and could only write tickets for ONE infraction, what it would it be? For me, it’s failure to stop at a stop sign. I live in a neighborhood that looks a bit like the one in Lady in the Tramp. We’ve got wide sidewalks, Victorian houses, well-groomed canines, equally well-groomed Swamp Yankees, a property tax bill that could crush rocks, the works. As the proud owner of four daughters and two dogs, I’m keenly aware that the sidewalks are often used for recreation: walking, running, bicycling, skateboarding, etc. (And that’s just the dogs.) So when I see a motorist blow through a four-way stop sign at speed, usually clutching a cell phone, I wish the capitol city would re-instate capital punishment. For some reason, I’m even more narked by R.I. motorists’ near-universal propensity to perform a so-called “rolling stop” at octagon-marked intersections. What part of STOP are you having trouble with? The real danger here: countless drivers perform this maneuver whilst turning at an intersection. They don’t bother checking to see if anyone’s crossing. The resulting carnage isn’t pretty. [see: above]. And I’ve seen cops watch drivers execute this illegal maneuver right in front of them, without batting a single chowderhead. So, what’s in your fictional ticket pad?
Rumors of GM channel-stuffing became reality when we heard that the General was forcing dealers to take on unwanted inventory to qualify for incentive cash. And while the smaller dealers are stuck between a rock and a hard place, big boys like AutoNation at least have enough clout to make a choice. And CNN reports that AutoNation has told GM where it can stick its overstock. GM and Chrysler “have implemented wholesale incentive programs where they basically say to get the incentives for the inventory you want, you have to buy more inventory,” AutoNation CEO Mike Jackson said Thursday with his trademark subtlety. “The channel is full, and they are trying to stuff more in. I think this is the wrong thing to do. We are not playing that game.” Meanwhile, GM and Chrysler are exhorting their dealers to take more unwanted inventory. While on a sales drum-up dealership tour last week, Chrysler Vice Chairman Jim Press said the automaker needs dealers to begin ordering vehicles because the “downside could be a lot worse” if orders don’t increase. For the OEMs, anyway. AutoNation’s fourth quarter sales dropped 34 percent, although $200 million in cuts and $750 million in debt paydown last year have helped keep the retailer afloat. “We do believe that there’s the possibility of an improvement in March if credit really begins to thaw, but we are taking a wait-and-see attitude,” Jackson said. “We want to see it before we’ll stop at that level.”
If you answered yes to both questions, chances are you’re feeling relatively isolated from the economic pressures of the recession. Congratulations! Now go treat yourself to one of these iPhone applications compiled by CarType. Thanks to the power of Steve Jobs you can now shop for car insurance, look up the lowest gas prices in town, receive RSS updates on cars for sale, receive press releases from MINI, VW and Mercedes Benz, calculate your mileage, look up EPA ratings, receive traffic alerts in a number of countries, and play a plethora of time-wasting games all from your phone. Delphi’s James Bond-like bluetooth control for complete vehicle systems (first teased a year ago) is, sadly, still not available on the consumer market.
Gentlemen, start your “German Engineering” jokes! The Windsor Star reports that Chrysler’s Windsor Assembly Plant has received a “no build” order for Routans in the month of February, despite workers returning from a long winter break on February second. According to a union local official, VW requested a month’s furlough of Routan production, “in order to adjust their inventory. Sales are slow across the board and VW is no different.” Local 444 President Rick LaPorte calls the no build order “worrisome in terms of volumes.” Windsor had been assembling 300 Routans per day, but with 30k of the rebadged Caravans sitting in the VW dealer net, slow sales are becoming a major concern. VW sold 8,812 Routans last year, falling well short of the pace needed to meet sales goals of 35k units per year (3k-4k per month). Read TTAC’s review of the Routan here.
The Freep reports on the analysis of JP Morgan’s Eric Selle and Atiba Edwards, who argue that GM bondholders could emerge from negotiations with a 20 percent stake in the world’s second-largest automaker. GM must outline a strategy to eliminate two-thirds of its $35b in unsecured debt by February 17. “We expect a bond exchange will settle around 35% of par with an equity component representing 20% of GM’s equity,” write Selle and Edwards. But the JP Morgan analysts warn that the “threat of bankruptcy will have to return in order for GM to achieve the required restructuring goals.” What, again?
Tesla has failed to secure the $100m it needed to continue with plans to build a headquarters on San Jose, CA’s Zanker Road, reports the San Jose Business Journal. Tesla had also planned to build a $250m manufacturing facility on the site, which would have assembled the firm’s development hell-bound White Star sedan. “We abandoned that because the VC financing environment became so tight and difficult,” say Tesla spokesfolks. Instead, Tesla has applied for about $400 million in two federal, low-interest loans through the Advanced Technology Vehicle Manufacturing Program. It is seeking $250 million for the Model S manufacturing facility and $150 million for an advanced battery and powertrain facility. But this means that the Zanker Road site can not be used, since the ATVMP funds may only be used to refurbish and retool existing facilities, not build at greenfield sites like Zanker Road. “We’re very optimistic, even with Zanker Road,” said Michelle McGurk, senior policy adviser to San Jose Mayor Chuck Reed. “We know all the reasons Zanker Road made sense, and it still might make sense depending on how things shake out.” Or not. “We can’t afford to do anything that would jeopardize our ability to get the federal loan,” says Tesla spokeswoman Rachel Konrad. She notes that Tesla is looking at other existing sites which might qualify for refurbishing loans. And the march from private to public funding sources for the auto industry continues unabated.
I’m delighted to welcome TTAC commentator factotum to the other side of the WordPress platform. When Jeff volunteered to perform endless search-and-amend missions on our typos, bad grammar, factual mistakes, variance from the Chicago stylebook, punctuation transgressions, etc., I leaped at his offer. He stepped to one side. I hit the floor. Nothing new there. I freely admit that I get sloppier at the keys as I get tired, and man do I get tired knocking out this stuff. To that end I’m off the Lexapro. And man do I get dizzy. With Jeff sweeping up behind the circus elephants—what? and give up show biz?—I’m hoping my OCD won’t return with such a vengeance, so I can restore the personal energy levels that helped propel this quirky little car site to its million man per month march. OK, so now that I’ve done the TMI bit, I surrender the recently cleaned floor to Mr. Puthuff to introduce himself.
Now that President Barack Obama has decided to let California raise America’s fleet-wide fuel economy regs to something like a 42mpg average, the automakers are howling with righteous idignation. Not. How could they? Not only would that be impolite to the incoming adminstration, environmentalists, the Democratic party and mother Earth, but GM and Chrysler are now more-or-less owned by the same federal government that just told CA to go for it. The New York Times dusted off ye olde “greedy American automakers are dragging their heels over higher mpg vehicles” template, but really, their heart just isn’t in it. But you’ve gotta give the Gray Lady credit for digging up a least one hysterical Neanderthal. Yes, it’s our old pal David E. Cole, whose Center for Automotive Research (CAR, geddit?) created the widely-quoted and entirely specious study that justified the Motown bailout buffet in the first place (if they go down, 42b workers will hit the soup lines). You can guess what David said, but it’s still fun to read. And wait ’til you don’t hear what Detroit doesn’t say…
Another Arizona jurisdiction has joined Pinal County in refusing to accept photo radar ticketing. In December, Arrowhead Justice Court Judge John C. Keegan issued an order declaring the state’s freeway photo radar program unconstitutional. Since then, Judge Keegan has torn up at least 400 state-issued tickets, ruling them invalid for carrying penalties that differ from tickets issued by a “live” police officer.
Thanks to strangely prescient asset mortgaging, Ford has not yet joined Bailout Nation. Providing, of course, you discount its forthcoming share of the Department of Energy’s $25b no- to low-cost “retooling” loans (remember them?). But don’t get to thinking that FoMoCo doesn’t have its eye on the prize (federal succor). The Detroit News reports this morning that Ford’s lobbyists are hard at work in the teat suckling department. “Ford Motor Co. is calling on Washington to do more to stimulate the economy and get consumers back into its showrooms, after posting a record loss of nearly $14.6 billion for 2008 on Thursday.” Ready? “Anything that can incentivize the consumer, especially with regard to automobiles, would be great, because it’s such an important part of the economy,” CEO Alan Mulally told The Detroit News. “I know that they know how important the automotive sector is.” Cue “I’d do anything” from Oliver, substituting the word “money” for “love.” Anything? But what, exactly?
My three-year anniversary with TTAC is rapidly approaching. After meeting many great people because of this website, it’s time to meet the Best and Brightest who hail from the Bayou City. This concrete jungle has plenty of automotive venues, so let’s make it happen with the finest iron on the road today. I suggest the “Cars and Coffee” event: a non-denominational, show-n-shine type of affair. There’ll be downhome hospitality, tasty cupcakes and Starbuck’s finest to take the chill out of the winter air. Or the winter heatwave off your face: everyone knows the weather in this town is more changeable than GM’s plans for Cadillac. See you there!
When: Saturday, February 7th, from 8:30 a.m. to whenever.
Bonus! To indentify yourself from the riff-raff, the code word is “B&B.” Anyone wearing a lapel badge with those letters qualifies for one free Venti coffee, no drips, flavors, soy or other misegos.
Inflammatory much? Of course we do. Quick digression: Bain & Co is one of those international consultancies whose website doesn’t provide a client list, or any exact idea of what it does for them. Reading between the lines, like McKinsey & Company, they probably specialize in firing people (e.g., “Where appropriate, we work with clients to make it [increasing “value”] happen—which may mean fundamentally changing the company.”) The connection between Bain and a study of potential EV ownership is left unspoken. Looks like the usual client angling to me. OK, so, Business Week reports that Bain reports that EV intenders are rich bastards. “The survey of 4,000 people in eight countries, including the U.S., China, Japan and Germany, finds that high-income buyers are ready to buy all-electric vehicles as a second vehicle for short trips. ‘Consumers would be buying now if there were products,’ says Gregor Matthies, a Munich-based partner at Bain who specializes in the auto industry.” Did they only survey high income buyers? Not specified. So which theoretical EVs are we talking about?
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