We thought we’d seen the last of the unintended acceleration crazes come and go for good nearly two decades ago. We were wrong. Somehow, like Camaros, Chrysler bailouts and Whitney Houston, the phenomenon has clawed its way back into the American consciousness this year. Consumer Reports even devotes an entire study to the number of unintended acceleration complaints lodged against the 2008 model-year with the NHTSA. Unsurprisingly, the big winner was Toyota, with 41 percent of the complaints, Ford came in second with 28 percent while Chrysler had nine percent. But wait, how many cases were there in total? Only 166? So, of the 2.2m vehicles Toyota sold in 2008, a total of 52 complaints were lodged about a phenomenon with no good mechanical explanation… and Consumer Reports wants us to believe that this is statistically significant?
This may seem a little weird but its not common, On Oct.27 2009 i started having labor pains, Here in Hawaii everything is so close but it was about 8:00 am and traffic here is horrible. My husband and i left to the hospital expecting a normal delivery and no problems, well like i said traffic is horrible here what would of been 30 mins to the hospital ended up as an hour drive with my husband driving down the side lanes and finally calling for a police escort, the whole time this was going on i went into labor while sitting in the front seat and holding onto the anything in the car. I gave birth to our daughter 10 mins away from the hospital in the front seat of our fusion!! With all the crazy driving screaming and yelling we got there safe with our new little girl and no damages to the car inside and out!.I’ve got to say thank you Ford for making a spacious Safe car that got us safely to the hospital…
Ford Fusion: now with placenta-repelling leather seats. Seriously, does this even qualify as a testimonial?
On the same day TTAC ran Martin Schwoerer’s review of the C1 ev’ie, comes word that the diminutive EV has been named the official rental car of the UN Climate Conference in Copenhagen. Apparently the auto rental firm Sixt ordered a bunch of the ev’ies, becoming the first car rental company with electric options. And of course, it just happened to make them available in Copenhagen in time for the conference, so delegates would have an alternative to the Climate Express. Sadly, none of the delegates were environmentally aware enough to arrive on electric airplanes.
“Susan is more than capable of doing the job,” said Mark LaNeve, a mentor of Ms. Docherty’s who left GM in October and is now CMO at Allstate. The position “is a very big job and it’s a lot easier when the market is good than when the market is bad.”
From AdAge‘s paean to GM Sales and Marketing Diva Susan Docherty. Of course, what AdAge fails to mention is that LaNeve was ousted after overseeing years of declining sales, a detail that casts his judgment on the topic severely into question. No worries though. AdAge enthuses that Docherty is
described by insiders and former co-workers as a smart, hard-charging and pragmatic leader who will push responsibility down the food chain and vigorously defend ad managers who work for her — while being a champion of creative and holding them accountable for their decisions.
Uh huh. Too bad the primary evidence for this is the fact that Docherty “vigorously defended” the Buick ad seen above from none other than GM’s Bob Lutz. A former colleague of Docherty’s describes that bold stand as “good for the creative side,” and GM CEO Ed Whitacre must agree, seeing as he recently stripped Bob Lutz of his marketing title and gave it to Docherty. When MaxBob sounds like the only sane person in the building and ousted deadwood execs are endorsing their replacements, you know it’s time to get scared.
The problem we have is, Congress wants to pass a very robust transportation bill in the neighborhood of $400 billion or $500 billion, and we know the highway trust fund is just deficient in its ability to fund those kinds of projects. The highway trust fund was substantial at one time but now with people driving less, and driving more fuel-efficient cars, it has become deficient. To index the federal fuel tax, that’s something Congress is going to have to decide. As we get into the reauthorization bill, the debate will be how we fund all the things we want to do. You can raise a lot of money with tolling. Another means of funding can be the infrastructural bank. You can sell bonds and set aside money for big projects, multibillion-dollar projects. Another way is (charging a fee to motorists for) vehicle miles traveled. The idea of indexing the taxes that are collected at the gas pump is something I believe Congress will debate. When the gas tax was raised in 1992 or 1993, in the Clinton administration, there was a big debate whether it should be indexed. At that time, they thought there’d be a sufficient amount of money collected. Now we know that isn’t the case. That is one way to keep up with the decline in driving, and more fuel-efficient cars.
The next-gen Cayenne gets caught without camo by Autoexpress. So, on a scale of zero to 16 million, just how spicy is the new peppery Porsche? Our equipment is rating it somewhere between “Pimento” and “Poblano.”
In my editorial on GM’s plant to take on the Indian market in partnership with SAIC, I wrote that Maruti Suzuki’s monstrous market share indicated the possibilities for GM. Well, the Indian market leader isn’t going to just sit on that lead. In 2007, Osamu Suzuki said that his firm’s Indian passenger car market share would never drop below 50 percent, an assertion that took two years to prove untrue. The WSJ reports that although the overall Indian market will probably grow 16 percent this year, Maruti’s share of that market has fallen over the last year from 45 percent to about 40 percent (with passenger car share down from 55 percent to 48 percent).
In a lengthy, wide-ranging interview with Automotive News [sub], Fiat/Chrysler CEO Sergio Marchionne got an awkward question from AN’s Luca Ciferri.
Your five-year plan forecasts that Chrysler’s operating margin will peak at 7 to 7.7 percent of revenues in 2014. In November 2006, you predicted that Fiat Group Automobiles’ operating margin would peak at 4.5 to 5.3 percent in 2010. How could Chrysler’s post-global recession peak profitability be 50 percent higher than Fiat Group’s pre-global recession assumptions?
Courtesy of GM-Volt.com, here’s GM’s first post-bankruptcy Volt jingle! And arguably a slight improvement over last May’s jingle. But if you think Big Ed Whitacre will stop all the song-and-dance frivolity, think again. “He will not try to run the programs,” Bob Lutz sneers at GM-Volt. “He knows almost nothing about the business. Nobody will diminish our focus on electrification.” As long as Whitacre kills the Volt-related musical development program, we’ll be happy.
From the Calculated Risk Blog comes this manifestation of the cash-for-clunker boom, as measured by Google’s auto buyer index. Because of seasonal downturn, it seems that pull-forward may not have been as devastating as was once thought. But will next January see the usual post-holiday recovery again?
News that GM is selling a control-shifting single share in GM Shanghai to its Chinese partner SAIC was the toads-from-heaven flourish at the end of an epic week for the RenCen. The day after the last of GM’s lifer CEOs left the building, Opel’s CFO followed suit. One management re-organization and a rough LA Auto Show later, came this symbolic surrender of GM’s largest market for a measly $85m. Accompanied by news that The General would buy out Suzuki’s stake in CAMI for an estimated $46.5m, no less. Oh yeah, and something about India. Freshly-minted CEO and notorious rattlesnake killer Ed Whitacre isn’t about be accused of not trying to shake things up. The only question is where will everything land?
It’s true, we [the Netherlands and Sweden] are small northern countries. We don’t have big German conglomerates to help us out. I just felt like we have to stand together because we’re the same people, we have the same DNA.
Spyker CEO Victor Muller explains his firm’s racially-charged interest in Saab to the LA Times‘ Dan Neil, while somehow managing to avoid any reference to Chris Bangle. Does this mean Muller is OK leaving Saab production in Sweden as a term for the European Investment Bank Loan?
Absolutely. As a matter of principle. The only truly authentic thing about a brand is provenance. The [Porsche] Boxster is built in Finland, OK, no problem. But could they be built in Mumbai? Sure, they’d be 20% cheaper but nobody would buy it.
Sigh. Given Muller’s soft spot for ethnicity-based branding and the sale of 9-5 tooling to China’s BAIC, we’re going to guess that the Saab-Spyker deal isn’t going to work out so well. [Hat Tip: Thor Johnsen]
Having planned to idle production plants for a mere ten days over the winter break, Chrysler is responding to weak sales by extending the holiday shutdown of several plants to three weeks or more. The WSJ reports that Chrysler’s Windsor and Brampton plants (minivans, 300/Charger/Challenger) will shut down starting December 21 and will idle through January 18. The Toledo plant (Jeep Wrangler) will also idle beginning on December 21, and will resume production on January 11. Chrysler is also said to be considering extended production shutdowns at its Detroit Viper factory (which is entering final production anyway) and an unspecified Ram plant. Unless December sales numbers turn out to be humdingers, this winter vacation could possibly go on even longer, as Chrysler struggles under falling sales and a 64-day supply inventory.
Fresh details on GM’s Asian wranglings are coming in, and it seems that SAIC paid The General a mere $85m for the one percent needed to control the joint venture. GM’s Nick Reilly tells the New York Times:
the 51 percent stake would give S.A.I.C. the right to approve the venture’s budget, future plans and senior management. But the venture has a cooperative spirit in which S.A.I.C. has already been able to do so… S.A.I.C. wanted to have a majority stake to consolidate the venture in its financial reporting
Which is about as credible as the conclusion that the Shanghai and India deals are going to provide GM International with a meaningful amount of cash with which to rescue its European and Korean divisions. As it turns out, the Indian deal isn’t going to translate into free cash for GM. GM and SAIC will set up a joint Hong Kong-based investment company, which GM will give its Indian operations and SAIC will fund with $300-$530m, bringing its overall value to $650m.
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