C’mon. This whole Fiat and Chrysler hook-up is a joke, right? I mean, what could possibly motivate an Italian car company that got its ass kicked seven ways to Sunday in the US market for peddling sorry-ass rust buckets and [almost] providing some of the worst dealer service in the history of four-wheeled transportation to re-enter the fray under the Chrysler banner? That’s like Kodak teaming-up with Polaroid to make high end digital cameras for the Japanese. Like Cambridge’s instant photo folk, ChryCo’s business model is so busted all they’ve got left is an iconic brand name (Jeep). And there are still plenty of Americans who know that Fiat stands for “Fix It Again Tony.” So what’s it all about Alfetta?
Everything has unintended consequences, but sometimes they are positive. A new study commissioned by T&E, the European Federation for Transport and Environment, says there is an overlooked element in the public discussion about corporate fuel economy. Lower overall fuel consumption as caused by more economical cars, T&E says, would lead to lower fuel prices. “Economic benefits of energy conservation policies in Europe are consistently underestimated. But until now very few have made the point that a policy-induced decline of demand for oil could also result in lower oil prices, and hence greater economic benefits.” They’re not talking about the flawed US CAFE system, however.
The preparations for GM’s June 1 Chapter 11 filing continue apace. The Financial Times reports that the ailing American automaker wants [to use federal funds] to pay hundreds of “key” suppliers while it’s dividing itself into Michael (good) and Garth (bad) GM. The FT’s experts reckon The General will get permission to do so to maintain its status as a going concern, as the artist formerly known as the world’s most profitable corporation enters the court’s protection. (No mention was made of political considerations, but they’re there too.) But no matter how you slice it, this is gonna be a cluster-you-know-what of epic proportions. To wit: “A judge could also force GM to prove that individual suppliers would stop operating or shipping goods if they were not paid, rather than letting GM use the money as it sees fit. The critical vendor legal doctrine can be ‘subject to abuse and unfairness’, one attorney said. Roughly two-thirds of GM’s suppliers also sell parts to Ford or Chrysler, and some may be able to absorb late or reduced payments. ‘It’s a game of chicken,’ one attorney said. ‘How do you figure out which suppliers really will stop supplying tomorrow and which won’t?'”
I have a 2004 GMC Yukon XL that’s developed a coolant leak that three shops can’t identify. Someone mentioned something about it on here. Does anyone have any more info—is this another GM problem?
Nothing can truly open your eyes to the futility of a declining industry than a free market. In this respect, automotive retailing is really getting what it deserves. You literally now have tens of thousands of people wasting their lives away at dealerships. The parts guys waiting for the Pavlovian phones to ring. The service folk trying to serve the dual masters of near-term revenue and immediate customer service. And of course you have sales people. From the professional and decent to the human train wrecks. These folks are there to lubricate the American economy with everything from brilliance to bullshit. Is all of this “people power” smart?
It’s a hard knock life for a truth-telling autoblogger. On one hand we have auto-related websites sitting in the happy-clappy pews—whose main contribution to veracity is reprinting PR releases for dissection and pointing us towards source material. On the other hand, we have Automotive News—who can’t ask a proper follow-up question even when the news source simply repeats the only word spoken in Mel Brooks’ “Silent Movie.” And then we have the big boys: The Wall Street Journal, New York Times and Bloomberg. Distressingly, these behemoths have shown a remarkable willingness to cite unnamed sources as the basis for their reports on the Motown Meltdown. Not that anyone (but us) is keeping track but the resulting stories are usually misleading PR put-up jobs, that turn out to be dead wrong. The whole “sale of GM brands” story is a perfect example . . .
On February 3, the KTVT-TV evening news covered the fight brewing in Duncanville, Texas over the use of red light cameras. Reporter Stephanie Lucero attempted to balance her piece about drivers trapped at the notorious intersection of Danieldale Road and US 67 by speaking first with a local businessman who claimed personal experience about how the traffic cameras installed there made the city safer. “There has been a noticeable difference in the safety of this intersection since they put them in, so I, for one, like them,” Steve Madison told KTVT.
You may recall that TTAC commentator stephada asked TTAC’s Best and Brightest whether he should buy a Porsche Carrera S or 4S. Decisions. Decisions. He sent us a heads-up on the process, and the result.
I decided to get the 4S. Greed is good, but gluttony is better, and no question: the way this thing handles is a sin. I test-drove both the S and 4S. Whereas the S has PSM step in from time to time to slow the pace and permit me to recover, the 4S has some kinda mind-meld between the AWD and the PSM, putting the driver in an otherworldly video-game reality of point-and-shoot driving: point wheels and mash the Go pedal. What an incredible machine. The mild-mannered driver becomes part of the car. A car-borg.
The Wall Street Journal reports that the firm owned by the head of the Presidential Task Force On Automobiles (PTFOA) is under investigation for accepting $1.1m in illegal kickbacks. “A Securities and Exchange Commission complaint says a ‘senior executive’ of Mr. Rattner’s investment firm met in 2004 with a politically connected consultant about a finder’s fee. Later, the complaint says, the firm received an investment from the state pension fund and paid $1.1 million in fees. The ‘senior executive,’ not named in the complaint, is Mr. Rattner, according to the person familiar with the matter.” Yes, well, this the same Wall Street Journal that repeated quoted a “person familiar with the matter” that a pre-bailout GM – Chrysler merger was on the cards. OK, so are you ready for this? Sure? “The SEC alleges in its complaint that a meeting was arranged between the senior Quadrangle executive and a brother of New York’s then-deputy comptroller to discuss acquiring the DVD distribution rights to the low-budget film, ‘Chooch.’ [22 views when I posted it] The deputy comptroller, now under indictment, and his brothers produced the movie.” How much do you reckon they paid for it?
CEO Bob Nardelli is punting. Boot ‘Em Bob has told the troops that Chrysler would cede control of its board and senior management to Fiat if the two automakers “merge.” “The U.S. government and Fiat would appoint a board of directors for Chrysler, with a majority of them independent directors who are not employees of either automaker,” Nardelli said in an internal memo intercepted by Reuters. “The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat’s concurrence.” Seeing as Nardelli walked away from Home Depot with over $240 million in severance pay, one wonders how much it would cost management (that’s Uncle Sam now) to get rid of him this time ’round. Cerberus exits stage right. American Leyland enters stage left. Anyway, here’s the weird part: Reuters is a bit more specific about the government’s participation in this newly formed Chrysler Board than Automotive News, even though Reuters credits Automotive News for the info.
Normally, the MSM “sells” whatever the automakers are selling. Something to do with advertising, perhaps. The autoblogosphere—no stranger to junketry and the press car gravy train—is not unfamiliar with this paradigm. You’d be forgiven for thinking that Chrysler’s incipient collapse would force both camps to at least mention the domestic’s forthcoming dissolution when hyping a new model. You know, “As Chrysler struggles to survive, the company has announced plans to produce an electric roadster, which has less chance of seeing the light of day than a Palestine Mole Rat.” To its credit, Autobloggreen almost goes there: “It looks like the Dodge Circuit EV may have won the ‘who wants to be the first electric Chrysler concept to go into production’ contest. Although they still haven’t officially made an announcement, Chrysler’s viability plan did list an ‘EV Roadster’ as part of their 2010 product line. Based on the lightweight Lotus Europa and using drivetrain parts pilfered from UQM . . . its 150 to 200 mile range is significantly higher than many other electric vehicles in the works and should add to its appeal . . . Since the Circuit will probably change somewhat as it makes the transition to a production vehicle, tell us in the comments section what you would like to see in the sales-floor version.” I’m thinking cupholders. You?
The general thrust of the General Motors Death Watch series—the American automaker is headed for bankruptcy—has been proven right. In all but the technical sense, GM is already bankrupt. It depends entirely on $19.8 billion worth of federal life support (a.k.a. “loans”) to survive. Until June 1. At which point the re-constituted American Leyland will need more federal “investment.” Same again? Sure! More to the point, it’s been over a year since I’ve seen a comment promising “See you at Death Watch 2345!” But I’ve made a lot of mistakes along the way. I was sure that bankrupt former GM parts supplier Delphi would be the final straw. Somehow, the zombie parts maker has kept sufficient distance from the former mothership to avoid delivering the killer blow (which Wagoner may have been snorting). Uh-oh, here’s comes another bullet! And here comes the Presidential Task Force on Automobiles (PTFOA), ’cause Uncle Sam’s favorite automaker can’t spend over $100 million without Steve Rattner’s say so.
Don’t forget idle. Whether Bimmers, Audis or Lambos, V10s sound like the Four Hoarse Men of the Opera-calypse at full chat. But I’ve yet to hear one that sounded even vaguely stimulating at idle. (Remember the SRT-10 pickup?) On the other hand, the E39 BMW M5 V8. Or . . . what?
