As the National Enquirer used to say, Lyle Dennis and GM are closerthanthis. On his gm-volt.com website, the doctor turned propagandist reports on a conversation with Jon Lauckner, VP Global Product Development (a.k.a. “Mr Volt”). Much like GM PR, Dennis has made the psychological leap from proof of concept (for Chevy’s plug-in electric/gas hybrid) to real world logistics—without actually completing the first step. Down the rabbit hole we go, with gm-volt.com’s “GM Close to Launch Plan for the Chevy Volt.” Oh, before I share the spin, I’d like to point out that GM was really close to being close to having a launch plan for the Volt long before they were close to having a launch plan for the Volt. Right. So. Lauckner. (Read More…)
Bloomberg reports that Citigroup (bailout bill to date: $45 billion) could team up with GM and Chrysler ($17.4 billion so far not including aid to finance units) to distribute the $5 billion recently allocated to the dead-alive auto supplier sector. This irony-free revalation comes courtesy of an Original Equipment Supplier Association document leaked to Bloomberg. Citi would act as the “third-party servicer” for the program, which guarantees suppliers’ accounts receivable “no matter what happens” to the automaker that promised to pay for the parts. Suppliers will have to pony up two percent of the receivable to qualify, three percent for expedited delivery. A number of zombie suppliers are expected to miss even this low bar. Meanwhile, we’re wondering how AIG didn’t manage to get a piece of this action.
Autobloggreen recently got its paws on a presentation (PDF, read the whole thing) from the California Air Resource Board’s public “cool cars workshop.” And let’s just say the thing exudes the kind of bureaucratic overreach heretofore only imagined by folks sporting the latest in tinfoil chapeau. Here’s the logic: cars that get hot when they sit require greater air conditioning, which increases fuel consumption and (tada!) air pollution. And since architectural surface coatings are 25-35 percent reflective, there’s no reason not to require similar levels from auto paint, right? Skyscrapers, cars; potato, potahto. CARB will require vehicle surfaces to reflect at least 20 percent of solar energy by 2012, a figure that no black auto paint can currently achieve. One third of OEM palettes must meet the 20 percent mark by then, and all OEM paints must meet the goal by 2016. Oh, yes, and by 2016 even collision repair shops have to use the special paint. The only mitigation for these rules are if you sufficiently increase the Rd factor of your cars windshield glazing. And just to keep a song in your heart, “other compliance options are under investigation.”
I was struck when I did my old Beetle review by how much worse the steering and handling felt than I remembered. The ’67 Imperial also seemed a lot floaty-boatier than I would have expected. Thus, I found very interesting your implication [in the Piston Slap question about the Explorer] that ride could deteriorate badly in less than a decade. Are old car reviews doomed to vastly underrate the cars relative to how they drove when new—unless they’ve recently been overhauled?
You’d kinda hope that the Presidential Task Force on Automobiles (PTFOA) would negotiate with Chrysler, GM, the United Auto Workers and GM’s bondholders down to the wire. After all, the actual deadline for the yes/no decision on the next round of bailout billions is March 31. So it kinda makes sense to hold their feet to the fire until the very last minute, forcing them to satisfy the conditions laid down by the first, $17.4b federal bailout. But nooooooo. Six days out from the deadline, the leaky ass quango known as the PTFOA has let slip the fact that they will, indeed, bless (a.k.a. “loan”) Chrysler and GM with $22B of your hard-earned tax dollars. Maybe more! But that’s OK, ’cause THIS TIME there will be strings! Timelines! Deadlines! The Wall Street Journal reports . . .
You knew this would happen. Whenever things go wrong or come to an end we can’t help but look back and try to figure out why. To look for that one pivotal event that changed the course of events forever. So what did it for GM? When did it happen? After careful analysis I pinpoint their demise to the 3.8L V6 (a.k.a the 231) of the 1970s.
You know how the endless parade of talking heads constantly bemoans the “freezing up” of global credit markets? They’re full of it. Credit markets are just fine. Just as long as you happen to be one of the world’s most profitable automakers. According to Bloomberg, Porsche Holdings has secured a €10B (with options to expand to €12B) refinance of a credit facility from a consortium of 15 banks including Barclays, Deutsche Bank, UBS and Credit Suisse. The refinancing was for cash borrowed by Porsche to buy its majority position in Volkswagen. Porsche is seeking another €2.5B in order to up its VW stake to the 75 percent level it needs to bring VW cashflow onto its books. And though lending to Europe’s largest automaker seems like a relatively safe investment for panicky banks, Porsche has been living by the sword from a financial standpoint. “The renewal of the credit line is a relief for short- term funding concerns,” says one Credit Suisse analyst who recommends that Porsche merely maintain its current investment in VW.
In an odd interview in automotorsport, Lars Hägerborg of Saab Sweden claims they now have concrete facts about a new owner. As we all expected this really doesn’t mean the end of Opels re-badged as Saabs (not to mention Chevy SUVs) as Lars says GM’s mind-NSFW game, er, cooperation will last at least another five years. Supposedly GM Powertrain Sweden will continue to share parts and tech with the other GM divisions but will keep “the best bits to themselves.” Judging by the turbo I4s that Saab has been cranking out lately, I’d say they can keep whatever they have and nobody will mind. Next in the process is lining up some government bailout funds to (as Lars says) “[be] a loan that allows us to move forward.” Lars also whined that the automotive press is too harsh on Saab for their abject failures and that we should instead focus on the future and their new [vaporware] models which are yet again later than expected. The new models of course being the Opel in a Saab suit 9-5 and the “Chevy in a Saab suit” 9-4. Good luck Saab, you’re gonna need it.
VW is killing the Rabbit, reports C&D. Well, the name anyway. And not a moment too soon. Sure, there’s some history there: the Rabbit was one of the first foreign cars to be mass produced in the US, helping kick off one of the most significant trends in US automotive history. But the Rabbit name also embodies so many of the compromises that have become stock-in-trade for North America-only models. Ugly, “Americanized” interiors and shoddy quality (not to mention the square headlights) marred early US production of VW’s rodent Golf-alike. When the name was revived in 2006 in a blaze of nostalgia marketing, it was saddled with a thirsty, primitive 2.5-liter engine while Euro-spec Golfs boasted a wide range of more advanced, efficient engines. Ultimately, the Rabbit name has come to signify unnecessary compromise and VW’s arrogance towards an American market it sees (and helps define) as crude and unsophisticated. With the Polo headed stateside and the Golf name returning, VW is not only re-rationalizing its nomenclature (games!), it’s taking a chance that America is ready for smaller, lighter, more “European” products. Well, sort of.
Honda planned its new Insight hybrid to cost less than Toyota’s ubiquitous Prius in hopes of snagging economy-minded hybrid shoppers. Unfortunately for Honda, the Insight wasn’t quite the bargain they’d hoped for. Despite rumors of an $18,500 base MSRP during planning, the Insight ended up just a few grand away from the Prius at $20,470 base (including delivery charge). And now Toyota is returning the favor, telling Automotive News [sub] that it’s planning a Yaris-based “economy hybrid” to undercut the Insight. “We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz and Yaris,” says Prisu chief designer Akihiko Otsuka, using both the Japanese domestic and overseas market names for Toyota’s supermini. The implication is that this baby hybrid will hit all of Toyota’s major markets possibly beginning as early as 2011. But Honda isn’t taking the news sitting down reminding AN that a Fit Hybrid is also being planned which could bring Honda’s hybrid entry cost down even further. All of which is good news for hybrids, which seem ready to finally leave behind their eco-accessory reputation and get stuck into some good, old-fashioned value competition.
“It’s a Jeep thing, you wouldn’t understand”. This was the vaguely condescending response I got when I queried my then-girlfriend and current wife about why in the world she would choose such an unrefined and slow mode of transportation. Surely, you can understand my point of view. I mean, the Jeep Wrangler is the ultimate, absolute antithesis of everything performance-related in the automotive world. Well, that is true so long as we are talking about road-going performance. Some, like my wife, get more excited about the prospect of slogging through mud and muck than teeter-tottering on the bare naked edge of control around a downhill decreasing-radius corner. And, for those who get their jollies in the dirt, the Wrangler Rubicon is the ultimate starting point for a true performance vehicle.
A Fairfax County, Virginia General District Court judge earlier this month backed away from driving under the influence of alcohol (DUI) charges filed against a motorist after a defense attorney cast doubt on the accuracy of the county’s breath testing machines. Police and courts often entrust machines like the ten-year-old Intoxilyzer 5000 with the authority to exonerate or convict a motorist of serious charges that carry significant monetary penalties, loss of license and jail time. Richmond DUI attorney Bob Battle found that this particular machine, which is being phased out in Virginia, has a significant weakness.
You think only in America will someone be crazy enough to pour coffee in her crotch and then sue McDonalds for selling hot coffee? Come to China for some real crazy. Chinese businessman Yuan Jiguang bought himself a Cadillac. If that wasn’t crazy enough, Mr. Yuang drove his Caddy into a truck. The airbags didn’t deem the collision severe enough to deserve deployment. Yuan Jiguang banged his nose on the windshield and ended up with a doctor’s bill of 989.89 yuan ($144.80). China’s doctors are cheap. Then Yuan Jiguang went to the local court in Jiangxi province. And whom did he sue? (Read More…)
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