Sajeev is lookin’ for a steenkin’ Lincoln. Well his dad is at least. They want a late model Town Car in black that hopefully, preferably, has less than 50k miles on it and a very certain trim level. It’s not an easy request for me to fulfill. Despite the fleet focus for this model, Ford has well over a dozen different trim combinations for TC’s (e.g., Signature, Limited, Cartier). Visits to the auction for this type of inventory are surprisingly rare. A few keystrokes. A secret password. And I get to see everything within a 100 mile radius. I find . . .
The federal government has put the Cash for Clunkers (a.k.a. C.A.R.S. program) on hold. Supposedly, they’ve run out of money. The MSM is all abuzz with talk of extending the program, allocating more funds and the bummer of a congressional recess (no action ’til after Labor Day). But there’s talk that the number of clunkers hitting car dealers’ lots or the logjam on getting paid isn’t the real reason for putting Cash for Clunkers on hold. Do the math. The program is good for about 200k to 250k rigs, depending on the average rebate qualification. No way there were that many clunkers traded in over the six days since the program went live (official D.O.T. stats after the jump). The real story is that C.A.R.S. over-stimulated the market for new cars (even without a clunker trade); dealers are running out of new vehicles to sell. Or, more to the point, cars that consumers want to buy.
Well that was quick. The Freep is reporting that CARS will be suspended after only 4 days due to over-subscription. NADA is warning the Wall Street Journal that demand is quickly exceeding the $1 billion available. An unofficial NADA survey shows 25k qualifying deals that the NHTSA still has yet to process. And dealers sound pissed. “Their capacity to accept the applications is not adequate,” one dealer tells the Freep. “Dealers are spending all day trying to submit the applications . . . I have not spoken to one dealer that has received approval, and or has been funded, for even a single transaction.”
Do you have a vehicle that was eligible for the government’s CARS program until the EPA revised old mileage averages? If so, your vehicle is no longer eligible for the $3,500-$4,500 incentive. If you had set up a deal before the final rule came out, however, the government will hook you up regardless. “We’ve tried to come up with the fairest possible solution under the circumstances,” CARS’ long-suffering spokesman, Rae Tyson, explains to Automotive News [sub]. But it’s hard to see what exactly is fair about that. Didn’t NHTSA specifically warn that “if a dealer chooses to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule”? Why are the folks who ignored the warning being rewarded, while those who waited for the rules get the shaft? More importantly, if anyone got away with engine-melting a 1987 Alfa GTV (recently reprieved by the EPA mileage mulligan), there are going to be phones ringing in at least one congresscritter’s office. Hit the jump for a complete list of clunkers which saw their eligibility change due to the EPA revision.
Speaking of barnyards, someone forgot to tell Ford watchers not to count their chickens until they hatch. The MSM is ready, willing and able to pronounce the Blue Oval Boyz’ turnaround plan for the ailing American automaker as good as done, and skip the “it worked!” part of CEO Big Al Mulally’s canonization. The Detroit News is down with this fait accompli meme. “As one fund manager who controls a sizable chunk of Ford’s stock and bonds put it: ‘The biggest threat to Ford’s future is that Mulally steps off the curb tomorrow and gets hit by a bus.’ Such sentiments, blunt as they may be, are a testament to the progress Ford has made since Mulally took over as CEO in September of 2006. He predicts the company should settle into profitability by late 2011.” So that’s it, then, save “Mulally is no stranger to success” and “He’s been an agent of change” and “For many Ford employees, he has rock-star status” and I think they ought to think it out again.
Auto Motor und Sport picks up on a report in De Telegraaf about a wave of anti-Smart vandalism that’s sweeping the city of a thousand “coffee shops.” Apparently, Amsterdam’s police force has been forced to post patrols around the city’s many canals in an attempt to curb the latest “weekend sport”: Smart tipping. The extent of this European version of cow tipping is unclear, although Amsterdam’s Smart Center reports “a number” of incidents. Apparently, the fact that the diminutive city cars park facing canals (instead of parallel parking like everyone else) makes them especially vulnerable. However Dutchamsterdam reports that the vandalism is not exclusive to Smarts. “In recent years vandals have also targeted other small vehicles, including scootmobiles and tiny cars from the Canta brand — both used primarily by people with handicaps and limited mobility,” is their analysis. Finally, a use for all those damn Neighborhood Electric Vehicles!
UK magazine Which?Car reports that automakers in the Land of Hope and Glory have hiked prices, effectively killing the advantages of the country’s cash-for-clunkers (a.k.a. scrappage) scheme. The mag cites three examples: “The price of a mid-range Ford Fiesta has jumped from £11,570 in October 2008 when the car was launched to £13,195 in July 2009—a massive 14% increase.” And “Vauxhall’s new Insignia looked affordable in January 2009, priced at £17,981 but it has now broken the £20K barrier with a list price of £20,430 in July 2009, also a 14% jump.” And “Another chart-topping supermini, the Nissan Micra, was priced 11% higher in July 2009 (£12,395) than in September 2008 (£11,200), although its equipment has been improved.” Said the actress to the Bishop. Yes, well, the conclusion is inescapable. Ish.
The Chicago Sun-Times reports that the Windy City’s police chief has issued new guidelines for the use of deadly force (shooting people, in layman’s terms). “Chicago cops will now be permitted to shoot at drivers or passengers in cases of felons fleeing in motor vehicles.” And there you have it, minus the shit storm that’s brewing on this bad boy. Of course, all TV cops already have that right, so why not the Chi Town Po-Po? “The liability to the City of Chicago could be astronomical.” Ah. Previously, on America’s Most Amazing Parting Shots, “Officers were allowed to use deadly force to prevent death or great bodily harm to themselves or another person, but it didn’t allow them to use force to apprehend a fleeing forcible felon,” said the paper’s police source. “If confronted by an oncoming vehicle, officers were simply told to get out of the way, unless they were put in great danger.” Good thing the policy told them to get out of the way, I suppose. Anyway, the cops have already gone into damage control mode.
Seriously? If Alfa and Fiat are going to be added to the Chrysler/Dodge/Jeep mix, something has got to give. And why not Chrysler? Maybe it’s just that every time I hear the word Chrysler, my immediate association is Sebring. Which is more than enough motivation for me to wish the brand dead. Perhaps the Chrysler name could live on as an umbrella brand (i.e., GM). As a vehicle brand though, Chrysler is toast. Or am I missing something?
“We’ve gotten thousands of thousands of questions regarding issues that Congress never dreamed of,” admit NHTSA spokesfolk to the NY Times. Say it ain’t so! The latest clunker stumper is the issue of gray market imports, which do not have official EPA ratings. When the Gray Lady’s Christine Negroni asked NHTSA if her gray market 1985 Mercedes 230E would qualify for a CARS rebate, the answer was likely accompanied by a heavy sigh. “It’s a question of determining if there’s a comparable model being sold in the U.S. that can determine fuel economy,” explains NHTSA’s Rae Tyson. “Our lawyers are going to have to make a decision.” Meanwhile questions like this have flooded the CARS hotline with some 45,000 calls. Not that calling the hotline would help with the gray market question. “If the question has stumped me, it’s going to stump the hot line too,” says Tyson. “It’s going to require an interpretation that we’re not equipped to make right now.”
Down on the showroom floor, the guys talk about the “Needs-Payoff:” trying to turn a customer’s perceived need into a coveted sale. This marketing concept finds its Ford translation in the highly anticipated solution, the Transit Connect. The Blue Oval Boyz see gold in them there panel vans—assuming gas prices go north of the three dollar mark as their number crunchers and street-walking doom preachers predict. Gas prices be damned; the Transit Connect screams success for many self-made citizens, provided they don’t carry more than 1600lbs or tow anything to bring home the bacon.
Well, possibly more compelling. But first the sale. “I think that we’re past midfield with GM. There are always issues that you have to deal with, but I think we’re progressing well,” Roger Penske tells Automotive News [sub]. The bad news is Saturn’s rebirth isn’t going to be as simple as loading a boat with fun, quirky, never-before-seen-on-these-shores foreign cars and slinging Saturn badges on them. And while the details are being worked out (just how foreign and how quirky are we talking?) Saturn will be doing business as uninspired, uh, usual. “Under the terms of the tentative deal between GM and Penske, the automaker would supply Saturn with Aura sedans, Vue SUVs and Outlook crossover vehicles until at least 2011,” reveals AN. Epsilon, Theta, Lambda, oh my! Saturn hasn’t so much been saved as it’s been frozen in time. And Roger Penske won’t even discuss Saturn’s post-GM future. It looks like Saturn’s dealers are going to have to curb their enthusiasm just a little bit longer.
The Ad Hoc Committee of Consumer Victims of Chrysler is a group of litigants left claimless by a federal bankruptcy judge’s fiat, when Chrysler jettisoned “old Chrysler’s” product liability. Quietly into that long good night they will not go. Earlier this week, the group attempted to hand-deliver a protest letter to Chrysler CEO Sergio Marchionne prior to the new company’s first-ever Board of Directors’ meeting. The company’s head of security intercepted the missive, promising to give it to Sergio [video here]. While they await an official response *crickets chirping* the group has released this none-too-subtle silent movie, attempting to shame the car company into honoring its legal obligations.
AutoExtremist Peter DeLorenzo is an asshole. Just kidding. Somehow, the carmudgeon got it into his head that TTAC (a.k.a. TIC-TAC) called him an asshole. Did we call him an asshole? Of course we didn’t call him an asshole. We don’t call anyone an asshole. Delusional, sure. Misguided? Oh yeah, we’ve called people misguided. Pietro too. But calling someone an asshole is a perfect example of what the Brits call “using a sledgehammer to open a walnut.” It shows no style, no finesse, no class. Two out of three ain’t bad, as we Yanks are wont to say. I mention all this because Sweet Pete is launching the rumor (picked up by Autoblog) that Chrysler will launch a fourth US brand called Ram. Obviously, that makes no sense whatsoever—which is why the AutoExtremist offers no explanatory justification and Autoblog sucks away the oxygen of publicity even as it wheels-in Peter’s tank (couldn’t resist).
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