Category: News Blog

By on February 8, 2011

Anonymous informants may direct police to pull over any motorist regardless of whether the other driver has committed any traffic offenses under a ruling handed down by the Michigan Court of Appeals last week. The state’s second highest court reversed the finding of a circuit court that had insisted on police officers having probable cause before initiating a traffic stop.

The court considered a March 17, 2008 incident in which Michigan State Trooper Christopher Bommarito was on patrol in the city of Southgate. As Bommarito was heading out of a parking lot, a woman behind the wheel of a red pickup truck pointed at a nearby car and mouthed the phrase “almost hit me.” Bommarito immediately activated his siren and entered into hot pursuit. He had no other information aside from the point when he pulled over Shaun David Barbarich who was later arrested for drunk driving.

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By on February 8, 2011

No war of words, no strikes, no hard feelings: After only two rounds of negotiations, Volkswagen and the metalworkers union IG Metall had a deal late last night. There will be a 3.2 percent increase in base pay effective May 1, 2011, and each employee will also receive a one-time payment corresponding to one percent of his or her annual pay but no less than €500. Read More >

By on February 8, 2011

Toyota’s Senior Managing Director Takahiko Ijichi had a surprise for the press that congregated today in the windowless basement conference room of Toyota’s downtown Tokyo office. They were invited to hear the results of the 9 month period from April to December. The scribes had prepared for the worst. As the numbers were released, some furiously begun retyping the prepared stories in which they had planned to insert the expected bad numbers before hitting SEND. Instead, Reuters reports: “The world’s top automaker posted a smaller-than-expected fall in third quarter profits and hiked its sales forecast for the year to March 31 by 70,000 vehicles to 7.48 million, thanks to better than expected sales in Asia, Japan and Russia.” Read More >

By on February 7, 2011

Senator Debbie Stabenow has introduced S. 3715, known as the Charging America Forward Act, which would extend tax credits for plug-in vehicles until 2014 and “front load” the credits, to create a dealership-level discount, among other provisions. Though inspired by President Obama’s call to put a million plug-in vehicles on the road by 2015, Stabenow’s website plays up a single, all-important angle to the bill

Michigan is already a leader in emerging hi-tech battery and electric car production. Other countries are acting to develop their own advanced vehicle markets because they realize the tremendous economic potential this new technology represents.  These initiatives will allow Michigan innovators to continue to out-compete the world and create new jobs here

Though the full text of the bill hasn’t hit Govtrack yet, the DetN reports that it’s chock full of plug-in subsidies, so it seems that Stabenow’s proposa is considerably more dramatic than the recent plug-in credit extension introduced by Rep Sander Levin. And that’s not necessarily a good thing…

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By on February 7, 2011

According to TrueCar’s newly-launched Clearbook site, I did… a little. If you want to make sure you don’t overpay for your next car, you should consider making Clearbook one of the stops on your pre-purchase web-research tour. The site analyzes over 3.6m nation-wide listings and shows, by model and location, what the car you’re looking for sells for on average… a valuable tool, provided you already know what car you’re looking for. If you don’t know what you want the next addition to your garage to be, TTAC recommends you contact our own car-buying gurus Sajeev Mehta and Steve Lang, who lend their expertise to our readers every Tuesday and Thursday in their advice column “New or Used?” Whatever you do, do not just crack open a beer and start surfing Craigslist… you will definitely regret it. Remember, information is power!

By on February 7, 2011

Fiat/Chrysler CEO Sergio Marchionne has earned our last several quotes of the day with recent controversial statements, so today we present him with the honor for a few choice words that have nothing to do with the United States government. Volkswagen has been sniffing around Fiat’s Alfa-Romeo brand for some time, as Herr Piech reportedly has the hots for the Italian brand. VW CEO Martin Winterkorn even said recently that

Alfa’s a beautiful brand but there are quality issues with the engines and suspension systems for example. I’m quite sure we could make a beautiful brand out of Alfa again.

For a while it looked like Fiat might be playing along with the interest, but recently Marchionne shot down talk of selling Alfa to VW. And he did so with the kind of acid-edged verbal shanking that makes TTAC smile and nod approvingly, saying

As long as I am CEO of Chrysler and Fiat, Mr [Ferdinand] Piech will never have Alfa Romeo. It’s hands-off. I told him. I will call him and I will email him. I’m not the one who bought Seat. He’s the one who bought it. I don’t know if he can [fix it], but he needs to try.

What do you do when a much larger firm comes sniffing around your prized (if troubled) brand? Kick them right in their own struggling brand, and in this case, Marchionne went straight for VW’s “Spanish Pontiac.” The jury is still very much out on Fiat’s grand Chrysler alliance experiment, but if it fails, it won’t be because Sergio Marchionne was scared of a fight.The guy’s talent for confrontation couldn’t be more obvious.

By on February 7, 2011

CEO Sergio Marchionne certainly suggested as much in a speech at the NADA convention over the weekend, in which he said

Who knows? In the next two or three years, we could be looking at one entity. It could be based here

From the perspective of the American taxpayer, this would certainly be the favorable outcome. After all, Fiat didn’t put a single Euro into the restructured Chrysler, and national bailouts don’t usually result in the expatriation of the bailed-out firm. But the US Treasury department isn’t the only master Fiat has to serve, and Marchionne’s suggestion that the Fiat-Chrysler alliance has touched off something of a “firestorm.” The Financial Times reports that

Pierluigi Bersani, leader of the [Italian] opposition Democratic party, demanding an explanation from Mr Marchionne said it was unacceptable for “Turin and the country to become a suburb of Detroit”.

Industry Minister Paolo Romani adds [via the Montreal Gazette]

The head of the carmaker must remain in Turin

And with Italian backlash against a possible Detroit headquartering of the Fiat-Chrysler alliance building, Marchionne is backpedaling furiously.
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By on February 7, 2011

A study by Booz & Co, that calls itself “one of the leading management consultancies in the world,” predicts that India will be the world’s 4th largest car market by 2015 and will surpass the European Nations by 2015. I don’t doubt that India is a very important market with great growth potential. But Booz & Co must have consumed too much of its namesake. Read More >

By on February 7, 2011

Robert writes:

I just replaced the engine in my 2005 Porsche 911 due to the failure of the INTERMEDIATE SHAFT. I would like to know just how widespread the problem is with 911’s and other Porsche models too. Why?

I am considering filing a lawsuit against Porsche to recover the costs associated with replacing the engine. If you have had an INTERMEDIATE SHAFT failure and have an interest in joining in my lawsuit or simply sharing your experience please contact me: westsidetravelmedicineATgmail.com

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By on February 7, 2011

Chrysler’s extended Super Bowl ad for its 200 sedan is making waves in the American auto business, for “bringing back the pride” in America’s automakers and the city that hosts them. But, as with most things Detroitean, there’s a cruel irony lurking just below the veneer of pride reborn. The Detroit News reports

Three workers from Chrysler Group LLC’s Jefferson North plant were arrested recently for alleged drug use during their lunch break after police were tipped off by the automaker.

The workers were arrested on Jan. 24 but have not been formally charged, said Det. Lt. Robert Honey, of the Michigan State Police’s County of Macomb Enforcement Team.

This is the second time in the last six months that workers at Chrysler’s Jefferson North plant have been caught indulging in overly celebratory lunch breaks. Despite all the feel-good Chrysler advertisements about Detroit Pride and quality craftsmanship, workers assembling the new much-lauded Grand Cherokee can’t seem to build the thing while sober. But there’s more to this than sheer irony: we don’t have details on the latest round of arrests, but a Chrysler-employed TTAC commenter has told us that the previous round of arrests came after second-tier workers turned in union brothers out of apparent resentment of the fact that their colleagues were making twice their second-tier wage while drinking and smoking their way through the work day. Which raises an interesting question: if Chrysler didn’t have a two-tier wage system, would Jefferson North’s 24 hour party people have been caught? Is it possible that the shop-floor tensions brought on by two-tier wages actually help curb UAW worker excesses?

By on February 7, 2011

Ford’s been fixing Lincoln for so long now, it’s almost surprising that things on the dealership level are still so broken. But, as Ford told its dealers at last weekend’s NADA convention [via Automotive News [sub]], it’s time to put up or become a former Lincoln dealership. By the end of this year, every Lincoln dealer must comply with a few of Ford’s “more than reasonable” expectations, to wit:

  • Offering what Lincoln calls “owner privileges.” That includes providing a free car wash and loaner vehicle to owners who come in for service
  • Having a dedicated service manager and dedicated sales staff for Lincoln, Bokich said. That applies specifically to Lincoln dealers paired with Ford stores.
  • Having only the word “Lincoln” appear on all franchise signage, not Mercury. Ford discontinued the Mercury brand as of Dec. 31.
  • Having at least 30 percent of used-vehicle inventory be certified pre-owned vehicles.

You know, those do sound like reasonable standards for a luxury brand dealer network… and if a Lincoln dealer doesn’t like them, well, Ford is looking to trim the network by 100 stores or so anyway. Still, isn’t Lincoln’s problem pretty conclusively product-related? There’s no word from Ford’s boffins on that front, which means some dealers may be happy to leave the Mercury sign up and become one of those used car lots that still has an Oldsmobile sign up. Yes, Lincoln needs a top-notch dealer experience (and an own-brand sales manager to keep marks away from the Taurus) to make Lincoln viable, but demanding it without even hinting at future product is to ask Lincoln dealers to make an incredible leap of faith.

By on February 7, 2011

In the olden days, the Detroit, Frankfurt, and Tokyo motor shows were the must go shows for any self-respecting carmaker. We’ll definitely be at the Tokyo show this December. The Detroit 3 won’t. Read More >

By on February 7, 2011

The Maryland Court of Appeals ruled on January 24 that officers who received speed camera tickets while driving police cars on duty must pay the $40 fine. Montgomery County Officers Dean Cates, Randy Kucsan, Bill Tran, and Dana Way protested after their department reissued citations in their names in 2008. They were found guilty in district court, but a circuit court judge dismissed the charges on the grounds that the officers were denied their due process rights. The state appealed, hoping the court would rule that police officers are not entitled to due process before liability for a speed camera ticket is transferred.

Under county policy, speed camera tickets are re-issued to the policemen, paramedics and firemen who were behind the wheel of police cars, ambulances and fire trucks if the emergency lights on the vehicles were not visibly activated in the photograph. The officers complained that their sergeant would ask them weeks or months after an alleged offense to explain why they were speeding. Read More >

By on February 7, 2011

Ford brought two pieces of good news for their dealers at this year’s NADA meeting: The dealers will get more cars. And they will get more cash. But wait, there will be less … Read More >

By on February 7, 2011

Chrysler is proud of the fact that they did NOT release their Super Bowl ad on YouTube like most of the others. “While many sponsors revealed their advertising plans for Sunday’s Super Bowl, the Chrysler brand remained tight lipped to create a stronger impact for the reveal of their new marketing and advertising campaign featuring famous Detroiter, Eminem,” their press release says. Read More >

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