Sunk costs: What opponents of combustion engines could learn from economists

Bruno von Rotz
10/31/2020

Renault Ondine (© Bruno von Rotz)

In economics, there is the term "sunk costs". There is no really good translation for this, because "sunk costs" sounds kind of weird. The point is that money that you have already spent is often no longer relevant for future decisions.

For example, if I have paid far too much for my home, this can have no influence on the question of whether I should replace the carpet or not. The carpet costs exactly the same and whether it is needed is determined by the condition of its predecessor.

Or if I have bought a very expensive radio set, but the transmission of the frequencies necessary for its operation is stopped, then these former costs will have no effect on whether I buy an expensive or cheap replacement set, at least from an economic point of view.

You could think similarly about CO2 emissions from cars. If a car has already been built, then the CO2 emissions produced are history and are no longer relevant when deciding how much damage this car does to the environment. A new battery-electric car that is yet to be built must therefore be measured in terms of CO2 emissions, including the emissions generated during construction, against those generated by the pure operation of a petrol car that is already on the road.

If we had to immediately replace all cars with petrol or diesel engines currently on the road with newly produced electric cars, then the resulting CO2 emissions, which in the case of battery-electric cars are generated to a large extent during construction, would initially significantly worsen our carbon footprint. However, the situation is different when you compare cars that are to be newly produced, and here, of course, cars with petrol engines also produce significant CO2 emissions.

To cut a long story short: a classic car that is used sparingly will have a significantly lower impact on the environment over many years than a newly produced electric car that is driven a lot. And with synthetic fuel, the calculation could turn out even more in favor of the classic car, but only if the sunk-cost principle is abandoned ...

Share this article with your friends!

The joy of detail

Bruno von Rotz
10/30/2020

Titelblätter AMS 1961/1962

Cover pages like those of "auto motor und sport" in the early 1960s would be unthinkable today for a consumer magazine that wants to sell significant numbers of copies at the newsstand. At least that's what publishers think. And they probably have good reasons and plenty of statistics to prove it.

However, almost 60 years ago, people obviously still felt that the headlights of a Fiat 2300 or the cockpit of a Jaguar E-Type were interesting enough to convince readers to buy the magazine.

Aesthetically, these covers were certainly convincing. But they showed little of the actual content of the magazine. It is also important to note that the magazines back then were much thinner and filled with fewer different hot topics than today.

Nevertheless, we would be interested to know whether our readers would give a magazine that only shows an interesting detail of a car on the cover a chance at the newsstand ...

If you have an opinion on this, then simply comment on this blog. We thank you and look forward to hearing from you!

Share this article with your friends!

B.A.T. Alfa Romeo trio sold for 15 million

Bruno von Rotz
10/29/2020

B.A.T. Alfa Romeo 1900 Bertone 5, 7, 9d von 1953/1954/1955 (© Ron Kimball - Courtesy RM/Sotheby's)

When it was announced on October 16, 2020 that the Alfa Romeo B.A.T. 5 (1953), B.A.T. 7 (1954) and B.A.T. 9d (1955) prototypes would go under the hammer together at Sotheby's Contemporary Art Evening Auction on October 28, 2020, it was certainly the surprise of the autumn auction season, if not of the 2020 auction year.

Sotheby's had already had good experiences in previous years with offering a classic or special car as part of an art auction, but the BAT trio fitted in much better with the collection of modern works of art than, for example, the Formula 1 racing car a year ago.

Zeitgenössische Kunst / Sotheby's am 28. Oktober 2020

The auction began at 6 p.m. New York time, and despite an estimated value of USD 14 to 20 million, the three cars were not even the most valuable lot. That honor went to the untitled Rothko, which had an estimate of USD 25 to 35 million. However, it was barely sold.

Tisch von Carlo Mollino, versteigert durch Sotheby's am 28.10.2020

Instead, there was an almost epic bidding war for a table by Carlo Mollino, which was finally knocked down as lot 16 for USD 5.15 million (before surcharge) instead of USD 2 to 3 million. And this was by no means the only art lot where the sale price was significantly higher than the estimate.

Sotehby's in New York, London und Hong Kong

There was no on-site audience, but bidding was possible in three locations around the world (New York, London, Hong Kong) via telephone call or the Internet. Pre-bids were also possible. But it was the Sotheby's people on the phone who determined the outcome of practically all the lots.

When lot 38, the Alfa trio, finally came up after more than 90 minutes, it was of course no longer the art experts from Sotheby's but the car specialists from RM/Sotheby's who were on the hot line.

Gebote werden per Telefon entgegen genommen

The three Alfa Romeo show cars from 1953 to 1955, designed by Franco Scaglione and built by Bertone to withstand the wind as little as possible, were called for USD 12 million. This resulted in a relatively short bidding skirmish and the hammer fell at USD 13.25 million. B.A.T. 5, 7 and 9d were sold together for USD 14.84 million (equivalent to EUR 11.27 million, CHF 12.05 million).

Sotheby's - B.A.T. Trio verkauft

The new owner paid around five million American dollars per car. This makes each of these three cars individually one of the most expensive Alfas of all time; as a trio, they certainly make it into the top 5 and probably form the most expensive car lot of the 2020 auction year combined. Yet they have neither a six, nor an eight or twelve-cylinder engine under the hood, but a classic four-cylinder. The basis for the B.A.T. prototypes was the Alfa Romeo 1900, presented at the Paris Motor Show in 1950, and its subsequent faster and sportier versions.

Finally, one wonders whether the trio will remain together in the future, as it is unclear whether the individual vehicles would not be worth more in total than the trio. We'll see, but it would be nice to be able to admire the three concept cars together from time to time in the future ...

P.S. The result has of course found its way into the Zwischengas auction database !

Share this article with your friends!

An adjustable sash that did not have the desired effect

Bruno von Rotz
10/28/2020

Lancia Fulvia Competitione Ghia 1969/1970 (© Ian Wells - Courtesy RM/Sotheby's)

Alejandro De Tomaso had big plans at the end of the sixties. He tried to persuade Ford to take over Lancia and hand over control of the Italian car manufacturer to him. The plan did not work out and Lancia was bought by Fiat.

In order to convince Ford to take over Lancia, De Tomaso initiated several projects at his design and coachbuilding company Ghia. The Lancia Fulvia Competitione was one of them. However, the body was not just modified. The engine was installed lower down and the rear rigid axle was replaced by independent suspension. Lightweight construction and aerodynamics were taken to the extreme, including an extendable and adjustable rear wing for more downforce.

Heckflügel Lancia Fulvia Competitione Ghia 1969/1970 (© Ian Wells - Courtesy RM/Sotheby's)

The Competitione (or Competizione) was intended to excel both in everyday use and on the racetrack, but it is doubtful whether it would really have achieved this compromise.

Tom Tjaarda was responsible for the design and he himself described the Lancia as one of his best designs.

Well, not everyone liked the car, but it certainly caught the eye at the presentation.

Lancia Fulvia Competitione Ghia 1969 in Genf

On the occasion of the 1969 Geneva Motor Show , Automobil Revue wrote :
" Symbolic wings according to Ghia: Ghia attempts to combine aerodynamics with aesthetics in this Lancia Fulvia 1600 Competitione. The hydraulically extendable stabilizing fins can only partially fulfil their task on this front-wheel drive car."

The yellow Fulvia remained a one-off and has survived. It is now set to find a new owner for £140,000 to £180,000 at the RM London Online Only auctionuntil October 31, 2020. It will be interesting to see.

Share this article with your friends!

How the term Gran Turismo has changed over time

Bruno von Rotz
10/27/2020

Maserati 3500 GT von 1965 (© Bruno von Rotz)

On Sunday evening, the latest episode of Top Gear aired on BBC 1 in prime time, the theme was "best of british". In the usual style, the three presenters were asked to drive a British "Gran Turismo" (GT for short) and complete a few challenges. The selection was then interesting, as a four-door Bentley twelve-cylinder, a McLaren GT and an Aston Martin DBX came along. What these three cars have in common is that they are powerful (over 500 hp) and fast. But they could not have been more different. A sedan, a super sports car and an SUV? Does this betray the idea of the "Gran Turismo"? It was argued that all these cars would actually fulfill the desire to travel comfortably and quickly. And there is something to that, but let's look back a little.

The Gran Turismo really came into vogue at the end of the 1950s. Sports cars such as the Maserati 3500 GT or the Ferrari 250 GT allowed high average travel speeds, offered high reserves for overtaking maneuvers, but at the same time had enough space. Comfort was not (completely) neglected either.

In the sixties, the GT concept was perfected, cars such as the Lamborghini Espada or the Ferrari 365 GT 2+2 came out and represented an alternative to the first mid-engined super sports cars. After all, nobody seriously wanted to use a Ferrari LM or even a Miura as a touring sports car for the family. However, the Maserati Bora already offered more comfort. Fast saloons such as the Mercedes-Benz 300 SEL 6.3 or the Maserati Quattroporte also existed, but they mostly (still) served other needs.

However, this segment became increasingly popular and in the 1980s cars such as the BMW M3, the Mercedes-Benz 190E 2.3-16 and the Lancia Thema 8.32 caused a sensation. Being able to travel very fast had long since ceased to be the privilege of sports cars, and the four-door models had followed suit.

In the nineties, all-wheel drive passenger cars with an off-road look began to emerge. The BMW X5 and Mercedes-Benz ML followed in the footsteps of the Range Rover, which had created the SUV segment together with Jeep offshoots. And these comparatively high-bodied 4x4 saloons became faster and faster. Even Porsche squeezed into the steadily growing niche, followed by Maserati, Lamborghini, Bentley and most recently Aston Martin. Sophisticated electronic aids and powerful engines ensured that these semi-trucks could also complete a fast Nürburgring lap, making them suitable for fast and comfortable travel, just like the GT sports cars of the past.

Perhaps the sports car has simply developed too little to be on a par with saloons and off-road vehicles today? In any case, Enzo Ferrari would be turning in his grave if he had to see what 2.5-ton alternatives his sports cars have to compete against today.

Perhaps it would be time to give the label "Gran Turismo" a new meaning, one in which the sports car would once again have a place?

Share this article with your friends!

Almost a stalemate - classic car privileges only from the age of 40 (Question of the week)

Bruno von Rotz
10/26/2020

Frage der Woche 167 - 30 oder 40 Jahre als Oldtimer-Startalter?

The discussion has been going on for quite some time. Because classic cars are getting younger and younger, or rather the younger age groups are threatening to dominate, the question must be asked whether classic car privileges should only be granted from an age of more than 30 years, as is currently the case in Germany (H license plate) or Switzerland (veteran registration).

We asked Zwischengas readers a "question of the week"about this and the answers from the 380 or so survey participants almost surprised us a little.

47 percent were in favor of raising the entry age to 40, while 45.6 percent were in favor of leaving everything as it is today.

However, there were also 7.4 percent who were in favor of neither. We have to speculate here, but perhaps some of these respondents would prefer a more differentiated solution, where the frequency of vehicles would also play a role.

In view of the shifts towards electromobility and the omnipresence of electronics, however, perhaps completely different criteria will become relevant in the future.

Here is the evaluation of the answer in graphic form:

Frage der Woche 167 - Antworten

And of course, we have already posed the next question of the week , which revolves around the topic of whether classic/young car owners are more likely to reduce or increase their stock in light of corona and other restrictions. We are curious.

Of course, all previous evaluations of the "Question of the Week" can still be read in the corresponding topic channel.

Share this article with your friends!

Once upon a time in America

Bruno von Rotz
10/25/2020

Ford Bronco versus Mercedes-Benz 300 (© RM/Sotheby's / Montage ZG)

The RM/Sotheby's auction of the so-called "Elkhart Collection " took place in Indiana, USA, over the last two days. During the first auction day on Friday, a 1956 Mercedes-Benz 300 c (lot 1201) and a 1967 Ford Bronco (lot 1202) went under the hammer one after the other.

1432 examples of the luxurious Mercedes saloon were built in the 1950s, all of which had the straight-six engine under the hood, which also powered the 300 SL in modified form. Such a luxury four-door cost DM 22,000 in Germany, for which you could buy two Alfa Romeo Giulietta or almost three Borgward Isabella Cabriolets. For a 300 SL Gullwing you would have had to pay just DM 7,000.

Right after this Mercedes came a first-generation Ford Bronco from 1967. Of the 1967 model year alone, 14,230 were sold, making this the worst production year of all, with the exception of 1975, up to and including 1977, when the second generation was announced. And yes, a Ford Bronco was not cheap, but of course it was still much cheaper than the successor to the Mercedes-Benz 300, for example.

Two cars could hardly be more different than the Mercedes-Benz 300 and the Ford Bronco and yet they competed with estimated values at almost the same level. However, while the Ford Bronco was slightly cheaper, the bids went up to USD 55,000, while the Mercedes-Benz was knocked down at USD 53,500.

A story that could probably only happen in the United States of America ....

We have already analyzed and summarized the results of the RM Elkhart auction in a comprehensive article.

Share this article with your friends!

Happy Birthday Griffith!

Bruno von Rotz
10/24/2020

TVR Griffith 500 von 1996

We almost missed the opportunity to send our congratulations. But to whom? Peter Wheeler passed away a while ago (2009). The former oil millionaire was responsible for the creation of the TVR Griffith back then. Legend has it that Wheeler and his designer stood on the highway to find suitable rear lights for the car. In the end, they chose the lamps from the Vauxhall/Opel Vectra, which were simply mounted upside down.

TVR Grifith 400 von 1992

The TVR Griffith was unveiled at the British motor show in Birmingham in September 1990. The Automobil Revue wrote briefly: "The latest sports car design from Blackpool appeals with its harmonious lines, compact construction and powerful engine (3.9 V8, over 240 hp), which promises a lot of driving pleasure."

However, the car could only be purchased a year later and the engine capacity was soon 4.3 liters (Griffith 430) and a few years later five liters (Griffith 500). This meant that the car had around 320 to 340 hp, which for a sports car weighing less than 1.2 tons and the size of a Mazda MX-5 made for quite a sporty temperament.

Of course, like its predecessors, the Griffith was built by hand in Blackpool, and I myself was one of the buyers of a brand new Griffith 500 in 1996. And I was allowed to visit the factory when my car was half-finished and was able to photograph the "Griffith" painted on during construction, which very few TVR buyers ever saw because it was covered with carpet as part of the finishing process.

Griffith-Fratze auf dem TVR Griffith 500 von 1996

So now the TVR Griffith has become a classic car, although most of the cars sold at the moment are still capable youngtimers.

Happy Birthday!

Share this article with your friends!

When tuners make cars more beautiful

Bruno von Rotz
10/23/2020

Alfa Romeo Spider von 1983

Tuners didn't always have the best reputation in the 1980s; some of their creations were seen as an attack on good (design) taste. And this has changed very little to this day, although there have always been good counter-examples.
When we recently heard about the plans of the tuner Prior Design to redimension the new huge kidney grille on the BMW M3/M4, we were able to see some merit in this.

BMW M3 vom Hersteller und vom Tuner

The drawings (renderings) certainly look interesting, as a comparison we made with the original from BMW shows.

But there are also interesting examples from the past. For example, the Alfa Spider "Aerodinamica" shown above was launched in 1983, which did not appeal to all fans of classic Alfa design language with its large-volume rubber rear end.

Alfa Romeo Spider von 1983 - Heck

Tuner Zender, however, knew what to do and presented a body kit for the Alfa in 1986. The Automobil Revue reported at the time:
"Zender's in-house designer Günther Zillner found it a particularly appealing task to also carefully take the Alfa Romeo Spider in its current form into the cure. In fact, this car, designed and built by Pininfarina, no longer meets with the undivided approval of all fans. The Zender/Ziller changes are extremely subtle: the front was given a GRP spoiler bumper into which the traditional Alfa grille is integrated, the front apron is continued in the side moldings, and the rubber lip on the rear spoiler edge gives way to a three-part, much flatter spoiler made of PUR foam."

Zender Alfa Romeo Spider 1986

The individual parts - there were also alloy wheels - could be bought separately, and the rear spoiler cost DM 361.00. Quite a few people took advantage of this.

Now, of course, one wonders whether an Alfa Spider "Aerodinamica" modified with Zender parts back then is worth more or less today than the original with the Pininfarina rear end ...

Share this article with your friends!

Are the better eighties vintage cars from the early nineties?

Bruno von Rotz
10/22/2020

The youngest classic cars are currently from the eighties. Soon we will start to nibble on the nineties. Cars from the nineties don't have the best reputation in the classic car scene because they are accused of having electronics that are difficult to maintain and huge numbers.

However, a comment from a reader recently reminded us that we need to take a much more nuanced approach to this topic. What the commentator was saying was that, especially at the beginning of the nineties, there were many eighties cars that were now at the peak of their maturity. As an example, he cited the Audi 80 B4 as an improved B3.

In fact, many model series were built from the eighties into the nineties at a time when the urge to save money had not yet taken over everywhere. Lopez, for example, who was known for his rigid cost control, joined Volkswagen in 1993. Other car manufacturers also only began to cut costs everywhere at some point in the nineties. So is the period of the early nineties particularly interesting for classic car buyers?

We would be interested to hear what Zwischengas readers think about this topic. We look forward to many comments!

Share this article with your friends!

Zwischengas has been publishing a daily blog post here since 2010

For more entries, please use the navigation by year and month.