“Just in time for Earth Day,” trumpets Chrysler Blog, “Chrysler showed off four all-electric Town & Country minivan concept vehicles to the U.S. Postal Service, with the hope that mail delivery service across the country could soon be cleaner and quieter.” Digging a little deeper, Automotive News [sub] reports that Chryco “plans” to provide a fleet of 250 EV T&Cs to the postal service, with testing to begin later this year in Michigan, NYC and North Carolina. The A123 Systems-powered EV minivans, previously seen only in Chrysler’s ENVI vaporware lineups, are reported to have a range of 40–50 miles. Just like Chevy’s Volt! With about as much chance of making it into production. Never mind; Pr waits for no man.
The EPA is currently soliciting comment on a proposed waiver to allow 15 percent ethanol blends (E15), and despite enduring a year of hard knocks, the ethanol lobby is making a desperate stand to reverse its declining fortunes. Peruse already-submitted comments, and you’ll notice that Growth Energy (the new K-Street tip of the ethanol spear) dominates the list with a host of spurious “supporting materials.” The group’s main argument (PDF) is fine-tuned for the jobs-crazed economic-political climate, centering around the assertion that “according to one estimate, allowing blending of E15 has the potential to create at least 135,000 jobs.” Which sounds great as long as you don’t look at the “hidden” cost of increasing blending credit receipts. Needless to say, Growth Energy isn’t asking anyone to go there, having helpfully created some talking points to help make commenting easier. We suggest commenting on the proposed waiver as well, but rather than dutifully regurgitating GE’s talking points why don’t you go through our E85 archive first. Or check out a few recent news stories after the jump which illustrate our unrelenting skepticism of so called intermediate ethanol blends.
After yesterday’s post on rip-offs on autotrader.ca, I looked into the Internet used car sales fraud deal. It’s a BIG deal. The industry estimates that some twenty-two million used cars were sold online last year. According to a recent FBI report, the number of complaints the agency received re: Internet fraud rose 33.1 percent during the same period, representing a $265 million loss. Yes, well, that’s the reported figure. No one knows the actual size of the car classified rip-off problem and which way it’s trending (to use the proper verbization). The companies who provide the websites where these shady deals go down ain’t gonna to fill in that blank, now are they? Autotrader.com spokesman Mark Scott wouldn’t disclose the number of fraud tips sent to them by aggrieved/suspicious users. But he claims his employer investigates all leads within an hour of receipt.
You gotta think the head of the Presidential Task Force on Automobiles (PTFOA) is in deep shit re: the growing kickbacks for public pensions scandal—given that Steve “Chooch” Rattner couldn’t be more politically connected if he was tied to President Obama with an umbilical chord made of piano wire. Not only was Rattner Obama’s personal choice to “fix” the US auto industry (i.e., Chrysler and GM), but the ex-journalist also manages Mayor Bloomberg’s personal fortune. As The New York Timesreports, Rattner also knows a Senator or two. “Mr. Rattner forged close personal ties in New Mexico, which invested $20 million in Quadrangle. He met with Senator Jeff Bingaman, a Democrat from that state, on at least one occasion, according to a person with knowledge of the meeting. From about 2004 until early this year, Quadrangle also employed the senator’s son as an associate. A spokeswoman for Senator Bingaman said that the senator’s son did not raise money for Quadrangle, but instead helped make investments. Senator Bingaman was not involved in the pension process, she said.” Sure, coincidence. I buy that. But then I believe Rattner and his 24 PTFOA teammates are more qualified to run the US auto industry than say, someone with industry experience who doesn’t depend on his ability to grease political palms for his or her livelihood.
Both the existing Lorinser Limousine as well as the prototype of the extremely bold countenances: in particular their black coated grill makes them both “masked heroes of the autobahn”. The “bad touch” is additionally underlined on the four-door by the dark headlight caps and is expressed on the sports car prototype by the black-coated bonnet and roof. The fast duo also draw attention to themselves with a muscular front spoiler which is elongated further to the front. A colour-contrasted middle section of the bumper, the typical Lorinser gills in the fenders as well as the voluminous side sills skilfully underline the biceps of the automobile. In addition, the clearly-purist design of the basic bodywork is given interesting new optical emphases, including a firm rear, which the Lorinser rear apron forms with the diffuser. There is also a dynamic spoiler on the roof as well as something powerful for the ears: four sonorous exhaust pipes set off acoustic fireworks when you put your foot down. This power produces a tingle in the base of the stomach just like the power of the performance-improved engines from the Mercedes tuner.
I just thought I’d pass on an ongoing good/bad incident. First the bad: my wife’s 2003 Neon went into the dealer with a mysterious problem that they have determined requires replacement of the cylinder head. In a dramatic departure from my usual luck, the car is still under the 7/70 warranty so the expense will be small.
However the factory has informed them that they do not have a replacement. They are now checking with other dealers. Given that the Neon sold in numbers that Chrysler can only dream about attaining now, I cannot imagine this bodes well for anyone who bought a current Chrysler product.
Chrysler bondholders have officially rejected the Presidential Task Force of Automobiles’ (PTFOA) “offer” to exchange 85 percent of their secured debt ($6.9b) for a stake in a reconstituted ChyrCo. The Wall Street Journal reports the bondholders’ counteroffer: the lenders would cut Chrysler’s first-lien debt by $2.4b, in exchange for a 40 percent equity stake and a Chrysler board seat. Oh, and they want Fiat to put up a billion dollars. Which Fiat won’t do because. . . it doesn’t have it. The bondholders’ position sounds about right. Remember: this is secured debt. If/when Chrysler is sold off in pieces, the bondholders would recoup about 65 cents on a dollar. Settling for anything less would be against their financial interest. But not their political interest. Not only has the U.S. Treasury rejected the bondholder’s proposal, they’ve cast aspersions on the banks’ patriotism. No really.
I dropping you a note to alert TTAC readers about a growing problem in the autoblogosphere. There’s been a marked increase in fraudulent collectible car ads posted on www.trader.ca. Normally, the bogus ads are easy to spot: they tout pristine classics at firesale prices. In many cases, the “seller” only provides an e-mail contact. If they list a phone number, it’s usually a fax. But even buyers who forget that “too good to be true” means just that should caveat their emptor. Some of the ads offer desirable cars at prices that seems good but not great. I recently inquired about a Mustang. I became suspicious. When I asked for close up snaps (to see if the seller could provide them), the seller became indignant. When I stated flat out that I wouldn’t pay a cent without these “proof of life” pics, the “seller” disappeared.
In short, be careful out there! You don’t have to be a complete fool to be parted from your money.
You thought you’ve heard it all? Now hear this: “The private equity firm Cerberus plans an engagement in a possible new European Opel concern,” the Düsseldorf, Germany, newspaper Rheinische Post writes, citing unnamed German government sources. If true, doesn’t Cerberus know how to say “uncle?” If not true, isn’t crack illegal, even in laissez-smoke Germany? According to the newspaper’s deep throats, the hellhound is interested in a chow-down of 25 percent of an independent Opel. Fiat would be part of the party, last week’s denials notwithstanding. According to the Rheinische Post, the prospective gang bang has been organized by Roland Berger. Roland Berger, the German consulting company, is in the employ of GM Europe. Roland Berger, the owner, has been hired by the German government to advise them in sticky Opel matters. He’s also on the Board of Directors of Fiat, says Der Spiegel. Conflict of interest? Never heard of it.
The remnants of the British automotive industry offer a wealth of important lessons for America’s declining industry, having made the hero-to-zero leap a few decades ago. And though British Leyland would certainly constitute the major lesson from the fall of the British Automotive Empire, the overemphasis on “heritage” among survivors of the BL experiment offers teachable moments of its own. During and after the sunset on Britain’s auto heyday, investments and advantages in technology, performance and reliability were ceded to the Japanese and German firms, as the backwards-looking British industry got lost in its own history. “Charm” and “Britishness” became the raisons d’brand for Jaguar, Rover, Landie and Rolls/Bentley in the 70s, 80s and 90s, leading to a creative funk only recently be shaken off by the brands’ new guides. Case in point: Jag’s XJ.
Fiat, the great Italian hope for the American auto industry, has a lot of expectations to live up to right now. Not only are the Torino boyz tackling the miasma of despair that was the Chrysler corporation, but Automotive News [sub] reports that Fiat could “form an alliance with General Motors’ core operations in Europe and Latin America.” Italian-American Leyland, anyone? Fuhgeddaboutit. According to anonymous sources, talks with GM are in the “early phases,” which means that nobody has suggested that an allied Chrysler, Fiat, Opel/Vauxhall and GM Latin America might be too much concentrated fail for one corporation to handle. And Fiat’s got the usual unnamed competition for Opel to contend with. “More than six people have expressed interest, serious people,” says GM CEO Fritz Henderson of his firm’s unwanted Opel/Vauxhall operations. Why so serious? Did previous offers come from folks wearing giant shoes, tiny hats and rubber noses? More importantly, if one of these “more than six serious people” comes from Fiat, might it not be time for a reality check on that firm’s transformative power?
And the bigwigs spent ten years building brand equity with cheap, basic transportation. And lo, the Japanese automakers headed upmarket, ceding entry level business to the Koreans. And the Seoul sales train smiled for it was good. And then came the Genesis, and Hyundai’s new day morphed in the minds of its creators from budget luxo-fighter to an opportunity for sub-brand confusion and ADD.
It’s nice when Detroit News auto journalist Mark Phelan and I agree. We recently had a head-to-head on BBC World Service where I called GM and Chrysler zombie automakers, and Phelan didn’t. In a piece in this morning’s Free Press—“Bankruptcy no fast cure for GM“—the Irish scribe shares my belief that a GM C11 will be, as the Brits might say, the bunfight to end all bunfights. But first, let’s put the pro in prolepsis, and begin with Phelan’s final paragraph: “GM’s cost-cutting progress has allowed it to pass on some of the loan money the government has promised, but the company’s own projections say it could need another $4.5 billion to $12 billion if the economy remains moribund.” That’s what I call a big spread. But there’s something else about Phelan’s finale that gets my goat . . .
Who needs ’em? Of course the soccer mom and sales folk amongst us really “need” the perpetual motion of a second car. But what about the married schlep who walks to work? Or the enterprising couples that work together? For them a second car may be nothing more than an inconvenience and an expense. Some folks in high places (and low places) say you should go for an alternative that conserves resources and costs less. Fair enough. But is that always a rational choice?
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