The Detroit News reports that the UAW has put its infamous Black Lake retreat on the market, as the “symbol of the union’s success” has become a financial liability. The money-losing retreat and golf resort became a symbol of UAW profligacy during last year’s lead-up to the auto industry bailout. Even within the union, the club had become seen as a white elephant, sucking down an estimated $23m over the last five years, while being kept alive on interest from the union’s strike fund. All during a period in which UAW membership has declined and the union has been forced into concessions. With the UAW’s financial solvency dependent on GM and Chrysler IPOs, perks like Black Lake had to go. The UAW has not yet publicized an asking price.
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Posts By: Edward Niedermeyer
When we first saw the slide pictured above at Chrysler’s five-year plan, we jumped on it as the only seemingly positive bit of news coming out of that deeply depressing 7-hour presentation. We should have known better. Today Chrysler is reminding us why it always pays to be cynical about everything that comes out of the mouths and powerpoint slides of our friends in the industry: buying into the hype always makes you look like an idiot down the road. Jeep CEO Michael Manley brings the inevitable letdown to the Toledo Blade.
We have no plans at the moment for diesel Jeeps in North America, although one of the things I’ve learned in this business is to never say never. I wouldn’t rule it out, but specifically on Nov. 4, we were commenting on diesel in Europe.
But hey, there will be more special edition Wranglers!
Battery firm Ener1/EnerDel, which recently brought the EV firm Th!ink back from bankruptcy, has lost the battery contract for Fisker’s Karma luxury EV. According to Schaeffersresearch, Ener1 “decided it would be better pursuing higher-volume battery supply deals when larger automakers begin rolling out their versions of electric cars.” Says Ener1 CEO Charles Gassenheimer, “we have some capacity constraints on our side. We’re interested in high volume programs in the future.” The public story is that due to Ener1’s Th!nk tie-up, Fisker’s October sales roll-out was too much, too soon. The real story illustrates the complicated relationships emerging between EV firms and battery suppliers.
My commitment is to the American taxpayer. My commitment is to recover every single dime the American people are owed… We want our money back and we’re going to get it.
Without even getting into the politics of President Obama’s proposed “financial crisis responsibility fee,” it’s easy to see that the initiative holds a wealth of implications for America’s TARP-recipient automakers. In Obama’s new rhetoric, taking TARP money put businesses in a new category of special obligation to the taxpayers. Though the fee is targeted at financial institutions, the principle applies just as much to Detroit.
Just in time for Truck Thursday at TTAC comes this hot bit of scuttlebut from Jalopnik: Hyundai might be developing a “highly-capable off-roader.” El Jalop cornered Hyundai USA boss John Krafcik at the Detroit Auto Show and asked him what his development boffins were up to. Krafcik’s cryptic answer is the seed of today’s WAROTD:
“every time our designers get together and start looking at concepts and the future, the first thing that comes out of those meetings — what everyone gets excited about — is the prospect of a Bronco-like, highly-capable off-roader.” As a follow-up on that answer, I asked if he meant a Wrangler-fighter. He answered only by smiling and repeating himself — “highly-capable.”
More capable than a Tucson? Seriously though, it will be a dogs age before Chrysler has the cash to update its bloated JK-generation Wrangler, and Hyundai’s going in for the kill. Or not… Krafic words his answer pretty cagily. Besides, Hyundai hasn’t had an even semi-serious off-roader since it rebadged the Mitsu Pajero to create the Hyundai Galloper (above).
According to our data, the full-size pickup segment declined by 29.4 percent last year. Of all full-sized pickups, the Chevy Silverado lost the most volume, dropping 32 percent and an eye-popping 148,521 units compared to 2008. GMC Sierra dropped 33.6 percent, or about 56k units. Overall, GM shed half a million pickup sales last year, as its total truck sales fell to 1.2 million. When you’re losing that kind of volume in a shrinking segment, you know it’s time for a hold-em-or-fold-em moment. According to the Detroit News, GM is doubling down on its full-sized truck ambitions, allocating “several hundred million” of your tax dollars towards a re-working of the GMT 900-based trucks.
About a year ago, Nissan’s response to nose-diving truck sales betrayed some serious ambivalence about chasing the profitable-yet-dangerous segment. Its first plan was to rebadge the new Ram, but that deal has fallen apart in the wake of Chrysler’s shotgun wedding to Fiat. At a loss for options, Nissan canceled the Quest, QX56 and Armada and started tooling up its Canton plant to produce commercial vehicles. It looked like Nissan’s days in the truck market were over. Now, USA Today reports that Nissan is developing a new full-sized pickup (and SUV) after all. By itself. Who’d have thunk it?
Pickuptrucks.com‘s Mike Levine snapped this shot of Honda’s NAIAS booth, indicating that the Motor Company might not be quite as proud of its unibody truck as it once was. Ridgeline sold 16,464 units last year, less than half of its 2008 volume. Honda’s Alabama plant, where the Ridgeline is assembled alongside the Pilot, saw its output drop 35 percent in 2009. Having tried the unibody option that so many formerly truck-dependent firms now see as an alternative to body-on-frame offerings, it seems doubtful that Honda would recommend it to any of them. When it comes to the truck market, there are no easy answers.
GM’s Australian Holden division has been developing the kind of big-bore RWD vehicles we tend to think of as being quintessentially American for quite some time. But every time GM hints at repatriating one of these old-school machines to its spiritual homeland in the states, something goes terribly wrong. One classic example of this disfunction was the offshoot of GM’s last effort to bring Holdens stateside as the Pontiac G8, the G8 Sport Truck, a rebadge of Holden’s Ute. The travails of the G8 have been well documented, but the Sport Truck was killed before it even had the chance to lose GM money and be cut along with the Pontiac brand. Now, just as the memory of that savage tease was fading, GM’s Mark Reuss reveals that the El Camino could be back after all.
Normally TTAC shies away from going too crazy with daily themes, but today we’ve got such a backlog of truck-related news and analysis we’re going to go ahead and dub today Truck Thursday. After all, few automakers have invested much in trucks and SUVs since gas prices began rising in 2008, and now the segment stands at a crossroads. Firms like Toyota, which invested too much too late in the truck and SUV market have to figure out how to manage its overcapacity. Firms like GM and Chrysler, which got bad reps for becoming overdependent on trucks and utes are faced with the challenge of keeping much-needed profits flowing while weaning themselves off their body-on-frame addictions. New challengers like Mahindra are headed into the market with a utilitarian ethos that’s been missing from the segment for decades, and established players are responding. Old brands like HUMMER are dying on the vine. The result is a truck market that’s rife with change and transition. Join us as we delve into this changing world of trucks and SUVs today, during TTAC’s celebration of Truck Thursday.
Yesterday we confronted established automakers’ fears of the disposable automobile imported from China or India, but as Automotive News [sub] reports, the majors aren’t just sitting still on the issue. Nissan, which already sells a decontented Versa for $10k is planning two more vehicles at that price point for the US market, based on its new low-cost “V” platform. “The V platform will be sourced in Mexico” reveals Nissan’s North American chairman. Three vehicles will actually be produced in Mexico on the platform, but only two of them will be sold stateside.
Chrysler may file a suit challenging the congressionally mandated dealer cull arbitration, reveals CEO Sergio Marchionne to Automotive News [sub].Why? Because it’s just not fair that dealers pressured congress to give them a fair shake. Wounded by the arbitrary backlash against his arbitrary cull, Marchionne threw his head back and cried unto the heavens:
Ask me what fairness is involved in all this. Why doesn’t anyone ask what’s fair to Chrysler?
It’s incredibly hard to figure out where MSN Autos came up with the headline “CT&T Set to Take the EV Mainstream” for its write up on the South Korean firm’s presentation at the NAIAS. Hell, the author even admits:
Unfortunately, none of the vehicles is approved for “normal” use on America’s highways and byways. Instead, they are categorized as low-speed vehicles by the National Highway Traffic Safety Administration, the same classification given to golf carts and other similar-sized, 4-wheeled vehicles.
The prospect of US launches by Chinese and Indian auto brands like Tata and BYD have at least one of the established US-market players in a paranoid froth. Honda VP John Mendel revealed a few of the nightmare scenarios that keep him up at night to USA Today [UPDATE: more on Mendel’s fears at Automotive News [sub]]. One, inspired by BYD’s plans for a 2010 US launch without a distribution channel in place, is that newcomers could skip the dealer model altogether. Mendel worries that “warehouse stores or electronics stores” (sound familiar?) could be used to cut dealers out of the loop, “blowing up” business-as-usual for US distribution strategy.
Having divested much of its premium brand portfolio (Volvo, Jaguar, Land Rover, Aston Martin), Ford is missing out on luxury sales in growth markets like China. So it comes as no surprise that Automotive News [sub] would ask Ford President of the Americas Mark “MKF” Fields whether Ford’s Lincoln brand could go global. Fields’ reply?
Potentially, but we are focusing Lincoln here in North America for right now. We don’t have any plans at this point to take it global. That doesn’t mean in the future we wouldn’t look at that, but it’s very important for us to focus on North America.
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