The Sebring/Avenger twins aren’t going out of production come the 2010 shutdown of the Sterling Heights plant where they are currently produced. Inside Line has it straight from the horses, er, mouth: Chrysler spokesman Rick Deneau.
Deneau: “We definitely have plans for these vehicles beyond December 2010. That’s about all I can tell you, but it’s pretty definitive.”
Inside Line: “They aren’t being killed?”
Deneau: “Nope, we have flexibility in our plants. We said [that] all along. You could build Sebrings and Avengers in Belvidere. I’m by no means trying to make a manufacturing statement. But we have plans for them beyond December 2010.”
Hey, he warned us. When the president announced Chrysler’s C11, he mentioned in passing that the feds would provide GMAC with “fresh funds” to take over ChryCo dealer and retail financing (from Chrysler Finance). Well, Uncle Sam’s gonna need to back-up a dump truck to git ‘er done. Bloomberg reports that the former lender (now bank) will require an $11 billion “top up” just to not go tits up. That’s after a last-minute, rule-changing $5 billion infusion (plus $1 billion bestowed upon GM to help them help GMAC). And before The Presidential Task Force on Autos figures out how much more money GMAC needs to finance customer purchases and keep Chrysler dealers solvent. Ah, but do they want to avoid dealer death? As we’ve reported previously, GMAC has been busy pulling financing from selected GM dealers—an end run around GM’s franchise agreements designed to avoid the threat of dealer lawsuits against the mothership for termination. Can we expect the same for Chrysler dealers? Already happening.
The Kokomo Tribune reports that the funds are for several former executives facing securities fraud charges, including former CEO and president, J.T. Battenberg. The KT describes Delphi’s 15,000 retirees as being “riled” by the decision. Considering the The Delphi Salaried Retirees Association just negotiated $8.75 million for continued health insurance benefits, I’d imagine “riled” is some heavy-duty midwestern understatement. They’re definitely seeking a motion to block the request. According to court papers though, $6 million has been deposited in the defense fund since Delphi entered bankruptcy aproximately 4.5 billion years ago (based on carbon dating). “Where is the justice?” asks DSRA interim chairman, Dennis Black. “Where is the money coming from?” Nope, I got nothing.
More Janus-like indecision from a member of our Best and Brightest who’s torn between two lovers, feeling like a fool. “Jack” wants to buy American (whatever love is). And like many of us, he suffers from some sort of right brain/left brain; head/heart deal. So, he made a list:
Pros for the CTS-V
1. Helping out Joe Six Packs up there in Lansing and at all the parts companies across the country. I’m not a jingoist, but I’ve asked that Detroit build a car that’s competitive—and they have. And in a tie, I’m cheering for my fellow Americans.
2. The absolute best new car value for money in the over $50,000 category with respect to performance.
3. New car smell and complete control over the hoonage that I’d inflict on my car.
Bloomberg reports that Renault/Nissan is looking at partnering with Penske Automotive Group to make a bid for the Saturn dealer net, according to “people familiar with the matter.” Nissan wants to use more of its North American capacity to build Saturn-branded vehicles based on either Nissan or Renault products. Penske would distribute the vehicles through existing Saturn dealers, using its “plug and play” model already in use with Smart dealerships. In this arrangement, Smart takes customer orders and deposits via a Web site, allowing dealers to keep fewer cars in inventory. Would this work with a larger model line? Does Nissan/Renault really want to compete with itself? Does GM really have another month to solicit offers (as it plans to) for Saturn? Will those offers improve over the next month? Er, maybe, apparently, no and definitely no. Still, if Penske and Nissan want to pull the trigger, it’s hard to see how GM could say no. And maybe, just maybe, Saturn could once again become America’s most innovative dealer network.
Consumer Reports drops a sly wink at the irony-free Daimler-Chrysler tagline while revealing that (surprise!) Fiat’s reliability is little better than Chrysler’s. Of course, pre-retreat American Fiat records speak for themselves. Usually in acronym form (Play It Again, Sam, as the old folks say). But even 21st-century Fiat ranked only three places higher than Chrysler in Britain’s 2008 Which? Car reliability survey. Did we mention Chrysler took last place? Honda and Toyota in first, etc. But CR plays it cool. Real cool. “By the limited indication we have, it looks like reliability may be a challenge,” is the money shot. Way to represent the data!
And, golly, is it a touching scene. The Richmond (Indiana) Palladium-Item reports that the small town of Connersville is tooling up its effort to become the future home of Carbon Motors, makers of the E7 purpose-built police car. “A crowd estimated at 1,000 people attended a community prayer service Sunday night at Spartan Bowl, praying the 1,350 jobs Carbon Motors could generate will come here,” reports the P-I. Paging Norman Rockwell!
Earlier today, Robert noted that “GM doesn’t have a fucking clue what it’s doing with its products or brands.” For more proof of this, consider this report from GMInsideNews which claims that a Buick-branded version of Opel’s Astra has been approved for the North American market. According to the GMI story, the 2012 Buick “Astra” will be built at either GM’s Lordstown, OH, assembly plant or at their new San Luis Potosi, Mexico, assembly plant starting in 2011. The crazy part? “At this point the car has NOT been approved for Buick in China, that decision will be up to Shanghai GM.”
Considerare l’aritmetica, asks Rob Cox at breakingviews.com. Sure, the Chrysler freebee deal has sent Fiat stock soaring, but if you strip away the non-auto components of the Fiat group and factor in the firm’s $8 billion in debt, and what’s left is worth only $5.5 billion, according to Cox’s math. Which means Fiat will face some major challenges in cobbling together its 5 million annual global sales empire, a fact we’ve already explored here. And based on Chrysler’s insatiable appetite for taxpayer dollars, Fiat’s going to have a tough time just feeding the cash-burn beast.
The Wall Street Journal reports that GM is in talks with Renault over the future of the Saturn dealer network. GM has already given up on the possibility of receiving any kind of cash consideration for Saturn; a deal with Renault would see Saturn essentially handed over to the French firm. According to the WSJ, Renault is considering Saturn as an American-market brand for its Renault and Samsung Motors products. Why Renault wants to compete with its sister-firm, Nissan, in that brand’s biggest market isn’t immediately apparent. Maybe Ghosn doesn’t like Marchionne hogging the spotlight. Meanwhile, Chinese automaker Geely has submitted a bid for GM’s Saab “division” (it’s more at brigade strength currently). Unfortunately, nobody is sure if this bid is for real or if it’s just a gambit to pressure Ford into accepting Geely’s Volvo bid. Or maybe Geely has just fallen for all things Swedish. We’re told to expect a Saab deal in “early summer,” and with bankruptcy looming, look for Saturn to be offloaded post-haste as well. (Thanks to rod panhard and Mr Sparky for the tip.)
One of our sources reports that Chase has just told Chrysler dealers that it will no longer loan them money to buy Chrysler products.
Just got the call. Chase has officially terminated the floorplanning of Chrysler vehicles. Given the freeze at CFC [Chrysler Finance], now nobody can buy cars. Supposedly the haulers won’t deliver units because of payment concerns. A suggestion: see if the sales projections match the dealer network. My take is they aren’t even close . . . meaning, the expected losses to the taxpayer are going to be through the roof.
Let’s face it? I’ve been covering GM’s slide into bankruptcy for well over four years now, and it never ceases to amaze me how the people inside the company persist in trying to paper over cracks in the company’s operations that make the Grand Canyon look like a paper cut. In this case, a personage no less than Vice Chairman Tom Stevens gets in the Fastlane to tell the world that GM doesn’t have a fucking clue what it’s doing with its products or brands. “Although Saturn’s future is likely not to be within GM now, I can assure you our commitment to hybrid, plug-in hybrid and advanced battery technology is a key element of GM’s reinvention. I’m pleased to let you know the plug-in hybrid technology will be applied to one of GM’s four core brands. Stay tuned for which one, and in the meantime, I’ll enjoy reading the speculation.”
The point of the original Gumball Rally: cross the country in the fastest possible time without getting caught. While, at the same time, not killing anyone. It was a non-PC salute to Richard Nixon’s double-nickel speed limit. A political statement, of sorts. How in the world can you “recreate” this event with sponsorship, blogs, YouTube posting, and people without any political consciousness driving “arrest me” supercars that are 50 or more miles per hour faster than the original participants’ wheels (which included a converted ambulance)? Answer: easily enough, given the large number of magic feather missiles owned and occasionally operated by the rich and famous. I know: we’re giving these idiots the oxygen of publicity by even mentioning their pursuit of attention. But it’s time for TTAC Best and Brightest to rag or rave over this clear and present danger to public safety and auto enthusiasts’ image. If supercar owners want to do this sort of thing, they should either take it on the track or enter “open road racing” events. Ironically, sensibly, open road competitions consist of time trials on closed-off public highways: a safe place for over-testosteroned drivers to compete for something that benefits us all: a Darwin award.
I was given a 2001 Monte Carlo about 1 year ago. I have put on about 10,000 miles (186,000 miles now) and the transmission no longer goes into overdrive. I don’t believe the previous owner ever had the trans serviced. I am thinking I should replace the fluid and filter however I am afraid that could cause additional problems. Any advice?
Volvo has released its “Focus on the future of Volvo Car Corporation in the 2008/09 Corporate Report” (download “pocket version” pdf here). The report is stuffed with useful information for any private equity firm or car company looking for a nice little Swedish number. For example, it’s nice to know that safety is still on top of the Volvo food pyramid. And don’t expect Volvo to tie one on; the carmaker has one employee in Thailand. And here’s news: the Swedish automaker’s second largest market (after the US) is . . . Sweden, accounting for 47,750 sales in ’08. NOW how much would you pay? Of course, it’s quite the buyer’s market for car brands these days, what with GM jettisoning Saturn, Saab, HUMMER, Pontiac and, perhaps, Opel and Vauxhall. Maybe Holden. What the hell: make an offer for the whole company. Meanwhile, motoring moguls fancying Volvo should address all enquiries to “Big Al” Mulally at Ford Motor Company. You also might want to cc the US Treasury Department, just to be on the safe side.
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