The Defense Advanced Research Project Administration is apparently savvy to the fact that mainstream car bloggers regularly Google search the term “Transformers,” in search of vaguely car-related (or, in some cases, not) filler. DARPA’s masterstroke? Using the one-time traffic boost title for a project:
to demonstrate a 1 to 4 person transportation vehicle that can drive and fly, thus enabling the warfighter to avoid water, difficult terrain, and road obstructions as well as IED and ambush threats.
Flying cars, and an opportunity for Transformers references? Who can resist?
Got schadenfreude? This video represents GM’s pathos-laden attempt at discovering Saab’s relevance, circa 2003. But this is more than just the insincere flogging of a dead brand walking, it’s also more evidence for why GM continually struggles with perception gap. Videos like this, touting turnarounds and viability, have been undermining GM’s credibility for decades. At this point perception gap isn’t even the right term: try “credibility deficit” instead. Meanwhile, die-hard Saab fans are planning on converging on the RenCen in hopes of swaying the masters of Saab’s fate to be merciful to their beloved brand. Don’t hold your breath though: as this video proves, GM has years of cynicism under its belt when it comes to its Swedish division.
The underlying cause of GMAC’s failure was no different than so many other American financial institutions: giant bets on risky mortgages at the height of a real estate bubble. And though that error alone would have qualified GMAC for a bailout rescue along with the other failed banks, The WSJ reports that the ongoing support for GMAC is “reflects the troubled company’s importance to the revival of the auto industry.” And man, it had better be important. The GMAC bailout has been one of our least-favorite of the season, rewarding poor practices in auto and mortgage lending, and exposing taxpayers to inordinate risk. But, as TTAC warned back in the pre-bailout days, once the camel gets a nose into the tent, good luck getting it out. And so, GMAC will be receiving another $3.8b in TARP support, on top of the $12.5b it has already received. As a result, the US taxpayer’s stake in GMAC is expected to rise above the current 35 percent stake, just in time for more write-downs planned for the next week. The cash injection is said to prime GMAC for a profitable Q1 2010, erasing some giant losses in the bank’s ResCap mortgage unit. And of course the move will help GMAC continue to underwrite the leases that Chrysler and GM so desperately need, but can’t afford due to plummeting resales. GMAC’s bailout often doesn’t get marked up in the auto industry bailout tally, but at over $16b so far, it’s one of the crucial pieces keeping the zombie automakers shambling along. Now, about repayment…
Amid the cries of shock around the blogosphere at the sudden death of the Kia Borrego, another tidbit of more consequential Kia news remains undercovered. And it’s actually bigger Ford news than anything else. Ford had deal with Microsoft for exclusive access to the technology underlying its Sync system. But with Ford’s 18 month term of exclusivity expired, Kia is set to formally announce its Sync-alike at next Tuesday’s International Consumer Electronics Show. Shooting for the middle ground between Ford’s apt “Sync” brand name and Fiat’s asinine “Blue&Me” moniker, Kia has called the system “Uvo” (Short for “Your Voice,” believe it or not).
The “S” word became one of the more popular words in online discourse this year, typically derailing discussions way off topic and resulting in the kind of partisan screeching that drives everyone bonkers. More often than not, these fruitless debates settle around a single major point of contention: the definition of Socialism. Well, thanks to a 48-picture gallery of auto ownership in the former East Germany at Autobild, we now have a distinctly automotive definition of Socialism. Autobild’s thesis is that automobiles helped destroy Socialism, and certainly being forced to choose between a Trabant, a Moskvitch and a Lada would be enough to turn Che Guevara into Milton Friedman. But the gallery also includes images of the Neo-Trabant, an EV concept that plays on Germany’s strange quasi-nostalgia for the bad old days. Or at least the bad old cars of the bad old days. Which indicates that the most typical response to all forms of politics is ambivalence.
Why should I want to be Toyota? They’re losing billions.
Today’s Quote Of The Day comes from the executive of a certain up-and-coming automaker with dreams of becoming a global player. Think you know who it is? Here’s a hint: it’s not Ed Whitacre.
The Washington Examiner reports that, having previously moved its lobbying efforts to an exclusively in-house arrangement, GM is now hiring outside lobbyists again [UPDATE: GM’s chief in-house lobbyist just retired]. GM has rehired its old lobbying firms the Duberstein Group and Greenberg Traurig, and has added GrayLoeffler to its K-Street roster. GM is also keeping the “well connected” Washington Tax Group on its lobbying payroll, having picked up the firm’s representation in 2007. From these firms, some 18 lobbyists have registered as GM representatives, including a list of what the Wasington Examiner calls “well-connected revolving-door players from both parties.”
Former Reps. William Gray III, D-Pa., and Jim Bacchus, R-Fla., are both on GM retainer, as are fabled Republican and Democratic operatives Ken Duberstein (White House chief of staff under Ronald Reagan) and Michael Berman (counsel to Vice President Walter Mondale and campaign aide to every Democratic presidential nominee since LBJ).
Heading GM’s lobbying push for expanded R&D tax credits is the Washington Tax Group’s Gregory Nickerson, formerly the top lawyer at the tax-writing House Ways and Means Committee and the staff director of the Subcommittee on Select Revenue Measures. Nickerson’s partner is Mary Ellen McCarthy, formerly the top lawyer at the Senate’s tax-writing Finance Committee.
“They don’t write songs about Volvos,” proclaimed an infamous Chevy billboard once seen in the Detroit area. Of course it wasn’t strictly true, but then Chevy’s two most recent forays into musical marketing, Volt Jingles versions 1and 2, weren’t exactly “Little Red Corvette” either. And the trend seems to be holding: quality car-inspired music is slipping away. Even this song, the first Saab-inspired tune I’m aware of, is a wholly forgettable drone about fighting Saab’s inevitable closure. It’s not as bombastically awful as, say, the infamous Mercedes “One Goal” tune, but you know automotive culture is in trouble when the only music it inspires is about the closure of a niche Swedish nameplate. Unless the lyrics “we’re gonna make it, not gonna break it” has some kind of mysterious resonance for the daily Saab driver that I’m not getting. Either way, the world of car-inspired music needs some work.
We’ve always said the Fiat-Chrysler alliance was positive. The headquarters of an increasingly global company are here. But I wouldn’t like to see new auto products being developed in the United States and not here in our own research-and-development facilities.
Andrea Bairati, commissioner for innovation for Italy’s Piedmont region in a WSJ piece on Fiat’s annual meeting in Turin. Maybe if Piedmont had kicked a few billion in on the Chrysler-Fiat alliance, Mr Bairati wouldn’t feel quite so slighted.
No, it’s not an Infiniti, and yes, it is Chinese. Chery’s M14 is testing in UK, reports China Car Times, where Lotus is reportedly helping tune the engine and suspension settings.
According to Reuters, GM has sent a letter to its dealers offering $7,000 for every new Saturn or Pontiac they can move to a rental or service fleet between now and January 4. The plan would essentially make dealers the first buyer of the remaining Pontiacs and Saturns, which would then be operated as fleet vehicles or be sold as low-mileage used cars. In any case, the single objective is clear: get those dead brands off the books at all costs. With 7,900 vehicles left at Pontiac as of the 14th of December and upward of 5,000 left at Saturn as of the beginning of the month, the cost to GM could easily approach $100m. But as they say in the advertisements, their loss is your gain…. as long as you’re interested in one of the G6s or Auras that dominate the dead-brand straggler inventory. Where’s Oprah when you need her?
Getting a car like the Volt on Jay Leno’s Garage seems like a no-brainer. America’s patron celebrity of car obsession has the gearhead credentials to help explain the Volt’s positive attributes, and the enthusiasm to draw a very different crowd than the usual Volt fanboy sites. And yet from the first, the Volt’s visit to automotive Valhalla seems to have chief engineer Andrew Farah in permanent flinch mode. Leno is never overtly hostile (alá Letterman), but from his comparison of the Volt to a 1916 Owens Magnetic, to his assessment that the Volt is “not a tiny car,” you can’t help feeling that he thinks it’s all a bit of a joke. It’s a four-seater. Literally. They’re shooting for a 2,900 lb weight goal. Your mileage may vary. The hood is held up with a stick. What is the deal with that? Like any comedian, Leno’s only as good as his material. Luckily, the yawning chasm between the modest reality of the Volt and its relentless hype is fertile ground indeed.
Subaru wasn’t the only automaker who bucked the misery in 2009, but it was one of the most consistent sales performers month after month. As a longtime Subaru aficionado, my initial diagnosis was that Subaru moved upmarket just as its brand equity was peaking. The brand’s new, flashier interiors, along with upsized redesigns of the Forester and Outback may not have been my cup of 30-weight, but they put the brand on more shopping lists among the automotive mainstream. That’s at least part of the message of Automotive News [sub]’s dissection of Subaru’s strong year, as Subie insiders reveal that more tech toys, better rear legroom and more “sophistication” were important in making Subaru products live up to the inherent “premium-ness” of their AWD platforms. (Read More…)
Not long ago we wondered what the hell Mahindra was up to, as the Indian firm had delayed its US launch seemingly indefinitely. Thanks to Pickuptrucks.com, we’ve learned that Mahindra still has yet to file paperwork for federal standards compliance, and that the launch date for its diesel Pickup has been pushed back to the nebulous date of “middle spring 2010.” Federal testing is complete, but Mahindra won’t submit compliance paperwork to the feds until January. The company reckons this bureaucratic hurdle will be complete by February, clearing the way for a product launch sometime around April. According to pickuptrucks.com, Mahindra will be offering two-door and four-door versions of its pickup at launch, both powered by a 2.2 liter diesel engine. Mahindra intends for its trucks to achieve 30 mpgs and 1.3 ton hauling capacity.
Idle-stop technology, which turns off a car’s engine instead of idling, is available from a number of automakers in the European and Japanese markets. Mazda claims nearly half of its Mazda3 compacts and Biante minivans sold in Japan are ordered with the $500 option, as consumers seek out fuel economy improvement without the cost of a full hybrid system. So, why doesn’t Mazda sell idle-stop equipped cars in the US? According to the company, though Japanese fuel economy tests show stop-start improving efficiency by seven to nine percent “the EPA city-mode test cycle includes only one complete vehicle stop, so stop-start technology registers only a 0.1- or 0.2-mpg improvement.” And who would pay $500 for that?
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