The Alliance of Automobile Manufacturers (AAM) is serving-up some more PC for your PC. The just-launched www.EcoDrivingUSA.com tells you how to drive your car like an old man. "Drivers don't have to wait to buy a new, fuel-efficient vehicle to start reducing fuel costs and CO2," AAM CEO Dave McCurdy insists. "Though I do encourage everyone to buy one of our new fuel-efficient vehicles immediately." But seriously folks, this is a classic deflection strategy. Or, if you prefer, it's blaming the victim. The Governator is the site's plastic surgery-intensive spokesman for the politically shape-shifting carmakers. Ahnold speaks from experience when he says we "can't wait for the politicians to take action." Yup, it's up to you (that's you) to properly pressurize your damn tires already, and hypermile yourself to a 15 percent savings on your gas bills. In fact, if we all eco-drove, we could save enough energy to power Skynet for 1000 years. Or something like that.
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GM CEO Rick Wagoner and his Motown pals maintain that "nobody could have predicted" the recent surge in gas prices. You know, the price hike that's driven a stake through the heart of their high profit light truck biz. Never mind the fact that TTAC and others were bemoaning The General's re-investment in their GMT900 trucks back in '03. Well, guys, here's an article in The New York Times that says that nationalization of oil resources around the globe could lead to a drop in supply. (Maybe we should drill nearer to home? Nah.) OK, it's kind of funny (ironic) that the Gray Lady's piece paints Big Oil as the good guy. But that's not the point. Now pay attention: this trend could mean oil prices will go up again. Which would raise the price of gas. Now there's many a slip between the well and the ship, but do NOT tell us that you're surprised if pump prices go up again. That is all.
We're all in favor of debunking the myths surrounding Chevrolet's plug-in electric – gas hybrid Volt. Of course, while TTAC's taking on myths like "The Volt will save GM" and "The Volt will be a reliable gas-free daily driver," The General worries that people believe the electric grid can't sustain electric vehicles. "We know that the charging of the Volt will happen at night," Volt-man Frank Weber assures. "When actually the consumption on the grid is lower. No air conditioning, no lights are on." Uh, OK. Myth 2: nobody knows what kind of battery the Volt will use. Huh? Myth 3: I want my GM EV! It's a conspiracy! Nope. It's a cutting edge deal. We couldn't do it before (even though we did). So now you know.
What be the ACSI, you ask? The American Consumer Satisfaction Index, conducted by the University of Michigan's Ross School of Business. As for methodology, the explanation is well above my pay grade. (I'd just ask "How satisfied are you with your car?" and call it good.) Unhelpfully enough, the automotive sector's results are listed alphabetically. But the bottom line is as above. And the answering spin, reported by The Detroit News, is mucho predictable. "We still say with a high level of confidence that the level of our customer satisfaction is improving for most of our brands, based on independent studies and internal data," GM spokeswoman Janine Fruehan said. "We have a renewed and intensified focus on satisfying our Chrysler, Jeep and Dodge customers that has been under way for about a year," Chrysler spokesman Ed Saenz said. "The new management is committed to satisfying our customers at every level. We are beginning to see, in internal numbers, improvements that indicate we are on the right path." And "This survey runs counter to the results of other recent surveys, in which we've made great progress," Ford spokesman Mark Schirmer said. Never mind, then. I guess.
I'm not sure we're looking at one of those tip of the iceberg deals, but this story from the AP [via the Chicago Tribune] raises the possibility. "State investigators claim a company spiked unleaded gasoline and 10-percent ethanol-blended fuel with cheaper E85 at stations in Sumner and Fairbank… In mid-June, the Weights and Measures Bureau of the state agriculture department found that Pronto Market stations were receiving shipments of E85 from a Jesup distributor, but had neither an E85 fuel tank nor a pump. An investigator checked out the stations and found the unleaded gas and 10-percent ethanol blend each had between 15 and 18 percent ethanol in field tests, said Ivan Hankins of the weights and measures bureau." Given the current ethanol glut, that's only going to get larger, is this a sign of things to come? Meanwhile, this is not the kind of publicity the corn-juice boosters will like to hear. Oh well.
I like all these automotive technologies that make it possible for the government to spy on you: black box accident data recorders, OnStar vehicle monitoring (complete with built-in microphone and remote "slow down"), insurance-related transponders, etc. I like the assurances the companies provide that they will never share the information with anyone, ever, unless the government twists their arm. And I like not having any of it in my vehicle (when possible). BMW joins the no-thanks parade with a new feature in its next gen 7-Series. The gizmo's camera reads speed limit signs, compares GPS-stored speed limit data to your current speed, and then flashes the fact that you're speeding on the heads-up display. "The new BMW Speed Limit Display will significantly reduce the risk of drivers exceeding the speed limit by mistake,” BMW Group Australia Marketing General Manager Tom Noble tells WardsAuto. "The technology is an information system only and does not intervene in the control or speed of the vehicle in any way, the auto maker says." Whew!
I'm flabbergasted. Presidential hopeful John McCain (or someone on his staff) pens an opinion piece for The Detroit News and the paper doesn't make ANY mention of the Arizona senator's bespoke opus on their on-line home page OR the Autos section. In fact, I would have missed McCain's rant entirely if not for an article in… The Detroit Free Press. WTF is that all about? Anyway, John is holding fast to his "no federal bail out for losers" position. Per se. "With a transition to alternative-fuel vehicles, we can rejuvenate the auto industry, drive cheaply and cleanly and be more secure. I will bring customers to the showroom with up to $5,000 in tax credits to encourage the purchase of these cleaner cars." Did he say American cars? No? Shit! Chill Motown; McCain's left himself some mighty fine wiggle room. "I will continue to meet with the leaders and workers of the Big 3 automakers. If the industry should need federal assistance, I will consider any reasonable proposal they develop that moves the industry to a more stable and prosperous future." So I guess that means McCain still considers it unreasonable to suggest that a federal bailout is reasonable. Or the other way around.
CNNMoney reports that Chrysler has filed suit against Johnson Controls for "systematic and deliberate overcharges." The ailing American automaker claims the world's leading battery supplier "provided fictitious weight data under the guise that it could charge Chrysler more for the amount of lead used in its battery products. Chrysler had agreed to pay more to cover increasing lead costs." ChryCo's seeking to claw back $15m from Johnson. Or it could be trying to ensure that none of its suppliers gets too "feisty," in terms of demanding cash-on-the-nail for their goods or services. Or both. Or maybe Chrysler's Cerberusian masters reckon there's gold in them thar lawsuits. The Times of India intimates that Mahindra and Mahindra are looking to pay-off settle with Chrysler re: the Jeepish front grill on the Indian automaker's Scorpio SUV.
The Wall Street Journal's article on the new Ford Flex starts off as all these things do: a personal anecdote from an enthusiastic buyer, some spin from the marketing folk and… oh dear. Not such a happy picture after all. "The Flex isn't a miser on fuel, getting 17 miles per gallon in the city and 24 mpg on the highway. According to Edmunds.com, the company has already put $1,315 in incentives on the Flex in July, a potentially worrisome development for a new vehicle. It is also unclear how the Flex will play with Ford's mainstream customers in the middle of the U.S. Many comments on car blogs have praised its design, but some have complained it resembles a hearse." And the hits keep happening. "Ford has said it expects to sell as many as 100,000 Flexes a year, but it will need to up the sales pace to achieve that. In June and July, the first two months it was on sale, 3,413 were sold. The Ford Explorer sport-utility vehicle can also seat seven; Ford sold 12,223 of them in June and July." The WSJ repeats Ford's claim that the "slow rollout has been by design" (why hurry?) and ends on the usual up note, relating CA IT maven Rueben Muinos' freshly-minted Flex appeal. "When he drove it home, he was surprised by how many people starred [sic]. "I thought I was talking on my cell phone illegally," he said, realizing only later that all eyes were on his Flex." We have no, well, little reason to believe Muinos was driving naked.
So, what? You buy an H3T and you get the whole company? I kid. A bit. I mean, I'm not sure how HUMMER GM Martin Walsh makes that analysis. I guess it all depends on how you define the words "valuable" and "us." For sure, the new HUMMER pickup gives all the brand's executives and dealers something to do whilst they wait for the end, my friend. But there's no disguising the fact that the 14/18 mpg $31,495 H3T is about to arrive with a splat. OK, there's some disguising it, 'cause that's what GM PR does for a living these days. Uncharacteristically, Automotive News Jamie Lareau handles The General's whirling dervishes with kid gloves. "General Motors insiders admit high gasoline prices and a decline in U.S. pickup sales make the H3T a tough sell. They hope the H3T will sell well overseas until the market here recovers." And the punchline is… missing. But the humor is there, if you know where to look. "Walsh characterized the [ad] spending as significant but 'proportionate to the volume and the impact it'll have on the market. It's a niche player. It's not something we'd overspend on.'" Martin sets 'em up and Jamie leaves 'em alone. "Despite the tough economy and decline in truck demand, Walsh said a market exists for the pickup. Hummer is targeting males in their 30s who earn $90,000 or more and are into outdoor activities." If I were them, I'd duck.
So, like most of you, I spend a lot of time talking about cars with my friends when it's time for them to buy. Talking with a dear friend of mine who has $20,000 to spend, I ran through my usual you're-not-a-car-person holy trinity of Honda Fit/Mazda 3/Subaru Impreza — cars I believe achieve the perfect balance of cost, reliability and fun to drive. But in regard to that last point, while they are fun to drive, they ain't that fun. She inquired about Audis and Volkswagens. Der Germans would mean used and I can't in good faith advise a dear friend to get a use Audi/VW, can I? BMW? Well, I told her, you could get a lotta BMW for $20,000, but you could also be burning wheel bearings and frying ECUs (or whatever other weird gremlins 50,000 mile BMWs develop). The conversation went on for a bit, and then I showed her a 1972 Citoren SM (see photo) I've been tracking on eBay Motors for a few days. $9,000. Lifetime California car. Well maintained, no rust and the hydraulics work. 3 owners. Life is short. SM stands for "Sport Maserati." It has a Maserati engine. You kinda need to own a car like this once in your life. She's single, no children and she can afford it. And the $11,000 she saves will keep a couple of French and Italian mechanics fat and drunk off table wine for a few years to come. What do you think?
One more time! Maybe even literally. Strangely, GM's told its dealers that revealing the imminent arrival of "employee pricing for all" to the outside world would be a felony. So I guess you can call me Miss Demeanor (you know; if I wasn't a Silverado-loving man's man). Anyway, it's all over the damn web. Reuters reports [here and via Automotive News] that "the offer starts Wednesday, runs until Sept. 2 and applies to all 2008 model year Chevrolet vehicles, according to the dealer, who was not authorized to discuss the GM plan." See? The black ops are only a beat behind. So to speak. And if employee pricing isn't enough to pull in the punters, "the top-selling U.S. automaker will offer cash back on slower-selling light trucks, including the Silverado pickup, said the dealer, who had just been briefed by GM." Top selling? Slower-selling? Careful you don't hurt yourself pulling those punches. Anway, we now have confirmation that ALL GM brands are involved in the fire sale. Oh, and try and guess the Money Factor in a standard GM lease these days. It's 16 percent. Which will apply to the new Malibu on Wednesday.
"Selling consumers more vehicle than they need has been the mainstream auto industry's business model for most of the past century," Joseph P. White writes in today's Wall Street Journal. "The wreckage created in Detroit by the bust of the bubble market in large sport-utility vehicles is just the latest example of how dependent auto makers are on the strategy." Whenever I hear pundits talking about other people's needs, and the greedy businessmen that convince consumers to buy against their own self-interest, I get nervous. One of the real joys of living in a democratic capitalistic society: within limits, citizens get to determine for themselves what's in their own best interests. If I want to drive an SUV, I am not denied that opportunity because someone else says "Sorry Comrade Bub, you don't need it." Sure, there are plenty of arguments against SUVs. (I've made more than a few myself.) But it's simply not true that Detroit's in trouble because they suckered dumb ass Americans into SUVs. They're in trouble because they suckered themselves into complacency. When America's automotive "needs" changed– a change that was entirely predictable– they weren't ready. Period.
[I apologize for the fact that Justin seems genetically incapable of speaking up. I reckon he may just disappear some day. However, if you all clap, he may just come back. C'mon now boys and girls…]
Our Wild Ass Rumor was three days early, but accurate. Our source inside the former GM division and bankrupt autoparts maker reports that the company has told its workers that 600 white collar Delphinians– in the Electronics and Safety organization– will be shown the door by the end of the year. (The total number employed thereabouts is 3k.) Delphi will identify the 600 puntees by the end of this month [August]. And despite previous promises, the pension freeze is now "independent of bankruptcy emergence." And when might THAT be? Our source says there were "no warm fuzzies on when we could expect to emerge." The Delphi wound continues to fester, only more so.
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