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By on October 23, 2007

header_img2.jpgIn accordance with standard industry practice, the Mercury brand's website lists whatever promotions and rebates are ongoing. They are, of course, only telling buyers part of the sales story. The "Ford for Sexy Urban Professional Ladies with Style" brand is also sending out rebates via email called "private cash." It's not clear who is receiving the $500 coupons and why, but several have gone to people that don't have Ford family vehicles. They are more than just a standard incentive; each coupon has a recipient-specific code that's not transferrable outside of the household. This kind of targeted rebate has some benefits for the company. For one thing, the offer stays outside the general news stream (at least, it did until right now). For another, it's been reported as "making recipients feel really special and sort of warm inside." Not surprisingly, the Mercury Mariner Hybrid (a.k.a. the only Merc with a modicum of interest from the public) is excluded from the under-the-table incentive. If I was shopping for a car, I'd definitely take one of these golden tickets down to the Mercury dealership and test drive a Milan V6 (wait, already did that).

By on October 23, 2007

tribecad_1_560px.jpgRelax. The BLANK awards will continue exactly as planned. Same nomination process (now closed), same writers’ comments, same press release, same no-holds-barred excoriation. It’s just that our ad guy (yes, we have an ad guy) is adamant: TWAT is an acronym too far. Potential advertisers (yes we have potential advertisers) can’t abide the locker room humor. I’ve made an executive decision to capitulate on this “issue” for the greater good (i.e. money), because TTAC needs more resources (i.e. money) to survive and thrive. In other words, needs must, and a pile of rolling garbage by any other name will still smell so sweet. Meanwhile, can you please help us devise a new, less sophomoric name?  Suggestions below ASAP. We’ll use it tomorrow to start the official voting. Never a dull moment, eh?

By on October 23, 2007

a965c88f-8cdf-4053-a5f7-8de2ca85d1c2.jpgHow in the world did the United Auto Workers (UAW) boss Ron Gettelfinger think he could get his Chrysler members to ratify their proposed contract without providing job guarantees? Did he seriously believe a $3k signing bonus would convince his otherwise carrot-less union brothers and sisters to surrender their right to graduate into cushy “non core” jobs? Or was Gettelfinger blindsided by his own ego; figuring he could yell “roll over” and “play dead” at 45k well-paid autoworkers and make it so? Either way, the question must be asked: what the Hell is going on?

By on October 23, 2007

fukui.jpgToyota's not the only one questioning GM's logic in pushing for plug-in hybrid technology. Honda's CEO Takeo Fukui told the Wall Street Journal that plug-ins don't have enough environmental benefits to interest his company. In fact, GM's Hail Mary Chevy Volt makes little sense. In a news conference, Fukui characterized plug-in hybrids as "a battery electric vehicle equipped with an unnecessary fuel engine and fuel tank." He added that Honda could easily develop a plug-in hybrid but won't because "I don't think that would contribute to the global environment, to reduce [global warming gas] emissions." Yes but– Fukui hinted that Honda is developing a battery electric vehicle. "Assuming that we can come up with a really high-performing battery that we are working on currently, I think a battery electric vehicle [that uses such battery technology] would actually be a plus from an environmental point of view." Given Honda's engineering track record, GM and Toyota both better watch their backs.

By on October 23, 2007

handshake.jpgEven as Chrysler workers consider rejecting the contract their union is shoving down their throats negotiated on their behalf, reports of a secret deal between the United Auto Workers (UAW) and Chrysler have emerged. Reuters says that the UAW VP General Holiefield is telling Local leaders that he's made a secret deal with Chrysler to keep certain U.S. plants open if they'll ratify the contract. One of the plants mentioned: Chrysler's enormous Sterling Heights, Michigan assembly plant. Curiously, Chrysler declines to comment on the mysterious agreement– which would virtually guarantee ratification of the current contract. The big question remains whether the membership trusts the union enough to believe it can deliver on a handshake deal that isn't written into their contract.

By on October 23, 2007

wwwreuterscom.jpgReuters reports that Mazda is betting on the so-called hydrogen economy: "We have to prepare for sustainable zoom-zoom." After issuing the PC catch phrase of the day, Mazda's head of R&D Quality and Powertrain Development admitted there are "technical challenges." But Nobuhiro Hayama is stoked; he figures rotary engines (remember them?) can run on hydrogen. In fact, Hayama says no changes are required in either manufacturing techniques or materials. You want dual fuel? A dual tank hydrogen rotary engine could use both hydrogen AND gasoline. Meanwhile, Bloomburg.com says the catalyst used in hydrogen fuel cells could be an issue. The news service quotes Derek Engelbrecht, an executive at Impala Platinum Holdings, who reckons "global platinum supplies will probably fall short of demand by 205k ounces this year." Those planning to pay for Mazda's hydrogen Wankel needn't worry: Amex' platinum card members won't be affected. 

By on October 23, 2007

0504_52006_cadillac_xlrvpassenger_door_side_marker_view.jpgI’d just slipped the nozzle into my Cadillac XLR-V. A dark Merc SL550 rolled up, its driver eyeing my Bowling Green Batmobile. As he busied himself with the credit card ritual, every few seconds his eyes darted sideways to the Caddy. “Mind if I look inside?” He sat behind the wheel, running his fingers across the interior surfaces. “Nice,” he pronounced. “Comfortable. And it’s easy to see out. There isn’t as much storage as my SL, but I’d be OK with that.” As he exited the XLR-V, he issued his verdict: “I wish I had the courage.”

By on October 22, 2007

12087_2_1.jpgSharing a platform with a Ford Focus is something you’d probably want to keep under wraps; kind of like that cousin with webbed toes and twelve fingers. Fortunately, the latest Volvo V50 is actually the ritzy cousin of that much-lauded obscure object of desire (at least for Americans): the Euro Focus. As the V50/S40 accounts for a third of Volvo’s global sales, this is a good thing. But do good genetics make the V50 a good car, or does this smorgasbord of multinational automaking represent a sad swansong for Ford’s about to be divorced Swedish brand?  

By on October 22, 2007

night-scene-of-atlanta-downtown-overlook.jpg"Oh, the poor unions!" says Max Fraser, a "2006 Intern" now scribing full time at The Nation. The budding curmudgeon supposes that The Big 2.8 will be the death of the unions (not the more likely murder-suicide). That's because Detroit's robber barons just keep squeezing those wages and benefits. Unfortunately, his explanation of how this is happening, and why we all should be worried is… well, let's just say Mr. Fraser has penned the Chrysler Sebring of rants. In a sweeping example of internally-inconsistent analysis, Fraser manages to blame Toyota and Honda for paying their workers more than UAW guys make– and then urges the UAW, for the good of the workers, to get into Toyota and Honda's factories as soon as possible. Fraser also manages to insult and put down outsourcing, insourcing, rural areas, and the "Third Worldization of the American South." Gee, with all those corporate headquarters in the South (Coca Cola, Nissan, Wal-Mart, Saks Department Stores, Home Depot, UPS, Bank of America, Lowe's, Wachovia, Sprint-Nextel, just to name a few), a $3b biotech industry in North Carolina's world-class research triangle, and the busiest airport in the world, the "Third World American South" sounds like a pretty productive place to me.

By on October 22, 2007

explorepahistory-a0j3z5-a_349.jpgWe've been highlighting the dangers of placing the United Auto Workers (UAW) members' multi-billion dollar health care provision into the hands of union bosses since the idea was first mooted. The Tribune Chronicle (Warren, OH) reports that one of the nation's longest running union-controlled VEBAs (Voluntary Employees' Benefits Association) is about to run dry. After twelve years doling-out health care payments for Copperweld Steel retirees, the VEBA will be out of cash in "a few more years"– some 15 or so years shy of its goal. Cooperweld's VEBA ran into trouble when the company filed for bankruptcy. Hamlin Holdings purchased Copperweld in 1995 and renamed it CSC. In 2001, Hamlin stopped making payments. In 2007, CSC went Chapter 7 and that was that. "No one imagined that CSC would go bankrupt," says VEBA trust committee chairman Earl Thomas. "If we were doing it differently, we would have made sure we had secured promissory notes." The Trib article also characterizes the template for the VEBA movement, the U.S. Steel's agreement, as something of a mixed blessing. "Many of our members are not satisfied,’’ Bill Luoma, president of Steelworkers Organization of Active Retirees, told the paper. "[Health care] is a high cost item for many individual retirees, especially when compared to what they were responsible to financially contribute before the company relinquished its responsibilities for retiree health care.’’

By on October 22, 2007

chrysler-sebring-05.jpgEven as Chrysler talks of cutting models, closing dealerships and ramming through a new contract with the United Auto Workers, their dealers claim they're hopeful about their future. This according to USA Today, whose reporter attended a no-holds-barred meeting in Las Vegas earlier this month between 75 percent of Chrysler's dealers and the automaker's top brass. Specifically, Chrysler CEO Robert Nardelli and Toyota renegades VP Jim Press and Marketing Maven Deborah Wahl Meyer (Tom LaSorda must have been busy with union negotiations) held an open mic Q&A session with the front line troops. Dealers says they came away feeling that, for the first time in years, someone at headquarters is listening to them. Chrysler's dealer council member John Schenden was ecstatic. "As a dealer body, we are more optimistic than we've been in the last 20 years." Reflecting his newfound confidence, Schenden recently bought land to expand his dealership. I guess he hasn't seen TTAC's TWAT nominations yet.

By on October 22, 2007
mark1.jpg“This contract is garbage. It’s a suicide pact. It lowers pay and continues to let the company outsource work. I’m not losing too much because I’m going to retire soon, but what about the next generation?" That's the no-holds-barred opinion of "John," a Chrysler worker at the Jefferson North assembly plant in Detroit, Michigan. It arrives courtesy the World Socialist Web Site, who polled a sampling of the union members who [eventually] voted down the proposed Chrysler – UAW agreement. "Craig" felt "The UAW is trying to be a big powerbroker on Wall Street at our expense. They must think that we are illiterate and unable to read what the contract says." "Charles" expressed his displeasure with the proposed two-tier wage system. "The older you get and the more seniority, you should be able to get those [higher paying] jobs. Now they are going to be paying half the wages. I just don’t think it is fair.” "Juli" was upset about the idea of a union-controlled health care superfund. “It scares me to think that the union is going to be in charge of the retiree health benefits. There is a huge amount of money waiting for them." Mark Fiedler sees the same downside. “I am totally against the VEBA. The way the union does things it probably will not be around in 10 years. Then we will have nothing left.” Whether or not the UAW contract goes through, the two-tier, job guarantee-deficient proposal is leaving a lot of disgruntled workers in its wake.
By on October 22, 2007

spirit_18foamhand.jpgBloomberg reports that GM outsold Toyota for the first nine months of this year, to remain the world's largest automaker. GM's strong showing overseas gave them a total of 7.06m sales, compared to Toyota's 7.05m. Both companies are seeking to ameliorate a slump in their home patch by expanding into emerging economies. GM's fastest growing markets in the third quarter: Latin America, Africa and the Middle East. The General showed double digit sales increases in these territories, along with solid gains in the Asian-Pacific region. Meanwhile, GM's North American sales sank 6.6 percent for the year. While ToMoCo's NA sales are increasing, the Japanese automaker's growth stateside has slowed over the past three months. Toyota expects to overtake GM for worldwide production this year, as GM cuts production of trucks and SUVs. In sum, GM projects total worldwide production will hit 9.285m vehicles in 2007. Toyota predicts they'll produce 9.34m units.

By on October 22, 2007

a123_in_prius.jpg"'People who took interest in electric vehicles are showing interest in plug-in' vehicles, Mr. Asakura said, through a translator. 'But my wife does not accept charging [the vehicle] every day.'" Speaking to The Wall Street Journal in Tokyo, Toyota's hybrid vehicle system-engineering division's project manager poured a torrent of cold water on GM's belief that their plug-in hybrid Hail Mary Volt will be practical, affordable, desirable, reliable or doable. Other than that… Toyota says its exploring plug-in possibilities using its existing nickel-metal hydride battery-powered Prius. An undisclosed number of Prii are headed for two undisclosed California universities for testing. Oh, and Toyota will also look at lithium-ion technology for their Synergy Drive system, in accordance with an undisclosed timetable. In any event (or lack thereof), Toyota's NOT down with GM's plan to build a car that motors around on battery power alone, then switches to internal combustion. If Toyota develops plug-in hybrids, they plan on powering the car on electricity for short bursts, alternating with power from the gasoline engine. 

By on October 22, 2007

aero-x.jpgIf one word describes Saab’s recent past, it’s underinvestment. Back when the Swedish brand was self-sustaining, they operated their R&D department on a sko sträng. Despite the limitations, Saab created distinctively styled, innovatively engineered automobiles. Then, in 1990, GM bought half of Saab. Ten years later they bought the rest. Since that time, Saab has faced the same financial limitations as before, but without the managerial freedom to overcome them. Late in 2007, it looks like Saab is finally getting the money– and respect– they need. 

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