When you start a new job, it’s considered important to make a good impression. How does the saying go? “Start as you mean to go on”. Well, Dan Akerson, I suspect, tried to heed that advice and ended up putting his foot in it. The Associated Press reports that Dan Akerson, CEO of Government (soon to be “General” again) Motors, presented a webcast to GM employees. The usual CEO rhetoric came out. “GM needs to keep competitors on their heels rather than responding to what they do” said one GM worker, who asked not to be identified as the broadcast was not available to the public; despite being owned by them. “Attack mode” was another phrase used. But then Mr Akerson said that GM’s Cadillac brand has to make cars that are better than BMW’s. Now I thought this was quite a harmless statement to make. The CEO set a (quite high) benchmark to beat. Sounds reasonable, right? Not according to some. (Read More…)

A few weeks ago TTAC reported how BMW and Daimler revived a long-ago formed  joint purchasing venture in order to help drive down costs for the 2 independent car makers who can’t achieve high volumes of scale. This was seen as quite a big step in a direction few expected. As our resident German put it, “If you think South Korea and North Korea have communication problems, then you should be in a meeting between Daimler and BMW engineers.” He does have a way with words, doesn’t he? But he wasn’t wrong. It’s been a bit of joke to in the industry how Daimler and BMW view each other. As the mustachioed one put it, “Daimler engineers view their colleagues as boorish Bavarian upstarts. BMW engineers think Daimler is a congregation of has-beens.” And you thought relations between GM and Toyota were frosty! At least they had a plant together. Well, it seems that relations maybe thawing between the boys in Munich and the lads in Stuttgart. Kind of… (Read More…)

On The Booth Babe’s last article, TTAC commentator, LALoser, stated that he originally thought that I was the Booth Babe! He based this theory “because of the just below the surface Anti-Americanism.” So to address this accusation, I decided to blog the following… (Read More…)

DNA India reports that Tata is making a concerted effort to source parts for Jaguar and Land Rover from low cost countries like China, India (duh!) and Poland. DNA’s source for this claim said: “Earlier, Ford used to procure 17 percent from low-cost countries like Poland, China and India, whereas Tata Motors is planning to increase it to 35 percent.” Tata has buys more than just cheap parts. They outsourced low-end design and development work to lower-wage countries. But before you start the “If you thought JLR reliability was bad now…” don’t get too carried away. (Read More…)

I hate to get all “workers of the world unite”, but management seems to get away with a hell of a lot more than the rank and file. Take Prudential’s bid to take over AIG’s Asian arm. The bid failed and the whole exercise cost Prudential £377m (about $579.5m). Digest that figure for a second, then digest the next fact. The CEO, Tidjane Thiam, refuses to stand down over this mistake. Now consider this, if you, as a rank and file member, would cost the company you work for just 1 percent of that previous figure, could you honestly expect to keep your job? Now let’s look at the FIATsco incident. The whole affair cost GM $2b. Again, had you have cost the company you work for just 1 percent of that figure, could you keep you job? After writing this paragraph, I find the next story almost heartwarming. (Read More…)

When you buy a car new, depreciation is a risk you have to take. So like with any risk, one tries to minimize it. That’s why Toyota and Honda are such perennial favourites. low depreciation. But what cars should you avoid if you don’t want to suffer depreciation that could make you depressed? (Read More…)

As I wrote a few days ago, European car sale figures aren’t looking too great. In fact, for want of a better phrase, they’re bloody awful. (Detailed numbers to follow at around Sept 15.)  The reason behind this drop is the detox from the high of “Cash For Clunkers”. Now that the artificial boost has gone (or is slowly dissipating) the market is coming back down to where it should be. And where it should be isn’t good news for auto manufacturers. In the UK, it’s just as bad. The SMMT reported a drop of 17.5 percent in new car registrations compared to August of last year. This is in line with the SMMT’s prediction that the second half of the year would be tough, to put it mildly. “New car registrations were down 17.5 percent in August and conditions will remain challenging through the rest for the year,” said Paul Everitt, SMMT chief executive, “The industry enjoyed a better than expected first half of the year and despite the difficulties, SMMT is forecasting that new cars registrations will close just ahead of 2009 figures.” Shall we take at look at the winners and losers in the UK market for August 2010? (Read More…)

When Renault and Nissan signed an agreement to form an alliance, few expected it to work. In fact, according to the book “Shift” (or was it “Turn Around”?), Bob Lutz was quoted as saying that Renault would be better off taking the money they spent on the Nissan stake, putting it on a ship, sailing it into the middle of the ocean and sinking it. Another accurate prediction from the One of Maximum Bullsh*t. The reason that the Renault-Nissan has worked so well so far is, according to Carlos Ghosn, communication. Without communication, how can you expect your partner to understand you? Sounds simple, right? Not to Hyundai and Kia. (Read More…)

A few days ago, TTAC reported that Vladimir Putin issued an ultimatum to foreign car makers, “invest here or else”. 4 days later, VW announced that they were planning a new assembly line at GAZ, and more capacity at their Kaluga plant in Russia. Coincidence? Probably. But it seems like others are following suit. Pretty bloody quickly. (Read More…)

As Germany tumbles, so does the rest of Europe (insert your own World War II or Euro currency joke here). As France, Italy and Spain withdrew their “bangers for cash” boondoggles, so did the public’s interest in new cars. The Wall Street Journal reports that in France new car sales dropped 9.8 percent compared to last year. However, according to the French car manufacturers’ association, if you factor out the extra working day in August, sales dropped by 14 percent. (Read More…)

When Ford sold Aston Martin to Prodrive, Ford retained a small stake in Aston Martin. But that isn’t the only venture in which Ford and Prodrive work together. Ford Performance Vehicles (FPV) is a joint venture between Ford and Prodrive based in Melbourne Australia. And they’ve just announced a range of supercharged V8 engines. Ford? Prodrive? Australia, home of hoon-mobiles? You have our interest… (Read More…)

People have a lot of fears with electric cars/extended range electric cars. Will the government subsidies distort the market? Can manufacturers be able to sell them profitably? Are they really that environmentally sound? But the one which gets everyone is “range anxiety”. Will I have enough juice to get me home? It’s an issue which manufacturers are dealing with in their own ways. GM has come up with their own way of dealing with it; they’re trademarking it: With range anxiety being trademarked, someone just dreams the word, and GM’s lawyers will be on top of him, and make him surrender the illicit dream. (Read More…)

Ferrari is sending engineers all around to the world to investigate “thermal incidents”. Now what’s a “thermal incident” you might ask? It ain’t a mistake that happens in your long johns, that’s for sure.

It’s corporate speak for “that supercar which you lashed loads of money on may catch fire in a big way.” (Read More…)

The Automotive World reports that Ford has agreed to a settlement with non-union employees and retirees who incurred stock losses. The plaintiffs brought the suit against FoMoCo because they lost billions of dollars investing their 401k’s into Ford during 2000-2006; a period when Ford’s stock price plummeted. The plaintiffs argue that Ford should not have allowed them to invest huge portions of their pension plans into the company. Now Ford’s defense (which some say invokes a level of personal responsibility) is that the claimants had plenty of time and opportunity to manage their pension plans and leave if they so desired. Who’s right and who’s wrong here? I’ll leave the Bill O’Reillies and Michael Moores of this world to debate that. Or TTAC’s Best and Brightest, whoever is available sooner… (Read More…)

Once a new car has reached 3 years of age in the UK, it has to undergo a yearly test to make sure the key components of a car are working, and that the car is safe. It’s called an MOT. This is not the drive-it-down-to-your-friendly-gas-station-and-get-a-sticker routine. It’s pretty rigorous. It is anticipated with apprehension.  Anyway, the MOT is reaching its 50th birthday after the test became mandatory in 1960. So to celebrate the MOT’s 50th anniversary, Nationwide Autocentres, a garage group that performs many MOT’s around the UK, conducted a survey (how about taking the MOT out and drinking lager until your head spins? THAT’S a good way of celebrating your birthday!). The survey consisted of the top 10 best selling cars in the UK.  Then they looked at their failure rates after 3 years (some people have far too much time on their hands). Shall we have a look at the results (via the Daily Mail)? Firstly, here are the contenders:

Ford Mondeo, Ford Ka, Ford Fiesta, Ford Focus, Vauxhall Astra, Renault Megane, Vauxhall Corsa, VW Golf, Renault Clio and the BMW 3-series.

All of these cars were surveyed at their first MOT (i.e. three year old). What the surveys doesn’t take into account is how hard they’ve been driven (that pretty much equals out) and it doesen’t say what exactly has failed (it’s not a loose knob of the radio that fails the MOT, it’s usually something expensive …. T’s PASS or FAIL.)

So, who “won” this survey of the highest rate of failure at their first MOT? I’ll give you a clue. Nissan didn’t bring reliability to their alliance. (Read More…)