Remember that old saying, “What’s good for GM is good for America”? Well it seems that the UK is developing a similar ethos. “What’s good for Ford is good for the UK”. Now, this isn’t some arrogant Ford executive trying to brainwash the UK public that buying their cars is their public duty. There really is a good reason behind this. Honestly. (Read More…)

Close your eyes and think of China. I bet many of you still see seas of people with straw hats riding bicycles. J.P. Morgan and J.D. Power see a sea of luxury cars. Millions of them. (Read More…)

Ray LaHood is great, isn’t he? When that big nasty corporation, Toyota, was building those awful machines that were murdering people and their children in their sleep in the middle of the night, he urged everyone to “stop driving your Toyotas” (Ford also had a problem with unintended acceleration, but LaHood couldn’t go after them with the same vigor as he was busy dealing holding “Toyota’s feet to the fire” at the time). His useful piece of advice led to a calm and controlled recall and gave people the courage to come forward and give their horror stories of how their Toyotas went all “HAL” on them. Then came allegations that Ray and the NHTSA were suppressing a report that confirmed it wasn’t the cars but driver error. Well, Ray knew he was being stabbed in the back but you can’t keep a good man quiet for long… (Read More…)

Progress! It took all the way to the second guess to reveal the identity of the Mitsubishi van. Congratulations yoribe1. Well, it can’t get much worse than that. And I give a pretty distinctive item to look at. Let’s see what happens.

To hype its forthcoming Leaf electric car, Nissan has reached for the most manipulative imagery in the green marketing playbook: the Polar Bear. They’re cute, they’re cuddly, and because their icy habitat is being destroyed by regular cars, they will hug you if you buy an EV. Meanwhile, the causes, trajectory, and impacts of global climate change (not to mention its possible solutions) remain extremely abstract and far-away when compared to the political and economic ramifications of global oil undersupply. Too bad market failures and geopolitical instability aren’t as emotionally manipulative as those fuzzy bear guys…

I don’t normally do the “consumer awareness” stuff here on TTAC — we have plenty of very competent contributors for that — but I thought I would share a recent experience with all of you and perhaps save one or two of you a few bucks in doing so.

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Digging through the finances of a company as large as GM is never an easy task, especially when the balance book in question was recently wiped clean in a bailout-bankruptcy. Luckily, Bloomberg columnist Jonathan Weil has the chops to do the task justice, and he’s come up with a fascinating insight: through the power of an accounting tool known as “Goodwill,” Weil claims that GM has juiced its assets and liabilities during its “fresh start.” He notes with TTACian zeal:

It’s as if a $30.2 billion asset suddenly materialized out of thin air. In the upside-down world that is GM’s balance sheet, that’s exactly what happened.

The short version: GM undervalued some assets and overvalued some liabilities during its “fresh start.” The scary result: improvement in GM’s performance and creditworthiness could actually lead to writedowns on its Goodwill… which is currently The General’s largest non-current asset. Oh yes, and without that $30.2b in Goodwill, GM would have about an equity value of -$6.3b. Welcome to the new General Motors…
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Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report

The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.

Barclays analyst Brian Johnson explains

This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t

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The never-ending tension between the desire to give consumers more choices of in-car gizmos and the need to halt the advance of distracted driving took another confused twist this week, as Onstar announced that it is testing new features that could allow drivers to listen to text messages and update their Facebook status from behind the wheel. According to the DetN, the technology would read incoming text messages or a Facebook news feed to the driver, and could even allow the driver to update their own Facebook status verbally. Needless to say, GM and Onstar are hyping the updates as ways to keep up with Ford’s SYNC on the entertainment front, and because the features are all hands-free, they’re safe… right?
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The best time to get concessions out of a company is before their IPO. It’s “how much for it to go away” time. The German metalworkers union must have had a crash course in pre-IPO maneuvering. The nagging Opel question was in the way of a successful offering. What GM needs is a solid restructuring plan for Opel. For that, they need the metalworkers. The metalworkers got themselves a deal. (Read More…)

Here’s a cheery study on the effects of Peak Oil, which is widely considered to be happening…right about now (throw in a few more hours/months/years depending on how big of an optimist/denialist  you are). Der Spiegel got their hands on a confidential study commissioned by the German military, which has not yet been sanitized approved for publication. It’s a bit explosive…might get the civilian population riled up and all. It warns of shifts in the global balance of power, the decline of importance of western nations (oil importers), as well as “the total collapse of the markets” and…gulp…even worse. Let’s go talk about 1970 Boss 302 Mustangs. (Read More…)

Remember when Hyundai was famous for cheap, tiny hatchbacks instead of sculpted, Lexus-alike sedans? Though Hyundai’s first hybrid will be based on its popular Sonata, its first-ever EV is based on its old-school i10 hatchback. The AP reports that the BlueOn (remember, blue is the new green) will be delivered to Korean government fleets this year, with sales to the public starting in 2012. Hyundai hasn’t disclosed whether the BlueOn’s pricetag will be as old-school Hyundai as the i10, but with only 87 miles of EV range and 80 MPH from 16.4 kWh of Lithium-polymer batteries, it looks like low-cost city transport is the name of the game. But with a planned production volume of 2,500 units per year, the BlueOn shows how far Hyundai still has to come before catching up with the Nissans and Mitsubishis of the EV world. Then again, Hyundai’s come from behind before…

In the interests of truth, we feel compelled to point out that this is not, in fact, the 2011 Jaguar XJ. But considering the damn thing had hardly changed in 35 years, it’s easy to understand why the Detroit News thought it could get away with just slinging up a photo of the previous year’s model. And though that may have worked for the better part of the last four decades, now that Jag has a truly new XJ, it’s just cruel. Or sloppy. Either way, it’s plenty ironic.

More and more cities are thinking about installing light rail on city streets as the federal government holds out the prospect of greater subsidies diverted from gasoline tax funds. The California Court of Appeal on August 30 ruled that a lower court erred in throwing out a lawsuit against the city of Los Angeles for negligence in a fatal accident involving a metro Blue Line train. The incident reveals the significant threat high-speed rail can pose when run on streets designed for automobiles.

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