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Special feature: Why does Saab matter?

If this is a perfect world, Saab would be producing the 2nd generation 9-5 sedan and Sportcombi wagon for 2012 model year. The 9-3 Griffin, final edition of the current model, already for sale in the showroom. Their CEO Victor Muller already shown up with new concepts in the Frankfurt auto show. Unfortunately, we don’t live in a perfect world.

Unlike many carmakers which have seen the end of the road, Saab has taken most headlines in both automotive and financial news in the last years. Why?

Because Saab is a niche carmaker which have brought many joys and innovations to the automotive industry.

1969 99 was the first vehicle pioneered with the mainstream use of turbocharged engine. As most carmakers have joined the ranks of efficient and powerful 4-cylinder turbocharged engine, which provide the fuel economy of a small 4 while having the power of a 6, Saab was the first company who pioneered this move. Even when Saab was under GM’s umberlla, those genius in Trollhattan have invented the assymetrical turbocharged 6-cylinder engine, which improve the low-end torque while eliminating the annoying turbo lag, in 9-5. When it comes to safety feature, Saab has invented active head restraints.

Saab has always been about form-follows-function in Scandinvania language, its the perfect car for the anthesis of the German lowest common denominators. An individualistic brand with plenty of character, driving fun and practicality. The 1995 9000 Aero, with its proven 225hp B234 2.3 liter 4-cylinder turbocharged engine, could well be the perfect description of a “sport utility vehicle”. Its docile and nimble, rides comfortably with full-size interior accommodations. When it comes to dynamic abilities, it didn’t lost anything to then Audi C4 S6 and BMW E34 M5; with the advantage of hatchback practicality.

Its hard to mention Saab without the iconic 900. 900 was basically a 99 riding on a sleeker looking body shell and better crash protection, in flavor of US crash standard. 900 was available from a 2-door coupe, 4-door sedan, 3-door and 5-door hatchback to, what is remain to be the best proportioned convertible to date. Its wraparound front screen, hockey stick roofline, upright driving position and ergonomic cockpit are remain the definition of what this Swedish brand is all about. 900 Turbo SPG, known in the rest of the world as 900 Turbo 16V, with black on black. It continues to be one of the best sports sedans ever produced in the last century. While Saab products have its faults like manual gearbox with low throw and lumpy clutch, lack of proper footrest and refinement might not up to German snuff; its the perisable character which have made them stood out.

For many Saab devotees, the introduction of the 1995 NG900 was the beginning to the end of Saab. The unrefined Opel-derived V6 engine, which need to change timing belt at an immature 40000km. It doesn’t have the delicate dynamic charm of its predecessor while the styling remains controversial. The revised 1999 improved many of the shortcomings. 9-3 Viggen remains a very desirable purchase. In 2004, when Saab decided to put hatchback on their chopping block by introdction of the NG9-3. There are so many have already thought Saab has ended in the wrong direction, by chasing Audi and BMW instead of doing of what they do best: producing hatchback.

Despite of the GM-izing of those Saab products, there are merits which remain Saab in both 9-3 and 9-5. Fun-to-drive, tossable, comfortable riding quality, spacious and torquery turbo rush. However, they have lost the ingredients which have made its forebears so special to drive. They have lost the personality of what made Saab stand out among its German peers.

The biggest reason for Saab’s downfall was GM’s unwilling to invest in this historical brand. When all the German heavyweighters: Audi, BMW and Mercedes. To a lesser extend. Acura, Lexus and Infiniti. Even recently, Cadillac and Hyundai. Have the capacity and cash to invest to improve their products generation after generation. Take Audi, for example. They have evolved the A4, their bread-and-butter model, from 1996 to current. Each year, they have new improvements made to the core product to make it competitive and class-leading. The same goes for BMW 3-Series and Mercedes C-Class. All of these are Saab 9-3′s intended competitions. To make it even worse, GM supposedly to replace the OG9-5 back in 2004. Thanks to General’s beancounters, they have forced Saab to produce a pathetic facelift while continue to ride on its aged architecture. Its not until 2011 before an all-new 9-5 debuts.

It would be ashamed to see such an iconic carmaker closed down its doors. The world will become a boring place without all those quirky Swedes with center ignition and upright aircraft-inspired bucket seats. Both the 1988 900i and 1993 900S 16V, which my family owned, will always held a special place in my heart.

Special feature: A farewell to the Ford Focus

When the current Focus is being replaced by an all-new one sometimes in 2011, the outgoing version would go down the history as the “most recalled car in history”.

The original Focus launched with its breakthrough edgy styling and sharp handling, which were lack in its Escort predecessors. Both the 3 and 5-door hatchback look really nice. Focus wagon looks decently while the sedan just looks plain ugly, as it looks like a trunk added as an afterthought for those sedan-loving American. The facelifted in 2008 was a disaster except for the addition of Ford’s highly praised Sync system.

During the early stage of Focus lifespin. Its SVT is simply a gem to drive. It provides one of the most balanced FWD chassis in the planet, with enough power to gun for those Golf GTI 1.8T, Civic SiR and Mini Cooper S back in 2003. If its not because of Focus’s poor historical record of recalls, SVT should have been better received by the hot hatch crowd. On the other hand, when Ford announced the discontinuation of wagon in 2007. All the Ford dealers are trying to get the last of their hot-selling compact wagon on their lot before production running out.

A decade has passed. Ford has finally developed a global compact car platform. Those of us in Canada and US will finally received the same Focus as our European counterparts. Ford has promised the new Focus will be class-leading when it comes to dynamics abilities, performance and interior quality. Given the Mazda3, which shares the same platform as the incoming new Focus, already considered as a benchmark as a whole package. New Focus will have a big shoe to fill in the competitive compact segment. It will be interesting to watch how will it match up with both new Civic and Elantra.

Special feature: A farewell to VW New Beetle

How times have changed a fashionable car. When VW launched the New Beetle back in 1998, there were huge dealer mark-up with lengthy waiting list. The New Beetle was launched with a ancient 2.0 liter 8-valve 115hp, with both 4-speed automatic and 5-speed manual. The power issue was addressed by the addition of a 150hp 1.8T and 90hp 1.9TDI later in the lifespin.

At a time when BMW has redesigned the New Mini Cooper for 3 years and about to go on a revision, VW is about to phase out the aged New Beetle after 12 years of production on the previous Mk4 platform. That’s at a time when VW Golf is on Mk6 platform while Mk7 coming in very soon.

The New Beetle handles relatively well with emphasize mostly on ride comfort. Interior ergonomics and use of materials were oft-criticized early in the lifespin, however, VW has addressed most of the issues after the facelift. Engine wise. 2.0 mostly work as a commuter powertrain. TDI for utmost efficiency and 1.8T is the best of performance.

The next New Beetle needs to be more affordable. As we have seen in the most recent Beetle convertible’s price tag, its far from being affordable as it reached 40 large grand. One can get an Eos convertible with newer technology on a more modern platform. Its ironic when a once “People’s car” has become a “Rich People’s car”.

Special feature: A farewell to the Hyundai Accent

What’s the difference between cheap and nasty versus inexpensive and high-quality? That’s exactly the difference when Hyundai replaced the unremarkable Excel with the Accent back in 1994. The 94 Accent GS was the first Korean car I have ever driven. Even if it was based on aged Mitsubishi technology, it was fun-to-drive and well-made by then Korean car standard. It was the first Korean car that started to shake the cheap econobox image.

However, it was until year 2005 when Hyundai launched the 3rd generation Accent, which have put Hyundai as a carmaker into the map of high-quality and great value-for-money into consumer’s mind. Its a lot-of-value-for-money with its less than $20k starting price. Although its not as practically layout as Honda Fit nor as fun and feisty as Mazda2, its able to hold its own merits with lower admission price. Hyundai’s own-developed Alpha engine series is much more refined than the original Mitsubishi unit. It continues to be available with both 3-door hatchback or 4-door sedan.

As Accent enters its 4th generation, Hyundai has joined the rank of high-elite carmaker after a wave of exciting products. The next Accent will joint the elite list of great products ranging from Genesis, Sonata, Tucson and upmarket Equus. Even if Accent is the entry-level entrant, it has proved Hyundai is a car company which has the ability to offer good product that’s focus more on value and quality rather than cheap and unreliable. It was the first car that consumers start to change their mind on those unspectacular Pony, Stella, Excel and Scoupe; vehicles that Hyundai introduced during their dark era. In only 2 decades, Hyundai has transformed from a carmaker with products that people need to those that people desired to own.

Special feature: A farewell to VW Passat

Being different isn’t always a good thing in the auto industry, especially when you are competing in the most competitive segment. That’s the mid-size family sedan category currently dominated by the Accord and Camry, less so with the Altima and Malibu; while the newcomers like Mazda6 and Fusion are working overnite to get your hard-earned money.

While Passat is one of the most recognizable family cars in the European market, it never been in any of the general audience’s shopping list anywhere in North America. Passat, unlike Golf and Jetta, never have the loyal following. From the early B3 Passat G60 Syncro to today’s PQ46 Passat CC 2.0T, those cars appeal to those who are looking for Teutonic driving fun while want to be different than those Camcord which are driven by lowest common denominators. Passat Variant offers amazing practicality and versatility, as well as an affordable European wagon alternative to those expensive Audi Avant and Mercedes Estate.

When Passat finally receives a facelift in a year or so, it will definitely not make it to North America. As VW is preparing a North American-exclusive NWS, which offer similar size and packaging to those Accord, Camry and Altima. VW, just like Nissan, has learned the hard way when being different never worked in the most conservative segment in the industry. Nissan has seen Altima’s sales volume double, while being at the top 10 of the sales chart, since the revolution to a larger and more spacious version in 2002. VW wishes they could do the same with the incoming NWS.

Here in Directshift, we have always been smitten by Passat’s combination of German technology, Teutonic driving experience, practicality, understated elegance and true value it provides with the overall package. Its also a car that we have recommended to many friends and relatives. We were coming so close to purchase Passat 2 times in the past. Whether the incoming NMS has the abilities to appeal both to enthuisasts and general audience alike, time will tell.

Special feature: A farewell to Volvo V70

When it comes to building traditional station wagon with utility in mind, those who are seeking to buy European would definitely have Volvo in mind. That’s similar to what you have to buy a Subaru when buying a traditional Japanese station wagon with AWD.

Everything else from Volvo’s 245, 745 and 765 have always been the definition of what an utility vehicle stands for. While they aren’t as stylish as Audi Avant, Volvo’s boxy wagons have always been practical, highly utility, handles decently with good enough powertrains to match their unique character. 850 T5-R sportswagon used to be the first wagon to enter BTCC in the early 90s with great result. As with 850 T5-R, 850R and V70R AWD; Volvo wagons are as good as it gets.

When Volvo invested heavily into the XC70 Cross Country, which is basically a jacked-up V70, in North America. They have put less resources into traditional wagon like V50 and V70. We have seen the hugely successful XC60 and XC90 crossovers, which are extremely practical thanks to Volvo’s expertise on buidling utility wagons. In 2011, Volvo will be dropping V70 in flavor of XC60 and XC70 due to “customer demand”. Although the incoming V60 based on all-new S60 will be more stylish and less practical given its rounder looks, its pretty much unsure whether Volvo will bring it across the ocean.

We can pretty much count how many station wagons left in the market right now. Impreza has changed from wagon to hatchback. Outback has replaced Legacy wagon. 5-Series Touring won’t be coming over in flavor of the pointless X6 and 5-GT. Mercedes has firmly believed GLK can taken the place of the C-Class wagon, although E-Class wagon will be debuting soon. Audi remains commit to their Avant even with limited engine choices. Good luck if you can find some Passat wagon in VW showroom. Even Saab isn’t sure whether 9-3X will replaced 9-3 SportCombi when this quirky Swedish brand reestablish itself by the end of this year.

Perhaps most consumers don’t even know those crossovers are basically a guessied-up wagons……….

Special feature: A farewell to Honda S2000

When Honda came out with the S2000 back in the millenium, it was to celebrate company’s 50th anniversary. Its a truly remarkable roadster with front midship engine layout, a high revving 2.0 liter 4-cylinder engine that is capable of producing 237hp and as reliable as any Honda products. The docile and tossable nature of this superb engineered platform has given many of those European roadsters a run-for-their-money, especially Porsche Boxster. The S2000 has forced Porsche to came out with an uprated 2.7 and 3.2 liters during 986 era. It has also forced BMW to come out with a proper M Roadster, Mercedes had to introduce an SLK320 and SLK32 AMG while Audi can’t come out with a 3.2 V6 Quattro TT roadster soon enough.

The high-revving 2.0 liter DOHC engine is simply a music to the eyes when revving into 7 and 8000rpm, during the VTEC kicks in. The aura of the VTEC screaming is even more entertaining than all those turbo and supercharger spooling up. All Honda has done without losing their hallmark quality and reliability. When Honda introduced a more civilized 2.2 liter during facelifted in 2004, although it has more torque down low, its high-revving character remains intact. S2000 has the sweeter manual gearbox I have ever driven, only taken a backseat to DC2 Integra Type-R.

When it comes to ride and handling compromise, S2000 simply aces it. Its not only S2000 is a Honda formula 1 produces for the street, its ride quality is surprisingly civilized without beating the hearts out. The steering is surgicially precise with awesome road feel, something that you would have thought its engineered by Porsche. What really makes the S2000 so special is it doesn’t share any platform with other Honda silibings, its a dedicated chassis specially engineered for this roadster. The delicate balance of the chassis is nothing but superb. In terms of harmony balance between powertrain, chassis and civilization, S2000 remains the one to beat even after 9 years.

First we have seen the lost of Prelude, Integra/RSX and NSX. S2000 will soon follow all other great Honda sports cars into the sunset. Leaving Civic Si and CSX Type-S as the sportiest offerings in Honda line-up. They better come out with great sports cars, or Nissan will be leaving Honda in the dust with their amazing Z and GT-R. Its also sad if Honda is going Toyota’s direction, as an appliance producer instead of an enthuisastic and engineering-driven performance carmaker. :(

Special feature: Forecast for the auto industry in 2010

2009 was a year that most carmakers would rather forgotten, as we have seen the biggest sales drop and many of those storied brands have gone. As we are looking forward to 2010, here are what we are predicting in coming years.

1) Mercedes and BMW will continue to sell most (by Mercedes and BMW’s definition of “most” equals 98%) of their cars through cheap lease rates and artificially high residual values, even if their resale value have taken a beaten over the last few years due to supply over demand on used market.

2) Those ungainly looking hatchbacks, crossovers…whatsoever (BMW 5-Series GT, Honda Accord Crosstour and Acura ZDX) will have huge incentive to move out of dealer lots by mid-year.

3) Toyota/Lexus’s quality will continue to drop, as they kept beating up their suppliers on corner cutting. Toyota/Lexus of the 2010 is no longer made like it was in 1992. While those early 90s Camry and Previa can last forever, god knows how much quality problems will have with those 2010 Matrix and Sienna.

4) Given Chrysler’s lack of core product introduction in 2010, while Fiat’s reestablishment in North America market is a big question marks. We wonder how long can Chrysler last?

5) Hyundai and Kia will continue to eat into the market share currently dominated by Honda and Toyota. When you can get a Hyundai Genesis V8 for the same price as an Acura RL, which one would your rather get?

6) Audi will continue to have sales growth with exciting product offensive without those incentive to move metals like its cross-town rivals: Mercedes and BMW.

7) After Audi, Subaru’s successful attempt of mainstreaming their once-quirky affordable AWD will continue to have sales growth. Who would have thought the dismiss of flameless Subaru and parking light switch on top of steering column can please both enthuisasts and general audience?

8 ) This year will be the big year of small car. As we will see Mazda2 and Ford Fiesta will be going to challenge the class-leader: Honda Fit. If VW is really going to bring the Polo, its going to be a fun party.

9) Even if Saab is able to be saved by Spyker, we can only foreseen this iconic Swedish brand being an Euro-only brand for the first few years. As GM nearly completely tranished the Saab franchise in North America, completely destroyed the resale value by annoucing its “wind down”.

10) Ford will continue to be America’s #1 domestic carmaker with their exciting new products. Not only they have created a niche with the excellent Transit Connect, both the new Taurus and Fusion have got rave reviews. Incoming Mustang with new 5.0 liter V8 is going to be an awesome beast. And that 2.0 Ecoboost 4-cylinder…… :)

Special feature: A farewell to Saab 9-5

All good things have to go. After 12 years and half million units sold, the final 9-5 finally rolled off the assembly line in Trollhattan, Sweden.

When Saab introduced the current 9-5 back in 1997, it was hailed as Sweden’s contender against benchmark mid-size luxury sedans dominated by Germans. Even though its based on previous Opel Vectra, or unremarkable Saturn L-Series, it feels nothing else like those chassis silbings. Instead, it feels every bit as fun-to-drive and Swedish as every Saab does. Anything else from the entry-level 2.0t S to flagship 2.3T Aero with manual gearbox, these are the luxury sports sedan that handle as anything else in its class with comfort to boot.

The 1st facelift bought out “boost control” on Aero with revised trim levels. Instead of calling S, SE and Aero. Saab renamed those Linear, Arc and Aero. It also brought a higher quality interior and better performing powertrains to the party. Saab’s awesome seats remain intact during the revision. The facelifted version is definitely the best Saab and 9-5 ever produced back in those days.

When Audi came out with the current A6 in 2004, BMW came out with current 5-Series in 2003; we were wondering when will Saab bring out its new 9-5. GM’s beancounters decided not to give Saab enough funding to develop a new 9-5, instead, they gave it a poor nose job in 2006. Its not only the styling is ugly, 9-5 is no longer competitive in that segment. Although Volvo’s S80 is one of the worse cars we have ever driven in DirectShift in the last 3 years, it remains a more competitive car than the granddaddy 9-5 which already on the market for over a decade.

The next 9-5 looks to be a very promising entry into the mid-size premium segment, just like its predecessors do. Both 9000 and 9-5 were wonderful cars to begin with, it was just Saab (especially GM) have milk them too long before a complete rehaul. Even at the end of the lifecycle and one very ugly facelift, we still love 97-09 9-5 today. We only hope we will love the next 9-5 even more. :D

Special feature: Saving the best for last

If I am a betting man, I would bet every cents on all the best vehicles made from General are usually from the divisions which will be dropping soon. We have witnessed the excellent Intrigue, Aurora and Alero before GM dropped Oldsmoble a couple of years ago. When GM announced they are closing both Saturn and Pontiac divisions, its time for us to pay the last respect for the best cars ever come out.

Vehicle: 2009 Saturn Astra XR 5-doors
Price as tested: CDN$25900

The Saturn Astra, which has been our favourite in our annual car of the year. It also has beaten both Toyota Corolla and Matrix, in our small car above $20k segment. Its basically an European Opel Astra rebadged as a Saturn without any changes. Its fun-to-drive, practical, stylish and got electronic stability control standard across the board. That’s something unheard of in its segment. Most of all, its attractively priced and has to be the best small car has ever produced by GM.

Vehicle: Saturn Aura XR-6 with Sun and Sound Pkg
Price as tested: CDN$35150

Another Saturn, which is Aura, is loosely based on Opel’s mid-size Vectra, in Europe. Except for the rather cheesy interior materials, the Aura is a blast-to-drive right from the base 4-cylinder to the Greenline hybrid version. It handles as good as any fine European sports sedan with refinement and sportiness that have never associate with any GM mid-size sedans of the past. Unfortunately, when Chevrolet introduced the awesome Malibu a year later, it makes the Aura all but redundant because both are riding on the same platform. With Chevrolet receives more marketing budget and interior packaging than the Saturn, it makes the Aura one of the most underrated sedan on the market. What a pity. The Aura was so good, it has beaten out Camry and Altima as our 2006 family car of the year.

Vehicle: Pontiac G8 GT
Price as tested: CDN$42335

Over the years, Pontiac has been known for ugly body claddings with interior materials that made from cardboard. Since the introduction of the Solstice roadster, Pontiac has started to transform itself into more of a performance division that it used to be. But it wasn’t until the Holden Commodore derived G8 arrived last year.

With its 50/50 perfect weight distribution on RWD chassis, G8 handles as good as any European sports sedan costing twice as much. While the base 256 hp V6 has done its job relatively well, its the flagship 6.0 liter V8 on the GT that truly make the G8 flies. With 361hp and 385 lb/ft of torque, a wonderful steering feel and a well-planted chassis, G8 could well be the best performance bargain. It also looks understated elegance with a touch of sportiness. Unfortunately, GM decided to launch G8 at a time when gas prices were at an all-time high. Even with the demise of the Pontiac division, General has promised to save the G8 for the Chevrolet division. As Commodore has been selling in Middle East as a Chevrolet Lumina for years.

Special feature: What should GM do to restructure themselves?

With the Bush adminstration announced to provide short-term loan of 17.4 billions of bridge loan to both General Motors and Chrysler Corporation today. GM will be the one to watch as Chrysler, whose future remains in doubt, given their lackluster product portfolio. As for Ford, this company already on the restructuring process of cutting dealers and improving their products significantly in recent years. It should be the most healthy and strongest down the road.

So, what do we at DirectShift think of how GM should restructure themselves in order to survive? GM products have improved significantly in the last couple of years, since Bob Lutz and Rick Wagoner have taken the helm of this company. The biggest improvements have to be the exterior and interior styling, dynamic abilities, refinement, use of materials and level of fit-and-finish. Take the Chevrolet Malibu and Cadillac CTS, these 2 cars are head-and-above those of their unremarkable predecessors.

With General currently having 8 brands but with less than 20% of market share, they have to reduce to 3 brands maximum in order to substain its profitability. It isn’t like 2 to 3 decades ago when GM still had 50% of market share to substain the profitability of so many brand overlapping each others.

Here is what we think which brands should go and stay within GM’s portfolio:

Hummer: With full-size SUV sales in the toilet, this brand should ditch as soon as possible. It has absoultely no viable future holding for Hummer whatsoever.

Saab: Before GM became the major stockholder of this once-proud Swedish niche carmaker, Saab products have flair, character, performance and dynamic qualities with its tiny but interesting 2 product line-up. This brand is the classic example of how an American giant mismanaged an unique Swedish brand. They simply have milked their current line-up for way too long with infusion of new technologies and designs that used to be the hallmark of Saab. The rebadging of previous Impreza and Trailblazer as 9-2X and 9-7X also have pissed many long-time Saab loyalists without gaining new customers. While 9-3 and 9-5 were once considered as contenders to German heavyweights when launched couple of years ago, they haven’t aged gracefully with all of their competitions received new design or already facelifted. GM should sold Saab back to Swedish company, by maintaining its uniqueness and niche. We are pretty damn sure Swedish firm will know how to manage Saab far better than what GM did. Give this company enough resources, their engineers are able to come out with innovations to stand out.

Pontiac: This is another GM brand that should be going away. The Solstice can give it to Chevrolet as Corvette “Junior” and G8 replaces Impala as Chevrolet’s flagship sedan. There aren’t any vehicles in this brand that aren’t overlapping with other brands.

Buick: Except for Mainland China, Buick doesn’t have much brand recognition and cachet anywhere in the world. While keeping the exciting Mainland Buick portfolio like the upcoming Opel Insigina rebadged Regal, take the entire Enclave/Lacerne/Allure with it to China. Kill this brand in North American market.

GMC: GMC is basically a rebadged Chevrolet Truck. This is the classic example of how GM loved to have product overlapped each others. Kill GMC and leave Chevy Truck is more than enough. Even with only Chevy Truck, its market share and profitability are enough to substain its market share given both full-size truck and SUV sales are tanking.

Saturn: GM have got Saturn really really right in the last 2 years. This company will be well-served as an alternative to another affordable European brand: Volkswagen. All the Astra, Aura, Vue, Outlook and Sky are all great cars. It will also be served well for customers who want more European flavor as an alternative to more mainstream Chevrolet. Given Ford will be bringing the European models like the Fiesta and Kuga sometimes next year, By merging Saturn with European Opel, Saturn will likely be the one that customers will cross-shopped. Its going to be sad if GM decides to ditch this brand. As Saturn has the freshest and strongest line-up in the industry right now.

Chevrolet: This has to be the mainstream brand that GM needs to tackle Honda and Toyota. The new Malibu has proved to be a real contender in mid-size family sedan segment. The upcoming Cruze is going to be a hot contender. Electric car Volt, performance-oriented Camaro and Corvette all serve as its halo cars.

Cadillac: The new CTS has proved Caddy is coming back. CTS-V is a really wonderful sports sedan that can easily give any AMG, RS and M a-run-for-their-money. GM should market Cadillac as a comfort and luxury-oriented brand instead of performance-oriented brand, say Lexus/Mercedes versus Audi/BMW/Infiniti/Acura. Their core products should focus on both refinement and comfort. Leaving the V-Series to go after performance crowd is more than fine as halo cars. First the new CTS, the upcoming SRX also looks promising.