“I feel like the tailgunner on the Enola Gay,” was the reaction of one Robert Farago to GM’s just-released September sales data. Mr Farago’s quip does perfect justice to the breathtaking horror of GM’s 45 percent decline from last September, itself a dramatically weak sales month. Any remaining hope for GM’s market share clearly died with Cash For Clunkers, as no segment or brand was left untouched by the carnage. And what did a certain Mark LaNeve have to say about the flesh-melting awfulness on the ground in the RenCen? “September was a tough transitional month for the industry, and a difficult year-over-year comparison for GM. Fortunately, the fourth quarter looks brighter and our year-over-year comparisons should look more favorable.” Clearly LaNeve has confused a mushroom cloud for the light at the end of a long, long tunnel.
For all of the uproar around distracted driving this week, nobody seems to know exactly what the problem is, let alone how to stop it. Everything from in-car makeup application to text messaging is being blamed for 6,000 deaths in 2008, some 15 percent of all road fatalities. Secretary of Transportation Ray LaHood has heard stories of heartbreaking tragedy from families who have lost loved ones to distracted drivers, seen the statistics which say cell phone use impairs driving ability to the same extent as a .08 blood alcohol content, and he sees an opportunity to make a difference. That’s an admirable response, but LaHood’s do-right attitude is enveloping his department and administration in a perfect storm of hysteria, opportunism, and quixotic pathos.
We thought the Lexus HS250h would be a cynical rebadge of the Prius with a little more power. We were wrong. The HS was marginally unique enough, but then ToMoCo went and cynically reabdged it as a Toyota and called it the Sai. Sigh. It hasn’t been confirmed for the US yet, but if it is, there’s not much breathing room between the $22k Prius and the $26k Camry Hybrid. Nor would there be much reason left to buy an HS.
Official fuel economy testing for all vehicles is conducted on chassis dynamometers, which are basically treadmills for cars and trucks. One subtlety of chassis dynamometer testing is that vehicle fuel economy measurements using decades-old standard speed profiles may be overly optimistic compared to today’s average on-road fuel use. Official methods exist to adjust the test cycle fuel economy of conventional vehicles to better estimate expected real-world fuel use, but a similar adjustment method has yet to be finalized for PHEVs.
From a National Renewable Energy Lab paper on plug-in hybrid efficiency testing [via Green Car Congress].
The Wall Street Journal reports that Roger Penske has pulled out of a deal with GM that would have kept the Saturn brand in business. Per the WSJ report:
The deal called for Penske to initially acquire vehicles from GM but eventually branch out to sell products from Renault SA (RNO.FR) and its Samsung Motors unit, which is based in South Korea. Penske Auto said Wednesday that it negotiated a supply agreement with “another manufacturer,” but that company’s board rejected the deal.
“Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction,” said Penske Auto.
Reuters confirms the story, adding “GM said in a separate statement it would wind down the Saturn brand and its dealership network.”
According to a post by Diarmuid O’Connell, Tesla’s Vice President of Business Development,
The Model S platform will also be used for derivatives including a minivan, cross-over utility vehicle and a utility van for fleets and other industrial or civic uses
The Model S sedan already claims seating for seven, with a third row of jump seats under its rear hatch. But hey, why not build other models on the same platform? Nobody shopping a Tesla is going to care about overlap, price premiums or branding issues. The EV business model is still squarely in the “set a price and hope there are enough early adapters out there” era, and more models will help differentiate Tesla from competitors like Fisker. Besides, Tesla has made it clear that they don’t want to be a luxury car maker forever. Elon Musk sees high-end products like the Roadster and Model S Sedan as cocoon from which Tesla will emerge as a fully-formed, mainstream EV manufacturer. And if you’re going to worry about the Silicon Kids on the basis of this one blog post, it should be because of the following syntactically-challenged sentence:
Secretary of Transportation Ray LaHood kicked off the DoT’s first-ever “Distracted Driving Summit” in Washington today with a speech calling texting while driving a “menace to society.” LaHood cited just-released NHTSA data (PDF) showing that 6,000 road deaths, or about 15 percent of the 2008 total, were caused by distracted drivers as evidence of what he termed a “deadly epidemic.” According to the Detroit News, LaHood singled out drivers under the age of 20 as the worst offenders and called for “a combination of strong laws, tough enforcement and ongoing public education.” And though there seems to be little outcry over the singling out of young whippersnappers, the cell phone industry wants to make sure its products don’t become the scapegoat for LaHood’s ominous metaphors. Makeup, GPS systems, food and other distractions are being discussed as potential targets for action. The summit’s media facts page even points out that “distraction from cell phone use while driving (hand held or hands free) delays a driver’s reactions as much as having a blood alcohol concentration at the legal limit of .08 percent.” Sorry Ford! A Maine law banning all forms of driver distraction is being looked at as an example, but even LaHood concedes that “We cannot rely on legal action alone, because in reality, you can’t legislative behavior. There aren’t enough police on patrol to catch everyone who’s breaking the law.” Which is a fantastic point, but one that’s apparently not stopping LaHood from considering invasive enforcement techniques.
Bob Kruse, GM’s executive director of global vehicle engineering for hybrids, electric vehicles and batteries and the man in charge of the Volt’s battery development and integration, is leaving General Motors. The Detroit News reports Kruse is leaving to start an EV consulting firm, creatively named E V Consulting. “My departure from General Motors has nothing to do with my view of the future success for the Volt,” says Kruse. “I’ve left on very good terms. I have a lot of respect for the leadership of General Motors.” And then he goes and confuses everything by claiming, “I’m not going to lie. Are they happy about my departure? Probably not.” And GM’s response? “There’s no good time to lose good people, but that said, the Volt team goes way beyond one person.” Which, for comparison, is a more straightforward response than Tesla’s Elon Musk gave when his head of development and manufacturing suddenly ditched. But the real irony is that GM’s bailout, which at this point is a gamble that rides on the success or failure of the Volt, was the motivation for the Volt’s top midwife to ditch in the middle of its frenzied gestation.
Before we jump into this one, it’s important to lay out a few caveats. The first is that, in general, TTAC doesn’t do recalls. It’s impossible to cover them with any fairness, and most of the time they’re inconsequential or hard to verify. The second is that TTAC really, really doesn’t do sudden unintended acceleration (SUA) scares. If someone tells you their throttle sticks wide open at precisely the same time as their brakes fail, they’re either covering for their own incompetence or looking for a buck. Period. Now, the proliferation of computer controls may have introduced a greater possibility of simultaneous system failures than existed on old, mechanically-actuated brakes and throttles. In fact, the recent rash of SUA complaints involving Toyota and Lexus models had me wondering if ghosts in the machine were rendering the time-tested SUA debunking test obsolete. No such luck. It turns out it’s the floormats, stupid. Toyota initially dismissed all SUA claims, but now Bloomberg reports they’re recalling floor mats on 3.8m Toyota and Lexus models for causing the gas pedal to stick.
How about a backers for an independent British sportscar marque? Kuwait’s national Investment Dar, which paid $925m for a 51 percent stake in Aston Martin two and a half years ago, has secured a claims freeze from creditors, reports The Guardian. This, nearly seven months after the fund got into trouble and offered its Aston stake up for biding, and our Aston-buyer-rumor-meter is still registering a fat goose egg. $393m of Dar’s stake was financed with a Shariah-compliant loan, and the Dar has been forced to publicly ask its creditors to chill. The finance guys will come to some kind of musawamah, but it’s Aston I’m worried about. McLaren is making a less indulgently heritage-dependent bid to be come the British sportscar firm, while Aston is… languishing on the market, firing workers, being turned down by celebs, rebadging Toyotas and generally cheapening the brand. Where do you go from there?
It’s been a long time since anyone has taken on the many makers of Lotus 7-based sportscars. These kitcar cottage industries have made many updates to their drivetrains over the years, perking up Colin Chapman’s classic design with engines from ranging from Ford Duratecs to Suzuki Hayabusa mills to handbuilt V8s. But these have been incremental changes, keeping the look and underpinnings of the original unchanged. What has yet to be attempted is a fresh-sheet, 21st Century re-imagining of the classic form. Until the krauts behind Roding came along, anyway. Auto Motor und Sport shows off renderings of their all-new lightweight roadster, developed with help from Munich Technical University and set to debut as a production car in 2011. Though it looks 7-like, it’s actually a mid-engine design, which is how we imagine Herr Chapman would create his own all-new 7 (witness the Elise). The engine itself is a 400 hp turbocharged five-pot (of Audi extraction?), which gives the Roding Roadster a power-to-weight ratio of about 6.5 pounds per horsepower, or about the same as an F430. So 2,400 pounds isn’t quite in the same featherweight class as the 7, but the Roding looks like quite the compelling interpretation of a classic roadster.
GM’s grand experiment with Ebay will be over by the end of the month, reports Automotive News [sub]. GM had extended the program once, and was considering continuing it into October. So why didn’t they? Paging GM spokesfolks… we have a cleanup on aisle nine…
The need to roll eBay out nationally isn’t there as it was when we first rolled out the pilot. At the time we had no large, national marketing programs in the system, so that made sense at the time. What we’ve come up with since then are two large, national programs that are already in place.
In other words, failure was not an option… but only because there were no parameters for failure. Gosh that sounds exactly like what Mark LaNeve said when he was asked why the program was being extended despite generating what can only be described as weak sales. Come to think of it, how was the California-only Ebay experiment a substitute for a “large, national marketing program?” More importantly, did GM sell a single vehicle on Ebay?
Any hippie will tell you what Chrysler is finding out as it tries to kick-start its product development to life: karma’s a bitch. In the pre-bailout era, Old ChryCo held the dubious distinction of having the worst supplier relations in Detroit. Now, for some odd reason, suppliers aren’t wanting to shoulder the cost of developing components for new Chrysler vehicles. The Wall Street Journal reports Chrysler isn’t making any production volume promises for future products (an ominous sign in its own right), which means cash-strapped suppliers aren’t rushing in to spend their money developing parts. “Why would we want to tie ourselves to Chrysler when GM and Ford are a known factor?” asks one interior-component supplier. “We’re already financially strapped so we have to be more choosey in where we will spend our money.” Meanwhile, this supplier recalcitrance is making it hard for Chrysler to plan anything.
The big blockbuster, peanut-butter-approach programs like zero-percent financing and employee discounts for everyone have all been done before
GM spokesman John McDonald in a Bloomberg story on the industry-wide drop in incentives and rising transaction prices. What about Truck Month? Surely we can all agree that has been “done before.” And though the Detroit automakers have eased incentives by about 25 percent from their March peak, at $3,278 this August, they’re still higher than the industry-average of $2,474. And the brief respite from incentive-redlining could be ending soon. With inventories depleted by Cash For Clunkers, GM is adding shifts in hopes of increasing production by 20 percent in the fourth quarter. Throwing more cars into a clunker-hangover sales environment could be just the thing to bring incentives and “peanut-butter-approach programs” (can anyone explain that pejorative?) back in a big way. But don’t call it a comeback: they never really left.
Recent Comments