Posts By: Frank Williams

By on August 16, 2007

zippybobnardelli.jpgThe financial press [and TTAC] has had its say about ex-Home Depot CEO Robert Nardelli's ascension to Chrysler's throne. The general consensus: there's gonna be some major ass kicking in Auburn Hills. But what do Chrysler dealers think of the executive who never met a problem that he couldn't sic Six Sigma upon? Dealer Magazine surveyed Chrysler stores around the country, asking owners for their thoughts on Boot'em Bob. Obviously, the results were carefully edited and selected to represent a wide range of opinions (lest anyone think Chrysler dealers have an adversarial relationship with the company that turned channel stuffing into an art form, dreams of culling them like an African game keeper facing a plague of elephants and restricted access to the corporation's used car inventory). We get the expected "we are hopeful" and "it's too early to tell." And then… "There are too many name plates in the Chrysler Jeep Dodge lines, many of which are in direct competition with each other. How would Chrysler Corp look if Chrysler were the car line, Dodge the truck line, and Jeep the SUV line?" "Nardelli may be capable in GE or Home Depot areas but the auto biz is a whole different game." "The first thing to do is make products that people truly want to own." I guess they told him. 

By on August 16, 2007

chevymalibu02.jpgGM plans to spend at least $100m to promote the new Chevy Malibu. In hopes of making the model more competitive against Camry and Accord and less of a fleet queen, GM has given the Malibu an Opelized makeover. John Wolkonowicz reckons "This will be the nicest-looking mid-size car out there. It's simple, and it looks capable and looks aggressive." But the Global Insight analyst also warns, "If they think they are going to cannibalize a bunch of sales from Camry and Accord drivers, they are fooling themselves. You're not going to change those people's minds." Bloomberg.com describes the Malibu as "the latest Lutz-inspired model that GM Chief Executive Officer Rick Wagoner is counting on to help end a seven-year slide in U.S. sales and recover from more than $12 billion in losses in 2005 and 2006." Here's hoping that the Malibu will be more successful in that mission than the last automotive marines sent to storm the beaches: Chevrolet Silverado, Saturn Aura, and Lambda crossovers (Buick Enclave, GMC Acadia and Saturn Outlook).

By on August 16, 2007

car.jpgBy law, foreign automakers seeking a foothold in China must form joint ventures (JVs) with domestic “partners.” As we've outlined before, there's an immediate downside: China's scant regard for intellectual property rights (IPR). For example, GM found itself suing Chinese automaker Chery (whose name middle-finger salutes Chevy) over the QQ, a blatant copy of the Daewoo Matiz. The case was settled out of court, but the issue of IPR remains unresolved. Now that Chinese automakers are consolidating and striking out on their own, what’s going to happen to their foreign partners and their IPR? What do you think?

By on August 15, 2007

chrysler_pt-cruiser_05_1024x768.jpgMSNBC says Chrysler will build the PT Cruiser through 2009, After that, not. Originally planned as a Plymouth (remember them?), the PT was a big hit in its model year '01 debut. Flash forward seven years and sales are faltering in the face of competition from trendy CUVs and cute utes. As Volkswagen discovered when it brought back the Bug, it's hard to update a model defined by its styling. Chrysler's executive vice president of product development says his people are planning a new small crossover that will provide PT-like functionality. "It's a new market now," Frank Klegon opines. "We think the new vehicle that we're coming with behind it [the PT] will play the role with a different style." Oblivious to '50's film noir, Cerberus' minions will attempt to sustain PT sales to the bottom of the sales pool with the eleventh "special edition:" the Sunset Boulevard Edition. Perhaps they should have called it the "Sunset Edition" and let it go at that.

By on August 15, 2007

goloco.jpgRobin Chase has the answer to America's car pooling conundrum: Facebook. BusinessWeek reports that the Cambridge, Massachusetts-based founder of Zipcar is introducing GoLoco.org, a social networking-based service within Facebook designed to match potential riders and drivers. For those who are worried about the prospect of sharing a car with a total stranger they only know from an on-line conversation, GoLoco.org promises that "checks and balances are in place to make the system as safe as possible." Beyond registering on Facebook, GoLoco users must record a voice clip that tells the planet what they ate for breakfast that day. How knowing a complete stranger's culinary preferences makes them more trustworthy isn't exactly clear, but hopefully GoLoco's name won't ring true for the creepy guy sharing your ride on his way to Spahn's movie ranch.

By on August 15, 2007

i_vw_crafter_2006_van_05dec.jpgCNNMoney reports that Volkswagen is considering moving their North American headquarters from Auburn Hills (MI) to an as-yet-undetermined location on the east coast. A "high-level manager in U.S. operations" says the company's considering the move because VeeDub's suits have trouble getting direct flights in and out of Detroit, and potential recruits are not exactly clamoring to move to Motown. Also in the mix: VW's thinking about building a second North American plant. Taking a lead out of Nissan's Nashville songbook, the German automaker might be looking to get management, marketing and manufacturing within eyesight of each other. Fearing another exodus like Comerica or Pfizer, Michigan Governor Jennifer Granholm's office said Tuesday the state is "in touch" with Volkswagen, but declined to "comment on rumors." If that changes, we'd welcome Jenny's shout out below. 

By on August 15, 2007

id38009_speedlimit.jpgForget the political tussle over Corporate Average Fuel Economy legislation. Business Week's Ed Wallace has the solution to all our energy problems: lower the speed limit. Wallace says if we dropped the highway speed limits to 60 mph and "rigidly enforced them," America would save 96,135,846 gallons of gasoline each and every week." The scribe also states "this single action could resolve our energy problems in seven working days." Mr. Wallace only mentions Ye Olde National Maximum Speed Law of 1974 in passing, even though the legislation introduced the term "double nickel" into the lexicon and put Richard Nixon and Sammy Hagar at opposite ends of the socio-political spectrum. Maybe that's because the national limit didn't save gas. The [admittedly conservative] Heritage Foundation reckons the law reduced gas consumption by one percent, although God knows the ticket revenue was (is?)  phenomenal. 

By on August 15, 2007

dsc_0035_wideweb__470x3400.jpgThe Herald Sun reports that coppers down under have developed a "smart" cop car. The Australian National Safety Agency, Victoria Police, Motorola, GM's Holden division and Monash University have created a prototype cruiser by combining a Batcave of crime-fighting equipment: facial and number plate recognition, infra-red scanners, front/rear cameras, an integrated on-board computer and a device "that attaches a sticky GPS transponder to a car being pursued." If a fleeing felon doesn't get out of the way during pursuit, RoboCopCar broadcasts a "direct local radio message warning of an approaching emergency vehicle." LAPD is working with Aussie coppers on the prototype; they're not saying if American modifications will include a coffee maker and donut dispenser.

By on August 14, 2007

police_gs430.jpgFor the sixth consecutive year, Lexus will hang out its shingle at the National Police Fleet Managers Association Conference in Swindon, UK. According to Easier Motoring, the brand will be "demonstrating the qualities that make Lexus models ideal for police work." ToMoCo's hybrid models are already popular with UK law enforcement fleet managers, known for their low operating costs and reliability. Meanwhile, the McCook (IL) police department's approaching its patrol car needs from a more "traditional" perspective. Suburban Life reports they've just taken delivery of two Hemified Dodge Chargers. The Chief's making no bones about his carbon-oblivious reasoning: "The new cars are painted metallic black with white graphics that are slightly slanted. McCook Police Chief Frank Wolfe hopes that these graphics give the effect that the cars are moving very quickly, and that they cannot be outrun… 'With the new cars, people will notice us, and hopefully, in most cases that will stop them from committing a crime.'" Old School. 

By on August 13, 2007

prius.jpgConsumerAffairs.com has collected complaints from Toyota Prius owners regarding throttle control. One, a new Prius with 600 miles on the odometer, accelerated wildly while the owner was attempting to merge onto a busy interstate. On another occasion, the traction control system (itself another problem reported on the site) kicked in and the car accelerated. A third time the car refused to slow after passing another car. One Prius owner, an engineer, discovered that tapping the lever that disengages the cruise control solved the problem– even though the cruise control system was already turned off. Toyota denies any mechanical or software problem. They suggest that a wadded carpet may have caused a sticky go-pedal. 

By on August 13, 2007

1m_honda_al.jpgWhat's killing the minivan? The Detroit News thinks it's sliding doors. Citing the sliding rear doors as the primary feature that distinguishes minivans from crossovers, they point out minivan sales are down 22 percent so far this year, while crossover sales are on the rise. Automotive marketer Wes Brown sees the sliding door as epitomizing the "less-exciting realities of minivan ownership" for the poor schlubs who are "stuck in a rut of having a family." Interesting thing, though– the first generation Mazda MPV and Honda Odyssey had regular rear doors instead of sliders. They were less than stellar sellers. The second generation of both models had proper sliding doors, just as God intended. Who knows? If they'd stuck with the regular doors and changed their marketing strategy, they might have been credited with starting the crossover craze. Either that or disappeared.

By on August 13, 2007

workers.jpgThe jobs bank at GM's Lordstown, Ohio metal stamping plant is about to receive a deposit. The Warren, Ohio Tribune Chronicle reports that about 20 workers will join the 38 already in the "money for nothing and your checks for free" repository when their jobs are phased out over the next few weeks. The workers, skilled tradesmen, will draw a 40-hour salary plus bennies while waiting for another position to open up. UAW Local 1714 president David Green says that he'd like to negotiate more enhanced buyouts and retirement incentives so they could move some of the idle workers into the vacated positions. Green also said the workers could get training while waiting for Godot reassignment or retirement "We try not to let them sit," Green demurred.

By on August 13, 2007

7.jpgOur automobiles have become a mobile office, dining room, game room, entertainment center and lifestyle statement. gizmag reports that– Hello? Pay attention please! gizmag reports that a U.K. survey indicates the front seat of our automobile is now (always has been?) a hallowed forum for our most important interpersonal communications– a place to make "life-changing decisions."  Respondents to the Kia-commissioned survey say they've discussed moving, getting married, buying a new car, ending a relationship and/or getting divorced while in their car. And why not? The front seat facilitates private time with your significant other; it's a place to avoid distractions, where neither party can walk away (at least until the next traffic light). Interestingly, although 12 percent listed "agreeing to start trying for a baby" as a life-changing decision that they'd made in the front seat of their car, there was no mention of any similar life-changing decisions in the back.

By on August 13, 2007

granholmchevyvolt03.jpgGeneral Motors is considering an unusual program to keep the price of the Chevy Volt within the grasp of the average auto buyer: renting them the battery pack. The Financial Times reports that GM is considering selling the car for the price of a Chevy Malibu, and then charging owners a monthly rental fee for the batteries. Volt chief engineer Frank Weber estimates an average owner would pay about $25/month for gas, compared to $125 for a traditional Malibu. The battery pack would rent for about $100/month giving a similar total operating cost. Oops! Unless we're missing something, Weber forgot the cost of plugging in to recharge the battery. Since the primary reason most people look at any kind of hybrid is lower operating cost, we've got to say this seems like a bone-headed self-defeating marketing idea.

By on August 13, 2007

cg020.jpgDo you need to be a "car guy"  to run an automobile company? Not according to Micheline Maynard, author of The End of Detroit. Writing for The New York Times, Ms. Maynard defines a car guy as someone who "can be credited for inspiring or developing anything on the roads today." GM lifer Rick Wagoner will not be pleased to hear he's been excluded from the club– despite overseeing the introduction of more than 35 new models during his seven-year tenure. Anyway, given the current state of the American auto industry, you'd think Ms Maynard would be arguing for car guys. Nope. "Car guys were responsible for Detroit's triumphs, they also steered the companies into trouble with errors in judgment that included relying too heavily on big sport-utility vehicles." Hmmm. That seems like that's more of a "beancounter" decision than a "car guy" move. Just sayin'.

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