Unbelievable. And yet, there it is, in The Detroit News‘ unsigned editorial: “President Barack Obama’s promise of aid to the auto industry is welcome, but it would also be helpful to the Detroit automakers if he stopped badmouthing them. The president late last week said he expected to provide additional assistance to the struggling manufacturers, but he added that they couldn’t expect to rely on building more sport utility vehicles and depend on continued low gasoline prices.” Yeah, we pointed out the fallacy of President Obama’s pandering to the “Detroit’s comeuppance is due to the fact they were (are?) greedy bastards who forced Americans into SUVs” shibboleth. But we (and by that I mean and I) don’t support the Motown bailouts. Never have. Never will. And, as far as I know, I don’t live on Planet Claire. “While Obama acknowledged the huge slump in auto sales that is hampering the recovery of the auto firms, he still implied that they’re not making vehicles the public wants. That’s just not true.” A genuine WTF moment, n’est-ce pas?
Wow, how sexist is that? “Let,” as in “a man is naturally in control of conveyances”? No, of course not. “Let” as in “my wife always lets me drive.” Or, to be less British about it, “I always drive, for whatever reason.” If so, there comes a time in every driver’s life when they have to let their significant other take the wheel. Outside of alcohol-related designated driverdom, I’ve faced this, uh, transition twice. First, when my UK license was suspended. Second, on Friday, when a nature walk turned into knee destruction. And now I know why the minivan’s stoppers are shot; hurry-up and brake is not the best way to ensure pad life. It’s not that Sam’s a lousy driver; it’s just that I’m a horrendous passenger. So the answer to the above question is “only when I have to” and “hell.” You?
I know, huh? Anyone who spent five minutes thinking about Motown’s $42.4 billion (and counting) feast at the federal bailout buffet would figure out that the beneficiaries are using tax money to discount their products—to support an unsustainable small market share. OK, that last bit’s a bit technical. But the bailout = discount = unfairness media meme is just gaining traction in the MSM. And it’s no small point. As I’ve pointed out here before, those federally-sponsored new car discounts effectively punish automakers who didn’t run their companies into the ground and threaten their products, profits and jobs. The Detroit News wakes-up to the story this morning. Chrysler, you are the weakest link.
Auto industry types tend towards hopeless optimism. On Friday, the Detroit Free Press gave the car biz’s rose-colored eyewear wearers an RTL (reason to live). “Big drop in March auto sales could be bottom, analyst says” sings the Freep’s now-standard, pre-monthly sales results tune: sales suck, they’re about to REALLY suck, but that’s it. We’ve hit bottom. Only this time the best the Freep can do is ONE auto analyst (Edmunds’ Jesse Toprak) and this money shot: “It is unlikely to get much worse.” Citation? “There has been encouraging economic news in the last two weeks. Housing starts rose 22% from January to February. Factory orders for durable goods such as home appliances increased 3.4% in February.” Yes, well, meanwhile, Volvo CEO Steven Armstrong told Autocar (or someone) that the NFSW world economy is good news for the brand that screwed itself by going upmarket. “We have a real opportunity for Volvo with respect to premium positioning. As people cut back, it becomes a little less acceptable to flaunt your money. Buyers who still want to reward themselves but don’t want to be ostentatious give us a great opportunity.” So great Ford can’t wait to ditch the brand.
Oh, and $8M. Or less? We shall see as the car in question, a 1939 Auto Union Grand Prix single seater, is up for auction this summer. “The 200 mph D-Type will be offered in Bonhams & Butterfields’ Aug. 14 sale of collectors’ vehicles in Carmel,” Bloomberg reports. “The silver rear-engined 485-horsepower racer was produced by the quartet of Horch, DKW, Wanderer and Audi. Helped by subsidies from the Nazi government, the ‘Silver Arrows’ of Auto Union and its rival Mercedes dominated European motor racing from 1934 until the outbreak of World War II.” Ach, ja. Die Nazis. Speaking of controversy, this is the same D-Type that was going to fetch $12M back in February ’07. Only Christie’s pulled the car four days before hammer time (sorry, Steve) due to questions about its provenance/authenticity. “Since then, further information was supplied by Audi Tradition, the heritage wing of the carmaker, said [Bonham’s Rupert] Banner. Audi identified the chassis as number 19, which was raced by Austrian driver Hans Stuck and finished sixth in the 1939 Grand Prix.” Bonham’s also confirmed that the car’s current owner is Abraham “Abba” Kogan, a Chinese-born Brazilian who manufacturers and leases gaming machines for the US and Japan. So, nothing untoward there, then.
The following email just came over the TTAC transom. Negotiations between Chrysler and the Canadian Auto Workers have broken down three days ahead of Canada’s bailout deadline and Uncle Sam’s defunct deadline for union concessions. Chrysler has already threatened to pull out of Canada. Given this stalemate, and the Presidential Task Force on Automobile’s determination to keep the zombie automaker in business, they just might.
Chrysler LLC Statement Regarding CAW Talks Attributed to Al Iacobelli, Chief Bargainer:
“We all recognize that we are in unprecedented times as it relates to the global economy and current financial crisis, which has a direct impact on the automotive industry. After several days of bargaining in good faith, Chrysler and the CAW have not reached an agreement that closes the competitive gap with other automobile manufacturers in Canada, to ensure Chrysler’s immediate viability.
The news that the Presidential Task Force on Autos (PTFOA) has decided to “loan” Chrysler and GM more money arrived well ahead of the March 31 (Tuesday) deadline. No less a personage than the president confirmed that Uncle Sam would turn a deaf ear to the 60 percent plus of America voters who oppose Motown Bailout III (Don’t forget the DOE tour). The announcement removed any possibility that GM bondholders and/or the unions would satisfy the previous loan’s conditions for a major debt for equity swap, or that GM would get its brands sorted out. To counter-spin this wholesale lack of “progress,” Bailout III will claim that new, piano-wire like “strings” are attached. Such as?
Remember when the press/GM shareholders were after Car Czar Bob Lutz to take a haircut on his salary given that The General was well on its way to the bailout buffet. “I gave at the office,” Maxium Bob didn’t joke. And then they took away his corporate jet and he quit. Just like that. NSFW this. I’m outta here. Obviously, Detroit News columnist Daniel Howes doesn’t enjoy Lutz-like perks. But today’s column echoes the Czar’s imperious indignation. Danny’s mad as hell at president Obama for suggesting that Motown should make [more] concessions after its next bailout bonanza. What’s the biggie? Did Daniel forget to notice the word “after”? Yup. That and the fact that Detroit’s woes are entirely self-inflicted.
Sacrifice? What, exactly, has this town and its investors been experiencing the past three-plus years? Spring break? This notion, aired during the congressional inquisitions late last year, picked up by Team Obama and wielded by whoever’s trying to score points, that Detroit Auto hasn’t yet “sacrificed” in a (losing?) effort to fix itself is absurd.
So what, you ask, has Detroit done to qualify for this cry of basta? Jump!
Eyal Binshtock is the unlikely name of the web slinger who’s constantly on my NSFW to create a regular Bestcovery feature (and permanent link) on TTAC. And so we shall. Meanwhile, his best bud took these snaps of the new Porsche Panamera on the PCH. I’ve yet to see one in the flesh, but I hate big butts and I cannot lie. Never mind. I can’t wait to put the Panamera through its paces. But then I’m a Porschephile. And I have a thing for ugly cars. You?
The MSM knows GM’s broken. (Ya think?) They also know the Presidential Task Force on Autos (PTFOA) is on the case, writing checks as fast their little pens can scribble; it takes a LOT of checks (and no balances) to keep the zombie automaker from going belly-up. The press also realizes that something must change! But . . . what? Rick Newman over at US Snooze and World Report (that was unnecessary, but fun) reckons he knows what GM needs to do that it isn’t doing now. Do what the competition’s doing. Pedants note: Rick’s not suggesting ten new products. I think. He’s simply saying that the following machines are “some of the top cars from which the Detroit automakers can learn.” Presumption up with which GM’s top brass can not put. Presumably. Oh, and Rick, you might want to check the sales charts for some of these, and/or ping TTAC’s B&B for slightly more meaningful memes than Detroit hearts building big.
Yes, it’s EV Day here at TTAC. Well, morning. And despite last night’s harangue, one of our Best and Brightest is ready to rock and roll in plug-in paradise. He’s seen the promised land. And he wants to know how to get there with you. Electricians of the world unite! Your time is at hand! Etc..
I have a question for the B&B. While remodeling my home I installed a dedicated line (10/3 wire) to a 30A exterior outlet box on the outside of my house by my driveway. What breaker size and plug type should I install? I’m trying to future proof my home for the day we’re all driving some sort of PHEV. At the very least I’ll be able to use a welder or install a dryer in my driveway.
Autocar has revealed Nissan’s luxury brand’s five-year plan: “a Mercedes S-class-sized limousine, a new all-wheel-drive seven-seat SUV and an all-electric entry-level model.” Guess which one is slated for 2012? Meanwhile, the new M has a no-V8s-please date with 2010. “This car will be engineered to accept Infiniti’s 3.7-litre V6 petrol engine, and its forthcoming 3.0-litre V6 turbodiesel—although both the EX and FX SUVs will get the V6 oil-burner before that.” [NB: Infiniti’s in Europe now, hence the oil burners. For them.] So far, so believable, Moving along the timeline, and across the credibility axis, next up: a 2011 “flagship.” No, not the S-Class thingie. A new QX SUV! Rescuing that turkey’s rep in the middle of the SUV downturn strikes me as a billion dollar windmill tilt, but, hey, show us what you’ve got. In 2012, an Infiniti Quattroporte killer. Huh? Just the sub-head. “The firm’s biggest four-door will be badged ‘Q’ and will take over from the Q45 saloon that Infiniti discontinued in 2006.” And for good reason on all counts. And finally, electric dreams. “Infiniti’s most distant plans currently include a battery-powered compact model, although building it is still very much an ambition for the company rather than a concrete part of the product schedule.” As good a definition of vaporware as I’ve ever read, excluding Tesla press releases.
Surprise! The day after the president told the world that his administration is ignoring public opinion and re-bailing out Chrysler and GM, the Chief Executive’s minions have revealed their new Corporate Average Fuel Economy (CAFE) targets. First, the dig [via the AP]: “Under the changes, which are slightly less stringent than those proposed by the Bush administration [emphasis added], new passenger cars will need to meet 30.2 mpg for the 2011 model year and pickup trucks, sport utility vehicles, and minivans will need to reach 24.1 mpg.” Why the roll-back? David Kelly, acting director of the National Highway Traffic Safety Administration, said Obama’s decision to adopt the old Bush figures “showed the agency had done a good job after two years of work. For as much as people wanted to criticize NHTSA, this is clearly the best step that is out there that is the best step to improve fuel economy and do so in a reasonable way that doesn’t force manufacturers into bankruptcy.” Right. Sorry, I forgot: can’t bankrupt Chrysler and GM. ’K. Math. Fallout. Jump.
Now that the Presidential Task Force on Automobiles (PTFOA) has pre-capitulated on re-upping Chrysler and GM’s bailout bucks, an obvious concern arises: now what? Chrysler offers a tri-branded line of non-competitive products whose sales have been propped-up by federally-funded discounts plus plus plus. GM is still in over-branded, over-dealered, over capacity hell. So, if both companies score big bailout bucks ($22B), what will they spend it on? Building cars? Inventories are already swelled and, here’s the kicker, sales are still declining. As we approach the end of the month, Automotive News [sub] is using the “T” word: “The sales numbers for March, due next week, are likely to reveal another tumultuous month. New-car sales could be down as much as 40 percent, according to J.D. Power and Associates. And the monthly sales rate will continue to flirt with lows not seen in 27 years.” Interesting choice of words; who’s about to get NSFWed here?
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