James Gribbon captures the stars of Lime Rock’s Vintage Festival, including a 1939 Mercedes Grand Prix Car on track for the first time since the 1930s.
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Posts By: Edward Niedermeyer
When Fritz Henderson rosily predicted that GM’s IPO would help pay off taxpayer loans “faster than people think,” our primary diagnosis was delusion. And how could you blame us? GM’s challenged relationship with reality is long and well-documented. Plus, GM executives are currently the only sources of optimism about their IPO. But perhaps there’s something other than PR prerogative underlying GM’s “little engine that could” affirmations. If something does lie beneath, it could be that GM’s Chinese partners are standing by to boost the IPO. TradingMarkets reports that sources inside SAIC say the longtime GM partner (and China’s largest domestic) could inject as much as ten billion yuan (slightly less than $150m) into GM’s IPO. That’s much, much less than GM will need to pay back a meaningful portion of its taxpayer debt, but it’s still a glimmer of hope. Sort of. But Chinese firms are not considering buying into GM because they’re so impressed with GM’s sales or market share. Well, not in the US anyway. This is would be a long-term strategic play, and one that could strike at the heart of GM’s alleged “American” identity. But as TTAC pointed out throughout the bailout proceedings, GM has been wagged by its Chinese tail for a while. After all, why else is Buick still around?
Inside GM: Mystery Of Crap Interiors Explained
GM Deathwatch 2: Dan Neil Takes a Bullet
GM Deathwatch 60: Bankruptcy Is Good For The Soul
Got a favorite that we forgot? Post a link to it in the comments.
TTAC’s founder Robert Farago is leaving the website after ten years of astonishing dedication to the pursuit of the truth about cars. Though he will no longer be leading TTAC, he leaves behind a legacy that will guide and inspire those of us who remain. The work of automotive truth-telling will continue under my stewardship, and I am grateful to Robert for giving me the opportunity to take on the challenge of a lifetime. Though no single person will be able to replace his wit, insight and work ethic, TTAC will carry on with the continued support of our contributors, commentators and readers.
Any transition is fraught with challenges, but we are very excited about the coming weeks and months. We will continue to bring the very best news, commentary, analysis and humor to this site, and we know that our Best and Brightest (old and new) will continue to add their voices to the discussion. Your insights and opinions have always been one of TTAC’s greatest strengths, and we appreciate them now more than ever.
Climate change protesters bring their best argument to Jeremy Clarkson’s front drive [via the BBC].
We don’t have any numbers yet on GM’s 60 day money-back guarantee, but according to GM dealers speaking to Automotive News [sub] it’s not generating a lot of interest. “If [customers] like the car, if they test drive the car, most of the people would rather have a car to keep,” explains one dealer. Which makes a certain amount of sense, and which is why dealers insist that the number of buyers taking GM up on the offer doesn’t matter. “It’s more important to talk about the money-back guarantee. It conveys confidence in the vehicles,” says another dealer. “It’s not about the deal, but rather it’s about the world-class products.” That sounds good in principle, but the reality is that it actually is all about the deal. Again. Still.
“It’s our company’s long-term target, to be China’s No. 1 automaker by 2015 and to be the world’s leading car maker by 2025,” Build Your Dream’s marketing reps tell the AP. Ready for a reality check? BYD sold only 400k units last year, almost all of them in China. In fact, just a few years ago BYD wasn’t an automaker at all, but a battery supplier to laptop and cell phone companies. Several years and a big investment from Warren Buffet later, BYD is getting all kinds of cocky.
Porsche’s current Boxster goes bye-bye in 2012, and to keep things moving Zuffenhausen appears to be bringing at least two special editions to market. First up, Auto Motor und Sport‘s Erlkönig spies have caught a Boxster-based Speedster mule testing in Germany. Speedsters are an integral component of Porsche’s rich heritage, first as a 356 variant, and later as limited edition 911s. This latest version should hit the streets in 2010 with a 303 hp version of the 3.4 liter Boxster flat six, a shortened windscreen and other Speedster visual cues (like the weird camouflaged humpback shown here) . But the real news comes from car Magazine, which claims to have caught sight of a Boxster R.
Automotive News [sub] reports that the Mazda2 (Demio in Japan) has been approved for a Fall 2010 launch in the US market. Mazda is clearly targeting the Honda Fit’s recent success, with only the 5-door, 1.5 liter version approved for the US. The stateside rollout will also coincide with a mid-cycle refresh, which means the interior will be improved over the current European version. Unfortunately, this also means the 2 will be saddled with Mazda’s new Pikachu-on-SSRIs grin. Still, the new baby Mazda should take a little oxygen out of Ford’s Fiesta launch next year, as the two vehicles were developed simultaneously on the same platform.
I’m optimistic we can pay off the loans faster than people think. Payment is due in 2015. We want to do it much faster than that.
GM CEO Fritz Henderson breaks our incredulity meter at the Frankfurt Auto Show. And how does Fritz propose pulling this coup off? “Creating value for our shares is the best way the taxpayer will be repaid,” he explains. In other words, Henderson expects GM’s Summer 2010 IPO to reflect the $68B market cap valuation it needs to pay back taxpayer loans. Meanwhile, GM’s Chairman reportedly puts the odds of success on any timeline at 60-40. Paging Optimist Prime . . .
The Freep has dubbed Chevy’s Next Big Small Thing a “hit” on the grounds that it’s big in Australia. The only problem? It’s not really selling all that well. Towards the bottom of its write-up, the Freep reveals that GM’s Holden division sold 4,826 of the US-bound Cruze in the last three months. Center for Automotive Research president David Cole reckons those numbers “kind of give you a clue as to what the potential could be” when the Cruze arrives stateside. If that’s true, the Cruze is a loser. Not only has Toyota sold 7,550 Cruze-class Corollas in the last two months, the Mazda3 and Hyundai i30 are also the segment’s fastest growers.
Mazda’s latest concept only weighs 2,194 pounds, and it’s got a grin to prove it.
The Detroit News is reporting that Ford is in a legal battle to control key patents related to its Sync hands-free information system. John Berry, who was let go by Ford in July, developed Sync’s cell phone connectivity system, which allows features like 911 Assist, Vehicle Health Reports and Traffic, and Directions and Information Services. Ford wants Berry to sign off on the company’s application for patents related to these functions, but Berry won’t play ball. He says he’s “happy to license” the technology to Ford, but other automakers are rumored to be sniffing around as well. There’s plenty at stake in this squabble: if Ford loses these Sync capabilities, it loses one of its primary advantages in the marketplace. Not to mention its “anti-distracted-driving” leadership.
Just be prepared to pay for them. Audi USA honcho Johan De Nysschen explains to Automotive News [sub] that “there certainly is a price premium [for diesel offerings], which we are partially recovering but not totally.” Audi CEO Rupert Stadler adds, “I think the problem is that we don’t really have an honest discussion.” So here it is, America: Audi’s going out on a limb so that you can enjoy some of the finest oil-burners Europe has to offer. Now it’s up to us to buy tons of them at exorbitant prices so that Audi doesn’t look stupid for taking the risk. That’s just how these things work, America. Now go grab those checkbooks and start learning about the difference between low-sulfur diesel and ultra-low-sulfur diesel. And don’t forget to refill that urea tank!
And that, friends, is why the Tesla weighs almost 800 pounds more than an Elise.
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