OK, it's a love letter to Toyota, written by a local Mississippi paper pleased as punch that their audience are enjoying the economic uplift provided by a new, $1.3b Toyota factory. But The Northeast Mississippi Daily Journal still offers a fascinating look at how ToMoCo gets the party started at a new production facility. "Numerous training sessions at other Toyota sites, including Georgetown, Ky., and San Antonio, are part of the regimen. TMMMS [Toyota Motor Manufacturing Mississippi] employees will spend three weeks or so at one of those facilities, then return home for training at area community colleges for a few weeks. The schedule rotates for a few months until employees are ready to 'graduate.' Then the next batch of employees starts the process again. But the training doesn't stop… Toyota workers are cross-trained to do other jobs. The premise is simple – the more you know, the more you can do, the more valuable you are." Production at the new plant– just outside Elvis' birthplace in Tupelo– begins in late 2009 for the 2010 model year Highlander.
Posts By: Robert Farago
Your humble correspondent lived in Bath, UK for some four years. The gorgeous Georgian city was home to a huge population of heroin addicts, panhandlers and heroin-addicted panhandlers. Overwhelmed, the local police adopted a 90 percent tolerance policy. So it's no surprise to this journalist that the BBC reports that members of this army of unemployment collectors have organized (if that's the right word) a protection racket, whereby motorists must pay a "donation" or risk having their cars vandalized by their erstwhile guardians. "Motorist Stewart Barratt said: 'I've only refused [to pay] once and I came back to my car and it was damaged, £385 it cost me to put it right. My car had been urinated over, wing mirrors were broken and the wiper blades back and front were ripped off.'" In true "leave it to us" style, the local constabulary's official response is long on qualifications, short on reassurance and stingy with action. A statement from Avon and Somerset Police said: "We are aware of one incident where a motorist was asked for money before somebody urinated on his car. No other incidents have been reported recently."
What starts out as the [now] usual report on the huge number of high-risk sub-prime car loans– "According to Power Information Network, 1.85 of the 9.6 million customers in 2006 who leased or financed a new car were subprime borrowers or consumers with weak credit"– suddenly swerves towards Uh-Oh Town. The CBS5.com report highlights BMW Financial lease holder Vivian Snyder. A salesman inflated Snyder's income ($2500) on her credit application by 150 percent. The reporter then secured the loan application and discovered that "Snyder's income had been changed once again – from $6,000 to $8,600, this time without her knowing. An "8" had been placed before the "6" and "0"s tacked at the end." When confronted, Freemont, CA AutoNation General Manager Larry Long claimed the change had been made in Snyder's presence, and then blamed BMW Financial for approving the lease. "We have investigated this matter internally," Bimmer spokesmouth Martha McKinley insisted. "And we are satisfied that BMW Financial Services acted appropriately at all times during the application and credit review process." Yes, well, AutoNation eventually ate the lease and "according to consumer advocate Rosemary Shahan with Consumers for Auto Reliability and Safety the practice is common. 'This is an epidemic of loan applications being falsified. In fact, the model for the meltdown we're seeing in real estate and home mortgage lending was auto lending.'" [thanks to buzzlightyear for the tip]
Not that they will, but they could. In fact, they should. Check it: today's The New York Times op ed reminds us that "The final [energy] bill correctly included environmental safeguards. The most important is a requirement that ethanol, regardless of its source, achieve at least a 20 percent reduction in greenhouse gases compared with conventional gasoline." Only the Times (and TTAC) noticed two studies in Science magazine that conclude that ethanol production increases global warming. So.. that's it then. Until ethanol can be made from non-corn sources, the Environmental Protection Agency (charged with calculating ethanol emissions) should pull the plug on corn juice and sink the subsidy-sucking ethanol industry. The chances of that happening are between none and none. Still, it's nice to see the Times (almost) acknowledge a green boondoggle when they see one.
As GM's fortunes head for their inevitable denouement, it's time to pause and reflect on the deal that revolutionized the American automaker's labor relations. I speak here of the multi-billion dollar bribe paid to the United Auto Workers (UAW) to cut their sky-high wages and benefits down to size. In exchange for a new Voluntary Employees Beneficiary Association (VEBA) health care trust, the union accepted a two-tier wage system. At a stroke, Motown became competitive with the transplants, while the UAW protected its members' health care benefits for all time. In theory.
TTAC welcomes 20k daily unique visitors. No wonder. At the risk of e-tooting our cyber-horn, we have superb writers and incisive commentators. So now, we evolve. To keep us au courant with 1997-era web development, we're adding forums. Every article will show a page of comments, and then offer a link to more comments, which will take the reader to the article/comments within the forum. Readers can access these posts from within the forum and, of course, add threads. (We will police ALL posts just as rigorously for flamers as we do now.) We're also looking to change the home page, to make that bad boy POP (in a discreet sort of way). We're about to announce a deal that will give (selected, trusted, insured) TTAC reviewers access to the latest test vehicles– cars that are outside the manufacturer's press fleets. And we've started a new, non-TTAC site (no brand extensions here) with Steven Lang. We'll link to newcarconsultant.com to provide our readers with a first-class, nationwide (U.S.) new car buying service– which will generate some much-needed income for our journalistic efforts. As Detroit is learning, everything either grows or dies. With your help, we're planting some seeds for our future.
It's a bit early to declare February the beginning of the long-anticipated new car sales face plant, what with President's Day sales and a couple of weeks to go, but the Wall Street Journal reports that the industry took a 16 percent dive so far this month. Zoom in on the main players and folks, these decade-low numbers [via J.D. Power] are downright scary. "General Motors Corp., riding momentum created by updated products and hefty incentives, recorded the only sales gain among major manufacturers last month. The latest numbers indicate GM ran into a roadblock during the first 17 days of the month, with dealers selling 31% fewer vehicles than in the first 18 days of February 2007… Chrysler LLC experienced a 27.5% decline despite a recent move to offer more free features on its cars and trucks." CNNMoney reports that "shares of automaker General Motors Corp. fell nearly 6%, making it one of the biggest losers on the Dow 30 Thursday afternoon, as investors were dismayed by weak economic data released earlier in the session." And that was BEFORE this information was released…
After calling global warming "a crock of shit," GM Car Czar Bob Lutz is using his fastlane blog to defend the remark that launched a thousand blogs. Instead of an apology, Maximum Bob declares himself– and you– an irrelevance. "Never mind what I said, or the context in which I said it. My thoughts on what has or hasn’t been the cause of climate change have nothing to do with the decisions I make to advance the cause of General Motors. My opinions on the subject — like anyone’s — are immaterial. Really." Bob then tells the tree-huggers to stop picking on him. "Instead of simply assailing me for expressing what I think, they should be looking at the big picture. What they should be doing, in earnest, is forming opinions not about me but about GM, and what this company is doing that is — and will continue to be — hugely beneficial to the very causes they so enthusiastically claim to support." I think that's what psychologists call "disassociation." But the best bit is here: "General Motors is dedicated to the removal of cars and trucks from the environmental equation, period. And, believe it or don’t: So am I! It’s the right thing to do, for us, for you and, yes, for the planet. My goal is to take the automotive industry out of the debate entirely." I guess he missed the irony of "taking GM out" of the equation.
After three columns, The Truth About Cars and former Car and Driver columnist Brock Yates have decided to call it a day. I emerge from our agreement with my respect for Mr. Yates' enormous talent, insight, charm and perspicacity intact. Brock's reputation is, was and will be well-deserved. TTAC hopes that he finds a suitable electronic forum for his work soon, so that his many fans can continue to enjoy his wit and wisdom. It's been an honor.
TTAC is proud to bring you another "What the Hell Were They Thinking?™" moment. First, the facts. To launch MINI's new Clubman (an ugly ass vehicle boasting the world's smallest suicide doors), California-based advertising agency Butler, Shine, Stern & Partners have unleashed "ZIG. ZAG. ZUG." As you no doubt already guessed, the slogan is part of a host of so clever they require an entire explanatory paragraph to describe them print and "guerrilla" marketing campaigns (e.g. teaser billboards and "The Book of ZUG"). Now, the kvetch. Why would MINI want to riff on the Cadillac Catera– an "entry level" rebadged version of the Opel Omega MV6 that almost single-handedly destroyed the Cadillac brand? Students of automotive history will recall that the abomination was advertised as "The Cadillac that Zigs." That's like selling a new soup based on a brand known for botulism. Also, ZUG? Zug is a town in Switzerland. And while I'm sure the comedy website zug.com will appreciate the business, why would such an internet-friendly car brand miss that opportunity? If you need an alternative place to file this story, how about "Too clever for their own good."
[BMW "respectfully declined" our request for an interview on this campaign.]
Yesterday, the Supreme Court of Western Australia ruled against Ford Australia in an asbestos related lawsuit. The Geelong Advertiser reports that FoMoCo was "ordered to pay Perth motor mechanic Antonino Lo Presti $840,000 after contracting asbestosis in 2001 from working with brake pads in the 1970s and '80s. The court heard Mr Lo Presti was working in Ford dealerships without protective equipment, ventilation or warnings, long before asbestos was banned in 2003." The ruling– which determined that Ford knew the risks to mechanics but failed to take action– is sure to open the floodgates for a class action lawsuit. If the thousands of motor mechs who worked on Ford's asbestos brake pads Down Under get a fraction of Lo Presti's payout, this one will heavily damage an already sinking ship.
Hummer is GM's only coherent brand. They have two models endowed with an instantly recognizable Picasso-friendly (cubist) appearance. Love 'em or hate 'em (and most people are firmly in the latter camp), everyone knows what a Hummer is: an overweight off-roader with a cheap, cramped cabin and/or a pseudo-military middle finger salute to any idea of fuel conservation. For reasons best left to students of the story The Golden Goose, USA Today reports that "General Motors wants people to start thinking about Hummers as big old trucks built to do a job, instead of as gas-guzzling SUVs for the rich." According to J.D. Power, Hummer doesn't deserve that rep. "The name Hummer connotes a much more gas-guzzling vehicle than really is on the road today," Jon Osborn declaims. "Really, it gets about the same or as good gas mileage as several other (SUVs)." Oh, that's alright then. Anyway, the new game plan: sell Hummers as vehicles built to do a job– that just happen to get 14mpg (or less). "Late last year, GM began airing ads that show other 'tools'— firefighters' gear, a flare gun, a climbing rope— and then show a Hummer, which the ad says can scale 60-degree [sic] inclines. In another commercial, newspaper clippings about blizzards and floods dissolve into a Hummer forging through the disasters to help. Both ads end with the tag line: 'Purpose built.'" Hummer owners may be saving the world, but environmentalists aren't buying it (literally). But then, why would they?
The Houston Chronicle reports that Nissan spent $3.9m last year on lobbying in Washington, D.C. What's Nissan's beef with the feds? "The U.S. segment of the Japanese automaker lobbied Congress on anti-dumping, currency exchange-rate manipulation and other trade competitiveness issues. The company also lobbied on renewable energy and average fuel economy standards, among other issues." While we'd like a LOT more specific info, it's worth seeing that number in context. According to Opensecrets.org, Toyota spent $2,730,000 and GM spent $6,420,000 on lobbying legislators in '07. Despite the recent battle over federal Corporate Average Fuel Economy standards, both GM and Toyota forked-out about $2m less on their lobbying efforts than they did in the previous year. What does all that tell you? Seriously; I have no idea.
That is, of course, the logical headline for a column comparing Chrysler's main players to various dog breeds. But Ward's Automotive can't say that, so they go with "Chrysler Bares Teeth in Dog-Eat-Dog Business Climate." If you think that's a bit forced, try reading Eric Mayne's column. It starts off as a clever-ish lead: "This is an historic month. For the first time in Westminster Kennel Club’s 132-year history, a beagle won best-of-show. And precisely this time last year, Chrysler started going to the dogs. [ED: see?] Before the next quarter concluded, the pentastar pack had a new leader – one with three heads." Mayne is like a dog with a bone; he simply refuses to surrender his metaphor. "According to Puppyfind.com, [Chrysler Veep Jim] Press would be a Blue Tick Coonhound. Bred to track crafty game capable of fleeing through a woodland canopy, they are 'good problem-solvers,' the site says." Mayne identifies Vice Chairman and President Tom LaSorda's spirit dog as a Cane Corso Italiano, a.k.a. Italian Mastiff. CEO Bob Nardelli "can only be a Siberian Husky." And then Mayne finally gives us five sentences approaching genuine analysis. Pardon me while I get my pooper scooper.
Have a look at the comments on the bottom of the Intellichoice blog post. The Editor/Publisher of the sham scam org (codenamed Flujo) signs-in to defend his employer's methodology. Apparently, the VW R32 did deserve "Best Value Award" for "Base Sport." So then, tell us how you came to that preposterous conclusion? "IC is completely above board and that point is not up for review." That got me thinking about marketing maven Al Reis' magnificent tome "Positioning." Specifically, his advice that sometimes it's best to position a brand against the competition, rather than for anything. "Avis. We're Number Two. We Try Harder." While The Truth About Cars says what we're for, using Al's strategy… "We're number 12,958 on Alexa's U.S. web ratings. But we annoy more industry blowhards than the other guys." Not the pithiest of straplines. I did favor "Vincit Omnia Veritas" for a while. These days, that line strikes me as something you'd see sewn into the slippers of an English aristocrat (who are generally coke-crazed scumbags, but that's another story). Anyway, whilst fumbling for my Ambien CR in the dead of night, the above declaration popped into my head. Pretentious moi? Your suggestions?
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