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August 23rd, 2007

2,000 golf pros = 1 Tiger Woods

Posted by: Ben Klayman

tiger.jpgPity the poor golf pro at the local course because it would take cloning him almost 2,000 times to equal the take-home pay of Tiger Woods, pictured left.

The average head golf pro earns almost $58,500, while Woods took home almost $112 million, according to data compiled by Web site Salary.com and in a report entitled “How many ‘Average Joe’s’ does it take to earn a pro athlete’s salary?” published reports.

Tiger’s pay dwarfs even Professional Golf Association Commissioner Tim Finchem’s $4.5 million salary, according to data compiled by Salary.com from  published reports in 2004 and 2005.sharapova.jpg

The disparity doesn’t end there as it would take more than 1,500 exercise specialists earnings more than $36,300 to equal boxer Oscar De La Hoya’s $55 million take home, 545 senior automotive mechanics making almost $50,000 to match NASCAR driver Dale Earnhardt Jr.’s $27.1 million and 384 flight attendants making almost $60,000 to equal the $23 million earned by tennis pro Maria Sharapova. (pictured right)

All that is of little surprise to sports fans, who have watched salaries balloon across most professional sports. Long gone are the days when New York Yankees’ baseball pitcher Don Larsen, who threw a perfect game in the World Series, worked on farms and lumber yards in the offseason to supplement his income.

Of course, to appeal to the media, Salary.com threw in that it would take 3,692 reporters’ salaries to match Tiger’s, which just goes to show that Woods is buying the next time he shows up at the National Press Club.

updates to clarify sourcing on data

May 31st, 2007

Mark Cuban: football maverick

Posted by: Ben Klayman

Does Mark Cuban’s budding love affair with professional football mean he’s cooled on buying the Cubs?

The owner of the Dallas Mavericks pro basketball team has been mentioned as a possible contender for Chicago’s iconic, loveable baseball losers, but plans to buy a team in the United Football League, the new competitor to the NFL. (See this New York Times story that broke the news.)

The UFL, which also is getting backing from Hambrecht + Co. investment bank founder Bill Hambrecht and Google executive Tim Armstrong, will start with eight teams and play on Friday nights.

The league will include teams in such NFL-less cities as Los Angeles, Las Vegas and Mexico City, which last year hosted the most heavily attended regular-season game in NFL history (Plans for a UK game are in the works as well).

Cuban, who has expressed interest in the past in buying the Cubs, stands ready to gamble on the UFL succeeding where the World Football League, the United States Football League and the XFL failed. Even the Canadian Football League failed when it tried to establish a presence in the United States.

Cuban could still be in the running for the Cubs, which Tribune has put on the block, but Major League Baseball tends to favor local owners, which may be a reason why Cuban is looking to the gridiron.

Side note: See this other New York Times article — which is a story by one reporter at the paper talking about how his colleague got the exclusive report… if you can follow all that.

January 26th, 2007

Now Wal-Mart is calling the Super Bowl winner too?

Posted by: Ben Klayman

Wal-Mart has conquered the retail, toy and grocery segments of the U.S. market. Now the world’s largest company thinks it can accurately predict the winner of the Super Bowl too.

The retailer said higher sales at its stores of T-shirts of the big game’s participating teams has successfully predicted the outcome in three of the last four years. Sorry, Philadelphia Eagles fans, but your support was not enough to overcome quarterback Tom Brady and the New England Patriots in 2005.

Fans of the Chicago Bears (pictured right buying team merchandise after Chicago won the NFC championship game), who will play the Indianapolis Colts in Super Bowl XLI in Miami on Feb. 4, can take hope. Wal-Mart said in the early going, Bears’ T-shirts hold a slight edge as of Jan. 26.

Oddsmakers are ignoring such history, however, having established the Colts as the favorite by about a touchdown.

Wal-Mart may be hedging its bets as it also pointed out that Colts fans have bought more DVDs about their team’s history. And the store in Rensselaer, Indiana — the halfway point between Chicago and Indianapolis — is selling merchandise for both teams.

Colts fan still have a chance to change the outcome and ring up more sales for Wal-Mart as the company will provide a pregame update of the T-shirt sales figures on Feb. 2.

 

 

January 9th, 2007

Toyota’s Press to GM: Don’t read the papers

Posted by: Ben Klayman

Toyota Motor North American chief Jim Press (pictured left) had simple advice for U.S. rival General Motors: don’t get hung up on what the media is writing about you.

“Don’t read the newspapers. You’re doing fine. Just keep doing what you’re doing,” he said to analysts at an event in conjunction with the Detroit auto show.

Press, responding to a question about what advice he had for GM, said he didn’t presume to tell the U.S. automaker what to do. Toyota is expected to pass GM as the world’s largest automaker this year.

“The last thing I could do is give advice to General Motors,” he added. “I seek advice from General Motors, to be honest with you because they’re going through a period of time when they’re making very tough decisions.”

A year ago, talk of bankruptcy was swirling around GM, which faced slumping sales, shareholder pressure and numerous newspaper stories about all the bad news it faced. However in 2006, the U.S. automaker silenced critics by cuttin g more than 34,000 jobs, unveiling plans to close 12 plants and reduce recurring costs by $9 billion.

At the show, GM talked about further cutting costs, swept the 2007 North American Car and Truck awards (award winner Chevrolet Silverado pickup pictured left), and unveiled its Volt electric concept car it intends to make in the future. Reuters has complete coverage of the show.

(PHOTOS:Reuters)

 

 

January 9th, 2007

China’s Changfeng aims not to disappoint

Posted by: Ben Klayman

Changfeng Motor paved a new path, becoming the first Chinese automaker to debut a vehicle at the Detroit auto show with its Liebao SUV (pictured right with Changfeng Chairman Li Jianxin, right, and an auto show executive).

Changfeng — with a marketing slogan of “Never Makes You Disappointed” – joins a growing list of Chinese automakers who have announced plans to enter the U.S. auto market. 

The Wall Street Journal said the Chinese government is pushing hard to establish the country’s industry as a global player.

But the company’s marketing materials supported the view among some analysts that the next wave of imports will face an uphill battle in the near term marketing to skeptical U.S. consumers.

For example, the translation for the Black Giant SUV alerts buyers that “strong power drives the mighty body. You will feel full of momentum and great dignity.”

Of the vehicle’s interior, it features a “true leather seat … designed according to human engineering so you feel very comfortable.”

Changfeng also attempts to explain the SUV’s performance in cold weather and high altitude: “It can ignite under low temperature and anoxia.”

(PHOTO: Reuters)

 

January 9th, 2007

Toyota eyes even bigger pickup truck

Posted by: Ben Klayman

Toyota — fresh from showing off its Tundra CrewMax (pictured left with executive vice president Jim Lentz), a version of the full-size pickup with the largest cab space – is now eyeing a “Super Duty” version to fill out its vehicle lineup.

It may need all the products it can get as the Wall Street Journal reports Toyota faces pressure to further boost North American production to counteract potential political backlash stemming from the U.S. Big Three’s woes.

Toyota’s Jim Press dismissed concerns about political fallout over the Japanese carmakers’ relentless charge in the U.S. market. In the end, Toyota’s cars and trucks will determine its success.

Autoblog said the Tundra CrewMax finally gives the Japanese automaker a strong competitor in the full-size pickup market. Toyota expects to sell about 200,000 of the redesigned Tundras pickups annually.

However, Edmunds.com said Toyota will be hard pressed to compete with Chrysler’s Dodge Ram Mega Cab.

(PHOTO: Reuters)

 

January 9th, 2007

Consumer Reports rates this year’s Detroit auto show

Posted by: Ben Klayman

Correspondent James B. Kelleher spoke with David Champion (pictured left, courtesy of Consumer Reports), senior director of the automotive test center at Consumer Reports magazine. A transcript of the interview follows:

REUTERS: So how are you enjoying the show so far?

CHAMPION: Its another endurance tour. There seems to be more life this year than last. More optimism within the domestic manufacturers than there was last year. Whether thats going to follow through into sales well have to see.

REUTERS: Were hearing talk and not just from Bob Lutz of a renaissance at General Motors. The company swept the North American Car and Truck awards on Sunday.

CHAMPION: I dont agree with (the car-of-the-year award for the Saturn) Aura. Its a nice try in that family sedan category. But its not a class-winner like a Camry or an Accord or an Altima. They blow that car away. I would have chosen the Camry hybrid. It gets 34 miles a gallon. Its the one car we have in our fleet that will outlast my bladder.

REUTERS: What does that mean?

CHAMPION: Normally you can go 300 miles on a tank of gas. With the Camry hybrid, you can go 600, 650 miles. And Im going like this (he grimaces and bangs the table).

REUTERS: But in addition to the North American Car and Truck awards, Im just hearing people respond favorably to the designs coming out of Detroit, in production vehicles and concepts.

CHAMPION: The concept stuff Im not particularly enamored with. We saw different concepts with fuel cells and then you look at what Hondas done. Theyve got numerous vehicles on the road running on fuel cells. Weve actually driven them and they are perfectly drivable. I dont see anything from General Motors yet.

REUTERS: What about the Volt?

CHAMPION: Its alright. Its another of those, When?

REUTERS: And the answers seems to be two to three years at the soonest if ever.

CHAMPION: And probably next year well see something else after the Volt, something totally different. But I think the redesigned (Cadillac) CTS looks very nice. That looks right for the marketplace. The old CTS had a very good chassis, reasonable engine, the interior was like this (he makes a so-so gesture). The interior on the new one by the look of it theyre going to do a really nice job on it.

REUTERS: Have you driven it?

CHAMPION: No. Im talking about fit and finish. I sat inside it and yeah there are a few areas theyll clean up. Its an early prototype. Its an 08 introduction. So they still have nine months before production comes out. So what Im saying is the new CTS interior is more in keeping with what the market wants. Malibu, by the look of it, looks like a nice car. Where they put the Saturn Aura and the Malibu together, I cant see. I dont see the Aura (pictured above with actress Kristen bell) doing particularly well when you can buy a Malibu with a four-cylinder, six-speed or a 3.6 (liter six-cylinder) with a six-speed. Where does a 3.5 (liter) pushrod, with a four-speed automatic transmission fit in, especially a car with a fairly tight backseat?

REUTERS: How about what Fords unveiled?

CHAMPION: Theyve tried to revamp the 500 (sedan) with a little more style on the outside. But the interior still feels pretty cheap and chintzy even though theyve put some nice surfaces on various parts. Their full-size trucks are likely to do well again and keep them going again. But in that one bastion of domestics, the full-size trucks, the new Toyota Tundra is coming up on their heels. Toyota is looking at 200,000 units a year, which is nothing compared to the 700,000 to 800,000 that they sell of the F-Series. But when you look at the T-100 and the first Tundra and now the second one, youve got to wonder, Wheres the next one going?

REUTERS: But the T-100 and the Nissan Titan and the first Tundra, they really havent made a huge splash.

CHAMPION: Yeah, but theyll start nipping away. When you look at the Camry or Accord, when they first came out, they werent huge sellers. But they got a loyal following because of their reliability. We hear so many people who have a GM or a Ford or a Chrysler who say, Ill never buy another one.

REUTERS: Talk to me about crossovers.  Is that category growing by leaching off former SUV and minivan owners?

CHAMPION: I dont see the minivan market going away. Yes, they say its dipping a little bit. But I still see it being 10 percent carrying on. And if gas prices go up, SUVs arent really as good a family vehicle as a minivan. If money gets tight, people are going to start thinking with their head a little bit more. Yes, I dont think the minivan is particularly charismatic, but it does exactly what I want it to do.

REUTERS: So is the crossover segment a sustainable one?

CHAMPION: Yeah, I think the full-size SUVs, the truck-based SUVs the Explorers, the Trailblazers, the Expeditions, the Tahoes I think those are going to be the big losers because there arent many people who want a lot of towing capacity. There are some and those vehicles do extremely well for those people. Most people want seven-seat SUVs, but they dont want it to be super heavy and a gas guzzler. So I think that crossover market is going to be pulling more from the large, truck-based SUVs, though theyre also going to be pulling some sedan buyers who want something a little bit more sporty like the Edge or the Murano or the CX-7 or the MDX or the RDX or the BMW X5 and X3 its getting pretty crowded in there. And now weve got the Outlook and the Acadia and the Buick Enclave coming into that and Hyundais new Vera Cruz is coming in right on top of Pilot, MDX territory. Thats going to be another big player in that market. Chrysler doesnt really have anything other than the Pacifica, which hasnt really taken off. And you see what Jeeps got lying around: fields of Commandos and Grand Cherokees because people arent looking for that off-road thing. Theyre looking for more of a sporty feel and a lot of interior space. We carry a lot of stuff.

REUTERS: The carmakers seem to be obsessed with non-automotive technology: MP3 players, cell phones and whatnot. Ford even had an electronic lava lamp in their Ford Airstream concept vehicle that the driver and passengers can gather around.

CHAMPION: Were hearing the word connected a lot. And if youre talking about WiFi in your car, so you can download stuff you want to hear on your way to work tomorrow morning, I see that. Im not sure very many people party in cars anymore. But I did like that Airstream (pictured right with senior designer J Mays), the outside shape. VW missed a huge boat when they didnt produce the microbus they had here four or five years ago. A lot of people say they wont drive a minivan because its not cool. I thought that microbus was cool. And I think this Airstream is cool, if they made it more minivan rather than what there is at the moment.

REUTERS: Lets talk about this new emphasis on fuel efficiency. The conventional wisdom seems to be it’s consumer driven and a permanent or at least medium-term trend. But we saw oil prices decline pretty dramatically last week. Any chance consumers are going to lose the spirit if pump prices fall further?

CHAMPION: If you look at the amount of money you actually spend on gasoline, its relatively small in a family income. So you dont see the emphasis on fuel economy that you should see. I just dont see that its hitting Americans in the pocket if theyre getting 18 to 22 miles per gallon. If the price goes up to $4 a gallon, $4.50 youre going to see enormous change in peoples buying habits.

REUTERS: And presumably the more it slips away from $3 a gallon towards $2 …?

CHAMPION: They go back to where they were: Buying Expeditions and Excursions and Suburbans and things like that. Last year it was all fuel economy, fuel economy, fuel economy. This year youre not seeing it quite as much. I do think were going to see many more diesels come into the U.S. market. I like diesels.

REUTERS: Well of course you do: Youre European. You like warm beer. But OK, you like diesels.

CHAMPION: I think were going to see diesels coming in a little more. Theres not the same price premium that you would pay for a hybrid its somewhere between a gasoline engine and hybrid. And youre going to get 30 percent better fuel economy.

REUTERS: Thats sound very sensible, very Consumer Reports-ish, but diesels have a lot of negative perceptions in this country.

CHAMPION: I think there hasnt been enough product out there that people have driven. I think if you talk to truck buyers, anybody whos driven a Dodge diesel or a Chevrolet diesel over the last few years, they swear by them. I think well see that coming down into smaller trucks and SUVs like Tahoe and Expedition and Durango, because diesels good for towing, its got a lot of low-speed torque, and its got fuel economy.

REUTERS: One of the interesting wrinkles about this show is youve got GM showing the Volt, a futuristic, electric, fuel-thrifty vehicle, and Toyota showing the Tundra CrewMax, with 5.7-liter engine, and a 10-cylinder Lexus.

CHAMPION: But there again, the companies have to be in every marketplace. Toyota s really trying to get into the big truck marketplace and the price of entry is a 5-plus liter V8. With GM, the only hybrid they have is the hybrid Vue, which is no better than a two-wheel-drive Honda CRV without any hybrid on it. Its just a big alternator and they put hybrid on the side. The Escape hybrid now has incentives on it so they can get rid of them because its not a particularly good product.

(PHOTOS: Reuters)

January 8th, 2007

Malcolm Bricklin on electric hybrid plans

Posted by: Ben Klayman

Reuters James B. Kelleher sat down with Malcolm Bricklin, founder of Visionary Vehicles and a colorful entrepreneur who wants to bring Chinese-made cars to the U.S. market. An edited transcript of the interview follows:

REUTERS: Whats the most interesting thing youve seen here today? A colleague told me they saw you hanging around GMs Chevy Volt electric vehicle?

BRICKLIN: Thats the way were going.

REUTERS: Really?

BRICKLIN: A little bit different. They have the engine bigger than we want. … We can have a little engine, a little engine — not a big one like that a little engine that runs in one constant RPM that does nothing more than fill up the battery full time, along with regenerative braking, and you can get 100, and if you plug in, 150 miles to the gallon.

REUTERS: So thats the kind of powerplant youre talking about?

BRICKLIN: What I saw there, which is more sophisticated than you need, is what were planning on putting in the car now.

REUTERS: So whos going to build it? When last we talked, at the September Reuters Auto Summit, you were talking to Chinas Chery Automobile. But since then, theyve partnered with DaimlerChrysler instead.

BRICKLIN: And in fact made it impossible for them to pay attention to building great cars and cheap cars at the same time They really think you can build a cheap car and get away with not-quite-as-good quality. Of course, Chryslers going to teach them a whole new game. … So we went out and spoke to 15 other manufacturers to make sure that were going to end up with three that we liked, and weve been interviewing people and sending people over there. But what I also did was find out ‘Can we do this electric hybrid, either faster or slower’. Well, you get rid of six-speed transmission, you get rid of my V-6 engine, you get rid of my catalytic converter, you get rid of all my emission problems, yeah, (and) we can do it and get it in 09. And were starting to build the prototype.

REUTERS: So let me check my comprehension: Chery will not be building the car?

BRICKLIN: No. It will be one of 15 people were talking to in China right now.

REUTERS: Any names you can share with us?

BRICKLIN: I cant. Heres my problem: They said, You cant use any of our names until you decide who we are. Because youll get everybody excited about us and if we lose, were going to lose face. When we pick the three, well let everybody know.

REUTERS: So the date I just heard was 2009?

BRICKLIN: 2009.

REUTERS; And thats for?

BRICKLIN: Cars here in the United States.

REUTERS: Powered by?

BRICKLIN: Powered by electric, hybrid, plug-in.

REUTERS: Lets talk about distribution, dealerships.  Again, when we were talking last time you said youd lined up some number of dealers and they were willing to put $2 million down each.

BRICKLIN: Twenty-eight dealers put up the money. Over 100 hundred dealers were ready to do it in August when we stopped and said, Whoa. We dont know where were going. Everything we did, we always did with those 28 dealers that were in. We told them what we were doing and how we were doing it. One dealer dropped out.

REUTERS: Does the vision for these cars, outside the new powerplant, remain the same?

BRICKLIN: Its all the same. Powerplants different. And the car will be modified a little because the powerplant changes the way the car is, you wind up with a flat floor.

REUTERS: When did you have the eureka moment about electric power?

BRICKLIN: I was talking to my son the other day and I told him, Everybodys going to say were making this big change In 1975 or 1976, I started investing in technology that I thought would make a big difference in the car business. What I found is, you cant invest in a technology and try to sell it to somebody. … Nobody wants to change anything. Why, if I was General Motors, would I want to get rid of all my transmissions and engines and start all over? I dont think so.

REUTERS: Talk to me about the dealers who are onboard and their feelings about the powerplant change.

BRICKLIN: They love it. The guys Im talking to are guys my age. They made plenty of money — $2 million is not a big deal in their lives. What theyre really looking to do is truly get into the car business and make a change. Everybodys got it: Chinas coming. Everybody knows Chinas the next car country. No question about it. But would they like to get into cheap cars? Or would they like to get into cars they can be proud of? If we can do what were talking about, its the same thing. … They know we can do it. I have people right now scouring every single battery plant in China and they found the battery technology that Motorola is using that doesnt have the problems with that and theyre already building electric things for buses and cars and trucks and everything else, just not in big quantities because no ones buying them yet in big quantities. The technology is there now. The battery technology has made the next step its not the last step its just the first step that makes it practical to have a true plug-in hybrid that works. (Chevy Volt pictured left)

REUTERS: One of your ambitions was to be the first mover bringing Chinese-made cars into the United States. Given this new time line, is that still a reasonable hope?

BRICKLIN: The only competition I think we have would be Chrysler. Now what do I know about Chery and what do I know about Chrysler? Chrysler certainly knows everything you need to know about the car business. And they sure as hell know about China, because they were the first ones in there in the 80s. So they know how to do business with China a lot better than I know how to do business with China. I also know Chery. And Chery are very independent and very strong-minded guys who are going to do what is good for them. Theyre going to have to try selling Chrysler a car that will retail for $10,000. That means they have to sell the car for under $5,000. And they have to have all the airbags in there. They have to have all the safety devices. And they have to meet all the emissions. I know for sure Chery does not have the ability alone to do it. But with Chrysler, they could do it. But they still have to do it. And it takes two years to do anything. If you want to breathe in the car business, it takes two years from the day you say, Ill breathe to the day it comes in. So I dont believe theyll be in until 09. And if we come in and they come in, I dont even think were in the same game. You want to buy a $10,000 car from Chrysler called a Hornet or whatever you want to call it? Or do you want to buy a car that has everything going for it, thats comparable to a Mercedes, except its 30 percent less?

REUTERS: So what kind of prices point are we talking about?

BRICKLIN: The first car were going to do will be in the same class as a Mercedes E. But itll be a $50,000 car that sells for $35,000. So our cars will be in the $25,000 to $35,000 bracket.

REUTERS: It seems to me that when we were talking to you in September we were trying to get you to confirm or deny billionaire George Soross possible involvement in your project.

BRICKLIN: Soros (pictured left) had put up the $200 million. That really was the case. But when we realized we werent going to do it, he took back the $200 million. We gave it back to him and he had his money.

REUTERS: So if I think about the financial situation right now

BRICKLIN: Were still going to need the same half a billion. You still need the same distribution system. The R&D, instead of giving it to Chery, we have to spend it ourselves.

REUTERS: So how do your raise that?

BRICKLIN: The dealer money, plus my investors I already have, takes care of everything I need to do.

REUTERS: So if were trying to benchmark the progress youre making, whats the next big step?

BRICKLIN: The next big step will be somewhere around six months from now I have to show you a car that you can get in and drive that looks like, tastes like and is the car Im going to build.

REUTERS: So does that mean a proof of concept or prototype, right? Not just a picture.

BRICKLIN: Not just a picture. No. You drive it. It gets 100 miles to the gallon. It has great performance. The interior is the interior that we want.

REUTERS: So within six months there should be something that can be driven?

BRICKLIN: Probably heres whatll happen if Im true to form: six months from now, youll give me a call and Ill say, Im a month or two away. But itll be that close.

(PHOTOS: Reuters)

January 8th, 2007

Lamborghini CEO OK with track’s take on Gallardo

Posted by: Ben Klayman

The chief executive of Italian sports car maker Lamborghini is OK with the use of Lamborghini’s name in songs, even when a model’s name is mispronounced.

“Not all publicity is good publicity, but we sell cars,” Stephan Winklemann (pictured left) told Reuters. “It’s part of the business that you have, let’s say, a potpourri of different types of customers and this is part of the game.”

Hip hop and R&B singer Akon’s ”Smack That” — featuring rapper Eminem — is a hit song that was nominated for a Grammy award. It is also one of the most popular rings tones to download. The carmarker is mentioned in the lyrics “I can see you from my shadow/Wanna jump up in my Lamborghini Gallardo/Maybe go to my place and just kick it like tae bo”

Gallardo is pronounced Ga-lar-doe in the track as opposed to the correct Guy-ar-doe. When asked if he could live with the mispronunciation, Winkelmann laughed, adding, “Yes, no problem at all.”

Winkelmann reiterated that Lamborghini, owned by Germany’s Volkswagen AG, expects sales in 2007 to rise 5 to 10 percent. Last year, Lamborghini sold 2,087 cars worldwide, an increase of 30 percent, with 876 coming in the United States. The state of California alone accounts for 300 of those sales, he said.

The company plans to add 10 to 12 dealers to the 100 it had at the end of 2006 globally so its customers won’t have to wait longer than the currant 12 months to buy a car, Winkelmann said.

(PHOTOS: Reuters left, Lamborghini right)

January 8th, 2007

Automobile magazine editor on Prius brand, the show and more

Posted by: Ben Klayman
Reuters James B. Kelleher spoke with Automobile magazine senior editor Joe DeMatio (pictured left, courtesy of the magazine) on subjects ranging from fuel efficiency to car designs. A partial transcript follows. 
Reuters: Theres conventional wisdom emerging that the appetite among consumers for more fuel-efficient cars represents a real, permanent change, not a temporary reaction to the spike in energy prices. Do you agree? Does last weeks sharp drop in oil prices change things at all?

DeMatio: I think Americans are very susceptible to fashion and trends and I think its a definite trend toward fuel-efficient vehicles. There are a lot of people who are very interested in hybrids who, in my opinion, never had any interest in fuel efficiency before, even though there were fuel-efficient, small cars available. But it took it becoming a fashionable item for it to catch their interest. Its fascinating.

Reuters: The Prius has a kind of iPod-like cachet, doesn’t it?

 DeMatio: Completely. It is now known as the Prius. No one knows it as the Toyota Prius any more. Its Prius. (Pictured left, actor Tom Hanks arrives at move premiere last year in a Prius). Its a brand name thats bandied about as much as iPod. Im sure theres a certain segment of the population that got scared out of SUVs when gas was hovering around $3 a gallon who, now that its sinking back down, are breathing a big sigh of relief like, “OK, Armageddon is not here yet. The worlds not ending. I can still do this without feeling guilty or stupid or whatever.”

Reuters: The Germans are really pushing clean diesel technology, but so far its lacked the cachet of hybrid.

DeMatio: Absolutely.

Reuters: Is that changing?

DeMatio: Its going to take Susan Sarandon (pictured right) driving one to the Oscars because Americans still equate diesels with smelly truck stops, and some people equate them with the really bad American diesels, especially the GM ones in the early 80s. And so it definitely has an image problem and its going to be somewhat difficult to overcome. Hybrids were new and they didnt have any baggage. Diesels have huge baggage. But I just personally drove a diesel 1,200 miles in China and it was a brilliant car. Its a great car for Americans. Diesels have a lot of torque. Thats what Americans want thats what they like – that response when they hit the gas.

Reuters: So diesel doesnt have the cachet, but it sounds like its got the goods.

DeMatio: Absolutely. Europeans have embraced them fully and BMW is going to launch in the U.S. with diesel, which they promise to be both very efficient and meet all the expectations of the BMW driver for performance. So is hybrid a stopgap? Is clean diesel a stopgap before fuel cells? The hybrid in itself is a fairly inelegant solution. You have two power sources in one vehicle, which from an engineering standpoint is redundant and wasteful. But it shows how fickle Americans are, how susceptible we are to trends and the winds of fashion.

Reuters: Are the lines blurring between SUVs and crossovers? Is there a meaningful difference between them anymore?

DeMatio: Well, the difference from a purely driving standpoint and what the car feels like to you is that your first SUV was basically a pickup truck that they put sheet metal over the back and bolted in some seats. Then weve had all these generations of SUVs based on so-called truck platforms and now the crossovers are segueing into car platforms. Theyre a little lower to the ground but they still have some height, which is what Americans like. Theyre just much better to drive because theyre based on a car platform rather than a truck and so they drive like a car. They have better suspension. They have better handling. They have unibody construction, rather than body on frame, so theyre much more rigid, which translates to better handling and steering.

Reuters: Who are the crossover buyers?

DeMatio: There are two forces converging with the crossover phenomenon: SUV fatigue and minivan fatigue. But with both of those vehicles, weve had 20 years of drivers and passengers who are accustomed to three rows of seating and all the utility that a large amount of enclosed, cubic space provides. Thats what they both did; they both provided big-box spaces in different packaging. The ironic thing is the crossover isnt as practical or as useful as the minivan because the minivan has a lower floor, lower step-in height, and it’s easier to get in and out, easier to move packages in and out of and children and such. But minivans and SUVs spoiled people. If youve gone from a sedan to a vehicle with three rows of seats that can seat six to 10 people and also carry all your purchases from Costco, its hard to go back to a sedan. The crossover gives you a little bit of the feeling of a car, but some of the utility of the SUV and the seating capacity of the minivan and theyre much more expressive styling wise.

Reuters: So are SUVs and crossovers converging? Does that distinction mean anything?

DeMatio: I think the true SUV will continue to exist because theres a market for those. But there will be a niche of the crossover market. Theyre all what we call people movers. There will always be a need in America for a body on frame vehicle thats capable of towing heavier loads than a unibody. Here in Michigan, if you head north on I-75 on a weekend, on winter weekends youll see people towing their snowmobiles on a trailer and on summer weekends youll see them towing jet skis and boats. Pickups and SUVs are still best for towing those things.

Reuters: With the SUV market, it was kind of a captive market for the U.S. carmakers. With crossovers, is it a lot more competitive?

DeMatio: Absolutely. And once again, with crossovers, the Japanese beat Detroit and now Detroit s playing catch up. I mean theyve had some vehicles, but GM is only this year releasing the triplets: the GMC, Saturn and Buick crossovers, which look to be very competitive. But Acuras had the MDX for years and Hondas had the Pilot and Toyotas had the Highlander, Mercedes has had the ML.

Reuters: So are you encouraged by the U.S. automakers’ efforts to catch up?

DeMatio: Its certainly encouraging for General Motors. They seem to be getting their design vibes together. With Chrysler, the 300 was such a big hit we were hoping that their next car lines would match that excitement, and they havent even remotely. The new Sebring that came out this fall was a styling disappointment to say the least. It has nowhere near the cachet or the bling or any of the street cred of the 300. Its a big, big disappointment. Chryslers truck line is aged and it doesnt have a lot in the way of crossovers. So theyre still keeping their eggs in the minivan basket with the new minivans they debuted here, which look good and solid.

Reuters: Anything thats caught your eye here at the show?

DeMatio: The Lincoln MKR concept (pictured left, courtesy of Automobile magazine Web site) and the Ford Interceptor have a lot of appeal. Theyre a little late to the game. Its a bit of a Chrysler 300 look. But thats the best thing Ive seen from Lincoln in the past several years. So that gives me hope for the Lincoln marque.

Reuters: How about the Focus and 500?

DeMatio: Those are positive signs for two cars that were stale; very big improvement on the 500. They gave it some chrome. They gave it the three-bar strong face grill that is quickly becoming Fords new face and I think its an effective look for them.

(PHOTO: Reuters)