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By on March 5, 2008

monkeyboy_375×500.jpgIn the past 10 years, more than twenty-five thousand drivers have been caught by a speed camera in Chideock (pronounced ‘Chiddick’). According to the UK's Daily Mail, a location marking one part of the road’s 30mph zone was defined as “Seatown Road.” Problem: there’s no such place. The road’s real name is “Duck Street.” The discrepancy came to light when Alan Dawe appealed his speeding conviction. The judge in the case threw out the ticket, ruling that "We cannot be sure the stretch of road is [speed] restricted.” The Dorset Safety Camera Partnership (DSCP) has admitted that thousands of motorists were fined £60 in error. If all of those drivers appeal, the partnership would owe them £1.5m (U.S. $2.97m). Shouldn't the points be removed from offenders' licenses and the money be refunded automatically? And what about raised insurance premiums? And let me guess where the refunds will come from (now that the money's already spent): taxpayers. Meanwhile, guess what Auto Express discovered when they asked 100 city councils how they were spending the money from a multi-million pound “road safety grant?" Yup, speed cameras.

By on March 4, 2008

jason-002.jpgCredit where credit's due. When I told our ME Frank Williams we needed a second podcast to cover the blog posts that Justin and I missed, he suggested we have a rotating guest commentator. (Not literally, of course.) While other TTAC writers and industry celebs will get their turn to share their dulcet tones and intellectual perspective on the day's news, I thought I'd start with ex-Chrysler PR flack Jason Vines. When Vines was spinning for ChryCo, he had well-earned reputation for a confrontational style and, uh, that's about it. (What more do you need anyway?) Now that the ailing automaker has put PR under HR (that's Human Relations for our non-cubicle-dwelling audience) and Vines has moved on to Compuware, I wanted to find out if he'd mellowed. You be the judge. 

By on March 4, 2008

traffic_lights.jpgWhen I was a kid, a friend's father would flash his brights whenever we were at a stoplight. "They have light sensors, so when you hit 'em with hi beams they think more cars are waiting and change faster." I once asked a city engineer about flashing your brights at stop lights. His response, "What?!?" Even adults get caught up in automotive mythology. As Frank Williams reported, the Tesla Roadster is fast becoming a mythological creature, a kind of four-wheeled Griffin. Or have a look at Mr. Wilkinson's rant about the need for robocars, which deconstructs the myth that giant SUVs are safer than smaller, more nimble machines. (I've long been of the opinion that the Caterham Se7en is the safest car on the road. Perfect visibility, massively maneuverable, way better than average stopping distances and the ability to quickly accelerate away from pending danger.) Care to explode some automotive myths?

By on March 4, 2008

f6g1.jpgHyundai Chairman and CEO Chung Mong-koo was convicted in Korean court for embezzling some $100m in company funds. Thanks to Korea's corporate crime-friendly legal system, Chung didn't spend day one (day woo?) in prison. While Hyundai's profits soared under Chung's leadership, indignant shareholders are baying for blood. Moral outrage? Nah. Hyundai's stock growth slowed to six percent last year in the wake of the scandal, well below the Korean benchmark index of 32 percent in the same period. Chung and his son Eui-son (who heads Kia Motors, so add nepotism to the score card) hoped to deflect public criticism by donating over $1b in stock to the public. Only they haven't done it yet. Most of the funds Chung removed from Hyundai's corporate coffers were spent on a slush fund to bribe public officials, which at least partially explains Chung's continuing freedom. It may also explain why many institutional investors appear to be standing behind Chung. Meanwhile, a minority group of shareholders is preparing a lawsuit claiming damages stemming from embezzlement and other mismanagement. This is so not a good thing.

By on March 4, 2008

n127013.jpgReuters reports that Ford is developing a new business plan for Volvo, which would require allow the Swedish subsidiary to operate on a more independent basis. Citing slides posted to the company's website– which will accompany a presentation to analysts at the Geneva Auto Show– the report indicates that Volvo's return to "sustainable profits" is "the top priority." Not a bad plan, considering the persistent rumors that Ford had shopped Volvo around without garnering a single serious purchase offer. Whether the "appropriate business arrangements" can really improve Volvo's lousy recent performance remain to be seen… especially if this moves turns out to be some kind of accounting shell game. Jaguar and Landie sale in trouble. Volvo hung out to dry. Will no one relieve me of these brands?

By on March 4, 2008

scirroco.jpgIn news sure to disappoint the stateside fanboys who've waited decades for a replacement to Vee-Dub's Corrado, Wolfsburg announced that the new Portuguese-built Scirocco coupe will not be coming to the U.S. According to Bloomberg (the news agency, not the Mayor of NYC, although he owns the news agency), VW's sales and marketing chief Detlef Wittig told reporters at the Geneva Auto Show that "this car would fit the U.S. market but at the current exchange rate we wouldn't make any money." The currency differential combined with VWs ambitious plans for an American resurgence (1m units per year or… less!) have led the Porsche-controlled company to look at sites for a new American manufacturing plant. (Wittig said VW should be done with its tax break hunt search by June of this year.) No word on whether the Scirocco embargo is part of a scheme to get coupe-loving 20-somethings to buy more savings bonds to prop up the free-falling dollar. But we doubt it.

By on March 4, 2008

bentley-r-type-woody-gr-fa-lr.jpgGreen has always been an essential part of the Bentley experience… lots and lots of green. But today the British automaker unveiled its plan to join the wave of manufacturers offering more environmentally-friendly drivetrains. You know; eventually. The German-owned British brand will begin its transformation from maker of CO2-spewing playthings for the over-moneyed set to eco-conscious planetary champions by offering a flex-fuel option next year. ("James, take the Bentley down to London and fill it up with ethanol"). By 2015, Bentley will provide E85 compatibility across their entire lineup (all six models). And while you're recovering from that shock, the Bentley Boyz will begin development of an unspecified drivetrain that will deliver 40 percent better fuel efficiency than their normal gas-sucking mills. In the short term, Bentley says its socially responsible engineering efforts will focus on enhanced engine management; new, improved transmissions and drivelines and weight reduction. Torque about greenwashing…

By on March 4, 2008

14133.jpgWhile GM's Board of Bystanders was busy congratulating GM CEO Rick Wagoner and CFO (now COO) Fritz Henderson for the company's "tremendous progress," its suppliers were busy suspending ops. Automotive News [sub] reports that the American Axle strike that has idled six soon-to-be-seven GM plants is taking it toll throughout GM's supply chain. "Lear Corp., the seating supplier to GM's light trucks, has laid off 700 employees and idled one plant, spokesman Mel Stephens said. 'Where GM production is down, we are down,' said Stephens. He said four more plants are operating at reduced speed and more closings are expected." Interior supplier (and Chrysler suitor) Magna International says it's "adjusted its production schedules." The plant closures' ripple effect on other suppliers is sure to spread quickly and widely. As of this writing, no new negotiations between American Axle and its United Auto Workers members are scheduled. Even if the strike was resolved today, restarting production would be an expensive and time-consuming process, that GM and its other suppliers can ill-afford.

By on March 4, 2008

ford_f150.jpgYesterday, we reported that Mexico is protecting its car dealers by limiting American used-car imports to model year 1998. Today, The Houston Chronicle reports the import/export of choice: the ’98 Ford F-150. “You can throw the Blue Book away," says Luis Esparza, the sales manager for used-car dealer H.E.D. Sales in Houston. Over at Houston’s (“cash only”) Caribbean Auto Sales, one Bernardo Garcia figures a $5k ‘98 extended cab F-150 in good condition just went up by $500 to $700. Roddy McMichaels, owner of Longhorn Motor Co. says the Mexican stricture is no biggie; he seldom sells running cars or trucks destined for Mexico. "You'll see them on U.S. 59 hauling two or three of them,” he reveals. ”Pickups with 400k miles that they buy for $300. They take them down where labor and parts are cheap and fix them up." I guess used-car dealers near the border might want to stock up on ’98-model-year flatbed trucks, too.

By on March 4, 2008

2008011154530101.jpgAs we reported yesterday, Ford's sale of Jaguar and Land Rover to India's Tata Motors is far from a done deal. In light of today's confirmation that the transaction will not go through this week as predicted, it looks like Tata's reach may exceed its grasp. Reuters questions the role the British brands would play amongst Tata's lineup of commercial-duty trucks and compact to sub-compact cars. Another issue: Tata's credit rating. It turns out that Moody's and Standard and Poor's placed Tata on review for a credit rating downgrade when the Indian firm emerged as the frontrunner for Jag/Landie. Not coincidentally, Tata's stock slid ten percent during its six month courtship of Ford's cast-offs, while the rest of the Indian stock index grew by nine percent. Speaking in Geneva, Rattan Tata was quoted as saying he remains "reasonably confident" that the deal will go through. Reasonably? Uh-oh.

By on March 4, 2008

avanzar_92bw9216.jpgAsked about the American Axle strike, GM Marketing Maven Mark LaNeve said "I don't know how long this thing is supposed to last. It's not a threat to our daily business. If it persists for a long time it could be." Yes, that's factually accurate. But it sure sounds like LaNeve couldn't give a shit. It's a far cry from something along the lines of, "We deeply regret this disruption at one of GM's trusted, longtime suppliers. For the sake of our employees and customers, we're hope to see a speedy and amicable resolution to this dispute." And at almost the exact same moment that LaNeve was poo-poohing an industrial action that's hurting GM's other suppliers, Toyota was handing out its 2007 Top Supplier Awards. "The awards were presented at Toyota's Annual Business Meeting and Awards Ceremony at the Northern Kentucky Convention Center, bringing together approximately 500 North American suppliers. Toyota hosts this annual event to communicate objectives for the current year, recognize top supplier performance for the prior year and enhance relationships… Suppliers' commitment to continuous improvement is key to achieving Toyota's long term focus on quality and value." 

By on March 4, 2008

gm-belt-alternator-starter.jpgShowcased in the Saab 9-X concept at Geneva, GM's unveiled their fifth hybrid powerplant: an evolution of their first-gen Belt-Alternator-Starter system (a.k.a. BAS or "mild hybrid"). The Detroit News says upgrades include a new, Hitachi-sourced lithium-ion battery, a new electric motor, the addition of "brief electric-only propulsion" and improved regenerative braking. At Geneva, GM hybrid guru Steve Poulos said these upgrades do not an American Revolution make. "We took the same [first-gen BAS] system and put it on steroids." GM's next gen system is three times more powerful than the existing BAS unit. That said, Poulos admitted that the new system will improve a BAS-equipped vehicle's fuel efficiency by one to two miles per gallon. CEO Rick Wagoner says this new drivetrain is "important step to make hybrid technology more affordable to a wide variety of consumers." Baby steps indeed. If GM wants to catch-up with Toyota's Synergy drive, they'll have to do better than this.

By on March 4, 2008

dscn0045.jpgWhen a bankruptcy court judge ruled that Chrysler could not strip bankrupt supplier Plastech of its proprietary tooling, it looked like the two were stuck with each other. And yet, a surprisingly short extension to their interim supply agreement signaled more conflict ahead… and here it comes. The latest supply contract is set to expire at midnight on Monday. The Detroit News reports that rather than extend it again, Chrysler will appeal the ruling and try once more to remove their equipment from the Plastech plant. In their court paper, ChryCo's lawyers postulate that "the court's decision may have significant implications for the way automakers and their suppliers do business in the future." True dat. And if Chrysler's appeal fails? Industry watchers say it could put Detroit's suppliers at a huge advantage over their customers… and potentially trigger another wave of supplier bankruptcies.

By on March 4, 2008

exo94.jpgI once read that a successful PR department is one that has managed to make the press an extension of its own. As bad as this idea may sound for an independent-minded consumer, I couldn’t help thinking that it now works the other way around. With the Internet obliterating buff books’ editorial relevance, many magazines have shifted their sales focus from their readers, the traditional customers, to the PR departments of the companies whose ad bucks support their survival. In this respect Greek car magazines are hugely successful.

By on March 4, 2008

mythbusters.jpgTesla's Spitfire Spinmeister wants to set the record straight on all the "myths" surrounding the Tesla Roadster. To that end, Daryl Siry has started a "Mythbusters" section on the company's web site blogs (no word on what Discovery Channel thinks about this). The first myth exposed: the Roadster won't have airbags. The second myth: the Roadster is a converted Elise. Daryl points out that the Roadster shares about seven percent of its parts with the Elise, while Lamborghinis share up to 10 percent with Audi. [NB: Lambo and Audi are all part of the same company, while Lotus and Tesla are separate entities.] The third myth is… wait a minute… there is no third myth. So Siry would "love to hear your thoughts on other myths to address in future installments." How about it, folks? Since we know Daryl reads us, he'll see any Tesla myths you list here. Hell, he might even respond (in his own special way). And just to show how fair-minded we are, we won't mention the myth that TTAC would get a test drive (started by Siry on this very site) or The Mother of All Tesla myths: production will start in summer 2007.

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