GM’s Lordstown, OH plant was something of a poster boy for all that went wrong with the UAW over the past several decades, reports the New York Times. Poor quality, worker sabotage and crippling strikes led to the coining of the term “Lordstown Syndrome” as a symbol of UAW recalcitrance. Lordstown’s workers were so feisty that they even picketed their own union hall in the 1980s. Now, with the legacy of the Vega hanging over their heads, and the possibility of plant closure only narrowly avoided by securing the Chevy Cruze manufacturing assignment, the members of UAW Local 1112 are singing a different tune. “We were the bad dog on the street at one time,” 1112’s shop Chairman Ben Strickland tells the Times’ Nick Bunkley. “We’ve got 3,000 lives to worry about. The cockiness and the arrogance that we once portrayed — we definitely got a lot more humble.” That, it turns out, is in large part due to General Motors’ spectacular fall from grace.
Posts By: Edward Niedermeyer
Nissan stumbles into Scion territory with this teaser image of its new compact crossover, the Juke, to be built in Britain starting this year. The Juke is supposed to bridge the gap between the Qashqai (Rogue) soft-roader and the Note compact MPV. Because someone, somewhere wants a compact crossover with less capability than a Rogue and less rear visibility than a Note. The hunt for that confused consumer is now officially on.
Opel already has big plans for its restructuring, despite the minor issue of being short a few billion dollars. According to an interview with Opel boss Nick Reilly in the print edition of Auto Motor und Sport, only a billion Euros of the €3.3b Opel turnaround plan is going to be spent on restructuring. The rest will be spent on new products like a city car, a “mini offroader,” and new high-tech drivetrains. According to Autocar, one of those high-tech drivetrain options is a a pairing that several firms including VW and Peugeot-Citroen already looked into but have yet to bring to market out of concern for the high cost: the diesel-electric hybrid. GM Europe’s Advanced Powertrain Chief Engineer Maurizio Cisternino explains “if you want the best fuel consumption, you have to go with the diesel-electric hybrid.” But there’s a tiny problem: Cisternino wants to get diesel-hybrid prices down to a €1,000 premium over gas-electric hybrids, a goal Cisternino admits “does not work at the moment.” Now if only GM had some government investment in the technology…
Of all of Chrysler Group’s branding conundrums, the de-Ram-ified Dodge brand has got to be one of the toughest ones. Without the truck-based image or styling, Dodge is a brand without a purpose, and Dodge CEO Ralph Gilles brought little to his brand presentation at Chrysler Group’s five-year plan that would help explain what Dodge is or why consumers should choose it. Other than more refined youthfulness and less rugged wisdom. Or something. Anyway, if Dodge is really to be “all things to all hip people” as the Autoextremist succinctly puts it, they sure picked the right ad agency. Wieden + Kennedy does hip like few others, having started with Nike’s “Just Do It” and taken off from there. As the ad above, and several other Honda spots prove, the guys knows how to bring some youthful enthusiasm to the otherwise staid, desperate world of car advertising. And goodness knows recent Chrysler Group advertising needs the help.
GM’s CEO and Chairman Whitacre gave Automotive News [sub] some choice nuggets of quote today. Addressing almost everything except his firm’s stagnant sales, Whitacre took on some of GM’s most staggering challenges in the most… folksy tone imaginable. Mr Whitacre, your explanation of GM’s bankruptcy dealer cull if you please:
The way it came out, if you fell above or below a line, you were removed. But you had to do it that way. You can’t just go around flipping coins, so you had to have a process.
Ok, take a minute to wrestle with that one. Then hit the jump.
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Cash for Clunkers was set up very quickly, and there hasn’t been an accounting of the administrative costs of the program. There also hasn’t been publicly available information about how contractors were picked to process the thousands of transactions that the program generated… My concern is the waste, fraud and abuse that may have resulted from the vulnerabilities that can come with such a quick start.
Senator Chuck Grassley sticks it to Transportation Secretary Ray LaHood, in a letter requesting a full accounting of the cash for clunker program. The DOT was all over fraudulent commercial practices during C4C, but this is the first investigation into possible fraud or overruns on the administration side. Why Grassley waited until now to look into this doesn’t exactly compute, but it will still be interesting to see the results of the audit. After all, could it even be possible that the government spent $3b in a matter of weeks on a consumer incentive without fraud of some kind taking place?
Unfortunately, we’ve discovered a slight problem with our list, namely that imported and domestically-produced models are listed separately (as our data comes from a firm that mostly works with suppliers). For the Top 25, this means that the numbers for vehicles produced domestically and imported (like the CRV and RAV4) are off. We ask for your patience while we work with our data provider to fix this problem.
What’s wrong with this picture? TTAC loves sales data, but lately we’ve become a little jaded with our own efforts to provide a thorough look under the hood of the industry. And as everyone in the auto business knows, when the going gets tough, the tough get outsourcing. TTAC is proud to announce that we’ve concluded a deal with the fine data crunchers at Morgan & Company, giving us (and you!) access to their magical spreadsheet kingdom. Needless to say, we’ll be spending much of 2010 wallowing in the beautiful data in hopes of providing a better picture of the industry’s nuts and bolts. For now, check out this chart of Detroit’s market share swan dive since the early 90s. One of these things is not like the other…
First it was the Prius, now Audi has come out with an ad featuring failed suicide. In both cases, the intended message (our car doesn’t spew poison) gets a bit lost in shuffle due to the fact that consumers of these products are portrayed attempting suicide. So this is what Audi’s CMO meant when he said rational arguments don’t work in the marketplace. Unfortunately, as the California Air Resources Board helpfully points out, diesel fumes contain arsenic, benzene, formaldehyde, nickel, and polycyclic aromatic hydrocarbons. So, you know, professional driver on a closed course, and all that. Don’t try this at home, kids!
GM’s VP got a guest spot on Edmund’s Inside Line to promote his “to-do list for 2010.” The top two spots on the list are dedicated to Lutz’s resolution to “remain focused on the product above all else,” presumably because “stop repeating self” was cut by GM PR. But number three on Lutz’s list is of considerably more interest. Labeled “change minds,” Lutz uses the entry to defend the General’s “perception gap” hobbyhorse. You see, when GM accuses consumers of being too stupid to understand how great GM’s products are, they aren’t actually calling consumers stupid. In hopes of clearing up the confusion, Lutz does what any other savvy marketer would do: call the media stupid.
Let me digress for a moment and say that I’ve seen it written that GM’s marketing strategy is based on the fact that the consumer is too dumb to know what great vehicles it makes. I take huge issue with that. That’s an example of the media trying to ascribe some of the old GM arrogance where none exists.
Speaking to Bloomberg yesterday, GM Sales Boss Susan Docherty called December’s sales results “very encouraging.” Her argument: heavy fleet sales in December 2008 explain why December 09 results look worse by comparison. But spinning sales results as the product of conscious fleet percentage reductions is just one longstanding GM tradition that Docherty indulged in: talking points touting falling incentives and improved inventory weren’t far behind. None of which is necessarily indicative of a satisfactory performance. In fact, if you dissect the spin, it’s clear that what lies beneath is not nearly as attractive as the PR would have you believe.
The news coming out of India has been dominated by talk of the booming small car market, there’s another development which deserves some attention. The Economic Times of India reports that after two years of testing, India’s government is about to roll out a star rating system for (get this) fuel efficiency. The star rating system is voluntary for the first year, but starting next year the system becomes mandatory. The ET explains:
The proposed label will not only suggest the new car’s ideal mileage but also tell the buyer how the car performs compared to other models in the same category. The categories would be created on the basis of the vehicle’s weight. The best performer would be given 5 stars and the others would get fewer stars depending on their mileage. At the moment, sources in the government suggest not many cars are able to hit the top category.
Quick, someone bring me the forms I need to fill out to register my displeasure!
Ok, so not every Saab owner made it to the “Save Saab” rally outside of GM’s headquarters today… but local Detroit businesses did report shortages of pipe tobacco, leather elbow patches and quirk. All kidding aside though, is there a better illustration of the blind passion that automobiles so relentlessly inspire? These folks had to know that 20-odd people with signs wouldn’t make a lick of difference to Saab’s fate, but dammit, they drove to Detroit anyway. From as far away as New Jersey, Kentucky and Iowa, no less. Somehow that makes the inevitable schadenfreude seem a little less satisfying.
Good news for Elkhart, Indiana today, as The Detroit News reports that the Norwegian EV firm Th!nk has chosen the city for its $43.5m US production facility. The plant will have a production capacity of 20k units, once production ramps up from its 2011 start. By 2013, Th!nk says it will employ 415 workers who will build the firm’s City model, a two-seater which will initially cost nearly $40k before government tax breaks. The factory will receive some $17m in state and local tax breaks and incentives. Th!nk hopes to eventually reduce the cost of the City, which has a stated range of 112 miles and a top speed of 70 mph, to about $20k.
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Audi CMO Scott Keogh explains how diesel, racing and politics can be relevant to automotive marketing… as long as they’re approached in a different and unique way. Money quote at 3:10: “We clearly knew that a rational argument was not going to work in the marketplace.”
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