They’re still going to be saying they drive a Dodge Ram. We’re just going to be marketing it as a Ram without ‘Dodge’ in front. Once you explain to the consumer what you’re doing and why, they get it
Or not. Whatever. Ram trucks will continue to have Dodge VINs and will carry references to Dodge “somewhere” Diaz tells Automotive News [sub]. But don’t worry. According to Diaz, the Chrysler Group is “devising a plan that will give compelling missions for each brand.” You know, just in case things are still a little confusing.
The gist of Sweet Pete DeLorenzo’s argument is that Chrysler has to do something to remind Americans that they still exist. Given the Chrysler’s inability thus far to articulate a vision for the Dodge brand post-Ram, this makes a certain amount of sense. With a new, well-respected ad agency, Dodge could use the Super Bowl’s giant stage to get back on the buying public’s radar. The problem with the plan lies in the one question that DeLorenzo fails to answer: why bring buyers into Dodge showrooms if there’s nothing there? (Read More…)
An interview with Forbes the boss of the Korean Development Bank, which GM-Daewoo still owes several billion dollars, reveals that GM’s South Korean unit had a debt-to-equity ratio of 912 percent as recently as last June. GM “rescued” its crucial small-car development center by buying up all $413m of GM-Daewoo’s recent share offering, keeping the the KDB from imposing its will on the automaker. That was enough to keep the wolf from Daewoo’s door in the short term, but if Daewoo is ever going to develop a new generation of GM small cars and global products, it will have to address its $2b KDB debt and raise additional funds. For now though, GM-Daewoo is just hoping to keep a little momentum going.
Toyota’s head start on hybrid technology is easily the most significant advantage any one automaker holds over any other. It’s next closest competitor in hybrid offerings is Honda which is facing serious challenges as its Prius competitor, the Insight, is off to an incrediblyweakstart. To capitalize on this advantage, Toyota plans to up annual production of its hybrids to one million units by 2011. Despite reports that Toyota is refocusing on hydrogen fuel cell vehicles as a long-term option, Yoshihiko Tabei, chief analyst at Kazaka Securities believes:
For the foreseeable future, the focus of Toyota’s (low-emission car) strategy will be on hybrids, not electric or fuel-cell cars. Except for Honda, Toyota is facing little competition in hybrids and is set to put distance between itself and other automakers
Subtitle two: we don’t believe a word of it. The report comes from an exclusive interview of GM Chairman/CEO Ed Whitacre at the Volt fanboy site gm-volt.com. GM-volt’s Lyle Dennis asked Whitacre if GM would lose money on every Volt it sells, a fact that GM executives have never triedto substantively deny. Until now. Whitacre’s answer:
“We’re not in business to lose money,” he said. “We did enough of that already.”
The Volt “is going to sell in the low 30s,” said Whitacre. “We’ll get a margin on that.”
Oh really? Because it sure seems that GM plans on selling the Volt for $39,500-$45,500, and that the “low 30s” number is dependent on a tax credit. As for Whitacre’s claim that the Volt will make profit, the lack of time-constraints on his prediction is all you need to know. With enough sales and over enough time, almost anything will create profit, especially if the government is distorting the battery market for you. Meanwhile, GM still has to overcome $40k sticker shock (sorry, but you can’t exactly advertise post-tax break prices) and at least a few years of loss on the Volt. But if the gm-volt comments section proves anything, it’s that you can never go wrong misleading the fanboys.
It’s been a widely-shared opinion among TTAC’s writers for some time that GM should have used its bailout and bankruptcy to cuts its brand portfolio to Chevrolet and Cadillac. We’ve already sussed out the negative side effects of trying to hold onto the Buick-GMC dealer net, the biggest of which is that without Pontiac, Buick is being forced into volume-chasing. With the debut of the Granite “Urban Utility Concept,” we’re seeing the same brand-diluting volume-hunting taking place at the “Professional Grade” brand. GM’s attempt to bring more youth and volume to its GMC brand is starting with a Youtube-heavy, family-oriented marketing campaign, pointing the way for the brand to betray its “Professional Grade” raison d’etre. But GM’s marketing plan for the Gamma (Aveo)-based Granite will be the final nail in the brand’s coffin. Because to save the brand, GM must destroy the brand.
With a brand new BMW 3 Series in development, BMW has updated the current-generation coupe and convertible. Or has it? Say what you want about the Bangle era, in those days a mid-cycle refresh was a mid-cycle refresh.
Even with a government-mandated arbitration process in place, the battle between Chrysler and its 789 culled dealers is a low-down, dirty dogfight. Last week, Chrysler sent out letters to all of its rejected dealers, in its attempt to comply with the arbitration law’s disclosure requirements. But, dealers tell Automotive News [sub], those letters are justifications, but not explanations. Absent concrete evidence for why their franchises were closed (something GM has provided to its culled dealers), lawyers for some 65 rejected dealers are fighting back.
Tata Motors already has made a European version of the four-seat car that will cost about $8,000 when it debuts in 2011, and a Tata Technologies official said privately that the U.S. version is expected to have a comparable price. The official did not want to be identified because the price has not been made public.
A one liter, three cylinder engine making a reported 60 hp. Five speed manual transmission. Two airbags, ABS, traction control, and electric power steering. 14 inch wheels. [via Autocar] Would you bite for $8k? Everything sells at the right price. Where is the Nano’s magic number?
A large part of TTAC’s mission is pulling aside the curtain on the industry, exposing the humans behind the cars that make up our everyday lives. Automobiles have always reflected something of the individuals and cultures that created them, so it’s fascinating to see the different personalities that go into running the world’s automakers. Still, as paid executives, their performances are usually polished to a high sheen; the folks behind you favorite car blogs on the other hand, not so much. The interplay between the two is often as revealing as it is entertaining. Can’t get enough? The complete session is available at joelfeder.com.
A lot of what you hear about Steve Girsky sounds decidedly positive: an outspoken critic of GM, Girsky lasted less than a year as Rick Wagoner’s “roving aide-de-camp,” reportedly due to frustration with management heel-dragging. He even earned TTAC’s “lesser-of-two-evils” endorsement to be Presidential Car Czar over Steve “Chooch” Rattner. When he was appointed to be the UAW rep on GM’s board, representing the union’s VEBA trust which owns 17.5 percent of GM’s stock, he was lauded as someone who could keep his union allegiances at bay. But as special advisor to GM CEO/Chairman Ed Whitacre, Girsky had better be prioritizing GM’s best interests. Reuters reports that he’s being paid a cool $900k in stock grants for his advice. That’s in addition to $200k director’s salary and reimbursement for “living expenses and travel to and from Detroit.” Not bad considering the fuss people are making over compensation at TARP-recipient financial institutions.
Sort of. At least she might have if my esteemed fellow bloggers had let her get a word in edgewise. No wonder GM seems to have such a low opinion of the “well informed.”
Anyway, the clip’s money quote comes at 1:47, when Docherty lets out the classic Freudian slip: “the last competitive product I spent a couple of weeks in was the Acura TSX.” Whoops!
“Scion is pretty much a North American brand, so that is why it is very natural to think more development, more design work, should be done in North America,” Yoshi Inaba, president of Toyota Motor North America tells Automotive News [sub]. In other words, fans of Scion’s first generation of JDM confections who railed against second-gen bloat are probably out of luck. Sure, model four in the Scion lineup will be the iQ minicar, which is small and weird enough to have been a member of the Scion invasion team, but after that? It’s all bloat and bigger blind spots from here on out. It’s what America wants.
The TARP bailout of GM finance partner GMAC is being criticized by a congressional oversight panel [full report in PDF format here], reports the Detroit Free Press. The panel alleges that the Treasury
has not yet articulated a specific and convincing reason to support the company… It has never stated that a GMAC failure would result in substantial negative consequences for the national economy. If Treasury has made such a determination, then it should say so publicly.
Mercedes sold only 2,825 R Class “Grand Sport Tourer” models in the US last year, confirming once and for all that the eigenwillig CUV is a bonafide flop in this country. So much so that a GL-inspired restyling is already under development, possibly with a GL-inspired name as well: GLR.
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