Sleuth: The Week of August 10

Hot off the press!

No Z28 Camaro, four-cylinder under consideration: Just when you thought you knew all the details of the new 2010 Chevrolet Camaro performance coupe, the Sleuth’s spies have gotten the scoop on a new fuel-efficient model. During a recent interview, product boss Bob Lutz confirmed that his company had been testing the 2.0-liter turbo four-cylinder from the Pontiac Solstice GXP and Saturn Sky Redline for use in the Camaro. Separately, several reliable sources had said that the Camaro Z28 program is cancelled. “There will be no Z28 model,” said Chevrolet product manager Cheryl Pilcher in a newly published interview. For the time being, the base Camaro engine is a 300-horsepower V6. A V8 is optional.

TT to be influenced by the R8 supercar: When it first hit the streets less than a decade ago, Audi’s TT coupe was an icon for the automaker’s entire lineup. Since then, that role has been passed to the R8 supercar, which might just set the tone for future TT models. Preliminary sketches of a mid-engined TT — the engine is located behind the passenger compartment, just like the R8 — are already making their way through Audi’s headquarters. Why the change from a front-engine layout? It seems that company engineers are quite pleased with the handling characteristics achieved in the mid-engined R8 and are looking to bring that balance and performance to the TT. However, even if the mid-engine TT is given the green light, it likely won’t hit the market until 2013.

BMW adds another number: It used to be that BMW had a simple product lineup. Ten years ago the German automaker didn’t even offer a sport-utility vehicle. But times have changed and the latest murmurs out of Germany indicate the X1 isn’t the only compact Bimmer small wagon headed for production. The company is purportedly planning a “coupe” version of the X1 in the form of the X2 Sport Activity Vehicle. Just as the new X6 is the “SAV” version of the X5, the X2 will be the X1’s funner-loving sibling. But there’s a slight twist: the X2 will also lose two doors, making it a truer “coupe” than the four-door X6. With Audi’s Q3 rumored to have a two-door coupe configuration, the X2 might end up being its nearest rival.

Nano goes diesel: The powerplant for what is expected to be the world’s cheapest mass-produced new car, whether it costs $2,500 or slightly more, has recently been revealed. The Tata Nano will use a diesel engine developed by a Germany-based company called FEV. The 623 cubic centimeter (0.623 liters), two-cylinder engine will feature Bosch fuel-injection, but all other components will be developed by Tata and FEV, an independent engine and powertrain systems research, design and development company. The Nanos showed to date had a gasoline engine mated to a four-speed manual transmission. A hybrid gas or diesel/electric version is also likely.

Saab’s size matters: It has been a fairly standard practice in the automotive industry to make every new iteration of a model slightly larger than its predecessor, but General Motors’ Saab division is looking to reverse that trend. In the face of high fuel prices, the company is looking to downsize its entire future lineup, making the cars lighter and thus a little easier on fuel. The next-generation 9-3 was originally slated to ride on GM’s Epsilon II architecture, but the Swedish automaker has given the go-ahead for a smaller 9-3, according to trade paper Automotive News. The Delta platform is GM’s lower-medium platform and will underpin other GM small cars such as the upcoming Chevrolet Cruze, which is said to be replacing the Cobalt. The 9-3’s switch to the Delta platform also means that the upcoming Saab 9-1 will have to downsize. Slotting in below the 9-3, the 9-1 will likely ride on GM’s Gamma platform, the same that underpins the current Opel/Saturn Corsa.

Market indicators

Leasing and residual values: Tough times call for tougher measures as many manufacturers, including General Motors and Chrysler plan to abandon, or have already abandoned, their leasing programs. About one in five new vehicles is leased, a practice that predermines a buyout or residual value of the vehicle at the end of the lease period, usually three or four years. Payment is arranged on the difference between the retail price and the residual. Leasing is being dropped as most automakers are being hit with huge losses due to lower-than-expected in residual values, especially trucks and sport-utility vehicles. Ford has already taken a $2.1 billion hit in residuals this year, due to a combination of high gas prices and sagging economy, and Honda expects the same problem to cost $231.8 million through March 2009. That means you’ll be buying the old-fashioned way, at least for the short term until the market stabilizes and residual values can be more accurately determined.

Honda’s fortunes: While North American automakers such as Chrysler and Ford continue to struggle with their financial sheets, Honda has posted record-breaking first quarter profits. Although strong Japanese currency and rising material costs hurt Japan’s number two automaker, Honda’s growth in new markets offset any losses. Honda recorded a $1.68 billion profit for the April to June quarter, up 8.1 percent from the previous year and outpacing predicted profits of $1.2 billion, according to Yahoo Finance. Despite the sharp increase, Honda’s sales actually fell 2.2 percent to $26.79 billion, largely due to the rising value of the yen. Honda’s North American sales also helped bolster the record quarter as demand for its fuel-efficient lineup spiked as gas prices crossed the $4 mark. Honda sold 962,000 vehicles worldwide in its first fiscal quarter — up 1.7 percent from last year — setting a new company record.