Rep Henry Waxman’s version of the Motor Vehicle Safety Act passed the House Subcommittee on Commerce, Trade and Consumer Protection today, and will go before the full Committee On Energy And Congress. The subcommittee markup [in PDF format here] includes a number of provisions that the industry and others had argued against, such as a $9 fee on each new vehicle sale, and mandatory event data recorders (EDRs) which would “continuously record vehicle operational data” and store all data from 60 seconds before, and 15 seconds after a crash. According to Automotive News [sub], Rep John Dingell is in negotiations with committee chairman Waxman to mitigate two key proposals: the removal of a cap on NHTSA fines, and the granting of so-called “imminent hazard” authority.
The San Francisco Chronicle is reporting that California Governor Arnold Schwarzenegger has said that Toyota will team up with Tesla to “build electric cars in California.” The governor made this shocking revelation at Google’s I/O Conference today, and told reporters [via the Sacramento Bee]
Today is a very exciting day for me because … I am also going over to the Bay Area to talk about Tesla and Toyota forming a partnership, where they take one of the Toyota cars and make them electric. And again, they’re going to do that here in California.
The obvious scenarios involve joint manufacturing at Toyota’s former GM joint-venture plant NUMMI in Fremont, CA, although there has been no confirmation of these or any other details yet. [UPDATE: According to insidebayarea.com, a Downey, CA city councilman
confirms that Tesla will build the Model S at NUMMI. The Downey City Council had planned to approve a lease deal for a Tesla factory site, but Tesla CEO Elon Musk called to announce that his firm would be setting up shop at NUMMI]
What is it about former (or ostensible) communist leaders and retro limousines? China’s Hu Jintao got a tip of the hat from us last October for stepping out in style at the country’s National Day celebrations in a retro-fabulous Hongqi HQE. Now, The Guardian reports that
President Dmitry Medvedev has decided to trade in his Mercedes and bring back the ZiL, in what appears to be the latest attempt by Russia’s nostalgic leadership to turn the country into a Soviet theme park. Medvedev has asked aides to examine whether the austere and enduringly sinister limousine can be brought back into production.
And why not? After all, what’s more authentically Russian than being ferried through Red Square in an “enduringly sinister” vehicle made by a company that was at one time known as “Stalin’s Factory”? Is it too soon to ask about American-market availability?
The auto enthusiast community is far too fragmented to ever achieve real consensus on any issue, but if there’s a single authority on performance-oriented cars, it’s Britain’s enthusiast bible evo Magazine. So when evo bashes an enthusiast-targeted model, it’s usually worth taking note of. The latest print issue of evo includes a Chris Harris review of Audi’s range-topping RS5 coupe [online summary here], the 444 hp, V8-powered flagship of its A5 lineup, and from line one the reader can tell that something is rotten in the state of Quattro GMBH. Harris describes an attempt to blow the doors off a 328 hp S4 camera car, only to find that, three gears later, his $15k more expensive coupe had barely gained any ground on the supercharged V6-powered S4. So, what gives? (Read More…)
Yesterday’s Senate Committee On Commerce, Science and Transportation hearing on the proposed Motor Vehicle Safety Act [full text of proposed Senate version S.3302 in PDF format here] was a surprisingly low-key affair. Discussion didn’t seem to move much beyond the battle lines drawn at House hearings two weeks ago. NHTSA Administrator David Strickland continued to argue passionately in favor of so-called “imminent hazard” powers, which are included in Henry Waxman’s House version of the bill, but not the Jay Rockefeller-sponsored Senate version. Meanwhile, debates over nearly every proposal in the legislation rage on, as the industry seeks to mitigate what it considers the bill’s most onerous and intrusive measures. But Strickland framed NHTSA’s mission in zero-tolerance terms: if one American dies on the road, he argued, NHTSA should be doing more to prevent it. This philosophy is underlined by the presence of hard-core safety advocates Joan Claybrook and Clarence Ditlow at nearly every DC hearing on auto safety since the Toyota recall. The flip side to this position is the argument that cars have literally never been safer, and that deaths per vehicle mile traveled are at all time lows. This yawning divide in perspectives towards automotive safety is begging for discussion, so let’s have it. Are cars safe enough? Which new regulations make sense, and which are more onerous than they’re worth? Where should the government define an acceptable number of roadway deaths? And are cars the problem, or are people?
Because this is a political topic, please make the extra effort to make your comment constructive. Complete prepared testimony from yesterday’s hearing can be found here.
Nearly a month after ditching Chevy’s longtime ad agency Campbell-Ewald in favor of Publicis, GM management is said to be eying another change in strategy for its most important brand, as new Marketing boss Joel Ewanick begins making his presence felt. Sources tell AdAge that Ewanick is considering moving creative responsibilities for the $600m Chevy account from Publicis to Omnicom Group’s Goodby, Silverstein & Partners, although GM has not yet confirmed any such move. Anonymous GM execs tell AdAge:
They told him he could have virtual carte blanche in decision-making, and he’s already exercising his power to do so. He’s surrounding himself with people he feels most comfortable with and trusts… He didn’t pick Publicis, he inherited it.
Focusing on Chevy, and not being afraid to shake things up are two very encouraging signs from Ewanick. Having inherited former Marketing boss Susan Docherty’s gestating campaign centered around the line “Excellence for Everyone” and some intensely unmemorable Publicis ads, Ewanick clearly needs to bring the thunder, and according to AdAge, all of GM’s agencies are in a tizzy over the shake-up. (Read More…)
It was just this guy that thought that this was how you got something to Toyota’s research and develop office
Sgt. K.S. Dickson of the Winfield (West Virginia) State Police detachment had wvgazette.com by way of explaining the recent bomb scares at four of Toyota’s US facilities. Apparently the suspicious packages were sent by a Nigerian inventor trying to sell his turn signal design to Toyota. After one package was “disrupted” by a police bomb squad, it was discovered that
There were no explosives in the box, just relay switches, wiring and film canisters, in addition to a letter from the Nigerian man claiming to be an engineer
On the strength of Coda Automotive’s plan to launch a $45,000 EV conversion of a Chinese Hafei sedan, our coverage of the EV startup (formed from the ashes of Miles Electric Vehicles) has pretty much been limited to the conclusion that it “make the Volt look good.” And as the competition has moved forward, the venture isn’t looking any better by comparison. With news that Nissan will be able to manufacture its Leaf batteries for the low, low price of under $400 per kWh (if all goes to plan, anyway) rocking the EV community, Coda’s proposition of asking $45,000 for a 33.8 kWh lithium-ion battery with a Chinese compact sedan attached to it has not aged well (conservatively assuming the Hafei costs $15k, that still breaks out to nearly $900 per battery kWh, as crude as the comparison may be). But don’t let a little common sense worry you about Coda’s future: according to a company press release [via PRNewswire] the firm just scored a cool $58m in an oversubscribed fundraising round that leaves it with over $125 in total investments.
When the music finally stopped at Old GM, the UAW’s VEBA fund was left holding a lot of IOUs. On those merits, the union’s benefit trust was given about 17.5 percent of the equity in the bailed-out and re-organized New GM. UAW leadership has always maintained that having its membership’s benefits staked on the company’s financial performance would not change its mission, and that VEBA’s representative on GM’s board, Steve Girsky, would operate free from union influence. And one hopes he would, considering he’s being paid well to advise CEO Ed Whitacre. But the tension between GM’s IPO sprint and the UAW’s non-VEBA interests never goes away, and the Wall Street Journal [sub] is reporting that the latest spat is over the old hobbyhorse of buyouts.
Context is everything. Because TTAC has never tried to operate as another entry in the press-car sweepstakes, our context for the industry tends to be based more on news from the business end of things than on a regular sampling of the latest vehicles to hit the market. This basic truth about our perspective goes […]
Workers in an Indiana post office were forced to evacuate their workplace yesterday, when the fourth “hoax bomb” targeting Toyota’s US facilities in the last week was discovered there. The AP [via Google] reports that the latest package was addressed to Toyota Motor Manufacturing Indiana in Princeton, IN and according to Toyota spokesfolks, it is
similar to other suspicious packages mailed to our corporate office in Erlanger, Kentucky, on Friday and our West Virginia and Texas plants on Monday. All of these packages were found to be non-threatening
All four packages bore handwritten originating addresses in Nigeria, and contained devices described in the latest instance as a cardboard tube containing electronic components. Auto industry PR guys, you have a new worst-case scenario…
About a half-hour after TTAC’s 15 Years of Compact Car Sales graph went up today, the normally enthusiast-oriented car blog Jalopnik gave the internet its own take on compact-car segment analysis with a post titled The Ford Fiesta Will Dominate The Small Car Segment. Some might question how this is supposed to jive with Jalopnik’s alleged commitment to “awesomeness,” but our concerns are far more prosaic. Examples: the absence of the Fiesta’s actual competitors like the Honda Fit, Nissan Versa and Toyota Yaris, and the absence of interior volume comparisons which would expose this “comparison” for the fraud it is. And that’s just for starters…
Speaking at a Brookings Institution summit on cities affected by the auto downturn, National Economic Council director Larry Summers said that taxpayers will likely see “most, if not all” of its $42b outstanding “investment” in GM returned when the automaker goes public. According to the Detroit Free Press:
Summers’ comments were backed up by an analyst estimate today that suggested the new GM’s equity could be worth between $75 billion and $78.5 billion – giving the government more than $42 billion for its 60.6% stake.
Obama Administration officials had previously said that taxpayers stand to lose as much as $34b on its bailout of the auto sector, including GM, Chrysler and their finance unit formerly known as GMAC (now called Ally Financial).
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