Unbelievable. And yet, there it is, in The Detroit News‘ unsigned editorial: “President Barack Obama’s promise of aid to the auto industry is welcome, but it would also be helpful to the Detroit automakers if he stopped badmouthing them. The president late last week said he expected to provide additional assistance to the struggling manufacturers, but he added that they couldn’t expect to rely on building more sport utility vehicles and depend on continued low gasoline prices.” Yeah, we pointed out the fallacy of President Obama’s pandering to the “Detroit’s comeuppance is due to the fact they were (are?) greedy bastards who forced Americans into SUVs” shibboleth. But we (and by that I mean and I) don’t support the Motown bailouts. Never have. Never will. And, as far as I know, I don’t live on Planet Claire. “While Obama acknowledged the huge slump in auto sales that is hampering the recovery of the auto firms, he still implied that they’re not making vehicles the public wants. That’s just not true.” A genuine WTF moment, n’est-ce pas?
There’s a big brouhaha brewing between an organization called Think Progress (TP) and Fox News Analyst Bill O’Reilly. After Billy Boyz ambushed ThinkProgress.org Managing Editor Amanda Terkel, TP is urging advertisers to pull their ads from Billy’s show. Here’s a response from a Ford spokesman who wasn’t spoking on behalf of Ford, but felt free to use FoMoCo’s imprimatur:
Thanks for the heads up. And while I agree with you about the rantings of the hopelessly pig-headed Mr. O’Reilly, recognize that I am just an innocent bystander in this email letter silliness. I work at Ford and support Ford, but have no idea how the decisions are made on where we advertise. Frankly, as a mainstream company, we advertise everywhere there are good ratings. That is not an endorsement of the show — that is recognition that people are watching the show. Don’t know why they watch that mindless ranting. But they watch in droves. Welcome to America, I guess.
Wow, how sexist is that? “Let,” as in “a man is naturally in control of conveyances”? No, of course not. “Let” as in “my wife always lets me drive.” Or, to be less British about it, “I always drive, for whatever reason.” If so, there comes a time in every driver’s life when they have to let their significant other take the wheel. Outside of alcohol-related designated driverdom, I’ve faced this, uh, transition twice. First, when my UK license was suspended. Second, on Friday, when a nature walk turned into knee destruction. And now I know why the minivan’s stoppers are shot; hurry-up and brake is not the best way to ensure pad life. It’s not that Sam’s a lousy driver; it’s just that I’m a horrendous passenger. So the answer to the above question is “only when I have to” and “hell.” You?
I know, huh? Anyone who spent five minutes thinking about Motown’s $42.4 billion (and counting) feast at the federal bailout buffet would figure out that the beneficiaries are using tax money to discount their products—to support an unsustainable small market share. OK, that last bit’s a bit technical. But the bailout = discount = unfairness media meme is just gaining traction in the MSM. And it’s no small point. As I’ve pointed out here before, those federally-sponsored new car discounts effectively punish automakers who didn’t run their companies into the ground and threaten their products, profits and jobs. The Detroit News wakes-up to the story this morning. Chrysler, you are the weakest link.
Another bucket of cold water on bailout plans for Opel. This time from Germany’s economics minister, Karl-Theodor zu Guttenberg. He used to be one of the biggest pro bailout flag-wavers; he even trekked to DC for a largely uneventful event. Now he signals to potential suitors of Opel that Berlin’s dowry will be less generous than hoped. “The wish of some interested parties, that the German government will assume the full investment risk over years is unrealistic,” Guttenberg said to the German paper Die Welt am Sonntag. He also warned other politicians not to raise false hopes amongst the Opel workforce. And he punts the ball back to Rüsselsheim and Detroit: whether Opel will get support from Berlin, “depends on the concept submitted by Opel and mother GM.”
Chancellor Angela Merkel will visit Opel in Rüsselsheim on Tuesday. She will come with empty hands or at least with empty promises.
In January and February 2009, China sold more cars than the US. From all indications, the same will happen in March: The US is preparing for a REALLY bad month, whereas China reports brisk sales. If this continues, China will be the world’s biggest auto market in 2009—with nearly unlimited growth potential.
If the stars align just right, China may even end up as the world’s biggest auto producer in 2009. China surpassed the United States in 2008 as the world’s second-largest auto maker and could overtake Japan as the top global car manufacturer in 2009.
The reason is not China’s phenomenal growth; it’s the dismal performance of Japan and the US. (Read More…)
Auto industry types tend towards hopeless optimism. On Friday, the Detroit Free Press gave the car biz’s rose-colored eyewear wearers an RTL (reason to live). “Big drop in March auto sales could be bottom, analyst says” sings the Freep’s now-standard, pre-monthly sales results tune: sales suck, they’re about to REALLY suck, but that’s it. We’ve hit bottom. Only this time the best the Freep can do is ONE auto analyst (Edmunds’ Jesse Toprak) and this money shot: “It is unlikely to get much worse.” Citation? “There has been encouraging economic news in the last two weeks. Housing starts rose 22% from January to February. Factory orders for durable goods such as home appliances increased 3.4% in February.” Yes, well, meanwhile, Volvo CEO Steven Armstrong told Autocar (or someone) that the NFSW world economy is good news for the brand that screwed itself by going upmarket. “We have a real opportunity for Volvo with respect to premium positioning. As people cut back, it becomes a little less acceptable to flaunt your money. Buyers who still want to reward themselves but don’t want to be ostentatious give us a great opportunity.” So great Ford can’t wait to ditch the brand.
Oh, and $8M. Or less? We shall see as the car in question, a 1939 Auto Union Grand Prix single seater, is up for auction this summer. “The 200 mph D-Type will be offered in Bonhams & Butterfields’ Aug. 14 sale of collectors’ vehicles in Carmel,” Bloomberg reports. “The silver rear-engined 485-horsepower racer was produced by the quartet of Horch, DKW, Wanderer and Audi. Helped by subsidies from the Nazi government, the ‘Silver Arrows’ of Auto Union and its rival Mercedes dominated European motor racing from 1934 until the outbreak of World War II.” Ach, ja. Die Nazis. Speaking of controversy, this is the same D-Type that was going to fetch $12M back in February ’07. Only Christie’s pulled the car four days before hammer time (sorry, Steve) due to questions about its provenance/authenticity. “Since then, further information was supplied by Audi Tradition, the heritage wing of the carmaker, said [Bonham’s Rupert] Banner. Audi identified the chassis as number 19, which was raced by Austrian driver Hans Stuck and finished sixth in the 1939 Grand Prix.” Bonham’s also confirmed that the car’s current owner is Abraham “Abba” Kogan, a Chinese-born Brazilian who manufacturers and leases gaming machines for the US and Japan. So, nothing untoward there, then.
The following email just came over the TTAC transom. Negotiations between Chrysler and the Canadian Auto Workers have broken down three days ahead of Canada’s bailout deadline and Uncle Sam’s defunct deadline for union concessions. Chrysler has already threatened to pull out of Canada. Given this stalemate, and the Presidential Task Force on Automobile’s determination to keep the zombie automaker in business, they just might.
Chrysler LLC Statement Regarding CAW Talks Attributed to Al Iacobelli, Chief Bargainer:
“We all recognize that we are in unprecedented times as it relates to the global economy and current financial crisis, which has a direct impact on the automotive industry. After several days of bargaining in good faith, Chrysler and the CAW have not reached an agreement that closes the competitive gap with other automobile manufacturers in Canada, to ensure Chrysler’s immediate viability.
Do you ever feel trapped in Monty Python movie? The B&B discussion following Edward Niedermeyer’s post, CARB So Crazy: California To Ban Black Cars, made me think so. First soldier: What? A swallow carrying a coconut? King Arthur: I could grip it by the husk! First soldier: It’s not a question of where he grips it! It’s a simple question of weight ratios! A five ounce bird could not carry a one pound coconut. King Arthur: Well, it doesn’t matter. First soldier: Listen. In order to maintain air-speed velocity, a swallow needs to beat its wings forty-three times every second, right? King Arthur: Please! First soldier: Am I right? I’m no Michael Palin or Graham Chapman, but I’ve got an idea or two about white and black colored cars.
A few years ago, Hans-Ulrich Sachs, a former Volkswagen board member, had a brilliant idea: He wanted to import Chinese Brilliance cars. Brilliance is BMW’s joint venture partner in China. Brilliance also makes their homegrown cars—which kind of look like a Bimmer, if you don’t look closely enough. The plan: Import them to Germany, and sell them for half of what a real Bimmer costs. A plan that couldn’t fail except that it failed miserably: A few months before the launch of the car at the Frankfurt Motor Show, the ADAC (the German equivalent of the AAA) crash tested the car supposedly under EURO-NCAP conditions. The car received one measly star. The video landed on YouTube, and Brilliance was done. Thousands of Brilliance cars already were in Bremerhaven, ready for sale. A marketing consultant, asked what to do, recommended: “Load them back on the boat and head for the biggest hurricane you can find.” A few days ago, ADAC tested a new Brilliance car. Now, all Brilliance can hope for is an earthquake. Or a sympathetic judge. This test could go to the courts. (Read More…)
I have a FWD car. One tire has a nail in it and probably can’t be repaired.
1a) If the replacement is the same model/size/brand tire, should I replace one tire or buy two?
1b) If one tire, should it go in the front right (to wear out the new tire faster, catch it up to the other 3) or rear (newer tires on back avoid oversteer)?
Same question as 1a and 1 b except:
2) if they don’t have the same model tire, and I am offered a different tread but same size/manufacturer/all season…
Lots of people get nails in one tire only, so hopefully your answer will get lots of Google hits! Thanks!
The news that the Presidential Task Force on Autos (PTFOA) has decided to “loan” Chrysler and GM more money arrived well ahead of the March 31 (Tuesday) deadline. No less a personage than the president confirmed that Uncle Sam would turn a deaf ear to the 60 percent plus of America voters who oppose Motown Bailout III (Don’t forget the DOE tour). The announcement removed any possibility that GM bondholders and/or the unions would satisfy the previous loan’s conditions for a major debt for equity swap, or that GM would get its brands sorted out. To counter-spin this wholesale lack of “progress,” Bailout III will claim that new, piano-wire like “strings” are attached. Such as?
Remember when the press/GM shareholders were after Car Czar Bob Lutz to take a haircut on his salary given that The General was well on its way to the bailout buffet. “I gave at the office,” Maxium Bob didn’t joke. And then they took away his corporate jet and he quit. Just like that. NSFW this. I’m outta here. Obviously, Detroit News columnist Daniel Howes doesn’t enjoy Lutz-like perks. But today’s column echoes the Czar’s imperious indignation. Danny’s mad as hell at president Obama for suggesting that Motown should make [more] concessions after its next bailout bonanza. What’s the biggie? Did Daniel forget to notice the word “after”? Yup. That and the fact that Detroit’s woes are entirely self-inflicted.
Sacrifice? What, exactly, has this town and its investors been experiencing the past three-plus years? Spring break? This notion, aired during the congressional inquisitions late last year, picked up by Team Obama and wielded by whoever’s trying to score points, that Detroit Auto hasn’t yet “sacrificed” in a (losing?) effort to fix itself is absurd.
So what, you ask, has Detroit done to qualify for this cry of basta? Jump!
Eyal Binshtock is the unlikely name of the web slinger who’s constantly on my NSFW to create a regular Bestcovery feature (and permanent link) on TTAC. And so we shall. Meanwhile, his best bud took these snaps of the new Porsche Panamera on the PCH. I’ve yet to see one in the flesh, but I hate big butts and I cannot lie. Never mind. I can’t wait to put the Panamera through its paces. But then I’m a Porschephile. And I have a thing for ugly cars. You?
Recent Comments