We were not amused (to coin a phrase) at Ford’s decision to tax fans of the hatchback by adding $500 to the price of its five-door Fiesta and forthcoming Focus. And rather than following Ford’s example, GM has priced its CTS-V Sportwagon some $475 cheaper than its $63,465 CTS-V sedan, by starting prices for the unique muscle wagon at $62,990 (including destination). Needless to say, we love the wüchtig, 556 HP CTS-V, so the prospect of a distinctively be-hatched version for less money is like catnip here at TTAC HQ. On the other hand, our beef with Ford has to do with its refusal to offer the practicality of a hatch at the base price point, and that argument doesn’t really hold water in the tire-smoking world of supercharged V8 rocketships. Moreover, $475 doesn’t exactly make much of a difference when you’re talking about a car that costs the equivalent of four base Fiestas. Still, we like to think of this as a win for the wagons… if only in principle.
Speaking of India, it’s about time that GM gets its act together on the subcontinent. If you aren’t somebody in India you are missing the boat. If the augurs augur right, the subcontinent will be the fastest-growing car market in the world. Read More >
What do you do when a company you own (through your trusty Treasury Department) won’t help you out over the phone? Out of luck with his dealer and pissed off at the “condescending” attitude of GM’s phone support staff, one former Marine and “lifelong GM customer” drove from Virginia to Detroit in order to get The General to take responsibility for chronic power steering pump failures in his wife’s Chevy HHR. His initial reward: more condescension, and the privilege of getting escorted from the premises of GM’s Headquarters. But Marines don’t quit that easily…
For all intents, the 2011 Dodge Charger debuted to the internet two weeks ago… as a police car. Possibly recalling that some civilians might wish to purchase the thing, Chrysler has finally released images of it in R/T guise… but where’s the surprise? The overall design is more delicate and graceful than that of its atavistic predecessor, but it also seems to lack the classical menace of the outgoing model. At least when shown without police livery.
Popular wisdom was that foreign companies have to tread carefully in China, lest they’ll be robbed blind of their vaunted intellectual property and thrown by the wayside. Now it has come to the total opposite: GM has made a mess out of India. And they turn to their old Chinese buddies at SAIC to help them out. Not just financially. Technologically. “GM hopes to take advantage of Shanghai Automotive Industry’s expertise in making small, low-cost cars to raise its share” in India, reports The Nikkei [sub]. Read More >
Whenever somebody asked me what I did for a living during the summer of 1994, I would tell them “I sell Infinitis”. That was a lie. My actual job was to lease the Infiniti J30 at $399/month to second-tier suburban wanna-bes and a wide variety of credit criminals. That was what paid for our owner’s impressive coke habit, and that was what earned me as much as three thousand dollars per month.
In the interest of strict factual accuracy, I should point out that we did, nominally, sell two other models. The 1994 Q45 was an overpriced brick with a Park Avenue-style facelift. Over the course of six months, we sold two of them, one to a former salesman who was simply in the habit of driving that particular car as a demo, and one to somebody who owned a 1990 example and was only vaguely horrified at the “updates” performed that year. Looking back, I think he used to snort coke with the dealership’s owner. It would explain a lot.
The police chief in Oak Ridge, Tennessee received an all-expense paid vacation in Arizona, while collecting his on-duty salary, in return for his providing testimony that helped save Redflex Traffic Systems from paying millions in possible damages. The Australian firm came under fire after it was caught falsely claiming on customs forms that the radar units it had imported were certified by the Federal Communications Commission (FCC). From 1998 to 2008, every time Redflex turned on a mobile photo radar unit, it violated federal law. When a rival firm, American Traffic Solutions (ATS), discovered this fact, it blew the whistle in a federal court case, the first round of which wrapped up in the spring.
Another day, another story on the ever-growing conflict between the UAW’s ownership stake in GM and responsibility to its members. Pre-bankruptcy, GM didn’t have to deal with the fact that the UAW is incapable of building fuel-efficient subcompact cars profitably. As a result, the outgoing Aveo was built and designed in Korea as the Daewoo Kalos, before being fitted with a bowtie and shipped to the US. But now that the General has promised to build the next-gen Aveo in Michigan’s Orion Township plant in exchange for nearly $800m in local tax credits (not to mention the political benefits of “saving or creating” hundreds of union jobs), it’s up to the UAW to square the circle and make the damn thing profitable. Which, according to Automotive News [sub] is just what they’ve done… by bumping 40 percent of the plant’s previous workers to the new “tier two” wages. Which is a nice way of saying “cutting their wages in half.” How is that possible?
The UAW’s 2009 amended contract with GM just before bankruptcy called for “innovative labor agreement provisions” that would allow GM to make a small car profitably in the United States.
Under those “innovative provisions” (which just happened to be conjured up when the government task force was elbow-deep in GM), Orion workers can neither appeal the decision nor go on strike over it. Either the UAW wants to be a union capable of building small cars profitably, or it doesn’t. Screwing less-senior “brothers” so politicians and union bosses can crow over the “green jobs” at Orion is cowardly and despicable.
It’s not that the ad itself fails to mention the car it’s actually promoting, namely the Subaru Legacy. After all, if Subaru wants to entertain enthusiasts without actually indulging in the kind of gauzy praise they lampoon so effectively here, that’s fine by us. No, the only problem with the whole “2011 Mediocrity” campaign is that Subaru’s own Tribeca was clearly styled by the very designers they mock in this spot. And in this day and age, bland, uninspired crossovers are at least as lampoonable a cliche as the bland, uninspired sedans that Subaru slams (and which earned Toyota the cash for a 16.5% stake in Subaru’s parent company). Still, this is a ballsy move for a brand that is already growing like gangbusters in the US, and it shows just how far off the mark Volkswagen’s current attempt at US market growth is likely to be.
My time at TTAC has been full of surprises. Some days it seems that every hour holds a new, more gob-smacking shocker. But the surprise I received today, when I learned that I had been invited to the Volt’s press launch later this month, was one of the least expected and most gratifying to date. After all, not only has TTAC been a longtime critic of GM as a whole, but the Volt has been a special target for us since its conception, even earning its own category in our news blog. I’ve even criticized the Volt project (as opposed to the car itself) in the print media, drawing the ire (of sorts) of the White House press secretary. In the old GM, the very idea of rewarding our relentless criticism, questioning and second-guessing with access to the car itself would have been unthinkable. But today one GM rep explained to me that
The Volt’s been attacked at one point in time by just about everyone. Opinions of the vehicle have been all over the map, but fortunately we now have vehicles for people to drive and experience themselves rather than having to defend it with words and Powerpoint
That GM believes strongly enough in its most high-profile car to allow its most strident critic to drive it marks a material break from past practice (documentation of which abounds in TTAC’s archives, but here’s an especially infamous example). Allowing products (especially a controversial, high-profile car like the Volt) to speak for themselves before their harshest critics speaks to a much-improved culture taking hold at The General. This doesn’t mean the problems are over for the RenCen, but it shows that GM’s new managers are building for the future on a solid foundation of accountability. And that is a big enough deal to warrant a tip o’ the hat.
When GM was taken over by the US and Canadian governments, a lot of money was pumped into GM in order to make it a viable entity. After all, GM didn’t go into bankruptcy because it was a well run company with a tight balance sheet, excellent management and brand, spanking new factories. The more money that got pumped into GM, the more pressure is put on the IPO to generate enough money for this endeavor to break even. And according to the press, it doesn’t look like it’s going to hit its mark. Read More >
With the aftereffects of the Abwrackprämie, that German cash for clunkers on steroids, slowly abating, Germany is slowly coming back to normal. In September, car sales were 17.8 percent below September 2009 (red line), but only 0.6 percent below September 2008 (blue line). For the first nine months, sales are 27.5 percent below prior year, but only 8.6 percent below the same period in 2008. Read More >
Since we both live in Houston, and I have aspirations of writing more material for TTAC in my copious lack of free time, it only made sense that Sajeev Mehta and I should eventually get together and hang out, so that’s exactly what we did at Ford’s come-kick-our-tires event for the new F150 trucks, including their new EcoBoost (turbocharged) V6 truck engine. Since I’m the epitome of not-a-truck-guy, I thought I’d toss in some random thoughts from somebody coming to this experience completely unprepared for what I was getting myself into.
About a year ago, a mutual friend introduced me to Uwe Gemballa. He looked a bit like a pimp from central casting: bleached blond hair, a flashy watch, gold chain. He tuned Porsches. He wanted to import Gemballas to China, and could I help him? Like many China deals, that deal never got off the ground. And as I read the news today, I think to myself: I’m glad it fizzled. Dodged that bullet. Literally. Read More >
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