Posts By: Robert Farago

By on February 7, 2008

residuallines.jpgIntellichoice is a scam. Their owners– Source Interlink Media– also own Motor Trend, a buff book with about as much editorial independence as Marines Magazine. Intellichoice pretends to be an objective number cruncher, focusing on cost of ownership calculations. Every year, they announce their "Best Overall Value of the Year" (BOVY) awards at the Chicago Auto Show. Methodology? "This insightful value rating factors the accumulated ownership costs of depreciation, maintenance, repairs, fuel, fees, financing, and insurance to identify the true standout models in each class." Needless to say, Intellichoice doesn't reveal the specific calculations involved. And if that's not enough to convince you that the whole thing's a con, consider that the VW R32 just won the BOVY award for the "Base Sport" category. We call bullshit. The R32 is the all wheel-drive uber-Golf (base sport?) that's over-priced, over-produced and over here. Check out this chart from Yahoo Autos comparing the relative predicted residual values for the R32 vs. the GTI (never mind any number of Japanese base sport competitors), and then tell me the fix ain't in. Shame on VW– and any other manufacturer– for using (paying?) Intellichoice to promote their vehicle. 

By on February 6, 2008

mean_matiz_450-op.jpgI was thinking about Justin's bang-for-the-buck blog and Frank's By The Numbers report. It occurred to me that the autoblogosphere is ruled by numbers. Horsepower, sales per month, number of comments, unique visitors per day, and so on. Which is kind of funny, as I have less aptitude for math than a Himalayan yak. My love for cars is visceral, not digital. When Justin investigates the $/hp equation, my mind turns to thoughts of coffee and bookmarks that dare not speak their name. But when he mentions the Mustang GT, I can immediately hear the roar of that V8. I can feel the gear knob vibrating in my hand. I can remember my sense of disappointment, as the engine ran out of puff ("Oh C'MON. We were just getting STARTED"). When Frank mentions the Dodge Durango, I recall the horrendous smell of the car's plastics assaulting my nostrils. I can hear and feel the glove box lid lock struggling to catch, dammit. And then I saw Autoblog's diss of in.pro's "make your econobox sound like a supercar" Virtual-Motor. "Worst. Accessory. Ever." made fun of the aftermarket inventor's attempt to relieve cash-strapped pistonheads of tinny engine audio Hell, or maybe experience a brief if cod moment of automotive aural sex. It made me shake my head. Numbers are the map. But they are not the territory. 

By on February 6, 2008

car-babes-with-ford-mustang-71.jpg“Technology, alone, cannot solve this question of how to reduce emissions from cars. Reducing CO2 emissions from cars should be a shared responsibility.” And there you have it: Wolfgang Hennig's rationale for urging the European Union (EU) to spend more of its members' tax dollars to teach drivers how to emit less C02 (via their car, not personally). Wards Auto reports that Ford of Europe's "eco-driving manager" isn't alone in this "why don't you pick on someone else for a change" strategy. "The European Automobile Manufacturers Assn. says eco-driving training can lead to an immediate reduction in fuel consumption of up to 25%." So.. we're talking about government intervention in how you drive your car? Uh-huh. "The EU is leaving it up to the individual governments to run their own voluntary schemes, which if successful could lead to the EC including rules and standards on eco-driving in future legislation." But… how? "Isuzu Motors Ltd. has a new range of commercial vehicles equipped with an onboard computer system that records the use of the accelerator, gearshift, brake and clutch. Data is downloaded into a laptop, showing each driver how they perform on the road and acting as the basis for tailored eco-driving lessons." There's more, but it freaks me out. 

By on February 5, 2008

hard-times.jpgIt's hard to describe the feeling a newsman gets when he's covering a big, breaking story. Sure, there's an element of ego gratification, a sudden, heightened sense of self-importance. But when push comes to shove and the world as we know it suddenly tilts on its axis, a real reporter feels humbled by events. Now I'm not going to equate Chrysler's dalliance with disaster with the end of the Vietnam War, 911 or any of the other momentous events I've witnessed as a jobbing journo. But make no mistake about it: when old Detroit judders to a halt, it will be a big story. American business will change forever. Of course, you could argue that it's already changed. That Detroit is the last relic of a bygone time, when men wore hats to work, smoked cigarettes and succeeded in business without really trying. But you don't need me to tell you that inefficient, Detroit-style enterprises still exist throughout this great land, in every field of endeavor. When GM, Ford and/or Chrysler throw in the towel, it will sound the death knell for the rest of the dinosaurs, marking the end of an era as surely as Richard Nixon's resignation. If you watch closely, you will see a gradual realization that humanity's second wave, mass production, is finally being replaced by something infinitely more sophisticated. One door will close, another will open. God willing, TTAC will be there to watch it happen. It is the best of times, it is the worst of times. 

By on February 5, 2008

jf_08avenger_dashangle.jpgIt looks like Chrysler got out the old checkbook and paid Plastech some money to ship the damn parts already. USA Today reports nothing more than the fact that the two companies are doing business again, which should result in a production restart at Chrysler's four idled factories and two de-accelerated plants within a few days. Automotive News [sub] says it's strictly an interim affair; the deal only runs through Feb. 15. So the fat lady ain't singing. More accurately, the fightin's in 'rounds. Just as Delphi bedeviled GM for years, this dispute will go through several more permutations before it's done. Even if you don't factor in lawyer's fees, this little "spat" has already cost Chrysler millions. More importantly, one wonders what effect Plastech's insurrection's had on Chrysler's other suppliers. Will they be more willing to go to the mat when Chrysler comes calling? Count on it. Chrysler's ability to do business with its suppliers just got a whole lot tougher. 

By on February 5, 2008

interior.jpgI'm not quite sure this is news, as you'd have to be a rivet counter to spot ANY difference between the new Dodge Challenger interior and any other of the crap interiors Chrysler is currently wrestling with its supplier to shoehorn into its lackluster range of car, minivans, cod Jeeps and pickup trucks to avoid bankruptcy long enough to sell the whole kit and caboodle to the Chinese. But here it is, courtesy allpar.com: proof positive that Chrysler thinks it's OK for the cabin of a retro muscle car to look and feel like a nasty ass rental car. Honest to God folks, how hard could it have been to do SOMETHING unique here? Can you imagine the SMELL? If not, smell ANY of Chrysler's other products. While I'm sure the Challenger will sound authentic enough in SRT8 trim, I wouldn't pay a plug nickel to live inside this plastic Hell. But it looks like the boys over at Autoblog would: "The Mustang and Camaro might have more exciting designs, but the ergonomics and controls in the revived Dodge ponycar look well thought out." Oy.

By on February 5, 2008

Marketing Daily reports that Lexus is set to tout their mondo hybridity in a new ad campaign. The mag says the automaker's new hybrid-touting TV spot shows a classroom "where a teacher suddenly pauses as kids are doing the alphabet because the h has gone missing; a guy looks quizzically at a sign for a "otel"; a woman typing on a computer finds that the H key is blank, as is the h in Yahoo; a pickup truck in the desert passes a sign reading "Welcome to Uta"; a TV announcer reports a story sans the letter h." The announcer reveals that all the h's have "simply found a better place to live; one that looks forward, not back." Which must please Yahoo no end. Or maybe it does; Lexus uses Yahoo! Autos Groups for the forum accompanying its new website, ThePowerofH.com. A site that tells us that "h" is "the power of change" that stands for "an unshakeable beliefe that every problem has a solution and technology will lead us to it." I guess these guys missed all those B-grade sci fi movies that disproved that theory but good. Meanwhile, here's my fave Lexus hybrid ad. [NB: I smoke drugs.] 

By on February 5, 2008

ch008_002th.jpgRight about now, U.S. Bankruptcy Judge Phillip Shefferly is deciding the fate of Chrysler Corp. If he rules that parts supplier Plastech must surrender its Chrysler-related tooling, Chrysler will live to die another day. If he rules that Plastech has the right to keep the machines, Chrysler will have to play ball with Plastech (indeed the judge may "force" both sides to play). And if Chrysler agrees to pay the supplier on a shorter term basis for its parts than the usual 90 to 120-day basis, and all the other parts makers want a piece of that action, Chrysler's cash pile will fail and it will still head for the buffers. Anyway, the star.com reports that the lack of plastic parts has cut output by about half at Chrysler's Brampton (300, Charger and Magnum) and Windsor (Dodge Caravan and Chrysler Town and Country) plants. "Ed Saenz, Chrysler's corporate communications manager, said the company will be able to operate the two plants on four-hour shifts until the end of the week before completely running out of parts." Just like a labor strike, every day this drags on, it costs Chrysler millions. It's highly unlikely they could last more than three weeks before filing.  

By on February 5, 2008

0011ctscoupe_450-op.jpgCadillac is like the guy who hits his head against the wall because it's fun to stop. Only they forgot the stopping bit. Australia's GoAuto reports that GM's premier luxury brand will not do the right thing and send the brand-defiling sales flop known as the Cadillac BLS back to whatever corner of Hell is reserved for hideous mutants. "An American GM insider suggested to GoAuto that the next-generation BLS – which may be made in America or Mexico since it shares much of its Epsilon II architecture with the next-generation Saab 9-5 and 9-3 due in 2009 and 2010 respectively – will have bespoke bodywork as well as a stronger driving character, as Cadillac attempts to redress two of the biggest criticisms levelled at this vehicle." See? They just don't get it, do they? Meanwhile, according to GM Car Czar Bob Lutz, the new "entry level" Cadillac ATS "is, or would be, about the size of a BMW 1 Series – maybe just a tiny bit bigger to enable larger wheels.” Based on GM's new rear wheel-drive Alpha platform, no less. Maybe. Yup, you guessed it. "Alpha is still under consideration, but we haven’t kicked off any design work or any engineering work because we have to sort our way through this 35mpg task." Maybe someone should tell Lutz and co. that a bad plan is a whole lot better than no plan.  

By on February 5, 2008

a331-img_4248-copy.jpgRichard Parry-Jones is Ford's former chassis guru, the man who worked miracles for Ford of Europe's mainstream motors. icWales.co.uk reports that the Welshman isn't enamored with the ongoing assault on motoring in the name of climate change. PJ told members of the Cardiff Business Club (at The St David’s Hotel & Spa) that CO2 emissions must be reduced by all sectors; cars are only a part of the climate change problem. In other words, don't throw the four-wheeled baby out with the rising bath water, boyo. “Should we not look again at the sheer cost effectiveness of cars providing transportation and pleasure to society and embrace and encourage new car technology and improved road capacity?" Hey, good luck with that. Meanwhile, the Commander of the British Empire (CBE) wants his fellow Welshmen to know he's not a car slut. "I am pro-mobility and I am pro the environment – and actually I think most of us are.” If only common sense were common.

By on February 4, 2008

c6thunderclouds_2640.jpgA couple of years ago, I expected the United Auto Workers (UAW) to sink The Big Three (as they were known at the time). Scanning the situation at bankrupt parts supplier Delphi, I thought the union would strike rather than accept pay cuts and kill Detroit. Either that or Detroit would pay them off, burn all their cash and die. I didn't envision the creation of a $37b UAW slush fund (a.k.a. a health care VEBA) that would "convince" the bosses to surrender their members' future without a fight. But I did note that Delphi's bankruptcy was a bad omen. If GM's own former division couldn't make money building parts for Detroit, what hope for other suppliers? And if the suppliers went under… As today's Chrysler factory shutdown proves, a chain is only as strong as its weakest link. For decades, The Big 2.8 (as they are now) have beaten-down their suppliers. Their constant abuse has turned "partners" into adversaries. It's this relentless pursuit of profit — at the expense of human decency– that's poisoned Detroit's relationship with its paying customers. And now, as Chrysler faces the consequences of their sour supplier relations, the situation proves an adage that informs all my analysis of Detroit's inexorable slide into bankruptcy: as you sow, so shall you reap. Or, if you prefer, payback's a bitch.  

By on February 4, 2008

05_08_rav4_sport.jpgJust as TTAC's Samir Syed was getting himself all hot and bothered about the car price differential between new cars in Canada and the U.S., Toyota ran him a nice cold bath. The automaker is slashing its Canadian prices to reflect what Stephen Beatty, managing director of Toyota Canada, calls the 'new normal.' Driving.ca reports that ToMoCo CA's cutting the manufacturer's suggested retail price (msrp) on 16 Toyota and Lexus models by a range of $750 and $8,100. Some examples (all in Canadian dollars): a Yaris hatchback drops five per cent ($750) to $13,165; the RAV4  falls 6.8 per cent ($2,000) to $27,400; the Tacoma pickup truck drops 10 per cen ($2,290) to $20,470; and the Lexus IS sports car decreases 13 per cent ($4,650) to $31,900. Beatty denies that a two percent drop in Toyota sales spurred the move. "This isn't about weakness in the marketplace… There is a difference structurally today in the marketplace from where we were last year." Oh, do the math and the RAV4 is still more expensive in Canada than the U.S. I guess the new normal is the same old you-know-what, only less. 

By on February 4, 2008

auburnhi.jpg Automotive News [AN sub] reports that Chrysler is asking U.S. Bankruptcy Judge Phillip Shefferly to let the automaker take immediate possession of its tooling equipment from former supplier Plastech. If not, the automaker says the ensuing parts disruption will quickly spread from the four plants currently off-line to ALL of Chrysler's American production facilities. Plastech's lawyers opposes the motion, saying its business assets are protected by bankruptcy law. [TTAC previously reported that Chrysler had already taken possession of the tools; AN says Chrysler tried to do so on Friday, immediately after canceling the contract. And failed.] Chrysler's petition to recover the equipment will be heard tomorrow morning in a Detroit bankruptcy court. If the judge rules against Plastech, Chrysler could well file for C11 soon thereafter; it can't afford a three-week shutdown. 

By on February 4, 2008

bob-nardelli-chrysler.jpgIt seems as if our concerns about a Chrysler supplier "run on the bank" scenario– whereby the company's suppliers would demand cash-on-the-nail for goods and services rendered, throwing Chrysler into bankruptcy– are not without foundation. TTAC's Deep Throat has been making some calls. There are rumblings amongst the automaker's financially unstable suppliers. Something along the lines of "If we're going down, we're all going down together." Chrysler has been hammering its suppliers on price for years. And then outsourcing anyway. The company's decision to cancel Plastech's contract hasn't made The Crisis Corporation any friends. (Chrysler CEO Bob Nardelli isn't exactly known for that skill.) DT says it could be the tipping point. If and when the run happens, Chrysler will go down in a matter of days. The good news? Ford and GM will get a significant sales boost just when they need it most.

By on February 4, 2008

2070606_002_1m.jpgNot to be alarmist (much), but TTAC has been saying for some time that the collapse of Detroit's domestic supply chain could force one or more of the automakers into bankruptcy. On Friday, Chrysler canceled its contract with Plastech Engineered Products (PEP) of Auburn Hills, MI. Plastech immediately filed for bankruptcy and stopped shipping parts to Chrysler. USA Today reports that a lack of plastic parts has forced the American automaker to suspend operations at four U.S. assembly plants: Sterling Heights, Mich. (Sebring and Avenger); Newark, Del. (Durango and Aspen); Toledo, Ohio (Nitro and Liberty); and Belvidere, Ill. (Caliber, Compass, Patriot). While Chrysler should be able to reestablish parts production (e.g. engine covers, grill panels, moldings, metal stampings, door panels, floor consoles), we hear that Chrysler's been slow paying all its suppliers. If suppliers see this move as a sign of things to come, they might reach the point where they demand cash up front– tipping Chrysler into bankruptcy. Watch this space. 

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