It’s not difficult to understand why the UAW has never contemplated agreeing to a wage rate tied to the profitability of its employer firms: simply put, it’s been a long time since big profits were the norm among the union-represented Detroit automakers. But now that Motown is back in the black and handing out record profit-sharing checks, it looks like the UAW could finally tie its own fate to that of the automakers… on certain conditions. UAW boss Bob King tells The WSJ [sub]
It would be an advantage if you can guarantee to the [Detroit] companies certain things on fixed costs so that they would remain competitive. When you’re successful, that’s good. But if you’re sharing more of the risk, you need to have more of the upside
OK, so it’s a somewhat facetious headline: as an auto manufacturer, Saab either builds and sells cars or it disappears. But in the aftermath of Saab CEO Victor Muller’s pledge that “We will definitely ensure that this [production stoppage] will not happen again,” Saab’s most recent shutdown sent shockwaves of concern through the Saab community. After all, Saab’s official line is that “we knew this would happen,” a position that’s more than a little at odds with Muller’s now-broken promise. And though the just-signed Youngman deal could mean more cash with which to get production at Trolhättan back up and running, there’s a bigger question that remains unanswered: why restart production at all?
Since Nissan’s PR and communication folks are probably having a busy morning anyway, we thought we’d bring this video to their attention. According to this apparently quite tech-savvy Leaf owner, the Leaf’s CarWings system will automatically send your location data to any third-party RSS feed you sign up for. As he puts it in the video
“There’s a lot of personal data there. I’m not sure if you really want Fox News to know exactly where you’re at, how fast you’re driving, that kind of thing… when you read those RSS feeds in your car, you might want to think twice about hitting that button”
Why would signing up for an RSS feed require that constantly-updated locational data be sent to the RSS provider? The video’s maker assumes the data is for “CarWings internal use” and yet he shows that it gets sent to third parties. We know GM monitors Chevy Volt user data anonymously through Onstar, but one assumes that this kind of data is fairly well protected from third parties. In the case of the Leaf, that may not be the case. We’d sure like to know if this is true, and why…
[UPDATE: Nissan tells us: “Owners have to opt in or agree to share their data every time they sign in. If they don’t, then they pass on the benefit as well. They will however, lose any remote control or data logging capability but the choice is in the hand of the driver every time.”]
Bloomberg’s running a lede that’s sure to ruffle a few feathers at Nissan’s communication and customer service organizations this morning: “Nissan Motor Co. is aggravating the customers it needs most.” How so? According to the report
Nissan, which wants to become the top seller of electric cars, repeatedly delayed deliveries to some U.S. buyers who reserved the first 20,000 Leaf plug-in hatchbacks, according to interviews with customers. They said Nissan unexpectedly dropped some from the waiting list temporarily, asking that they reapply if they couldn’t prove they’d arranged installation of home- charging units that can cost more than $2,000.
Nissan has long admitted that the Leaf rollout would be a challenge, and the recent tsunami-related chaos in Japan hasn’t helped. But Bloomberg doesn’t quantify how many customers have been dropped due to their lack of charging system installation, other than to report that 45% of the 20k customers who reserved Leafs by last September have continued the ordering process. And it turns out that the delays aren’t irritating so much because of Nissan’s intransigence or lack of transparency, but because certain buyers stand to lose their California tax credit before their Leaf arrives.
Just a week after GM CEO Dan Akerson slammed Ford’s Lincoln revival, Ford is asking its Lincoln dealers to put big money down on the brand’s future. Automotive News [sub] reports
A group of 120 Lincoln dealers had been invited to the meeting to hear Ford’s plans to rebuild its remaining luxury brand, say dealers who attended.
Ford expects stand-alone Lincoln dealers to spend an average of $1 million on renovations, dealers say. Owners of Ford-Lincoln duals are expected to spend about $1.9 million to remodel, dealers who went to the meeting say.
If dealers do not invest in renovations, Ford says it will seek to take back their franchises in exchange for compensation. The investment requirement applies only to urban dealers — for now.
And what do the dealers get in return for their hefty outlays? Hot new Lincoln product, or, in the words of a Lincoln rep “seven new or significantly refreshed vehicles coming out in the next three years.” Which means that if you want to get aboard the Lincoln express (destination:viability), you’ll have to get your store to Lincoln standards by the end of 2013, when a redesigned MKZ and a Focus-based Lincoln compact hit dealers.
I missed the latest twist in Chrysler’s California dealer drama when I was traveling in Iowa last week, but because it’s such a significant story (and because Ford recently proved how expensive dealer drama can be), we’ll commit the cardinal rule of blogging and take a look at some week-old “news.” California’s DMV won’t report the findings of its investigation into Chrysler’s allegedly non-compliant “company store” until September 29, but the Detroit News has reported that “about 75 percent” of these dealer complaint cases end in settlement and that
Chrysler Group LLC may be on the verge of selling its company-owned flagship dealership in Los Angeles to a private retailer, which could appease angry franchise dealers in California.
So much for ChryCo leaving the state in an angry huff. In fact, angry is about the last thing CEO Sergio Marchionne sounds about the whole thing…
NHTSA Administrator David Strickland warned automakers last week that he had no interest in making it easier to use systems like Twitter and Facebook, indicating that integration of these systems could face future regulation. But while Strickland was playing Bad Cop, his boss (and the traditional bad cop in these routines) Ray LaHood was busy playing Good Cop, telling the AP [via The WaPo] that
We are data-based. Our credibility comes from having good data. If we have good data, then we can make a case. Is messing with your GPS a cognitive distraction? Is changing the channel on the radio a cognitive distraction? We’re looking at that now.
You can see the entire war plan for the DOT’s assault on distraction in PDF here, but don’t rush. You have plenty of time. Voluntary guidelines (yes, voluntary) for visual-manual interfaces won’t come out until Q3 of this year, portable devices in Q3 2013 and voice-activated systems in Q1 2014. Meanwhile, the government won’t even have the data on which to regulate hands-free systems until Q1 2012. So, even though most research shows little change in distraction between a hands-free and handheld device, the industry should be able to sell a grip of hands-free and voice-activated systems before the government is even sure of how distracting they are.
California regulators want zero-emission vehicles—those that don’t run on petroleum—to comprise up to 5.5% of new-car sales in the state, or roughly 81,300, in 2018. The target would rise annually to 14%, or more than 227,600, by 2025…
Tom Cackette, chief deputy executive officer of the California Air Resources Board, says his agency’s goal is to test whether electric cars can become mainstream vehicles, or wind up serving a “niche” market. Mr. Cackette said the state is investing in charging stations and other infrastructure, and he pointed to the sales of new plug-ins on the market to show that there’s a demand for the vehicles. He said he believes the California targets are feasible.
“That is a question we’ll only find out by trying,” he said. “I think [car companies] are making a pretty big investment in these vehicles, and they wouldn’t be doing that if they didn’t think there was a market there.”
Industry lobby groups are pushing California to roll the ZEV mandate into the forthcoming national CAFE standard. Small automakers like Mazda complain that placing a California ZEV mandate on top of national emissions standards would create a “costly burden…in light of the uncertain marketplace and infrastructure for electric vehicles.” And since CARB is leading the federal government by the ear towards a national standard anyway, it could simply push for a higher CAFE rate, which would at least allow firms the flexibility to comply on their own terms. Adding a major ZEV mandate won’t fundamentally change the national standard, but it absolutely will force automakers to spend huge amounts of money to develop a kind of vehicle that has major shortcomings, is only as green as local electricity generation, and has yet to prove itself with consumers. Whatever you think of emissions standards increases, it should be clear that consumers should determine what mix of technologies can best serve their needs while lowering fuel consumption and pollution.
Is Cadillac a European-grade maker of world-class, dynamically-focused and fashion-forward driving machines, or the small-town America symbol symbol of petty-bourgeois success, with an emphasis on the old-school American values of wide seats, big power, and a cosseting ride? The brand’s product line displays this identity crisis (compare CTS and DTS) as much as the dealer network does.
The answer: yes. GM is keeping a lot of small-time Cadillac dealers on the roster, and is asking them to upgrade their facilities to a new design created by San Francisco-based architecture firm Gensler. GM talks up the new look’s “contemporary architecture and premium materials” in its presser, but it too seems to try to bridge the yawning gap between a fashion-forward, Euro-inspired look and a more traditional, conservative look aimed at a more “traditional” customer (see image above?). But does it work? Does the new look communicate “Cadillac values” to you, or does it strike you (as it does me) as a bit of a compromise?
An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…
A pair of studies, by MIT and the International Energy Agency [via GreenCarCongress] take a look at what is rapidly becoming a hot topic in the world of alt-energy transportation policy: the use of natural gas to power cars and trucks. If you’re intrigued by the car industry’s “forgotten” fuel source (and with Honda Civic GX models going on sale in 50 states and a possible $7,500 natural gas car tax credit going before congress this summer, you probably should be), hit the jump for some comprehensive information about the future of natural gas-powered transportation.
In accordance with the procedures in 49 CFR Part 555, Tesla Motors, Inc., has petitioned the agency for renewal of a temporary exemption from certain advanced air bag requirements of FMVSS No. 208. The basis for the application is that the petitioner avers that compliance would cause it substantial economic hardship and that it has tried in good faith to comply with the standard…
Not so bad, right? As a small manufacturer, Tesla simply has to prove that it still isn’t in the financial shape to put advanced airbags in its money-losing Roadster… after all, nothing has fundamentally changed since the initial waiver was granted. But it turns out that NHTSA isn’t going to give out these waivers like candy anymore…
The Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) loan program has come under fire from the Government Accountability Office before, and was the subject of a patronage investigation by the Center for Public Integrity and ABC News. And the bad news keeps piling up, with yet another nasty GAO report [PDF] taking the program to task for running up higher-than-expected lending costs due to “industry risks” and for failing to provide required technical oversight.
GM has announced details for the 2012 Model Year Chevrolet Volt, and for the second year of production The General is already addressing the Volt’s most controversial feature: its high price. The base MSRP for the Volt will drop from $41,000 to $39,995 for the 2012 year of production, an accomplishment that GM explains
is possible in part because of a wider range of options and configurations that come with the expansion of Volt production for sale nationally.
Wider range of options and configurations? According to the Detroit News, this means navigation and a Bose speakers are no longer standard features on the base-price Volt, but that seven options configurations are now available compared to the 2011’s three. And, on the other end of the pricing equation, the Volt’s fully-loaded price has increased to $46,265 from the $44,278 that Chevy’s configurator tops out at for a loaded 2011. Keyless access with passive locking is the only new standard feature for 2012. With more choices and a slightly lower price of entry, GM is clearly trying to move the Volt away from the “novelty” image that CEO Dan Akerson referenced earlier this week, as it ramps up Volt production for 60,000 units next year. But until the Volt’s price starts dropping without simply offering a less-contented version, the road to mass sales will continue to be a tough one.
Reuters reports that White House has approved a label for E15 ethanol blends, which warn motorists not to use the higher blend if their vehicle was built before the 2007 model-year. What Reuters won’t show you is the final label design that was approved… was it the EPA’s proposed design (above), or one of the ethanol lobby’s proposed alternatives (see gallery below). Clearly there’s a bit of a difference between the two, and the EPA was under quite a bit of pressure to not go with the orange-and-red “CAUTION!” version. In documentation from hearings on the E15 labeling issue [PDF], you can read executives and lobbyists expounding at length about the fact that ethanol is good for America, and that labeling shouldn’t discourage the use of E15. Which it doesn’t…. in 2007 and later vehicles. And if you check the EPA’s docket on the issue, you’ll find plenty of good reasons for preventing “misfueling”. Luckily few gas station owners are likely to invest in E15 pumps anyway, so you may never actually see this label in the wild.
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