
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)