Before you delve into the fact and substance of this “new deal” for Detroit, note: Senate Republicans are threatening to torpedo this boat before it leaves harbor. The Detroit News reports “Some Republicans remain strongly against the idea of bailing out Detroit automakers. Sen. John Ensign, R-Nev., told CNBC on Tuesday he was considering trying to thwart a vote. “I think that not only myself, but several of us will be looking at possibly blocking this package,” Ensign said. White House chief of staff Josh Bolten plans to attend a Senate Republican lunch today to try and win over skeptical lawmakers. Democrats need 15 to 20 Republican votes to reach 60 in the Senate — the hurdle to end debate and proceed to a vote.” OK, the new “key provision:” the automakers must prove that they’re doing the right things to a car czar by March 31. Otherwise, it’s C11 for you bub. Oh wait, sorry. The czar has the power to grant a one month extension. And he or she could call back the loans at any time. And he or she must approve all transactions over $100m (up from a paltry $25m). Gentlemen, meet the new boss. Is there more? What do you think?

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someone said…poor Rick, he just inherited too many difficulties…

I replied…

do you have all night? he could have stayed away from Zarrella, he could have left John Rock alone at Olds. he could have shut Saturn down long ago. he could have stayed the hell out of Fiat. could have kept Delphi inhouse, could have held marketing staff resposible. could have ousted Deloitte and rotated auditors to generate accurate and truthful financials, and of course…could have let LaNeve go forward with implementing Return to Greatness.

he could have kept an eye on Eric Feldstein at GMAC and not let mortgages be written that would jeopardize the future of GMAC. he could have listened to Jerry York and changed the Board meetings to an actual working environment. he could have detailed plans and earnings guidances instead of offering nothing more than that smug smirk, stutter, and eye twitch.

he could have held annual meetings in Detroit where the people are, he could have gathered individuals from the industry for the Board instead of British Petroleum, Goldman Sachs, and Astra Zeneca. he could have kept the great car names of our past, he could have put people to work in some capacity instead of idling them in the Jobs Bank. he could have let natural attrition replace long term employees over time instead of throwing money at them with reckless abandon. he could have left the retirees alone to enjoy their well earned security (after all they are our greatest ambassadors). he could have should have but didn’t

Anyone remember the good old days, when TTAC manned the barricades in the fight against federal subsidies to a corn-based ethanol industry that made little sense for anyone but the corn-based ethanol industry? Rest assured, we haven’t de-listed our “E85 BOTD” (Boondoggle of the Day) category. We’ve just been a little… preoccupied with that other call on the public purse emanating from the city whose motto is, ironically enough, Speramus Meliora. And while we’ve been away, the price of imported oil– and thus gas– has dropped precipitously. Even copious federal subsidies (.50 a gallon “blender’s credit” to start) hasn’t been able to shelter the E85 folk from that particular reality. In fact, E85 sales are pretty much shot. Kaput. It’s got so bad (good?) that E10 (10 percent corn juice) is now falling by the wayside.

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Autocar reports the TTAC-predicted cratering of new Ferrari sales. “Global sales at the Italian supercar maker have dived from almost 600 a month to just 92 cars in November and Ferrari is now negotiating with Italy’s trade unions to trim unwanted road-car production staff.” And it appears (ya think?) inventories are building-up. “Ferrari will also shut its Maranello production plant for an unprecedented 20 days over Christmas, which sources insist will be to prevent vehicle stockpiles reaching unmanageable levels.” Uh-oh? No! “Ferrari has denied that the company has been adversely affected by the credit crunch. The company said that the extended break was merely Ferrari being generous to its employees.” It gets worse…

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Elephant Trashes Jeeps

Date: 12/08/2008 Ref. number: Marketing /  Programs and Promotions /  G_0000017071
Subject: GM Dealership Employee Discount for Family
——————————————————————————–
Beginning Monday December 8, 2008, GM is offering a temporary program allowing GM Dealership Employees the opportunity to offer GMS (Employee Discount) pricing to the same eligible family members that GM Employees do.

This means that GM Dealership employees can offer GMS pricing to their spouse, children, stepchildren, grandchildren, stepgrandchildren, grandparents (including in-law and step), parents, stepparents, siblings (including full, half and step), mother/father in-law, sons/daughter in-laws, brothers/sisters in-law, and same sex domestic partner (SSDP) where applicable (NOTE: Eligible SSDPs are treated the same as spouses, and therefore, their dependent children and stepchildren are also included).

Eligible family members must take delivery by January 5, 2009 and may only purchase GM vehicles that the employing dealership location is franchised to sell or from GM dealerships owned by the sponsoring Dealer Operator at the time of delivery.  The program excludes Saab vehicles.

To get an authorization number for your family member, log in to gmded.com and select “Dealership Employee Discount for Family” along the left.  Enter your eligible family member’s date of birth and zip code and get you authorization number

Authorization numbers for this program must be submitted for payment to BARS by January 5, 2009.

——————————————————————————–
Contact name: Program Headquarters E-Mail:
Department: Marketing and Advertising – CRM NVPP Marketing Phone: XXX
Intended roles: Internet Sales Person,  UItest,  Parts Manager,  General Sales Manager,  Medium Duty Sales Manager,  Internet Sales Manager,  Wholesale Sales Person,  Warranty Administrator,  Used Vehicle Sales Manager,  Used Vehicle Sales Consultant,  Title Clerk,  Systems Manager,  Service Manager,  Service Advisor,  Parts Inventory Manager,  Parts Counter Person,  Parts & Service Director,  Office Manager,  New Vehicle Sales Manager,  New Sales Consultant,  Medium Sales Coordinator,  Inventory Manager,  HR Manager,  General Office Support (Cashier),  General Manager,  Fleet/Commercial Manager,  Fleet Sales Consultant,  F&I Manager,  F&I Director,  Dealer,  Business/Accounting Manager,  Body Shop Technician,  Body Shop Manager,  Sales Functions,  Sales Management
Archives: 01/08/2009

Automotive News [AN, sub] headlines its story about the cutbacks in auto industry ad spending with “We’ll all be singing Motown blues in ’09.” What do you mean “we” white men? According to AN, “Long-term media plans are history, and buys are being made month to month or even day to day. More ‘accountable’ media such as interactive are likely to be stressed.” We’re interactive, aren’t we? Accountable? Anyway, TTAC is a lean, mean news, reviews and rants machine (i.e. it’s run a by a nutter in the attic). But those automotive organizations with high-priced talent and big overheads (i.e. everyone else) are looking at some serious pain. “GM’s recovery plan, turned over to Congress, calls for it to cut a massive $600 million out of its marketing over four years. Ford will trim up to 10 percent of its outlay next year, which could result in another $100 million moving out of the market based on its measured spending of $757 million in the first nine months of the year… Chrysler is staying mum on its spending plans, but it’s a good gamble that the automaker will have to slash a big chunk of the $579 million TNS tracked it spending in the first nine months of this year.” I suggest that Motown’s media cheerleaders and apologists file this one under “be careful what you wish for.” Check out the tone after the jump.

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Yesterday, we took Autobloggreen (ABG) to task for running a thinly-veiled pimpatorial for the new Mercedes-Benz GL320 BlueTec. Their post was disguised as a celebrity trend piece, supposedly informing eco-readers that Hollywood eco-warriors were exchanging their Priora for an equally PC Mercedes-Benz GL320 BlueTec diesel. We so busted them, from the manufacturer’s plates on the carefully-posed cheesecake shot’s whip, to the fact that ABG printed the entire MB press release verbatim. And now, surprise! They’re reviewing the Mercedes-Benz GL320 BlueTec. And do they like it? What do you think? But there is humor here, to be sure. “The garish graphics on the GM hybrid SUVs scream out to the world, ‘look I bought a hybrid! even though I’m still driving alone in an a 6,000 lb, seven passenger SUV!’ The Mercedes, on the other hand, only has discreet BlueTec badges on the front fenders and the tailgate. Aside from that and the GL320 badge, there is no other indication that this vehicle can get mileage in the mid-20s.” Whoa! Mid-20s? In an SUV? ABG’s planet saving mission is go! With 11k worth of options, no less…

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TTAC’s Deep Throat sent us the heads-up: as predicted here, GM and Chrysler suppliers are now asking for cash in advance. “Both GM and Chrysler are responding with form letters denying such requests,” DT reports. “BUT – GM’s letter is full of obfuscation; Chrysler’s is more direct and forthcoming. I was read both letters sent in response to a supplier’s request. Unfortunately, I cannot supply these letters to you due to my source… The problem is that GM & Chrysler’s cash flow vanishes when dealers stop ordering new rigs – like now. Hence, bankruptcy is imminent for both companies and that’s why suppliers are starting to posture for cash on delivery. A bailout changes things. But only for a while…” True dat. Uncle Sugar’s “support” will put an end for cash-on-the-nail demands. But it’s important to keep in mind that both GM and Chrysler need a “float”– estimated at $10b for GM– to keep the parts flowing and the lights on. The instant taxpayer money looks to dry up (i.e. March), they’ll throw both companies into Chapter 11. In Chrysler’s case, maybe sooner.

Via The International Herald Tribune: “ZAGREB, Croatia: Croatian police say a driver has deliberately crashed his car into the entrance of the Parliament building. No one was injured. Zagreb police spokeswoman, Aleksandra Ljuba, says the 34-year-old was arrested on the spot Monday. Police did not identify him. Ljuba says the motive is not known, and the man is being kept for questioning. Both the car — an old Yugo, a cheap vehicle once produced in Serbia — and the building’s doors were damaged. The driver apparently surprised the guards at the St. Marc’s Square, which is also a site of the government building and the Constitutional Court.”

Wow, that was quick. Even before we could get a hold of the new bailout bill, the name of the new “viability advisor” has emerged from the political fug hanging over Washington. And the man who will control the fate of America’s automakers is… Kenneth Feinberg. The MSM (e.g. AP) is touting the man who would be Czar as the “the lawyer oversaw the federal Sept. 11 victims’ compensation fund” (AP). Which is a strange, deeply foreboding background for this gig if you ask me. But you didn’t. So I asked Wikipedia to give me the inside dope on El Czarino. “Originally from Brockton, Massachusetts, he worked for five years as an administrative assistant and chief of staff for U.S. Senator Ted Kennedy, and as a prosecutor for the U.S. Attorney General. Before founding his own firm, The Feinberg Group, in 1993, he was a founding partner at the Washington office of Kaye Scholer LLP.” Feinberg wasl also a key figure in other major compensation disputes, including the use of Agent Orange in Vietnam and the Dalkon Shield birth-control device.

Here’s a copy of the draft Detroit bailout bill. While we digest it, here’s what we know so far… Automotive News [sub] says that yes indeed, there will be a car czar. Appointed by President Bush. The Freep is more specific. “Under the bill, automakers would have to submit a restructuring plan by March 31 to what’s being called a ‘financial viability advisor,’ who would have the power to set negotiations among the company, unions and creditors. If the advisor deems the company isn’t making progress, the loans could be called back.” In other words, he or she could throw The Big 2.8 into bankruptcy, without passing go, without collecting $34b (just some of it). Well, fair enough. But from there, things get seriously gnarly…

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