Tesla’s heading down the home stretch here on Ye Olde Death Watch. Autocar reports that the Silicon Valley-based EV-maker says its cutting one fifth of its UK workforce. The number of Tesla employees laboring at Lotus’ Hethel factory, where the Tesla Roadster is born, has slipped from 50 to 40, or less. ““We deeply regret the necessity of making redundancies at the Tesla Hethel facility,” said Don Cochrane, UK sales and marketing director at Tesla Motors, who’s still cashing a nice fat paycheck (as far as we know). “It is in the interests of the longer-term health of the company to act prudently now.” Or, perhaps, before. Never mind. Facts never had much currency in Tesla-land, for either the company’s principals or the sycophantic scribes who parroted their PR. For example… “Since the £90,000 Roadster was launched, 125 examples of the groundbreaking electric sports car have been ordered across Europe. All of these are assembled at the Hethel factory at a rate of 40 vehicles per month. Tesla insists this production rate won’t be affected by the staff cutbacks.” Forty a month? Geddowdahere!

These are turbulent times. Over the course of the last week, we’ve watched GM PR (a.k.a. “unnamed sources”) pimp a nonsensical merger between The General and Chrysler. Then, at the eleventh hour, the “deal” was retracted without comment (thanks to the U.S. Treasury Department’s refusal to bankroll the pre-bailout orgy). As regular readers will know, Friday afternoon is the witching hour for GM’s bad news, so that the markets can chill-out before dumping yet more GM stock and downgrading GM’s credit [even further] into irrelevance. So now we have an info limbo. Will the deal go ahead anyway? If not, when will Chrysler file the resulting, inevitable Chapter 7 liquidation? Into this void some tipsters step. Deep Throat tells us GM’s putting its research and development facilities on ice– and not just to save a few bob. Nope. It appears that The General is about to kill– as in starve to death HUMMER-style– Saab and GMC. Oh, and commercial trucks. That would leave Chevrolet, Cadillac, Pontiac, Saturn and Buick. (I know: Buick?). Anyway, something’s going down on Monday. The leakage should start tomorrow.

In a “web exclusive,” Newsweek scribe Keith Naughton pens a post-mortem on ChryCo that could have been lifted whole from these very e-pages, right down to the headline (“Chrysler R.I.P“). Former ChryCo CEO Lee Iaccoca’s refusal to talk about his ex-employer’s looming extinction due to melancholy, apparently, is pretty much the only factoid of interest to TTACers. But there’s a forest-from-the-trees thing happening here. If Newsweek’s editors had placed Naughton’s eulogy on the mag’s front cover, the story would have broken-out of its financial press backwaters into the media mainstream. And that would be the final nail in Chrysler’s coffin. Lest we forget, Joe the Carbuyer is still unaware that purchasing a Chrysler product is akin to booking a steerage-class cabin on the Titanic. Which is wrong. Once again, a major media outlet is protecting its advertisers at the cost of its readers’ best interests. Someone should tell potential Chrysler buyers the obvious dangers they face. You know, other than little old us.

Today, on World’s Most Extreme Detroit Apologists… Forbes’ Senior Correspondent Jerry Flint goes all the way on a federal bailout for Detroit– he even says GM’s management doesn’t have its noses in the trough. That’s right. Our man Flint thinks that the tens of millions of dollars shovelled into GM’s CEO Rick Wagoner’s pocket each year, not to mention the pockets of his non-performing pals at the top, are nothing more than fair compensation. Despite the fact that GM’s stock price has tumbled from $40 a share to less than $5, despite the huge loss of American market share, despite a cash conflagration that threatens to burn GM to a crisp, Flint says the big bucks belong to the bailout queens. “The leaders of GM have made their mistakes–plenty of them–but they didn’t enrich themselves beyond decency as those other executives did. Today’s economic problems, brought on by subprime mortgages, credit default swaps, a credit freeze and a stock market collapse, were caused by those other folks.” What’s more Flint says America owes GM a bailout because the General saved the country during World War II– completely ignoring GM’s contribution to the Nazi war machine. Flint concludes his dietribe [sic] by repeating the old saw, “What’s good for America is good for General Motors–and vice versa.” We say what’s good for Jerry Flint is a mega-caffeinated dose of liquid reality. Before it’s too late.

While TTAC’s been busy chronicling the fall and fall of American automakers’ 100-year hegemony over the domestic auto industry, Autoblog’s been keeping its audience appraised of the latest modded cars, Mustangs and SEMA showpieces. Fair enough. We’re proud to be able to relieve AB of their obligation to blog hard news.  But every now and then, AOL’s auto-bitch feels compelled to weigh-in on matters weighty. Normally, they take a predictable editorial line on Detroit’s disasters. That sucks. Good luck! And don’t don’t forget to park your latest whip in the Autoblog Garage. Thanks! So when there’s a change of tone at AB, it can only mean one thing. That REALLY sucks. Chris Shunk provides our excursion to the dark side of the moon (snicker snicker). After reporting on the Treasury Department’s “Just Say No” response to funding the GM – Chrysler merger, Shunk sums-up Motown’s End of Days, AB-style. “There is no doubt these are very troubled times for the U.S. auto industry, and it seems everything is happening very quickly right now. Most forecasts are pointing to a similarly dismal 2009, too, so this mess is far from over.” Thanks for the heads-up.

You may recall that Chrysler shut down the factory producing Hemi Hybrid Dodge Durangos and Chyrsler Aspens— despite ChyrCo spinmeister Scott Brown’s absurd contention that they had plenty of orders for same.  Wee a GM hybrid guy talking to a Chryco hybrid guy told one of our guys that the ailing (as in zombie) American automaker built 400 gas  – electric Durango/Aspens. Which are now headed for the crusher. Apparently, Chrysler doesn’t want to support only 400 vehicles in the system. Crushing vehicles is no biggie for an automaker; early press and other pre-production vehicles are routinely destroyed to avoid liability problems. This is the first time I’ve heard of a post-production vehicle suffering the same fate. You know; if you exclude the EV1.

Today is officially Freak-Out Friday for GM car dealers. As we reported earlier, GMAC is pulling the rug from under/hoiking-up the cost of dealer floorplan finance, the arrangement that allows dealers to buy the damn cars. And now Automotive News [sub] alerts us to the fact that General Motors is pulling the plug early on a certified used-car financing program. “GM had announced a financing incentive program through GMAC Financial Services that would start Oct. 1 and run through Jan. 5. The program offered 3.9 percent consumer loans for 60 months on all used models of the Chevrolet Impala, Pontiac G6 sedans and Chevrolet Silverado and GMC Sierra trucks. But on Oct. 17, GM sent a notice that it would end the program Nov. 3, McDonald said. As a result, many GM dealers worry they won’t be able to move the inventory they built with the understanding that the program would run through Jan. 5.” This is a swimming pool of not good for GM’s dealer relations, should such a thing exist anymore. “Obviously, the dealers are our customers,” GM spinmeister John McDonald dervished. “We want them to be successful, but you can’t get to the point where you’re putting yourself in financial difficulty.” Can someone please shoot John an email on that financial difficulty thing?

TTAC commentator Redbarchetta writes… “I was wondering after seeing that NASCAR picture in the latest post. Has there been any word on what happens to NASCAR funding? I’m mainly talking about GM and Chrysler since they are closest to death and cutting EVERYTHING. It would make sense that they would stop supporting that also. I’m really not even a huge NASCAR fan so I don’t even know how something like that would impact the sport. I was also wondering, just for kicks since the government won’t let it totally collapse, but what happens to NASCAR if Detroit folds and they have no more manufacturer support or sponsorship? Would the sport collapse also or just become the Toyota Camry-athon?”

Bloomberg reports that GMAC has sent “Dear John” letters to an unspecified number of GM dealers. One of the missives informs GM stores that the captive financier will no longer provide them with financing to buy vehicles. “Turbulence in the markets reduced our access to funds and increased the cost of funds where available,” GMAC Chief Executive Officer Al de Molina explains. “In response, we adjusted our credit policy to reflect the reduced level of funding availability.” GMAC has also sent notification to other dealers– which could include some of the previously mentioned ones– that the franchisees will have to start repaying their loans after financed vehicles have been on lots for 180 days. Hang on; is this part of a conspiracy by GMAC’s majority owners– Chrysler-owners Cerberus Capital– to force GM to buy ChyrCo? No se. Meanwhile, more details on the changes after the jump. Meanwhile, bye-bye GM dealers. “You’re increasing their payments or you’re taking away financing altogether for a lot of dealers, which basically has the effect of shutting many of them down,” said Denny Fitzpatrick, chairman of the California New Car Dealers Association and Fitzpatrick Chevrolet Hummer in Concord, California. “Dealers just don’t have that cash lying around.”

(Read More…)

Here’s a press release which assumes, I suppose, that I have at least one wife who qualifies as a minority. Actually, Sam’s an African American, originating as she does from the RSA. Anyway, AutoBrag.com‘s playing the “HERE’S A STARTLING SURVEY, BUT DON’T WORRY ABOUT OUR METHODOLOGY” PR game, and playing it well. And here’s how they did it! “We sent out 87 pairs of observations [sic] to compare how the best price difference between the White Males, verse [sic] White Females, Minority Males and Minority Females to 35 Southern California new car dealerships to keep track of how each pair with different race and gender only would be treated by the salesperson. The results are astonished. [sic] The race, gender, and car make affect the price American consumers pay for their new car significantly. And, again, the differences of the best price between different race and gender are even greater if one considers the long-term financing and opportunity costs throughout the lifetime of the new car purchase.” How’s that for statistical control? Does that fact they were all “college kids” influence your opinion? Those of you who wish to get a closer look at the race card in Autobraggadoccio Danny Chan’s hand can make the jump for the results.

(Read More…)

Wired magazine has mailed its real world subs a “Wired How To” mini-magazine. Within its pages, they’ll discover a section entitled “Get 50 mpg in a Buick.” To achieve this remarkable gas-miserly feat, the mag recommends that hyper-mileage seeking missiles (that’s you) turn the key off when you’re coasting. There’s no warning that turning the key off will lock the steering and kill the power brakes. Admittedly, the eds suggest you “turn the key back a notch so the engine shuts down.” But I’m sure some naif will either accidentally or purposely turn the key all the way off. And even if they do it correctly, they’ll still lose power steering, which can come as a shock to a 100-pound woman (naif waif?). Wired also advises motorists looking for mythical mileage to “inch up behind an 18-wheeler and kill the engine as you enter its slipstream. You’re drafting now, getting pulled along by the truck’s gas instead of your own.” Yes, they admit it’s “dangerous.” Especially when the truck driver gets pissed and taps his brakes. And as your own binders have lost power assist with the engine off, that could be something of a problem. So, anyway, how do you change your own oil?

(Read More…)

We can’t emphasize enough the importance of cupholders when choosing or enjoying you daily transportation. For one thing, they provide enormous health benefits. In terms of avoiding avoiding dehydration, cupholders are literally life-saving. Before cupholders, thousands of American motorists died of heat prostration. Many a family road trip turned to tragedy, as sweating children nodded off and expired; their parents, grateful for the silence, oblivious to their progeny’s distress. And then there’s cupholders’ positive effects on caffeination, a proven boon to overall driver alertness and ability. The preventative effects of cupholders regarding third degree burns from the aforementioned caffeinated beverages are legendary. Although the auto detailing industry has suffered from a huge decrease in spillage since the advent of the cupholder, we believe that the cupholder is landmark of human engineering and ingenuity, making our lives safer, more comfortable and convenient one Big Gulp– or Clover Burundi– at a time. In that spirit of celebration, we present to you TTAC’s top ten cupholders, as chosen by our readers in a highly scientific and entirely non-democratic process. [NB: due to programming, er, stuff, please leave your comments on this, the post’s main page. Unless you feel compelled to do otherwise.]

“A bankruptcy of any of the Big Three could be even worse, a harsh reality considered unthinkable a year ago.” So says Detroit Columnist Daniel Howes in his latest column— despite having discussed (and dismissed) GM’s C11 with me two years ago. As proof that a year is an eon in politics, presidential candidate Barack Obama is promising personal intervention in Detroit’s downfall, telling a TV interviewer that he would meet with all the parties concerned, without preconditions. “Sen. Barack Obama, D-Ill., said in a TV interview that if he were elected president, he would meet immediately with the heads of Detroit’s automakers and the UAW to discuss a strategy to make the industry globally competitive. ‘The notion that we can’t compete in an industry that we created I think is, you know, unacceptable. And not only that, but you’ve got an entire Midwest, Ohio, Michigan, big chunks of Indiana, parts of my home state of Illinois, that — the entire fabric of those, those states’ economies are built around the auto industry,’ Obama said, according to a transcript from NBC News.” I wonder what they’ll talk about *cough* bailout *cough*. Meanwhile, the DetN acknowledges our last story: the White House says a GM – Chrysler merger subsidy isn’t on the cards. But the hometown paper claims GM hasn’t given up.

(Read More…)

“Earlier this week, industry sources said GM had asked for roughly $10 billion in an unprecedented government rescue package to support its acquisition of Chrysler from Cerberus Capital Management LP,” Automotive News [sub] reports. Today, we learn that “The U.S. Treasury Department is not negotiating with General Motors and the owners of Chrysler LLC on a request to provide direct government aid to their proposed merger, a Bush administration official said today.” Uncle Sam’s reluctance to grease the deal’s wheels puts it in serious doubt. As in kills it dead. Which raises a familiar question: what the Hell was the point of this merger thing, anyway? There are two main theories. 1) GM viewed Chrysler as a cash grab and 2) GM is/was/wanted to position itself for a massive federal bailout. Proponents of theory two suggested that the feds strongly favored a GM – Chrysler merger so they could then bailout two Dodos with one stone (or something like that), and “save” Chrysler’s jobs. When it became clear that no such jobs rescue was possible, the Treasury balked. Assuming the American Leyland deal doesn’t go down, all that’s left for Chrysler is Chapter 7 liquidation. Yesterday’s Wild Ass Rumor of the Day– which had GM and Renault/Nissan carving-up Chrysler– could well be ChryCo’s pre-C7 valuation process. As for GM, one way or another, they’ll get their own damn bailout. Too big so they failed is still seen in D.C. as too big too fail. At least until the election’s over…