In yet another salvo in the UK's ongoing war on speeders, the British government is considering installing motorway cameras which track the average speed of individual vehicles. The move is aimed at those sick, twisted individuals who slow down for cameras only to speed up again after they pass the eyes in the sky. The new cameras would track the speed of a vehicle, and then compute its average velocity between two cameras on a given stretch of road. Although simple in conception, the new approach would be far more effective in convincing Britain's drivers that the smallest violation of speed limits would be instantly caught and penalized. The cameras have already been deployed for testing at road construction sites, and apparently can't be fooled by lane changes and other "evasive techniques."
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Bankrupt GM supplier Delphi announced yesterday that it had contributed $46m to its pension fund. It sounds like good news for a company struggling to emerge from bankruptcy– until you realize that federal law required a $369m contribution. The Detroit News tells us that despite Delphi having $3.3b in unmet pension obligations by the end of 2007– on top of this latest shortfall– the company will not be transferring pension obligations to the Pension Benefit Guaranty Corp. And don't blame Delphi Prez Robert Miller, because he tells us the ship is righted, and now needs only a few billion in funding to cover pension costs and ensure liquidity (couldn't we all say that?). With Appaloosa Capital pulling out of a planned $2.55b bailout deal, Delphi is considering suing them for a $250m "termination fee." Hey, if they stuck it all in the pension fund, they'd only be a few million from compliance with Federal law. Just like that.
The Detroit Free Press reports that workers have launched a strike at the Alliance Interiors plant in Delta Township. The strike comes after months of negotiations on the plant's first labor contract. The strike means that interior components will not be delivered to GM's Lansing Delta Township factory. Enclave/Acadia/Outlook CUV production will likely be idled there… soon. "I'm assuming right now that they (GM Lansing Delta Township) are being shut down," says UAW Local 652 President Chris (Tiny) Sherwood, noting that workers from other Lansing factories, including Cadillac's Grand River plant, have joined the picket line in solidarity. The Lansing Delta Township plant could face a strike of its own by as early as 10am Thursday, as safety and working condition issues there remain a sticking point in labor negotiations. If Lansing Delta Township goes off-line, other Lansing-area suppliers could see demand dry-up for their components. Ryder Logistics, Android Industries and Plastech are all facing work stoppages if Lansing Delta Township ceases production. With the American Axle strike already wreaking havoc on the General's supply chain, this strike couldn't have come at a worse time for GM.
We reported earlier that next-gen Phaetons would be coming stateside eventually, and now Auto Motor und Sport confirms that the Clarkson-approved uber-Passat's return to the US market in 2009 has been officially announced. The Phaeton was first introduced to the American market in 2002, when Ferdinand Piech decided that Volkswagen to match Mercedes model for model. The car RF called "as marketable as a Rolls Royce bread van" was cut from VeeDub's American lineup in 2006. Since its introduction, Volkswagen has sold just 33k of the stealthy sedans worldwide. News of a U.S. relaunch comes as VW estimates a 1300-unit increase in production of Ferdinand Piech's luxury car for 2008. Will the W12-powered Wolf im Schafspelz Kleidung sell any better than it did the last time around? Nein. But if you discount VW's down market dealerships, the fanatically engineered Phaeton (windshield wipers rest on alternate sides of the blades) could well be the best used luxury car bargain the U.S. has ever seen.
While talking heads like John McCain bob and wobble about the state of our economy, for the RV industry there is no doubt. It's recession time. Forest City, Iowa's famous Winnebego has seen their earnings fall by 67 percent this past quarter, after ten years of straight growth. The obvious reason not to buy a giant motor home: gas prices. As we saw yesterday, prices everywhere are up, up, up. Especially diesel. What kind of mileage does a typical RV get? Gas-powered homes-on-wheels manage about five mpg, whereas the diesel rigs average nine mpg. More troubling though, is the prospect that people aren't buying RVs because they can no longer afford big-ticket items. Especially as the typical RV owner is in the sweet-spot of the disposable income range: empty nest, soon to be retired boomers, aged 55 – 60. I mean, if not them, who? Cutting back on land yacht road trips because of a temporary spike in fuel prices is one thing. Not buying the behemoths in the first place is another. (As is buying your dream RV and then having a bank repossess it.) Bottom line: RVs might just be gigantic dead canaries in a very toxic coal mine.
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With U.S. dealers complaining that VW's new Tiguan SUV is too small and too expensive, the Boys from Wolfsburg are planning to launch a new Passat-based ute. Autocar reports that the new seven-seater will slot between the Tiguan and the Touareg, with Volvo's new XC60 as its main competitor. VW opted against doing a Nissan Quashqai +2 style stretch of the Tiguan or an Audi Q5 reskin in favor of adapting a next-generation Passat platform. We're talking shared components (especially with the Golf), transverse engines and the possibility of Skoda and Seat versions. Volkswagen has dispatched a crack team of marketers to scour the globe for the weirdest names the planet has to offer. (They set the bar with "Tiguan.") Any suggestions?
The EV game is getting nasty. We've heard about Tesla suing Fisker, now Earth2Tech reports that Tesla is being sued by Canadian supplier Magna for breach of contract. The suit alleges that Tesla failed to pay Magna for development work on its troubled transmission system. Transmission woes have long been the Achilles heel of the Tesla Roadster's development. Initial plans called for a two-speed transmission to be supplied by X-Trac, That unit was quickly proven incapable of reliably handling the EV's zero-RPM grunt. Tesla then went to Magna for a replacement two-speed– which proved equally unsuccessful. After attempting an in-house development, Tesla has given-up on the whole multiple gears thing in favor of the golf-cart elegance of a single-speed box. But wait, says Magna, we told you to try a single-speed solution in the first place. Not only did Tesla not listen, but according to the suit filed California, they didn't pay some $5.6m in development fees that Magna claims it was owed under the development contract. Oops. Better collect quickly guys, before you have to squabble for it in, dare I say it, bankruptcy court.
Ford's Toyota-poached (not in the culinary sense) marketing maven Jim Farley reckons we'll know whether FoMoCo's newly launched Drive One campaign is a success in five year's time. Farley told Advertising Age "We're really trying to remake the image of the company." And no wonder. "Jim Farley's moment of truth came when he told his Santa Monica, Calif., neighbors he was leaving Toyota for Ford. They told him his move was 'heartwarming,' but added that they wouldn't buy a Ford." Heartwarming? And what reason did Farley give for his neighbors decision to avoid The Blue Oval like the proverbial plague? "I realized they had gone past skepticism to apathy." Anyway, Jim'll fix it! "Mr. Farley said that according to a CNBC web survey of 609 respondents conducted after that first 'Drive One' commercial ran, 45% said they already liked Ford. Another 20% said the commercial didn't change their minds about Ford, but another 20% said it did and 15% said it might… Mr. Farley said it's 'pretty cool' that 45% of those polled said they liked Ford already. But there's clearly still a disconnect, he said, because the Ford brand has only a 13% market share. 'What's going on out there?' he asked." Anyone care to steer Mr. Farley in the right direction?
The Chevy Impala showed a 1.8 percent gain in sales in March. At the first of April, GM only had a 21-day supply on the lots. The factory in Oshawa, Ontario has been running three shifts with Saturday overtime for several months. So why are they suddenly cutting back on production? An industry source (yes, we have them too) tells us that GM's canceled Saturday overtime and laid off the third shift until further notice. Rumor has it the American Axle strike is affecting the plant; although it wasn't previously identified as one threatened by a parts shortage. The more likely scenario: Chevy's filled all its Impala fleet orders. With overall sales down 11.1 percent for the year, and the distinct possibility that Malibu sales are (as predicted) cannibalizing the Impala, GM's simply slowing Impala production to meet retail demand (or lack thereof). The sales numbers over the next few months will throw some light on the truth of the matter. We'll keep you posted.
"After the arrest of an illegal immigrant in connection with the murder of three students in Newark last summer, New Jersey’s attorney general, Anne Milgram, ordered state and local police to question the people arrested for serious crimes about their immigration status." The New York Times editorial board is down with that, as long as the police "ask about the immigration status of anyone arrested for an indictable crime or drunken driving, but not for minor offenses. They are prohibited from asking about the status of crime victims, witnesses and people requesting assistance." But OH NO. The Old Gray Lady reports that "Lawyers and advocates for immigrants say that they have received reports that some police departments, especially in rural areas, are routinely questioning immigrants who are not covered by the directive, including some who were simply passengers in cars pulled over for minor traffic offenses. These actions come dangerously close to racial and ethnic profiling." Shouldn't that be alleged actions? Anyway, it's enough for the NYT to call for New Jersey to "scale back police involvement in immigration enforcement." And yes, this is a car story.
Yes, Delphi CEO Steve "Take the money and then take some more" Miller is declaring mission accomplished. Automotive News [sub] reports the generous self-assessment– considering the recent collapse of the bankrupt parts maker's bailout plan. Not-so-coincidentally, Miller indulged in the entirely unjustifiable double-jointed back patting at the Automotive Press Association launch of his [twice delayed] autobiographical biz book: The Turnaround Kid. (Kid? Who's kidding whom?) Just in case you thought Miller was the unassailable captain of the ship that his book paints him to be, Miller revealed "he's not a big fan of his book's title — chosen by the publisher — because it suggests a 'tinge of arrogance.' The first title suggested for the book was Not Worth a Buck, a reference to UAW criticism and his $1-a-year salary during the first phase of the bankruptcy" [emphasis added]. Anyway, after declaring Delphi's exit from C11 a done deal, Miller takes a deep breath and promises that, well, it will be. "We will get it done. It won't get done in weeks. It'll be months, but we will get it done."
If the United Auto Workers (UAW) are iexpecting General Moneybags to "solve" the UAW strike using the Delphi solution (buyouts for everyone and you checks for free), they may be waiting a long time. Automotive News [sub] reports that the expected shutdown of the Malibu/G6 plant– due to lack of an AA-supplied part– ain'tgonnahappen.com. When asked when GM would run out of the part, supply guru Bo Andersson answered, "Based on the way I see it now, never." Bo added that his employer has "a good plan for handling the potential shortage" after they use up the supply of parts they "found " earlier this month. When asked if GM was receiving parts from another manufacturer, he declined to answer. But, Bo added, "What we learn every day is to have alternatives. It is my job to make sure we have alternatives for everything we buy." The most probable explanation: American Axle's Mexican operations are suppling the necessary bits. Alternative theory: China. Think about that the next time you equate "buying American" and "buying domestic."
Is there anyone Chryslerberus isn't trying to strike up a deal with? According to Reuters, Germany's Handelsblatt newspaper claims Chrysler is in "quite advanced" talks with Fiat to produce Alfa Romeo cars in the U.S. using Chrysler's factories. The newspaper cited "industry sources" (can you be any more vague?) as saying "the talks are moving forward." Hang on; isn't that Toyota's tag line? Anyway, Fiat had no comment on the rumor. Chrysler's spokeswoman called the story speculation (ya think?). But she admitted what everyone in Christendom already knows: "there could be other partnerships with other automakers." The questions yet to be answered: will Alfisti accept an Alfa that doesn't come from Lo Stivale? Who has the worse reputation for quality? And why didn't anyone use the date 2010 in this story, except us?
Yahoo! Finance reports that Ford's chief engineer for Research and Advanced Engineering will spend part of his day telling the Society of Automotive Engineers that his employer is counting on their EcoBoost technology– not hybrids– to meet and greet federal mpg standards and appeal to buyers. Andreas R. Schamel's speech will tout "volume-based, near-term actions… within the next five years." [In case you hadn't heard, EcoBoost combines direct injection and turbocharging some 20 percent better fuel efficiency, 15 percent lower CO2 emissions and "superior driving performance versus larger displacement engines."] Although Schamel will toss diesel and hybrid powerplants a rhetorical bone– "hybrids, diesels and technologies such as plug-ins and fuel cells have a role"– EcoBoost it is, starting with the cetacean-snouted Lincoln MKS. From there, The Blue Oval Boyz promise "A 4-cylinder EcoBoost engine with the capability of producing more torque than a larger 6-cylinder engine — nearly an entire liter larger in displacement." Sounds like a plan. [thanks to jthorner for the link]
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