Picture Gallery: 2007 Saturn Aura XR
Day 1:
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My test model is a loaded Saturn Aura XR sedan. My first impression of this vehicle included thoughts like, “Wow, this is a Saturn?” and “Ummmm, not so sure about that leather.” The last Saturn I test drove was a 2006 Saturn Ion Coupe; let’s just say that if Saturn was not a division of General Motors, I would be completely mystified how this company could accomplish such a large leap in styling and build quality in such a short time frame.
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Also included in the XR Premium Trim package, with which my tester is equipped, are leather-appointed seats with embossed seat inserts with seat heaters and an eight-way power adjustable driver’s seat and six-way power two-way manually adjustable passenger seat. Also included is a power tilt/sliding sunroof which, unfortunately, will not see the light of day under the ice shield that’s currently covering Ottawa.
After three weeks’ worth of vehicles requiring premium fuel and with the holidays fast approaching, my wallet is thanking GM for the fact that the Aura requires regular 87 octane fuel. Having stepped out of the height of luxury last week, I have some work ahead of myself to ensure a fair and proper judgment of the Aura this week.
Then again, at $35,700, this Saturn is anything but “cheap”.
2007 Saturn Aura XR
MSRP as tested: $35,700
For more information on Saturn and the Aura visit Saturn Canada
Updated December 6th 2006
Day 2:
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You see, people know I test cars (well not all, but some) and they know I have a new car each week, so often I get asked what I’m driving. Typically after the initial question and answer I get something like “Cool, how do you like it?” or “What’s that? or even “Nice car!” as I did last week with the IS350.
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I’ve been asked what am I driving a few times this week and, of course, I reply with “Oh, the new Saturn Aura.” But unlike the usual responses they have been rather … disconcerting. “Oh Sorry.”, “Oh”, “Can you get the Lexus back?” and my favourite so far, “Oh… I don’t like Saturn … I liken them to K cars from the ’80’s”. OUCH. I try to explain that the plastic panels are gone and this is not the Saturn of … well, last year. Even these explanations are still received with a blank face and the feeling that all interest faded when I said “Saturn.”
That is very unfortunate. This new Aura is really a step up and into an entirely new realm. It seems that most of the comments on the blog are positive, which is a good sign for GM. But it does seem like they have a little more work ahead of themselves to convince the general populous of this change for the better.
The interior of the Aura really highlights GM’s platform sharing and shows that both Saturn and GM are improving immensely. The dash layout and controls look like they were pulled right out of a Cadillac and although I’m not much of a fan of fake wood, it seems to work well enough.
The rear seats are hollowed out, giving you amazing leg room in the rear, unlike the IS350 I drove last week, where those back seats were good for kids on short city jaunts only. The structure and rigidity of the Aura feel worlds above any Saturn I have ever driven and as a whole the car feels tight and well built.
My only major concern right now as I contemplate this Saturn in my mind is its price. At $35,000, GM gets back into competing with itself. Buick makes an excellent vehicle and so does Cadillac. It seems to me Saturn is still trying to find an identity and a target market - something it needs to do quickly, before it suffers the same fate as Oldsmobile.
Updated December 7th 2006
Day 3:
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Maybe I’m wrong, and maybe Saturn was not going for sporty at all, but paddle shifters behind the steering wheel signify to me they were at least trying. Unfortunately, they failed miserably at the sporty thing. I have never driven the European counterpart on which the Aura is based so I cannot say for sure if Saturn simply removed the sportiness from this vehicle or if it never had it to begin with.
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The Aura, as it turns out, will do what most GM vehicles have done amazingly well for many, many years, which is cruise down a long straight highway for hours on end while getting reasonably good fuel mileage and pampering your behind with a quiet and soft, cushion-y ride. Just don’t try to stop or turn, please.
The paddle shifters are all wrong. Why they chose to be different and put the “minus” or gear down on both sides with the “plus” or gear up as a push button is beyond me. The system is totally unresponsive as well, although honestly, most are anyways. The real kicker to me are the brakes and steering.
The brakes are uninspiring; scary actually. At first, I was afraid I would never stop. I have gotten used to them, although they still feel completely muted. The steering feels muted as well. It is tight and certainly not overly over-boosted, but still completely dead as far as feel is concerned. It seems as though someone at Saturn decided sporty meant firm steering and firm brakes, so they simply reduced the power assist and voila, done.
I’m not saying the Aura drives horribly. I’m just saying it is very far from engaging. As a highway cruiser it is incredible, actually: quieter than the Lexus IS350 I had last week. Probably one of the quietest vehicles I have had for a tester in a while. GM has that aspect nailed, but if Saturn is meant to be unique, why not make it so?
Updated December 10th 2006
Day 4:
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The Aura, though, really is a superior product to anything Saturn has offered before. When some of the nay-sayers had a chance to see the Aura for themselves, their view changed and they became more receptive to the vehicle.
As a mid-sized sedan competitor, the Aura is worthy of consideration when shopping the segment. The Saturn provides a less sporty driving feel, although highway comfort is remarkable and if cruising on family trips is your primary mode, it excels.
Fuel mileage is not stellar from the 3.6L engine in the city: I averaged 13L/100km over the week. When I did take it onto the highway, where the engine turns around 2000rpm at or above 100km/h, the six-speed transmission allows for excellent highway fuel economy.
There is still room to improve for Saturn. Some of the interior bits do not fit together perfectly and some odd noises were heard emanating from the engine on cold mornings. For those who hate traditional vehicle shopping the Saturn service and sales experience apparently makes the process easier. Some love this process, some hate it, but the company has ensured this process has not changed with Saturn’s new vision. Any pre-conceptions you may have of Saturn should be forgotten as the 2007 Saturn Aura is a major step forward for the brand.
*Rating out of 5:
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*Rating based on vehicle’s classification
2007 Saturn Aura XR
MSRP as tested: $35,700
For more information on Saturn and the Aura visit Saturn Canada
December 13, 2006, 10:28:56 am
And to add about pricing on the Aura to the Accord to the Camry with "similar features" (you have to add a bunch to match the Aura not including 18" alloys that are not available on the Honda) the price of an Accord without Navi is $38,400. A Camry is $41,835 including 18" wheels but not the tires which you have to pay extra for. The Aura is $35,500. Check it out and if I am wrong correct me.
THe Accord EX-V6 is $34,200 and Camry SE V6 package is $36,945(form their canadian websites). Where did you get your prices from?
The pricing comes from the Canadian Websites as well but from their "build section" as you have to add a bunch of equipment to match what comes on the Aura. I used the Camry XLE which has leather and an Accord EX with Leather and an Aura with Leather and all options added except a panoramic sunroof. The Aura I used also has a sunroof, 6 disc changer, built in garage door opener, remote starter, MP3 player, xm satellite radio, 18 inch wheels, leather steering wheel, and leather shift knob. These items have to be added or are not even available in the Accord or Camry. I have included shipping costs as well.
For your info, starting price of a regular Aura XR without options is just a bit over $32,000 including shipping and that still includes 18" wheels, 6 disc changer, rear wireless headphones and audio controls, front heated seats, remote starter, and xm satellite radio not to mention Onstar which is generation 7.1 so it includes the ability to subscribe to turn by turn navigation. Considering that a Nav system costs $2500 on an Accord and $2705 on a Camry the $149 upgrade for the first year and the just less than $50 a month after that for all features of Onstar like possibly saving your life; it will take a long time to match the initial cost of a regular Nav system. Of course you will need an Nav Map Update DVD every year which is at least $199 to $300 if you want to be current. Turn by turn is always current and never needs upgrading as the information is downloaded to the vehicle itself.
Just let me mention the paddle shifters in a Bob Newhart type of way. "So you say you have to take your hand off the wheel to make the car go faster and also to help it slow down- to change gears? And depending on which country this could either be your left hand or your right hand? Plus you have to use your left foot as well and your right foot in this operation and some people use their right foot to brake at the exact same time they need to touch the accelerator when slowing down before turning all the while they only have one hand on the steering wheel? Or I can have it where I can use one hand to shift down and the other hand to shift up and I do not need to use but one foot for braking or accelerating? And on some cars these controls are not on the steering wheel? Or I can use either hand for upshifting or downshifting depending on the circumstances? Hmmm, seems to me I should call a taxi as it all seems too dangerous to me, especially that first one" It all comes down to what a person gets used to.
Cosidering we are talking about cars with radio control, cruise control, wipers, Nav Systems, and many other buttons and levers all over the place I think we all need to put things in perspective here. There is no perfect solution. I drive a huge number and variety of cars every year. I need to adjust myself to each one in a short period as I have no choice. It is all a matter of getting used to something as long as it isn't dangerous or painful I do not think we really need to overly complain.
That is the gist of it all. One persons opinion is just that an opinion but it isn't more important than the next person. Like I said before. There are people who have the ability due to their job or just being more well known to influence others. Such as a car reviewer or a movie critic or a "you name it". When personal opinions are taken as fact that is not good. But that is the way it is in this world. When a person asks me how good the fuel economy is I show them the ratings because most people are visual, then I mention the comments I get from my customer's for that vehicle and the competition if I know that as well, then I say it really comes down to who is driving and how they drive with a joke thrown it that I personally wouldn't by nature get very good fuel economy. That person will be able to make up their own mind as a result. My opinion isn't expressed but my knowledge has been truly helpful.
The scary part about it being cars and trucks that we talking about here is because people make this decision usually once or twice in a number of years. They need to be objectively informed. It isn't a movie or a restaurant where you spend a few dollars here or there and do it once in a while. Vehicles are everyday items that we spend a huge amount of our time in and our income on. They deserve more attention to the facts than a movie review. It is unfortunate that many, too many people because of their lack of time have to cut their shopping lists down before they even visit a dealer. Many good vehicles get overlooked as a result. So if I see an opinion listed as a fact I am more than happy to point it out and call it for what it is.
December 13, 2006, 10:42:46 am Out of all that I got "I want to read FACT reviews"
Therefore I point you to a "fact review" of the Aura.
http://www.gm.ca/ss/english/vehicles/saturn/aura/aura_options.jsp#Specifications
December 13, 2006, 10:58:14 am Well put Nimbus......many if not MOST folk...buy on what?....a perception of what they need.....influenced by media,ads,neighbours,friends,workmates etc....so they have a jumble of ideas floating UP THERE and suddenly a quick RUSH of BLOOD to the HEAD......(a bonus,pay raise,angst, whatever) fuels the NEED for a new CAR..they tend NOT to stray too far in the most part from their previous purchase(s) (lottery winners and V Wealthy excepted)..and Loyalty to a brand does play a part so they MISS MANY A BETTER VEHICLE FOR THEIR NEEDS than they KNOW.
If they could take a few months to clearly look at the available cars and test drive many and reduce it to a few candidates and then RENT them each for a week(if possible)or at least take them overnight for a comprehensive testing...all the family in it...short trips...longer trip...at the parking lot in rushhour etc.....BUT lets' face it most just buy the top 10...and are happy enuf anyway........SHRUG
December 13, 2006, 11:02:55 am
Therefore I point you to a "fact review" of the Aura.
gm.ca/ss/english/vehicles/saturn/aura/aura_options.jsp#Specifications
Nice one Wing. It is good to see you have a sense of humour because I hope you aren't getting offended. That isn't my purpose. It isn't like I said you need to improve or did it seem that way. Well it is just my opinion anyway. Shouldn't matter. Right?
December 13, 2006, 11:58:25 am
Therefore I point you to a "fact review" of the Aura.
http://www.gm.ca/ss/english/vehicles/saturn/aura/aura_options.jsp#Specifications
The Colour & Wheels section actually has good colour representation for a change
Saturn doesn't have as many retailers as other brands, but I've seen quite a few on the streets already so I'd say they're off to a much better start than in the past with their mid-sized L. The LED tail lights caught my eye and the chrome looks good with streetlights shining on it at night.
Nimbus, I take it you're in sales? What manufacturer, if not for Saturn?
December 13, 2006, 12:02:51 pm
Therefore I point you to a "fact review" of the Aura.
gm.ca/ss/english/vehicles/saturn/aura/aura_options.jsp#Specifications
Nice one Wing. It is good to see you have a sense of humour because I hope you aren't getting offended. That isn't my purpose. It isn't like I said you need to improve or did it seem that way. Well it is just my opinion anyway. Shouldn't matter. Right?
No offense taken Nimbus, everyone has opinions and all are valid, we can agree or disagree and that's how the world turns.
December 13, 2006, 12:16:31 pm Big difference I see is that wing isn't trying to sell any one make, he's asked to drive it and offer his OPINION on it. That's what reviewers do, review what they are given. His personal views are just that, and play a role in how he determines what the likes are, and what the dislikes are. I like this sort of information....and I take it with a grain of salt. It's up to the consumer to decipher all the information, including the spec sheet.
The Aura looks to be a lot better product than some of that stuff Saturn used to sell...is it enough to match up with the Camry and Accords...not to mention the Sonata, 6, Altima etc? Sure you get more for your buck, but what you get must still be good and high in quality and reliability. Getting more in a product is meaningless if the content doesn't hold up.
What's the marketing campaign for this vehicle? Besides those cheesy 'mixups' by delivery drivers etc? I haven't seen an ad to promote this product....but then maybe Saturn just wants to avoid influencing the buyers.
December 13, 2006, 12:46:18 pm
December 13, 2006, 12:56:42 pm I've seen TV ads, but think they're from the US. Might be wrong.
"There is a way/car..." (whatever it is). Not a bad ad.
December 13, 2006, 03:11:30 pm
Why compare a XLE Camry with a Aura XR? What XLE buyers are going to seek 18 inch wheels as the OEMs are 16 inch? Who wants a panoramic sunroof that when open looks like a winged avenger? The closest Camry to the XR is the SE V6 C package. Which is $36,945. MSRP
The fact remains that ppl will only buy these GM cars with an inducement, be it low financing rates, GM points, or GM employee family discount. So far one person has announced on this site that he went ahead with the purchase and then reveals that he had a GM employee discount and GM points. These cars are still the sum of it's parts and GM has made a mission of contracting the cheapest parts possible. In addition many of their suppliers are in Chapter 11 and that can't be good for quality when ppl building these GM parts know that soon they will be working for a third of their previous wages.
December 13, 2006, 08:56:18 pm You have a point when mentioning the SE V6 instead of the XLE so I priced one out. When I added the remote starter and XM Satellite Radio with package B for the 2007 model as there wasn't a package C listed the price is $39,795. Yeah forget the 18" wheels, who cares if they are on the Aura and not on the Camry. Still costs extra to get them on the Camry though no matter what someone says. So I left them out.
You also forgot to include shipping in your price because you still have to pay it. So for $4,000 more you can have a Camry. For payment the Camry is $794.11 a month for 60 months while the Aura is $683 including taxes and fees. For a 24K lease where resale value and reliability doesn't really matter here is the result for 48 months. Camry $678.72 and the Aura is $562.67 taxes in. I haven't included the Wish and Win discount either which drops the payment down another 8 bucks or so for the minimum for both lease and finance. This is Alberta so no Provincial Sales Tax. So you have the privilege of spending an extra $5570.40 for a 4 year lease on a Camry.
I won't comment on cheap parts because many of the suppliers to the Toyota plants are also suppliers to GM because of the proximity of the factories to each other. But it will take time to prove good or bad the reputation of the Aura. No doubt about it.
December 13, 2006, 11:37:49 pm Articsteve has years of NO experience with GM products yet he seems to know all about them and likes to downgrade them at every opportunity he gets on here. To me if he had any recent GM ownership experience then he would be up to date on their products and not just speculating on what he has heard. He would certainly have some credibility on their products then.
December 14, 2006, 12:46:32 am
You keep pushing the XM radio and 18" rims. 99% of the people that are looking to buy a Camry, Accord or Aura don't really care about these features.
December 14, 2006, 08:46:14 am
You also forgot to include shipping in your price because you still have to pay it. So for $4,000 more you can have a Camry. For payment the Camry is $794.11 a month for 60 months while the Aura is $683 including taxes and fees. For a 24K lease where resale value and reliability doesn't really matter here is the result for 48 months. Camry $678.72 and the Aura is $562.67 taxes in. I haven't included the Wish and Win discount either which drops the payment down another 8 bucks or so for the minimum for both lease and finance. This is Alberta so no Provincial Sales Tax. So you have the privilege of spending an extra $5570.40 for a 4 year lease on a Camry.
I won't comment on cheap parts because many of the suppliers to the Toyota plants are also suppliers to GM because of the proximity of the factories to each other. But it will take time to prove good or bad the reputation of the Aura. No doubt about it.
When I added the remote starter and XM Satellite Radio with package B for the 2007 model as there wasn't a package C listed the price is $39,795.
OK, lets stop adding features to the Camry that are not available such as remote start and XM radio and on the flip side I won't add bluetooth and a full sized OEM alloy wheel and tire (a small fortune) to the Aura XR. Both have leather, sunroof, V6, heated seats, the usual crap. Having said that, the Camry SE V6 B package (my bad earlier) and you still have a msrp of $36945. As for freight and PDI scratch that because there is 3K in margin on that Camry so anybody with a spine is going to get this unit for $37K. Too expensive for me though.
For payment the Camry is $794.11 a month for 60 months
NO.
Purchase $36945 @ 4.9% for 60 mths is $695.51
48 mth Lease @ 5.9% is $575.71
Taxes extra
Aura XR purchase $34940 which is 2K less than Camry SE, not 4K. Unfortunately, GM site not listing financing rates.
So what does one do? I know what I would do.
As for a lease on a Aura XR, I personally could only sleep at night if the warranty was a 4 year bumper to bumper.
I won't comment on cheap parts because many of the suppliers to the Toyota plants are also suppliers to GM because of the proximity of the factories to each other
You need to expand on that statement. You and Barrie been talking.
December 16, 2006, 02:17:34 pm The fact remains that ppl will only buy these GM cars with an inducement, be it low financing rates, GM points, or GM employee family discount. So far one person has announced on this site that he went ahead with the purchase and then reveals that he had a GM employee discount and GM points. These cars are still the sum of it's parts and GM has made a mission of contracting the cheapest parts possible. In addition many of their suppliers are in Chapter 11 and that can't be good for quality when ppl building these GM parts know that soon they will be working for a third of their previous wages.
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articsteve come on - your serious that GM is the only company on the earth that wants to keep its part costs down? Just apply a little common sense and you'll see all businesses want to get the cheapest parts possible.
But since you won't agree with me, I demand proof of your statement that 'These cars are still the sum of it's parts and GM has made a mission of contracting the cheapest parts possible'
I want you to show that the parts GM uses are in fact inferior to other parts used on other cars by other car companies.
Examples please.
Oh and by the way, if you re-read what you wrote above, you actually prove yourself WRONG. WHY? because the whole reason both Delphi and Visteon - GM and Ford's largest suppliers (and just to add a little background - because I am convinced you know nothing Car related - they were actually spin off companies from Ford and GM) are in Chapter 11 is because their costs are so great that their parts are MORE EXPENSIVE to produce relative to cheap suppliers who use non-union employees.
Proof please or do not use the word FACT when you should use the word OPINION.
December 16, 2006, 06:50:26 pm Toyota > GM.
That is all.
December 16, 2006, 09:33:54 pm
articsteve come on - your serious that GM is the only company on the earth that wants to keep its part costs down? Just apply a little common sense and you'll see all businesses want to get the cheapest parts possible.
But since you won't agree with me, I demand proof of your statement that 'These cars are still the sum of it's parts and GM has made a mission of contracting the cheapest parts possible'
I want you to show that the parts GM uses are in fact inferior to other parts used on other cars by other car companies.
Examples please.
Oh and by the way, if you re-read what you wrote above, you actually prove yourself WRONG. WHY? because the whole reason both Delphi and Visteon - GM and Ford's largest suppliers (and just to add a little background - because I am convinced you know nothing Car related - they were actually spin off companies from Ford and GM) are in Chapter 11 is because their costs are so great that their parts are MORE EXPENSIVE to produce relative to cheap suppliers who use non-union employees.
Proof please or do not use the word FACT when you should use the word OPINION.
Its four and six-cylinder powertrains have proven reliable but there were some other reliability issues, says Chris Chase. He recommends "getting the best price you can to offset the possibility of future repairs."
http://www.canadiandriver.com/articles/cc/04-06malibu.htm
"getting the best price you can to offset the possibility of future repairs."
That sums up GM vehicles today after years of incompetence, neglect, management greed, union greed.
Derick; I am sincerely sorry that despite all the discounts, your recent GM new vehicle purchase is worth less than you owe on it. Better purchase next time.
December 16, 2006, 10:31:35 pm heres a post from a member from a previous discussion about gm and imports..
"ArticSteve is correct....I'm an auto engineer, and have dealt extensively with those in the industry. Nearly everytime we have a discussion about a part with a domestic builder, they say "this part/process has to be cheaper". Period. The domestic are absolutely loathed by the parts suppliers and tier suppliers alike. When we talk to the Japanese builder they say: "this part has to be better while maintaining cost". Big difference. In one instance that I am aware of, the supplier believed they would be unable to improve product while maintaining cost. They would have had to hire more engineers. Instead, the manufacturer "loaned" several engineers free of charge to the supplier to help them meet the goals.
Further, we had a Cadillac part (which I showed to Wing when he visited one of the shops with me) which Cadillac decided to have built in China (which the Big 3, but especially GM seem to be doing plenty of. Yet they tell us to buy domestic, right?) While China has cheap labour costs compared to us (Chinese labour "shop rate" is about $12/hour compared to about $65/hour for our Canadian shops) their level of skilled trades isn't even remotely close to ours. Mainly because they have been making trinkets for the last 50 years, not specialized skilled trade type products. At any rate, the Cadillac part was so poorly made, that GM contacted us to repair it, and the repair bill from us exceeded the initial cost of the tool itself!! I can't be sure how many poorly make products slip through the GM QC process. But because this tool cost twice what it was supposed to, that means GM will be cutting corners somewhere else to recoup this cost.
Acura and Lexus are both very, very picky about their parts. I recall Lexus scrap policy was a mere 10 parts per 100,000. If 10 were bad, the entire lot was scraped. They've often visited the shop while the tool is in progress to see how it is going. We never see people from the Big 3 drop by to check progress...they usually drop by to complain about cost. In addition, Nissan makes regular trips to shops, not to check on any specific job in progress, but to make sure the shop is still up to their standards for cleanliness and functionality.
Most people think I'm just hating on the Big 3. It because I work closely with them, and I know how stuff is done and how corners are cut at their behest. Their quality can't match that of the imports.
December 17, 2006, 11:46:44 am OUCH!!!! and what are the ODDS of this changing SOON...with the desperate FINANCIAL BURDENS on the Big 2.5...
December 17, 2006, 01:12:59 pm Interesting.
December 17, 2006, 09:39:34 pm echo7 that is all very interesting and all, but where is the proof that GM parts are inferior compared to the parts Toyota uses? You yourself write "I can't be sure how many poorly make products slip through the GM QC process". So not even you are truly sure.
In fact your example just goes to show that GM is interested in getting it right - regardless of cost - rather than having an issue down the line, right?
articsteve what are you on about now? because again you can find no proof of your ill informed 'facts' you change the subject and talk about resale value? come on. Let me ask you a question, does resale value include carrying costs of leasing or financing?
December 20, 2006, 11:40:38 am It comes down to several undeniable problems within the domestic manufacturers. They have a very heavy burden to bare. Their vehicles will always cost alot to build. Even though their quality is pretty close to the Asian Import brands there is an uphill struggle to deal with. For example according to the 2006 Harbour Report there is a distinct cost advantage for the Imports:
Quote: "What does productivity mean to the bottom line? According to the report, Nissan enjoys a cost advantage of as much as $450 per vehicle over its less-productive competitors. Another financial statistic is the pre-tax profit per vehicle for each of the manufacturers, which Harbour said resulted in GM losing $2,496 on every vehicle produced in North America last year, while Ford lost $590 and DaimlerChrysler managed to eek out a $223 profit on each vehicle. The rest were raking in the dough as Honda recorded an average profit of $1,215 per vehicle, Toyota threw $1,587 in its bank account for each car produced and Nissan built its balance sheet to the tune of $2,249 for each vehicle produced in the region."
Additionally "Quality problems add to the U.S. automakers' competitive disadvantage, Royal Oak, Michigan-based Harbour-Felax Group said. Toyota spends $348 per vehicle on warranty costs, compared with more than $500 each at Detroit-based GM, Dearborn, Michigan-based Ford and DaimlerChrysler AG's Chrysler unit.
U.S. automakers spend as much as $138 more per vehicle on longer vacations and holidays and up to $70 per vehicle on unscheduled absenteeism, Harbour-Felax said.
Japanese automakers provide workers with an average of 30 minutes of break time each day, costing $133 per vehicle, while GM, Chrysler and Ford provide 46 minutes at a cost of $203 per vehicle, she said.
Retiree Costs
Toyota spent $215 per vehicle on health care for active workers and has only a handful of retirees at its North American factories, which it began building in 1986. Last year, GM had to make pension payments to 337,588 retirees and surviving spouses. GM spent $1,120 per vehicle for retiree health costs last year and $515 for active workers." (from Bloomber.com)
In spite of this dire news GM seemingly is digging itself out of the hole they are in, and I do see it happening with its new products. I think the import brands are in for a surprise when GM gets efficient. Considering the progress they are making with the huge barriers they face.
Another surprising figure for me from the report is that Toyota warranty costs are pretty close to the domestics. Less than $200 apart. That is 50% more for sure but by the way arcticsteve talks you would think that it would be several thousand dollars. And it does prove that Toyota (which is the quality leader by the way) isn't perfect and that the service departments at their dealers aren't only doing oil changes.
What do we take from all of this? Well I do know that Denso which is the parts arm of Toyota is gaining contracts for domestic manufacturers (one of the suppliers to the Saturn Aura-Automotive News) and Delphi provides parts to Toyota (Automotive News). As we can see from warranty costs there is a $200 advantage to Toyota with "Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. persuaded buyers to pay an average $24,289 per vehicle, 12 percent more than U.S. automakers" All figures American (Bloomberg.com). That is less than 1% of the average selling price of the vehicles. A very small figure. I would say the hype and accolades for quality don't add up to much of an argument.
And finally, I would like to mention something about resale value. I will use Toyota as an example. Currenty a used 2006 Toyota Corolla Sport with the package B with an MSRP of $25,200 is selling for $19,700 on a local Toyota dealers lot with other models having similar price drops. Most shoppers do not realize that Toyota, Nissan, and Mazda have many cars in rental fleets. I am seeing more and more of them. The 2006 model seems to be hit the hardest by this. Since domestics sell for less with better incentives, interest rates and pricing there is of course going to be lower resale values. What is the cost advantage to the Corolla? Well if you spend on average $3,000 more to get one in terms of MSRP and then spend on top of that an extra $1,000 to $2,000 on interest and get an extra and I am exaggerating here- $4,000 for resale value in 5 years you are not further ahead at all but it took 5 years to get there. With more and more Toyota's and imports going to the rental fleets their resale values will drop as a result. If someone wants to pay the same for a 2004 model as a 2006 model they are kind of dumb are't they? It kind of illustrates the blind attitude the strong Import promoters have. It sounds like they are the worst suckers out there- hey I have a bridge in San Francisco that I want to unload, any takers?
With more cars out there the prices will tumble and are. Of course there is the negotiation factor. With Toyota there isn't the benefit for much negotiation. With too much negotiation the resale values drop as well. I know for a fact that here in Calgary most Toyota's sell within $1,000 of MSRP due to Toyota Canada's Access Toyota pricing and selling policy. Saturn's are 99% of the time selling for full MSRP. Import salespeople use their resale advantage to help sell their vehicles compared to the domestics and why they do not negotiate as much as Ford or GM or Chrysler.
Yes there are cars that suffer much worse than my illustration but they are heavily available in the rental fleets and show up on dealers lots in the hundreds. Chrysler anyone? It is well known that GM and Ford are cutting back their shipments to the rental companies and guess who are filling in the gaps? Yep, you guessed it.
January 02, 2007, 06:13:00 pm
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Saleman said someone trade an A6 on a Aura
Wing - you mentioned in your Day 3 summary about driving characteristics of the Vectra (Aura's European variant). It's designed primarily as a fleet car for the most part. People who buy consider the likes of the Ford Mondeo and Toyota Avensis - both of which are quiet, good cruising vehicles but not terribly performance oriented. I agree with your thoughts on those stupid paddle-shifters - what are manufacturers thinking??? You don't make a family sedan F-1 like just by slapping on paddles behind the wheel - cheese loo-eeze!
I beg to differ on your comment that the Mondeo is not terribly performance oriented. The Mondeo has very good credibility in Europe as far as hard to match dynamics in the family sedan segment. For that matter Ford of Europe is well known for producing drivers cars "so to speak".
It would be very interesting to read what changes GM made to the Vectra/Aura(beside visual) , to make it "suitable for North American tastes".
In Europe the Vectra has very good credibility as well for its Dynamics.
I'm with MKII on this one - Ford Mondeo was sold here for a few years as the Ford Contour and Mercury Mystique. My 98 Contour is suprisingly quick and handles great (no, really). Looking to replace it now but I haven't found anything short of a BMW 3 or G35 that will outhandle it.
Btw, I will be test-driving an Aura for the Calgary newspaper in a few weeks, so I will let you know what I think of it. I've driven the G35 (though not 07) and Cad CTS 3.2 and 3.6 (worlds apart) that have drawn comment in this thread. I may try to size up some other Aura competitors before the test drive...Accord, Camry, Altima, etc. for the sake of direct comparison. Putting it up against a real sports sedan would just be unfair.
January 02, 2007, 08:36:28 pm Hey SwivelMan
Welcome
January 06, 2007, 08:13:05 pm More GM badge-engineering. This thing looks like a warmed-over Impala to me.