Yesterday, we had a post about far-reaching plans of GM. They wanted to sell exactly 17,335 made-in-China cars in the U.S.—by 2011. And triple that audacious number (51,546) by 2014. Or so they say in a (supposedly) confidential 12-page presentation to members of Congress. Trouble is, nobody really knows who will make the cars.
Gasgoo says today, “Shanghai Automotive Industry Corporation (Group) (SAIC), GM’s Chinese partner, said it hasn’t got such information from GM yet.” Mei you! Never heard of it. Could it be that someone just wants to rattle the UAW’s cage? If that’s the case, then the colleagues in Shanghai blew their cover. Or, less sinister, but more likely, does the left hand have no knowledge of the actions of the right? Or maybe, the cuts are so deep that they sent the P.O. by slow boat to China?
“8 Mile” rapper, Eminem, may not be Detroit’s most famous son, but it’s not for lack of trying. Or, for that matter, posturing. The recording artist has decided that the effect of the Motown meltdown on the working stiff is top notch fodder for the hang dog (or is that Snoop Dog?) side of his public persona. Marshall Mathers was born in a pleasant middle class suburb and earned $18 million or so last year notwithstanding. Obviously. But penning a paean to pistonhead paradise lost isn’t enough for our boy, he’s got to bring it. Well, them. Two hundred of them. TV Squad [via Yahoo! via the Detroit Free Press] reports that Eminem is transporting 200 unemployed Detroit workers to the set of “Jimmy Kimmel Live” this Friday just to prove a point: he’s a man of the people and his new album is dope. No, wait; that’s not it. I’ve got it! Wall Street has screwed all the selfless, salt of the earth automotive workers who’ve never heard of Eminem and, other than the free food, booze, and flight this stunt entails, wouldn’t cross the street to give Marshall the time of day. Nor him them. So I guess it’s a wash. Peace out, yo.
“You don’t need banks and bondholders to make cars.”
—Anonymous White House official to the Wall Street Journal‘s Neil King Jr. and Jeffrey McCracken. Check out their detailed breakdown of the White House/Chrysler Bondholder negotiations at the WSJ.
Ladies and Gentlemen, children of all ages: we give you the first Chevy Volt jingle, courtesy of Sarah Spiegel (shown here interviewing former CEO Rick Wagoner) and gm-volt.com! Listen to the ditty at the link and for lyrics hit the jump.
Cruisin’ with the Chairman - kewego GMnext host Sarah Spiegel chats with GM Chairman and CEO Rick Wagoner about the leading the GM Century Cruise Parade, his favorite car, and what it’s like to drive the Corvette Z06 E-85 Pace Car.
Of course not. It’s going to take a whole fistfull to make this spaghetti western happen. The Freep reports that when he replaces Bob Nardelli as Chrysler CEO, Marchionne will remain an employee of Fiat to avoid Treasury limits on executive compensation at firms receiving “extraordinary assistance.” Under these rules, compensation of Chrysler’s top executive is limited to $500,000 excluding restricted shares of stock. Marchionne earned around $4 million last year. Citing bankruptcy documents, the Freep explains that “under the deal, any of Chrysler’s top officers can be deemed a Fiat employee who’s “seconded” to Chrysler, and therefore take pay from Fiat beyond the Treasury cap.” Since Chrysler does just about everything “in consultation” with the Treasury these days, it’s hard to understand why Geithner’s own rules are being so blatantly flaunted. Oh well.
The AP (via Yahoo!) reports that Chrysler will ask Judge Gonzalez to cancel “at least” 800 dealer franchise agreements on Thursday. The news comes from lawyers of Cincinati firm Squire, Sanders & Dempsey, who are organizing opposition to the move. Automotive News [sub] has more on the effort, reporting that the National Automobile Dealers Association is soliciting $4,000 contributions from members to create a legal defense fund. Also, just because a dealer doesn’t get the axe on Thursday doesn’t mean they’re out of the woods yet. Mother Fiat is sees dealer cuts as business item number one for its new Chrysler division, and Thursday’s cuts are being called “preliminary.” Dealer cuts “won’t be a huge catastrophic number,” Jim “It’s Always Sunny In Auburn Hills” Press tells Bloomberg. After all, about 50 percent of Chrysler’s 3,188 dealers generate 90 percent of its retail sales.
The Ford-as-Survivor meme has properly takenhold in the mainstream media. But how much of the cheerleading is wishful thinking? Matt Debord of thebigmoney.com figures there’s no reason to get to excited about Ford’s $300 million stock offering, and indeed Ford’s stock is down considerably today. But Ford’s troubled supplier Visteon turned a $2 million Q1 profit, insists the Freep. The first quarterly profit since 2006! What you have to read in the whole piece to find out is that the profit comes courtesy of Visteon’s spun-off and bankrupted UK facilities. Meanwhile, Automotive News [sub] reports that Visteon financial filings admit the firm’s “ability to continue operating as a going concern is, among other things, dependent on the success of discussions with the lenders.”
“First shots of the new merc e-class amg. Outran my 911 easily on the autobahn. Its idle wasn’t a v8. Will blog when I get home. [sent from iPhone]”
I frantically typed these words on my (overly) touch sensitive iPhone whilst parked at the Eifel Tankstelle on the A1 Autobahn. I knew the vehicle following me on the B-258 coming back from the Nürburgring was unusual, simply due to its camouflaged fascia hiding massive brake ducts, and some sporty fender bulges.
It’s not news per se. After all, we knew that Wilmington was on GM’s “endangered plant” list. But the idea that GM will somehow attract a buyer for a factory that builds a dead-in-the-water sportscar is laughable. After all, Chrysler still hasn’t found a home for its Viper nameplate, a brand that carries far more heritage and prestige than the Skystice. So what to do with Wilmington?
Driving the Chevrolet HHR sent your humble author into a massive 1980s flashback; no drugs required. The Japanese car supply/demand imbalance during Paula Abdul’s Laker Girl days meant any Japanese model could find a market, regardless of merit. One of the least meretricious was the Isuzu I-Mark; a car so relentlessly non-descript that boredom was primary safety hazard while driving one. Twenty years later, that particular strain of car flu, automobilis mediocritas, has mutated and infected the Chevrolet HHR, turning it into one of the dullest transportation appliances of the twenty-first century.
You’d better be, because the White House told Wall Street Journal that it will hold onto its GM stake for “at least two years.” Out of “necessity,” no less. And burning $10bn in cash per quarter all the way. According to the WSJ report, the White House still doesn’t want to involve itself in day-to-day operations. Is that offer only good outside of bankruptcy? If Chrysler is the canary in the coal mine, the answer seems to be yes.
Yes, it’s a post about something other than the feds getting the US taxpayer to squeal like a pig to save Chrysler and GM from the uncomfortable lesson that actions have—OMG—consequences. In fact, the closer we get to the Big Kahuna of GM’s C11, the more determined I am to provide car-related posts. After a regrettable hiatus, car reviews, both large and small, are back. “Piston Slap” and “Hammer Time” continue apace (thanks, guys). And I’m bound and determined to get some more product reviews headed your way. In that spirit of “Oh, yeah, life goes on long after the thrill of living is gone,” here’s the inside dope on GT5, via escapistmagazine.com, after le jump. Spock! Damage control! It appears we are not digitally configured for damage, Captain. That’s a relief. Indeed. Bones. Dammit, Jim, I’m a doctor, not a videogame producer. I can’t just add source code like that! The whole game could lock up and crash. Do what you can.
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