Today’s resignation of Chrysler’s chairman and two other government-assigned directors was hardly a surprise, as now-Chairman and CEO Sergio Marchionne had signaled that changes were coming in the wake of Chrysler’s “payback” of government loans. In fact, Rebecca Lindland of IHS Automotive predicted that chairman Robert Kidder, as well as the other two departing directors would be the ones leaving, telling the Freep

Three of the five Chrysler board members who are government appointees — Kidder, Stuart Scott and George Gosbee — are members of investment advisory firms.

“Now, you kind of need to have people that have distinctive automotive industry experience verses financial expertise,” Lindland said.

But Lindland was only half-right. She picked the departing directors perfectly, but Marchionne didn’t replace them with even a hint of “distinctive automotive industry experience.” But not being a dyed-in-the-wool “automotive guy” himself, he apparently had some slightly different qualifications in mind…

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According to Automotive News [sub], the automotive supplier industry is going coo-coo for center stacks. Calling it “the hottest chunk of vehicle real estate” for suppliers, AN reports that the center console has “become a California gold rush of opportunity.” Having glanced at the headline, I figured the topic would make for an interesting question: what’s your favorite center stack? If nothing else, I figured it would be an opportunity to sing the praises of my M Coupe’s stripped-down, old-school console (I realize there’s nothing more dull than a car writer praising his own vehicle, but bear with me… there’s a point coming).

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Welcome to Bob Lutz week at TTAC! I spent several hours recently with the auto industry’s most notorious executive, and elements of that interview will be the basis for much of my writing this week. We’ll also be capping the whole thing off by voting on the 2010-2011 Lutzie award for most unfortunate quote by an auto exec. And rather than jumping right into the meat of the interview, I want to kick off Lutz week by looking at a few cars that came up in our meandering conversation. After all, these are not just vehicles… when Lutz brings them up in an interview, they become stories, little encapsulations of his philosophy or the state of the company that made them. Let’s start with a car that I literally had never heard of before he mentioned it almost in passing: the Dodge Dakota Convertible. Eat your heart out, Murano CrossCabriolet… the Dakota was the original “WTF-vertible.”

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Remember Bertels’ stranger-than-fiction write-up of former DNC Chair Terry McAuliffe’s Mongolian EV /Visa plant? Charles Child at Automotive News [sub] has looked at McAuliffe’s scheme and comes away less than entirely impressed, noting that

even casual scrutiny of his vision reveals overwhelming obstacles. Let’s be plain: His plan is dead on arrival.

You won’t find a zinger like that in Bertel’s piece, but only because he keeps his head down detailing the entire bizarre history of McAuliffe’s venture, its roots as the “Hybrid Kinetic Motors” visa scheme, its ties to a couple of notorious former Brilliance boys and its money-first, product-later approach. Child’s takedown isn’t as well researched (nor does it contain anecdotes about former a Ambassador driving a lawnmower into a swimming pool), but the few remaining folks out there who think the former Democrat fundraiser might be on to something big should probably read on. After all, McAuliffe has put so much hype out there, this story is something of a target-rich environment for truth-tellers.
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The Environmental Protection Agency’s fuel economy testing system is notoriously weak, relying on self-reporting for the vast majority of vehicles, and exhibiting vulnerabilities to “gaming.” But rather than attacking each others’ EPA numbers, automakers seem to have agreed that it’s best if everyone does their best to juice their own numbers and allows the imperfect system to limp on. But over at Automotive News [sub], we’re hearing what could be the first shots fired in a new war over EPA ratings, as Product Editor Rick Kranz reveals that an OEM is starting to complain about another OEM’s fuel economy ratings. He writes:

An executive of one U.S. automaker suggests there might be some sleight of hand going on and that the EPA is not catching the offenders.

The issue: There’s a noticeable difference between the mpg number posted on some cars’ window sticker and an analysis of the data submitted by automakers to the EPA.

Ruh-roh!

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The publication of Frank Greves’ article in American Journalism Review served as a rude reminder to me how time really does fly. Mr. Greves describes the fallout from my less-than-fawning review of Porsche’s Panamera and Panamera Turbo. What follows is the story he didn’t tell: how Porsche tried to keep me out of the car, how they tried to “correct” my review after the fact, and the fractious relationship I’ve had with Stuttgart’s PR people since then. I’ll also provide links to the original review and video review of the car, so you can decide for yourself how wrong, or right, I was.

A serious warning before you click the jump: Sex, violence, skullduggery, harsh words, and excessive alcohol consumption are described in semi-graphic detail below. This is not for the faint of heart, the excessively moral, or the uncritically Porschephilic. It’s also not a short story. You’ve been warned.

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Bloomberg [via the Financial Post] reports that “one of the five biggest European banks” is “close” to loaning Saab $157m  so that it may pay workers and suppliers, in order to move towards restarting production. According to DI.se, the deal is predicated on Saab securitizing the loan with shares of Saab Great Britain or other “alternative assets.” But apparently whatever the banks ask for, Saab will try to give, as Theodoor Gilissen Bankiers analyst Tom Muller explains

They need the money immediately. I hope they solve it this week, otherwise I think it’s over for Saab. It’s a very dire situation.

He’s not kidding…

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Bloomberg reports that Fiat is considering moving production of planned Alfa/Jeep-branded compact CUVs from its Italian Mirafiori plant to the US, as a rising Euro forces tough production choices. Production of some 280,000 units per year were planned to start at Mirafiori in late 2012, but Fiat may now build an as-yet unannounced subcompact there instead. According to Bloomberg’s reporting, Fiat/Chrysler CEO Sergio

Marchionne, while confirming his commitment to invest at the Turin facility, told Piedmont Region President Roberto Cota Aug. 29 that he may change the production plans for the plant.

“Fiat is evaluating which model it will build at Mirafiori,” Cota said after meeting the CEO.

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“Frankfurt in September, a city full of car crazy people from all over Europe, but no Saab at the IAA. However, few will notice it. “ So far, so true. Saabsunited reports that Saab will NOT have a booth at the Frankfurt Auto Show. Which is a good thing, because the cost saved for a decent display at the IAA can easily cover a good part of the monthly payroll at Saab. Currently, there is no money for the payroll – which has turned into a bit of a tradition at the storied Swedish carmaker. If I’d have the money just for the hyperinflated hotel rooms for a whole crew, I could retire comfortably. It’s THAT expensive. However, Saab has not given up on Frankfurt. Which is a bad thing. Read More >

Sweden’s Dagens Indudstri, the financial paper most hated by the Saab faithful, has dug up another interesting twist in Saab’s concentric circles around the drain: There is one party that is checking daily whether Saab has finally gone belly-up: The consortium of real estate developers that a month ago bought 50.1 percent of Saab’s land, factories and improvements for around $40 million.

This was considered about 30 percent below market. Nevertheless, a lot of people doubted the sanity of the consortium, which is backed by a large Swedish insurance agency. After all, the tenant is Saab, and with its current references, the company would have a hard time renting an apartment in downtown Stockholm. Dagens Industri just found out why the consortium is quite happy with its distressed tenant: If Saab can’t pay the rent, the consortium gets the whole shebang for no extra money. Read More >

The music world is going nuts over the Federal Government’s second major raid of Gibson Guitars in just two years. Agents stopped production at Gibson’s facilities and confiscated massive quantities of wood, unfinished guitars, and finished products. This article covers the basics, including Gibson owner Henry Juszkiewicz’s decision to defy the federal government and continue shipping finished guitars to retailers after the raid.

Why would the government use armed agents to attack one of the few major manufacturers of anything remaining in the United States? The political motivations for such an action are outside the scope of this article, but the justification for the action is the Lacey Act, which regulates the importation of plants, animals, and products thereof into the United States. The Lacey Act effectively permits wooden musical instruments to be seized indefinitely, without compensation, and places the burden of proof on the owner, not the government. Do you own an $11,000 2011 Gibson Eric Clapton Edition Les Paul? Want to take it to Canada and back? You’d better be prepared to document the source of all materials to the government’s satisfaction upon your return, or you could lose it indefinitely. If you thinking documenting that is tough, what if you’re ZZ Top’s Billy Gibbons returning from an overseas tour with your real 1959 sunburst Les Paul, for which you’ve already turned down at least one $5,000,000 offer? Good luck documenting the wood from a fifty-two-year-old guitar.

Very few TTAC readers travel with guitars, particularly across the country’s borders, so I don’t expect this to worry you personally. If, on the other hand, you want to drive across the Canadian or Mexican border in your own car — or even a rental — consider this: The same law that allows the Feds to raid American manufacturers and seize the possessions of Americans without compensation applies to cars, too.

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Saab has already warned its workers that paychecks due tomorrow could be delayed until “committed” funds from investors arrive, but Bloomberg reports that the warning may not be enough. According to the report

Any delay in the August payments will prompt the unions immediately to start a process aimed at ensuring state coverage of wages in the event of the carmaker’s failure, officials from the IF Metall and Unionen labor groups said. The unions, after gaining employees’ backing, would first file payment requests with Saab. If salaries remain unpaid in seven days, the unions may then ask a district court to declare Saab bankrupt.

That could put Saab into bankruptcy in as little as two weeks. Saab’s long nightmare seems to be drawing to a close.
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Conventional wisdom says that the Chinese will suck all the know-how out of their foreign joint venture partners, and once they are through with them, they’ll discard them like Dracula a bloodless virgin. As a thank you, the Chinese will flood foreign countries with cheap Chinese cars. The trouble with conventional wisdom is that it is rarely true, or wise. Actually, the Chinese are now worried that the foreigners amass too much power. “Foreign car producers have begun to take more control of their joint ventures in China, sidelining their Chinese counterparts from business partners to factory providers,” China Daily writes today. China Daily is owned by the Chinese government. Read More >

Someone call Homeland Security: Large segments of Americans (if we still can call them that) are willing  to spend hard-earned dollars on (are you ready for that?) CHINESE cars. Market research company GfK Automotive’s did its annual Barometer of Automotive Awareness and Imagery, and found that a whopping 38 percent of the respondents would consider buying a Chinese car. Indian cars? A little less, but 30 percent ain’t nothing. That’s amongst all respondents. Once you get to Gen Y consumers, you’ll see wholesale desertion to the enemy.

Says the study:

“The openness to purchasing a Chinese and Indian vehicle is highest among Gen Y consumers, with 52 percent saying they are open to a vehicle from a Chinese automaker and 41 percent saying they are open to a vehicle from an Indian automaker.”

Imagine that. The cars aren’t even on U.S. shores, and especially basement dwellers are ready to buy them – even worse, with dad’s money. Read More >

Some time ago, I made the unpleasant discovery that Oprah Winfrey publishes a magazine devoted entirely to herself. It’s called “O!” and every month there is a photo of Oprah herself on the cover. It’s almost impossible to imagine the kind of people who would buy such a magazine, but the same could be said about a variety of products from Kenneth Cole’s Indonesian garbage shoes to “Four Loko” alcopops.

The Chevrolet Volt is TTAC’s Oprah. Not only is it overweight and despised by most right-thinking people (in a few senses of the phrase), it appears on our front page more than any other car. We’ve reviewed it at least three times, discussed it endlessly, and even attended an owner’s gathering.

We’ve recently heard that GM wants to be like Apple. Here’s the problem: GM already is like Apple. Not the current Apple, mind you, but the divided, contentious, collapsing (Cr)Apple of the early Eighties. That company had a “Volt” of its own. It was called “Lisa”, and I was there on the day it was unveiled.

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