TTAC commentator Xander Crews responded to this morning’s post about a $5k surcharge added to the sale of a new Camaro (at least in theory), and the negative remarks about car dealers made by some of our Best and Brightest.  

A few things, but first a disclaimer I’m a manager at a domestic dealership.

1. Just as it is considered okay and “fair” for a customer to shop 50 quotes and “beat up” a dealer until they sell a car at or below not only sticker but in alot of cases invoice it should be okay to charge over MSRP on any vehicle. Hell if a dealer wants to charge $5000 over sticker for a F150 XLT he can, just remember as the consumer you have the right to say “no I’m not going to pay that”. So long as it legally and properly displayed, there’s no problem with doing it. It is up to the individual store to weigh the consequences of their actions vs the potential benefits. If they piss off enough people with stuff like that they will lose customers.

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So far today, the only motion filed: Chrysler debtors’ application to employ Schulte Roth & Zabel (SRZ) as “special counsel” (download pdf here).

11. During the twelve-month period prior to the Petition Date, SRZ received from the Debtors an aggregate of approximately $24,710,000 for professional services performed and expenses incurred for and on behalf of the Debtors. In addition, in April 2009, the Debtors received a retainer of $2,000,000. SRZ has applied the entire retainer to fees and expenses incurred on behalf of the Debtors and its current balance is $0.

12. The customary hourly rates of SRZ attorneys are as follows: (a) between $715 and $880 for partners, (b) between $645 and $670 for special counsel, (c) between $265 and $615 for associates, and (d) between $110 and $305 for legal assistants.

A Chrysler advisor has confirmed it: we’ll never see Chrysler’s government-provided $3.34 billion debtor-in-possession (DIP) financing again. Nor will Canada recoup any of the $1.16 billion they spent helping keep the zombie automaker alive through bankruptcy. Oh, and you can forget the $4 billion worth of US “loans” already bestowed upon Auburn Hills. As The Detroit News reports, all of it’s disappeared down the ChryCo-shaped rathole. “Ron Manzo, a senior financial advisor to Chrysler, said it is ‘highly likely’ the governments will recover nothing. He also noted that Chrysler isn’t required to pay interest on the $4.5 billion in debtor-in-possession financing . . . After Chrysler filed for bankruptcy Thursday, Obama administration officials refused to say how much the government might recover of the $4 billion that the Bush Administration loaned the company in January. A government official confirmed on Monday that the Treasury is unlikely to get any of the first $4 billion but declined to comment on whether the Treasury or Chrysler will be repaid all or part of the debtor in possession financing.” And you do know the feds have promised the new new Chrysler $6 billion in exit financing, right? And [an unspecified amount of] money for GMAC.

Earth2Tech, Earth2Tech. Come in, Tech. You may be wondering if green websites like Earth2Tech are anxious about the possibility that GM (and/or its new masters) will kill the electric/gas hybrid Chevrolet Volt. You may recall that the Presidential Task Force on Autos (PTFOA) tore the Volt a new exhaust pipe in its original GM viability slam down. And it seems like there’s a bit of a C11 thing happening over at RenCen. Anyway, to their credit, Earth2Tech’s Volt-related concerns are global. So they emailed GM for reassurance on the European Volt program. And, by jove, they got it! “The Ampera is being developed in the U.S., and GM remains firm on its plans to bring the Ampera to the EU,” blogger Josie Garthwaite reports. And now, from the horses mouth: “‘We don’t expect any disruptions to our plans,’ GM spokeswoman Natalie Johnson told us in an email today. Neither does the Opel team. Communications director Rene Kreis reiterated that Ampera production is on schedule to begin in late 2011.” Good to go is one thing. But no disruptions? Props for maximum chillaxitude. Alternatively, brickbats for the usual spinmeisterly BS. Your call.

Proponents of Chrysler’s current reinvention often refer to the exercise as a “surgical” bankruptcy. OK, who’s the surgeon? As far as I can tell, the people in charge of deciding how to cut-up Chrysler are Chrysler. “Physician heal thyself” is a nice sentiment, but it doesn’t normally involve a scalpel. Second, speed. When a patient is bleeding to death, time is of the essence. Chrysler is hemorrhaging red ink. It’s one thing to stop the bleeding (as Uncle Sam adds multi-billion dollar cash infusions). It’s another to attempt to cure the patient with a knife. And after the health care recipient leaves the theater, well, who expects an amputee to run a marathon? In other words, the operation may be a success, but the patient will still die.

A longtime member of our Best and Brightest is shopping for a new/used car. Yes, I know: shocking. But there you go. But ccd1 doesn’t know which way to jump. His query:

I am beginning to shop around for a car and have gotten the search down to two cars: RX-8 and a used Cayman.  The top of the line RX-8 (Grand Touring or R3) is about the same money as a two-year-old Cayman. The upside of the RX-8 is that it has a back seat big enough for at least one normal sized adult. First year depreciation, however, is ugly ($7-8k).  Depreciation would be better for the Cayman, but it lacks a back seat and maintenance on the Cayman would be far more costly than the Mazda. So the question is which one should I choose?

Toxicroach says he’s not a C11 guy by training; C7’s more his style. Still, it’s obvious that he shares our OCD. Which is not so good for him. But very good for the greater good. Thanks, bug man.

“Nuts & Bolts: The first day emergency motions were granted for the most part. Chrysler can continue on and doesn’t have to file a complete list of creditors or a complete petition until June. Some minor creditor action that I’m going to mostly ignore. We already covered the main objections, but Uzzi (counsel for Chrysler’s non-TARP engorged creditors) filed another objection to the use of DIP financing (download pdf here). This sums up their argument quite nicely:

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Our C11 guy Toxicroach checks in:

Section 2.15 Viper. (a) Subject to Section 2.15(b) below, notwithstanding any provision of this Agreement to the contrary, (i) Seller may, at its option, sell Intellectual Property and Purchased Inventories that relate solely to Vehicle Production (as defined in the Transition Services Agreement) and are not necessary or useful in any other line of business (the “Viper Assets”) prior to the Closing Date in an arm’s-length transaction to a party other than Purchaser on terms and conditions reasonably acceptable to the Purchaser, provided that the right of the Seller to sell the Viper Assets shall terminate on June 8, 2009 if no binding written agreement to purchase the Viper Assets has been executed and delivered by a bona fide purchaser at such time, and (ii) in connection with any such sale, Seller and Purchaser, as applicable, shall grant to the purchaser of the Viper Assets on terms and conditions reasonably acceptable to the Purchaser a non-exclusive license of other Intellectual Property of the Seller necessary for Vehicle Production as currently conducted.

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With apologies to Monty Python, I had to blog this story just for the headline. Here’s the deal: North Texas Chevy dealers are inviting Metroplex-area license holders to test drive the new Chevy Traverse in exchange for a free one-hour session at any local Massage Envy clinic. “Who doesn’t need a moment away from the madness of everyday life?” Dallas/Fort Worth regional developer for Massage Envy clinics, Lance O’Pry, asked, more or less rhetorically.  “A Chevy Traverse test drive and a free Massage Envy massage are relaxing breaks in your routine.” Unless that is your routine. Anyway, let’s assume Mr. O’Pry [not shown] is sick of trying to explain the difference between genuine therapeutic massage and equally genuine but not as socially acceptable during symphony intermission schmoozing massage. But if we jettison the distinction, one wonders if there’s a business case to be made here linking extortion and new car sales. Just sayin’.

Toxicroach will be here any moment to give us his take on the Chrysler C11 case’s “relax don’t do it” anti-auction action. Meanwhile, here’s a quick heads-up [via Bloomberg]: “The group, calling itself Chrysler’s non-TARP lenders, in reference to the Troubled Assets Relief Program, said the proposed sale to an entity to be managed by Fiat is ‘tainted’ because the process was dominated by the U.S. government, according to papers filed today in U.S. Bankruptcy Court in Manhattan. The group also said the short period of time given to evaluate the sale was improper and the hearing set for today on the bid procedures should be delayed.” And so it was. For a day. Meanwhile, the money shot: “The court should not permit a patently illegal sales process to go forward.” As TTAC reported earlier, the kvetching could well be a simple negotiating ploy to force the feds to pay off the non-TARPies, at a higher rate than the big banks (no less).

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Once again, TTAC has received an embargoed press release. Once again, please don’t send us anything you don’t want us to publish before you want us to publish it unless we agree beforehand (which we won’t). An agreement requires two parties. And party they might down at your local Buick dealer’s service department. A Consumer Reports (CR) survey of 349k vehicles (full methodology unavailable upon request) reveals that, “Among the top scoring in dealership maintenance satisfaction were Lexus, Buick, and Acura, with 85, 83 and 82 percent satisfaction rates, respectively. At the other end of the spectrum, Volkswagen, Suzuki, Jeep, and Nissan owners were far less satisfied with dealer service at 67, 69, 70, and 70 percent respectively.” But wait! There’s more! “Despite the turmoil surrounding the American auto industry, six American automakers (Buick, Saturn, Mercury, Cadillac, Lincoln and Oldsmobile) ranked among the top ten in terms of customer satisfaction with dealership maintenance.” Pay no attention to the word “Oldsmobile.” Notice the word maintenance. Not repair.

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When GM banned TTAC from its press cars some thirty-five years ago, I told the local delivery guy not to fret (as if). After GM filed for C11, things would change. The warm winds of glasnost would sweep through the company’s corridors, opening the company’s corporate culture to outside criticism. A new era of openness and honesty would begin. Man did I get the munchies that day. Anyway, we shall see. Meanwhile, with 27 days left to go, TTAC’s not riding phat in no Pontiac and it’s the same old spinmeistery at RenCen. Here’s what I discovered in GM’s increasingly taciturn press site this morning:

DETROIT – General Motors is proceeding to the next step with respect to the sale of Saturn. A number of potential buyers have surfaced and expressed interest in the Saturn brand and retailer network. GM will be reviewing expressions of interest from the potential buyers and will look to secure an agreement with a specific buyer later this year. S.J. Girsky&Co. has been retained by GM as advisor for this transaction. Saturn will continue to keep its retailers updated on its progress throughout this process.

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Automotive News [sub] reports that Ford has decided to shelve plans to introduce a diesel F-150 in 2010. Last spring, Ford demoed dealers with a 4.4-liter oil burning V8 F-150. It boasted an estimated 350 hp and 500 lb·ft of torque—more power and twist than the F-150’s 5.4-liter gasoline V8 while quaffing 20 percent less fuel. And then F-150 sales dried-up and gas prices cratered—especially relative to diesel. “No new date has been scheduled [for the diesel pickup],” Mark Fields, Ford’s president of the Americas, told Automotive News late last month. “We’re still looking at the appropriate time to do that. We’ve put it on the back burner for right now.” According to AN‘s source/speculation, the diesel F-150 has officially been delayed until 2013. “But it will likely be canceled outright unless diesel prices fall substantially below gasoline for a prolonged period.” And then what? You’d think Ford would want a fully developed, tried and tested diesel F-150 in their quiver ahead of any such completely unexpected development. Then again, money’s too tight to mention.