Posts By: Edward Niedermeyer
Fox News reports that GM has confirmed Roger Penske’s decision to pull Saturn from the Canadian market. Saturn’s 46 remaining Canadian dealers sold 18,726 vehicles last year. According to GM, “a business case could not be made” to keep Saturn operating in Canada. Sorry Canucks, but there will be no Renault/Samsung loving for you.
The “Toyota is the new GM” meme is a provocative one. After all, prior to GM’s decades-long unraveling its dominance of the industry put Toyota’s tentative top-dog status to shame. GM’s decline proved once and for all that no make, model or brand can coast on being “number one” alone. Which is why I want to believe that Lexus is shaping up to be the new Buick, as Mark Phelan insists at the Freep.
Chrysler has removed Hyundai and Mitusbishi logos from the joint Global Engine Manufacturing Alliance plant in Dundee, Michigan, reports the Freep. Plant employees anonymously confirm ChryCo’s executive desire to be rid of the alliance, and GEMA reps tell Automotive News [sub] that “there are discussions about that going on at the highest levels.” The Dundee plant manufactures 1.8-, 2.0- and 2.4-liter Hyundai-designed engines for Chrysler’s small cars, and internationally the alliance builds engines for over twenty models. The obvious motivation is the same as all of Chrysler’s recent announcements, namely moving into a tighter orbit around planet Fiat. Chrysler is proving to be more useful to Fiat as a tool to screw with Fiat’s international competitors than as a way of making inroads on the American market. Meanwhile, Fiat’s actual plan for Chrysler in the US seems to be limited to creating a client for Fiat’s engines and platforms. So much so that Fiat CEO Sergio Marchionne is reportedly considering replacing Cummins diesel engines with Fiat oil burners in upcoming Ram 1500 models.
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As Mahindra inches closer to a US market launch, we’re hearing that the Indian firm is looking for US production capacity to avoid an import penalty. Automotive News [sub] reports that Mahindra’s pickup will go on sale “in phases” starting in early 2010, while the Scorpio SUV (shown here) will roll out about a year later. As for US production, Mahindra’s Executivev VP For International Operations Previn Shah says that he’s “exploring various options,” but that purchasing an existing factory makes the most sense. Do we smell a white knight for NUMMI?
Having invested a considerable amount in its Taurus full-size car, Ford will almost certainly be discontinuing its Crown Victoria Interceptor (police model) in 2011. The Detroit News reports that Ford made the announcement to departments in June, when it invited officers to Dearborn to discuss Ford’s police fleet future. After breaking the news that the old warhorse would be put out to pasture, Ford gave officers the keys to its new Taurus, inviting them to drive the Crown Vic’s likely replacement. “We have no intention of walking away from our share of that market,” says Ford’s Jim Farley.
Nola.com reports that New Orleans’ public defenders office has yet to see any revenue from red light cameras, and will have to shut down by March. Chief Public Defender Derwyn Bunton made the announcement, saying the city’s ability to provide 6th amendment-mandated public defense options would be shut down between March and July of 2010. Moving the public defender’s office to a red light camera revenue-based funding model was a relatively recent decision by Mayor Ray Nagin. The public defender’s office represents over 88 percent of New Orleans’ 220,000 criminal and traffic court defendants each year.
ChryCo finally acknowledges that denying outstanding liability claims while taking taxpayer money was kind of a dick move.
In a letter sent today to Members of Congress, Chrysler Group LLC
announced that the company will accept product liability claims on vehicles
manufactured by Chrysler LLC (now OldCarco LLC) before June 10, 2009, and
involved in accidents on or after that date. On June 10, 2009, Chrysler
Group purchased substantially all of the assets of Old Carco.
The Wall Street Journal shows TTAC some love in a piece titled “Americans Renew Their Love For Cars—Online.” Acerbic? Us? We’ve changed, we swear!
Yes, that is what I’d truly like to be. For if I were a big GM supplier, they’d pass the big old savings on to me. And if that doesn’t make you want to break into song, you’ve never dealt with a Mr. Bo Andersson. Yes, now that Andersson has taken his fight to make the world a less cheerful place to Russia (where such causes are far better rewarded), GM’s supplier relations are going swimmingly. Andersson’s replacement, Bob Socia, has told GM’s suppliers that under his benevolent reign, GM purchasing will split any future cost savings on parts even-steven with the supplier. Of course, it’s up to the supplier to come up with the cost savings, but c’mon. Really. Just, c’mon. “We think this decision will help generate enthusiasm in the supply base for doing business with the new GM,” say GM spokesfolks. And guess what? They’re right! [via Automotive News [sub]]
State-owned stakes in the Russian auto firm AvtoVAZ, truck builder Kamaz and engine firm Avtodizel are being merged to create the first national auto conglomerate of the Carpocalypse. AvtoVAZ chairman Boris Alyoshin is stepping down, and will be replaced when the merger is complete. A new firm, created out of Russian Technologies, has been formed as a holding company for the government stakes which amount to 37.8% of Kamaz, 25% of AvotVAZ and 30% of Avtodizel. Renault owns another 25 percent stake in AvtoVAZ. But underlying weakness in the merging firms and the complication of government-owned conglomerate governance raise concerns for the latter-day Leyland. “It is hard to see any synergy from the unification of the passenger car producer and the heavy truck maker,” Alfa Bank analyst Georgy Ivanin tells AFP. “The decision making process in both companies may slow as the management structure gets more complicated.” Not to mention the “been there done that” factor.
Toyota’s board has voted to end production at its NUMMI plant starting in March 2010, reports the AP [via sfgate]. The factory in Fremont, California, was a joint venture between Toyota and GM, but its future was first cast into doubt when GM announced it was withdrawing after discontinuing the Pontiac Vibe built there. The state of California discussed incentives to keep Toyota (and its 4,600 jobs) at the plant, but Toyota’s 1 million unit global capacity reduction was the higher priority. It’s possible that state incentives could lure other OEMs to the factory, but local incentive-grubber Tesla has already declined pursuit of NUMMI on the grounds that it was more factory than the start-up could handle.
The combination of bikinis and purported eco-friendliness is like catnip in Southern California, and Angry Green Girl knows it. Still, is a hybrid-only carwash “greener” than just going through the auto-wash? Maybe the minimal amounts of clothing help bring down the overall carbon footprint.












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