The WSJ reports that the Treasury has turned down an $8-$10 billion request by the OEM Supplier Association for aid to struggling auto supply firms. Department of The Treasury spokesfolks refuse to shed any light on the issue, but OEMSA President Neil De Koker tells the WSJ that PTFOA member Ron Bloom spiked the request because “they felt that unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this sitation, but that at the present time we believe everything is working.” The Journal goes as far as to credit this with decision with signaling “that the Obama administration wants to draw the line on how much taxpayer money it will spend on the U.S. auto industry.” That, or they know that supplier bankruptcies have been part and parcel of the US car biz for years now, and they’re keeping the powder dry for future OEM requests.
Anecdotally, it seems like almost everyone has had one of the “your vehicle warranty is about to expire” robo-calls sometime in the last year or so. Hopefully a civil suit by the FTC will cut back on some of the annoyance. Fox News reports that the scheme, allegedly perpetrated by Christopher Cowart, James and Maureen Dunne, and Kamian Kohlfeld, netted $10 million in fraudulent income. The scheme reportedly violated the Federal Trade Commission Act by misrepresenting or omitting material facts in their sales pitches, and that they violated the Telemarketing Sales Rule by “flatly ignoring” rules that prerecorded calls disclose the identity of the seller “promptly, and in a clear and conspicuous manner.” Read the whole sordid story at Fox to hear how these charming characters are trying to pass blame off on each other. And remember, there’s a special place in hell for people like this.
Unnamed Global Insight analysts are shooting their mouths off to Autocar, peddling their unique brand of humor as inside information on Chrysler-Fiat product plans. The big punchline? A forthcoming Alfa-Romeo 169 will be lovingly assembled in Brampton, Ontario, on a Dodge Charger platform. And what, you might ask, is the asking price for this hypothetical bella macchina? A cool $62 grand. And that’s US dollars, mind you. Which would be a steal of a deal if it looks like a four-door 8C Competizione and rocks the 8C’s Ferrari-sourced engine. But that’s the Bob Lutz of “ifs.” Hard to believe and impossible to ignore. Let’s hope this is all simply a joke that occurred to the Global Insight guys over a weekend of heavy drinking. Otherwise, we’d also have to believe that the Cinquecento (Chryco’s great Italian hope) will peak at 25k units sold per year in 2015. For comparison, BMW’s MINI sold over 54k units last year (and projecting increases), per Automotive News [sub]. Fiat is refusing comment.
Speaking at the Automotive News [sub] Manufacturing Conference, GM global manufacturing and labor relations honcho Gary Cowger (remember him?) had a “by Jove, we’ve got it!” moment that placed him in instant contention for the “Minimum” prefix recently vacated by Chrysler’s Bob Nardelli. Even the hosting publication couldn’t keep the scorn from dripping off its nut graph. “General Motors thinks it has created a method to build small vehicles profitably in North America and calls it interbuildability. Competitors know the concept as standardization.” Can you feel the love (in the air tonight)?
Ousted Tesla founder Martin Eberhart pens a paean to the blogosphere over at Tendo Communications‘ blog, arguing (among other things) that “blogging promotes transparency and builds credibility.”
“For blogging to ring true, it needs to be more than an exercise kept up for the sake of appearance. At Tesla, we began with my blog, which provided direct access to the company’s co-founder and CEO. From there, we expanded into a multi-channel approach until we had separate blogs for marketing/sales, engineering, and notable thought leaders/customers. So whether people had questions about the design of a component, the marketing of the Roadster, or what motivated folks to submit deposits, they could expect a straight answer right from the horse’s mouth.”
Unless your CEO happens to be a horse’s ass. Because if your CEO (Elon Musk) runs around spouting nonsense (via CNET) like “a Prius is not a true hybrid, really,” and “I’d like to take up some of [Detroit’s] manufacturing plants. When the mess gets sorted out I’d like to have a conversation with whoever’s in charge,” blogs and bloggers tend to not be so helpful in the “building credibility” department.
California’s Energy Commission is examining the possibility of a government database and rating system for the fuel efficiency of car and truck tires, reports Modern Tire Dealer. “The foundation of a government administered product rating system is a comprehensive database providing reliable test results and objective information accessible to everyone. A solid analytical basis combined with full disclosure and transparency inspires the confidence required for a rating system to be successful,” says the CEC. “A ranking system driven by the ‘best in class tire’ can ignite a competitive spirit.” Under the CEC proposal, “all tires with an Rolling Resistance Factor (RRF) within 15% of the lowest RRF reported tire for that combined tire size designation and load rating will be rated ‘fuel efficient tire.'”
Ever since Farago’s fateful appearance on Autoline After Hours, I’ve been hooked on the weekly spectacle of Detroit-think. Talk about a fly on the bunker wall. Anyway, the Vines’s and DeLorenzos of this world never tire of talking about how the recent economic collapse was the sole cause of Detroit’s downfall (not true—see TTAC archives up to last year) and how “everyone is hurting right now.” The first assertion seeks to absolve Detroit of its systemic failures, while the second hopes to show that every automaker has sunk to the depths of, say, GM and Chrysler. Of course the second point is more true (for what it’s worth) than the first, but a few news items show that Toyota is succeeding admirably where GM and Chrysler have abjectly failed.
In yesterday’s NYT Magazine [sub] (theme: Infrastructure: it’s more exciting than you think), Transportation Secretary Ray LaHood talks bridges, behavior and Buick Regals in a short interview entitled “The Road Warrior.” And at the risk of reigniting an overly-political discussion, the man’s opinions are indicative of where public policy is headed (regardless of where the debate here at TTAC ends up). It’s easy to take LaHood’s talk of “livable communities,” and praise for light rail and one-car families as proof that he (per George Will’s judgment) is the “secretary of behavior modification.” But it’s important to remember a few key points . . .
If we’ve learned anything from animated cats over the last several decades, it’s that opposites can attract (and that music video directors get all the good drugs). But if there are serious doubts among analysts about the Fiat-Chrysler hookup, imagine what they’re saying about the Saab-Koenigsegg deal. After all, the buying firm sells one-of-a-kind cars for a cool million dollars a pop while the purchased firm can’t sell reworked GM offerings at zero-percent interest. Is there something rotten in the state of Sweden?
Creative Global Investments analyst Sabine Blümel takes on the Fiat-Chrysler marriage at just-auto.com [sub] and she seems unable to find anything positive to say about the deal. “A three-way alliance, also including GM Europe, and even better, also GM Latin America, would have given [Fiat Group] a full-range product portfolio and an extended and strengthened geographic footprint,” says Blümel. Take GM’s Opel or Latin American ops out of the picture, and you’ve got a nasty case of the not-so-muches on your hands. “We see little potential strategic benefit for the Fiat and our concerns regarding the benefits for Fiat from the alliance have, if anything, increased since the alliance plan was first announced,” is the verdict.
This spot (which cribs the Allman Brothers tune that gearheads will recognize as the Top Gear theme) is part of what AdAge describes as the repair chain’s effort to attract customers from closing dealerships. After all, the service department is often where the real money is made at dealerships, and the race to snag shuttered dealerships’ business is on. Automotive News [sub] reports that CarsDirect is even offering free 60-day online listings for any dealership that is going out of business. “We hope this offer helps dealers sell more cars as they work to stay in business and remain fixtures in their communities during the transition,” says CarsDirect VP Ken Potter. Not to mention a little free publicity that comes with the charitable territory. Meanwhile, how are GM and Chrysler shoring up their PR after the nasty dealer shutdown debacle? According to a WaPo analysis, Chrysler is emphasizing product competitivity (huh?) and GM is emphasizing restructuring (why?). So much for putting the best foot forward.
GM has bowed to political pressure, deciding that it won’t use taxpayer money to import compact vehicles from China. Instead, Aveo II (a.k.a. the Chevy Viva) will be built at one of three existing GM plants. (Hello, DOE retooling loans!) Up for the contract are Michigan’s Orion Township, Tennessee’s Spring Hill and Wisconsin’s Janesville assembly plants, and GM’s Troy Clarke is meeting with workers and unions from the three locales in order to determine the best site for Viva production. Oh, did I say workers and unions? I meant congressional delegations. Because, in the post Barney Frank-gate environment, “(GM’s choice is) going to be based on pure business decision,” according to Rep. Gary Peters (D-MI). Would Rep. Sander Levin (D-MI) like to clarify? “We’ve been in the front line of pain and we very much believe that one of the factors that should be taken into account is the impact of other decisions,” Levin tells the DetN. Gosh, that sounds almost . . . political. Hit the jump to find out which congressional delegation is most likely to build the new generation of GM compacts.
Swedish supercar firm Koenigsegg has signed a letter of intent to purchase Saab, reports Reuters. “Final negotiations about details on the deal will go on in the next months.” Meanwhile, imagine the synergies. On the one hand, 1,000 hp+ supercars, on the other the 9-5. High tech plutocrats and befuddled history professors shopping under one roof. How do you say schizophrenia in Swedish? Speaking of crazy, who else is dying to know how much Saab is being purchased for? Or is this one of those Marchionne-style, no-money-down deals?
The NYT Wheels blog has connected the dots between Fiat and Tata, and have concluded that the Nano could eventually be sold through Fiat at US Chrysler dealers. Tata and FIat have already discussed the possibility of selling the Nano in “markets where Fiat has already a strong presence.” Since the Nano is officially coming stateside in 2011, perhaps they decided that “where Chrysler has already a presence” is close enough. The Times mentions that Fiat’s Sergio Marchionne likes to talk about a Fiat budget brand, and suggests that Autobianchi might be a fun monikker to dust off. But why not just call it a Dodge or Chrysler? Since the 500 is going to be the only Fiat headed stateside, Tata’s volkswagen will either suit up in ChryCo colors or lock the dealer net into open competition with Roger Penske’s Wide World Of Cars. “Come on down folks! A car from every continent!” We now return you to the rescue of the American auto industry, already in progress.
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