We noted a few months back that $6.25B worth of Delphi pensions were being dumped on the Pension Benefit Guarantee Corporation, in what we termed part of GM’s “stealth bailout.” The Detroit News reports that bills have been introduced in the Senate and House now that would appropriate $3B worth of stimulus funds towards paying those obligations. “There was a promise made that health benefits would be available for Delphi employees when they entered their golden years and we are going to leave no stone unturned in our effort to see that they get what they’ve earned,” says Rep. Tim Ryan (D-OH), who introduced the House version of the bill.
Sadly, footage of an SLS mule skittering and gargling around the Nürburgring has been taken down, but back in those early tests the AMG gullwing really did sound like “death on a stick,” as Robert put it. Now, in final production form, the SLS sounds a lot more . . . refined. Which makes sense for a Merc, but part of us still wishes that some of the mule’s TVR-esque hairyness were still evident. A small taste of that early-mule insanity can be found here at about 55 seconds in.
UPI reports on recently-released documents which detail the extent to which states went to secure GM’s recent compact car manufacturing contract. Wisconsin had committed “$213.14 million in concessions from United Auto Workers Local 95, $100 million in Enterprise Zone tax credits and $24 million in discounts from health insurers and providers,” according to the report. Another $100M was added to the incentive package after Wisconsin officials learned that it was falling behind in the bidding, bringing the total package to $409M. Which wasn’t even close to enough to beat out Michigan’s winning bid, which totaled $1B.
Distracted driving is fast becoming the bête noir du jour for hysterical “safety-first” types. Following the standard blueprint for these kinds of panics, the New York Times got pulses racing first with a series of articles aimed at making a general problem (most drivers suck) seem like a specific, solvable “crisis.” Then Transportation Secretary Ray LaHood called for a “distracted driving summit,” and the campaign to get America to stop texting and start paying attention to the damn road before you kill us all was well underway. But these things never really take off until a major corporation smells a chance to make money, and signs on. Which Ford has apparently now done, by officially endorsing HR 3535 at its “The Ford Story” blog. But why?
The Treasury has placed new rules on TARP recipients like Chrysler and GM requiring the bailed-out firms to disclose policies on “luxury expenditures” after several banks were found to be spending exorbitant amounts of money on aircraft and offices. The Detroit News reports that firms have until Monday to disclose their spending policies, except for GM which has been granted an undisclosed extension to the policy due to the relative lateness of its emergence from bankruptcy protection. And the decision to take private jets to a bailout request keeps biting GM and Chrysler from beyond the news cycle.
Bugatti’s newest concept, the Galibier, has hit the autoblogopshere, revealing a long, low, shapely . . . hatchback. Luckily it’s a really extra special opulent hatchback with eight exhaust pipes and a name jacked from an Alpine pass (and the Bugatti history books). Otherwise one might be tempted to call it rude things . . . like the grandchild of a Bentley Continental, the Chrysler 200C concept, a Rhodesian Ridgeback and a church organ. Start saving those millions!
GM’s “May The Best Car Win” campaign is beginning to take shape, and it’s turning out to be every bit as gimmicky as you might guess. In a conference call with the motoring press, GM’s Bob Lutz challenged all comers to beat him around the Mazda Raceway at Laguna Seca. Lutz will be driving a Cadillac CTS-V, and he promises to beat any production four-door sedan as a way of proving that Cadillac does build world-beating cars. Jalopnik‘s Wes Siler has taken up the challenge, and will be facing Lutz in a Mercedes C63 AMG. So we’re curious: what unmodified sports sedan would you mount up in to send Lutz back to the RenCen with his tail between his legs? Myself? I believe water skis are the traditional conveyance for shark-jumping competitions. Meanwhile, TTAC would like to take this opportunity to pit our own Jack Baruth in this competition for the ages. Do we have a deal, GM?
But only because dealers will be forced to give up a half a percent of their profit margin, reportsAutomotive News [sub]. Good thing Mark LaNeve says volume will be higher. Otherwise that might suck for the dealers. As Bob Lutz puts it, “We’re putting our money down that if people buy one of our vehicles and don’t absolutely love it, we’ll take it back. Three or four years ago, this would have been a huge risk. We are now so confident of our vehicles, we can afford to take this risk.” Actually, Bob, it sounds like you’re putting the dealers’ money down. But, hey, at least that way it’s not taxpayer money! Who’s feeling positive?
Yes, well, Car And Driver‘s Dave Vanderwerp kind of stole our headline for his takedown of EPA testing practices. Still, he earns it by stripping away any illusions you may have harbored about the rigor of the EPA testing process. Did you know that the EPA only tests 15 percent of all new vehicle models, taking automakers at their word for the other 85 percent? Surely you were aware that the EPA once had to convert a Bugatti Veyron to two-wheel drive for testing because it didn’t have four-wheel dynos at the time? No? Hell, the EPA test can’t even tell whether the BMW M5’s +100hp “M” button is on or off. No wonder the Volt is going to get 2,347 mpg! Read the whole thing over at MSN Autos.
Participating in GM’s global technology development and purchasing organizations secures important economies of scale for Opel/Vauxhall and other GM brands. For example, vehicles that represent new propulsion technologies, such as the Ampera extended-range electric vehicle, can only be brought to market in a joint effort.
“GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,” said John Smith, GM Group Vice President Business Development. “All parties will work hard to close the deal as soon as possible,” he added.
GM straps on the rose-colored blinders and dangles the Volt in its presser on today’s agreement to sell Opel to Magna and Sberbank. Ironic counterpoint after the jump.
To put it simply, Honda’s Insight sold 4,226 units last month while the Prius sold 18,886. Through August, Toyota sold 93,810 Priora while the Insight motivated only 14,045 buyers. Honda has tacitly admitted that the Insight is not up to snuff. But upgrades could take years. Honda could just as easily have the long-rumored Fit Hybrid ready in the same time. Would it be a better Prius fighter? Or will Honda Hybrids be stuck wandering the desert until, say, the CR-Z arrives?
GM’s new ad campaign, featuring Chairman Ed Whitacre, centers around the catchphrase “may the best car win.” According to the New York Times, the lure to new buyers will be a 60-day refund on any new GM product. In short, the perfect way to remind shoppers that buyer’s remorse comes standard on most GM vehicles. But that’s not even the craziest part of GM’s latest bid for consideration. To find out more, let’s just surf over to maythebestcarwin.com . . .
Well, not yet anyway. But you do have to become a “fan” before you’re even allowed to see the official ZDX page. Does this mean crossover weirdness is acceptable from a luxury brand? Or is there something we’re missing that makes the ZDX appealing but the Accord Crosstour a sin against nature?
A little elevator music and voiceover by a heavily sedated airport announcer tell you everything you need to know about Toyota’s bid to bring excitement to its staid brand. Er, as long as you don’t fall asleep first.
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