Only three lawmakers in the entire Mississippi state Legislature are willing to put themselves on record in support of red light cameras and speed cameras. Without opposition, the state Senate passed legislation yesterday that would put an immediate halt to the plans of several municipalities interested in implementing new photo ticketing programs. The vote followed last month’s 117-3 passage of a similar ban in the state House. State senators, however, did not believe that the House language went far enough.
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Posts By: Robert Farago
Appearing in front of the Wall Street Journal’s typographically-challenged ECO:nomics conference in Santa Barbara, California (where else), Ford CEO Alan Mulally predicted that electric vehicles will represent a “major portion” of FoMoCo’s lineup by 2019. OK, maybe 2021. I know what you’re thinking: big NSFWing deal. GM was predicting flying cars for its next model year less than a year ago. And Big Al will be sucking down Stoli martinis in Aruba by then. So what about, you know, now? How can The Blue Oval Boyz warm-up the AGW crowd (so to speak)? Automotive News provides the answer, such as it is. “Mulally said Ford was committed to shifting away from its recent reliance on light trucks for 60 percent or more of its sales so that more fuel-efficient passenger cars dominate. ‘We can now make cars in the United States and we can do it profitably.'” Question: does the United States include Mexico?
GM CFO Fritz Henderson and Euro-CEO Carl-Peter Forster have confirmed TTAC’s recent, union-fed suspicions that Vauxhall’s UK factory is facing extinction. The Daily Express reports that Fritz and Pete are using the same extortion tactics on the UK and European governments that proved so . . . lucrative in the U.S.
GM Europe’s chief operating officer Fritz Henderson said that governments across Europe, including the British, should step in immediately with cash to prevent the loss of 300,000 jobs. Mr Henderson said GM Europe needed a £2.9 billion injection to stave off collapse and finance the separation of Vauxhall and Opel from the beleaguered parent company. GM Europe’s chief executive Carl-Peter Forster said the closure of Vauxhall’s plants in Luton and Ellesmere Port on Merseyside would have to be considered if there was no support forthcoming from the Government.
“The next step would be the complete closure. Obviously that’s what we try and avoid. But if we don’t get support from the Government we will have to close down.”
Please. Don’t get to worrying about Rick Wagoner’s finances. First of all, Rick still made $5.4 million in ’08, the year that GM threw itself at the mercy of the US taxpayer (in their own arrogant, extortionist kinda way). And, as we reported some three years ago, GM’s CEO has a bankruptcy-proof pension. So when the artist formerly known as the world’s largest automaker finally sinks into the abyss of its own making, Rick’s OK. That’s assuming Wagoner hasn’t pissed away the $100 million+ he’s banked since ascending to the top rungs of the only company for which he’s ever worked. Meanwhile, in any case, what’s wrong with this juxtaposition [via Bloomberg]: “Wagoner’s [2007] compensation included a salary of $2.1 million and he wasn’t paid a bonus, the Detroit-based automaker said in a regulatory filing today. The largest U.S. automaker lost $30.9 billion last year, the second biggest shortfall in the company’s 100-year history.” Verecundia afflictus.
GM’s auditors have looked at the books and made their determination: “our recurring losses from operations, stockholders’ deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern.” The filing with the SEC is refreshingly blunt, in a carefully coded way. “Sales volumes may decline more severely or take longer to recover than we expect . . . and if they do, our results of operations and financial condition and the success of the Viability Plan will be materially adversely affected.” I wonder how many billions of dollars lie between the terms “affected,” “adversely affected” and “materially adversely affected.” The Detroit News finally makes the transition from cheerleader to smokin’ hot crime scene investigator—at least for this piece.
Without billions of bailout bucks filling the supposedly-Swedish brand’s corporate coffers, in the middle of a massive market correction, Saab’s a liability looking for one of those “born every minute” types. To that end, Saab’s CEO is doing a very bad job of convincing anyone that anyone wants to take the keys to Trollhättan from GM’s cold, dead hands. “There are about five [buyers] we want to talk to,” Managing Director Jan-Åke Jonsson Automotive News Europe. Huh? Would that be four? Or six? “There are a couple more we are also looking into.” Wait, that’s what? Something between six and eight? Wow! They love Saab! They really love Saab! Note to self: play poker with this guy as soon as possible. And when will Jonsson reveal his cards? “We should see which candidates are serious in the next week and a half.” Automotive News [sub] reveals the reason for all the Saab, lies and bankruptcy talk. “Sweden’s government has offered to consider loan guarantees for Saab if the brand can find a new owner to underwrite its business plan.” Sign here, we get the money, you get money. Sign me up!
This morning’s Financial Times reports that the Kuwaiti-based investment fund that owns former Ford subsidiary and British exoticar manufacturer Aston Martin wants out. After two years at the helm, with the luxury car market disappearing down the worldwide financial rathole, they’re “considering” offering majority interest to whoever’s got the cash to buy it. “The investment group has received several expressions of interest in a stake in Aston Martin as a part of the company’s plans to restructure its debt, according to people close to the situation.” Yeah, I’m interested too; does that count? Sorry. Too negative. Right. Anyway, how’s this for vague?
Personally, I crossed the Rude-i-con a long time ago. After some soul searching, I’ve made peace with the fact that telling the truth about cars means poking our collective nose into those dusty hidden corners that are NOT on the official tour. But it’s clear that some of the more recent members of our commentariat are not willing grasp the rake that mucks. They’ve expressed their displeasure at our editorial tone. As usual, I’ve deleted comments that flame the site, or threaten to yank the thread towards introspection, rather than the subject at hand. Also as always, I’ve given them my full attention and consideration. Given the increasing number of “you’re a bunch of nasty negative fucks” remarks, I’m opening this thread for debate re: TTAC’s tone. Yes, yes, we all know there’s plenty of poisonous grist for our editorial mill. Even so, should we ease up? Are we fair but mentally unbalanced? This week, TTAC may crest 1m unique views per month (the autoblogosphere’s SAAR) for the first time in its history. But we can always do better. As Mayor Koch used to say, “How am I doin’?”
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DATE: March 3, 2009 GM 09-03
TO: All General Motors Dealers & Saturn Retailers
FROM: Jim Bunnell, Executive Director, NA Vehicle Sales, Service & Marketing
SUBJECT: Vehicle Buyback Policy
…This letter also communicates GM’s policies for the repurchase of light and medium duty new vehicle inventory (herein after motor vehicles) upon the termination of a GM Dealer or Saturn Retailer (herein after “Dealer”) when there is no replacement Dealer. GM’s repurchase obligations are outlined in Article 15 of the General Motors Dealer Sales & Service Agreement and Article 21 of the Saturn Retailer Agreement (herein after “Dealer Agreement”). This bulletin provides the specific definition of “current model year” as referenced in the Dealer Agreement and outlines specific procedures for vehicle repurchases under both Articles. This letter does not replace, modify or alter the terms of the Dealer Agreement, and implementation of these policies is subject to applicable law.
GM’s policies applicable to vehicle repurchases are provided below:
Moral relativism is inherently childish, as demonstrated by my eleven-year-old. “You don’t make Lola take her plate into the kitchen.” Any assertion that her sister’s age removes her from the obligation meets with a derisive snort. In fact, Sasha reckons she’s a victim of a cruel, capricious system. “It’s not fair!” she cries, storming off– until I threaten to yank her poker chip pay. Then, grudgingly, she does what needs doing. All of which reminds me of GM’s PR “narrative.” As their sales dip by half, they cry “Everyone’s sales numbers are a disaster! You can’t blame US for this mess.” And then they walk off and we clean up (i.e. pay for) their mess.
CAUTION! PROFANITY AHEAD! Automotive News [sub] reports that the National Automobile Dealers Association (NADA) is telling the world what it’s going to tell The Presidential Task Force on Automobiles on Friday: don’t blame US for this shit. It’s essentially the same message NADA gave Congress back when GM and Chrysler first proffered their $19.4B begging bowl: don’t fuck with us. Let the market decide how many goddamned dealers Detroit can afford (even though US tax money is propping-up their dead man walking metal makers). At the same time, NADA plans to ask the Task Force a simple question: where’s OUR goddamned bailout? “NADA leaders also plan to urge government policies that would ease credit for vehicle inventory financing at dealerships. A lack of floorplan financing and unreasonable terms by lenders are forcing dealerships to curtail orders from automakers and in some cases shut down, NADA contends.” You know, this has the makings of a pretty good operatic score, in both senses of the word . . .
How post-modern is that?
Anyone remember the John Houseman ad for Smith Barney? “They make money the old-fashioned way. They UHN it.” Well, you can put that idea in an urn, at least when it comes to Washington State car dealers. Now that times are tough, the dealers have successfully lobbied (a euphemism if there ever was one) their state legislators to increase car dealers’ “document fees” from $50 to $150. Get ready to get ill, courtesy The News Tribune.
Such an increase could let auto dealers statewide pocket as much as $100 million to $150 million, money that would go straight to their bottom line. Those figures assume dealers will sell 1 million cars and trucks and that all dealers would charge the maximum fee allowed, as most do.
Sen. Tracey Eide, D-Federal Way, said she sponsored Senate Bill 5816 at the request of the Washington State Auto Dealers Association and its 328 dealerships, and one of her former constituents, Mary Byrne, former owner of Nissan of Fife. Byrne now is a partner in Advantage Nissan in Bremerton.
It gets worse.
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