GM To Dealers: Don’t Gouge Customers on Hummer EV, Z06, Silverado EV, Lyriq
Earlier this month, we reported Ford's corporate offices had warned its dealers against demanding extra deposits or other payments on reservations for hotly anticipated vehicles like the upcoming F-150 Lightning. Now comes word GM sent a similar letter to its Chevrolet, GMC, Buick, and Cadillac dealers around the same time.
Originally posted to Corvette Action Center and attributed to GM North America president Steve Carlisle, the letter has since been confirmed by GM as authentic. In it, Carlisle notes most dealers are playing fair, but says "a small number of dealers have engaged in practices that do not support a positive sales experience for our customers."
Market Adjustments And Additional Dealer Markups
Carlisle specifically calls out dealers demanding extra money beyond the cost of a reservation and or adding huge markups to the final vehicle cost. Known as "market adjustments" or Additional Dealer Markups" (ADMs), these surcharges are added to the price of the reservation and or the final price of the vehicle by the dealers and are pure profit.
At the root of it are simple laws of supply and demand, exacerbated by plain old greed. These vehicles are highly anticipated and have either limited reservation slots available or long waiting lists. Dealers charge markups because, simply put, people are excited enough about the vehicles to pay whatever it takes. In some cases, this can mean tens of thousands of dollars or more above the Manufacturer's Suggested Retail Price (MSRP).
Dealers can get away with this because they're effectively allowed to charge what the market will bear. The S in MSRP is critical: Thanks to strong state franchise laws pushed by dealers and their political allies, automakers cannot dictate the final sale price of a vehicle. That's why nearly all vehicle sales at dealerships are negotiations.
Automakers Strike Back, Sort Of
While GM can't tell its dealers what to charge for a car or prevent them from adding a markup, it does have some leverage. According to Carlisle's letter, Article 5 of the GM Dealer Sales and Service Agreement states "Dealer agrees to effectively, ethically and lawfully sell and promote the purchase, lease, and use of Products by consumers ..." and "Dealer agrees to advertise and conduct promotional activities that are lawful and enhance the reputation of Dealer, General Motors, and its Products. Dealer will not advertise or conduct promotional activities in a misleading or unethical manner, or that is harmful to the reputation of Dealer, General Motors, or its Products."
In essence, Carlisle is saying demanding extra money on top of the mandatory reservation fee and adding markups to the final price could put the dealers in violation of their agreement. Carlisle specifically calls out dealers that tell customers an extra fee on top of the reservation price is mandatory to keep that reservation, which is not true under GM's reservation policies.
As punishment, GM is threatening to take away an offending dealer's allocation of the vehicles in question and give it to another dealer that's following the rules. The offending dealer would still get its normal shipment of other vehicles, but would be cut off from receiving hot new vehicles to sell, such as Hummer EVs, Corvette ZO6s, Silverado EVs, and Lyriq EVs. The letter also threatens "other recourse prescribed by the Dealer Sales and Service Agreement" but does not specify what that would consist of.
Closing The Broker Loophole
Carlisle also calls out dealers planning to sell hot new vehicles to independent brokers who will flip them for much higher prices. In such a scheme, the dealer would either sell the vehicle to the broker at an inflated price but not as high as what the broker can get from desperate customers, ensuring a profit on both sides, or receive a kickback when the broker resells the vehicle at a higher price.
The letter reminds dealers that selling to brokers is specifically prohibited by the Dealer Sales and Service Agreement, which reads "Dealer agrees that it will not sell new Motor Vehicles for resale" and "Dealer is not authorized … to … sell Motor Vehicles to persons or parties (or their agents) engaged in the business of reselling, brokering (including but not limited to buying services) or wholesaling of Motor Vehicles."
Dealers caught selling hot new vehicles to brokers and resellers will likewise have their allocations of those vehicles "redirected" to another dealer.
No Restrictions On Private Customers
Unlike Ford, GM has not gone as far as to bar private buyers from reselling their vehicles for a profit. Ford has provided language for dealers to include in their sales agreements that requires customers to keep their vehicle for at least one full year before reselling it or face a lawsuit for breach of contract. This would prevent the average person from flipping their personal vehicle for a profit, at least for a year. GM has not yet provided such language to its dealers or addressed private resales so far as we know.
https://www.motortrend.com/news/ford-warns-dealers-scalpers-about-f-150-lightning-sales/
https://www.motortrend.com/news/2023-chevrolet-corvette-c8-z06-first-look-review/
https://www.motortrend.com/news/2022-gmc-hummer-ev-pickup-pros-cons-review/
https://www.motortrend.com/events/2024-chevrolet-silverado-electric-truck-first-look-review/
https://www.motortrend.com/reviews/2023-cadillac-lyriq-first-look/
https://www.motortrend.com/news/2022-ford-f-150-lightning-electric-first-look-review/
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Chevrolet wants you to have your cake and eat it too. The tasty treat is the 2024 Chevrolet Blazer EV, an electric SUV that keeps the edgy look of the Blazer but gives it greater performance, the first electric SS, more interior room, and lets the customer choose the configuration of the powertrain, a unique proposition in an industry where every nameplate is fighting to stand out.By powertrain configuration, we mean the buyer can not only choose trim, color and features—but also whether their Blazer is front-wheel drive, rear-wheel drive, or all-wheel drive. That is highly unusual in the retail world. Closest example we can think of is commercial customers in Europe who can choose a front-, rear-, or all-wheel drive Ford Transit commercial van.We'll get back to the surprising powertrain flexibility. But first let's get an overview of the electric SUV that Chevy felt deserved to be equipped to appeal to a wide consumer base globally, including those yearning for the first electric SS.Blazer EV is Whole Different Animal from Current BlazerFor starters, the Blazer EV sprang from a clean sheet. It may share the Blazer name and spirit, but does not share architecture, panels or components with the conventional Blazer with an internal combustion engine, says vice president of Chevy Marketing Steve Majoros. The wheelbase was extended by 231 mm (9.1 inches) to fit the largest battery size in, making it the longest entry in the midsize-SUV segment.The Blazer will be the second Chevy on GM's Ultium electric vehicle architecture which underpins the 2022 GMC Hummer EV pickup and SUV, and the 2023 Cadillac Lyriq midsize crossover. The first electric Chevy from Ultium is the 2024 Chevrolet Silverado EV full-size pickup due in spring 2023, followed by the Blazer next summer, and the 2024 Chevrolet Equinox EV compact crossover in the fall of next year. We will get our first full look at the Equinox EV in September.When the current Blazer hit streets in 2018, it ushered in a new design ethos, complete with Camaro and Corvette touches, that carries over to the EV. In this age of dynamic lighting, the Blazer EV is no exception with LED lights that travel to and from the illuminated bowtie in the middle of the light bar for a bit of theater when you approach or walk away from the vehicle. It is most dramatic on the SS with its two-tone color scheme with black fascia and top. The lighting also conveys the vehicle's state of charge: lights dance faster and shine more intensely as the battery's charge increases.Interior Roomier Than the Current BlazerThe architecture and battery pack give the Blazer EV a lower center of gravity and floor which yields more interior space and options for storage areas and clever packaging.Inside the cabin feels airy, with lots of headroom even with the optional sunroof. The low floor and extended wheelbase mean more cargo room, we await specs for the exact amount. Screens in the cockpit are angled and oriented to the driver. There is a 17.7-inch OLED free-form center touchscreen with dimming back light for crisp graphics that fill the screen to the edges—no large areas of dark screen. The driver display adds another 11.0 inches and there is a 3x7-inch head-up display that is standard on the SS, optional on the high-volume 2LT and RS trims. A video display enhances the rearview mirror.The Blazer EV SS we saw was telltale red and black, both inside and out. The red leather seats in both rows are heated and cooled and the cabin benefits from contrast stitching and higher-end materials. Rear seat passengers get vents which are controlled from up front, and two USB outlets. Not surprisingly, the Blazer EV has Camaro-style round air vents. The SUV also has an ionizer to purify the air. You can look up the air quality and some models will have a sensor to automatically turn on the filter to scrub when poor air quality requires it, especially useful for markets such as China.Back to That PowertrainThe Blazer will be offered with a front-wheel-drive unit, a choice of two rear-wheel-drive units, standard and performance all-wheel drive, and three battery sizes. Standard AWD has front drive unit and smaller rear unit. RWD offers more power than FWD and a more dynamic drive. FWD has smaller motor and choice of small or medium battery packs.Here is how the trims play out:1LT: This monochromatic base trim with cloth seats has standard FWD with a small motor in front, standard 19-inch wheels and a range of 247 miles from a single charge. Horsepower and torque figures have not been released, nor have details of the motor and the small and medium batteries expected to be on the base model.2LT: Standard FWD, optional AWD using the smaller of the two rear motors. It will have a range of up to 293 miles. No performance specs yet.RS: Choice of standard FWD with a midsize battery pack or RWD with the larger motor and medium battery pack—you choose where you want the motor—with optional dual motors for AWD. This is the trim with the longest range, up to 320 miles per charge. The RS rides on standard 21-inch wheels and has a heated flat-bottom steering wheel.SS: Standard higher-performance AWD with the larger motor on the rear axle and largest battery. This electric beast will have 557 hp, 648 lb-ft of torque which should propel it from 0-60 mph in less than 4.0 seconds, GM says. It has 290 miles of range, a sport tuned chassis, Brembo brakes, standard 22-inch wheels and the performance required to warrant the SS badging. We are assured it is a true SS. It easily becomes the quickest Blazer.Charging the 2024 Chevy Blazer EVDepending on the trim, the Blazer EV has DC public fast-charging capability of up to 190 kW which Chevy execs say will add 78 miles of range in 10 minutes. The EV has hands-free start, which means no button to push. Close the door, tap the brake, and the key fob authorizes the SUV to go. The fob also talks to the sensors at the rear of the vehicle to open the tailgate hands-free.The vehicles offer one-pedal driving, activated via a button on the touchscreen. The driver can choose how aggressive the regenerative braking is and can pull on a shift paddle on the steering wheel to make small adjustments to braking strength. Wide Open Watts or WOW is the Chevy family friendly version of the Watts to Freedom or WTF launch mode on the GMC Hummer, a maximum power model to get more current to the inverter for more power to the wheels for takeoff.Super Cruise is standard on the SS; optional on lower trims. Advanced Park Assist does the work for you, and other advanced driver assist systems include reverse automatic braking, forward collision alert, automaker emergency braking, and lane-keep assist with lane departure warning. Ultify allows over-the-air software updates to improve and personalize the vehicle over its lifetime. The Blazer comes with standard and all-season tires, with optional summer tires for performance.2024 Chevrolet Blazer Pricing and On-Sale DateThe Blazer EV will hit the market in summer 2023, launching initially with the most popular trims: the 2LT that starts at $47,595 and introduces leather seats, and the sportier RS with a $51,995 starting price. They will be followed by the high-performance SS with standard AWD ($65,995), and before year's end Chevrolet will add the base 1LT that starts at $44,995. Don't count on federal tax credits to reduce the cost; GM has used up its allotment. But Chevy does throw in free installation of a home charging unit.The Blazer EV will be built in the same Ramos Arizpe plant as the current Blazer, even though they are completely different vehicles and EVs undergo a different build process. GM is spending $1 billion to prepare the Mexican plant. Majoros said it is hard to gauge what the take rate will be of the EV; he just knows Chevy has to be ready when the market moves. "We see this initially as additive volume, so Chevy share should grow."And criminals beware, Chevy will do a Police Pursuit Vehicle model of the Blazer EV that will essentially be a modified SS with the largest battery and a choice of rear-drive or performance AWD, and Brembo brakes.2024 Chevrolet Blazer EV Specifications BASE PRICE $44,995-65,995 LAYOUT Front engine, FWD/RWD/AWD, 5-pass, 4-door SUV MOTOR 557-hp/648-lb-ft AC DC] permanent-magnet electric TRANSMISSION 1-speed auto, CURB WEIGHT WHEELBASE 121.8 in L x W x H 0-60 MPH 3.9-8.5 sec (mfr est) EPA CITY/HWY/COMB FUEL ECON EPA RANGE, COMB ON SALE Summer 2023 Show All
toyota venza Full OverviewWhen we took delivery of our long-term 2021 Toyota Venza, we asked ourselves if luxury could be mainstream. With its upscale exterior design and polished interior, the Venza could easily be confused for a Lexus, but its attractive price says otherwise. After 12 months with us, the Venza delivered comfort and luxury in a compelling and affordable package.As a midsize two-row SUV, the Venza sits between the RAV4 and Highlander in Toyota's SUV lineup, but as a hybrid-only SUV, it plays a different game in its segment. Some of the competition includes the Hyundai Santa Fe, Kia Sorento, Volkswagen Atlas, Chevrolet Blazer, and Honda Passport, with every player tackling the segment in its own way. Whereas Toyota took the upscale hybrid approach, Kia and Honda opted for the rugged way, Chevy went a sportier direction, and Hyundai and VW went down a more mainstream path.At MotorTrend we make every attempt to live with these vehicles like you would so we can identify the things you need to know but might not uncover on a test drive. Our hybrid SUV served as the carriage for the newly expanded Loh family during an important visit to Sacramento, and it took us deep into Texas when we visited Big Bend National Park and Marfa on the way back to Los Angeles.We chose the XLE model, sandwiched between the LE and Limited in the Venza lineup, because it offers the most bang for your buck. With the SofTex package—a $510 option—we got heated and ventilated faux leather seats, which proved comfortable. The vegan leather was designed to hold less heat over traditional leather, something we appreciated during the hot summer days. The $2,050 Premium Audio package upgraded the 8.0-inch touchscreen to a 12.3-inch display with capacitive controls, navigation, and a nine-speaker JBL audio system. Although the big screen was a nice upgrade, the touch controls for the HVAC and screen were harder to operate over the traditional physical buttons; they were very sensitive, and we missed having knobs for the volume and radio tuning. All in, our Venza checked out at $39,735, a great deal considering its magnificent equipment.Although the Venza aced at its primary job, it wasn't perfect. Its hybrid powertrain—a 2.5-liter l-4 with three electric motors for a combined 219 hp—felt stressed at medium throttle input, loudly roaring when accelerating from a stop or when passing on the freeway. Its traction control system was also touchy—when going over a bump, rough pavement, or a steel plate and applying the brakes, the system would briefly cut power and lock the wheels. This didn't happen often, but I noticed it multiple times throughout the year.We also complained about its interior space and poor packaging given its size. The Venza is longer than the RAV4, yet it has less passenger and cargo space than its smaller sibling. Its cargo floor is too high, and its swoopy roofline and overall shape limit cargo space.Visiting the dealer was easy. Thanks to the Toyota Connected Services app, we were reminded when it was time to go in for service, and booking an appointment through the app was a breeze. Toyota's maintenance plan covers normal factory scheduled services for the first two years or 25,000 miles, so customers don't have to pay a penny. (We did have to, however, because our Venza was part of a fleet; we spent less than $200 over four visits.)Compared to other long-term two-row midsize SUVs, the Venza was inexpensive to maintain. Our 2015 Nissan Murano SL AWD cost $589.76 over the 12-month period it stayed with us. That's more expensive than the Venza or the $77.90 we paid for our 2018 Dodge Durango V-8 long-termer. Although we like the two-year complimentary maintenance, we'd prefer to visit the dealer less often; the Venza has scheduled services every 5,000 miles. We never had to visit the dealer outside of the maintenance schedule, though. We avoided any chips on the windshield, flat tires, or other unexpected surprises throughout the year.The few gas stops we made didn't go unnoticed. The Venza delivers 40/37/39 mpg city/highway/combined per the EPA—pretty good numbers for an SUV this size. We didn't quite hit those numbers on our average, but we weren't far off (35.1 mpg). Still, we saved money at the pump, which we appreciated as gas prices skyrocketed toward the end of 2021.Overall, our 2021 Toyota Venza long-termer delivered exactly what we expected it to. It's not necessarily a fun SUV to drive, and it isn't perfect, but it does a lot of things well. It's comfortable, it's full of upscale touches, and it comes at a great value—and plenty of people will be happy about that. Although its technology isn't top notch, it has enough to simplify some of your day-to-day commuting needs. And with incredible reliability and a Top Safety Pick rating from the IIHS, the Venza is quite an attractive package.Looks good! 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mercedes-benz sl-class Full OverviewThe AMG gang in Affalterbach desperately wants you to know a few things about the 2022 Mercedes-AMG SL-Class. One, they designed it. From scratch and with little help from the Benz mothership. Two, it barely shares a screw or rivet with the AMG GT Roadster they also designed. Three, despite the new SL having grown a pair of vestigial back seats and adding a few inches in length, it promises to be the sportiest SL roadster since the racing-derived 300SL from 1957. And four, thanks to miracles of modern science, this new R232 SL also promises to deliver comfort on par with—if not exceeding—that of its Mercedes-developed R231 predecessor.Three months of engineering roundtable Zoom calls and even a low-speed ridealong event have sufficiently satisfied us on the first two points; it's the last two that we've been itching to verify. At long last we had the opportunity to flog both the SL55 and SL63 variants on a variety of highways and twisting roads. So, has AMG managed to channel the speed-record-setting, Mille Miglia-winning verve of the original W196 while making the car even more cosseting and comfy than the outgoing roadsters?Mercedes-AMG SL Performance in a Straight LineThe 2022 Mercedes-AMG SL63 will undoubtedly go down in our record books as the quickest SL we've tested. Mercedes claims this 577-hp, 590-lb-ft beast will dash from 0 to 60 mph in just 3.5 seconds, thanks in large part to newly standard all-wheel-drive traction that guarantees none of those ponies or pound-feet gets squandered generating tire smoke or brake heat from traction-control intervention. Converting those estimates to account for MotorTrend launch-control test conditions and a 1-foot rollout will probably boil that number down to something much closer to 3.0 seconds flat. (The last two SL models we tested each beat Mercedes' conservative estimates by exactly half a second.) The SL55, running the exact same engine but with smaller turbos and slightly less aggressive tuning produces "just" 469 horsepower and 517 lb-ft. The AMG team reckons it'll give up three-tenths to the SL63.For some perspective, that performance should rank the SL models somewhere about even with the Porsche 911 Carrera 4S and GTS cabriolets, which is to say, ahead of the BMW M850i xDrive cab (3.9 seconds to 60 mph) and way out in front Lexus LC500 (4.7 seconds) in the bucks-up 2+2 cabrio set.Trust us, if you never drive an SL63, that SL55 will seem like it has more than enough power. However, we might counsel those prepared to settle for the SL55 to consider opting for its AMG Dynamic Plus package, which brings with it a Race mode. We don't typically prefer Race modes because they usually disable all the stability controls, increasing amateurs' risk considerably. This one does not.What it mostly does, in addition to heightening all the car's responses, is switch to a perfectly linear throttle response map. There's more gain earlier in the pedal travel in the Sport and Sport+ modes, which may make the car seem more eager and powerful, but at some cost to the predictability serious drivers prefer. The computer programming in Sport+ and Race modes devotes a bit of extra fuel to generating delightful pops and snorts on overrun. That feature is fun, but this mode also tends to deliver some harsher downshifts when slowing, which can feel like grabbing brakes (this never happened in Comfort mode).We only got the SL63 up to triple-digit speeds briefly, but with the optional AMG Aerodynamics package, an air dam in front of the engine lowers 1.6 inches at speeds above 50 mph to help induce a venturi effect that helps suck the car down to the ground and reduce front-axle lift.SL-Class Handling BehaviorThese are heavy cars, pushing two-and-a-quarter tons. But AMG Active Ride Control, which connects opposite corners of the car hydraulically to limit body roll (as on various McLaren cars and now Rivian trucks), truly makes them feel as agile as cars weighing a half-ton less. This is another feature that's standard on the SL63, and available to help make your SL55 cost almost as much as a 63.Clicking the steering-wheel-mounted drive mode selector clockwise relaxes the stability nannies somewhat, making the cars progressively more neutral in their handling demeanor, but there's no "drift mode," no option to bar torque from reaching the front axle. (That's right—unlike the AMG GT family, the SLs are all-wheel drive.) And hence, even an aggressive drive up Mount Palomar on a cool morning with slightly dewy road surface, we never once sensed Race mode allowing the tail to run wide. More than a little credit here is due the Michelin Pilot Sport 4S tires—265/40 front, 295/35 rear on the standard 20-inch rims, or 275/35 front and 305/30 on the optional 21s we mostly ran.The carbon-composite brakes deserve honorable mention for being equally adept at shedding heroic speeds upon approach to a tightening-radius corner—corner after corner—as they are at executing a limousine stop in town. Both models share this standard six-piston front, single-piston rear brake system.Steering feel changes as you switch modes, and we generally found the comfort mode to be a bit too light. The other modes don't heighten the driver's feel for the road, per se, but the firmer helm feels better. We were blissfully unaware of the four-wheel steering (standard on both models) doing its thing, except when executing exceptionally tight U-turns.The California roads between Newport Beach and Palm Springs are relatively smooth, but we aimed for the bumpiest patches we could find and were impressed by the suspension compliance afforded in Comfort mode. The Sport and Race modes firm things up noticeably enough that we took the time to program the Individual mode with everything set to its raciest option and the suspension set to Comfort. This was our Goldilocks "just right" setting, but we also appreciated that individual characteristics (steering, ride, exhaust noise, etc.) can be easily adjusted on the fly using the round selector and twin toggle switches at the lower left side of the wheel, just opposite the main mode-selector switch. The super-rigid multi-material structure never seemed to twist or jiggle in response to bumps.What's the Mercedes-AMG SL-Class Like to Live With?Mostly wonderful. The cabin seems as quiet with the soft top up as the previous model did with its folding hard top raised. The Z-fold fabric roof lowers in 15 seconds at the touch of a button, and a switch allows all four windows to be lowered simultaneously. Happily, the sun visors swivel out, unlike on some convertibles. Raise the windows and pull up the mesh-screen wind blocker that covers the rear "seat" to keep the cabin remarkably calm and quiet even at highway speeds. In cooler weather, switch on the Airscarf neck-warmer to extend the top-down season (the cockpit isn't long enough to need the E-Class convertible's Air Cap windshield header air-management screen).The center info screen adjusts between 12 and 32 degrees to prevent sun from reflecting directly into the driver's eyes, though the buttons for adjusting this (and for raising and lowering the top) can be hard to see when that glare prompts you to fix the screen. We're also not completely sold on a lot of the capacitive switchgear in use here. The mirror switch, for example, didn't seem to respond as expected. We have yet to experience capacitive switches we love.As with all new Mercedes products, the all-digital instrument cluster can be set to display any of several different themes and tons of information, the most pertinent of which is redundantly shown on the head-up display (standard on 63, optional on 55). Track Pace screens will help folks monitor and improve their performance on their car country club track, and the additional stowage space behind the front seats and in the trunk should make the new SL much more useful as a daily driver.We reckon the new car is comfortable enough to retain the SL faithful and sporty enough to pull some customers out of 911s, the BMW 8 Series, and Lexus LCs. Of those, the BMW's nearly 5 inches of added wheelbase gives it a slightly more usable rear seat (the SL's is only rated for passengers shorter than 5 feet tall). A lighter Porsche will always feel nimbler, and the Lexus design may turn more heads, but this Mercedes-AMG enjoys nearly seven decades of heritage, and this R232 pays legitimate homage to its very best SL progenitors.When and How Much?The 2022 Mercedes-AMG SL-Class will go on sale in the second quarter of 2022. Mercedes isn't talking pricing just yet, but it seems a safe bet to assume that since the new 2+2-seat SL is effectively replacing both the four-seat S-Class cabriolet and two-seat R231 Mercedes-Benz SL-Class, pricing should represent an average of these models. Let's figure $132K for the SL55 and $175K for the SL63. That prices the new SL right in the thick of the 2+2-passenger convertible crowd.Looks good! More details?2022 Mercedes-AMG SL-Class Specifications BASE PRICE $132,000-$175,000 (est) LAYOUT Front-engine, AWD, 2+2-pass, 2-door convertible ENGINE 4.0L/469-577-hp/516-590-lb-ft twin-turbo direct-injected DOHC 32-valve V-8 TRANSMISSION 9-speed auto CURB WEIGHT 4,300-4,400 lb (est) WHEELBASE 106.3 in L x W x H 185.2 x 75.4 x 53.5 in 0-60 MPH 3.5-3.8 sec (mfr est) EPA FUEL ECON 16/21/18 mpg (est) EPA RANGE (COMB) 350 miles (est) ON SALE 2nd Quarter 2022 Show All
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