GM’s government-installed Chairman/CEO Ed Whitacre hasn’t been wildly popular with Detroit insiders, earning dismissive raspberries from more than a few corners of the industry’s peanut gallery. But now that his reign of executive terror is over, Detroit seems to be learning how to stop worrying and love the former AT&T man. As Whitacre prepares for his first visit to Washington DC as head of GM, the local media and other members of “Team Detroit” are making their peace with Whitacre. So what lies beneath the new united front?
According to Reuters, The Nikkei is reporting that Toyota has approved a “competitively priced Prius hybrid minivan” for production in 2011. The new model will be the first Prius-branded vehicle in a long-rumored campaign by Toyota to stretch the nameplate to new models (future additions to the Prius line could include a compact model, based on the FT-CH concept). Depending on the timing of its release relative to the forthcoming plug-in Prius, it could also be the first lithium-ion battery-powered Toyota hybrid. Toyota will initially produce the new batteries in-house, before migrating production to a plant run by its joint venture with Panasonic. Toyota has not yet given details about pricing, performance, or even which markets this new minivan will initially be rolled out to.
On point as always, TTAC commenter ajla called it in today’s Camry review. In the comments after that tale of suburban anonymity and “the Marriot of cars,” he asked:
Wouldn’t you really rather have a Buick?
I figure Toyota thinks that, in their heart of hearts, many Americans do still want a Buick. Not an actual Buick, mind you, but a big, comfortable sedan that’s somewhat luxurious but not at all flashy. Over a year ago, I made the friendly recommendation that Buick ditch its explicitly youthful marketing message for “something along the lines of Canadian Club’s “damn right your dad drank it,” campaign.” This spot for the new Avalon probably comes closer to what I had in mind for Buick than anything I’ve seen since. The question then, isn’t so much “is Toyota the new Buick?” as where is Buick going to find its own niche? The wreckage of Acura?
The latest Cruze-hyping video from GM shows the forthcoming compact ripping through a test track, as Vehicle Line Director Chuck Russell waxes eloquent about its engineering and reliability. His point is clear: this new Cruze is a truly global product, in contrast to the America-only Cavalier update that was the Cobalt it replaces. And comparing footage of the Cruze ripping through a slalom to that of a Civic negotiating the same obstacles, one is left with the impression that Russell isn’t just blowing smoke. But then, we knew that already. In his review of the European-spec Cruze, TTAC’s Martin Schwoerer notes:
In contrast to the engine, the Cruze’s ride and handling are perfectly acceptable in the grand scheme of things.
It’s a curious coincidence of history that the most anti-American parts of the globe are so dependent on old American cars. Havana is the classic example of this, and its still-rolling examples of classic American cars have become photographic icons, simultaneously representing both the failures of the communist government and the excesses of the preceding (but long-gone) American-backed regime. Another example of history written in the automotive landscape comes to us today from The BBC, which hosts a slideshow of cars from the Gaza Strip.
Chrysler has always held a special place in TTAC’s chronicling of Detroit’s decline, enjoying a bespoke “Suicide Watch” in contrast to our Ford and GM “Deathwatches.” In the first entry in that series Frank Williams wrote of a gutted firm, dependent on incentives and flagging truck sales, seemingly doomed to drag its foreign partner into bankruptcy. Four years and countless opportunities for death with (some) dignity later, Chrysler presents much the same picture. Sure, it’s been rinsed of debts and excess capacity in bankruptcy court, but the Pentastar’s brands are still fundamentally damaged from years of self-abuse and the firm is struggling (and failing) to improve on last year’s sales numbers, which were recorded en route to said bankruptcy. Inventory may be under control, but Frank’s four-year-old assessment of an investor warning by JP Morgan could have been written yesterday [with “DCX” replaced by “Fiat”]:
JP Morgan remains convinced that management patience towards Chrysler has “worn thin and increases the likelihood that DCX will reduce exposure to Chrysler.” It’s the investment community’s equivalent of yelling “jump!” to someone standing on a ledge.
In fact, analysts from London’s Bernstein Research wrote nearly the exact same line yesterday. Chrysler has officially shuffled back onto the ledge, and once again the analysts are shouting “Jump!”
Are there two sadder words in the world of car design than “design intent”? Translated, the term actually means “the inevitable letdown after months (or years) of hype based on a buffed-and-polished prototype.” And for upstart California EV outfit Aptera, a slick, otherworldly prototype was a key to being taken even remotely seriously. Unfortunately, yesterday’s unveiling of the “design intent” Aptera 2e revealed a cheaper, droopier version of the vehicle Aptera had been collecting deposits on the strength of. Don’t believe us? Check out a gallery of prototypes after the jump, and compare for yourself. Besides, the vehicle wasn’t the only ugly part of Aptera’s presentation…
We’re right on the verge of having 12 million in vehicle sales
UAW boss Ron Gettelfinger waxes optimistic in a recent speech at Wayne State University [via The Freep]. “Not so fast,” says Automotive News [sub]’s delightfully cranky senior editor, John K. Teahen Jr., in a piece appropriately titled 12 million sales this year? Don’t hold your breath.
It’s a line of attack that Ford has been careful to avoid in the US, but Ford Europe is lashing out at GM’s request that European governments help finance the restructuring of its Opel division. Businessweek reports that Ford of Europe’s vice president of government affairs Wolfgang Schneider laid into GM’s request for $2b, saying:
Restructuring your business is your own job and you should pay for it yourself and you should not use taxpayer money. We are definitely against any support for Opel. The Europeans have made the choice that they would use their tax money to sustain companies and business and to sustain capacity levels that from an economical point of view are not sustainable. We do not believe that governments will be able to continue that policy forever. Governments run out of money, as well.
Smackdown! Now, why hasn’t Mulally been saying the same thing for the last two years?
After much back-and-forth, it seems that the Camaro convertible is a sure thing after all, as this picture has surfaced at the Camaro’s Facebook page. Would you friend it?
University of Tokyo professor, author, and Toyota Production System expert Takahiro Fujimoto sits down with Wharton Business School professor John Paul MacDuffie to analyze Toyota’s staggering fall from grace [via Strada Blog]. Fujimoto largely skates over the “fat product” phenomenon, but acknowledges that high quality and increasing complexity led to debilitating arrogance at Toyota. As he says, Hyundai has been growing just as quickly (if not more so) in recent years, and yet has managed to avoid Toyota-esque quality scandals. The problem, he says, isn’t on the production side. Design quality problems stemming from arrogant middle-management at company headquarters, he says, are the fundamental deviations from the Toyota Way.
With weeks of recall coverage and with Lexus’s GX460 snagging a rare Consumer Reports “do not buy” warning, you’d think that at least one of CR’s recent “worst-made cars on the road” [via Forbes] would be made by Toyota. But you’d be wrong. Dodge Nitro, Jeep Wrangler, and Ford F-250 join four GM products (Cadillac Escalade, Chevy Aveo, Chevy Colorado and GMC Canyon) as the seven worst cars CR could come up with. And though this hometown sweep for Detroit goes a long way from separating facts from fiction, it’s nowhere near as instructive as the responses from each of the Detroit automakers to the charge of making crap vehicles. Let’s take a look, shall we? (Read More…)
According to the latest Rasmussen telephone polling [via The Financial], 48 percent of Americans believe that the government’s ownership stake in GM and Chrysler means it has a conflict of interest in regulating competing automakers. 25 percent disagree, saying that the government’s bailout doesn’t affect regulation, and another 26 percent aren’t sure. When it comes to recent criticism of Toyota by administration officials like Transportation Secretary Ray LaHood, only 25 percent believe the criticism stems from a desire to help GM, while 38 percent disagree and 37 percent aren’t sure. But the polls most interesting results have nothing to do with politics, and everything to do with perception:
Despite Toyota’s major safety recalls, owners of its cars are still more loyal than those who drive cars made by the bailed-out GM. Sixty-four percent (64%) of Americans who currently own a Toyota say they are at least somewhat likely to buy their next car from the troubled automaker, compared to 57% of GM drivers who say they are at least somewhat likely to buy their next car from GM.
HUMMER fans have a new champion in Illinois Senator Roland Burris, who has agreed to investigate GM’s shutdown of the SUV brand according to Hummerguy.net. Attempts to keep the HUMMER brand alive are being fielded by Capital & Labor International Coalition, a recently-founded fund management firm created by Thane Ritchie, founder of Ritchie Capital Management, as well as failed HUMMER bidder Raser Technologies and The Electric Motor Corporation. According to Hummerguy,
CLIC is hoping for an “acquisition by coalition,” which would involve cooperation with private capital and U.A.W. resources. Union representatives from both HUMMER production facilities were on hand to hear the plan and are running the idea up the chain of command to the International U.A.W..
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