Define huge. And can we have a time frame please? According to CNNMoney, "JP Morgan analyst Eric Selle estimates GM will spend $1.8 billion if the strike lasts a month, based largely on hourly wage costs, according to a research report earlier this month." So that's besides the damage inflicted by the drying-up of dealer orders (GM books vehicles as sold when they leave the factory). Meanwhile, the United Workers (UAW) and American Axle (AA) are both toughening their positions. According to Automotive News [sub], the parts maker is threatening to further downsize its U.S. operations– two New York plants are due to close– if its UAW workers don't take a wage and benefit cut. UAW Prez Big Ron Gettelfinger went on radio to give AA a tongue lashing for dictating rather than negotiating terms. So far, the strike has idled 29 GM factories. For their part, GM spokeswoman Renee Rashid-Merem said the company "isn't commenting on the potential financial impact or on any analyst estimates." You know, other than Wagoner's assessment that it's no biggie.
Posts By: Robert Farago
If you're looking for the U.K.'s most fanatical speed enforcement acolytes, head on down to Wales. (Or not.) The country has been waging a jihad against speeders for over a decade, including fleets of unmarked, speed camera-equipped vans (a.k.a. Talivans) parked on highway overpasses, around corners, etc. Now that the heddlu (police) have alienated hundreds of thousands of drivers both old and young, they've decided to launch a charm offensive– of sorts. At the taxpayer's expense, they've pimped out a van for "youth education." Pistonheads reports the cunning plan: "The idea is to infiltrate cruises and car park gatherings, and when the young drivers come over to have a look at the van – which is fitted with a pumping sound system – they are hit with information on how to stop being a nuisance." One wonders about local residents' take on noise nuisance, and how glad the Max Power crowd is to see Officer Plod, no matter how fly his whip.
At the moment, electronically enhanced night vision is only available on the BMW 5-, 6- and 7-Series and the Mercedes-Benz S-Class sedan. Our spies tell us that Bimmer's Night Vision option ($2200) is a drug on the market. Merc's Night View Assist would be similarly unloved if it weren't part of a $6190 options package. WardsAuto.com reports that the gizmologists supplying same say their second gen systems will bring the technology to the masses. In fact, Autoliov confidently predicts that sales of their proprietary technology will soar from today's 20k to 2013's 1m units per year. Autoliv's prognostication is based on a J.D. Power & Associates customer survey re: new-vehicle features. Night vision ranked fourth on buyers' wish list– and dropped to 18th when the price was disclosed. Yes, well, the new system is better than the old (surprise). "With the hardware looking for heads, arms and legs and the software evaluating data for false warnings from light poles and tree stumps, [Autoliv MD Stuart] Klapper says drivers typically will get a four-second warning on the night-vision monitor of any living thing in the vehicle’s path." At what speed? As the average vehicle requires about three to four seconds to stop from 60mph (at best), no matter how you parse it, the system is not ideal for Knight Rider wannabes. Just sayin'…
No, not those guys. I'm talking about people who don't talk about cars. Apparently, there are a lot of them. In fact, my wife and I went out to dinner with a couple who had no desire to talk about cars at all. Which is fair enough. As a journalist, I enjoy talking to people about their work and interests. But no, that wasn't good enough. He had a question: "How in the world can you talk about cars all day? You drive them, write about it, and then what?" I tried to explain that cars touch on all aspects of life: physics, chemistry, high finance, psychology, law, philosophy, computers, etc. I told him about TTAC's Best and Brightest: our computerized conclave of experts drawn to the site from all walks of life. Enthusiasts who bring a huge range of disciplines to bear on all things automotive. My dinner companion nodded sagely, considering all that I'd said. "So do you think I should trade my Mercedes for an Infiniti?" Like politics, all car talk is local.
According The Wall Street Journal, New York governor Eliot Spizter admits he "failed to live up to the standard I expected of myself." Whatever. As Client Number 9 continues his fall from political grace, Empire State motorists are breathing a sigh of relief. The scandal effectively kills Spitzer's plans to remove the state's gas tax cap. If he'd been successful in that endeavor, the potential indictee's Petroleum Business Tax (PBT) would have elevated gas taxes by nearly $56m per year. The Hudson Valley Times also reports (retroactively) that "Spitzer Car Tax" would have increased NY's registration fee from $5 to $20. Oh, and Spitzer also supported Thruway toll hikes. So, once again America's hopes for freedom from onerous taxes begin with the Mayflower. [thanks to starlightmica for the link]
The Florida Department of Environmental Protection’s Renewable Energy Technologies Grants Program is forking-over $1.5m of residents' hard-earned tax dollars to an incipient E85 producer making ethanol from sweet sorghum juice– rather than corn squeezins. Discounting all the Starbuckian Fair Trade blather– the Renergie company wants to build small local plants, give farmers a royalty from [theoretical] E85 sales, etc.– sorghum's advantages over corn include less pesticides and water requirements, higher yield (4700 to 7500 liters per hectare), rapid growth and the ability to grow marginal soil. Yes, well, as Checkbiotech reports, the song remains the same: subsidies! "Once state approval is received, Renergie’s variable blending pumps will be able to offer the consumer a choice of E10, E20, E30 and E85. Via use of the Blender’s Tax Credit, Renergie will be able to ensure that gas station owners are adequately compensated for each gallon of fuel-grade ethanol that is sold via Renergie’s variable blending pumps at their gas stations."
The New York Times reports that biodiesel producers are dumping vegetable oil byproducts into local streams and rivers, harming wildlife.The National Biodiesel Board claims that their members' industrial byproducts are "nontoxic, biodegradable and suitable for sensitive environments." Yes, well, Bruce P. Hollebone, researcher with Environment Canada, says the result is some bad shit for birds and fish. "As with most organic materials, oil and glycerin deplete the oxygen content of water very quickly, and that will suffocate fish and other organisms. And for birds, a vegetable oil spill is just as deadly as a crude oil spill.” The problem is, of course, money. "Glycerin, an alcohol that is normally nontoxic, can be sold for secondary uses, but it must be cleaned first, a process that is expensive and complicated. Expanded production of biodiesel has flooded the market with excess glycerin, making it less cost-effective to clean and sell." And more cost effective to dump in untreated form. The National Biodiesel Board dismissed a litany of violations as "growing pains" for an industry that's doubled in the last year (to 160 plants). Oh, that's OK then.
My wife and step-daughter became U.S. citizens today. The ceremony was disappointing from the git go: over 500 people trying to escape bitter cold through two theater doors. (God help us if there had been a fire, terrorist attack or general panic). The judge was about as inspiring as a tax attorney; harping-on about voter awareness, voter registration, voting, keeping an eye on the elected officials you may or may not have voted for, voting them out (or back in office), etc. Although I'm about as PC as a Mac, I was also annoyed when the robed one kept harping-on about the Mayflower– as if Myles Standish single-handedly established the United States. The oath was meh and the multitudes muttered their way through the Pledge of Allegiance. While I am a proud American, I was not proud of the swearing-in. In fact, I was bummed. And then, when we were leaving, I saw an immaculately-dressed man clutching his certificate mount the running board of an equally immaculate black Cadillac Escalade. He held the paper aloft and beamed from ear-to-ear as he posed for a photo, commemorating the day he became a U.S. citizen. Now that's what I'm talking about!
So I get an email from Ford PR man Alan Hall re: "Microsoft To Launch Sync-based In-Car Advertising." Our previous blog post (based on a C/Net article) summarized plans voiced by the GM of Microsoft's Automotive Business. Martin Thall was discussing the possibilities of in-car advertising in general. Our headline and lead mislead readers into believing that these plans necessarily involved Ford's SYNC system. Ford's flackmeister pointed-out that SYNC is Ford's baby. The Blue Oval Boyz will decide whether or not to allow in-car advertising on their version of Microsoft's automotive operating system platform, not Bill Gates' minions. We apologize for leaving the wrong impression about the "ownership" of the possibility of advertising on SYNC-equipped Fords– which Hall wouldn't rule out. "We may have ads on SYNC at some point," Hall said in a telephone interview. "Everything's on the table." Glad that's cleared up. [NB: the original post has been amended to remove the word "Ford" from the headline and lead.]
"It is not hard to imagine a time in the not-too-distant future when General Motors Corp. will not exist. In fact, a lot of investors are imagining such a scenario… The GM-is-dying argument is certainly compelling, which is why the stock is down 75 per cent over the past eight years." Of course, the Globe and Mail's eye-opening lead is the prelude to an argument that GM's shares are undervalued. David Berman says GM could be a terrific buy IF the automaker returns to profitability. "A number of savvy institutional investors, not exactly prone to making silly guesses, are making big bets on a recovery." The "number" of investors adding to their GM shares seems to be one: "Legg Mason increased its holdings in GM by 5.4 million shares at the end of 2007, bringing its stake to 15 million shares." Yes, well, good luck with that. The more important point: the Mail's tacit admission that The General is in a fight for its life which it could well lose. This marks a fundamental shift in perception. If the [erstwhile] car-buying public picks-up this vibe (so to speak), it could further depress GM sales, which would push them further and faster towards Chapter 11. Send in the flacks, STAT!
Although we haven't seen studies on the subject, we suspect that many motorists who fill-up with E85 don't return once they discover the [unadvertised] reduction in efficiency vs. "normal" (E10) gas. Maybe that's why none of the major oil companies have installed E85 pumps. The ethanol industry realizes that all the subsidies in the world won't guarantee them a future if consumers line-up none deep for E85. But… what if you doubled demand by increasing the mandatory ethanol content for ALL gas blends from 10 to 20 percent? Corrosion? What corrosion? According The Toledo Blade, Minnesota Gov. Tim Pawlenty released a report by The North Star State's "two largest research universities" that claims the move would be safe for non-E85-compatible cars. "The study tested 40 pairs of vehicles, half of which were powered with fuel containing 20 percent ethanol, and compared performance and damage, finding little difference between the two fuels. Part of the study was funded by the Renewable Fuels Association, an advocacy organization for the ethanol industry." What's the bet they funded the part that says it's OK to double ethanol content?
Paul Niedermeyer's editiorial reveals that our resident automotive historian prizes reliability over style or performance– at least when it comes to long-distance automotive transport. Not me. I believe the car is half the journey (or something like that). Whenever I drive a rental car, no matter how wonderful the scenery or auspicious the occasion, I'm nagged by the realization that I'd be blissing in my Boxster S. No, I'm not a car snob. But c'mon, rentals? Rentals are hair-shirts-on-wheels. That said, I'm not sure my hard-riding Finnish sports car would be the ideal choice for a REAL road trip. So… what is? If I had the choice of any car in which to Cannonball the country, I'd take a Bentley Continental GTC. While I'd still be wishing on a 987 through the curves, high-speed wafting is mission critical for any driver wishing to traverse this big ass country of ours/mine. Unbridled luxury makes any long distance trip more enjoyable and, thus, memorable. And when the sun is just going down, put the beautimous Bentley's hood down and… ecstasy. You?
One of TTAC's Best and Brightest– an automotive journo who wishes to remain anonymous– sent us this link to what he calls a "pimpatorial." It stars Jean Jennings, Automobile's Editor-in-Chief for the last seven years (with an '06 interregnum). Although Ms. Jennings does not reveal her title in the intro clip (or thereafter), she clearly identifies her employer before gushing about the Jeep brand. Apparently, Ms. Jennings disagrees with those critics who view the Compass as a brand abomination. In fact, she claims that Jeep has "remained true to its original mission." There's more. Lots more. Jennings spreads the video love over all seven Jeep models. I hereby declare Automobile's editorial integrity officially, irrefutably, defunct.
Not to be outdone by GM CEO Rick Wagoner's $2.2m salary re-raise, 165,563 shares, 500k stock options and 75k restricted stock units; FoMoCo has just paid CEO Alan Mulally $4m in Blue Oval stock and $3.56m worth of stock options. (That is, of course, on top of Mulally's $2m base salary and the $35m in compensation Ford's paid their CEO for his first 14 months of service). As Automotive News [sub] reports, the former Boeing executive's new compensation package comes hot on the heels of his employer's $2.7b '07 loss. More to the point (if not for shareholders), the gravy train rumbling through Dearborn could anger Ford's union workforce looking at buyouts, buydowns and piss-offs. Or not. Coincidentally enough, Mulally's bonanza comes just two days after Big Al announced a $1k bonus for all Ford's United Auto Workers (UAW) members. And the fact that the announcement is hitting the wires on the weekend? More uninvited serendipity, surely. Bottom line: the bottom line has no relation to Motown executive pay.
The less resources available to a group that needs them, the more fierce the competition for those resources becomes. If you're a consumer and the fight's for your dollar, this is a good thing. For the companies chasing your custom, the struggle to compete can exhaust their resources and lead to extinction. Which is good for you and a bad for them. (Survival of the fittest and all that.) All of which is a preamble to the fact that the deals on GM wheels are getting seriously serious. Regional GM dealers– including Cadillac and Saturn— are offering "pull ahead" leases until March 15. In other words, they'll forget six months of your GMAC Smart Lease to get you into a new lease. If you fancy a Chevrolet Silverado, well qualified (i.e. vertical) buyers can pick up a pickup on a 60 month zero percent loan. Can GM afford to offer these kinds of incentives? No. But they can't afford not to offer them either. Darwin, eh?
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