Peter Valdes-Dapena is not what you’d call the sharpest automotive journalist on the blog. In fact, you could say that CNNMoney’s Automotive Editor has about as much killer instinct as Codium setchelli. In case you’re not up on your algae, this is the scribe who wrote a piece entitled “Why we need big hybrid SUVs.” So, now that Forbes Autos is out of the top ten slide show biz– in fact, out of biz entirely– Valdes-Dapena has decided to fill the gap. “What’s really killing Detroit” You want insight? We’ll give you insight! V-D identifies six issues confronting Detroit and gives six reasons why it’s no big friggin’ deal (i.e. why we shouldn’t let Motown’s meltdown get in the way of bailout billions). You got your SUV addiction (“They remain an important market segment for domestic automakers”); lack of small cars (“GM will also begin selling the new Chevrolet Cruze here in 2010”); lousy quality (“There’s no doubt that quality will continue to improve”); lack of hybrids (“GM now offers as more [sic] hybrid models – seven in all – than Toyota, which offers six”); union workers (“Pay isn’t the problem, it’s benefits. But the UAW has made significant concessions”); and your fat executive paychecks (“If big automakers do want help from Uncle Sam, they may have to agree to cuts in compensation). So what’s really killing Detroit? Photo captions like this: “GM CEO Rick Wagoner leads a company in trouble, but could anyone else have done better?” I know Pacific sea slugs that qualify.

As GM’s CEO tires to find federal cash to feed his company’s conflagration, his minions are busy throwing furniture into the fire. The AP reports that Buick has yanked courtesy car provision from its PGA sponsorship. “Buick will no longer supply include the U.S. Bank Championship in Milwaukee, the AT&T National in Washington and the Transitions Championship outside Tampa, Fla. The Shell Houston Open remains hopeful of keeping its Buick courtesy car deal.” Talk to Larry… “We’re taking a hard look at everything right now,” admitted Larry Peck, golf marketing manager for Buick. Ah, the good old days… “In some cases, the company provided 180 courtesy cars and a cash donation, receiving spots in the pro-am for Buick clients, car displays throughout the golf course and hospitality tents on the 18th green. At the John Deere Classic, Peterson said Buick donated a car for auction in its “Birdies of Charity” program.” And now…

(Read More…)

Senator Harry Reid has revealed the devilish details of the bailout bill for Motown’s meltdown. First, as predicted here, the Dems are sticking to their guns. They’re insisting that the money come from the preexisting $700b Wall Street bailout, not the $25b Department of Energy Loans (which would incur the wrath of environmentalists everywhere). Under the Congressional bailout plan, Detroit could stick their snouts into $25b worth of Department of Treasury funds exactly one month after the authorization receives the President’s signature (should he decided to so affix). Automotive News [sub] crosses the i’s: “If enacted, the bill would direct the Treasury secretary to accept loan applications from companies three days after it becomes law and would require a decision on the applicant’s eligibility within 15 days. Disbursement of funds would have to occur within the following seven days.” Or what? They turn into a pumpkin? As for those strings attached, they’re no longer of the Jewish maternal nature (i.e. made of piano wire). “Companies getting loans would have to grant stock warrants or senior debt instruments to the government. Top industry executives would have to give up bonuses and golden parachutes; stockholders would receive no dividends.” Oversight board? Perhaps when Harry met Nancy they read TTAC. It’s nowhere to be seen. But there are other caveats…

(Read More…)

The channel? Don’t you just love it when corporate speak bleeds over into the consumer-o-sphere, leaving customers clueless as to WTF the company’s talking about? Of course, TTAC’s Best and Brightest know that GM has launched a cunning plan to cull its dealers/brands by combining dealers/brands into four “channels,” and then letting them meld indistinguishably to the point where the individual brands don’t mean squat and any dealer who can’t make the unworkable work dies. You know, in about ten years or so. [Note to Rick: why don’t you see how Congress likes THAT plan?] Anyway, Buick/Pontiac/GMC. And I know the suspense is killing you. Or them. Well, someone’s dying. Oh wait! I know! Sales of the GMC Sierra Hybrid pickup truck, which “combines the fuel efficiency of a midsize sedan with uncompromised full-size truck capability, $39,365 (including $975 DFC) for 2WD models with the 3HA package and $45,500 (including DFC) with the 3HB package.” No, hang on. Maybe it’s the “all-new Pontiac G3 hatchback, $14,995 (including $660 DFC).” “All new” in the sense of America’s first crack at the hatchback version of the execrable Chevrolet Aveo. Remember: Pontiac is car. Not excitement. So, how can sales die before a new model’s launched? Simply a case of GM doing the time warp again.

In 1965 Porsche introduced the 901, the 2-plus-2 successor to the 356. The car,  designed by Butzi Porsche in 1963, wasn’t a clean sheet or revolutionary design. Even so, Porsche later changed the name to the iconic 911 due to a dispute with Peugeot, which claimed ownership to all cars with “0” as the middle digit.The early 911s were under-powered and gasp… underdeveloped until they lengthened the wheelbase in 1969, and gave it more power.The extra grunt arrived in 1970 via increased displacement, in the form of the 2.2-liter engine.

(Read More…)

WardsAuto.com reports that Ford is following up on its pledge to cut fourth quarter production by, wait for it, 211k units. That’s a 35 percent drop from year-ago manufacturing levels. To implement the cuts, FoMoCo is “temporarily” idling nine plants:Louisville, KY; St. Paul, MN; Oakville and St. Thomas, ON, Canada; Kansas City, MO; Avon Lake, OH; Flat Rock and Wayne, MI; and Hermosillo, Mexico. In terms of the who what when where and for how long and how much longer than normal, and whether or not people are getting paid to work (jobs bank-wise), Ford spokesfolk Angie Kozleski was slightly… vague. “In terms of down weeks, some may have been scheduled and some are new,” says Kozleski. “But we’ll continue to adjust production capacity to demand.” True enough, but it’s not the most reassuring thing a spinmeister has ever said.

We’ve often wondered how many cars Tesla has actually delivered to paying customers. The company claims there are some 60 cars out there, somewhere. Well, thanks to Jason Calacanis’ patience over the last two years, we can now bring you this update: 16. Well, at least 16, as Jason has just taken delivery of Roadster number 16 (says so right on the VIN plate). But wait! That’s number 16 after the “Founders’ Series” of 27 Roadsters. So that would be… 43! But wait! Calacanis says the numbers aren’t delivered sequentially. His is 16, but, ’cause he asked for special paint job, cars with higher VIN numbers may have been delivered earlier. Anyway, after an intro that makes the opening credits of the original Batman series seem like a subliminal message, the 169th edition of TWIT (This Week in Technology) reveals all. Calacanis describes the prototype Tesla four-door as an Aston Martin combined with a Porsche and a Maserati, and says Tesla’s problems are now behind it. Which probably means they’re dead ahead.

Subject: “PLEASE CONTACT YOUR ELECTED OFFICIALS IN WASHINGTON ASAP”

Delphi has been a part of the successful effort by auto suppliers in the U.S. to assure they are eligible for some of the $25 billion in direct, low interest federal loans to be used by the auto industry to accelerate development of advanced technology vehicles in the U.S.  Auto companies and suppliers are now applying for these funds, which won’t be available anytime soon.

But with the U.S. auto industry hit at every level by the global financial crisis, Delphi’s Detroit-based customers are now asking the federal government for further help that can be made available immediately, help that is critical to the industry’s survival.  Chrysler, Ford and General Motors are reaching out to their suppliers and other stakeholders for additional help, asking that Delphi and others contact Members of Congress.

(Read More…)

“Be it a famous Hollywood actor or pop star: anyone who is in the spotlight has to keep an eye on their fitness. Eibach have sent the latest VI version of the 26-time ‘millionaire’ VW Golf – one of the best selling cars of all times – to the gym: here, if desired, the Pro-Kit Performance Springs or the slightly ‘shorter’ Sportline Sport Springs can lower the centre of gravity of the car.”

In the legend of Faust, the protagonist sells his soul to the Devil in exchange for knowledge and power. Needless to say, things end badly for one member of the transaction (hint: it’s not the guy with the horns on his head). A “Faustian bargain” has come to mean a deal where you surrender what’s truly important to achieve an ultimately worthless goal. Yes, I’m talking about GM. If the artist once known as the world’s largest automaker avoids Chapter 11 via a bailout deal with Washington (a.k.a. Mephistopheles), the contract will ensure its final, irretrievable doom.