It’s been over ten days since GM’s Bob Lutz took to the local papers to complain that GM’s executives are “way, way, way underpaid,” and its still been less than a week since Ed Whitacre’s $9m compensation package was announced but politicians are only now starting to sit up and take notice. Barney Frank (D-MA) can usually be counted on to give greedy CEOs a good dressing-down, but at this point, Mama Frank seems to have given up on the government-owned automaker’s execs. The Detroit News reports Frank’s mild disappointment thusly:
“I don’t think Mr. Whitacre was going to go do something else” if he got paid less, Frank told reporters this afternoon after a hearing. “He’s having a good time there. I think they way overcompensate themselves.”
No politician worthy of your vote will pass up on the chance of publicly bashing the heads of foreign corporate types with deep pockets. And so, the Senate will convene its Committee on Commerce, Science and Transportation next Tuesday. They will repeat this week’s grilling until perfectly good Kobe steak is well done and reduced to dog food.
Tuesday’s cast will consist of familiar faces: Ray LaHood will again “go into the weeds” and hold Toyota’s “feet to the fire” until all cars – well, at least those of Toyota, will be “100 percent safe.”
Smooth Yoshimi Inaba, Prez. of Toyota Motor North America will bring his baritone to bear. The congress casting crew was obviously dissatisfied with Akio Toyoda playing the role of the duplicitous villain. He will not be called and can (phew…) go home to Toyota City. Read More >
The Toyota witch hunt inquiry is beginning to show its surely unintended effects – on American jobs, businesses, and lest we forget, tax revenue.
Toyota has notified its major parts suppliers that its North American production for the February-April period is expected to reach roughly 350,000 units, around 20 percent lower than the number originally planned for in January, The Nikkei [sub] reports this morning in Tokyo. Read More >
In today’s 1962 Corvette CC, I made reference to the racing successes the Corvette had, beginning in 1957. I have vivid memories of reading about Dr. Dick Thompson and his successes with his ’57 fuelie that had more than a hint of factory behind-the-scenes support (this was during GM’s racing ban years). A number of special options turned the Corvette into a credible competitor, such as the sintered metallic brake linings and heavy duty springs and shocks. A quick pit stop at one of my favorite “refueling stations” blog.hemmings turns up this exquisitely restored vintage racer, fully documented from that era. Read More >
One of the most important lessons to come out of the last two days of congressional hearings on the Toyota recalls is that blaming individuals for unintended acceleration is too tough a task for our elected representatives. And yet the more we learn, the more necessary it seems to take human error into account when dealing with unintended acceleration. Nothing illustrates this quite like the case of the very first witness to give testimony before congress. Rhonda Smith of Sevierville, Tn told the House Energy Committee, under oath, that her Lexus ES350 became “possessed” and that its brakes and transmission failed to respond at precisely the moment that the car accelerated out of control. “Shame on you, Toyota, for being so greedy,” she said, wiping tears from her eyes. But it turns out that the shame belongs almost entirely with Ms Smith.
The Wall Street Journal [sub] [via Jalopnik] reports that, despite her traumatic and inexplicable experience, Ms Smith sold her dangerous, out-of-control ES350 to another family, which has since put 27,000 trouble-free miles on the vehicle (according to just-auto [sub], Toyota has since taken possession of the vehicle). Which means she either lied under oath, or displayed a disregard for the safety of others that puts Toyota’s missteps into stunning context. Or both. In any case, her behavior adds to our growing suspicion that the vacuous, disingenuous, and self-serving congressional hearings have been the best thing to happen to Toyota PR since the recalls began. Shame on you, Rhonda Smith, shame on you.
Does the headline suggest that Tesla Roadster production has caught up with demand? And that Tesla is joining the ranks of other automobile makers, in offering leases? Looks that way. Read More >
Li-ion battery start ups have been the dot.coms of the last few years. And like that not-so little bubble, a report now warns of a brewing global overcapacity, and coming shakeout. Some sixty li-ion battery makers are in various stages of development and production, fueled by projected EV demand. GreenCarCongress reports:
a new report from Roland Berger Strategy Consultants, planned investments in lithium-ion manufacturing will result in significant overcapacity between 2014 and 2017 relative to the demand generated by that growth, especially in the US and in Japan.
As a consequence, Roland Berger forecasts, only six to eight global battery manufacturers will survive the next five to seven years. These are the findings of a new market survey conducted by Roland Berger Strategy Consultants titled “Powertrain 2020: Li-ion batteries – The next bubble ahead?” Read More >
A “person familiar with the situation” tells the Wall Street Journal [sub] that GM is looking into two new offers for the HUMMER brand after a deal that would have sold the brand to China’s Sichuan Tengzhong collapsed. No word on who these two firms are, where they are located, or what they’re smoking to make them interested in the dinosaur brand. The rest of the WSJ piece bemoans the opacity of the Chinese Government’s deal approval system, and details how approval hurdles have scuttled deals in other industries, much to the frustration of American firms. Of course, if GM had listened to TTAC’s Bertel Schmitt, they’d know that:
All joint ventures need to get government approval. However, the Chinese government wants its car industry with more than 100 players to consolidate to a more manageable number. Beijing wants to see four big ones and four smaller ones. What Beijing definitely doesn’t want is more car manufacturers. So instead of saying outright “no,” Beijing is letting the deal get entangled in red tape.
In its fight against American CAFE rules, Porsche is ratcheting up the decibels. For background on Porsche’s beef, see here, and here. For a possible way out, see here.
Unconvinced by electrification plans, Porsche’s new boss Michael Macht publicly joined the fray. He doesn’t mince words. “What’s happening here borders on a trade war,” said Macht yesterday evening, while Das Autohaus took notes. “We’ll keep at it. The German auto industry will not give up territory over there unnecessarily.” Financial Times cited Macht as saying that “the Americans are spoiling for a fight.” Read More >
Take One: The Ruf 911 Greenster EV. From AB Green’s report:
Last fall, Porsche high performance tuning specialist Ruf announced that it had built a prototype electric sports car called the eRuf which was essentially a lithium ion battery-powered 911. That was just the beginning of the story as the company has brought the Greenster here to Geneva. The Greenster is a targa top 911 in the old style with a chopped speedster type windshield. In the back sits a 270 kW Siemens electric motor with 695 lb-ft of torque. The battery pack system has been improved and is now 30 percent smaller in volume, restoring the front trunk space that was lost on the original. The battery pack now has greater power capacity allowing it to release and absorb power faster, enabling more regenerative braking capacity. The battery can apparently be charged in only one hour from a 400V outlet. The next iteration will switch to a twin motor setup and the company is planning a small series production run in 2010.
Porsche 911 have been a favorite target for EV conversions fir decades. Ruf’s version is almost series ready. It will probably have an EPA mpge rating similar to the Tesla’s 256 mpge. How many would Porsche have to sell to increase its fleet average to the amount necessary? Read More >
News that the FBI had raided three Japanese supplier companies in the Detroit area came in the middle of yesterday’s epic Toyota hearings, adding to the day’s chaos and misinformation. The FBI said clearly at the time that Denso, Tokai Riko and Yazaki were raided as part of an antitrust investigation, which we now know [via Reuters] involves alleged cartel activities in the wiring harness supply market, and involves European firms like France’s Leoni as well. Despite the fact that Denso and Yazaki are cooperating with investigators, and that the US raids appear to be in support of an EU investigation, Rep Mark Souder (R-IN) took the opportunity to connect the Denso raid with the Toyota recall hearings in shameless style. And all to help clear the name of the US-based supplier CTS, which has been blamed for the sticky pedal recall, which just so happens to be in Rep. Souder’s district. Full, mind-blowing quote after the jump.
Honda looks 50 years into the future, and comes away with the 3R-C Concept, an EV commuter that has a surprising amount in common with the Neighborhood Electric Vehicles of that became hugely popular during the high gas prices of the Summer of 2008. The 3R-C will debut at the Geneva Auto Salon.
It’s not likely that former Toyota exec Jim Press wishes he had been called down to congress instead of Jim Lentz, but he may just be trying to angle for a return his old company. Press took time out of his busy schedule of job-hunting and worrying about taxes to write an (apparently unsolicited) email to Automotive News [sub]. Judging by the portions that AN [sub] did publish, it should probably have gone straight to Toyota’s CEO… or the shredder.
Toyota doesn’t want me to speak out, but I can’t stand it anymore and somebody has to tell it like it is. Akio Toyoda is not only up for the job, but he is the only person who can save Toyota. He is very capable, and he embodies the virtues and character that built this great company. The root cause of their problems is that the company was hijacked, some years ago, by anti-family, financially oriented pirates. They didn’t have the character necessary to maintain a customer first focus. Akio does.
The unions have reasons for heightened annoyance. Insideline reports that Avtotor may buy the closed down Izhavto plant (Izhavto filed for bankruptcy in August 2009) in Izhevsk, Udmurt Republic, to build Hyundai and Kia vehicles. Avtotor is one of Russia’s largest assemblers of cars that come as kits. And why would that be of concern to Korea’s metal workers? Read More >
Japanese reaction to the kabuki dance is muted. From the Asahi Shimbun to the Mainichi Shimbun, all papers refrain from any criticism of either side. Except for the occasional “Japan-bashing” comments by readers, officially everybody is carefully sidestepping that trap. Just as Toyoda did during yesterday’s grilling on the hill, when he said that Toyota is being treated fairly in the U.S., contrary to what his wrenching gut said.
Japan’s transport minister Seiji Maehara was likewise diplomatic. He said Thursday he is satisfied with the testimony, reports the The Nikkei [sub]: “As a Japanese and U.S. company, I hope Toyota will ensure accountability and will make efforts to regain the trust of customers.” Read More >
Recent Comments