BusinessWeek reports that Sirius-XM may soon go away. “Sirius signed top talent-including Stern, Martha Stewart, and Oprah Winfrey-to draw in subscribers. But programming costs have triggered heavy losses.” The now-merged former competitors have been on a two-decade spending spree, paid for with Godzilla-sized credit cards. Putting a name to the pain, Sirius-XM’s looking at $1b in debt’s coming due next year, without any way (otherwise known as positive cash flow from operations) to pay off the note. Sirius claims it can continue to fund operations and avoid filing for bankruptcy by raising money from existing lenders, who will be “flexible” about an additional $350n due in May.” Hey! I’ve done that! You get yet another credit card with which to pay the minimum payments due on the old card, right? Well, good luck with that. With people around the globe tightening their belts, and iPod connectivity in cars, you have to think that the satellite radio subscription will be one of the easiest spedning cuts motorists can make. And if there is a God, Howard Stern will find himself out of work.
Category: Media
After David Champion, head of Consumer Reports‘ auto testing, presented this year’s reliability results, I asked two simple questions. 1. What month were most surveys returned (i.e. how old are the data)? 2. What problem rates do the dots represent? Or, to keep it as simple as possible, what was the average problem rate for a 2008 car? Unfortunately, Mr. Champion did not know the answer to either question. He could only respond that the surveys went out in “the springtime,” and that the dots are relative. As if the actual problem rates they represent were of no consequence. In fact, both things matter. The truth about CR, as we’ve noted here: before: 1. The data are already about five months old, and will be 17 months old before they are updated again. 2. The differences between the dots for a 2008 model are about one problem for every thirty cars. But, since even the head of CR’s auto research doesn’t know these facts, it should come as no surprise that their millions of subscribers haven’t a clue. And then things got ugly…
No biggie. A social call to one of our writers, thanking him for the infotainment. Needless to say, we tried to get Big Al to tell us something, anything newsworthy. Nada. Not a sausage. Still, I remember when I started this website. Back in the day, Peter DeLorenzo hyped his Autoextremist site with banners proclaiming “Bob Reads It,” “Rick reads it” and… what was it again? “Tom?” “Dieter?” I wondered if a) it was true and b) TTAC would ever gain sufficient prominence to catch the ear of the ultimate insiders. So, anyway, it’s another milestone for TTAC. Suffice it to say, talking to the industry swells will not give us swell heads. We will never forget that our first, indeed our only obligation is to you, our readers. In that spirit, when we hit the North American International Auto Show, we will do our level best to report the truth about cars. As always. Meanwhile, if Mr. Mulally could call us back re: an interview, I’d be most appreciative.
We’ve long held that Cadillac is one of two “core brands” for GM that should be preserved (along with Chevy) at all costs. To compete with the big boys of luxury (Hyundai, anyone?) Caddy needs new product, and unlike Pontiac it’s going to get it. But will Cadillac’s product pipeline be filled with unique, desirable products or cannibalistic also-rans? I know, let’s ask that font of balanced coverage and journalistic integrity, Motor Trend! In fairness, MT admits that “It’s been four or five decades since Cadillac built a car that came close to being ‘The Standard of the World.'” “But” comes the now-customary about face that emerges any time a mainstream journo discusses the failure of an American automaker, “with the new CTS, and especially the world-beating CTS-v sport sedan, (Cadillac’s) rehabilitation is well underway.” Oh really? Let’s take a look.
Before I rip you-know-who a new you-know-what, let me just say that if you haven’t sampled Alex Nunez live blog diary (oxymoronic but there you go) of the new Knight Rider TV show, it really is worth the jump. I don’t know if Alex is gay, but it’s the cattiest thing in the history of the world, ever. Pulitzer-prize poetry, I kid you not. (e.g. “Now we get to the part where Mike curries favor with Cooperman. KITT’s got Mike’s six. Mike punches Cooperman’s girlfriend in the face, because she talked more trash to him, and he wasn’t tied to a chair with a firehose blasting him in his grille. We go to commercial.”) OK, now to the intra-blog attack… “Green car advocate proves first hand how small cars aren’t deathtraps” is a completely irresponsible post. While we’re happy that gas2.0.org’s Nick Chambers walked away from a bad smash in a Toyota Yaris (three-star front and rear side safety ratings), his anecdotal experience proves precisely nothing about small car safety. As our post on small car insurance indicates, statistically, there’s another, more credible POV on this. We’d expect Autoblog to be more responsible in its reporting. Or, in fact, not. And as long as they’re not, TTAC will be there.
What with all this End of Days news swirling around the autoblogsphere, you’d kinda hope that Detroit News columnist John McCormick could find something useful to say about the plight of his hometown heroes. And he does– if you’re a Big 2.8 auto exec. Yes, McCormick’s column inches are devoted to a simple message: buy a Chevy Traverse, Dodge Journey or Ford Flex! If it wasn’t so tragic, Big Mac’s lead could be considered comedy gold. “It seems like Detroit’s automakers can’t get an even break. Just as General Motors, Ford and Chrysler are launching vehicles better tuned to the needs of American consumers slammed by high fuel prices and a soft economy, the world plunges into a massive financial crisis. Now with mounting monetary pressures, the very existence of some automakers is in question. Meanwhile, consumers, even if they are in the mood to buy a vehicle, struggle to obtain financing because of the interbank credit freeze. It’s all very troubling, yet at the same time for those plucky enough to head to dealer showrooms, the Big Three have some excellent vehicles in their lineups and more on the way. And while the present slump in the price of oil should not be seen as a permanent trend, today’s relatively cheaper gas does bring certain larger vehicles back into contention. Consider, too, that Detroit-area dealers are probably more eager than ever to work with buyers to complete a sale.”
Yes, I know “Saved by Zero” is a song by The Fixx. I respect New Wave. But I don’t like how it tastes when Toyota crams it down my throat for my own good.
The former PR spinmeister currently writing under the Autoextremist moniker has long been one of Detroit’s most fervent not to say (’cause that would be rude) ardent supporters. No more. Peter DeLorenzo has put down his pom-poms and finally faced the truth about both GM and Chrysler. “GM’s foray into the idea of a Chrysler takeover exposed that company’s dire situation for all to see. Burning through cash at a prodigious rate – a little more than $1 billion per month according to estimates – GM’s search for crucial financing is getting beyond desperate at this point, and now everyone knows it… GM’s situation grows more precarious by the moment, and if they don’t make a deal for that much-needed infusion of cash soon – in the next 12 months, preferably less – then we could be contemplating the unthinkable. And that means not only the end of GM’s 100-year reign as the largest American car company and one of America’s historical industrial touchstones, but the end of General Motors, period.” As for Chrysler…
As we’ve just reported, The Detroit News seems to have abandoned the normal standards of reporting. In j-School ethics world– informed as it is by the movie All The President’s Men— if you can’t confirm a story with two independent sources, you either don’t run it or you clearly identify the info as unverified. As in “according to unconfirmed anonymous sources,” presenting the resulting material as speculation. To avoid the semantic hoops, TTAC established the Wild Ass Rumor (WAR) category. With this story on Kirk Kerkorian’s Ford stock sell-a-thon, we’re deploying WAR on the DetN’s behalf. “Billionaire investor Kirk Kerkorian’s decision to sell off his stake in Ford Motor Co. may have been precipitated by a series of high-profile departures from the struggling automaker that began less than two weeks ago with the abrupt resignation of Chief Financial Officer Don Leclair. Since then, two of Ford’s most respected board members also have tendered their resignations. Ford says the events are unrelated, but a source close to Ford’s largest private shareholder told The Detroit News that Kerkorian doubts that and is concerned that the departures signal trouble at the top of the nation’s second largest auto company.” Trouble at Ford? NO WAY! And there’s no reason Kirk would want to pin the blame for his $600m or so loss on someone else, is there? More meshugas after the jump.
True dat. We’re looking for one of our Best and Brightest to write 800-word automotive videogame reviews for TTAC. We’ll pay $100 per published piece plus free videogames (disclaimed at the bottom of the review, of course). Send your magnum opus (within the body of an email) to robert.farago@thetruthaboutcars.com with SAMPLE REVIEW in the subject bar. Rate the game from one to five stars and include a one sentence summation. Again, the review must be exactly 800 words (not including title, star ratings and summation sentence). Remember: ‘tude counts. Oh, and Midnight Club: Los Angeles is out today. Here’s a review style you shouldn’t copy, from Streetfire: “I have to say that from what I’ve seen so far in the last 11 hours it is pretty impressive. It came as no surprise that the party was held in the heart of Hollywood at the Virgin Megastore and featured a performance by the Eagles of Death Metal. I’m personally a big fan of the fact that the game has a 97 song track list with music of all types, and a large number from the SoCal area. Being from Los Angeles, it’s pretty cool to be playing a badass car game that let’s me drive through the streets of Hollywood doing all of the things I WISH I could get away.” With. Although that’s one way to avoid ending a sentence with a preposition…
DaveAdmin over at Allpar Weblogs is just as unhappy with the coverage of the potential GM – Chrysler debacle merger as your faithful TTAC correspondents. But for different reasons. Apparently, it’s OK for the mainstream press and armchair analysts to suggest that this is a done deal, but they don’t “get it” when it comes to what might come next. In the main, DaveAdmin reckons they’re all guilty of the sin of omission. “No article I have seen suggests that maybe, because the Dodge trucks are clearly superior (especially in Class 3-5), that GM might shift over to Dodge’s designs. Only one mentioned the Dodge trucks in any way other than ‘to be canned’ at all, and that was to point out the bad timing of their launch. Ford’s big, trucklike Flex, Toyota’s Tundra (with one factory already being converted to other uses), and Ford’s upcoming F-series were apparently examples of good timing. No article I’ve seen mentions the Hemi except disparagingly, as in ‘dummies make V8s when people don’t want them any more.’ (Four years ago.) Never mind that trucks still need V8s and the Hemi is best in class, especially in variable cam form. No article I’ve seen mentions the Phoenix engines or the dual-clutch transmission technology. The latter, to be fair, appears to be dead at the moment, as Chrysler chose to cancel their launch by picking a fight with Getrag and abruptly canceling all talks.” Yeah, to be fair. It gets better…
I’ve just received my copy of AutoWeek’s ’09 Buyer’s Guide. Logic suggests that a buyer’s guide would have some sort of relative rating system to help consumers decide, you know, what to buy. Logic isn’t bought and paid for by automotive advertisers. Or, in this case, is. I won’t trouble you with the hosannas, which are more common than car hacks imbibing at a press junket’s open bar, or the “a nice vehicle but you just might want to look at something else” remarks, or the one and only complete slam (Chrysler Sebring). But I thought you might get a kick out of the prevarications and WTFs embedded in the “Our opinion” box. Acura TL: “An enticing performance proposition with the AWD version, but the extreme design departure from the previous generation might turn some away.” Audi Q7: “Good looks, and the new diesel option makes the Q7 even more attractive.” Cadillac STS: “A decent vehicle with sharp looks and a potent V6 base engine.” Chevy Aveo: “Economy car with economy styling that serves just fine for fuel-efficient basic transport.” Suburban: “Big enough to haul a large family and their stuff while returning respectable gas mileage.” Chrysler Aspen: “Affordable full-size luxury, now with greener prospects in hybrid trim.” Had enough? There are a few more after the jump.
I know that car critic Dan Neil lives on the Left Coast. (I Googled the “LA” in “LA Times“). And I know that anyone with a college education living west of the Rockies (or north of Houston Street in Manhattan) must espouse hatred of gas-guzzlers, lest they face death by arched eyebrow. But you’d hope that Dan’s Pulitzer Prize would give him the freedom to detour from the usual guilt trip every now and then, pull in at a rest stop and review a fast car for what it is. Which is fast. Did you know that the Corvette ZR-1 is fast? Dan’s gonna tell you– after 10 paragraphs of rhetorical mea culpa throat clearing. “What you would do is line up the ZR1 on some empty straight of tarmac and nail the throttle. To do so is to throw yourself on a horsepower grenade. Even with traction control engaged, the wheel spin is enough to cause the ZR1 to sidestep in a cloud of Michelin-flavored smoke and thunder. A half-second later, the tires hook up and you’re drowning in your own spit and hallucinating speed. In less than four heartbeats (3.4 seconds), you’ve gone through 60 mph and you’re grabbing second gear.” And it handles! In fact, “the ZR1 has more lateral grip than the world’s current supply of Polident.” Now you know. So do you feel dirty? Dan does. But he’ll get over it. At least in private.
Absorb? Absurd! Still, The Detroit News is reporting the GM Chrysler merger deal as if it exists. Which, if true, is one scary ass concept. Well, to most rational people. Which, according to the trifecta of scribes assigned to story, doesn’t include everyone. “Analysts say a deal along the lines of Chrysler’s purchase of AMC, which eliminated Detroit’s No. 4 automaker as an entity and all its brands except Jeep, would make sense for GM.” Huh? Ladies and gentlemen, Aaron Bragman, an analyst at Global Insight: “For GM, the only reason to absorb Chrysler would be to eliminate a competitor.” Yes, but does that make any sense? No comment. So, never mind analysts. Let’s talk to someone in the shadows. “The source familiar with the negotiations told The Detroit News that GM could cut costs by eliminating much of Chrysler’s staff and gradually shifting production of Chrysler vehicles to use more GM components.” THE source? We’re down to one now are we? And is that BS or what? But wait! There’s more!
In case you weren’t aware, TTAC’s publisher (that’s me) and Autoblog’s Editor-in-Chief (sounds painful) John Neff have been having an epic pissing match in the comments section of our blog on their HUMMER vs. Toyota comparo. I took them to task for not disclosing the sponsorship for their off-road safari. Neff signed-on to say there was no sponsorship– except for the vehicles themselves and insurance (which was activated by their blogger’s driving). And besides, WHY DON’T YOU LEAVE BRITNEY ALONE! Anyway, we’re still waiting for that little piece of fair disclosure text under their blog. And needless to say, we will continue to put AOL’s automotive extremity in a Fujiwara armbar as and when we see fit. And this time we don’t see fit. Once again, AB’s Alex Nunez friggin’ well NAILS his live blog of Knight Rider, this time chronicling Season 1, Episode 4. Forbes centogenarian scribe Jerry Flint may feel the need to quote Percy Bysshe Shelley’s poem Ozymandias, but I’m bookmarking Nunez’ Knight Rider screed for my personal posterity patrol. Behold! “8:45: KITT ID’s the guy who poisoned Mike. ATTACK MODE! They plot to intercept. Mike talks to Sarah. He loves her. His heart stops. KITT: “He is dead.” Suddenly, I feel more alive.” And “8:57: Cut to: dreamy sequence. Sadly, this is not heaven, Mike is not dead, and we’re going to probably do this again next week.” In fact, The Hollywood Reporter reports that NBC has ordered-up four more episodes of Knight Rider for Mr. Nunez’ haiku-like evisceration. Can’t wait. No really. I’m a big fan.
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