Once upon a time, Barack Obama and John McCain actually disagreed about the proposed automaker bailout. Obama took his cues from the UAW and backed the proposal. McCain remained principled– until he realized he had to win Michigan. Now, not only is McCain camping-out in Obama’s rhetorical territory, promising that “change is coming,” he’s also pushing to be seen as Detroit booster-ier than thou. His new ad literally opens on the corporate logos of the Detroit three, while a honey-voiced narrator coos that “Michigan families depend on the auto industry.” But can McCain really win by following his opponent into populist positions? A post over at Wired indicates that not only is he pandering after already-committed voters, but he’s also helping to fuel protectionism, corporate welfare, and jingoistic anti-innovation. Because there is less daylight between the McCain and Obama positions, McCain is coming under increasingly narrow and divisive attacks, the latest based on his opposition to “buy American” stipulations for (get this) secret service motorcycle purchasing. McCain’s opinion that mandating the purchase of Harley-Davidsons is “unnecessary and counter-productive” has caused the Obama campaign to start a “hybrids and Harleys” initiative. At a recent rally in Grand Rapids MI, Hybrids and Harleys for Obama banned all foreign-built hybrids from the parade of vehicles. Er, all non-D3 hybrids, anyway. Canadian Silverado hybrids were welcome, as were Mexican-made hybrid Vues. Holding Americans and their presidential candidates to an impossible standard of driving American-made, eco-friendly hybrids is the result of a lack of substantive debate. When neither side refuses to take a principled stand on an issue, contrast is derived only through pandering and empty symbolism. For two candidates who claim to be agents of change, this is a lot of the same-old tired politics as usual.
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Oh GM Fastlane blog, how you wow us with your weak-wristed defenses of GM’s endless parade of missteps. The latest round of apologia (appallogia?) is a shameless response to widespread autoblogosphere criticism of the decision to bring the Aveo-cannibalizing Pontiac G3 stateside. And it’s good to the last drop of brand-destroying denial, utilizing GM’s now-trademark “myth-and-debunking” format. Jim Hopson of Pontiac communications asks himself if the G3 isn’t “just a re-badged Chevy Aveo.” His answer? Toyota brand-engineers Lexus, so it must be fine. Looks like someone needs to catch-up on the differences between platform-sharing and brand-engineering. Speaking of Toyota, will the G3 steal sales from the Vibe? Hopson argues that the comparison is like saying the Corvette and Yugo overlap because they both have four wheels. Nice. How can the G3 be a Pontiac? “Because it’s sporty and fun-to-drive when compared to many of the cars in its segment.” Besides, it has the lowest price and highest efficiency of any other Pontiac, an achievement on par with being the “best microbrew in Utah.” Even the usually-credulous FastLane commenters aren’t having any of it, chiming-in with opinions that follow the basic sentiment “I can not believe how stupid this is.” Neither can we.
OK, I was a little pissed that I missed buying www.thetruthabouttrucks.com when I set up shop as TTAC. Ford scarfed the url, and they’ve done not much with it. But today I read that Ford analyst George “No Pictures Please” Pipas is using the TTAT tagline for his presentation on the new F-150. As I have a subconscious stimulus – response pattern for Powerpoint-style pdf docs that induces something roughly akin to total body catalepsy, I’ll leave it to our Best and Brightest to play “spot the spin.” My takeway: Ford research reveals that 38 percent of pickup truck buyers either are or are considering leaving the genre. Oh dear. Anyway, with F-150 models ranging from $21,320 (good luck finding a stripper) to $44,860 (what are you nuts?) and a lot of standard kit vs, the competition, Ford can legitimately claim to offer “the most pickup for the money.” You know; if you discount used. Or discounts. And Ford’s going to hype the Hell out of its SFE (Superior Fuel Economy) F-150, which gets 15/21. Is that enough to swim upstream? Doubtful. To paraphrase ELO, the best FoMoCo can do is to hold on tight to their share.
As our airplane began its final approach into Atlanta’s Hartsfield airport, we flew over the muddy outlines of an enormous new housing development. Phase I was attached. There wasn’t a single construction worker, car or human to be seen. Later, driving through the city’s outskirts, we passed dozens of these brand new ghost ‘burbs. It looked as if someone had detonated a neutron bomb, or unleashed a killer virus. Of course, someone had. Easy credit. And anyone who thinks the new car market is headed for a recovery simply isn’t paying attention.
The Street is carrying a short story originally broken by Nikkei Net (sort of a Japanese version of Bloomberg) that GM is in talks Isuzu to sell former mistress Isuzu its medium duty truck business. This might sound familiar, as last year GM announced a deal to sell the same business to Navistar. But in August of this year the Navistar deal ran aground. The Dayton Business Journal lays blame for the Navistar deal meltdown at the UAW’s door. Reportedly, the UAW expected new jobs at Navistar’s Springfield factory and a replacement product at GM’s Flint Truck Center. Not surprisingly, “GM couldn’t guarantee a replacement line.” One can only assume Isuzu doesn’t face the same obstacles. But there’s some question about how much Isuzu– already blessed with a strong truck business– needs GM’s medium duty truck unit. In any case, we’ll follow the story as it breaks. Next up on the auction block: Mr. Goodwrench’s wardrobe.
While Americans apparently go ga-ga for Honda’s Fit hatchback, other parts of the world get a Fit-based (or related) Honda City. While the City doesn’t share body panels with the Fit, they ride on the same light and compact platform. With the same 120 horsepower 1.5 liter 4-banger available in many markets, the City would be pretty zippy too. Frankly I think the City looks much better than the Fit – even if you have to give up beloved hatchback utility. I might go so far as to say it’s the best looking currently produced Honda sedan. The interior is a step up, as well. Honda would have zero problem selling these by the bushel in the U.S., but then they can’t even keep up with demand for the Fit right now. And a City sedan might just cannibalize Civic sales even more than the Fit already is (though the Civic is keeping up by cannibalizing Accord sales, it’s all good, as they say). Click on over to Carscoop for a full gallery.
Hyundai’s Genesis RWD luxury sedan was initially aimed at new luxury buyers, with a $33k starting price that sought to lure upgrades from the Maximas and Avalons of the world. But Hyundai VP for NA sales David Zuchowski reveals to Automotive News (sub) that this strategy has failed. “We thought the vehicle would be a nice interceptor vehicle for someone looking to move up to the first luxury vehicle. What we found out is somebody looking for the first luxury vehicle needs the (established) brand,” says Zuchowski. “Conversely, we are attracting more people from BMW, Mercedes, who are probably tired of paying premiums for the brands.” This year Hyundai hopes to sell 8k of the new luxury model, ramping up to 20k units over the next several years. “Genesis is not going to be a huge volume, but will have a huge halo effect, it will elevate the entire brand,” says Zuchowski. “For years, we’ve said we don’t have a product problem, we have a perception problem. The gap between what people think of our brand and what our products really are is as large as any in the industry.” This perception-gap complaint somehow comes across a lot more credibly from Hyundai then it does from the usual suspects from Detroit. After all, Hyundai has gone from being a Rodney Dangerfield punchline to a BMW and Mercedes sales thief in a few short years. Hyundai was considering launching a Lexus-style luxury brand with the Genesis, and though it hasn’t ruled the possibility out down the road, such a plan is unlikely given the Genesis’ apparently-strong halo effect.
History records an era when a Cadillac was a no-compromise choice for well-heeled individuals seeking perfection. I remember the original import-fighting Seville’s refreshing blend of global proportions with acres of unabashed Cadillac style. What followed—neglect and shameless down market downplays– left Cadillac oblivious to its former “Standard of the World” designation. So it’s no surprise that the latest STS, nee Seville, doesn’t deserve to wear the crested wreath.
Bob Lutz might try to have us believe that he “invented” the plug-in hybrid Volt. In reality, he just dusted off old plans on GM’s shelves for their 1969 XP-883. Forty years ago, in response to concerns about tightening emission standards and future oil supplies, GM unveiled a plug-in hybrid city car concept. Six 12 Volt lead-acid batteries propelled the Smart-sized car electrically up to about ten mph, when a tiny 600cc two-cylinder gas engine kicked in to provide additional motivation up to its maximum top speed of sixty. The XP-883 seated two adults, plus two kiddies facing backwards, perched above the battery pack. The cute-as-a-button fiberglass bodied coupe foreshadowed both Vega and Opel 1900/Ascona styling. If GM had made it, it would undoubtedly have gotten you laid (with hairy-legged girls) just like the Volt will in 2010. But then what wouldn’t, in 1969? Maybe that’s why they didn’t bother.
Death Watcher that I am, even I’ve lost track of all the excuses Ford, GM and Chrysler have used to explain declining sales vis a vis the transplants and the market in general. Let’s see… currency manipulation, reduced fleet sales, unforseen rise in gas prices, Mars in retrograde, etc. Here’s the next one: consumer anxiety re: Wall Street. “All businesses are operating in a world of ambiguity,” Ford’s chief sales analyst George Pipas told Reuters. Tell that to the repo men. Anyway, FoMoCo is preparing the mainstream media/stock holders/camp followers for the worst. “Industrywide auto sales in September to date have extended the weakness seen in July and August,” Pipas said, adding that “financial market volatility makes it hard to forecast results for the remainder of the month.” I’ve got a prediction: down. And, IMHO, Wall Street’s not to blame. Much.
Non-industry bailout supporters almost always qualify their backing with a number of conditions to be placed on automakers who receive government assistance. As Automotive News [sub] reports “The problem with the plan included in the energy bill: the string attached. Actually, it’s more of a rope. A cable even.” One such rope or cable is the requirement that retooled factories produce vehicles which are 25 percent more efficient than their competitors. Though that may be theoretically possible, AN worries that regulating the loan program could be a nightmare. Unsurprisingly, the Project For A New Generation Of Vehicles (PNGV) is brought up as an example of what happens (or not) when the government gives Detroit money without attaching firm enough conditions. And just like that, there’s another article in Automotive News which reports that automakers are calling on Washington to “change restrictions attached to the money that may impede its benefit for the struggling companies.” An industry lobbyist confides that preliminary conditions were written-up when the energy bill passed last December, but they “were not given much thought at the time.” The big problem? The requirement of 25 percent efficiency improvements, of course. GM CEO Rick Wagoner says that efficiency gains are “typically made in smaller increments.” No kidding, Rick. Detroit got over a billion to develop a new generation of fuel-efficient vehicles starting in 1993 and we still haven’t seen any tangible results, thankyouverymuch. Meanwhile, Nancy Pelosi has not made clear if she is willing to change restrictions on the use of the money or how that would be accomplished. Furthmore, she says that “full funding” of the loan proposal is still up in the air since their are many other programs fighting for access to the federal teat. Stay tuned for future Wagoner press conferences calling on the government to distribute the $25b “in unmarked bills, stuffed in a suitcase and hand delivered to the RenCen.” After all, if Detroit were into the whole “accountability thing” it wouldn’t be asking for a bailout in the first place, would it?
People say it’s great to be a weatherman because you get to be wrong most of the time and still get paid well. That’s the only other job besides being a GM executive for which your company can totally tank – as a result of your action (or inaction) and stick around and pick up millions upon millions of dollars in compensation. If you think about it, people like Bob Lutz aren’t the smartest people in the world (that didn’t take too much consideration); they’re just the luckiest. So that’s my new goal – be Bob Lutz. Or maybe Richard Fuld, or Rick Wagoner. Meanwhile, in today’s podcast Jonny Lieberman and I talk about Bentleys, Kias through Koreatown in LA, and mullet cars.
The Wall Street Journal reports that General Motors has canceled plans to build the seven-seat Orlando stateside, or bring a foreign-built version to The Land of the Free. “The canceled Chevrolet vehicle, code-named the ‘Delta MPV7,’ was originally intended to be built in Hamtramck, Mich., beginning next year, according to the auto maker’s recent agreements with the United Auto Workers union. The MPV, or multi-purpose vehicle, would have been based on GM’s compact-car architecture, but capable of seating seven people.” The program termination leaves the U.S. factory SOL, hoping to score Volt production (via federal low-interest loans, of course). The United Auto Workers (UAW) can’t be too pleased about recent developments, having acquiesced to GM’s “two-tier” wage system, increased health insurance co-pays, etc. in their last contract. “In recent months, the auto maker has suspended plans for several new models that GM told the UAW last September it would eventually build in North America. These suspended model programs include a new generation full-size trucks and sport-utility vehicles; large, rear-wheel drive luxury cars; and a redesigned flagship sedan, known as the Aura, for the Saturn division.” To be fair, that is one ugly-looking thing. And did GM really need another model? More interestingly, was the Orlando a head fake from the beginning?
GM leased the IROC-Z name for the Camaro from the International Race of Champions starting in 1985 thru 1990. To befit this racing pedigree, the Camaro came equipped with the special 305 TPI 5.0L V8 engine coupled with a four-speed automatic fun sponge, as the regular 5-speed manual proved incapable of handling the 215bhp the motor burbled out. The fun didn’t stop there however; the upgrades continued in the form of revised springs, a lowered ride height, Tune Port fuel injection, and a body kit complete with 80’s awesome stickers to remind the SVO Mustang who was boss. The Camaro didn’t need no stinking double wing, a lip spoiler would do just fine.
All these efforts resulted in an incredibly wheel spin happy, hard riding, shaky contraption built to thrill from stoplight to stoplight. Toss the overboosted helm into a turn, and you’ll realize how advanced even the most basic of suspensions are in the 21st century, as the IROC-Z followed the mantra of “harder is better” to an absolute fault. However, the tuned bits from the Corvette helped out where it’s really important: smoky powerslides. Sure the Mustang might possess a bit more technical sophistication, but the Camaro always outran it. The sheer grunt of the engine and the indestructible nature of the 700-R4 tranny made for an easily tuned, reliable drivetrain; shame about the rest of the build quality.
The interior of the Camaro reflected more muscle car than the Mustang, with sport gauges complete with an interesting double-needle speedo showing mph on oneside, kph on the other (in orange). The sporty looks continued on the outside to culminate in one of the meanest looking “folded paper” designs of the 1980’s. White Trash no, future classic, yes.
GM has a long history of offering second rate products that are “nearly as good” as the industry standard, and then telling people to buy them because they’re made in America. The CTS may not be the best RWD sedan on the market, but it’s made in America. The Aveo falls flat compared to say, the Fit, but dammit, you love your country, right? Needless to say, the Volt’s “made in America” badge is going to be a big selling point as GM searches for those willing to justify dropping $40k on the EREV. Well, the WaPo (a nest of America haters if ever there was one) reports that GM’s Rick Wagoner “refuses to promise” that Volt batteries would be built stateside. “As we sit here today I can’t give you a guarantee that it will be made in the U.S.,” Wagoner said. “If we want to get the Volt in the market, as we do by the end of 2010, we’ve got to make some relatively near-term decisions about how we are going to do all that.” But wait, isn’t the proposed bailout (which will certainly benefit Volt production) supposed to address America’s emerging dependence on foreign batteries? Didn’t Chrysler’s Jim Press frame the bailout in those very terms just a short week ago, saying “right now, the major sources of batteries are other countries. So are we trading our dependence on foreign oil, which is a natural resource, for a dependence on other countries to produce something in a factory? We need to stimulate that development here — here in Michigan.”? By putting the hype before the cars, Detroit is either damnably stupid or wickedly cunning. There’s no doubt that there’ll be some egg on GM’s face for increasing our dependence on foreign batteries, but once they actually build the cars (with help from Uncle Sam) they can bring back the battery independence talking point. Then it will be time for bailout round 2.

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