The Competitive Enterprise Institute, a public interest group dedicated to free enterprise and limited government, has filed a complaint with the Federal Trade Commission, alleging that a recent advertisement from GM claiming to have “paid back government loans in full” is deceptive [full complaint in PDF here]. You might be able to guess why the CEI finds the GM ad so misleading, but if not, their explanation is after the jump.
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Posts By: Edward Niedermeyer
Imagine you’re an automaker which enjoys an unprecedented drivetrain technology advantage over all other manufacturers. Imagine you build a brand around that drivetrain that becomes a cultural touchstone, a symbol of your firm’s technical prowess and commitment to the environment. What do you do next? The obvious answer is to build a luxury version to help make the extra profits needed to pay for the drivetrain’s development, right? Well, Toyota did just that, piggybacking the Lexus HS250h on its strong Lexus brand and Prius technology. The only problem? It’s not working.
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Three-wheeled cars offer unique advantages in aerodynamic design and build costs, but they also work from a fundamental disadvantage in terms of handling. Put simply, three wheels can not possibly generate the same levels of mechanical grip as a four-wheel design. EV startup Aptera, which recently unveiled its “design intent” 2e EV, found out just how hard it can be to make a three-wheeled design operate to mainstream standards during shakedowns for the Automotive X-Prize in which it is competing.
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Automotive News [sub] reports that Volkswagen has approved a plug-in electric version of its Golf hatchback for sale in the US by 2013. According to AN [sub]:
Called the Golf Blue-E-Motion, the car forms part of a broad-based electric-vehicle offensive by VW that will see similar versions of the Mexico-built Jetta and the Chinese-market Lavida also going on sale in 2013.
Powered by a 115-hp electric motor, the front-drive Golf will be VW’s higher-end EV, fitting above the Up! Blue-E-Motion subcompact “city specialist.”
Worried that a ride-over-handling-oriented California, the end of manual transmissions and flirtations with hybrid power have left Ferrari without any kind of brand focus? Don’t be, Maranello spokesfolks tell Autocar. There is at least one line that Ferrari will never cross: building a four-door to compete with Aston-Martin’s Rapide, Porsche’s Panamera or Audi’s A7.
As Enzo [Ferrari, company founder] would say, we will never do four doors. And we will keep this tradition. Frankly speaking no-one is asking for a four-door Ferrari. If you want a four door Ferrari we have a Maserati. We stand 60 years and we never needed four doors. What never means, I don’t know, but one of the strong points of Ferrari is to keep the product in the right way. I’m not saying four doors is not right for the image, but it’s not part of our heritage.
Unless you’re the Sultan of Brunei, anyway.
The Denver Business Journal reports that the Colorado Senate has approved fines of $10,000-$25,000 per day for any automaker that does not comply with its law (HB-1049) requiring reinstatement or compensation of culled dealers. That law was passed earlier this year, drawing a $60,000 vote-no lobbying effort from GM. It also gives culled dealers the right of first refusal for new franchises opened within five miles of their shut dealership within five years, and states that if a franchise has been re-awarded, the culled dealer can demand the return of his franchise. According to the DBJ:
Three terminated Chrysler dealers requested their re-awarded franchises back after the law was signed and said they were told by the company that it had no intentions of complying with it. Chrysler then filed a federal lawsuit on April 23 against Colorado, claiming the new law contradicted terms laid out in Chrysler’s bankruptcy agreement and violates the contract clauses in the state and federal constitutions.
We love us some data here at TTAC, and since we’re already looking at a grip of sales data today, we thought we’d add this excellent infographic that appeared in Sunday’s New York Times to the mix. It depicts America’s per-capita miles driven on the x-axis, and the price of gasoline on the y-axis, and shows that the two aren’t as inextricably linked as some might have thought. As we try to make sense of monthly sales data and look for “the new normal,” this kind of data provides a crucial context for month-by-month trends. We hope you find it as enjoyable and illuminating as we did.
The Volkswagen brand grew sales across all nameplates other than the Chrysler-rebadge Routan minivan, en route to a 42 percent overall volume increase. Audi maintained its momentum, with a 33 percent improvement over its 2009 sales, on strong sales from the A5 and Q5. The new E-Class drove the Mercedes brand to a 21 percent improvement, although Smart was down nearly 50 percent to 680 units. Despite 50+ percent drops in 5- and 6-Series volume, BMW managed to hang onto a nine percent volume increase, including a five percent improvement by the MINI brand. Ze Germans may be focused on China in the long term, but for now they’re back to methodically growing their US-market business.
Chrysler saw its sales increase 25 percent last month, for its best year-over-year performance in “almost five years,” according to the company. On the other hand, sales improved only 3 percent compared to last March’s results and only barely met Chrysler’s 95k minimum sales goal (at 95,703 units). Still, this is the best sales news the company has had since well before emerging from bankruptcy. For those who think Chrysler has a shot at survival, this is the first evidence in a long time that actually supports their optimism.
The ironic rap video… yeah, there’s something the potential minivan driver will find hip and edgy.
Hyundai and Kia kept up their winning ways last month, combining for a 24 percent sales increase. Most of the increase comes courtesy of the Hyundai brand, which rose 30 percent on strong sales of the new Tucson and Sonata (up 271 and 57 percent respectively) and Santa Fe (+59 percent). Kia’s volume was largely boosted by its new Sorento SUV, which sold 8,486 units, and a strong rise in Soul sales volume. Forte sold 5,807 units, but didn’t outperform last April’s 7,165 sales of its predecessor, the Spectra. Full numbers after the jump.
For yet another month, GM’s sales [full April sales report in XLS format here, press release here] managed to be both promising and disappointing, depending on how you cut them. GM’s “core brands” were up 20 percent cumulatively, with Cadillac and Buick leading the way with 35.7 percent and 36.4 percent increases respectively (Chevy up 17.4 percent, GMC up 18.4 percent). And though GM is especially eager to boost sales numbers at its two premium brands, thanks to their low baseline sales, the solid percentage gains resulted in surprisingly small volume improvements. The General’s overall volume was up only 6.5 percent compared to April 2009, a month when the just-canceled Pontiac outsold both Buick and Caddy.
GM’s restructuring of its Opel division has long been seen as one of the greatest threats to The General’s US taxpayer-supplied cash pile, and the bleeding has now officially started. Reuters reports that GM has agreed to pay four hundred million Euros ($532,000) for worker termination benefits as it closes operations at its Opel plant in Antwerp, Belgium. The 2,600 employees who once built Opel Astras at the factory will be out of work by the end of the year, with about 1,250 planned to be terminated by June. The Flemish government has until September to find a new investor for the plant location; if it is successful, and the new tenant rehires the former Opel workers, GM could be off the hook for some of their termination costs. Considering that Europe has some of the worst auto overcapacity around though, the odds of another automaker taking over the plant don’t look good. Which means the fate of Opel’s Flemish workers, and the health of GM’s cash pile are likely in the hands of a non-auto industry investor. Meanwhile, with Opel planning on cutting 20 percent of its European capacity, the bleeding is only just beginning. But hey, is there a better use for American tax dollars than paying off European workers to the tune of $205k per job?
The AP [via Google] reports that NHTSA’s investigation of the pedals manufactured by CTS that were behind Toyota’s recent unintended acceleration recall has widened to include 2007 model-year Dodge Calibers. Dodge built 161,000 Calibers in the 2007 model-year, but according to Chrysler Group complaints of sticking accelerators only cover about 10,000 vehicles built between March and April of 2006… even though all 2007 model-year vehicles were built with CTS pedals. So what’s the difference between vehicles made in that five-week period and the rest of the 2007 model-year? According to Chrysler spokesfolks:
We have data that is telling us that there were a certain amount of complaints during that time period
Chevrolet has had a difficult time deciding if its Cruze-based MPV, known as the Orlando, is a good fit for the US-market. Initially, Chevy debuted the Orlando concept at the Paris auto show, and said it had no plans for a US-market version. Then it was approved for the US ahead of the 2009 Detroit Auto Show, and now, according to Automotive News [sub], it’s off again. The (up to) seven-passenger MPV, built on GM’s “Delta II” compact architecture will be sold in Europe, Asia, and even Canada… just not in the US. Chevy spokesfolks explain:
The best thing to do for Chevrolet is to focus on the brands we’ve already brought to market: the Traverse, Equinox, Malibu and, soon to come, the Cruze. We feel that with those vehicles, Chevrolet has plenty of options for the modern family.
Of course, Chevy sells all three of those vehicles in Canada as well… so how are these three options “plenty” for US consumers, but not for our friendly neighbors to the North?
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