One man’s waste can be any other man’s treasure… given enough hard work. For one of his many projects, Belgian “neo-conceptualist” artist Wim Delvoye took well-loved tires and transformed them into hand-carved works of art that wouldn’t look out of place in Beijing’s Forbidden City. Anyone who’s destroyed a set of tires in a day and felt a tiny twinge of guilt at the delightful wastefulness of the experience can relax knowing that they haven’t destroyed something, but merely sent it on the next phase of its life. In most cases your used P-Zeros and Potenzas will end up as astroturf or hot tar, but a lucky few will fall into the hands of an enterprising artist like Delvoye and end up as transcendent art. If I could afford to regularly destroy tires, I’d be looking for one of these to display in my garage. [via Gizmodo]
I’m not generally much for anniversaries. Heck, after more than six years together, my steady sweetie and I can’t remember our actual anniversary, so we had to make one up… and we (both) still forget it most years. But here on the internet, there’s a record of everything. And looking back, it seems that it was exactly two years ago today that Robert Farago called me to say that The Truth About Cars was going to be my problem from now on.
Once upon a time, this stuff was easy. When Jean Jennings needed a little extra pocket change all she had to do was… make an ad. Like this one, for the Silverado. Or this one, for Jeep (which I swear was still visible less than a year ago). Nowadays, however, you’ve got to be a little more careful about how you go about lending your “editorial credibility” to one of the brands you’re supposed to be covering rather than shilling for. So instead of the straight-up “Hi, I’m Jean Jennings, Editor-in-Chief of Automobile Magazine, and here’s why I love Chevy’s Silverado” pimpatorial of the past, you’ve got to layer on the irony, load up on non-car-related distractions (I’ve got it… a puppet!) and generally avoid the personal testimonial format as much as possible. (Read More…)
In yesterday’s coverage of the new UAW-GM contract, I wrote
What’s not yet clear is whether entry-level “Tier Two” workers, who make half what their “Tier One” brothers make, got a raise. Though it’s clear that GM and the UAW worked to avoid major increases to fixed costs by concentrating on jobs and profit-sharing bonus checks, the NYT confirms that the union was asking for some kind of entry-level raise. Given that no outlet is confirming any such Tier Two raise, though, it seems as though the UAW’s culture of seniority-over-solidarity has won out.
I was wrong. The Detroit News‘s Christina Rogers reports that GM will
give entry-level workers a $2-$3 an hour increase. Those so-called tier two employees, who are paid $14-$16 an hour, will be boosted to $16-$19 an hour.
Good for you, UAW. Thank you for proving me wrong. But the sooner the union shares the burden of the “new normal” equally across its entire membership, the better. This is a step in the right direction, but as long as some brothers are more equal than others, it’s going to be tough to talk transplant workers into what still amounts to a seniority pyramid scheme.
The question of automotive preservation jogged an unblogged memory loose today, from earlier in this chaotic summer when I was in Wolfsburg, Germany. I was touring the Zeithaus, or “House of Time,” in Volkswagen’s sprawling Autostadt, taking in the remarkably well-curated exhibit of some of the most influential and important cars of all time. Unlike the GM Heritage Center, for example, the Zeithaus is not reserved for VWs alone, but includes fine examples of undeniably iconic cars from various marques. Organizing VW’s official museum in this way gives the brand a sense of sophistication, sending the message that VW knows quality even when it’s not the one producing it. And the Zeithaus’s curators use this well, offering up such flattering (if ultimately apt) comparisons as an Audi A2 poised alongside a Citroen DS.
You may not have heard of the Historical Vehicle Association before, but it’s a 30,000-member advocacy group that actually emerged from a special insurance plan for historic cars offered by Hagerty Insurance. Now ratified by the Fédération Internationale des Véhicules Anciens, the HVA offers commissions on History, Skills and Trades, Technical Issues and Legislative Affairs, as it seeks to fulfill its mission of “Keeping Yesterday’s Vehicles on Tomorrow’s Roads.” One of its more laudable legislative tasks of late has been raising awareness about the damage caused by ethanol-blended gasoline and seeking to ban mandatory blending. But now it’s got another goal, as reported by Automotive News [sub]
The federal government has national registries for historic buildings, boats, airplanes, railways — you name it. But not for cars. And the Historic Vehicle Association is trying to change that…
A concern among enthusiasts is that government initiatives — such as the 2009 federal cash-for-clunkers incentive — could send many vintage cars to the crusher. Legislation might prevent cars from being destroyed. Or it could allow gas guzzlers to remain on the road if other laws preclude them.
As it so happens, my significant other is an Architectural Historian who spends her days evaluating buildings that could be impacted by federally-funded projects… so I hear about this issue (in terms of the Register of Historic Places) more often than you can even imagine. And it’s not as simple as it might seem…
Not long ago, I considered asking the Best and Brightest if something like this were possible. You see, when I was a younger man, I was a big fan of the game Aerobiz, a tough, take-no-prisoners Super Nintendo simulation of the (Cold War-era) airline business. Since I’ve been immersed in the world of the car business, I’ve often wondered if it were possible to create a game that similarly captured the challenges of running a car company. And now, it seems, that game is already in development by a couple of coder car nerds from Australia. Called “Automation,” the game is still a ways from completion and its creators are soliciting pre-orders to help fund development (sound like any car startups you can think of?). (Read More…)
As predicted, the hand-wringing over Sergio Marchionne’s letter to Bob King was not enough to derail the basic motivations for the UAW to reach new deals with the automakers. Last night the union agreed to a tentative agreement with GM, its pattern target for this, the first round of negotiations since the bailout. That agreement must be approved by the union rank-and-file, but if ratified, Reuters reports that it includes
The re-opening of the idled Spring Hill, TN plant to build an unspecified “new product”
$5,000 signing bonuses (at a cost to GM of $245m)
According to the NYT, “significant improvements to health care benefits” are also part of the deal
According to AN [sub], the union “successfully fought back efforts to make major changes — and weaken — our retirement plan.”
Sources close to the negotiations told The Detroit News that a deal was imminent with General Motors Co. when Chrysler CEO Sergio Marchionne sat down at his Mac computer and fired off a sharply worded letter to UAW President Bob King at 10 p.m. Wednesday, accusing the union leader of violating their gentlemen’s agreement to sign off on a deal by the 11:59 p.m. deadline.
Shortly after the letter was sent, talks stopped at both companies.
Chrysler and the UAW agreed to extend their current contract for one week. Talks resumed Thursday between the two sides, but nothing of substance is being discussed at the bargaining table, according to people familiar with the talks.
Actually, that’s not exactly what everyone is reporting…
The Sept. 5 article about our efforts at GreenTech Automotive (“Real deal?”) stands in stark contrast with the Aug. 28 article in which you reported on partnerships between Toyota and Ford, Tesla, Aston Martin, Lotus and Salesforce.com (“Doing deals, Akio style”). The latter story says Toyota CEO Akio Toyoda “is breaking tradition to transform his ossified giant into a nimble competitor.”
Nimble competition is a key to success in our modern age of change and innovation. Yet you seem to take GreenTech to task for attempting just that. We aren’t trying to be GM, and we never plan on being bailed out by the U.S. government. We are embracing a different, leaner business model in which our world-class partners will play a key role in our success, and we are doing it with private capital.
Republican leaders in the House of Representatives want to halve the balance of a U.S. government loan fund established to help the auto industry make more fuel efficient cars and trucks.
If plans to shift some $1.5 billion from the Energy Department advanced technology fund to disaster assistance are carried out, serious questions would be raised about Chrysler’s ability to fully capitalize on its bid for new financing.
I have neither the arrogance nor the cash to show any disdain toward the DOE process.
Chrysler also cites its ability to secure the DOE loans as a major risk factor in its latest 10-Q SEC filing. And with only about $10.2b in cash and equivalents on hand at the end of June, there’s a chance that this attack on the ATVM loan program could deal a body blow to Chrysler’s finances. Here’s hoping Sergio has kept the runt of the bailed-out automaker litter from dependence on this apparently corrupt, and politically vulnerable loan program.
Thanks to the TTAC faithful, we will now begin airing regular shows every Thursday at 7:00 PM EST at this Internet site. Today’s guest will be none other than Jack Baruth. What we’ll talk about… who knows? That’s where you come in. Let us know what you would like for us to cover and we’ll be happy to bring it up.
Derek Kreindler’s provocative defense of the Maserati Kubang sparked off an interesting discussion among TTAC’s Best and Brightest yesterday, about the the macroeconomic outlook for luxury brands. Sure, the American economy is struggling to stay out of a double-dip recession, credit is no longer as available as it was in the pre-Lehman days, and some argue that worse is still to come… but for the moment, the high end of the luxury market couldn’t be doing better. Rolls-Royce CEO Torsten Mueller-Oetvoes tells Reuters [via AN [sub]] that his brand will set a new sales record this year, and that the outlook for 2012 is good, saying
I have not seen any reluctance to consider buying a Rolls-Royce. I do not feel that sentiment is deteriorating in the luxury market. We are dealing with people who are unusually wealthy and never really have to ask themselves, can I still afford this or not?
And it’s one thing to just talk, but Rolls is also putting its money where its mouth is, initiating a $16m expansion to its Goodwood plant. And it’s not the only luxury brand that seems to be confused about this “recession” that the peasants keep going on about…
The United Auto Workers and the Detroit automakers have been locked in negotiations for months now, as both sides seek to redefine their relationship in the post-bailout era. And though all sides have stressed the importance of avoiding intractable disputes in an alleged new spirit of cooperation, it seems that the prospects of a quick, painless conclusion to negotiations remains elusive. The UAW’s contracts with Chrysler and GM both blew past their deadlines at midnight last night, and Ford, the only manufacturer at theoretical risk of a strike, extended negotiations earlier this week. TTAC has not covered these negotiations in much depth for the simple reason that little information leaks out of them. But with contracts expiring and optimistic rhetoric crashing on the rocks of reality, the frustration is clearly starting to boil over. And who is surprised that Fiat-Chrysler CEO Sergio Marchionne is the first to let his frustration show?
Volkswagen will almost certainly finish the year as the second-largest automaker by volume… and if it wants to take the top spot, it will do so on sales, not acquisitions. Having gobbled an extraordinary number of acquisitions over the past several decades, including Bentley, Lamborghini, Bugatti, Italdesign and Karmann, VW’s monstrous appetite appears to be waning. And no wonder: the latest mouthful, a partnership with Suzuki, has gone sour and recent lustful glances at Alfa have drawn sassy rebukes from Fiat’s Sergio Marchionne. Accordingly, VW’s Chairman Ferdinand Piech tells Bloomberg [via AN [sub]] that no more acquisitions are planned and that
We’re big enough
Of course, this is also coming from the company that’s been struggling to swallow Porsche for the last several years. Once that deal is complete, we’ll check back on Herr Piech’s appetite. Because in an industry built on scale, you never know when hunger will strike…
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