Posts By: Frank Williams

By on August 8, 2007

snow.jpgAs if a new owner, a new CEO, housecleaning in the executive suites and negotiating a new contract with the United Auto Workers weren't enough to keep Chrysler's middle management mainlining Mylanta at the Pentastar Palace, the Detroit News reports that Chrysler lost $1,111 on every vehicle they sold in North America last year. That's a drastic drop from the $144 per vehicle they made in 2005, before sales of large trucks and SUVs hit the skids. The only bright spot: Chrysler didn't lose as much money as Ford. The Glass House Gang's losses ran over $1900 per vehicle. To rub salt into festering wounds, the transplants (Toyota, Nissan, Honda) averaged nearly $1600 profit per vehicle. 

By on August 7, 2007

07edgeccrossover_8726.jpgJust as American automakers were trying to wean themselves off of fleet sales, just as The Big 2.8 were looking to reduce incentives and bounce back from a slow June, July. In July, practically every U.S. economic indicator took a downturn, from housing starts to the stock market. While American auto sales didn't plummet, they took a major hit. Even Toyota was not immune from the fallout; the numbers rolling in proving that ToMoCo's not invulnerable to a bad market. Damage report Spock.

By on August 7, 2007

uaw-new.jpgIn a move somewhat akin to herding ADHD cats, the UAW is making a move to unionize bloggers. USA Today quotes Gerry Colby, president of the National Writers Union, a local of the United Auto Workers: "Bloggers are on our radar screen right now for approaching and recruiting into the union. We're trying to develop strategies to reach bloggers and encourage them to join." This might be a hard sell; most bloggers are independent, few are paid and even fewer make a living blogging. While some bloggers see union organization as a way to get health insurance discounts or conduct collective bargaining, others aren't that enthralled with the idea. Sounding almost like he's blogging for TTAC, Committee to Protect Bloggers' founder Curt Hopkins summed up many bloggers' feelings. "The reason I like blogging is that it's very anarchistic. I can do whatever I want whenever I want, and oh my God, you're not going to tell me what to do."

By on August 7, 2007

impala.jpgAutomotive Fleet Magazine has opened the polls for their 2008 Automotive Fleet Fleet Car and Truck of the Year awards. The nominees include 64 car and 37 light truck models ranging from Audi to Volvo. Voting, which is limited to professional fleet managers, runs through October 15. Nominees are to be considered based on cost, maintenance, reliability and overall operating expense. Last year the Chevrolet Impala and Ford F-150 scooped the honors. If sales are any indication, the two models look set to score a hat trick. In the first six months of '07, fleets claimed 80k Impalas (54% of production) and 67k F-150s (21% of production). Percentagewise, the Dodge Charger and Magnum beat both models, with 56 and 60 percent of production siphoned-off for group sales. Despite the anti-fleet excuse message's new status as Detroit's explanationdu jour for lackluster sales, we know for a fact that many mid-level managers embedded within The Big 2.8 are pulling for their vehicles to snatch the gong.  

By on August 7, 2007

flying-car-new.jpgThe Detroit News gives us the inside dope on Nissan's latest gadget, which allows drivers to pay even less attention to their driving than they do currently. Nissan's engineers have developed a system that combines radar sensors with a computer to "make a car that judges dangers on its own" and lifts the gas pedal to warn the driver of possible collisions. If the driver takes his foot off the accelerator in response, the car will brake to a stop. However, if the driver keeps his foot on the gas, the car will continue to go. So now, that person on the cell phone in the car in front of you suddenly has to wake up and make a split-second assessment: is the car giving a false alarm and can they keep going, or is something happening that requires the car to stop? Nissan also has a lane departure prevention system that "swivels a car back into its lane if it swerves off" which will be offered later this year on the Infinti EX. Wouldn't it just be easier to pay attention to what's going on around you?

By on August 6, 2007

autobahn1.jpgGermany's famed Autobahn turns 75 today. Deutsche Welle recalls how the first 20-kilometer stretch between Cologne and Bonn was opened to the public on August 6, 1932. The new highway had some very specific rules, many of which still apply. The Kölnische Zeitung newspaper wrote on Aug. 5, 1932: "Due to a specific police order, every other traffic, such as pedestrians, carts, bicyclists, motorcyclists and horse carriage, is prohibited to drive on the street." Today, the Autobahn stretches 12,400km. Despite the widespread belief that you can drive on the autobahn as fast as you dare, most sections have posted speed limits. As for the "de-restricted" segments, environmental groups have been calling for the imposition of speed limits since the '60's. Thanks to global wamring concerns, those voices have gathered new strength. Despite the country's cultural attachment to "fun, fun, fun on the autobahn," it's only a matter of time before the adrenal anachronism is "harmonized" with European law. 

By on August 6, 2007

cars.jpgThe contract negotiations between the Detroit automakers and The United Autoworkers Union (UAW) continue apace. The employers are adamant: they need union concessions to survive. BIG concessions. Citing a $25/hour labor cost differential between their operations and those of the transplants, The Big 2.8 claim their salvation depends on taking food from union workers' table negotiating large pay and benefit cuts. But would such concession from the carmakers' "partners" actually bail them out of hot water? 

By on August 6, 2007

jac.jpgJacques Nasser, the man who gave us the dubious marriage of Ford, Land Rover, and Jaguar that resulted in the now defunct Premium Auto Group,want to buy Jaguar and Land Rover. The Times reports that Nasser is visiting the factories to "woo trade unions" in an attempt to get support for his bid. Gentleman Jac's partnering with One Equity Partners, JPMorgan Chase's private equity firm. Fearing the old "strip and flip," union leaders have asked the Government to block any sale to an equity firm. Whoever ends up with the not-so-dynamic duo, the union wants Ford to "agree that if they are going to sell Jaguar and Land Rover they ensure there is a long-term commitment to keeping production, research and development and stamping at existing facilities."

By on August 3, 2007

patriot_20071.jpgEven as United Auto Workers (UAW) contract negotiations are underway with The Big 2.8, 13 News reports almost 100 temp employees at Chrysler's Belvidere, Illinois, assembly plant have filed a lawsuit protesting their contract. The temps have "little union representation," no dental, vision or prescription health care benefits. Their benefits and wages are the result of an agreement between Chrysler and the UAW– to whom they're expected to pay union dues. Even the UAW is split on how this should be resolved. Leadership at Local 1268 wants to see the temps made full time, but some workers fear if they do, it would result in diminished benefits for everyone. Chrysler, of course, has filed a motion to dismiss the suit.

By on August 3, 2007

toyota-mark-x.jpgToyota's enjoying record financial prosperity; year-on-year, the world's largest automobile manufucturer's Q2 operating profits rose 31.8 percent (675.43 billion yen vs. 512.42 billion yen). The lion's share of Toyota's success stems from strong U.S. sales of high margin models (Tundra and Lexus LS), bolstered by a weak yen. Meanwhile, back at home, bleh. ToMoCo's domestic sales slumped 10 percent, dropping 43k vehicles compared to last year. Speaking to the Japan Times, Yoshihiro Okumura, from Tokyo's Chiba-gin Asset Management Co. says the downturn reflects a shrinking domestic pie. "It's becoming more difficult to make a large profit in Japan, as the market is shrinking and people aren't buying cars." In an attempt to spur sales, Toyota has unleashed  11 new or redesigned cars in the past 16 months. 

By on August 3, 2007

bmw_isetta_open.jpgAlthough Isetta fans need not get too excited, CARSguide reveals that BMW is considering developing a car more mini than MINI, based on the MINI. BMW has ordered work on prototypes of a car smaller than anything they currently offer, in hopes of helping lower the company's CO2 emissions fleet average. As evidenced by Fiat's initial success with its resurrected Cinquecento, Europe's "city car" segment is growing fast.  As European manufacturers face rising gas prices, tighter emission standards and burdensome taxes on their products, the supermini class should continue to expand. What's next, a Euro-kei car?

By on August 2, 2007

markey.jpgThe Detroit Free Press reports Congress' strongest advocate of tougher corporate average fuel economy (CAFE) standards has thrown in the biodegradable towel. After meeting with House Leader Nancy Pelosi (friend of the UAW), Massachusetts Representative Edward Markey decided his 35 mpg by 2019 plan would slow down other bills the Democrats are trying to pass before the August recess. Markey now says he'll back the mileage increase passed by the Senate in June– which keeps the 35 mpg standard but extends the deadline to 2020. The debate in the House will resume in September, when Detroit Representative John Dingell will "address" fuel economy in his discussion of global warming. 

By on August 2, 2007

100mpg_car1.jpgThe Automotive X PRIZE (AXP) challenge is offering a multi-million dollars prize to anyone who can build a marketable car capable of 100 mpg or more. There's only one catch: the X PRIZE Foundation doesn't have the prize money, yet. The Foundation is a self-described "educational nonprofit prize institute whose mission is to create radical breakthroughs for the benefit of humanity." They're trying to raise prize funds by "seeking assistance from major foundations, corporations and philanthropic individuals to help bring about this revolution in transportation." So far, 30 teams from the US, Canada, and Europe have signed up for the challenge. The major automakers are conspicuous in their absence, but if they could come up with 100-mpg technology they'd be patenting it and turning huge profits from selling ultra-economy vehicles.

By on August 2, 2007

granny.jpgWith Buick concentrating on the Chinese market, Cadillac going for a younger demographic and the Lincoln Town Car's future uncertain, someone has to take up the slack for us alter kochers. Toyota has a head start with the Avalon, but Nissan's making a move on the geriatric market. TheMatureMarket.co quotes Renault/Nissan CEO Carlos Ghosn as he states the obvious: "The average consumer on earth is going to be much older. We know also that usually the purchasing power is with older people. [That means] more money in the hands of the seniors and more seniors on earth." Watch for more Nissans featuring geezer-friendly technology such as backup cameras and perimeter sensors in the near future. Carlos didn't say if his company is working on a way to automatically cancel the turn signal after the car reaches a certain speed on the highway.

By on August 2, 2007

bovytroph_06_small2.jpgTTAC has not been shy about its scepticism regarding the owner satisfaction and quality surveys produced by JD Power, and the commercial links to the industry that they monitor. We have also pointed out that Consumer Reports' "secret sauce" (i.e. their analytical formulae) have certain limitations. Until now, we've overlooked another source of auto manufacturers' braggin' rights: the Intellichoice awards. While you'll hear Intellichoice mentioned in the same breath as JD Power in more than a few automotive advertisements, Intellichoice's methodology doesn't get nearly the same scrutiny. It's time to correct this oversight.

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