[Thanks to John Horner for the eagle eye and the resulting scan.]

Well, we still don’t have that list of doomed GM dealers. Senator Rockefeller’s office has failed to return eight phone calls asking for the information: the list he requested from GM CEO Fritz Henderson, who promised, under oath to provide. Meanwhile, here, finally, is the supporting documentation for GM’s dealer cull. The bankrupt automaker submitted the document [link here] to Friday’s Stupak hearing on dealer closing. Bottom line: GM’s dealer network reductions enable an estimated $415 million in “gross structural cost savings potential.” What is it with these guys? There are lots of good reasons to shrink GM’s dealer network. In the face of a total industry bailout that’s topped $100 billion, Henderson’s “rooftop” cost saving ain’t it.

The Truth About Cars wasn’t founded for the discussion of partisan politics. Thanks to the Motown Meltdown bailout buffet, it just turned out that way. While the intersection of automobiles and ideology has become both inevitable and unavoidable, the discussions centering on political ideology have recently spun OOC. In certain threads, we’re seeing the same endless rounds of right/left blunderbuss action. Even worse, it’s become nasty. As I was away from my desk for 35 seconds yesterday, I missed the onset of the flame wars and, thus, failed to extinguish them. By the time a couple of our Best and Brightest sent a heads-up email, more than a couple of commentators were burning down the house. This morning, I’m in retroactive delete and warn mode. TTAC’s flaming rule is simple: no flaming the website, its authors or fellow commentators. The corollary is this: please keep it as car-related as possible. If you can’t work your way back to the words “and that’s why I’m a Porsche/Corvette/Nissan/Ferrari guy,” you’ve probably gone too far.

Speaker Nancy Pelosi released the following statement on the Obama Administration’s order of 17,205 “fuel-efficient” vehicles using funds from the American Recovery and Reinvestment Act:

We know that we can create jobs and save taxpayer dollars while protecting our planet, and with the American Recovery and Reinvestment Act, we are. The news that General Services Administration is one step closer to buying new, fuel efficient vehicles is good for our economy, good for our workers, and good for our environment. Because this will increase the fuel efficiency of the federal fleet, it’s also good for the American taxpayer.

Ah, but how fuel efficient are they? And what percentage of the new vehicles are American-made (a.k.a. UAW-assembled) cars? As you know, TTAC is determined to pry this information from the federal government. Our surprise ally: Speaker Pelosi’s office. They’ve promised to identify the models for us on Monday. We shall see . . .

Hi Robert – Per your mention of Sen. Corker, I just wanted to clarify that GM ASKED for a meeting with Sen. Corker and other Tennessee officials this week to discuss Spring Hill. They also asked our state to submit a proposal for the new sub-compact plant they plan to put in Michigan, Wisconsin or Tennessee.

 

Thanks,

 

Laura Lefler

Press Secretary

U.S. Senator Bob Corker

Matthew 6:24: “No man can serve two masters; for either he will hate the one and love the other, or he will be devoted to one and despise the other.” Applying this biblical admonition to General Motors, it’s clear that the federal bailout will accelerate rather than retard its ultimate demise. The automaker’s corporate culture was dysfunctional before the feds took the reigns back when its over-compensated suits made sure that failure was impossible (and not in a good way). Now that GM employees must answer (at least in the theoretical sense) to both management and politicians, it’s twice as screwed-up. As I indicated in this morning’s Wall Street Journal Op-Ed, the political interference with the company’s operations is already underway. Well of course it is. And it will continue. As will GM’s descent into oblivion. Simply put, there’s no way GM can get its house in order when Uncle Sam is the landlord. SNAFU × 2.

The Cash for Clunkers (C4C) program is on its way to Senate approval, as your elected representatives have attached the bill to the $106 billion military spending bill. As the Detroit News reports, the C4C rider sallies forth into legislative battle in the same form as the House version: “Under the program, owners of cars rated at 18 mpg or less in combined highway and city mileage could turn them in for a cash voucher. Buying a new car rated at least 4 mpg higher would earn a $3,500 voucher; a 10 mpg improvement would earn a $4,500 voucher. Pickups would be eligible as long as the new vehicle has a mileage rating of at least 18 mpg and is at least 2 mpg higher than the old vehicle. A new truck rated at least 5 mpg higher than the turned-in vehicle would earn a $4,500 voucher.” One problem: the feds are not planning (i.e., budgeting) for success . . .

(Read More…)

GM LETTERHEAD

June __, 2009

VIA Federal Express

[DEALER ENTITY CORPORATE NAME] 

[DEALER ADDRESS] 

To All GM Dealers in the US Who Received a Participation Agreement:

First and foremost, thank you for your continued support and efforts on GM’s behalf in these difficult times.  As we indicated when we sent you the June 1, 2009 letter agreement (the “Participation Agreement”), GM wants your dealership to be part of GM’s future and our whole focus is to try to improve, together, the GM dealer network.  We are gratified that, through Monday, June 8, we have received ______ signed Participation Agreements, indicating broad dealer support of our objectives for the dealer network.  

We have, however, received thoughtful and insightful questions and comments from individual dealers, the NADA and the National Dealer Council (the “NDC”) regarding the Participation Agreement. In response, we have had discussions with the NADA and the NDC. As a result of those discussions, we are writing to provide clarity on several points addressed in the Participation Agreement, as well as to amend certain terms and conditions of the Participation Agreement. Again, our whole focus here is to work with GM dealers to insure that both GM and the dealer body are best positioned to compete in this challenging environment and more importantly in the future.

(Read More…)

I’m honored that the Wall Street Journal (WSJ) has decided to publish my Op-Ed on GM’s political entanglement in tomorrow’s paper and online. [link here] I trust the piece will bring TTAC some fresh eyeballs. But it’s not the most important aspect of the deal. This website didn’t get to 1 million visits per month through powerful links (thanks, Instapundit), media showboating (shukran, Al-Jazeera) or celebrity journalism (oy, Yates). We did it by providing you, our Best and Brightest, with a steady diet of no-holds-barred automotive news, rants and reviews. The most thrilling bit of the WSJ publication: it will confer legitimacy on our collective mission. Meanwhile and in any case, thanks for your patience with our recent technical troubles. TTAC’s new owner, a Canadian outfit called VerticalScope, is gradually cleaning up some of the, uh, challenged back end software. Our new tech guy, Jonathon Marshall, is a creative, methodical and tenacious bastard. Kinda like us. And you. Cue the “Barney” song. Or better yet, not.

And I predict Ford CEO Alan Mulally will be proven wrong. Of course, I could be wrong about Mulally being wrong. I mean, I’m the not-so-proverbial nutter in the attic. Big Al’s probably got an entire building full of MBA-owning sales analysts doing nothing but crunching numbers (and hanging out by the water cooler talking about how TTAC talked about them hanging out by the water cooler). I base my false dawn dismissal on three main facts. First, Detroit’s been blowing smoke up the media’s ass since The Boston Americans beat the Pittsburgh Pirates by two runs to clinch the inaugural World Series. If not before. I don’t trust a word they say. Second, same again, only this time not discounting the fact the automakers may actually believe their own delusions. Which is some deeply scary shit. Still. And third, housing starts.

(Read More…)

Good afternoon,

I am responding on behalf of my colleague Bob Lesino [PR for the General Services Administration] and at this time we can’t provide any other information than what was in the press release.

Thank you.

MaryAnne

Gee, I wonder if this has anything to do with the country of origin for these vehicles . . . TTAC will now file a Freedom of Information Act request. Press release after the jump.

(Read More…)

Now that New GM is aborning, does Toyota feel obliged to become old GM? Seriously. I’ll forgo the recap (feel free to discuss this amongst yourselves) and get straight to the latest ill-advised Toyota: the new Lexus HS250. Yes, they’re right: they’ll sell 25,000 of the suited and booted Prius clones in the first year (which says bad, bad things about the Volt’s prospects BTW). And I’m sure the HS’s hybrid powertrain will kick ass, ’cause the Lexus LS 600hL is a sweet motor. But why are these Lexus guys constantly chasing volume, in a Cadillac kinda way? And if you think I’m just putting the hate on ToMoCo (Death Watch transference?), consider the fact that the group vice president of the Lexus Division for Toyota North America is seeing lights at the end of tunnel—just like the federal teat suckling infernal optimists over in Detroit.

(Read More…)

Did you know that BMW owns Rolls-Royce? Of course you did; you’re the Best and Brightest. Which means you also know that the new Ghost is not going to be a very expensive, modified 7-Series with bespoke bodywork and cabin. (Of course not.) But you’ll also recognize that the chassis technology trumpeted in today’s RR press release below is boilerplate BMW. I mean, they didn’t even change the names, dear boy. Which makes me wonder: what should they call this stuff? Active Roll Stabilisation [English spelling, Jeff] implies, well, roll. Variable Damping Control should at least have “en” in the middle of the middle word for the car’s effect on the fairer sex. Any suggestions (bonus points for clever acronyms)?

At the heart of the Rolls-Royce Ghost’s magic carpet ride will be a state-of-the-art chassis which uses an intelligent four corner air suspension system and multi link aluminium front and rear axles. Designed to be fully integrated, each of the cars dynamic handling and safety systems has been engineered to work together in harmony. Systems such as Active Roll Stabilisation, four corner air springs and Variable Damping Control operate as one, imperceptibly to the driver and passengers to provide the best possible comfort for occupants and to ensure that the tyres maintain optimum contact with the road, even on rough surfaces for driving safety.

(Read More…)

What do you make of this, then: “We do not have a specific target in terms of years, The mere issuance of that blueprint, we believe, would be market disruptive.” So sayeth Ron Bloom, leader of the Presidential Task Force on Automobiles and architect of Uncle Sam’s $100 billion plus GM/Chrysler bailout. Ron was testifying to the Senate Banking Committee re: the Obama administration’s timetable to extricate the government from the domestic automotive industry. But wait! That’s all! The government will divest itself of its 60 percent stake in GM “as soon as is practicable,” Bloom said, but “I certainly by no means would say that I am confident that will occur.” What? EVER?