American-owned supplier firms, not so much. Automotive News [sub] reports that Fiat’s plans to replace Chrysler’s entire “car lineup” with its own models creates an opportunity for Italian supplier firms to steal business from their American competitors. You know, the ones which would have created a “death ripple” in the American economy if Detroit were not bailed out way back in December. Chrysler’s last merger was “a catalyst to bring more German suppliers to North America,” says Michele Vannini, North American head of Italian engine maker VM Motori S.p.A. “The same thing can happen for Italian suppliers with Fiat and Chrysler.”
The NY Times is reporting that President Obama will announce new emissions standards tomorrow that are aimed at ending the discrepancy between Californian and national emissions standards. The federal effort will combine California’s emissions standards with the Corporate Average Fuel Economy standard, creating a unified national benchmark. This will force OEMs to clean up emissions by 30 percent by 2016, while preventing California from moving the goalposts again, say industry officials. The upshot? By 2016 car offerings must average 42mpg while trucks will face a 26.2mpg average requirement.
The Federal Reserve Bank is spending your (and your great-grandkids’) money in lots of creative ways these days. But some minuscule portions of it go to boring humdrum stating-the obvious analyses like this report, “From tailfins to hybrids: “How Detroit lost its dominance in the U.S. auto market.” Well, boring, perhaps to the well-informed B&B here at TTAC, if they’ve kept up on their assigned reading. If not, and a very thorough (but not overly long-winded) analysis is your cup of tea, read away. If you want the Cliff-Notes version, make the jump here:
Triskedecaphobes beware: I make it 13 days until GM files Chapter 11. It will be interesting to see which meme means business on the day. Will the popular press parrot Detroit’s party line: comeback interruptus (i.e., unforeseeable events destroyed the best laid plans of mice and men)? Or will karmic retribution be the topic du jour (i.e., they killed the electric car)? No matter how the Monday morning quarterbacks parse it, there’s no doubt that Detroit’s decline will serve as THE case study in monumental failure for those who don’t want to read Gibbon’s “The Decline and Fall of the Roman Empire.” Always ahead of the wave, TTAC’s Paul Neidermeyer has already shared his analysis of this debacle. Paul’s warming up his Dawn of the Dead essay for the actual event. Meanwhile, a number of our Best and Brightest have sent me a link to a BusinessWeeksynopsis of “How the Mighty Fall: A Primer on the Warning Signs.”
The Freep‘s Mark Phelan has a new paean to the Chevy Volt mule’s electric grunt, saying the Cruze bodied tech-tester has “immediate torque for acceleration most sporty small cars would envy.” As GM prepares to build the first run of Volt-bodied test mules starting in mid-June, it’s bumping up the media presence of its last best hope by offering flacks like Phelan another test drive. And this time around the Volt’s “sporty acceleration” tops the talking points. “The test vehicle ran with smooth, quiet power,” reports Phelan, “but driving it felt reassuringly like getting behind the wheel of any new car.” Which conveniently is “a key goal for the Volt program,” according to GM EV Maestro Frank Weber. Another “key goal?” Making it look good enough to draw interest at its $35K price point.
In the ongoing drama between Porsche and Volkswagen, the MSM tends to forget that this is also a tale of two unions. Volkswagen is organized not to say owned by the German metal workers union. With 2.3 million members, IGM is the single biggest union in the world. Half the VW supervisory board belongs to the unions. In case of a deadlock, the decisive vote lies with the stockholders. The unions can also count on the state government—with its blocking minority vote— being “sympathetic” towards their suggestions. Porsche has their own union representation: The Porsche Workers’ Council. So just as we’ve got Porsche – Piech battle royale, there’s an IGM vs. Porche Workers’ Council cage match. Let the games begin! Or, uh, continue.
Less than three weeks after Chrysler filed for bankruptcy protection, it looks as if the Obama administration will pull off its goal of completing the carmaker’s restructuring by June, allowing it to emerge as a smaller, more viable contender in the global auto market.
Who pressed the Easy button? Reading between the lines, it’s clear that the New York Times editorial board’s faith in “new” Chrysler stems from the fact that they’re planning to build the kind of cars [theoretically] favored by people who live in large urban areas. Hence the fact that The Gray Lady uses the phrase “fuel-efficient” twice in two sentences.
Sajeev, my 2005 Dodge Durango (4×2 Limited with Hemi and tow package) hit a critical juncture in April. The truck hit 70,000 miles meaning the 7/70 power train warranty expired, and Chrysler just BK’d. Since the vehicle is in great shape, good for road trips, is all but paid for, and is worth less to a dealer than it is to me, I plan to keep it for awhile. I have been told the 5.7 with the 5 speed auto is a fairly bulletproof power train, and with proper care and feeding should last a long time. The truck gets no severe service and is driven fairly gently, 70/30 highway/suburban use, 18,000 miles per year.
To keep it running I am debating keeping with the OEM scheduled 5000 mile oil changes (usually available for about $22) or switching to Mobil One at 10k or 15k change intervals. If I switch to synthetic oil, would you suggest a “better” quality oil filter (and what brand)?
The Detroit News reports that Ford’s wind-down of its Mercury brand continues apace (i.e., very slowly). Now that the mothership has eliminated its standalone Mercury franchises, they’re using the same process of attrition to grandfather the brand’s models to death. As of Thursday, Ford will no longer build the Mercury Sable. I know, it’s a crime, right? “Ford only sold 1,158 Sables last month, down 37.8 percent compared to April 2007.” Yup, the Sable’s another D-platform loser. “That will leave Mercury with just four models,” the DetN writes, displaying an uncanny knack for numeracy, “including the Mountaineer and Grand Marquis, both of which are scheduled to be killed over the next couple of years. Mercury is supposed to get a new small car, but Ford has no other models planned for the brand at this time.” At this time? Brrrr. Will someone please close that door? Hang on; what’s this?
Speed cameras have emerged as a top political issue in the province of Manitoba, Canada. The ruling New Democratic Party (NDP) is standing by its controversial decision last week against issuing refunds for motorists who were issued speed camera tickets in so-called highway work zones when no workers were present. In January, a court declared that such tickets violated the law (view opinion), but the NDP maintains that payment of a ticket is an admission of guilt. The opposition parties are making the most of the situation.
In an article about US Treasury Secretary Tim Geithner’s inability to tie his own shoes, the Washington Post leads with the heretofore disclosed fact that Wagoner’s looking forward to a $20 million payday. While the Post paints Geithner as an incompetent manager, that’s a no-win proposition no matter how you look at it. Stiff Rick and the guy’s bound to reveal the finer points of Uncle Sam’s takeover of a [former] blue chip company, including the deal they promised Wagoner to get him to jump. Pay him off and the howls of indignation will rile the nation, pissing off potential GM customers, further sinking “good” GM’s ability to sell someone a car.
Anyone who’s spent any time around preschoolers knows they can ask some really hard questions. Fortunately, even questions like “why is the sky blue” or “where do babies come from” can be answered to their satisfaction with a little thought and careful wording. Questions from gearheads are a bit tougher and aren’t as easily answered. Here are nine questions I’d love for someone to answer. That is, if there really are answers to be had.
Another one bites the dust: The Volkswagen Santana, the car that provided the foundation of China’s mass motorization, will be put out to pasture in 2012, Gasgoo reports. The car’s history in the PRC provides a unique insight into the country’s move towards motorization.
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