Posts By: Edward Niedermeyer

By on March 31, 2011

I’d like to think that it’s time the global car industry moved past its old fixation on national characteristics, but apparently the “national question” is still relevant, at least to Peter Schreyer, Kia’s German-born chief designer. Previewing his latest design concept, the Naimo EV, Schreyer tells Automotive News [sub]

A lot of people ask what is the K-factor, what is the Koreaness, in the cars, which is hard to answer because there isn’t any really. To be honest, we don’t want the cars to look Korea.

This one we did with the inspiration of using Koreaness. So it will have some clues in it coming from Korean crafts and art

How so?

Its pale green jade color is derived from that used in Korean Celadon-style pottery. The headliner is made from hand-crafted hanji paper. Korean oak is used to trim the doors and cover the floor, as it is in traditional Korean architecture.

And the rest of the design? Is that supposed to reflect Schreyer’s “Germaness,” or is it a product of his German-based perception of what “Koreaness” is supposed to be? Meanwhile perhaps the most interesting question for Schreyer would be: how do you keep production Kias from “looking Korean”? The national question is one huge can of worms, and it inevitably leads to some awkward conversations. And, in this case anyway, it seems to have even led to an awkward design.

By on March 31, 2011

It’s been a bad week for the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan program. First, the GAO slammed the program for weak oversight and a lack of performance metrics and professional expertise, and now the Center for Public Integrity and ABC News are unwinding a web of patronage that appears to be taking advantage of the program’s many shortcomings.

The investigation centers around Steve Westly, a fundraiser who “bundled” half a million dollars in donations to the Obama campaign, only to be given a spot on the DOE’s Energy Advisory Committee. From there, the CPI report alleges, Westly was instrumental in acquiring ATVM access for Tesla, a company that Westly sat on the board of from March 2007 until December 2009. Loans were given to Tesla when Westly was still serving on the board, and his firm, The Westly Group, has made millions on the sale of Tesla stock since the firm’s IPO. And it seems that most of the DOE loan recipients have some kind of connection to one Obama fundraiser or another, like John Doerr, who backs Fisker, another ATVM loan recipient. Meanwhile, smaller firms allege that their requests for loans were simply ignored, and with the GAO knocking the program for treating applicants “inconsistently,” it seems that some kind of favoritism is afoot. But then, isn’t that how Washington works?

By on March 31, 2011

When March sales come out tomorrow, the Chevrolet Malibu will likely find itself in a tough position again. Last month the car that was once hailed as Chevy’s Lutzian turning point had fallen to fifth place in the midsized segment, having sold only slightly better than the Impala which has never been hailed as anything other than a large, inexpensive and unsexy sedan. But Chevy has learned from Ford that the right amount of mid-cycle styling freshening can go a long way: the Fusion never quite lived up to its hype until an update that was more than just a facelift improved its aesthetics, sending it soaring to the number two sales spot in the segment. Chevy is clearly hoping that a fresh look, featuring Camaro-style taillights (a move that echoes the new Charger’s retro-taillamp graft from the Challenger) will juice up the ‘bu… and with no Impala replacement coming for at least a few years, most of Chevy’s midsized-segment chickens are in this retro-look basket.

By on March 30, 2011

In the post-Veyron, post-Horsepower Wars world, “Responsible Performance” has been the catchphrase on the lips of every purveyor of performance cars. And with Audi and Nissan already set to brawl for EV sportscar niche that’s being abandoned by Tesla with the forthcoming end of production of its Roadster,  diesel power seems to be benefiting from a second look by would-be “responsible performance” vendors.

Unsurprisingly, the tuning houses are promoting their diesel efforts, as EV tuning presents significant challenges to the ICE-based tuning community. And the BMW modifiers at AC Schnitzer are leading the way with this Z4 “99d,” a 188 HP, 310 lb-ft two-liter turbodiesel roadster capable of 146 MPH. Oh yes, and 99 grams of CO2 per Km, or (very roughly) 60-ish MPG (non-EPA). Sound like a healthy compromise between “responsibility” and performance? The only thing you’ll have to give up is the $210,000 that Automobile says this Schintzer concept would cost if it were built.

(Read More…)

By on March 30, 2011

A new report [full PDF here] from the Government Accountability Office tears into the Department of Energy’s Advanced Technology Vehicle Manuacturing Loan (ATVML) program, the $25b “retooling loan” package that was the subject of TTAC’s first-ever Bailout Watch.

Although the loans represent about a third of the $25 billion authorized by law, the program has used 44 percent of the $7.5 billion allocated to pay credit subsidy costs, which is more than was initially anticipated. These higher credit subsidy costs were, in part, a reflection of the risky financial situation of the automotive industry at the time the loans were made. As a result of the higher credit subsidy costs, the program may be unable to loan the full $25 billion allowed by statute.

Well, no wonder GM pulled out of the program… it and Chrysler were asking for more than the remainder of $25b would have supported anyway, so if there is actually less than $25b to be spent, the high road away from the “Government Motors” image makes a lot more sense. But a lack of available funding isn’t the only problem with the program…

(Read More…)

By on March 30, 2011

Bloomberg reports:

Designers and engineers are working on a version of the plug-in hybrid Opel Ampera, which was modeled after the Volt and scheduled for sale in Europe this year, with a Buick grille and front-end styling, said the people, who didn’t want to be named because the plans are private. The Buick version would begin sales in 2013 if it gets final approval, the people said.

In theory this is a brilliant plan. Since capacity constraints are limiting production right now, GM might as well get its profit while the early adopters are still in the market. On the “not so brilliant” side of the equation is the fact that the most basic Volt already costs upward of $40,000. At that price point, how will they possibly tempt buyers up into a rebadged Opel version of the same car? On the other hand, there’s no automaker in the world that manages to associate itself so consistently with flailing brand management as does GM. Case in point, the Saturn “Flextreme” concept of 2008 pictured above. Meanwhile, this comes as no news at all to our friends in China.

By on March 30, 2011

Back in 1976, the Italian automaker Fiat had been badly battered by a global energy crisis and the resulting malaise infecting the global auto industry. In what Time Magazine described at the time as “a devastatingly ironic example of petropower,” Col. Muammar Gaddafi instructed his Libyan Arab Foreign Bank to invest some $415m into the Italian automaker, giving it a stake that would eventually grow to some 14 percent of the firm’s equity.

By 1986, Fiat’s Libyan stakeholders were becoming more trouble than they were worth. In the wake of the Lockerbie bombings, the US introduced sanctions on Libya, and Fiat’s Libyan connection left its attempts to bid for US military contracts (particularly those related to Ronald Reagan’s Strategic Defense Initiative) dead on arrival. As a result, Fiat and its shareholders bought back the entire 14 percent Libyan stake in the firm, presenting the Libyan Arab Foreign Bank-controlled Banca UBAE with a $3.1b check. And, according to what a Fiat spokesperson told us yesterday, that is where the story ends. But thanks to the now-ubiquitous Wikileaks, we have found that this story may in fact go farther than that. In fact, as the evidence stands right now, either the US State Department is working with bad information (which major news sources have yet to correct), or Fiat is lying about its ties to the embattled Gaddafi regime.

(Read More…)

By on March 30, 2011

As I write this, President Obama and his top environmental and auto regulators are gathering for a speech on “American energy security” at Georgetown University. In this speech, the President is expected to make the case for ramped-up CAFE standards, EV subsidies and other transportation-related energy efficiency goals, and based on his politically pragmatic framing of the issue as being about “energy security” rather than environmental prerogatives, it seems that he’s serious about creating new policy rather than merely playing to his base. But, according to the Detroit News, the automakers are not going to take increased regulation sitting down, but appear to be gearing up for the first major legislative clash over automotive regulation since the green-tinged bailout. Automakers have begun to push back on both fuel economy and stalled safety legislation, explains Alliance of Automotive Manufacturer’s spokesperson Gloria Bergquist.

Automakers have always supported legislation and regulations that are driven by data and sound science, and there have been some examples where there was more wishful thinking and targets being selected that weren’t based on the data. So we have become more outspoken on the need for data to drive policy decisions.

Of course, automakers haven’t always supported regulation of their industry… but this is clearly a change in tone from the cowed industry that collapsed into the government’s arms just a few short years ago. A battle is brewing, so let’s look at some of the flashpoints in this forthcoming conflict.

(Read More…)

By on March 30, 2011

“Guys, can get your attention for just one more minute?” Jay Lamm, the genial founder and “chief perpetrator” of the 24 Hours of LeMons series has just wrapped up a colorful pre-race briefing from the roof of a Fiat 600, which itself is welded to the running gear of an equally ancient and abused Mini Moke. “Guys,” he shouts through a megaphone to the packed trackside garage, “the president of Infineon Raceway wants to say a few words.”

The crowd’s volume drops expectantly as the man whose racetrack hosts everything from NASCAR to ALMS rises and takes the bullhorn. “I just wanted to say,” he intones, “that this has got to be, without question, the crappiest bunch of cars I think I have ever seen in one place.” The crowd of costumed racers and crew members explodes in thundering approval, nearly drowning out the speaker’s final words: “you should all be extremely proud.”

(Read More…)

By on March 29, 2011

Here’s some food for thought: if you “liked” TTAC on Facebook, your mind would already be blown by this magical tale of Panther Love. Seriously, if I didn’t “like” TTAC myself, I might never have seen it [A tip of the hat to Sajeev and Alex Nunez]. So watch the whole thing, savor the chill that will run up your spine, and then go “like” TTAC on Facebook for a steady drip of more awesomely entertaining detritus from TTAC’s internet adventures.

By on March 29, 2011

The WSJ gets a little closer to the truth about the UAW’s incredible disappearing transplant organizing campaign, reporting

On Tuesday, UAW leaders meeting here described plans to reach out to foreign unions and consumers in what would be their first major campaign since failed efforts in the last decade at Nissan Motor Co. and auto-parts supplier Denso Corp. They hope to be more successful by reaching out to foreign unions at the auto makers’ overseas plants and bringing pressure from prayer vigils, fasts or protests at dealerships.

A person familiar with the matter said the union is now planning to target one foreign auto maker and has narrowed its list to three or four companies. Inside the union, much of the talk centers on targeting the now-struggling Japanese auto maker Toyota or Korea’s Hyundai, this person said.

The UAW has set aside tens of millions of dollars from its strike fund to bankroll its campaign. International actions are to be coordinated with foreign unions and run by some three dozen student interns recruited globally, UAW officials said. When the interns return to their home countries after learning about the UAW efforts in the U.S., they’ll be expected to organize protests against the auto maker, UAW officials said.

OK, so it’s a little bit strange that the UAW is entrusting a campaign that UAW President Bob King calls “the single most important thing we can do for our members ” to a bunch of interns. Still, with “tens of millions of dollars” allocated towards the campaign, some automaker somewhere will be feeling the union’s hot breath on its neck in due course. So, which automaker will the UAW target? Which automaker should they target? And with the UAW apparently refusing to fight the two-tier wage structure, will any transplant or foreign workforce want to join up?

By on March 29, 2011

Now that the economy is recovering and Hyundai has a new generation of more upscale offerings on its dealers’ lots, the automaker’s job-loss-protection program is going away, reports Automotive News [sub]. The one-year protection will be available on Hyundais purchased through the end of this month, but as sales boss Dave Zuchowski puts it

We actually see the elimination of the job-loss program as a sign of a recovering economy and we had never anticipated that this would be an enduring program. We welcome the day when it’s really no longer as relevant in the showroom or as required in the marketplace.

(Read More…)

By on March 29, 2011

Every state in the union has its own laws regarding a manufacturer’s ability to sell cars, with some states banning the practice outright and others merely preventing OEMs from competing with their own dealer networks. California falls into this latter category, as the California New Motor Vehicle Board bans manufacturers from owning dealerships within ten miles of other same-make independently owned stores. But that apparently did not stop Chrysler from opening a dealership in Los Angeles which, according to a petition filed by the California New Car Dealers Association, is within ten miles of not one, but three independent Chrysler stores.

(Read More…)

By on March 26, 2011

When the two extreme ends of the car world collide, there’s bound to be a at least a little tension. So when the first day of LeMons Sears Pointless 2011 overlapped with a track day for Ferrari Challenge customers, the clash of cultures was palpable. Especially when Team Kicking Ass pulled their “250 GTO” into the Prancing Horse’s garage and started snickering about “those cute six figure Ferraris” (i.e. the not-for-public-consumption 458 Challenge). Because real Ferraris have to be bought at auctions… even if they still have “Datsun” on the valve cover.

By on March 23, 2011

Quoth Thilo Koslowski [via AN [sub]], principal automotive analyst at Gartner Research (and coiner of TTAC’s favorite new phrase, “the trough of disappointment”):

First of all, the car doesn’t really make a good personal computer, and, secondly, consumers don’t have to have a PC on four wheels. Ultimately, any type of Internet access in the future has to support the ownership experience of the vehicle; this is not about enabling me to have the same experience I have on my laptop

Which is precisely why we find Nokia’s “Terminal Mode” protocol so compelling: it “lets cars be cars again.”

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