Posts By: Frank Williams

By on November 13, 2007

xf_131.jpgBritain's Autocar has bestowed its annual awards on its patrons. This year's winners include the Jaguar XF, which received the Design Award for "leap-frogging an entire design generation to produce original, contemporary interior and exterior themes on which all future Jaguars will build." Joining the Jag: GM Car Czar Bob Lutz. Maximum Bob received Autocar's Outstanding Achievement award for "his long career as one of the motor industry's most successful and influential 'car guys'." Ford of Europe was named Car Company of the Year in recognition of its "key role in the progress towards recovery of the US-based Ford group, and as a future donor of models for the US market." I'm thinking these are all examples of that famous English dry wit; that sense of humor that Americans don't seem to understand. Yes? Please say yes.

By on November 13, 2007

prius.jpgYou'd think auto ad writers would have learned that dissing the locals is best left to the Simpsons. The latest car company issuing a mea culpa for stepping on finely-tuned political sensitivities: Toyota. BusinessWeek reports that a recent ad by the Japanese automaker raised the hackles of Fresno mayor Alan Autry and California senator Dianne Feinstein. The commercial in question showed the miserly Toyota Prius in a future where "gas stations will become nothing more than low-budget tourist stops. Like ghost towns… or Fresno." After Feinstein complained to the company, Toyota pulled the ad and edited out the reference. What penance must be done? Fresno city councilman Henry Perea says Toyota should open a Prius factory in his patch. Given the cost of doing biz in The Golden State, Perea should've simply asked for cash compensation (if he hasn't already). 

By on November 13, 2007

robots.jpgIn addition to giving United Auto Workers (UAW) members a holiday for the start of deer season, GM is also offering them a lottery ticket just for showing up. MarketWatch reports that under the new labor deal, one year's perfect attendance could win a GM factory worker a brand-new car! Or, um, a part of one. The rules are pretty tough. If you're out sick,a doctor's excuse won't cut it. You have to prove you were sick by proffering a prescription slip or test results (which is a direct violation of HIPAA regulations if I'm not badly mistaken). Eligible workers are automatically entered into a drawing for $15K towards the purchase of a new GM ('Natch!) car or truck. Needless to say, the winner is liable for any taxes or other dealer charges. No word yet on a contest to see who can make the best car.    

By on November 13, 2007

deerhunter1979uk1sht850.jpgNow that we've clocked the United Auto Workers (UAW) new contracts with The Big 2.8– including lootable union-controlled VEBA health care superfunds, wage structures that pay workers different money for the same work, and job guarantees that aren't– there's another detail that's just come to light. The GM – UAW contract changes the day union members get off for Veteran's Day. Why would the union abandon the day that the rest of the country uses to commemorate its veterans' sacrifice for their freedom (or buy a wide screen TV)? So that union members can enjoy the official opening of deer season. Even though the rest of the nation observes Veteran's Day on November 11, the contract specifies November 16, 2007, November 14, 2008, November 16, 2009, and November 15, 2010  (all Fridays of course) as UAW holidays. According to the Flint Journal "both sides say the Friday-off deal will disrupt plants less" because many UAW members are hunters and take deer opener day off anyway. This military veteran suggests that we all stop for a moment of silence for the deer that give their lives so unselfishly for the good of the auto industry.

By on November 13, 2007

auto-dealer-sumo.jpgThe automotive spinmeisters were busy at the beginning of the month. They were either bragging about sales increases or suggesting that they didn't suck as bad as they could have. While it's easy to play fast and loose with sales numbers– estimated vs. actual, the effects of reduced fleet sales, etc.– inventory levels are a reliable indication of showroom reality. When you examine the number of cars a manufacturer's franchised dealers have littering their lots, you begin to know what's what. Let's take a gander at October's numbers.

By on November 12, 2007

zafira.jpgNow that GM's Rethink American brand has finalized plans to stock its showrooms with a Belgium-made Astra subcompact, The General is looking to its European  passenger car division to aid its American Revolutionaries at Chevy. Automotive News [sub] reports that GM's Hamtramck, Michigan plant will build a compact minivan in 2009 based on the next-generation Opel Zafira. The seven-passenger vehicle will be produced for both domestic consumption and foreign delectation. Despite a long and lackluster history in the minivan genre–  Lumina, Venture, Uplander (not to mention the Astro)– GM says it expects to sell 100k units annually in the U.S., stickering somewhere in the high 20's to low 30's. Needless to say, Saturn will get a version and then, who knows? Pontiac? Saab? GMC? 

By on November 12, 2007

allure-super.jpgAs reported here, parity between the U.S. greenback and the Canadian loonie has left many Canadian car buyers with a serious case of sticker shock. To rectify the disparity between U.S. and Canadian prices (albeit belatedly and reluctantly and only after a flood of cross-border shopping and probably more for their dealers' benefit than their customers), Chrysler and Porsche recently lowered their prices north of the border. GM is taking a different route, one with which they are no stranger: incentives. GM Canada has announced cash incentives ranging from $1.5k to $10K and a one percent reduction in the GST (Goods and Services Tax) two months before the government is scheduled to lower the tax. The press release doesn't say how long the incentives will remain in effect. Why incentives rather than price reductions? Incentives can be quietly phased out or terminated while raising prices after a few months would draw unwanted attention to the price "adjustment."

By on November 12, 2007

campers.jpgAmericans favor tougher fuel economy standards. This according to a poll of 1k voters performed by The [not entirely objective on the issue] Pew Campaign for Fuel Efficiency and the [equally industry antagonistic] National Environmental Trust. While failing to report the totals (86 percent in favor, 11 percent opposed, three percent couldn't be bothered), The Car Connection was happy to share the pollster's conclusion that the nationwide survey proves that U.S. voters consider their dependence on foreign oil to be the nation's top national security issue. So those polled want the feds to fix it by forcing the automakers to spend billions to engineer higher fuel mileage vehicles in fifteen years (that security-conscious consumers may or may not buy) instead of making any kind of personal sacrifice to cut oil consumption now. Heaven forbid they should have to give up their big pickup trucks, SUVs, motorhomes and powerboats or change their driving habits to help accomplish that goal.

By on November 9, 2007

collapse.jpgCerberus may have deep pockets, but BusinessWeek notes the company is "loathe to invest more cash" into its automotive acquisition. It makes financial sense: the less they put into Chrysler, the more profit they make when they sell it. Oh, that's right… they're in it for "the long run," not to strip and flip. Sorry. Anyway, Chrysler is looking for any way they can cut costs or save money. Frank Klegon, Chrysler's VP for product development says they're looking for low-cost providers for "components only a mechanic would touch," with the savings paying for the stuff you can see. What building a car with the cheapest brakes, steering, drivetrain and electronic controls made will do for their warranty claim costs (and product liability insurance) remains to be seen. In the meantime, the Wall Street Journal reports they'll be offing a new round of incentives next month to try and clear out slow-selling 2007 models. So while they're cutting quality under the skin to save money, they're paying consumers to buy their products. That's one helluva recovery plan there Bobby boy.

By on November 9, 2007

speed-camera.jpgEngland continues their jihad against driving speeding. Pistonheads relates a report in the Times newspaper that some ministers want to increase the penalties for speeding. A single violation would result in six points and a £100 fine. Under the existing "totting-up" system, motorists caught exceeding the speed limit as few as two times could be banned from driving for six months. Under the new law, the 1.1m drivers who already have six points on their license would be banned immediately for one more speeding offense. With all the speed cameras already blanketing the country, it won't be hard identifying the ne'er-do- wells. It must be comforting living in a country where the crime rate is so low they can focus so much law enforcement effort on minor driving violations.

By on November 9, 2007

delphi.jpgGM's financial disclosures have been rather eye-opening as of late. The Detroit News reports The General just revealed it will be making annual payments to Delphi through 2015– or possibly through 2020– for "labor costs." The payments will run just $300 – 400m per year, but as they say, a hundred million here, a hundred million there and eventually you've spent some real money. What it means to the stockholders: GM is on the hook for a minimum outlay of $2.4b that could run as high as $4.4b over the next eight to eleven years. The revelation leaves one wondering what other incidental expenses are lurking over the horizon on GM's deathmarch road to recovery.

By on November 9, 2007

voga.jpgFord is unveiling a new high end trim level at the South Florida Auto Show– in a Mercury. Wait; isn't that kind of upmarket action Lincoln's purview? Not according to the report in The Detroit News. The "VOGA" trim level is set to debut on the Mariner early next year, and move on to other models from there. No, we're not kidding about the name. Despite being an obvious homonym for "vulgar" (at least in Massachusetts), "voga" means "vogue" in Italian. Anyway, according to Ford's NA design chief Peter Horbury, VOGA is "for people who really do care about style." Since the former "Man's Car" is now selling primarily to women, Mercury's going all out[ish] with "fashion-inspired trim." It has "a unique color scheme, embroidered leather and … subtle clues … designed to convey a greater sense of style." When the bar is low, "greater than" is a slam dunk. Just sayin'.

By on November 8, 2007

topper-camaro.jpgAfter GM racked-up a $39b third quarter deficit, BusinessWeek (BW) wants to know if GM CEO Rick Wagoner is finally ready to unfurl his golden, bankruptcy-proof parachute. Their answer: maybe. Clocking the "muted" reaction to GM's latest losses, they attribute Rick's survival to the loyalty of GM's employees and board of bystanders directors. However, BW also notes the status may no longer be quo should the fourth quarter reveal "any more nasty surprises." Perhaps they should also question the longevity of CFO Fritz Henderson. Fritz reacted to GM's arterial spray by dropping such bon mots as "the economic pace and the market are certainly … something we need to be cognizant of." Up with this insight stockholders should put? What of "we're not signaling [their seasonally adjusted selling rate is] worsening or anything, but today it's certainly below trend"? This after GM missed their mark by about a million vehicles in October. In any case, it looks like the mainstream media is– once again– beginning to smell blood in the water. 

By on November 7, 2007

g-oil.jpgYou may no longer be able to put a tiger in your tank, but now you can put a cow in your crankcase. Gizmag reports that Green Earth Technologies has introduced G-OIL, a biodegradable motor oil made from beef tallow. The oil will hit the U.S. market next year in a variety of  viscosities and performance levels. To jettison your G-OIL, you mix it with G-DISPOSOIL, which breaks the goop down into biodegradable particles. Manufacturing is just as efficient; the company claims they can turn one barrel of animal fat into one barrel of motor oil. Plastic surgeons take note.

By on November 7, 2007

kia-mojave.jpgThere must be something lost in translation. The English-language version of Korea's Maeil Business web site is reporting that Kia will introduce a "premium large-sized" SUV in the U.S. next June. It'll have either a V6 or V8 engine (which would be Kia's first). So far so good. Then they give the original name of the vehicle as "Mohave," which we can only guess is their phonetic spelling of "Mojave," the concept vehicle on which it's based. BUT… now Kia is changing the name from that to "Borrego," after "a desert situated in eastern San Diego, California." The reason for the name change? "Because the word 'Borrego' is more familiar to Americans than the original name 'Mohave.'" I wonder if they got that information from their design center in Irvine, California, which designed the Mojave Mohave Borrego. If so, their marketing mavens need to get their heads out of Southern California and get in touch with the rest of the country before making such an assumption. Just sayin'.

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