The IRL is at the Milwaukee Mile - the oldest racing facility on the circuit (the track - in various forms - has been around since 1876 and auto racing was first held on the horse track dirt surface in 1903).
This is a great segue from the huge facility that is the Indianapolis Motor Speedway. The leaders end up passing back markers within 30 miles of racing! This is great racing and it's fun to watch the jockeying of cars as they try to keep competitors at bay while passing the slow folks.
Sunday, May 31, 2009
Mike Lawrence on F1
Mike Lawrence is a British author and reporter of the F1 scene. There's got to be some of his stuff in my library - juxtaposed amongst the Posthumus, Pritchard, Pomeroy, Boddy, and Setright. He has a wonderful set of random thoughts up at the PitPass site that I highly recommend taking the time to read if you are a fan of Formula 1.
The biggest chuckle I got out of it was his explanation of Ferrari's woes this season. He wrote, "I did warn that, having got rid of adult supervision, in the persons of Brawn and Todt, Ferrari would revert to being Italian. It has become Scuderia Shambles, its natural default."
Here's the link.
The biggest chuckle I got out of it was his explanation of Ferrari's woes this season. He wrote, "I did warn that, having got rid of adult supervision, in the persons of Brawn and Todt, Ferrari would revert to being Italian. It has become Scuderia Shambles, its natural default."
Here's the link.
GM Bondholder Agreement
The New York Times is reporting that GM bondholders have reached an agreement on restructuring their debt stake. Currently there are $27 billion in outstanding bonds. For that outstanding debt, the restructuring will offer a 10% equity stake in GM with an additional 15% available through warrants (a financial instrument allowing the holder to purchase stock at a later date for a 'fixed' price - hopefully the value of the stock goes up sufficiently to make the warrants valuable - much like a stock option).
Here's where the math gets interesting. There are about 600 million shares of GM stock outstanding, 10% of that is 60 million shares. The closing price for General Motors on 5/29 was $0.75. So without the future prospect of exercising warrants, the value of the 10% stake is about $45 million. Talk about a BAILOUT - GM wipes out $27 billion in debt for $45 million. And talk about taking a bath - the only way a bondholder could have gotten off worse would be to have invested in one of Madoff's schemes. ; -)
I'll say it again - if you have a company with a unionized work force, that may some day find itself asking this government for help, have fun trying to raise capital by issuing bonds.
Here's where the math gets interesting. There are about 600 million shares of GM stock outstanding, 10% of that is 60 million shares. The closing price for General Motors on 5/29 was $0.75. So without the future prospect of exercising warrants, the value of the 10% stake is about $45 million. Talk about a BAILOUT - GM wipes out $27 billion in debt for $45 million. And talk about taking a bath - the only way a bondholder could have gotten off worse would be to have invested in one of Madoff's schemes. ; -)
I'll say it again - if you have a company with a unionized work force, that may some day find itself asking this government for help, have fun trying to raise capital by issuing bonds.
Friday, May 29, 2009
The Starting Lineup
It's almost summer and the sports pages (Web and newsprint ; -) are chock full of baseball. So how does baseball have anything to do with cars, beyond the old Chevrolet ad campaign, 'Baseball, hot dogs, apple pie, and Chevrolet'?
Well, the heart of a car companies product lineup is analogous to the first four spots on a baseball team's batting order. You need an 'on-base' batter to lead off, a decent percentage hitter in second and third spots, and a power hitter in the cleanup spot.
For car companies that equates to a good compact and mid-size sedan, a mid-size SUV, and a full size truck.
Ford has a decent entry product, the Focus which compares favorably with Toyota's Corolla and the Chevy Cobalt. The Cobalt is a good product - much better than its predecessors - but the Corolla is the All-Star.
The Chevy Malibu is the first mid-size GM sedan in a long time that has the attention to detail in the interior that is needed in this segment. It's a very good product that anyone could use in their lineup. Ford's Fusion is good but the Camry is the gold standard.
The Toyota Highlander is as good a mid-size SUV as a product planner could hope for. The Explorer the aging 'slugger' and the late Chevy Trailblazer (gone now - replaced by the Traverse) the 'Roy Hobbs' of the bunch (it should have been a contender - especially with the creamy smooth in-line six cylinder GM did for that truck).
Cleanup hitter, Ford's F-150 - the best of the bunch, with the Silverado and Tundra playing catchup. Ford has managed to keep the F series at the top of the sales charts and is a big reason it is still healthy.
Now where does Chrysler's product fit. What's their Corolla equivalent, the Sebring? Nope that's the Camry fighter - but it's a minor leaguer compared to the rest. Medium sized SUV, the Dodge Durango - well check the interior out on that truck. And finally the Ram, a good product but an also ran - never getting any All-Star votes.
Notice also the first four slots for Chrysler are across two brands. Could this be why Chrysler couldn't make it? It's all about product.
Well, the heart of a car companies product lineup is analogous to the first four spots on a baseball team's batting order. You need an 'on-base' batter to lead off, a decent percentage hitter in second and third spots, and a power hitter in the cleanup spot.
For car companies that equates to a good compact and mid-size sedan, a mid-size SUV, and a full size truck.
Ford has a decent entry product, the Focus which compares favorably with Toyota's Corolla and the Chevy Cobalt. The Cobalt is a good product - much better than its predecessors - but the Corolla is the All-Star.
The Chevy Malibu is the first mid-size GM sedan in a long time that has the attention to detail in the interior that is needed in this segment. It's a very good product that anyone could use in their lineup. Ford's Fusion is good but the Camry is the gold standard.
The Toyota Highlander is as good a mid-size SUV as a product planner could hope for. The Explorer the aging 'slugger' and the late Chevy Trailblazer (gone now - replaced by the Traverse) the 'Roy Hobbs' of the bunch (it should have been a contender - especially with the creamy smooth in-line six cylinder GM did for that truck).
Cleanup hitter, Ford's F-150 - the best of the bunch, with the Silverado and Tundra playing catchup. Ford has managed to keep the F series at the top of the sales charts and is a big reason it is still healthy.
Now where does Chrysler's product fit. What's their Corolla equivalent, the Sebring? Nope that's the Camry fighter - but it's a minor leaguer compared to the rest. Medium sized SUV, the Dodge Durango - well check the interior out on that truck. And finally the Ram, a good product but an also ran - never getting any All-Star votes.
Notice also the first four slots for Chrysler are across two brands. Could this be why Chrysler couldn't make it? It's all about product.
Thursday, May 28, 2009
NHRA in Topeka
Big time drag racing's traveling circus takes the show to Heartland Park this weekend (Topeka, KS).
I was pondering on Formula 1 engine power this morning, in particular the notion that they have more power than they can adequately put to the ground at times now. What does that say about the power available to the upper reaches of the NHRA classes, Funny Car and Top Fuel?
Well a current F1 engine is rated at slightly under 800 hp. Or the power of about three-plus V6 Camrys. An NHRA Top Fuel dragster is producing around 8000 hp. A stinking fleet of Camrys. Yeeha!!
While some decry what they see as the simplicity of drag racing (go straight then shut the car down), that mindset misses the preparation, the almost impossible task of putting that much power to effective use, and the sheer violence going on inside the engines.
Anyone, and I mean anyone, who has a driver's license can pilot a car down a quarter mile dragstrip in a time of 14 seconds or above. But there are not many drivers that I'd trust with a car capable of sub 8 second runs.
Unlike land speed records, where top speed is achieved after a fairly lengthy run up to the timed section of the course, drag racing occurs from a standing start. And another oddity of drag racing is that age doesn't seem to be an impairment, either old or young.
For grins, here's an amateur video of top fuel dragsters burning out (to warm up the tires) and then approaching the line for the run. Notice the crew members helping to position the cars to take maximum advantage of the grip on the track.
This isn't an NHRA event, but rather an FIA event held at Mantorp Park in Sweden. Ah, American Graffiti at work in Europe. ; -)
I was pondering on Formula 1 engine power this morning, in particular the notion that they have more power than they can adequately put to the ground at times now. What does that say about the power available to the upper reaches of the NHRA classes, Funny Car and Top Fuel?
Well a current F1 engine is rated at slightly under 800 hp. Or the power of about three-plus V6 Camrys. An NHRA Top Fuel dragster is producing around 8000 hp. A stinking fleet of Camrys. Yeeha!!
While some decry what they see as the simplicity of drag racing (go straight then shut the car down), that mindset misses the preparation, the almost impossible task of putting that much power to effective use, and the sheer violence going on inside the engines.
Anyone, and I mean anyone, who has a driver's license can pilot a car down a quarter mile dragstrip in a time of 14 seconds or above. But there are not many drivers that I'd trust with a car capable of sub 8 second runs.
Unlike land speed records, where top speed is achieved after a fairly lengthy run up to the timed section of the course, drag racing occurs from a standing start. And another oddity of drag racing is that age doesn't seem to be an impairment, either old or young.
For grins, here's an amateur video of top fuel dragsters burning out (to warm up the tires) and then approaching the line for the run. Notice the crew members helping to position the cars to take maximum advantage of the grip on the track.
This isn't an NHRA event, but rather an FIA event held at Mantorp Park in Sweden. Ah, American Graffiti at work in Europe. ; -)
Wednesday, May 27, 2009
GM Headed for Bankruptcy?
Bondholders have rejected the latest offer to restructure their debt in GM. Look for a similar conclusion to this as occurred to the Chrysler bondholders.
On the other hand the UAW settled for a much smaller stake (17.5%) in GM than the proposed 39% they were asking for.
On the other hand the UAW settled for a much smaller stake (17.5%) in GM than the proposed 39% they were asking for.
Tuesday, May 26, 2009
North Korea Immitating a Porcupine?
North Korea effectively tests a nuclear device (possibly an implosion - plutonium fueled - device - or maybe they did an enhanced uranium 'cannon'). Then they fire off a handful of medium range missiles. They are rattling sabers. But why?
To say the North Koreans are bad actors is an understatement, but they are not proselytizing a religion/way of life (unlike radical Islamists or Al Gore ; -). Maybe they are in the throes of the last gasp of the Dear Leader - who wishes to maintain control as his vitality slips away.
Maybe what we're seeing is the first signs of the implosion of the North Korean state. The chaos of that event will be tumultuous.
So what are the options? I'd like to see more DDGs (guided missile AEGIS destroyers) in the neighborhood, and possibly an interdiction of material leaving North Korean harbors - not a complete blockade - but one looking for specific military 'exports'. And, as quietly as possible - no public announcements, an end to all aid to the North Korean regime. The aid is not reaching its intended recipients, the long suffering population, but is merely being used to prop up the existing regime.
The chaos of the disintegration of the North Korean regime will be a tough assignment for the international community. The only 'silver' lining I can think of is that we may have a chance to work closely with China, both diplomatically and militarily, when the chaos does erupt.
To say the North Koreans are bad actors is an understatement, but they are not proselytizing a religion/way of life (unlike radical Islamists or Al Gore ; -). Maybe they are in the throes of the last gasp of the Dear Leader - who wishes to maintain control as his vitality slips away.
Maybe what we're seeing is the first signs of the implosion of the North Korean state. The chaos of that event will be tumultuous.
So what are the options? I'd like to see more DDGs (guided missile AEGIS destroyers) in the neighborhood, and possibly an interdiction of material leaving North Korean harbors - not a complete blockade - but one looking for specific military 'exports'. And, as quietly as possible - no public announcements, an end to all aid to the North Korean regime. The aid is not reaching its intended recipients, the long suffering population, but is merely being used to prop up the existing regime.
The chaos of the disintegration of the North Korean regime will be a tough assignment for the international community. The only 'silver' lining I can think of is that we may have a chance to work closely with China, both diplomatically and militarily, when the chaos does erupt.
Monday, May 25, 2009
NASCAR's Coca Cola 600 . . .
. . . is underway again, after being delayed due to weather yesterday. I'm not a big NASCAR fan, but tend to keep loose track of it.
But, there are a couple of good books I'd recommend to get a flavor of the old and new NASCAR. For the old NASCAR I can heartily recommend Robert Edelstein's biography of Curtis Turner, "Full Throttle: the Life and Fast Times of NASCAR Legend Curtis Turner". Exceptionally well written with a sensitivity to the character of Curtis Turner that I believe ranks high in the pantheon of all the biographies in literature. Edelstein's literary construction of Curtis Turner's reaction to the death of Joe Weatherly is masterful.
For the new NASCAR there's "Sunday Money". As good a sendup as you could wish - in a league with Jim Bouton's, "Ball Four" (though without the author, Jeff MacGregor, being an insider). It is a good outsider's look at the sport that will leave you laughing out loud along the way.
Both books will help NASCAR novices and hard-cores alike.
There is one book that I have mixed emotions about - but will put on the list. It is, "Cheating: An Inside Look At the Bad Things Good NASCAR Winston Cup Racers Do In Pursuit of Speed", by Tom Jensen. There are some good tales spun in the book and they're all true, but I find it lacks some context for the cheating. Leo Levine's, "Ford: The Dust and Glory" (in two volumes), recounts some of the same tales but wraps the cheating into a contextual framework. Just remember the old adage, "If you're not cheating, you're not trying hard enough." ; -)
But, there are a couple of good books I'd recommend to get a flavor of the old and new NASCAR. For the old NASCAR I can heartily recommend Robert Edelstein's biography of Curtis Turner, "Full Throttle: the Life and Fast Times of NASCAR Legend Curtis Turner". Exceptionally well written with a sensitivity to the character of Curtis Turner that I believe ranks high in the pantheon of all the biographies in literature. Edelstein's literary construction of Curtis Turner's reaction to the death of Joe Weatherly is masterful.
For the new NASCAR there's "Sunday Money". As good a sendup as you could wish - in a league with Jim Bouton's, "Ball Four" (though without the author, Jeff MacGregor, being an insider). It is a good outsider's look at the sport that will leave you laughing out loud along the way.
Both books will help NASCAR novices and hard-cores alike.
There is one book that I have mixed emotions about - but will put on the list. It is, "Cheating: An Inside Look At the Bad Things Good NASCAR Winston Cup Racers Do In Pursuit of Speed", by Tom Jensen. There are some good tales spun in the book and they're all true, but I find it lacks some context for the cheating. Leo Levine's, "Ford: The Dust and Glory" (in two volumes), recounts some of the same tales but wraps the cheating into a contextual framework. Just remember the old adage, "If you're not cheating, you're not trying hard enough." ; -)
New Life for the Rotary Engine
Mazda has applied for a patent covering a direct fuel injection rotary (Wankel) engine. The rotary engine has some intriguing properties, it can produce good horsepower from a very small size and it is exceptionally smooth (based on it's rotary motion that doesn't involve the violent 'starting and stopping' motions of the connecting rods in a piston engine).
Number 15 is the direct fuel injector.
For grins, here's an animation of the rotary in motion.
It has two significant drawbacks though. One is it's difficulty in 'sealing' the rotors and the second is it's dicey pollution characteristics/fuel economy. The second problem has to do with the shape of the combustion chamber, a wide shallow space that's moving, that is difficult to do a complete burn of the fuel in. That is one reason each rotor chamber has two spark plugs, one leading ignition pulse and one trailing pulse.
The direct injection could reduce the impact of that problem by keeping the cloud of fuel very close to the ignition source (rather than having it dispersed throughout the elongated combustion chamber as has been the case until now). But it appears that they are injecting fuel before compression, which still leaves a fuel/air mixture to occupy the hard to reach edges of the combustion chamber (hard for the flame front to reach that is). Regardless, fuel economy will improve.
Hat tip to MotorAuthority.
For grins, here's an animation of the rotary in motion.
It has two significant drawbacks though. One is it's difficulty in 'sealing' the rotors and the second is it's dicey pollution characteristics/fuel economy. The second problem has to do with the shape of the combustion chamber, a wide shallow space that's moving, that is difficult to do a complete burn of the fuel in. That is one reason each rotor chamber has two spark plugs, one leading ignition pulse and one trailing pulse.
The direct injection could reduce the impact of that problem by keeping the cloud of fuel very close to the ignition source (rather than having it dispersed throughout the elongated combustion chamber as has been the case until now). But it appears that they are injecting fuel before compression, which still leaves a fuel/air mixture to occupy the hard to reach edges of the combustion chamber (hard for the flame front to reach that is). Regardless, fuel economy will improve.
Hat tip to MotorAuthority.
On Mileage Standards
The recently approved Corporate Average Fuel Economy (CAFE) standards have the automotive world in a bit of a dither. There are some that say the standards are set too high , that we'll end up with tiny (read fragile) cars, or that we'll sacrifice consumer choice.
I don't see it quite that way. For one, the positive news in this set of standards is that the California Air Resources Board (CARB) can no longer, until 2016 at least, apply a more 'difficult' standard than the federal CAFE standard. That is the prize for the automakers. They no longer have to treat California as if it were a foreign market.
As far as the mix of cars are concerned, I suspect that yes, we will see more A and B-class cars (we already have quite a few showing up, the Smart, Yaris, Fit, and Versa, to name a few). Ford will bring in a B-class (Fiesta?) and Chevy is already selling the Aveo. Heck even Cadillac has a well built little car called a BTS that they toyed with selling in Europe.
But while small cars may be the focus of the press and the yammering classes (both left and right), the real effort will go into producing hybrid powertrains in existing C and D-class cars as well as trucks. The cost of cars will go up (of course). But hybridization coupled with newer engine technology (direct fuel injection being a biggee for gasoline engines), will do the trick. There are also some new high strength steels coming into play that will allow weight savings while still providing requisite crash protection. The standards may be a stretch, but are not impossible.
In the 1970s when CAFE was introduced, most piston-heads donned sackcloth and ashes and took to the streets with signs decrying the end of the performance car. Well - it didn't die - it took about twenty plus years to sort things out, but we now have an array of high performance cars that make the '60s era muscle cars look like slugs.
The other thing we learned along the way is that as fuel economy improved the miles driven went up also. That leads me to believe there's another shoe to drop in this process. That 'shoe' will be a 'floor', or threshold price for fuel (fossil fuels only, I suspect) artificially established through taxation. Look for that floor to be in the neighborhood of $3.50 to $4.00 a gallon for regular un-leaded gasoline. Ouch . . .
I don't see it quite that way. For one, the positive news in this set of standards is that the California Air Resources Board (CARB) can no longer, until 2016 at least, apply a more 'difficult' standard than the federal CAFE standard. That is the prize for the automakers. They no longer have to treat California as if it were a foreign market.
As far as the mix of cars are concerned, I suspect that yes, we will see more A and B-class cars (we already have quite a few showing up, the Smart, Yaris, Fit, and Versa, to name a few). Ford will bring in a B-class (Fiesta?) and Chevy is already selling the Aveo. Heck even Cadillac has a well built little car called a BTS that they toyed with selling in Europe.
But while small cars may be the focus of the press and the yammering classes (both left and right), the real effort will go into producing hybrid powertrains in existing C and D-class cars as well as trucks. The cost of cars will go up (of course). But hybridization coupled with newer engine technology (direct fuel injection being a biggee for gasoline engines), will do the trick. There are also some new high strength steels coming into play that will allow weight savings while still providing requisite crash protection. The standards may be a stretch, but are not impossible.
In the 1970s when CAFE was introduced, most piston-heads donned sackcloth and ashes and took to the streets with signs decrying the end of the performance car. Well - it didn't die - it took about twenty plus years to sort things out, but we now have an array of high performance cars that make the '60s era muscle cars look like slugs.
The other thing we learned along the way is that as fuel economy improved the miles driven went up also. That leads me to believe there's another shoe to drop in this process. That 'shoe' will be a 'floor', or threshold price for fuel (fossil fuels only, I suspect) artificially established through taxation. Look for that floor to be in the neighborhood of $3.50 to $4.00 a gallon for regular un-leaded gasoline. Ouch . . .
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