Category: News Blog

By on August 1, 2010

In TTAC’s recent Chevrolet Cruze review, tced2 made a very interesting point:

Why does “globalization” always mean the work is done everywhere but America? Isn’t America on the “globe”?

Another interesting comment, this one from alexndr333:

So, welcome to 2010, Mr. Baruth, and watch as GM operates like the other big boys, pulling its international talents together to design, engineer and build a small car for us Americans.

I’ll stand by my previous statements here. My definition of an “American car” is one with major engineering input from the United States, assembled in the United States using a majority of United States-sourced parts. Anything else — whether we are talking Fiesta, Corolla, or Cruze — isn’t quite good enough. When I buy Allen-Edmonds shoes or a Hickey-Freeman suit, I expect full US assembly and I expect to be notified of non-US content in the product.

So, my question to the B&B is twofold. First: Are you interested in purchasing an “American car”? If so, what is the working definition you use for that phrase?

By on August 1, 2010

Yes, there were abortive attempts to rename French Fries to Freedom Fries (you want ketchup with your freedom?) There were calls for a boycott of all things French, including French mustard, excluding French’s Mustard (and maybe the Statue of Liberty.) Nevertheless, I think deep down the Americans secretly admire the French. With their lavish welfare system, generous benefits and their willingness to strike if someone so much as asks them to work an hour outside of their contract, who wouldn’t want to be French?

Hell, in the UK we wish we could be like them. If we were we might still have some global companies in our ownership, instead of selling out to the first bidder. But as Peter Schiff (who I’ve mentioned before) said, the party is over, we have to stop paying ourselves these lavish benefits, allow the free market to function and stop being lazy. In the UK, the government is going on a massive austerity program in order to balance the books, Italy pushed through a huge €24b cost cutting plan and even Spain just managed to push through a €15b budget reduction plan by a majority of just one vote. France hasn’t made a cost cutting plan of their own. It’s almost as if the current economic turmoil doesn’t apply to them. French benefits have survived recessions before and they’ll survive this one, right? Well, don’t be so sure. It seems that the French may be coming around to the rest of the world’s thinking, and the message to change their ways is coming from an unlikely source. General Motors. Read More >

By on August 1, 2010

If you want, and if you don’t feel discouraged by Ed’s op-ed piece in the New York Times, you can go to your friendly GM dealer and pre-order the 2011 Volt for an MSRP of  $41,000 (before a $7,500 federal tax credit). A 36-month lease costs $350 a month, with $2,500 down. Bring a cot, we are given the impression that there are long lines at the dealerships. GM’s spokesman David Darovitz told Automotive News [sub], that based on customer reactions, GM expects demand for the Volt to exceed the 10,000 units it will build between its launch and the end of 2011. Read More >

By on August 1, 2010

For more than a year, I had been on my very own propaganda mission in China (and I’m still here in Beijing to tell it.) I had urged Chinese parts manufacturers to go overseas and to buy parts houses at firesale prices. By moving closer to the customer and up the value chain, by turning from contract manufacturer to marketer, the Chinese manufacturers could realize much higher profits. By turning from contract supplier to systems house, they would be about 5 years ahead of the technology curve: A systems house is tied into the development of a car. The Boschs, Magnas, Federal Moguls of this world harbor more secrets than a Tom Clancy novel. A year ago, I wrote in China’s Gasgoo: “While the idea of buying a foreign car brand for cheap is good, the practicable choices are limited. So it’s back to buying foreign parts companies. There will be many bankrupt foreign parts companies this year to choose from, all quite cheap, most with an established presence and manufacture in China.”

Someone seems to listen, finally. But maybe a little late … Read More >

By on August 1, 2010


A few weeks ago, I wrote about how Sergio Marchionne was successful in getting the majority of the unions at his Naples plant to sign a new work agreement. This was supposed to herald in a new era in Italian work practices and pacem in terris. Well, it seems that Fiat wants to press the issue home to the unions. Reuters reports that Fiat is so determined to teach Italian unions at their Pomigliano plant that their working practices are not sustainable, that they are now going to some extreme lengths. Fiat is now going to set up a new company to manage the plant near Naples. Doesn’t sound extreme, right? Well, there’s more. Read More >

By on July 31, 2010

“The only reason we are not making money on the net is that I pay interest on the borrowings I took from the government and I have money in the bank to cover that debt. Actually, against the Treasury we owe them nothing. We have enough cash to pay it all off. But you can’t run a business without cash, so it’s just a function of our capital structure. If we had taken those funds as equity as GM did, we would have been making money, net, right now.”

Read More >

By on July 31, 2010

The WSJ reports that “senior officials at the U.S Department of Transportation have at least temporarily blocked the release of findings by auto-safety regulators that could favor Toyota Motor Corp. in some crashes related to unintended acceleration, according to a recently retired agency official”. Governmental departments suppressing documents? Much like Toyota suppressed their design flaws which landed them a record $16.4m fine? You have my interest… Read More >

By on July 31, 2010

ToMoCo is keeping the suspense up on their long awaited and hotly rumored first quarter profit numbers. Daihatsu has reported stellar numbers. Hino has reported a nice set of financials. Now, “nine major Toyota Motor Corp. group companies all reported group net profits in the April-June quarter thanks to a recovery in the auto industry,” says The Nikkei [sub]. No word yet from the mother ship. EMCON. Strict radio silence. Read More >

By on July 31, 2010

This could be the week that separates the electric hype from the electric truth.  Real EVs get in the hands of real drivers for real reviews. Our Dan Wallach drove the Tesla Roadster. Our very own Ed Niedermeyer wrote his “GM’s electric lemon” review of the Chevy Volt for the New York Times. (He didn’t really drive the thing, but the article really drove some to drink, up the wall, nuts – their choice, it’s a free country.)  And Joseph B. White of the Wall Street Journal laid his hands on a real Mitsubishi i-MiEV, for a real life test drive under the grueling conditions found within the Washington Beltway. Read More >

By on July 30, 2010

How things change: Last year, the death of the automobile was prognosticated. Maybe little cheap econoboxes. Luxury cars? Forget it, dead as dinosaurs. Don’t even mention dinosaurs. This year … just have a look at Audi. Read More >

By on July 30, 2010

As much as we web-based types like to smirk at the slow death of the traditional media, the real truth seems to be that, more often than not, the internet is more of a training ground than a final destination. So it is with former TTAC reviewer Jonny Lieberman. Jonny has worked at a number of automotive blogs, including a stint at TTAC that stretched from February of 2006 to January of 2009. After TTAC, Jonny went on to become the Associate Editor at Autoblog, where he primarily focused on road test reviews. Having worked his way to the biggest car blog out there, Jonny’s ambition has taken him beyond the internet to the world of print journalism, and the halls of Motor Trend where he will become Senior Editor. In his farewell piece at Autoblog, Jonny looks back at his time in the autoblogosphere, and notes

I’ve worked at some sites filled with mega-friendly people that weren’t capable of pouring piss from a boot. Other places were hyper-competent and staffed almost totally with assholes.

Anyone want to bet that the second sentence wasn’t written with TTAC at least partially in mind? And though Jonny was never the most confrontational writer at TTAC, we certainly hope that he will bring at least a tiny bit of TTAC’s take-no-prisoners ethos to Motor Trend. Or at least the raw enthusiasm embodied in such TTAC pieces as his Audi RS4 review. Either way, his hiring helps prove that even the buff books are looking to the internet for fresh blood. The autoblogosphere may not replace the print magazines, but it cant help but have a profound effect on it. Hopefully for the better.

By on July 30, 2010

In April, everybody who walked by the FAW display at the Beijing Auto Show, yours truly included, did a double-take and took a lot of pictures upon seeing their Red Flag CA7600L monstrosity. It was a huge crowd magnet, and everybody walked away, muttering: “They’ll never build THAT.” Boy was everybody wrong. Read More >

By on July 30, 2010

Motorvehicle production in Japan was up 25.9 percent from a year earlier in June, says the Japan Automobile Manufacturers Association via The Nikkei [sub] Domestic sales are a bit more sedate, up 17.4 percent in June. Where did all those cars go? Read More >

By on July 30, 2010

Some people (like about half of the nation) are convinced the Government has a conflict of interest when it comes to Toyota. Many believe there is a witchhunt against Toyota by a government, and by unions that want GM’s major competitor bleed money and market share before the big GM IPO. 25 percent believe the criticism stems from an outright desire to help GM, while 38 percent disagree and 37 percent aren’t sure. Whatever the reason may be, Toyota is beginning to show battle fatigue. Read More >

By on July 30, 2010

Noticed that things have been a little slower around here this week? Yes, well, it’s summer and I’m much harder to motivate in the summer. Also, I’ve been working on this op-ed on the Chevy Volt for the New York Times. My conclusion on the Volt?

In the end, making the bailout work — whatever the cost — is the only good reason for buying a Volt. The car is not just an environmental hair shirt (a charge leveled at the Prius early in its existence), it is an act of political self-denial as well.

If G.M. were honest, it would market the car as a personal donation for, and vote of confidence in, the auto bailout. Unfortunately, that’s not the kind of cross-branding that will make the Volt a runaway success.

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