Horace Dediu and Jim Zellmer discuss the pleasures of traversing continents by road. This leads to a grand tour of powertrains, composites, fuel efficiency, regulation and Tesla’s luxury market entry. Which naturally leads to a conversation on emerging auto modularization, apps and ecosystems and where value will accrue. [32MB 67 minute mp3]

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Mark Rogowsky:

The numbers at first glance don’t seem quite so bad as BMW and Mercedes are both registering double-digit sales increases for 2013. But a deeper dive (thanks to GoodCarBadCar and the California New Car Dealers Association) paints a different picture. As the accompanying chart shows, five competitive vehicles are all down significantly against their 2012 sales numbers. Given that overall U.S. auto sales are up by 7.7%, and 12.5% in California, the performance of the Mercedes E-Class, the BMW 5-Series, and the Lexus GS are especially disappointing.

But it’s in the BMW 7-Series and Porsche Panamera that the presence of the Model S is probably being felt most acutely. Both are performance luxury sedans capable of seating families comfortably and both are fairly commonplace in the wealthy neighborhoods of the San Francisco Bay Area. Those neighborhoods are now rife with Teslas. More than 4700 Model S registrations have been recorded in California and at least some are coming at the expense of the competition. Nationally, the Tesla has matched the total sales of the Lexus LS, Audi Audi A8 and Panamera combined.

It’s certainly true that for the moment, BMW and Mercedes are still going to sell plenty of cars. Together, their midsize sedans will have a 5:1 edge over the Tesla in 2013, and much greater if you also include the large sedans in the mix. But by the end of next year, Tesla hopes to double production and deliver as many cars outside the U.S. as it’s selling here. The competition is clearly heating up.

Dan Neil:

Indeed, the new word in the Stingray’s vocabulary is “structure.” Every good thing about it—its refinement and drivability, the fine-tuning of each of the five driving modes (Eco, Normal, Winter, Sport and Track), the “sportivity,” as the Germans would call it—is thanks primarily to its new rigid cartilage of alloy tubes, panels and extrusions. This is pretty much the technology Scaglietti uses to build the monocoque of the Ferrari 458 (except that car has a stressed aluminum skin); Aston Martin, Jaguar, and Lotus use something similar. Corvette doubters are going to have to show me a better mass-production chassis that is priced anything like a new Stingray ($52,000-$70,000).

Wait, there is actually one. Anybody? The Tesla Model S.

Arcane figures about Stingray’s torsional rigidity translate in the cabin to a sense of things being tightly tamped and torqued down. That is definitely novel for Corvette. The new car is almost entirely cured of Corvette’s distinctive cowl-shake or unpleasant noise, vibration and harshness. In previous ‘Vettes, hitting a big pothole would send an undamped shudder through the structure and, if the car was cornering, it would take a moment to recompose itself and regain the trace. In the C7, such impacts are reduced to a single, tympanic thump, instantly dissipated.

In fuel-saving Eco driving mode, the Stingray can deactivate four of its eight cylinders (itself a neat trick in a cam-in-block V8), helping the base car to lope to a 30-miles-per-gallon highway mileage rating. And yet the fluttering off and on of these cylinders, in this high-compression (11.5:1) V8, is virtually undetectable.

Code, you want code? In order to better calibrate the behavior of the various adaptive driving modes (weather, eco, tour, sport and track)—modulating no less than 12 vehicle systems including the electric steering and magnetic adaptive dampers—the Stingray Z51’s 19- and 20-inch wheels (front/rear) are fitted with tiny temperature sensors, because warm tires behave differently than cold tires. But because these sensing thermocouples heat up more slowly than the air inside the tires, their signals go through a special temperature-estimating algorithm before they are processed by the driving-mode head office.

Volkswagen:

Re-imagine PunchDub
Every time you encounter another Volkswagen with SmileDrive, you get a punch. At the end of your drive, you’ll learn how many punches you’ve collected.

Earn stickers
You’ll receive stickers for special moments on the road such as late-night rides, extra long hauls and crack-of-dawn commutes.

Get your Smile Score
Each trip ends with a report that includes a Smile Score, which measures the fun factor of that drive.

Share and save Smilecasts
Friends can see where you are, who you’re with and what you’re doing while you’re on your road trip. Once it’s over, your Smilecast is saved so that you can revisit the adventure.

Interesting. I wonder what the data sharing & financial incentives behind this app might be?

Bill Barnwell:

It’s pretty clear that being an NFL head coach isn’t a very easy job. A light day at the office during the season runs about 16 hours. You have to manage and assuage the egos of 53 players, a fair number of whom make more money than you and have way better job security than you. For all the effort you might put into your process, you’re judged entirely by outcomes, some of which might very well be chalked up to players you didn’t want to draft in the first place. And then, when you make a decision in the heat of the moment on Sunday while surrounded by 70,000 fans and weighing hundreds of variables at once, some smart-ass who’s never coached a day in his life picks apart your decisions on Monday.

Doesn’t sound like fun. But Thank You for Not Coaching, the section of our Monday NFL wrapup column1 that breaks down the previous weekend’s coaching decisions, is not meant to be a harsh dismissal of coaching! It’s supposed to be educational, to provide some insight into what the different possibilities are in a given situation and how teams might be able to maximize their opportunities to win football games. I won’t pretend that it can’t get catty at times — sorry, Pat Shurmur — but I think about all the hours that coaches put in and all the collected knowledge they’ve gathered during their years on the job and hate to see them throw all that away by being ultra-conservative at the wrong time. Why make a suboptimal decision because it’s what has always been done?

Priceonomics:

The average price of one bedroom condominium in San Francisco is $630,000 as of June 2013. This would presumably buy you a mansion in much of the country, but in San Francisco it lands you an 898 square foot condo. And if you’re looking for a little more room, a two bedroom in San Francisco costs $893,000 and a three bedroom $1,235,000. You don’t want to know what a four bedroom costs.

I periodically post trends from our v5 native iPhone, iPad and Android apps at pulse.re, including Silicon Valley.

Julian Assange:

Two months after my meeting with Eric Schmidt, WikiLeaks had a legal reason to call Hilary Clinton and to document that we were calling her. It’s interesting that if you call the front desk of the State Department and ask for Hillary Clinton, you can actually get pretty close, and we’ve become quite good at this.

Anyone who has seen Doctor Strangelove may remember the fantastic scene when Peter Sellers calls the White House from a payphone on the army base and is put on hold as his call gradually moves through the levels. Well WikiLeaks journalist Sarah Harrison, pretending to be my PA, put through our call to the State Department, and like Peter Sellers we started moving through the levels, and eventually we got up to Hillary Clinton’s senior legal advisor, who said that we would be called back.

Shortly afterwards another one of our people, WikiLeaks’ ambassador Joseph Farrell, received a call back, not from the State Department, but from Lisa Shields, the then girlfriend of Eric Schmidt, who does not formally work for the US State Department. So let’s reprise this situation: The Chairman of Google’s girlfriend was being used as a back channel for Hillary Clinton. This is illustrative. It shows that at this level of US society, as in other corporate states, it is all musical chairs.
That visit from Google while I was under house arrest was, as it turns out, an unofficial visit from the State Department. Just consider the people who accompanied Schmidt on that visit: his girlfriend Lisa Shields, Vice President for Communications at the CFR; Scott Malcolmson, former senior State Department advisor; and Jared Cohen, advisor to both Hillary Clinton and Condoleezza Rice, a kind of Generation Y Kissinger figure — a noisy Quiet American as the author Graham Greene might have put it.

David Barkholz:

A group of Generation Y members surveyed who had bought a vehicle within three months said they visited on average 3.1 dealerships before buying vs. 2.5 visits for the slightly older Gen Xers and 1.9 for older-still baby boomers.

Helms said millennials tend to be thorough with online and in-store vehicle research, making trips to dealerships a key part of the shopping journey.

But after the experience, they said they were much more likely than their older counterparts to avoid interacting with salespeople in the future for fear of high-pressure sales tactics. Fifty-six percent said so vs. 49 percent for Gen Xers and 37 percent for baby boomers.

Helms said millennials head to dealerships thinking they’ll have a laidback Apple Store experience and end up not wanting to go back. “That reflects their dealership experience,” Helms said.

Read the Deloitte Gen Y survey here (PDF).

Amir Efrati:

Google Inc., which has been working on software to help major automakers build self-driving cars, also is quietly going around them by designing and developing a full-fledged self-driving car, according to people familiar with the matter.

In recent months, Google has held talks with contract manufacturers to build new cars to Google’s specifications, said the people familiar with the matter. The move came after Google’s talks with big car brands about incorporating its technology into their vehicles failed to yield a partnership, one of these people said.

Google also has a novel idea for what it could do with these cars. The company has considered ways to sell self-driving vehicles to individuals. But it also has focused on the potential for an autonomous car it designs to become part of “robo-taxi” services that pick up passengers on demand, these people said. Whether Google would try to operate such services on its own is unclear.

Via Andy Assareh.

Brian Palmer:

Today, approximately 177,000 Americans will visit a doctor, even though they have absolutely no symptoms. There is no standardized procedure for the annual health exam. Some doctors limit themselves to a brief interview and a once-over with the stethoscope. Others add-on some useful, or at least arguably useful, preventive health procedures like mammograms, cholesterol checks, and prostate-specific antigen tests. Many order a series of laboratory tests that are unnecessary and often counterproductive in healthy adults, like a complete blood count or urinalysis.

The annual health exam is a venerable tradition, stretching back to the late 19th century—those heady days of medicine when doctors overestimated their own ability to cure disease, and badly underestimated their tendency to cause it. We’re now in the evidence-based era of medicine, and there’s little evidence that annual exams provide any benefit. So here’s a free bit of advice: If you’re not sick, don’t go to the doctor.