proton with Geely's management
Since Geely took over Proton in the last few months the new CEO from China has made some drastic changes in the attempt to turn the company around and fix all the existing problems that plagued Proton. It is no means an easy task but without making drastic changes Proton can never return to its former glory days. The company was saddled with under performing staff, over inflated prices for parts due to excessive corrupt practices by the management and procurement team and inefficient operations.
To stop the bleeding of funds, the new CEO informed all existing suppliers to reduce their costs by 20% or face being replaced by China sourced suppliers. The second thing was to change the terms and conditions of the dealers. The dealers' margin period was slashed and those without sufficient funds would be terminated. The third thing was to change the management structure to weed out under performing staff.
The cost cutting exercise will eliminate many suppliers who were feeding Proton staff in exchange for supply contracts. It was estimated that Proton would save more than 15% on cost just by cutting cost on parts. It would also force the corrupt employees to think otherwise.
Streamlining the dealers agenda was to reduce the dependency on small dealers and focus on building 3S and 4S large dealerships that could provide a better overall image of the brand and also provide the necessary support for the car owners. Proton previously had one of the lowest customer satisfaction ratings in the country. The old management did not pay much attention to customer satisfaction due to the Government protection however since the competition from Perodua and other car makers made it harder for Proton the old management style was doomed.
Geely will introduce their car designed models with a Proton badge in 2018 after going through some research and development work to convert the model from left hand drive to right hand drive. In 2018 it will be a big transition year and it is unlikely that Proton will start making profit. The profit may start to come in 2019 when sufficient models have been introduced.
Geely will need sufficient time to revamp the entire business and create customer confidence. Traditionally Malaysian buyers have not really accepted China made cars due to quality concerns but with the existing dealership network the confidence will start to grow and soon Geely may find Malaysia as their largest export market.
It is also very likely that Geely will start to utilise more of Volvo's technology since Geely owns Volvo. This is a plus point for Proton. The probably of selling a better designed car is always a positive point.
To stop the bleeding of funds, the new CEO informed all existing suppliers to reduce their costs by 20% or face being replaced by China sourced suppliers. The second thing was to change the terms and conditions of the dealers. The dealers' margin period was slashed and those without sufficient funds would be terminated. The third thing was to change the management structure to weed out under performing staff.
The cost cutting exercise will eliminate many suppliers who were feeding Proton staff in exchange for supply contracts. It was estimated that Proton would save more than 15% on cost just by cutting cost on parts. It would also force the corrupt employees to think otherwise.
Streamlining the dealers agenda was to reduce the dependency on small dealers and focus on building 3S and 4S large dealerships that could provide a better overall image of the brand and also provide the necessary support for the car owners. Proton previously had one of the lowest customer satisfaction ratings in the country. The old management did not pay much attention to customer satisfaction due to the Government protection however since the competition from Perodua and other car makers made it harder for Proton the old management style was doomed.
Geely will introduce their car designed models with a Proton badge in 2018 after going through some research and development work to convert the model from left hand drive to right hand drive. In 2018 it will be a big transition year and it is unlikely that Proton will start making profit. The profit may start to come in 2019 when sufficient models have been introduced.
Geely will need sufficient time to revamp the entire business and create customer confidence. Traditionally Malaysian buyers have not really accepted China made cars due to quality concerns but with the existing dealership network the confidence will start to grow and soon Geely may find Malaysia as their largest export market.
It is also very likely that Geely will start to utilise more of Volvo's technology since Geely owns Volvo. This is a plus point for Proton. The probably of selling a better designed car is always a positive point.
Using Cryptocurrency to buy cars
The cryptocurrency revolution is by far the biggest piece of news for 2017 and it is set to pave the way for the future. The impact of Bitcoin and other secondary coins are really shaking things up. Previously economist and financial experts were laughing at the possibility of using cryptocurrency for transactions or to purchase real world items but more and more people are proving them wrong and it won't be long before the economist and financial experts find themselves swallowing their own words!
Earlier this year a young man in America bought a Lamborghini Huracan using the profits he made from investing in Bitcoin at a very early stage. The total investment cost was only US$115 worth of Bitcoin which appreciated in value tremendously to well over US$10,000 per Bitcoin. He sold some of the Bitcoin he had and bought the Huracan. This news went viral as it was the first time anyone realised their profits from investing in Bitcoin to purchase a high ticket item.
Yesterday a man from China bought US$5 million worth of old Formula One cars (4 units) using Litecoin. No one knows if he bought the Litecoin from an exchange or if it was mined using his computers. Regardless how he obtained the Litecoin the fact in the matter is that he was able to materialise the transaction and successfully purchased the Formula One cars.
The early adopters will be the biggest benefactors of the cryptocurrency revolution and it will definitely change the face of purchasing vehicles. I believe it won't be long before more car dealers will accept some form of cryptocurrency as a mode of payment. There are hundreds of cryptocurrencies in the market now but the main few remain the ones that are most popular. The speed of transaction when using cryptocurrency will enable faster purchasing process of the cars and makes it a lot easier than relying on bankings and paying ridiculous bank fees.
The impact on the banking sector will be huge since many people who know how to mine cryptocurrencies will be able to buy cars with far less cost and it may do away with loans altogether. Consider this: a person is able to mine a Bitcoin over 1 year and the Bitcoin value reaches US$20,000 each, to buy the car the person is literally paying only the cost of electricity of running the mining machine and internet line so the cost acquiring the Bitcoin is less than US$4,000 (depending on country's electricity tariff). This means the person buying the car is only paying US$4,000 for a US$20,000 car!
For the dealers it has a positive impact too. With the cryptocurrencies increasing in value every month, any form of cryptocurrency held accepted by the car dealer will appreciate in value and increase the profits for the car dealer.
It is unsure how many dealers will quickly make the transition to accept cryptocurrencies but it is likely that we will see some early adopters in 2018.
Earlier this year a young man in America bought a Lamborghini Huracan using the profits he made from investing in Bitcoin at a very early stage. The total investment cost was only US$115 worth of Bitcoin which appreciated in value tremendously to well over US$10,000 per Bitcoin. He sold some of the Bitcoin he had and bought the Huracan. This news went viral as it was the first time anyone realised their profits from investing in Bitcoin to purchase a high ticket item.
Yesterday a man from China bought US$5 million worth of old Formula One cars (4 units) using Litecoin. No one knows if he bought the Litecoin from an exchange or if it was mined using his computers. Regardless how he obtained the Litecoin the fact in the matter is that he was able to materialise the transaction and successfully purchased the Formula One cars.
The early adopters will be the biggest benefactors of the cryptocurrency revolution and it will definitely change the face of purchasing vehicles. I believe it won't be long before more car dealers will accept some form of cryptocurrency as a mode of payment. There are hundreds of cryptocurrencies in the market now but the main few remain the ones that are most popular. The speed of transaction when using cryptocurrency will enable faster purchasing process of the cars and makes it a lot easier than relying on bankings and paying ridiculous bank fees.
The impact on the banking sector will be huge since many people who know how to mine cryptocurrencies will be able to buy cars with far less cost and it may do away with loans altogether. Consider this: a person is able to mine a Bitcoin over 1 year and the Bitcoin value reaches US$20,000 each, to buy the car the person is literally paying only the cost of electricity of running the mining machine and internet line so the cost acquiring the Bitcoin is less than US$4,000 (depending on country's electricity tariff). This means the person buying the car is only paying US$4,000 for a US$20,000 car!
For the dealers it has a positive impact too. With the cryptocurrencies increasing in value every month, any form of cryptocurrency held accepted by the car dealer will appreciate in value and increase the profits for the car dealer.
It is unsure how many dealers will quickly make the transition to accept cryptocurrencies but it is likely that we will see some early adopters in 2018.
Wednesday, 6 December 2017
what Success and failure of F1 means to car companies
It is obvious to see that success in F1 can be a great promotional boost for a car manufacturer. Take the example of Mercedes in the recent years. The road car sales have shot up through the roof setting new records year after year. The sales success from the showroom is nothing short of staggering. Mercedes really capitalised on their racing success and it made many new buyers turn to Mercedes.
On the flip side, Honda suffered tremendously in F1 with numerous engine failures which did affect their road car sales to some degree. Despite the failure in F1 Honda did not suffer a major setback in sales but their image took a beating. Being a trusted brand the road cars were still selling but it lost its image as front runner for engine technology.
Toyota also suffered a similar fate when it failed miserable in F1 10 years ago despite investing almost $1 billion and had nothing to show for it.
F1 is an expensive and cruel sport that can reward or punish the car company image-wise. Ferrari made huge steps forwards in terms of brand image and marketing from their success in F1 15 years ago at the hands of Michael Schumacher. Now Mercedes is doing the same thing with Lewis Hamilton.
Being able to compete in the top 3 will yield good marketing mileage for car companies but once numerous engine failures and DNFs start appearing it definitely doesn't bode well for the image.
It is a big gamble for any car manufacturer and with ever changing regulations it is all about who gets it right and makes the most of it. with every rule change one company or one team will be able to capitalise on it. There seems to be like a trend with an era of success for one particular team just like how Ferrari was the top for 5 years then came Mclaren then Redbull and now Mercedes. the fortunes for the teams change and the change can be very drastic.
In the mid 1990s Williams won 2 constructor's championships but after the second championship the car team was nowhere near the top 3 and were struggling with mid field teams. It just goes to show that one year's success does not mean that it will translate to similar results the next year. this is the cruel part about F1.
Mercedes is now enjoying their reign of success but no one knows how long this will carry on for and who will be the next to enjoy a reign of success.
On the flip side, Honda suffered tremendously in F1 with numerous engine failures which did affect their road car sales to some degree. Despite the failure in F1 Honda did not suffer a major setback in sales but their image took a beating. Being a trusted brand the road cars were still selling but it lost its image as front runner for engine technology.
Toyota also suffered a similar fate when it failed miserable in F1 10 years ago despite investing almost $1 billion and had nothing to show for it.
F1 is an expensive and cruel sport that can reward or punish the car company image-wise. Ferrari made huge steps forwards in terms of brand image and marketing from their success in F1 15 years ago at the hands of Michael Schumacher. Now Mercedes is doing the same thing with Lewis Hamilton.
Being able to compete in the top 3 will yield good marketing mileage for car companies but once numerous engine failures and DNFs start appearing it definitely doesn't bode well for the image.
It is a big gamble for any car manufacturer and with ever changing regulations it is all about who gets it right and makes the most of it. with every rule change one company or one team will be able to capitalise on it. There seems to be like a trend with an era of success for one particular team just like how Ferrari was the top for 5 years then came Mclaren then Redbull and now Mercedes. the fortunes for the teams change and the change can be very drastic.
In the mid 1990s Williams won 2 constructor's championships but after the second championship the car team was nowhere near the top 3 and were struggling with mid field teams. It just goes to show that one year's success does not mean that it will translate to similar results the next year. this is the cruel part about F1.
Mercedes is now enjoying their reign of success but no one knows how long this will carry on for and who will be the next to enjoy a reign of success.
Sunday, 19 November 2017
Tesla Roadster and Semi
Elon Musk kept the new Tesla Roadster very quiet until the official launch. Like typical Tesla the Roadster was nothing short of spectacular. There were rumours floating around that Tesla would make a new sports car but no one had any idea how good it would be.
The new car looks stunning but it is not all about the looks. The car performs far beyond the expectations of anyone. The performance figures is simply amazing and really would rock the super car industry. The sticker price is US$250,000 which is right up there with Lamborghini but the Tesla Roadster will show any Lamborghini a thing or two about serious performance. The Roadster can accelerate to 100km/h in 1.9 seconds!! Thats is like Formula One car territory, but this is not the best part about it. The car's driving range is now 620miles or 1000 km! there is no super car in the market that can achieve even 500km on a fuel tank of fuel.
The Roadster just moved the performance yardstick a country mile further for all the car companies to chase. They are already struggling to chase the P100D and now it has just gotten a lot more difficult. Porsche claimed that their new electric car will be better than the P100D with faster charge times but it is not due to be available until 2020, by then no one knows what else Tesla will introduce and push the performance boundary even further.
I believe the Roadster will shake up the super car segment since no standard production Ferrari, Lamborghini, Porsche or Mclaren can achieve such figures. The closest rival for the Roadster will be the Rimac Concept-one which is not for sale yet. The Rimac Concept-one is a real contender for the Roadster since it is also capable of similar performance figures.
The second part of the new Tesla launch was the Semi that was launched which claimed to have a 500 miles driving range. After that launch Walmart immediately placed orders for 15 units. Tesla is obviously moving in the right direction with shaking up the transport industry. The Semis offer incredible performance and extremely good drag coefficient to enable it to be significantly better than any big truck in the market. There are just so many advantages of the Tesla Semi since it is fully electric there will be far less maintenance involved, less pollution and the high torque from the electric motor will enable the Semi to easily haul cargo compared to traditional trucks that struggle with heavy loads.
The 500 miles driving range is good enough since most trucks travel an average distance of 300 miles for single trips. this is well within the range with good surplus.
The new car looks stunning but it is not all about the looks. The car performs far beyond the expectations of anyone. The performance figures is simply amazing and really would rock the super car industry. The sticker price is US$250,000 which is right up there with Lamborghini but the Tesla Roadster will show any Lamborghini a thing or two about serious performance. The Roadster can accelerate to 100km/h in 1.9 seconds!! Thats is like Formula One car territory, but this is not the best part about it. The car's driving range is now 620miles or 1000 km! there is no super car in the market that can achieve even 500km on a fuel tank of fuel.
The Roadster just moved the performance yardstick a country mile further for all the car companies to chase. They are already struggling to chase the P100D and now it has just gotten a lot more difficult. Porsche claimed that their new electric car will be better than the P100D with faster charge times but it is not due to be available until 2020, by then no one knows what else Tesla will introduce and push the performance boundary even further.
I believe the Roadster will shake up the super car segment since no standard production Ferrari, Lamborghini, Porsche or Mclaren can achieve such figures. The closest rival for the Roadster will be the Rimac Concept-one which is not for sale yet. The Rimac Concept-one is a real contender for the Roadster since it is also capable of similar performance figures.
The second part of the new Tesla launch was the Semi that was launched which claimed to have a 500 miles driving range. After that launch Walmart immediately placed orders for 15 units. Tesla is obviously moving in the right direction with shaking up the transport industry. The Semis offer incredible performance and extremely good drag coefficient to enable it to be significantly better than any big truck in the market. There are just so many advantages of the Tesla Semi since it is fully electric there will be far less maintenance involved, less pollution and the high torque from the electric motor will enable the Semi to easily haul cargo compared to traditional trucks that struggle with heavy loads.
The 500 miles driving range is good enough since most trucks travel an average distance of 300 miles for single trips. this is well within the range with good surplus.
There will be a lot more to come from Tesla. All those car companies who laughed at Tesla will start to cringe knowing that despite Tesla being a small car manufacturer they have made all the car companies sit up and listen. Tesla made all other car companies look old and out of date because the amount of innovation that goes into any Tesla is nothing short of impressive. Thinking outside the box has really made Tesla a force to be reckoned with!
Sunday, 12 November 2017
Corvette ZR1
The latest iteration of the Corvette is by far the best that Chevrolet has ever produced. It is light, fast, agile and incredibly powerful. The latest version ZR1 just moved that yardstick further with a stonking 755hp and 930Nm of torque driving through the rear wheels. It is obviously an attempt to keep up with Ferrari and other Europeans hypercars that push out over 650hp. The horsepower game is definitely moving on to newer pastures and it is exciting for new buyers. The age old problems still remain and that is 90% of buyers will likely struggle to drive it since they already struggle to control a 600hp car let alone one that is 750hp!
The ZR1 has proven to be highly capable and is a bargain compared to exotics like Ferrari and Lamborghini. It is little wonder why it is so popular in America. For such little money you can scare the living hell out of exotics that cost 3 times more. The Corvette is also a good looking car and is able to turn heads. I won't be surprised if Chevrolet will aim for a more extreme version is more power soon seeing that the Dodge Hellcats are easily pushing well over 700hp! The motto will be something like this "since we are at it might as well go for more power!".
It appears that the American car makers are on a rampage to build cars with ridiculous power. their design philosophy is different from the Germans that look at refinement over power. The Americans aim for huge power figures as a marketing tool to attract hot blooded young buyers and those middle age guys with mid life crisis. This recipe seems to work and these tuned models have been selling well.
Value for money, bang for your buck sports sedans, sports SUVs and sports car are all the rage now in America. Screw the hybrids...!
I do hope that these car makers will spend a bit of marketing dollar toward driver training for every Hellcat, Corvette or any other high horsepower car they sell. It won't look good in the news when many are crashed due to driver's inability to control the car.
The ZR1 has proven to be highly capable and is a bargain compared to exotics like Ferrari and Lamborghini. It is little wonder why it is so popular in America. For such little money you can scare the living hell out of exotics that cost 3 times more. The Corvette is also a good looking car and is able to turn heads. I won't be surprised if Chevrolet will aim for a more extreme version is more power soon seeing that the Dodge Hellcats are easily pushing well over 700hp! The motto will be something like this "since we are at it might as well go for more power!".
It appears that the American car makers are on a rampage to build cars with ridiculous power. their design philosophy is different from the Germans that look at refinement over power. The Americans aim for huge power figures as a marketing tool to attract hot blooded young buyers and those middle age guys with mid life crisis. This recipe seems to work and these tuned models have been selling well.
Value for money, bang for your buck sports sedans, sports SUVs and sports car are all the rage now in America. Screw the hybrids...!
I do hope that these car makers will spend a bit of marketing dollar toward driver training for every Hellcat, Corvette or any other high horsepower car they sell. It won't look good in the news when many are crashed due to driver's inability to control the car.
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