Here’s my problem: the Taurus SHO’s 365hp EcoBoost (born TwinForce) V6 only offers ten more horses than a Lincoln MKT or MKS with the same unit. Quick! Which one of those is based on the Ford Flex? Doesn’t matter, ’cause the Flex is getting this engine too. Unlike the MKT (market?) and MKS (Mark Kay Sucks?), SHO actually stands for something: Super High Output. The Taurus SHO’s ten more ponies does not a legend make, IMHO. Thankfully, FoMoCo’s got some of the best chassis tuners in the world (most of whom spent the last twenty years or so tweaking cookin’ Euro Fords to greatness) to ply their dark arts on this big, bad boy. And when I say big, I also mean heavy. When you’re torquing that much power, the Taurus (born Taurus) needs all of its all wheel-drive to get the twist to where the rubber meets the road (hihowareya?). And now… the magic number is… $37,995. Plus the not quite so optional if you’re at all serious about this Performance Package (price unknown). Forty-grand for a fast Ford Taurus? This thing better SMOKE around corners. We shall see…
Nissan’s Cube goes on sale this May, and a Nissan Press Release states that a base 6-speed version (what, you wanted the CVT?) will start at $13,999. And even though only 122 hp are on offer fom the Cube’s 1.8 liter four, even a loaded CVT version will weigh less than 2,900 lbs. There’s also something about an expensive special Krõm (Krôm? Kröm? Krøm?) edition. Specifically, “for those consumers that love the cube but are looking for a little something extra, the cube Kr?m (sic) offers that and then some.” Duly noted. But the nausea-inducing corporate enthusiasm doesn’t stop there. “It’s unique, it’s fun, it’s functional, and it makes being “square” hip again,” bubbles Nissan’s Al Castignetti of the cubist wonder. Translation: the Cd rating is 0.35. More pricing, model info and well-compensated enthusiasm to come.
We all knew it would happen. The Lutz does not die with a whimper. In a farewell interview, GM’s lame duck car czar gave The New York Times‘ Bill Vlasic the most maximum farewell quotes yet. “We are a country that hates its own industry,” roars Lutz in our general direction. What’s that again, Bob? “The auto industry may be partly at fault for its situation, but not entirely.” Oh. Good. How’s the retirement plan? But Maximum Bob did a maximum job. Given what Curly might call the coicumstances. “If this is just the beginning of a very catastrophic economic situation, then all bets are off for everybody, and that includes our most esteemed Japanese competitors,” quips Lutz. Yes, if. On the other hand, if things do get worse, it won’t be the esteemed Japanese competition that will be elbowing GM in the stimulus line. Or out of the stimulus line. Hint hint. But don’t worry. Everything is going to be just maximum. Specifically, Lutz is “convinced that when everyone is staring at the reality of the situation, and also staring at the alternative, that they will make the right decisions.” Yes, but how long do they have to stare?
As the maximum era draws to an end at GM, there’s no shortage of praise for the Bob Lutz-led product turnaround. Cars like the CTS, Lambda CUVs and the Chevy Malibu are said to represent a new day in quality and design for the General. And without a doubt, they are all consistently better cars than GM has made for years. But for all their accolades and fawning reviews, these vehicles actually represent a relatively small fraction of GM’s offerings. Though marketing executives wail from the Renaissance Center that consumers aren’t understanding the alleged sea change in GM products, there are still more GM vehicles you can ignore (to borrow GM’s marketing phrase) than you can’t. Automotive atavisms occupy GM’s entire lineup, but the contrast between Chevrolet’s D-segment offerings, the Malibu and Impala tells the whole story. And it isn’t pretty.
TTAC has been working with our Best and Brightest to uncover the hidden investors behind Chrysler. We’ve made some headway. First, the name of Cerberus’ Chrysler funds: Cerberus CG Investor I LLC, Cerberus CG Investor II LLC, Cerberus CG Investor III LLC. The information came from Daimler [click here then search for “CG Investor”; it’s under structure of the transaction]. Searching for hits on the CG funds, we’ve unearthed Franklin Templeton Investments’ Mutual Recovery Fund. Here’s the money shot: the fund’s 2008 Annual Report. Scroll down to page 5 (their numbering), second footnote. And there it is. And now we can drill down to some interesting info…
Wolfgang Bernhard is coming home to Daimler. Not in an exalted position. He will take over Mercedes vans, Automobilwoche [sub] reports. The former McKinsey consultant who became project manager at Mercedes Benz (always a bad sign when McKinsey dumps one of their own on a client) went to Detroit with Dieter Zetsche. As COO, Bernhard was Zetsche’s hatchet man at Chrysler. Back in Germany, he was groomed as boss of Mercedes, but lost in a fight with Jürgen Schrempp. Off he went to Volkswagen, where he ran the Volkswagen brand, along with Skoda, Bentley and Bugatti. Again, he was thought to be groomed as successor of Pischetsrieder. But actually, he was axed shortly after Pischetsrieder was sent packing and the Porsche-Piech putsch unfolded. Eyebrows rose when Bernhard showed up at Cerberus. Some saw him as the new Chrysler head. But no, again. He left a few months after he arrived. A stint at ill-fated Austrian Airlines also didn’t last long. And now he’s back where he began. At Mercedes. In charge of delivery vans.
According to one of my GM buddies, the May 1 pay cut is as follows: 10% for unclassified (executives); 7% for Levels 8 and 9 (managers, technical fellows, other senior folks); 3% for Level 7 and below. Levels 8 and 9 and unclassified enjoy the use of company vehicles. Last year, a lot of the Level 8s were forced to take demotions to Level 7: no pay cut, but they had to give up their company car, although they got some financial help in getting a new GM car.
All pay cuts are “temporary” and will be under reconsideration in December.
When it comes to “why can’t U.S. car companies kill their dead brands?” TTAC has always pointed the finger straight at America’s 50-state patchwork of franchise laws. If GM killed, I dunno, Saab, every Saab dealer in these here United States would drag The General’s ass down to the local courthouse demanding—and receiving—reparations. Lest we forget, Oldsmobile’s termination cost GM a billion dollars back when a billion dollars was a lot of money. If, however, Chrysler, GM or Ford filed for Chapter 11, they could kill brands and dealers at will—without paying ex-dealers anything more than the cost of their inventory. And maybe not even that. Franchised dealers can see the writing on the wall, and they’re not happy. So they’re proactively legislating a new post-C11 deal for themselves—inflating the claims against the automakers’ assets, increasing the likelihood that the D2.8’s bondholders will file for same.
Fourteen percent of GM’s global salaried workforce will lose their jobs by the end of the year, reports Automotive News [sub] as the General flails to slash costs. GM’s salaried ranks will drop from 73k to 63k by the time the current cuts are completed. 3,400 of GM’s 29,500 US salaried employees will lose their jobs by May 1, and remaining workers will see their pay cut by between three and ten percent. These cuts will bring GM’s salaried workforce to a lower level than the 65k-67k called for in their initial December 2 viability plan. DId we mention that these fine folks will be losing their jobs without any buyout offers, just as GM slashes its severance pay? Sometimes it doesn’t pay to be a salaryman.
The New York Post reports that Chrysler CEO Bob Nardelli “transferred a $3.8 million, four-bedroom, five-bath Los Angeles spread to his wife, Susan, on Jan. 17, 2008, according to deed records filed in Los Angeles County and recorded with the Assessor’s Office on Feb. 5, 2008.” There are only three possible reasons for this move: divorce, estate planning or a hedge (there’s that word again) against future legal action, when creditors come to call. Strangely, or not so strangely, Bob’s personal spinmeister is denying the facts of the matter. “A spokeswoman for Nardelli early today insisted the records were incorrect and no transfer took place.” The story gets curiouser and
curiouser . . . .
The Detroit News reports that GM and Chrysler are working furiously behind the scenes to extend the March 31 government deadline re: meeting the conditions of their $13.4b bridge loan to nowhere bailout buffet. Surprise! The American automakers’ inability to take responsibility for their actions may be true-to-form, but that doesn’t make it any less nauseating. Nor does the News’ coverage of the company’s weaseling, which put the “sick” in “sycophancy.” The only satisfaction to be had from this lede is the use of the word “scurrying.”
As General Motors Corp. and Chrysler LLC are scurrying to put the finishing touches on their restructuring plans due next Tuesday to the Treasury, finance and auto industry experts say submitting plans is one thing, but getting bondholders and all other parties involved in a massive restructuring to agree to those plans by the March 31 deadline seems unrealistic.
No truncated suicide doors. No SUV ride height. No gimmicks. OK, there’s a Mad Max/Fast and Furious sport button in front of the gear stick that repositions the boost earlier in the drop top’s rev range (i.e., sacrifices government pleasing mpg for power) and sharpens steering. The four pot providing said oomph is a “significantly revised” (i.e., larger air intake) version of the MINI Cooper S’ 1.6-litre turbocharged mill, the same unit found in the MINI CHALLENGE race car. GOT IT? How’s this for PR sneak: “Extra-large disc brakes paired with upgraded bright red Brembo performance callipers are supplied” [italics added]. The thirty-second MINI variant (and I don’t mean the zero to sixty time of the basest of the bast models) yields 132 hp per litre and 39.8 mpg. (Highway, downwind, windows up, a/c off, one-up, no luggage.) The hardtop version was one of the fastest things I’ve ever seen down a country road, I shit thee not. This will be a genuine hoot.
An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.
Nissan’s no-hitter: After announcing an expected loss in the current fiscal, Nissan will suspend corporate sports activities, including its standout baseball team, the Nikkei [sub] reports. Nissan’s ball club, which was founded in 1959, has won corporate championships and produced a string of professional baseball players. Also to be sidelined is Nissan’s table tennis team, which also dates back to 1959. Its most recent stint atop the winner’s podium occurred in 2007. The table tennis and track and field teams will be disbanded at the end of next month. All eyes are on Toyota and whether they will ditch their vastly more expensive F1 team. The rumor mill says they will stick with it for the now.
Nissan goes for green green: Nissan has applied for low-interest loans being offered under a US government program aimed at promoting the development of environment-friendly cars, the Nikkei [sub] says. This is the first time a Japanese carmaker has applied for the 25-billion-dollar program. One of the conditions for qualifying for the federal loan program is that the applicant has been operating facilities in the US for an extended period of time. Nissan intends to apply for similar aid programs for developing environment-friendly vehicles in Europe and China.
Cheaper hooch: One of the many problems of bio-ethanol is that it’s expensive to make. Toyota, Nippon Oil, Mitsubishi Heavy and three other firms will jointly develop technologies to produce cellulosic ethanol from nonfood plants. By bringing together their know-how in such fields as plant cultivation, glycation and fermentation, they hope to develop a comprehensive production system and bring down production costs to around 40 yen ($0.44) per liter by 2015, says the Nikkei [sub]. (Read More…)
Bob Lutz was not the worst thing to happen to General Motors. He was the second worst thing, right after CEO Rick Wagoner. Lutz’ legacy will not be the critically acclaimed vehicles attached to his name: the Cadillac CTS, Buick Enclave, Chevrolet Malibu or Pontiac G8. It will be the fact that GM’s vice chairman of global product development annihilated whatever remained of GM’s brand-related equity. Bob Lutz ran General Motors into the ground.
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