Posts By: Robert Farago
TTAC’s Edward Niedermeyer called it in yesterday’s round-up: Congress will fork-out bailout bucks to “tide” Chrysler, Ford and GM over until… later. Reuters dots a few i’s and crosses a few t’s: “Congressional Democrats and the White House have reached agreement on emergency aid for U.S. automakers of between $15 billion and $17 billion, two senior congressional aides said on Friday.” How Congress will apportion the money between the three supplicants is something of a mystery. But look for GM to get the lion’s share, Chrysler to get some and Ford to get a token amount (“token” as in more money than its workforce earned in the last ten years). Congressfolk are working through the weekend to attach strings to the money– likely to include an oversight board and a deadline for Round Three (March?). So from whence cometh this largesse? From your taxes obviously. More specifically…
Just a quick reminder that we’re still accepting nominations for TTAC’s Ten Worst Awards. As a pro and anti-Toyota Prius debate hijacked the original thread– unquashed due the passion and quality of the kerfuffle– I’ve decided to open a new post to allow more nominations in a cleaner, fresher, kindler and gentler commentarium. So if you haven’t chimed-in with your favorite worst vehicle sold in American (as new during calendar year 2008), please do so below. Again, please make your comments as pithy as poss, as we will be quoting the best in our list of final nominees. To refresh your memory, I suggest a cup of Clover-brewed Ethiopian Sulawesi. Woo-hoo! Sorry, what I meant to say: here’s the complete timetable via our dearly-departed though-not-dead-by-any-means Frank Williams. Note: we reserve the right to screw it up.
Thursday Dec 4: Nominations start
Sunday Dec 7 Nominations close at 12 PM
Monday Dec 8: List to writers to select semifinalists
Wed Dec 10: Writers have their selections back by midnight
Thurs Dec 11 : Voting on finalists starts as soon as I can get the poll built
Sunday Dec 14: Voting closes at midnight;
Monday Dec 15; Winners sent to writers for comments
Thursday Dec 19: Writers have comments back
Friday Dec 20: Winners announced
The National Motor Vehicle Crash Causation Survey (short form here) is a landmark study. It’s first time the National Highway Transportation Safety Administration (NHTSA) has tackled the issue head-on (so to speak) in nearly 30 years. According to the final report, “traveling too fast” was the “critical pre-crash event” in only five percent of the 6,949 cases studied. In fact, in 12.2 percent of crashes, the vehicle was “stopped.” “Turning or crossing at intersection” was the number one critical pre-crash event (36 percent), followed by “Off the edge of the road” (22 percent). That said, NHTSA found “driving too fast for conditions” [NB: not necessarily over the speed limit] and “too fast for curve” were the number one and two “decision errors.” But top of the pile only means they accounted for 8.4 percent and 4.9 percent of “Critical Reasons for Pre-Crash Event Attributed to Drivers.” The major culprit after the jump.
NADA Guides is one of the most objective and impartial consumer advocates within the automotive industry– providing you redfine the words “objective” and “impartial” to mean “your ass is mine.” National Automobile Dealers Association? ‘Nuff said. (As if.) Working for the dark side, NADA has primo access to primo product; their blog is, as of late, extremely Aston friendly. Yes, of course we’re bitter and twisted; it’s our m.o. But we gotta give NADA G [some] credit. Even though they provide no insight into their selection process whatsoever, their choice for Top Luxury Car of 2009 is both prescient (2009?) and, I reckon, accurate. The Audi A8 L is one Hell of a rig.
Dear oh dear. Now that The Big 2.8 have slashed their advertising budgets, now that the Congress has their CEOs in their sights, the MSM news nets have grown a pair. In today’s House action (Eddy’s on the bridge), a few pols have poked and prodded Detroit’s opposition to state emissions laws and federal corporate average fuel economy (CAFE) standards. But it’s nothing compared to this slam at Motown’s lobbying efforts. “Nobody is placing bets on whether Congress will end up giving the car companies a bailout. But if investments in Washington politicians count as leverage, then the auto industry has plenty of clout.” Iron fist in a velvet glove? The times they are a changin’.
Marketing Daily (but never on Sundays) reports on a new survey of car drivers’ feelings about their whips, vis a vis self-image. “In its online survey, Mintel asked consumers: ‘How do you feel when you are driving?’ and gave them 19 choices for a response. Three of the top four feelings chosen by respondents had to do with utility and security, per the firm, with 46% saying they felt ‘responsible’; 40% saying ‘safe’; and 37% saying they felt ‘practical….’ Mintel says that near the bottom of the list landed emotions like ‘powerful,’ ‘fast,’ and ‘sexy.’ The bottom of the list was ‘rich…’ Mintel found that 60% of survey respondents believe the main purpose of a vehicle is to get from point A to point B, and 55% say the true value of a car or truck is how long it lasts. Only 13% say they want their vehicle to catch other people’s attention.” Surprisingly, Marketing Daily sees this as a condemnation of car ads that use sex and speed to sell cars, ignoring aspiration. And the fact that no one in their right mind is going to say they bought a car to feel powerful or sexy– even if they did.
Not to red rag the bulls of our Best and Brightest oil-burning automotive acolytes, but iafrica.com pits the Audi Q7 4.2 FSI V8 against the BMW X5 3.0sd and the Lexus RX400h to find out which is the best way to propel a big ass five-passenger SUV with no off-road chops whatsoever. In case the suspense might have been killing you, scribe Michele Lupini rosebuds this sled from the first ‘graph. “The result is a bit of a shock, if you would excuse the pun.” OK, so, irony-free, Africancentric perspective on the hideous Audi Q7: “Its styling divides opinion — personally I like it but we have debated this one long and hard in the office and, to be quite honest, I doubt it’s an argument that will ever be quite resolved. Yes Q7 is bold, big and imposing — and it’s selling by the dozen so it must be popular…” Apparently, the turbo-diesel Bimmer sells by the two dozens. “As noted above, X5 is a pretty sharp driving tool and this is one of very few cars these days that still has a waiting list on it. And its premier turbodiesel driving experience is quite a hoot, let alone a most gratifying experience…” And now, the winner… (I love elipses too!)
You gotta love an autoblogger who writes “After all, the recent cancellation of the luxurious 4-seat coupe previewed by the concept CS shows that the current BMW management are acting, how should I say it… like a bunch of pussies.” [I don’t agree but I appreciate the, uh, Ehrbarkeit.] Anyway, our new BFF at auto-future has read the most recent paper version of Autobild (out today). The pub predicts that BMW’s about to go on a buying binge. “The strategy previewed includes BMW forming an holding in order to acquire positions in other companies, including a percentage of Daimler that allows a position in the board, and possible a Opel buy either alone or with Daimler and German government colaboration.” We’ll get ask our man Bertel Schmitt to pick-up a copy at the train station and provide a more complete translation. But given GM’s DC begging bowl debacle (part two today rock the House), it’s increasingly clear that it’s only a matter of time before someone grabs GM’s Euro-brand. Or at least the best bits.
Update: In the meantime, Bertel Schmitt picked up a copy of Auto-BILD at the train station. He called in and said “They are talking menace a trois!” Between BMW, Mercedes and Opel. He said, it’s just a scenario, written up by the magazine. We’ll hear more when he has found an Internet Cafe in Berlin.
Bertel from the Internet café: “Not much to report and translate, boys & girls: Wild assed rumor it is not. It’s pure, unsourced speculation by Auto-BILD (after all, they are the car offshoot of BILD-Zeitung, famous for its “Man Bites Dog” style.) They think, it would be a swell idea if BMW and Daimler would join forces (if someone finds a way to sedate their engineers, they will.) Then, with some government money, they could take Opel off the hands of GM. And ACHTUNG: A pure, true and true Germanic car company. Nice idea. Next idea, please! However, the “report” reflects what we’ve said for a while: Nobody in Germany doubts that Opel will leave GM. Everybody just speculates about the how and when.”
For years, I’ve been trying to convince one of our GM moles to provide some anonymous insight into the boiler room of the Titanic. This is my most recent reply, reprinted with permission. “Its not that I am no longer interested in at least giving it a whirl– Robert I gotta be honest with you, the position I hold within the Corporation as well as the UAW would almost spell doom for me personally if I would ever post under my actual name… Given all that’s going on right now, its not uncommon for me to take work home and plug away a 18 hr. day. Some on the site that I believe work for GM are refering to high stress/bunker like mentality and I can attest to this. Watching grown men cry that have always behaved somewhat professinally is discomforting at best. I personally hope this is not the end as my march toward insolvency would only be preceded by GM itself. I’m not wealthy nor sheltered by past savings or 401k. And I sure as hell would have a hard time explaining that I’ve spent the last 5 years as a XXXX for the UAW. Gotta think that my choice in this matter would sink my resume quicker than a manhole cover in water… My personal daily feelings are as follows when at work: one part fucked-up chapter of McBeth read in pig-latin; one part daily interaction with people that look and act the part of droogs in Clockwork Orange. And all the while the Doors “The End” playing in the background.”
Couric You came from Home Depot to run Chrysler. You had to be a quick study, but from what you’ve learned, what was the U.S. auto industry’s biggest mistake?
Nardelli: Well I think, look, we’ve all made mistakes. I’ve been in business for 38 years, and whether I was at GE or Home Depot or Chrysler, I think the important thing now is to look at this crisis. How do we make sure that we are repositioning ourselves that we break from some of those old paradigms to make sure that we are making new products that we are delivering service to customers, the kinds of cars and trucks they want to drive, have the conficence to drive and will tell their friends about it, Katie.
“Robert, I am not sure if this appeals to your audience but we have quite an interesting feature on Lotus Cars just published. It is the first time anyone has been allowed to film the Hethel circuit where all Lotus chassis are developed. Gavan Kershaw who is their senior chassis engineer talks readers around a full lap of the circuit and shares some of his insights into what makes a ‘perfect lap’ in the new Lotus 2-Eleven GT4. We also review the Lotus 2-Eleven GT4 in full detail.”
Steve Davies
Managing Director
Drivers Republic Magazine
TTAC’s Deep Throat has resurfaced from points unknown. To make up for his extended absence, he’s got a major scoop– you know, if it goes down. He tells us that GM’s Franchise Operating Team (eight dealers and eight factory guys) will decide the Saturn brand’s fate next Thursday. “It’s not looking good for the different kind of car company,” DT intones (should such a thing be possible via email). He reckons Saturn will be terminated. “Some key vehicles will be parceled out to other brands. Possibly.” The payoff for Saturn dealers to crawl off into a corner and die is unknown, perhaps unknowable. Anyone want to guess who’d end-up paying for it?
You know you’ve got trouble when your company’s having a very public congressional colonoscopy and the first question your in-house PR team throws at the Chief Financial Officer is “Why are you confident GM has vehicles the public wants to buy?” Uh, guys? Ray’s a beancounter. You know, accountant? Like Rick. And Fritz. If you want someone to explain why our cars are so wicked pissa talk to Bob Lutz. Oh wait. OK. Carry on. (BTW: Did GM hire Bill O’Reilly to teach Ray how to gesture? If so, it didn’t work.) After his warm-up, Ray tells the faithful that GM has done a lot to restructure over the years. In fact, if I hear that one more time, I will finally surrender my grip on reality and equate GM’s failed attempts to rectify all its other failed attempts at “right-sizing” the company as akin to saving fresh-faced orphans from members of the Man Boy Love Association. BTW. Do you want to know why GM is doomed? Because Ray Young honestly believes GM now has a focused branding strategy, bolstered by brand-new “incremental actions,” which will speed-up GM’s previous [targetless] turrnaround plan. Which was going great before GMAC Wall Street screwed-up the U.S. economy. Or so I hear.
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