Ford is tooling up for what is likely to be a tough UAW contract negotiation in light of its return to hefty profits. And in hopes of shifting the conversation from its strong financial performance, Ford is highlighting the fact that it still pays $8 more per hour than its competition. Of course, there has been improvement, as Ford notes at its fordahead.com website
Ford’s average hourly cost per employee for wages and benefits in the U.S. reached about $75 per hour in 2007, prior to the negotiation of a new national contract. By negotiating an agreement with the UAW that year, and by adding modifications in 2009, we were able to substantially improve the competitiveness of our labor costs. Had we not reached this agreement, our average hourly wage rate would have remained simply unsustainable — and utterly uncompetitive — and Ford would not be in a position to create new jobs or bring new work into our U.S. plants.
But Ford has only itself to blame for some of those higher labor costs, as some $2/hour of its labor cost disadvantage is a result of its record-high profit-sharing checks, according to the DetNews. And, says Ford, once new “second tier” hires enter the Ford workforce, it expects wages rates to drop to parity with the transplants. In short, Ford is making the case to stay the course, working through existing contract changes to get to parity with the transplants. But given the fact that Ford is already making hefty profits, don’t expect the UAW to simply roll over. The battle lines have been drawn… but nobody knows how the conflict will actually play out.
So, will this MIT-developed “virtual dashboard” render that car you’re about to hit? After all, a three-dimensional representation of the world on your dashboard seems like it would be at least as eye-catching as… you know, reality. And, believe it or not, according to PopSci this is actually a development of a program that was determined to be too distracting. This system, named AIDA 2.0, was developed from
a little robotic dashboard companion called AIDA (for Affective Intelligent Driving Agent), an MIT creation that essentially read a driver’s facial expressions to gauge mood and inferred route and destination preferences through social interaction with the driver. Apparently that was deemed too distracting, so now MIT is back with AIDA 2.0, which swaps the dashboard robot for a massive 3-D interactive map that covers the entire dashboard–because that’s not distracting at all.
Hackles were raised here at TTAC and around the internet this week, when a draft version of the Transportation Opportunity Act circulated, tipping us to the administration’s preference for pay-per-mile road taxation. According to that version of the bill,
section [2218] would establish a Surface Transportation Revenue Alternatives Office within the Federal Highway Administration. The office would analyze the feasibility of implementing a national mileage-based user fee system that would convey prices to users to reflect system use and other travel externalities and serve as a funding source for surface transportation programs.
TTAC has been tracking and criticizing attempts at pay-per-mile taxation (both state and federal) since at least 2007, and because Transportation Secretary Ray LaHood had previously come out in support of pay-per-mile road taxes, we weren’t surprised by the TOA’s inclusion of a move towards pay-per-mile. And because the White House smacked LaHood down the last time he praised pay-per-mile, we aren’t all that surprised to find The Hill reporting that the White House is disavowing any interest in pay-per-mile. Spokesfolks explain:
This is not a bill supported by the administration. This was an early working draft proposal that was never formally circulated within the administration, does not take into account the advice of the president’s senior advisers, economic team or Cabinet officials, and does not represent the views of the president
So fear not, Americans opposed to a GPS tracker in every car: the White House has no interest in tracking your every movement. But until such time as a politician finds the cojones to address the highway fund’s shortfall by raising the gas tax, expect pay-per-mile to pop up again and again.
I’ve expanded most of our segments slightly this month to include some vehicles that either sell poorly enough to usually drop off our charts, or don’t quite fit into any one segment. For example, the Juke’s widened-Versa platform means it should probably be in a class lower than this one, but it’s selling well enough to earn a spot here, and doesn’t have enough direct competition for a “Crossunder” chart anyway. In any case, the Compact CUV segment is turning into something of a two-car battle between the CR-V and Escape after the close battles of the 2009-2010 period. And with a redesigned CR-V set to debut this year, Honda should pull away here… but that new Cute Ute has been delayed and supply interruptions are coming down the line, all thanks to the Japanese tsunami situation. Which means Ford’s old soldier, the Escape, will continue its unlikely prominence in a segment packed with newer, fancier options. But with a very different next-gen Escape coming down the line, Ford is taking a step into the unknown rather than building on the Escape’s SUV-lite positioning. So even though this chart doesn’t necessarily reflect it, this segment is actually fairly wide open. Game on!
There have been a number of important meetings in the auto industry over the last several years that TTAC dearly wishes it could have been a fly on the wall for, including GM’s decision to keep Opel, Fiat’s negotiations with the White House and Saab’s visit to its local payday loan store, to name just a few. But perhaps one of the more interesting boardroom battles of recent years has to be the new VW-Porsche Group’s struggle over how to brand its forthcoming mid-engine sportscar platform which first debuted as the VW BlueSport. Bertel reported last Summer that Porsche, Audi and VW were all bidding for the group’s sportscar development work, but that Porsche was likeliest to emerge with the title.
And it turns out he was right, as Auto Motor und Sport reports that VW has solved the problem by canceling Audi’s planned version of the BlueSport, leaving small mid-engine sportscar efforts in the hands of Porsche and VW. Though the decision makes the BlueSport’s branding challenge quite a bit easier (while cementing the prominence of firms related to Ferdinand Porsche at the expense of the Horch-created Audi brand), it has one less-than-ideal outcome: it removes Audi’s ability to bracket Tesla’s Roadster, a move which would have surely hurt the Silicon Valley upstart. Still, internal politics are more important than obliterating a limited-production competitor… and at least VW has its branding ducks back in one relatively orderly line.
No? Never? Well, technically this isn’t a Buick, but an Opel Astra GTC OPC (at least according to Auto Motor und Sport). And given that Buick is holding off on bringing serious power to its Regal GS (at least until a coupe comes out of Germany), it’s fairly unlikely that they would bring a 290 HP, limited-slip, six-speed hot hatch to the Buick brand any time soon. Or is it? The line for “Mr Euro”-style self-delusion forms here…
Within weeks of becoming Editor-in-Chief here at TTAC (and through a truly unexpected twist of fate), I was given the opportunity to interview Jaguar’s head of Design, Ian Callum on the occasion of my first-ever visit to Detroit. True to our industry-centric mission, I was in town for Chrysler’s Five Year Business Plan, and to be perfectly honest, I struggled with the challenge of interviewing a chief designer, especially one who had recently rejuvenated the aesthetics of such a storied brand.
As I was fumbling through our breakfast interview, we were joined by a GM executive who happened to live at the hotel where Mr Callum was staying, and when I got the most unexpected answer of the interview, it’s safe to say this exec jumped as high out of his seat as I did. I had asked Callum what his favorite new car was, and to my complete surprise he answered “Chevrolet Stingray Concept.” That answer actually played a surprisingly important role in my subsequent career, as it earned Mr Callum and myself an invitation to GM’s Heritage Center (once we had scraped the GM exec’s jaw off the floor), where we spent three hours wandering around and taking in the best of GM’s glorious past. (Read More…)
Electric car makers like to make a big fuss about how their clean-green automobiles are going to “change the industry.” Sometimes those instincts lead to hubris and overreach (ahem, Tesla), while other times the changes make you long for the relative simplicity of the new car dealer fandango we all go through to buy “regular cars.” In the case of Think, the business innovations (namely the innovation of relying on accumulating local tax credits to get the price to seem as low as possible) are enough to make the world of dealer markups and delivery charges seem downright quaint and homey. And that’s not the way to change this business…
No, the G-Wagen isn’t gone for good… but let’s face it, we all know nothing lasts forever. Having been built with only one major technical change since 1979, the G-Wagen’s inevitable ride into the sunset is beginning with the end of production for the short-wheelbase, two-door version that we’ve never (officially) received here in the US. A complete shutdown of Graz, Austria production has been whispered about since (at least) 2005, when Mercedes nearly stopped shipping Gs to the US (according to Wikipedia, only an order from the US Marines [Devil Dog G-Wagens FTW!] stopped Mercedes from cutting America off from the G-loving). But, according to Auto Motor und Sport, the convertible and four-door versions will continue to be built… for the moment. Think of this as an opportunity for a bit of proactive mourning….
President Obama’s goal of having a million plug-in vehicles zipping around American roads by 2015 faces some serious challenges, as report after report casts doubt on the chances of the hoped-for level of adoption in the hoped-for timeframe. Meanwhile, the president’s defense of his plan’s practicability… leaves quite a bit to be desired. Regardless, the President’s goal is receiving some unexpected support as Automotive News Europe [sub] reports that
Germany’s cabinet plans to commit billions of euros to boost the electric auto sector so that 1 million cars are registered by 2020
The established Accord/Camry duopoly on the Midsized segment wasn’t in any serious trouble this month, but as tsunami-related shortages hit Honda, Toyota and Nissan, things could be in flux. In fact, the big story for April seems to be the relaxing of demand for Fusion and Altima, which still occupy a distinct second tier behind Accord/Camry in the Year-To-Date race. Behind those four, the Sonata and Malibu are neck-in-neck in the YTD standings, with the fleet-happy Impala (easy there Bias Police, AN [sub] reports that “In March, about 75 percent of Impala sales went to fleets and rental-car companies”) and the supply-constrained Prius trailing the pack. And then there’s everyone else. Chrysler Group’s midsizers are improving their sales, Legacy is in a holding patter, Maxima is showing its age and the Mazda6… well, that’s just a sad story, isn’t it? NB: VW did not sell a single Passat last month. Passat CC numbers will be in our weird mash-up segment of large/premium sedans.
DeTomaso’s re-launch landed with a thud when it debuted its “Deauville” CUV monstrosity. But it’s possible that the “D’oh-ville” (as it will henceforth be known here at TTAC) was simply the amuse-bouche (French speakers will be able to offer a more apt variation) before the real meal. Just as the D’oh-ville was first seen in a very specifically-staged video, a mid-engined sportscar has been spotted leaving DeTomaso’s headquarters while being “spied” from the exact same angle. So expect something a little more heritage compliant from the brand that created the Vallelunga, Mangusta and Pantera.
A massive study by the Government Accountability Office into “Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue” has turned up an interesting finding. It seems that the government’s desire to buy more “alternative fuel vehicles” (AFVs) may actually increase the amount of gasoline used by government fleets. Why? Because agencies largely buy E85 ethanol-powered vehicles to fulfill their AFV requirements, and there aren’t enough E85 pumps to actually fuel the fleet, forcing agencies to obtain waivers to buy regular gasoline. Hit the jump for the report’s full findings on this, the latest unintended consequence of America’s ongoing ethanol-subsidy boondoggle.
One of Jack Baruth’s many great contributions to modern auto writing is “Mr Euro,” an archetype he first identified in his excellent Ford Fiesta review. According to Jack’s original taxonomy:
Mr. Euro is the guy who, for some reason, wants the cars he cannot have in the United States. He’s the guy who says he would drive a 520i “in a heartbeat” given the chance, the dude who thinks we’re missing out because the Renault Twingo stays on the froggy side of the pond, the fellow who desperately wants a Vauxhall Zafira for child-lugging purposes.
Now, I hope I manage to avoid the most extreme expressions of the stereotype Jack describes here, but yeah, I’ve got some “Mr Euro”-ish tendencies. What can I say, the grass just looks greener on the other side… sue me. In that spirit, follow along as I explain why I’m leaving this dump and moving to China.
With all the excitement brewing in the Compact segment, some may be ignoring a building problem at the other end of the market, in the full-sized truck segment. Automotive News [sub] reports that GM’s truck inventory currently stands at 111 days of surprise, or a whopping 275,000 trucks sitting on lots. In April, Silverado was more than 3,000 units off the previous month’s pace, while Sierra was just over 1,00 units off. GM’s US market boss Mark Reuss tells the industry paper
We’re going to do something about it, but we haven’t made those calls yet… no one month makes a trend, so we’ve got to see where this one holds
Meanwhile, we’d be more worried about Chrysler, which saw Ram sales drop from nearly 22k units in March to 17,680 units in April. And not only is Chrysler more dependent on truck profits than GM due to its tighter balance sheet, it also has fewer high-efficiency alternatives to offer consumers who seem to be slowly responding to rising gas prices and moving towards more efficient offerings. And given that Automotive News [sub] is already noting that Chrysler has fallen behind on its “ambitious” sales goal and quoting analysts bemoaning Chrysler’s “perception” issues, it seems that Auburn Hills should be trying to get ahead of the story the way GM is.
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