William Vukson, author of The Great Auto Crash for a livechat about the decline of Detroit, the collapse of the American market for new cars, and US fiscal and trade policy here at TTAC at 33 pm Eastern time. Mr Vukson will be taking your questions about his book and the state of the American car market and auto industry, so don’t miss it!
To say that the auto industry has had a rough several years would be an understatement of epic proportions. The bailouts of GM and Chrysler dragged many of the industry’s challenges into the open, and the dramatic rescue effort brought an unprecedented level of public awareness of long-festering problems with Detroit’s business model. Here at TTAC, these troubles have provided much grist for our discussions, which tend to focus on the product, business and customer care factors. But behind the decades of Detroit’s weak products and poor business practices, lies a political-economic narrative that tends to be left out of the discussion. In End of a Dream or The Great Auto Crash: An Inside Story, economist William Vukson fits the great sweep of macroeconomic policy since Richard Nixon into a slim volume, and explains Detroit’s dramatic collapse in terms of trade and fiscal policy rather than, say, Detroit’s “Deadly Sins”.
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A new study of the country’s largest red light camera program found no significant benefit to the use of photo enforcement. Rajiv Shah, an adjunct professor at the University of Illinois at Chicago released the final version of his exploratory analysis into Chicago’s photo ticketing program, which boasts 188 cameras.
The car was the champ of the German Abwrackprämien-mania of 2009: Retire your clunker, collect €2000, and for just €5000 of pocket-change, you get a real car with a real trunk and 4 doors: The Dacia Logan. The car, built in Renault’s Romanian subsidiary sold more than 150,000 units ion Germany since its introduction. It drove car executives bonkers, and engineers to their workstations to design low-cost cars. Now, it’s being pulled off the market. The reason? (Read More…)
In the first nine months of the current fiscal year Porsche sold slighty fewer cars than in the same period of the previous year. But they made more money: They are looking at operating profits of €0.6b on sales of €5.2b. That’s a double digit operating profit, ladies and gentlemen, and none of the put and call hanky-panky is included. Now what do you think is the catalyst for the wunderbar numbers? Are you sitting down? (Read More…)
Now here is the perfect place for electric vehicles: Hong Kong. Range anxiety? Not here. Hong Kong is a city where no trip is more than 20 miles or so one way. Driving into the hinterlands is blocked by a border and by the necessity for secondary mainland Chinese license plates. Registration taxes on cars are high, they vary from 35% to over 100%, based on the size and value of the car. Gasoline prices are high, about half of the price is tax. Fertile grounds for EVs. (Read More…)
The Honda strikes have been settled – more or less. Now it’s Toyota’s turn. Workers at an auto parts factory in Tianjin, China, run by a Chinese subsidiary of Toyoda Gosei, 42 percent owned by Toyota, went on strike Thursday and had not returned to their jobs today, a Toyoda Gosei spokesman confirmed to the New York Times. The factory makes plastic parts for a FAW-Toyota joint venture assembly plant in Tianjin. It’s not the only strike that affects Toyota. (Read More…)
Ron Gettelfinger retired and Bob King took his place as President of the UAW. Mr King has some pretty big shoes to fill, but the name is a good start. After all, Mr Gettelfinger helped persuade President Obama to bail our GM and Chrysler (can’t say I blame him, quid pro quo, and all that). So what can Mr King do to really show the rank and file that he means business? Better working conditions? Input into designing cars? More job security? Nope. His next step is to make sure that Detroit and the transplants are evenly matched, so to speak. (Read More…)
The comments on yesterday’s review of the Caprice Classic Estate reminded me how fundamentally deep the Ford-vs-Chevy rivalry is among American auto enthusiasts. Even in the modern era, when both iconic brands are on the run from Toyota, Hyundai, and (soon) the Chinese, there’s still time to catch one’s breath and take a swing at the other guy.
So. The “Panther” platform is scheduled for termination within the next year or so. The General Motors B-body departed nearly a decade and a half ago. There will likely never be another American car of the size and proportions of those two. Which was your favorite? My thoughts, and a link to a credible source, after the jump.
J.D. Power has released the results of its 2010 Initial Quality Survey (IQS). As in previous years, the release stresses that Detroit has improved, but now to the point that the average for GM, Ford, and Chrysler is for the first time higher than that for the imports. J.D. Power’s sound bite: “This year may mark a key turning point for U.S. brands as they continue to fight the battle against lingering negative perceptions of their quality.”
Interesting choice of words. The battle to change perceptions is often fought with ads. What information might ads include to assist in this fight? (Read More…)
Cars are getting better and better. But wait! For the first time since 2007, the quality of new cars and trucks sold in the US slipped! OMG! Let’s hunt down the villains … (Quality of your brand after the jump.) (Read More…)
One has to be slightly off their rocker to make a LeMons racecar. But then again, you also have to possess self-awareness not seen in most other forms of motorsport. Simply put, this race series totally rocks. And without any further ado, here are the final five vehicles in TTAC’s Ten Coolest Engineering Feats of The 24 Hours of LeMons Dallas. (Read More…)
When Volkswagen CFO Hans Dieter Poetsch was asked to make some forward looking statements on April 29, he was reasonably confident that Veedub could improve sales and operating profit from the 2009 level, “but that’s it.” Now suddenly, Volkswagen throw caution to the wind and says that the company would “significantly” exceed last year’s results when 2010 is over, says Reuters. That assessment, made by a usually very cautious company, is bolstered by a forecast-beating performance in the first five months. (Read More…)
Where would market research companies be without their sugar daddies, the car companies? There is no consumer product that is more expensive than a car, and nowhere is the amount of research money spent by unit sale higher than in the car industry. Research for a new car can be as crude as a few pictures and a questionnaire, or it can be something that is appropriately called a “clinic study,” with customers as lab rats. (Read More…)
Toyota is getting out of the carmageddon-caused and recall-related funk and is moving forward with worldwide expansion plans. According to The Nikkei [sub], Toyota has resurrected all key projects planned before the financial crisis. (Read More…)
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