A number of Florida cities that rushed to install red light cameras without legislative authorization now face legal challenge. Florida attorney Jack L. Townsend, Sr joined with the firm Edwards and Ragatz on July 30 in filing a class action lawsuit against the city of Temple Terrace for allowing American Traffic Solutions (ATS) to operate a traffic camera program designed to generate $3 million in annual revenue primarily from vehicles turning right on red lights. Because the state legislature has consistently declined to allow automated ticketing, the legal status of such systems has even been questioned by the leading photo enforcement vendor. “Legal opinions indicate that automated enforcement in the state of Florida remains illegal,” Redflex Traffic Systems explained in an Australian Securities Exchange filing (view statement, page 6, 1.8mb PDF). “Some competitors have proceeded at risk with early programs.”
In an interview with Bloomberg, Ford’s European CEO, John Fleming, said that The Blue Oval Boyz aim to sell their Volvo-shaped money pit by the end of this year. More importantly, they have no intentions in keeping any remaining stake in their money-losing Swedish subdivision: “it has not even been considered.” Fleming also confirmed that Ford’s negotiating with “a number of parties” about the sale. Need they mention any names? Ford is looking for $2 billion for the moribund brand—less then a third of what The Glass House Gang paid for Volvo way back in 1999. Not to mention billions more spent in a hugely unsuccessful attempt to take the brand up market. “It’s not the global economic downfall that has sparked the decision to sell Volvo,” Fleming said, without dwelling on Ford’s patently inglorious management. “We’ve been in a process of separating Volvo and Ford for a year already.”
Thanks to Uncle Sam’s Cash for Clunkers program, even the weakest of America’s mainstream automakers will live to die another day. Meanwhile, the so-called “mass luxury” brands are hurtin’ for certain. The falling tide of the global economic meltdown has left Audi, BMW, Cadillac, Lexus and Mercedes stranded, flopping around on the metaphorical beach, gasping for the oxygen of financial lubricity. It’s hard to feel sorry for any of them. The upmarket marques marked the last ten years or so by chasing volume sales with “entry level” models that cheapened and weakened their brands. Is it any surprise that the very customers that fueled their expansive profits have abandoned them in droves, as badge snobbery has kept pace with financial security (or lack thereof)? In other words, the fact that these “luxury” brands are “suddenly” in worse trouble than everyone else is their own damn fault.
More fodder for the “Chrysler adjusts to life as a Marchionnian pawn” file, as Reuters reports that the Chrysler C-platform may be headed to China. Yes, anyone who’s ever driven a Caliber, Compass or Patriot will have a joke at the ready, as ChryCo’s compact threesome already ooze that “straight outta Tianjin” flava. Maybe Fiat figures that if GM can sell Buicks there by the boatload, a Compass might come across as mildly aspirational. On the other hand, this was already tried with the PT Cruiser. Back then, Chrysler couldn’t find anyone in a nation of a billion people who wanted to produce bulbous, tacky, out-of-date hatchbacks. It’s hard to see why Fiat thinks this go-round will be any different.
Back in loony desperation of pre-bailout Cerberus-era Chrysler, plans were floated for Chrysler to build a Ram-based Nissan Titan in exchange for a ChryCo-branded version of the Nissan Versa (and possibly the Altima). Now that Fiat is running things in Auburn Hills though, Chrysler has access to modern compact and mid-sized platforms. And Fiat doesn’t want Chrysler paying Nissan to help it compete in South America, one of Fiat’s most important markets. According to Automotive News [sub], the break “leaves Nissan with a bigger problem than any facing Chrysler.” Namely, the Titan question. Wait, seriously? Nissan recently killed off the Quest and Infiniti QX56 to make more room in its Canton plant for diesel-powered light commercial vehicle production. If/when the economy does start coming back, that market could be a better place to be than the crowded, cutthroat full-size pickup market. Alternatively, Toyota is drowning in Tundra capacity. If Nissan wants to be in the pickup market so badly that it’s willing to beg for a rebadge, that seems like the place to start. Release after the jump.
Is the 15,000 maintenance really necessary? I have an 2008 FJ Cruiser and I am just hitting 15K. I had the car for about 6 months and the dealership charges $298 for the 15,000 maintenance. I have always thought that these were just traps for dealers to charge a ridiculous amount of money for oil changes and inspection. I checked what they provide and it looks like lots of visual inspections and just an oil/filter change and tire rotation. The car still feels new to me, and I don’t I need anything more than an oil change and tire rotation. What are your thoughts?
The Freep reports that final cash for clunker numbers show the program coming in under its $3bn budget. $2.877bn was spent on 690,114 deals, according to government data. The bad news? C4C did a mediocre job stimulating the domestic firms; according to the Detroit News. GM, Ford and Chrysler captured just 38.6 percent of all clunker sales, down considerably from their joint 45 percent market share in July. Toyota captured 19.4 percent, GM snagged 17.6 percent, while Ford only ended up with only 14.4 percent—just ahead of Honda which had 13 percent. Check out the NHTSA’s PDF postmortem press release on the program here. Though the Detroit Three didn’t do so well in the “cash” portion of cash for clunkers, it swept the clunker list. Ford alone had five of the top ten clunker trade-ins, with GM and Chrysler rounding out the list. Hit the jump for top ten buys and trade-ins by model.
Clear-sighted auto industry analysts tell Automotive News [sub] that “Just a few months ago, GM was not in a position to retain Opel.” But now, according to these wise seers, GM doesn’t have to sweat the recovery of its embattled European division. “They were fighting on life support. Now the patient has recovered,” is the verdict. Huzzah! For lo, GM hath looked unto the hills from whence cometh its help, and it figures more just might be on its way. “I think the last year has shown that the government can be very creative when it wants to be in how it structures these deals,” says another analyst, who suggests that “private investors with possible credit support from government sources” could ride to Opels rescue on behalf of GM. After all, if anything, Opel is the bailout that got away. “There really wasn’t a view articulated (on Opel). It was one of several challenges that GM faced,” says an anonymous U.S. official “In its restructuring, there really wasn’t a particular view on a specific path.” And the door is still open for a taxpayer-backed rescue of Opel.
To my mind, this is video is some of the better corporate communication to come out of Detroit in a while. It’s the perfect counterpoint to GM’s perception-gap whining, giving ordinary folks a glimpse inside the manufacturing line while highlighting quality control improvements. Only the choice of hosts is bit confusing; sure, Mike Rowe is the Robin Leach of blue collar America, but why invite the comparisons to, say, sheep castration?
Does this headline seem familiar? We noted a while back that British reliability records showed Chrysler and Fiat sharing space at the bottom of the rankings. Now, Glass’s Guide (via Autocar) has ranked British resale values by model, and Fiat’s Alfa 166 sedan takes dead last place. Not that this is entirely surprising; after all, reliability and resale tend to go hand-in-hand. The troubling part is that abominable resale values are already a major drag on Chrysler’s viability. How on earth is Fiat going to improve this desperate shortcoming for Chrysler, when it can’t beat the resale bug with its own products?
Amidst a lawsuit by Old Chrysler creditors accusing Daimler of stripping Chrysler’s assets comes another suit against the German automaker, this time by New Chrysler. Automotive News [sub] reports that Chrysler actually owes Daimler about $78 million in volume shortfall payments for 2.2-liter diesel engines supplied by Daimler. Because Chrysler is balking on those payments, Daimler stopped delivery of steering columns and torque converters, as a way of pressuring Chrysler to make good on its payments. But Chrysler claims that “the volume shortfall payment issue was resolved in an April 17, 2009, pre-petition agreement that settled a number of disputes between Daimler and the old Chrysler.” As a result, “Chrysler Group believes that Daimler’s misconduct is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group,” say ChryCo spokesfolks. Grand Cherokee production at Chrysler’s Jefferson North assembly plant in Detroit is threatened by the supply dispute, as is Dodge Charger and Challenger and Chrysler 300/300C production in Brampton, Ontario.
I’ve got to come clean: I use an automatic car wash. I’m WAY too OCD to start cleaning my whip at home. Thanks to a press release from the Splash Car Wash chain, I’ve got a cover story: environmentalism. The company whose name is begging for a spear wants us to know that it’s qualified for the International Carwash Association’s WaterSavers™ program. And you haven’t. Which makes you—and you know who you are—bad, bad people. “The Facts: Using a commercial car wash helps you go green because compared to driveway or parking lot car washing, effluent is routed to treatment facilities as opposed to the curb and storm drains. Once in storm drain systems, toxic wastewater can enter local lakes, streams, rivers and oceans where it becomes a threat to aquatic life. The contaminants found in car wash wastewater are twofold. Firstly, there are the residual chemicals and matter — more severe than run-of-the-mill dirt and dust — that are freed from a car’s exterior when washed. These substances can include oils, greases, rust, trace amounts of benzene and residues from brake pads and exhaust fumes. Secondly, the wastewater can include chemical residues originating from the cleaning agents (soaps, degreasers, sprays, wipes, etc.) used in the car washing process.” And then there’s the water . . .
Pistonheads has spy shots of Camaro drop-tops Holden on to the good times in GM’s Australian outpost. “These soft-top Camaros have been spotted lined up at the Australian Fisherman’s Bend Holden plant, which seems to support the idea that we will see production versions of the V6 and V8-powered muscle cars sooner rather than later.” Note the word “seems.”
Recent Comments