It took a bit of research to fully parse the California New Car Dealer Association’s complaint against Chrysler and its partially company-owned store in Los Angeles, and our finding is that the CNCDA is actually gunning for Chrysler with gusto. But, argued some of the B&B, surely Chrysler doesn’t want to be kicked out of California? Surely Chrysler’s California dealers don’t want to see their manufacturer banned from selling vehicles in the state? Well, it turns out we were missing a little context that seems to indicate why Chrysler’s California dealers are willing to go to war over a single dealership: Chrysler is overhauling its California retail presence with the help of Wall Street hedge funds. Having used the bailout to wipe out 789 dealerships across the country, Chrysler appears to be working around franchise law to exert more control over its retail network in the Golden State. No wonder then that California’s dealers are standing together to attack Motor Village, the most egregious example of Chrysler’s new retail model. And there’s no knowing where the conflict could end…
Posts By: Edward Niedermeyer
Fisker’s powertrain partner Quantum Fuel System Technologies has partnered with the US Army’s Tank Automotive Research, Development and Engineering Center (TARDEC) to produce a diesel-electric, series hybrid Clandestine Extended Range Vehicle (CERV). GreenCarCongress reports
the prototype CERV is equipped with a 1.4-liter diesel to drive the genset, and is designed for quick-paced mobility operations such as reconnaissance, surveillance and target designation. CERV pairs Quantum’s advanced all-wheel-drive diesel hybrid-electric powertrain with a light-weight chassis to produce a torque rating that exceeds 5,000 lb-ft (6,780 N·m) [Ed: after gear reduction].
The unit can maintain speeds of 80 mph (129 km/h) and climb 60 percent grades while reducing fuel consumption by up to 25% compared with conventional vehicles of comparable size.
As Ronnie Schreiber’s piece on the Arsenal of Democracy shows, military developments can have a profound affect on the private transportation market. As the military pursues efficiency for strategic and tactical purposes, let’s hope more advanced drivetrains trickle down into the civilian realm.
About two months ago, we heard that Chrysler’s “prototype” Motor Village dealership in the Los Angeles area had been hit with a complaint [PDF] from the California New Car Dealer’s association, arguing that it violated state laws against manufacturer-owned dealerships. The store, a test bed for what Chrysler terms “new retail concepts,” is in fact a partnership between Chrysler and LaBrea ChryslerJeep, making it appear to fit a legal loophole allowing OEM partnerships in retail ventures. But the CNCDA argues that Chrysler is undercharging for rent on the dealership building which it owns, and according to Automotive News [sub], the California Department of Motor Vehicle’s New Motor Vehicle Board just voted unanimously to open a formal investigation into the situation. And the stakes couldn’t be much higher, as AN reports:
If the DMV finds that Chrysler violated state law, the automaker could have its business license in California suspended or revoked.
Ruh-Roh!
Three times now, GM has planned to build a plug-in hybrid (PHEV) version of its Theta-platform crossovers, once with the Saturn Vue, once with the Buick “Vuick” and now, according to Reuters
General Motors Co has canceled plans to develop a plug-in hybrid vehicle based on the current Cadillac SRX crossover platform, deciding the project was not financially viable, three people with direct knowledge of the project said.
While two of the sources said the plans could still be revived on a future platform, they and two others familiar with the matter said engineers involved had been reassigned to other projects.
Back in early days of the program, the plan was to bring a Vue PHEV to market as soon as 2010, but the death of Saturn (and other difficult-to-identify issues) forced a change of plans. The Buick version was literally laughed out of consideration in what was the first-ever Twitter-based future product killing. But given that hand-picked members of the public were driving mules nearly two years ago (see video), we figured enough development had been done that GM essentially had no choice but bring the troubled Theta PHEV to market. Today’s cancellation of the SRX version is therefore just a little confusing…
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When private, for-profit firms ask for public money, taxpayers tend to take a more personal interest in their goings-on. After all, they are, in a very real sense, still the partial owners of these companies, and they put up the cash to provide a second chance to companies that offer no similar reciprocation when consumers default on their own car loans. And though US taxpayers have earned the right to feel a sense of ownership towards GM and Chrysler, there are several groups of Americans who have shouldered a disproportionate amount of the burden of the bailout. First, the GM and Chrysler employees who were laid off despite the bailout must doubtless wonder why they had to both fund the bailout and lose their jobs (remember, cutting jobs was the most “positive” aspect of the bailout, according to the industry). Similarly, GM and Chrysler’s bondholders paid twice to “save” their failed investments, once with their tax money and again by taking a hefty cramdown. And finally, a third group paid far more than anyone else, not only funding the bailout with with their taxes, but also sacrificing compensation for injuries caused by GM and Chrysler vehicles. The WSJ [sub] reports
Among the creditors who suffered most, car-accident victims represent a distinct mold. Unlike banks and bondholders, this group didn’t choose to extend credit to the auto makers. As consumers, they became creditors only after suffering injuries in vehicles they purchased.
“This was not a normal case. The government was deciding who was going to be taken care of and who was not,” said David Skeel, a University of Pennsylvania law school professor and bankruptcy expert who has testified before Congress on the auto bailouts. Even if the auto makers had legal rights to leave behind product-liability claims, “there is a deep unfairness,” he said. “It would have been easy enough to set something aside for them.”
Given the celebratory, even triumphalist, rhetoric that’s being applied to the auto bailout after the fact, it’s important to remember that many suffered in order to give GM and Chrysler a second chance. Even those who are proud of the bailout’s accomplishment should acknowledge that the jobs saved carried a price that goes beyond any final accounting of anonymous billions lost from the federal budget. The pro-bailout crowd should take more care to recognize and heal the deep wounds that fester beneath their “Mission Accomplished” rhetoric… if only to prevent a repeat of these tragic decisions in the event of future industry rescues.
After the zusammenhang of the bailout era, green car ads have juiced up the competitive battles in automotive marketing, with Chevy attacking “range anxiety,” Hyundai wrangling the asterisks and now, Nissan busting the Volt’s chops for enjoying the odd sip of gasoline. After leading off its Leaf marketing effort with a saccharine ad featuring a polar bear driven by global warming from his arctic home, Nissan is getting back on track by bashing its highest-profile competitor… and given that the EV market is still dependent on early-adopters in search of EV purity, the attack is a fairly shrewd one. Eventually the market will be less hung up on the novelty of pure-electric cars and will look at overall efficiency and capability. For the time being, however, Nissan’s got to make the most of its unmatched gamble on the pure electric car. Watch the ad after the jump
With €30m from PangDa and €30m from Gemini Investments, Saab restarted production today at its Trollhättan factory. According to SaabsUnited, the line will run at 80% speed today and Monday, before moving to 100% (over 200 cars per day) by the middle of next week. Speaking at a press conference, CEO Victor Muller reflected:
It’s been an interesting lesson. A company like Saab, that lives in a glass house, should never be caught in a situation where there is not enough cash to withstand the storm as the one we have seen now. What happened seemed like a very insignificant situation became a very significant situation, and next thing you know, you are losing six weeks of production… it was very, very tough and we’ve had some very adverse circumstances that we’ve had to live with, but we got out of it. I think that if you got through 2009-2010 as Saab has been, anything else is relatively easy. We will definitely ensure that this will not happen again. This means that we will be on a quest to ensure that we have sufficient funds at all times to overcome adveersities like this because we can’t afford to have another production stoppage with all the relating downsides, such as disappointed customers, upset suppliers and media attention… that is definitely not in our interests.
If it were up to the candidates for president on the Republican side, we would be driving foreign cars; they would have let the auto industry in America go down the tubes,
These were the words of Democratic National Committee Chair Rep. Debbie Wasserman Schultz (D-Fla.) at a breakfast put on by the Christian Acienec Monitor. But, as TheHill‘s Michael O’Brien reports, Ms Wasserman Shultz owns a 2010 Infiniti FX35 that is built by Nissan in Tochigi, Japan. And, adds O’Brien, “The car appears to be hers, since its license plate includes her initials” (it is, see picture above). The congresswoman’s response (through a spokesperson):
They can try to distract from the issue if they want. But if Republican opposition researchers are snooping around garages, they should know that if Republicans — who said that we should let the U.S. auto industry go bankrupt — had their way, they wouldn’t find a single American made car anywhere.
*Sigh*
These two graphs preface NHTSA’s recent Vehicle Safety and Fuel Economy Rulemaking and Research Priority Plan [PDF] for the 2011-2013 period.
What does the data tell you? What’s a safety regulator to do? Oh, and you might want to look at this graph before you answer…
Should you be afraid of towing in a new Ford Explorer? Though the newly-unibody Explorer is rated for up to 5,000 pounds, Jack Baruth noted in his review that
My experience pulling my race car on an open trailer with my Flex indicates that the D4 chassis is more than up to the job, but that the transmission just feels delicate. Serious towing with a sideways gearbox frightens me, and it should frighten you, too.
And though you might well share Jack’s nervousness about towing in a new Explorer, the law of the land says it’s safe pulling up to 5,000 pounds. Even so, Consumer Reports found out the hard way that not everyone believes in the Explorer as a safe, effective towing machine. Namely the equipment rental company U-Haul appears to have some kind of problem with the Explorer, as CR’s Eric Evarts explains
I called U-Haul to see about renting their largest, 6×12-foot open trailer to drag the mulch home. “Come on down! $29.95 for the day,” the friendly attendant said.
Eager to finish that day and save $18 by delivering the mulch myself, I trundled off to the local U-Haul lot. As the workers started to fill out the paperwork inside, their faces went ashen the second I said, “Explorer.”
“Sorry, we won’t let any equipment out behind an Explorer,” they said, and began putting away their pencils.
Huh?
Under the terms of its contract with the US Treasury, Fiat will get an additional five percent of Chrysler Group’s equity when it builds a 40 MPG (CAFE, not EPA, so actually about 30 MPG) vehicle in the US. But it turns out that Dodge already sells a car that might qualify… unfortunately, Dodge doesn’t actually build it, offer it in the US, or, starting with the 2012 model year, even bother to rebadge the thing. That’s right, you’re looking at a 2012 Hyundai Dodge Attitude… the only non-red, and one of the only non-Dodge-branded car in the brand’s Mexican lineup [the Hyundai Atos and H100 “Ram Van” are also badged with the Korean brand’s “H.”
See that? Looks a bit like a first-generation Scion xB, doesn’t it? It’s actually a new Kia, codenamed “Tam,” built on its new A-segment Picanto Morning platform, but featuring first-gen xB-style tall-body MPV packaging. The Picanto’s wheelbase is actually slightly smaller than the xB’s, and there’s another key difference here as well: see that rear door? Look where the handle is placed. That’s right, it’s a slider! But that’s not all…
When I visited GM’s Detroit-Hamtramck Assembly plant back in October, I was greeted with a few surprises. One was a small fire that flared briefly on my sweater after a cinder from the Volt’s body-welding station struck me. The other was the sight of GM’s latest, most high-tech green car being assembled on a line that was filled with GM’s oldest-school dinosaur cars, the Cadillac DTS and Buick Lucerne. The scene was no doubt intended to inspire appreciation for the changing face of GM, but the scarcity of Volts amid the oceans of giant front-drive barges (production was just beginning) made it clear that it would be a while before Volt production would occupy much of the sprawling facility. With the DTS and Lucerne headed for retirement, the new 2013 Malibu will be taking up residence at Detroit-Hamtramck later this year, even as Volt production capacity is increased to hit next year’s 60k unit goal. And now GM is announcing that the next generation of Chevy Impala will be built at Detroit-Hamtramck as well, leaving folks in Oshawa saying “eh?” (or words to that effect).
The release of A Road Forward: The Report of the Toyota North American Quality Advisory Panel [PDF], probably raised a few eyebrows around the industry this week, particularly at the headquarters of the Alliance of Automobile Manufacturers in Washington D.C… but not for any obvious reason. The report’s findings about Toyota’s internal reforms in the wake of last year’s recall scandal aren’t particularly mind-bending, and are well summarized in an introductory passage
First, the Panel believes Toyota needs to continue to adjust its balance between global and local control giving weight to local control in order to improve its communication and speed in responding to quality and safety issues. Second, the Panel believes that Toyota needs to ensure that it listens and responds as positively to negative external feedback as it does to negative internal feedback. Third, the Panel believes that Toyota must persist in more clearly distinguishing safety from quality and continue its efforts to enhance its safety practices and procedures.
In addition to identifying specific areas for improvement, the report places a heavy emphasis on “the leadership of Toyota’s top executives as they navigate the road forward, as well as the company’s leadership in the industry” as a way to avoid the traps it fell into prior to the recall scandal. And this emphasis on leadership could have some interesting effects…
SB Medien may call the forthcoming FT-86 a “Celica replacement,” but in this first video of the latest near-production prototype, the budget rear-drive coupe nearly runs into a Supra which apparently belongs to the development team. The Supra shows up once more in the video’s ‘ring testing footage (about 1:55 in), suggesting again that it’s somehow involved in the testing or benchmarking process. How and why? Your speculation is as good as mine…
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