In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

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In my recent test of the 2015 Ford Expedition, I wanted to give a sense of real-word pricing rather than just MSRP, so I quoted TrueCar’s estimate of the average discount available on the vehicle. I had planned to quote available cash and lease incentives direct from Ford’s website, but after 15 minutes of research my head started hurting and the story would have been longer than DeadWeight’s diatribes on what’s wrong with Cadillac.

So let’s take a separate look at the quagmire of incentives that Ford offers you to buy an Expedition. Before you click the jump, do you know the expansion of the above acronym “RCL” ? (Read More…)

Has there ever been a longer running runner-up in an automotive category than the Ford Expedition? The large three-row SUV has been outsold by the Chevrolet Suburban/GMC Yukon XL twins for years by as much as a 2:1 margin in the ever-shrinking large SUV segment. Throw in the Tahoe and regular Yukon numbers and the Expedition lags even further […]

We have opined in these pages before about how for every Tesla sold in America, there are two or three glowing stories written about the electric automaker. There are days when over 50 percent of the pieces on auto industry news feeds are about Tesla, which is not bad for a company capturing 0.1 percent of the U.S. automobile market. Tesla Motors CEO Elon Musk is truly a marketing and public relations genius.

Given that, it is fascinating when a negative story surfaces about Tesla’s way of doing business and the slobbering media is strangely silent.  (Read More…)

Why yes, it has been only three weeks since our last Volkswagen Golf feature story. Why do you ask? Maybe it’s because the little VW is on fire. The car is nearly single-handedly bringing back hatchback sales with the introduction last year of its 7th generation model. Winner of numerous national and international auto journo awards, MkVII Golf […]

The media is all abuzz about former Olympic decathlon gold-medalist Bruce Jenner transforming himself into a woman. The 2015 Volkswagen GTI could be considered the sporty car equivalent of a decathlete, excelling in a wide variety of automotive virtues. I see a marketing opportunity here for VW: the decathlon champion meets the decathlon champion of cars. After all, Jenner is a GTI himself: […]

My 25-plus years as a Big Time Auto Industry Executive afforded me many memorable moments. It would be difficult to single out one example, but I may be the only person on earth who has shaken hands with both Soichiro Honda and Derek Kreindler.

As for the low point of my career, there is no contest: the morning of May 7, 1998, four months after I joined Mercedes-Benz Credit Corporation. That was the day it was announced Daimler-Benz had merged with the Chrysler Corporation.

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Constant readers may recall I recently traded a 2008 Honda S2000 for a new Volkswagen GTI 6-speed. Both can sprint from 0 to 60 mph in the mid to high 5s, but with the turbo lag on the VW and the pre-VTEC lack of punch on the Honda, the power delivery on both cars is nonlinear, which grows tiresome […]

Movie director John Landis is probably best known for his 1978 comedy classic Animal House. I am such a fan of it that I recently made a pilgrimage to the Dexter Lake Club, the Oregon roadhouse used in the film where the frat boys partied during their road trip in a black suicide-door 1964 Lincoln Continental. (“Do you mind if we dance wif yo dates?”)

To folks in the retail automobile business Landis is better known for his lesser-known 2004 Independent Film Channel documentary Slasher, a movie that represents the most authentic cinematic depiction ever about selling cars. (Read More…)

Yesterday, I traded the most hysterically fun car I have ever owned, a 2008 Honda S2000, for a new 2015 Volkswagen GTI 6-speed manual. Allow me to explain.

My friend and fellow auto journo Tyson Hugie is the ultimate Acura fanboy. He owns a 2013 Acura ILX 6-speed with the personalized plate ILX, a 1994 Legend GS Sedan 6-speed and a 1992 NSX 5-speed which just hit 100,000 miles. He was honored by American Honda for passing 500,000 miles on his 1994 Legend […]

After I purchased my S2000 and was about to drive off the lot, my salesperson regaled me with stories about the Honda’s previous owners – an elderly couple who loved the sports car, called it their “baby,” but traded it for a Mercedes-Benz E350 Coupe because they wanted more room. None of this history was noted in their website or internet ads for the S2000, but why wasn’t it?

It turns out that most franchised dealer’s new and pre-owned vehicle ads on AutoTrader and cars.com as well as their own websites do not tell such stories because they are composed by automated services. The fun part is that dealers sometimes never proofread them, like in the example above showcasing the ultimate in Additional Dealer Markup.  Even better is when dealers try to write the ads themselves. Let’s take a look.

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As a tyke growing up in South Bend, Indiana, my father and I would often stake out the lots behind the Studebaker factories with hopes of spotting the next generation Avanti or Lark. Too often all we spied were rows of Mercedes-Benz automobiles due to the fact that Studebaker was the U.S. distributor for the German brand up until shortly before the closure of their South Bend operations in 1963.

Yesterday it was announced that Mercedes-Benz was returning to South Bend to build the R-Class crossover at the AM General plant, producer of the military Humvee and the late GM Hummer. Mercedes-Benz once moved their headquarters from South Bend to New Jersey and soon to the South (Atlanta) and now R-Class production is moving from the South (Alabama) to South Bend. Got it? (Read More…)

Tesla Motors CEO Elon Musk told the press last week that he is open to the idea of expanding their U.S. dealer network to include franchised dealerships. This would be a sea change for the factory direct-to-consumer company but we are not surprised. A few weeks ago, I predicted that Tesla would hook up with traditional dealers sometime in 2015. Back in 2013, my alter ego, Virgil Hilts, proposed that Telsa head in that direction sooner rather than later.

Now that it actually might happen, here is how we think Musk should put it together. (Read More…)

In a move that that will be mourned by…well, I am not sure by who, the lone surviving Cadillac retailer in England has closed its doors. English trade journal Car Dealer Magazine reports that dealership Bauer Millett in Manchester shut down just before Christmas. Citing the high cost of doing business and increased competition, owner Mitch Millet also gave up his Alfa Romeo, Abarth, Jeep and Chrysler franchises.

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