GM Chairman and CEO Ed Whitacre has made his first real media availability today, answering questions on a number of issues including the deal that sent control of GM’s most important Chinese joint venture to its partner, SAIC. According to Whitacre, the deal was put in place by former CEO Fritz Henderson. “It was sort of done before I got here,” Whitacre tells Reuters. Not to worry though, Whitacre has met with his counterpart at SAIC and was assured that “the nature of the partnership would not change.” Meanwhile, Gasgoo all but confirms that the rationale behind the deal is competition in India’s small-car sweepstakes, as a $3,500 sub-Spark model is apparently being planned to compliment the GM-SAIC-Wuling commercial vans that will spearhead the effort. Given how crowded India’s small car market is shaping up to be, it’s interesting that Whitacre didn’t cancel the agreement as he did with Henderson’s deal to sell Opel to Magna. And as for Henderson’s departure? “There was just a common agreement that what you want to do is not what I want to do,” says Whitacre.
“We’re still dependent on each other,” Ford’s head of global product development Derrick Kuzak tells the Detroit News, dispelling rumors that Ford and Mazda are going their separate ways. “You cannot change that overnight.” According to Kuzak, many of Ford’s most important vehicles continue to be based off of Mazda platforms. Ford Chief Financial Officer Lewis Booth adds,
The strategic relationship continues. The business relationships continue. And they continue on the basis that they’ve always continued. Where it works to the benefit of both companies, we do things together, and where it doesn’t, we don’t.
Ford will be taking a conservative approach to 2010, according to Chairman Bill Ford, who tells Automotive News [sub] that unemployment makes him most pessimistic about the year to come.
We’re not planning for a huge pickup next year. If we get one, great, we’ll ride it. We’re planning conservatively. Just as we did this year, we’ve kept our inventories low. If things start to pop for the better, we’ll adjust our production upward and go that way
And why not? Ford’s stock price has soared over the last year, since falling under $2 a year ago. This despite the fact that the Blue Oval is mortgaged to the hilt and will miss profitability for 2009. But because Ford believes that, as President of the Americas Mark Fields puts it, “our plan is working,” the bonuses are coming back for Ford’s white-collar employees.
If human beings were truly rational animals, trends would be easy to predict. Given that we’re fickle, self-aware and subject to the influence of less predictable forces than pure reason, figuring out what is going to appeal to people is never easy. And few automotive examples prove the inconstancy of market trends like the minivan. On paper they just plain make sense, creating a huge amount of flexible interior room out of high-volume sedan platforms, making them relatively cheap, capable and efficient. But if consumer decisions were made based on such rational considerations, turtlenecks would be long overdue for a huge comeback. In short, the “image thing” killed minivans, with morethan a littlehelp from the marketing efforts of the very companies that profited off their (relatively) brief time in the sun. And really, the future of the minivan will be determined by the staying power of its modern replacement, the Crossover. Are CUVs an evolutionary step from the SUV dead-end of the 90s back towards minivans and station wagons, or will the needs of multiple-passenger consumers forever be doomed to be served by the in-between-mobiles? My totally unjustified belief in the basic sanity of consumers makes me believe that minivans make too much sense to not make a comeback, and concepts like VW’s Microbus show the way. What say you?
Sure, GM Sales and Marketing maven Susan Docherty is better at the webchat format than CEO Ed Whitacre (not to mention Mark “HOT DESIGN” Reuss). Docherty’s emoticon-free performance certainly beat Whitacre’s for sheer volume, but even when she’s talking a lot, Docherty isn’t really saying much of anything. Since GM is generally operating under radio though, today’s webchat is about all we have to go on for a taste of life in the RenCen as a turbulent year sweeps to an equally turbulent close. So let’s dig in, shall we? (Read More…)
Chrysler’s new advertisements may have been replaced by this video as the automotive marketing gaffe of the moment. When asked in a Fastlane webchat why GM had approved this questionable video, Sales and Marketing supremo Susan Docherty managed to come across as even more clueless and incompetent than she would have if she’d been prancing front and center:
I have to be honest I haven’t yet seen the Chevrolet Volt song and dance but it sounds like I need to spend some time tonight on the web viewing this. Thanks for the heads up. Do you have any suggestions for us?
Yeah, here are some suggestions: first off, it’s not the roaring twenties, Busby Berkeley. Kill the dance numbers. Suggestion number two: if you’re the head of sales and marketing, you should at least be aware of the existence of “promotional” materials like this. Third: if GM doesn’t take the Volt seriously, nobody will. Keep that in mind when approving marketing ideas.
Here in the Pacific Northwest, the Subaru Outback has long been one of the most ubiquitous cars on the road. From soccer moms to weed dealers to weed-dealing soccer moms, drizzle-belt car buyers bought the jacked-up AWD wagons in droves, presaging the modern mass-market craze for all things crossover. But in the transition from rough-and-ready station wagon to mainstream crossover, the latest Outback seems to have lost the magic that made it the vehicle of choice for Northwest families looking to retire the old Volvo wagon.
As Ferrari leaves its traditional elegance aside in favor of expeditions to the limits of geek-gauche, few efforts by the Modena firm are as dismaying as its Special Projects one-offs. Jimmy Glickenhaus’s million-dollar Enzo-upgrade, the Pininfarina P4/5 set the pattern: one-off Ferraris must clearly signal that their owners have far more money than taste. Following in that bold tradition is this, the P540 Superfast Aperta, based on the 599 GTB. Though it looks like the buyer, Edward Walson, simply asked for a gold, targa-topped 599 with 250 GTO styling cues, the Aperta was actually inspired by the gold Fezza from Fellini’s Toby Dammit. Not that the pedigree keeps the Aperta from looking like a 1970s oil-sheik special. And considering this dismal re-working does such disservice to Ferrari’s best-looking car (plus the targa-top adds 50 lbs), it’s hard to see why they were so certain the project was “in keeping with the brand’s ideals,” as Autocar puts it. On the plus side, Walson gets the 540’s tooling to ensure uniqueness. Here’s hoping it stays as “unique” as it is “special.”.
UAW Boss Ron Gettelfinger plans to retire next year, and the search is on to replace the man who led the union through the political minefield that was the auto bailout. But the union’s support for Bob King, who led negotiations with Ford, could open up divisions within the union, reports Automotive News [sub]. King followed the Gettelfinger line, offering Ford many of the same concessions it granted GM and Chrysler during the government bailout that transferred large stakes in those companies to the union’s VEBA fund. Those concessions to Ford, which would have preserved the UAW’s decades-long policy of treating the Detroit automakers equally, were rejected by the same union rank-and-file that must now ratify King’s nomination.
For all the criticism that’s been leveled at GM’s finance operation, the firm’s most recent CFOs have yet to pay much of a career price. Previous CFO Fritz Henderson was promoted to the CEO’s spot by the presidential auto task force, and Automotive News [sub] reports that current CFO Ray Young has just been named VP for International Operations. Young’s departure from GM’s finance unit has been something of a foregone conclusion since GM exited bankruptcy, with reports of his imminent departure in the Detroit papers of record going undenied, and a recent acknowledgment that a search was on for his successor. In light of GM CEO Ed Whitacre’s ongoing game of executive whack-a-mole, it was tempting to believe that Young was on his way out, but apparently GM CFOs are pre-sprayed with teflon.
The Friends of the National Automotive History Collection have voted the Ford Flex as their “Collectible Car of the Future” of 2009. According to the NAHC’s press release, the award process “asked members to predict which of this year’s new vehicles will turn heads in the Woodward Cruise of 2034.” Of course, this criteria allowed only Detroit iron into the running, a stricture that we won’t hold you to here. We don’t care where in the world your nominated vehicle is built or sold, we just want to know what new car sold anywhere will be a coveted classic in 20 years. Our first nomination comes from TTAC commenter gslippy, who figures
Early Nanos will become collector’s items someday, just as the Honda N600 has.
That’s a solid nomination to start things off with, to which I would simply add the BYD F3DM. Not only is it the world’s first mass-produced plug-in hybrid, it has also sold miserably, further adding to its future collector value.
From our “Gosh, the Germans take things so seriously” file, comes this video from Germany’s ADAC auto club in which a crash test facility is used to determine the best way of securing a Christmas tree to your car. Sachlich!
It’s easy to blame GM’s new Chairman and CEO’s recent webchat performance on the format. Webchats invariably combine the awkward claustrophobia of conference calls with the eloquent clarity of text-messaging, for a match made in communication hell. That’s no place to properly explain what the NSFW is going on with your company. Especially when you have yet to comment on the “Opel drama,” “palace coup,” “tilt-a-executive,” and “getting in bed with the Chinese” storylines (among others). Needless to say, the MSM is not amused. Nor, frankly, am I. Which is why today’s quote of the day is actually nine days old.
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