TWO FOR THE ROAD USA ATTENDS PRESS CONFERENCE WITH VICE PRESIDENT OF TOYOTA

By: Bill Zervakos
Phoenix March 2010

We were invited to attend a briefing where Bob Carter talked to members of the press and Toyota Dealers about how Toyota is handling the recalls. Mr. Carter was emphatic about the fact that Toyota is doing everything they can to abate concerns about the quality and safety of Toyota vehicles and that there is absolutely no danger from electronic controls taking over any Toyota vehicle. He expressed his confidence by telling us that his family has three Toyotas including a Corolla and a Prius his wife and daughter drive and if there was even a hit of unresolved issues, his family certainly wouldn’t be driving the cars.

He talked about the fact that there are two issues the company is addressing, one regarding floor mats and the other dealing with the accelerator problem that in rare instances cause the gas pedal to be slow to return. The floor mats, when properly hooked were and are no problem but if people used thicker mats or doubled up mats as some do in inclement weather situations, it could cause the gas pedal to hang up. Because of the potential problem, Toyota issued the recall and made adjustments to alleviate the problem.

The other issue has to do with the gas pedal being slow to return on some vehicles. They found thirteen vehicles out of some 2 million cars that had a “sticky” accelerator and because the company didn’t stock replacement pedals, Toyota shut production down for a week until they were able to get the new pedals. Of the 2 million cars recalled, dealers have made repairs on over 1 million since February averaging over 50,000 fixes a day.

As far as electronic problems causing sudden acceleration go, Mr. Carter pointed out that there are some 40 million Toyota vehicles worldwide and to date, not one electronic problem has ever been found in a Toyota vehicle. The tests showing that a car could be “tricked” into going into wide open throttle mode only proved that any car could be made to do that and every test run on Toyota vehicles has shown that the redundancies and safety systems have worked exactly as designed. That aside, Toyota is working to address any complaints about sudden acceleration because their concern has been and always will be taking care of their customers first.

All companies need to have their feet held to the fire and while it’s important for the public to be aware of problems from any manufacturer, it’s also important to look at the big picture. In the case of Toyota, they have a 50 year track record of building safe vehicles and taking care of their customers. It’s no different now as they continue to investigate potential problems and concerns about the quality of their vehicles.

The Great Toyota Cover Up?

by Bill Zervakos

According to an article in the Detroit News, Toyota has acknowledged they’ve had as many as 37,000 complaints about the brakes on the Prius acting funny. So out of the millions sold perhaps 37,000 may have a problem, not all of the millions produced are at risk which is what many would like you to believe.

Here’s something important to keep in mind; a problem that cannot be duplicated at a repair center cannot be fixed. Pretty easy to understand that one can’t fix what one can’t find and I have personal experience with that scenario having been both a service advisor at a dealership and owning my own repair center.

In the 1980’s, When ABS was a relatively new technology, I remember people coming in to the dealership I worked at complaining about brake problems. After examination it was in fact shown that there was no problem, it was just the difference in the way the brakes felt when ABS tried to kick in. If you’ve ever driven a hybrid you know the brakes definitely feel different and take a bit of getting used to.

Paul Nolasco, a Toyota spokesman talked about the time lag for brakes kicking in felt by some drivers that stems from the two systems in a gas-electric hybrid, the gas-engine and the electric motor, reacting to brake pressure. That feeling is apparently exacerbated when the car is on a bumpy or slippery surface. I certainly haven’t heard about any accidents attributed to the problem and Toyota says a software fix is likely the answer.

So, while Toyota is in fact addressing the situation, it isn’t apparently quickly enough to satisfy the media and our legislative leaders. However I have what I feel is a pretty simple question; why is it that we are so quick to believe that a company that has over many years, earned the reputation that Toyota has for quality and commitment by building safe vehicles and developing customer satisfaction, now covering up problems that they allegedly knew existed for years. It simply doesn’t make a any of sense.

In the interest of full disclosure, I have been test driving cars and reporting on them for over 15 years and have certainly driven more Toyota’s than most. During those 15 plus years there have been millions of cars recalled from several manufacturers for myriad reasons, and certainly most all were valid as is this recall. What I’m most disappointed with is all the hyperbole from some of my colleagues in the media that seem to think it’s critical to eviscerate Toyota, I can assure you, I’m in no way absolving Toyota from problems that may exist by any stretch of the imagination. They, as all auto makers have to be, are responsible for making sure their products are safe.

Some legitimate questions surround the use of drive-by-wire technology in vehicles today and I certainly don’t pretend to have any answers about that. But I do know that when I get behind the wheel of a car, I’m responsible for controlling the vehicle and if the carpet jams the accelerator, which has happened to me over the years, the gas pedal doesn’t release, which has also happened to me, it’s my responsibility to cope with the situation at the moment. This may surprise you but brakes will always stop a runaway car period. Brakes will always overpower an engine so as drivers it’s our responsibility to not panic.

Electronics have exponentially changed how vehicles operate but handling a car hasn’t. So what I am asking is, why are we so quick to think that Toyota, or any other manufacturer is covering up anything. Could it be for rating points? How’s that for hyperbole. 

BRIGHTON MOTORSPORTS

   They’re Just Cars…

By: Cathy and Bill

There is no comparison to the devastation in Haiti, or the tragedy of September 11^th but in the collector car and auction industry, many owners and dealers are waiting patiently to see if their cars were lost or damaged in the recent Russo and Steele mini-tornado.

It was said best by Brighton Motorsports owner, Shane Mustoe, when asked on our radio show,

how their cars fared,  Shane said “we don’t know yet, but they’re just cars”.  He was concerned for the safety of human beings and of course the stress surrounding the Russo and Steele Auction family.

Brighton Motorsports had about half a dozen prized cars entered in to the auction, including a beautiful red Allurd.  Shane was calm as we spoke to him on his cell phone from the Russo and Steele auction site as he looked at the torn tents, metal fixtures and overabundant puddles of water.

Shane continued answering our questions about his entry cars, many of them his personal collection, but still did not know the condition of them. We will follow up with him, and his wife Karen, next week.  It is true, these vehicles are insured, but many of them have a long history, hard earned money and personal stories behind them you just can’t replace.

To listen to our interview with Shane, at Brighton Motorsports, click on our radio show for Saturday, January 23, 2010 on our website www.twofortheroadusa.com and check out the Brighton video on the front page of the site.

For more information go to www.brightonmotorsports.com

RM AUCTION AT THE BILTMORE

And you thought England was only famous for the Beatles?

By: Cathy and Bill

The Biltmore Hotel, in Phoenix, Arizona, set the stage for the grandeur and excitement of the annual RM Auction, January  21 and 22^nd. RM celebrated “The British are Coming” on Thursday with choices ranging from a ’49 MG Roadster to a 1962 Aston Martin DB4 Racing Car.

Bill and I met collectors from all over the world, and enjoyed stories of cars lost, and jewels found in suburban barns over their many years of collecting. As you listened to these stories, you couldn’t help but pay attention to the soundtracks of the Beatles greatest hits, over the sound system.  It really put you in the mood to collect “British”.

One of the most unique cars on the block ( not from England)  for this auction was the 1956 Cadillac “Maharani Special” Motorama show car.  This Cadillac is also referred to as the “Kitchen Sink Cadillac.” Its stated purpose was to store, prepare, serve and clean-up an entire meal, in a setting for a king.  It was designed as nothing short of a kitchen on wheels – a function that required the removal of about half the front seat to allow for the installation of an electrical hot plate to warm food, a toaster and refrigerator in the trunk.

You could store fine china as well as a cutlery tray that features individual positions for forks, knives and spoons. 

Check out our radio interview with Ian Kelleher, the President and COO of RM Auctions, on our January 23^rd show on KKNT-960 AM 5-7 PM or go to www.twofortheroadusa.com click on radio shows.

This vehicle is estimated to go for between $150,000 and $200,000 dollars.

The photo we took, doesn’t do it justice, but if you google the “Kitchen Sink Cadillac” you will see how innovative and cool this “Maharani Special” really is.

Local Motors picks Phoenix for its first Micro Factory.

January 22, 2010 – Phoenix, Arizona

Local Motors picks Phoenix for its first Micro Factory.  The exact location is still a mystery. Local Motors is your stage to celebrate the designs you love, where you ultimately have a hand in choosing the next great American car.  Intriguing idea?

Learn more about Local Motors and President CEO Jay Rogers by going to www.local-motors.com and their Facebook page www.facebook.com/RallyFighter. Jay Rogers, Ariel Ferreira and Sarah Stokes drove the Rally Fighter to the radio studio for their interview today. 
Check out the Saturday, January 23^rd show on Two for the Road on KKNT-960   5-7 PM.

Left to right Ariel, Bill Z Sarah,

Jay and Cathy D.

Car Collectors Panel Discussion for Collecting In Today’s Market

At Russo and Steele January 21, 2010

By Bill Zervakos

It was a cold rainy January day in Scottsdale Arizona at the Russo and Steele Auction but the conversation was hot as a panel of eminent car collector experts talked about today’s market.

McKeel Hagerty, Co-CEO of Hagerty Insurance moderated the event and kept the questions flowing to the panel which included; Drew Alcazar of Russo and Steele, Dave Kinney of Hagerty’s Cars that Matter Price Guide, Colin Comer of Colin’s Classic Auto, Todd Wertman of Symbolic Motors, Rob Sass, Hagerty Insurance Media Services and freelance writer and Donald Osborn, appraiser and consultant.

The panel addressed the market correction of 2008 and 2009 and its affect on collector cars and which ones held their value and the ones that didn’t do so well. Dave Kinney talked about how the Blue Chip cars held up well from ’06 to the present time without much of a loss at all. Colin Comer felt that muscle cars were the poster child, his words, for the plunge in values with particular emphasis on clones with the exception being true, numbers matching cars that hadn’t been modified.

Drew Alcazar followed up by saying that it was true in the sense that documented muscle cars are and will continue to do well while enthusiast cars, the ones that people bought because they wanted to tinker with something, are taking a bit of a hit. He also said that sellers are adamant about disclosure and they back up their documentation.

Todd Wertman said that the Euro cars took a pretty big hit after a meteoric rise, but the best of the best held value and will continue to. Donald Osborn followed by saying that buyers are even more selective and Rob Sass said that German cars held up fairly well in the European markets.

The panel pretty much agreed that the some post-war American cars like Buick, Oldsmobile, Pontiac etc., the dream cars of the Boomers if you will, will do well and are good buys but they can be a double edged sword. The consensus was, buy if you love them, but not necessarily as an investment. They did caution that no doc cars, 4-door cars and station wagons are very slow and tough to sell right now.

The panel also agreed that cars like the tri-five Chevy’s, Hemi Cuda’s and the like have reached a saturation point and unless you have the perfect car with all documentation, prices can be off quite a bit. There does seem to be building interest in the Brass era, late 1800’s to early 1900’s with younger buyers.

Summing up the market today, high quality well documented original cars are strong and will continue to be, while clones and wanna be’s not so much. Hot rods are pretty flat and to sell buyers want to know the builder and the quality has to be there.  Drew Alcazar talked about the confusion between true collector cars and enthusiast’s cars and how understanding the difference is critical. In other words, you better love the car if you buy an enthusiast’s car, because the only way to recoup the cost, by enjoying it.

In looking at recovery, most agreed that the premium cars talked about will do fine but if a car isn’t the best of the best or event eligible then plan to ride it out. Rob felt the Euro Sports cars will recover first, Todd talked about the event eligible cars, and Colin said that the top cars in all genres will recover well. Dave made an interesting argument for minor muscle cars like small block Chevy’s, 302 Mustangs and so on doing well and Drew feels as though the American romance cars, big fins and lots of chrome will come back strong.

It was an interesting and informative session, these gentlemen are the crème de la crème of the industry so I’m inclined to believe what they say. One thing they all agreed on of course, is that it is quickly becoming a world market and knowing how to work in different cultures is going to be key for players on that stage.

Three Experts, Three Views on Collector Car Trends

Our friend and colleague, Larry Edsall from the Phoenix Automotive Press Association wrote this article for the New York Times. This was a wonderful meeting that we attended and Larry summed it up beautifully.

By LARRY EDSALL

PHOENIX – Car collectors from around the world are either here in Arizona’s Valley of the Sun (where it’s raining, with more precipitation forecast throughout the week), or they are tuned in via television, telephone or the Internet as some 3,000 vehicles of special interest and historic value are up for auction at a variety of venues.
Tuesday night in the Phoenix Art Museum, three experts shared their thoughts about car collecting at the Phoenix Automotive Press Association’s Arizona Auction preview.
Trends in collecting may come and go, but the collectors tend to remain the same – they’re 40 to 60 years of age, said Don Williams, who has been involved in buying and selling classic cars since he was a teenager in the 1960s. Mr. Williams has bought, sold or been involved in the sale of some 10,000 classic vehicles and has assembled the Blackhawk Collection, a part-museum, part-classic car dealership in Northern California.
While the buyer demographic may have remained the same for decades, Mr. Williams added that “a 50-year-old today doesn’t not want to collect the same vehicles as a 50-year-old did in the 1970s.”

What those graying buyers want first and foremost are the cars they lusted for back when they were in high school. For today’s bidders, those cars often are 1950s and ’60s models, whether European sports cars or American muscle cars.
But such schoolboy nostalgia can “mature backward,” producing serious car collectors who develop an appreciation for earlier vehicles, said McKeel Hagerty, second-generation head of a family-owned collector car insurance company. Before long, he said, a pre-war Rolls-Royce or Packard may be parked next to that late 1960s muscle car.
Donald Osborne, a New York native who performed as a baritone with the Metropolitan Opera for two seasons before pursuing his passion for exotic Italian cars, said what he’s seeing, especially from young collectors who have grown up in an age of digital electronics, is a new appreciation for the really old, “brass era” vehicles that provide a delightful usability and can be driven and enjoyed for their “purely mechanical” nature.
Mr. Hagerty said another trend is the appreciation for cars that have been preserved rather than restored. “A car can be original only once,” he noted, saying such cars are motorized time capsules and are being sought “like jewels” by automotive collectors.
But, added Mr. Williams, each generation makes its own choices about what cars it will value. For example, he said, 20 years ago, he’d never have thought 1950s concept cars would become the object of bidding wars.
Mr. Hagerty agreed and went back to the importance of the classic car buyer’s high school daze. “A 1977 Toronado is somebody’s dream car,” he said.