The 500 Club: Horsepower Hits New High Luxury Cars Get Engines With Nascar-Like Power; The Hit to Your Insurance Bill By GINA CHON Staff Reporter of THE WALL STREET JOURNAL January 12, 2006; Page D1 As mass-market manufacturers are refocusing on fuel economy, luxury-car makers such as BMW AG, Porsche AG and Toyota Motor Corp.'s Lexus are heading the other way, introducing models with 500-plus horsepower engines. Engine size and power have been creeping up for several years in models including DaimlerChrysler AG's Dodge Viper SR10 Coupe, which was introduced last year and has a 500-horsepower engine, and General Motors Corp.'s 505-horsepower Chevrolet Corvette Z06, also launched in 2005. Now, the expanded range of high-performance vehicles means consumers who care about having Nascar-like power will have more options from luxury-car makers that generally haven't been synonymous with horsepower. Nissan Motor Co.'s Infiniti, for example, is proceeding with a production version of the concept Skyline GT-R, which has 500 horsepower. The fastest car in Infiniti's current lineup is the M45, which has a 335-horsepower V8 engine. Even Ford Motor Co.'s Volvo, known more for safety and durability, wants to be seen as having credibility in the performance area. Volvo's new C30 concept has a five-cylinder engine and 260 horsepower, with an ability to travel from zero to 60 seconds in six seconds. The Lexus LG-A concept car Despite having sticker prices as high as $200,000 or more, these cars are selling. Vehicles in the $100,000 price range usually sell from several hundred to 1,000 models a year. But sales of the 507-horsepower BMW M5, which was unveiled at last year's North American International Auto Show in Detroit and has a starting price of $81,200, hit 1,742 vehicles in 2005. That performance is encouraging other car makers to roll out models with equally powerful engines. As 500-horsepower engines become common, and car makers look to surpass the 600-horsepower mark, it will be difficult, if not impossible, for consumers to drive these cars to their full potential on average roads. And there are some other possible downsides to owning these high-powered vehicles. Cars that go this fast have gas mileage down in the teens. The Porsche Cayenne Turbo S, for example, registers an estimated 13 miles per gallon in the city, according to the car maker. Such gas-guzzling is frowned upon by environmentalists and fuel-efficiency proponents. And insurance rates for these ultrafast cars can run much higher than average. AUTO SHOW COVERAGE See complete coverage of the North American International Auto Show in Detroit, including our News Tracker. .. Motor City Rides: See a slideshow of auto makers' newest models and designs. But luxury-car makers see room for sales growth this year, particularly in the high-performance segment, because the combination of a luxury car's smooth ride and a sports car's engine power can be attractive for car buyers. At this year's auto show in Detroit, Porsche showed off the Cayenne Turbo S, which has 520-horsepower and can travel from zero to 60 mph in 4.8 seconds. The sport-utility vehicle went on sale Jan. 4 at a starting price of $111,600. The standard Porsche Cayenne has a V6, 250-horsepower engine and can travel from zero to 60 mph in 8.5 seconds. The new BMW M6 has a 500 horsepower, V10 engine and can travel from zero to 60 mph in 4.5 seconds. That will be in showrooms this spring with a sticker price of $96,795. Not to be outdone by its rival, the new Mercedes S600 has a V12 engine and 510 horsepower that can travel from 0 to 60 miles per hour in under five seconds. And this vehicle doesn't even come from Mercedes's AMG line, which includes performance-enhanced versions of standard Mercedes vehicles. The S600 will hit showrooms in April and will be priced in the $130,000 range. The current model goes for $128,725. A typical Nascar engine, by comparison, has roughly 600 horsepower. Each unit of horsepower, which measures the power of an engine, is the amount of energy required to lift 550 pounds one foot in one second. Lexus is considering whether to build a sports vehicle similar to the LF-A concept, which was unveiled at last year's Detroit show. The concept had a 500-plus horsepower engine and could produce a top speed of 200 miles an hour. Lexus General Manager Bob Carter said the Japanese luxury brand wants a sports car because it raises Lexus's cache and would enhance its image. But Mr. Carter knows that because consumers don't equate Lexus with speed, it will have to be careful in how it launches a sports vehicle so it is seen as a credible entry. Mercedes S65 (above); BMW M6 (below) A 500-plus horsepower Lexus would make the 395-horsepower, V8 engine in the Maserati Quattroporte look slow. But Jim Selwa, president of Maserati's U.S. office, said just because there are more car makers in the performance segment doesn't mean there will be more consumers looking for those vehicles. He added that car makers such as Ferrari and Maserati are doing well because they have a credible reputation for performance. At the Detroit show, Lamborghini showed off the Gallardo Spyder, with 520 horsepower, up from the 500 horsepower in the older version. Its flagship vehicle, the Murcielago, already goes faster at 580 horsepower. Jaguar says it will have the engine technology to develop a 500-horsepower engine in about two years, emphasizing that the luxury brand for now is more interested in "refined performance" than horsepower. Infiniti is building a production version of the concept Skyline GT-R, which has 500 horsepower and it may come out in 2007. Infiniti General Manager Mark Igo said although speed is important, how the car handles and performs under increased horsepower must also be taken into consideration. Car makers acknowledge there may be limits to how far they can go in horsepower because of safety issues, among other considerations. But some are already moving up from the 500 horsepower. The near future will see 600-horsepower-and-up engines across a variety of vehicles. Some are already there. At the Detroit show, Mercedes showed off the new S65 AMG, with a 612-horsepower, V12 engine, that goes from zero to 60 miles per hour in under 4.5 seconds. The current S65 AMG is priced at $169,775. "That's probably close to our limit in terms of horsepower," a Mercedes spokesman says of the new S65 AMG. "But it's up to the market to sort that out." Write to Gina Chon at gina.chon (AT) wsj (DOT) com
