Longtime reader/contributor David Holzman asked yesterday if I could find him a ’64 Chevy wagon while hanging out in San Mateo. We aim to please, so here it is, unfortunately hiding in a garage. Sorry, David; that’s as good as it gets. But for anyone who grew up in the sixties or early seventies, the back end of this then-ubiquitous wagon will undoubtedly trigger memories of riding in one. And hearing that little 283 rev it heart out in first gear up to about seventy, when the two speed Powerglide finally shifted into high under full throttle. In a break from tradition, Chevy went with uncharacteristic rectangular tail lights on the wagons only for 1964. If it weren’t for that Chevy badge, you’d think for all the world this was a low-end Oldsmobile. Enjoy, David; and Happy New Year.
Got schadenfreude? This video represents GM’s pathos-laden attempt at discovering Saab’s relevance, circa 2003. But this is more than just the insincere flogging of a dead brand walking, it’s also more evidence for why GM continually struggles with perception gap. Videos like this, touting turnarounds and viability, have been undermining GM’s credibility for decades. At this point perception gap isn’t even the right term: try “credibility deficit” instead. Meanwhile, die-hard Saab fans are planning on converging on the RenCen in hopes of swaying the masters of Saab’s fate to be merciful to their beloved brand. Don’t hold your breath though: as this video proves, GM has years of cynicism under its belt when it comes to its Swedish division.
Mr. Mehta, my 1999 Subaru Legacy 2.5 GT often loses power in the first hundred yards of driving. It has never failed to start, and it has never stalled during the period of power loss. It does not matter if the car is started cold, or if it’s been running for an hour on the highway and restarted after a 3 minute stop for gas. When it loses power, it doesn’t lose ALL power—it feels like it has about as much power as it would idling in gear. Flooring the accelerator does nothing…until it does, at which point it wants to break ya neck. This happens about 80% of the time. If I catch it starting to get fussy, I disengage the clutch and wait three seconds. The problem time passes while I coast, and I can be on my way without any more trouble. The other 20% of the time is trouble-free like a normal car. After the first hundred yards it runs great, sounds great, and gets great gas mileage.
The underlying cause of GMAC’s failure was no different than so many other American financial institutions: giant bets on risky mortgages at the height of a real estate bubble. And though that error alone would have qualified GMAC for a bailout rescue along with the other failed banks, The WSJ reports that the ongoing support for GMAC is “reflects the troubled company’s importance to the revival of the auto industry.” And man, it had better be important. The GMAC bailout has been one of our least-favorite of the season, rewarding poor practices in auto and mortgage lending, and exposing taxpayers to inordinate risk. But, as TTAC warned back in the pre-bailout days, once the camel gets a nose into the tent, good luck getting it out. And so, GMAC will be receiving another $3.8b in TARP support, on top of the $12.5b it has already received. As a result, the US taxpayer’s stake in GMAC is expected to rise above the current 35 percent stake, just in time for more write-downs planned for the next week. The cash injection is said to prime GMAC for a profitable Q1 2010, erasing some giant losses in the bank’s ResCap mortgage unit. And of course the move will help GMAC continue to underwrite the leases that Chrysler and GM so desperately need, but can’t afford due to plummeting resales. GMAC’s bailout often doesn’t get marked up in the auto industry bailout tally, but at over $16b so far, it’s one of the crucial pieces keeping the zombie automakers shambling along. Now, about repayment…
Mazda have been working on the RX-8’s successor for sometime, and naturally most thought that it would be called the RX-9. As in one step up from the RX-8. Apparently, that’s not the case. Nitrobahn.com reports that RX-7 name is to be resurrected. Nitrobahn hypothesised that the reason for this is to “evoke memories of the rear-wheel drive Mazda produced in between 1978 & 2002”. The new RX-7 will be a 2 seater and due in 2011. Like the current RX-8, the RX-7 will be a rotary engine, which means it can be adapted to run on Hydrogen in the future. InsideLine report that the new engine will be 1.6 litres in a 2 x 880cc configuration. The extra displacement means that the engine should be capable of up to 350 BHP. However, sources close to Mazda say they are adopting a simpler approach to the engineering of the car, by keeping the power of the engine between 200 to 250 BHP to try and keep the price below $25K. With the RWD Toyobaru, Hyundai Genesis Coupe, Kia “Kee,” and Nissan “Silvia” on the horizon, the future market for sporty coupes just keeps getting more and more interesting.
Amid the cries of shock around the blogosphere at the sudden death of the Kia Borrego, another tidbit of more consequential Kia news remains undercovered. And it’s actually bigger Ford news than anything else. Ford had deal with Microsoft for exclusive access to the technology underlying its Sync system. But with Ford’s 18 month term of exclusivity expired, Kia is set to formally announce its Sync-alike at next Tuesday’s International Consumer Electronics Show. Shooting for the middle ground between Ford’s apt “Sync” brand name and Fiat’s asinine “Blue&Me” moniker, Kia has called the system “Uvo” (Short for “Your Voice,” believe it or not).
As TTAC’s Overseas Editor, allow me to be first to wish you a Happy New Year, or a akemashite omedetou, as they say in the Japanese time zone. May 2010 be better than 2009 (as predicted by Scotia Economics.) It’s the year of the tiger. Put it in your tank. As long as PETA ain’t watching …
While Tengzhong is still waiting for government approval for its Hummer purchase, Geely can’t complain about a lack of official prop up for its planned purchase of Volvo from Ford. Geely said today to Reuters that they have strong support from the Chinese government, financial and otherwise. Read More >
If you are stuck in Beijing traffic, while police closes the center lane to give preferential treatment to a government motorcade, you will notice a penchant for foreign brands amongst Chinese government officials: White license plates (= government) are usually found on bigger bore Audis, BMWs, and Mercedeses (or “Benz” as they are called in China.) After all, they are made in China in joint ventures, and only petty people will point out that an Audi A8, a Volkswagen Touareg, or a Benz S Class are imports.
The tastes are about to change, albeit not too drastically. Read More >
As is all-too obvious, I have a particular soft spot for older Japanese cars, especially the more obscure varieties. So when I walked into this Cordia, I just had to stop, shoot and write. I haven’t seen one since moving to Oregon, but there might well be some logical rationale behind that: the Cordia was almost surely was never sold there. Good luck finding any Cordia, or its Tredia sedan sibling, but if anywhere at all, its going to be here in California. Read More >
The “S” word became one of the more popular words in online discourse this year, typically derailing discussions way off topic and resulting in the kind of partisan screeching that drives everyone bonkers. More often than not, these fruitless debates settle around a single major point of contention: the definition of Socialism. Well, thanks to a 48-picture gallery of auto ownership in the former East Germany at Autobild, we now have a distinctly automotive definition of Socialism. Autobild’s thesis is that automobiles helped destroy Socialism, and certainly being forced to choose between a Trabant, a Moskvitch and a Lada would be enough to turn Che Guevara into Milton Friedman. But the gallery also includes images of the Neo-Trabant, an EV concept that plays on Germany’s strange quasi-nostalgia for the bad old days. Or at least the bad old cars of the bad old days. Which indicates that the most typical response to all forms of politics is ambivalence.
Why should I want to be Toyota? They’re losing billions.
Today’s Quote Of The Day comes from the executive of a certain up-and-coming automaker with dreams of becoming a global player. Think you know who it is? Here’s a hint: it’s not Ed Whitacre.
The Washington Examiner reports that, having previously moved its lobbying efforts to an exclusively in-house arrangement, GM is now hiring outside lobbyists again [UPDATE: GM’s chief in-house lobbyist just retired]. GM has rehired its old lobbying firms the Duberstein Group and Greenberg Traurig, and has added GrayLoeffler to its K-Street roster. GM is also keeping the “well connected” Washington Tax Group on its lobbying payroll, having picked up the firm’s representation in 2007. From these firms, some 18 lobbyists have registered as GM representatives, including a list of what the Wasington Examiner calls “well-connected revolving-door players from both parties.”
Former Reps. William Gray III, D-Pa., and Jim Bacchus, R-Fla., are both on GM retainer, as are fabled Republican and Democratic operatives Ken Duberstein (White House chief of staff under Ronald Reagan) and Michael Berman (counsel to Vice President Walter Mondale and campaign aide to every Democratic presidential nominee since LBJ).
Heading GM’s lobbying push for expanded R&D tax credits is the Washington Tax Group’s Gregory Nickerson, formerly the top lawyer at the tax-writing House Ways and Means Committee and the staff director of the Subcommittee on Select Revenue Measures. Nickerson’s partner is Mary Ellen McCarthy, formerly the top lawyer at the Senate’s tax-writing Finance Committee.
“They don’t write songs about Volvos,” proclaimed an infamous Chevy billboard once seen in the Detroit area. Of course it wasn’t strictly true, but then Chevy’s two most recent forays into musical marketing, Volt Jingles versions 1and 2, weren’t exactly “Little Red Corvette” either. And the trend seems to be holding: quality car-inspired music is slipping away. Even this song, the first Saab-inspired tune I’m aware of, is a wholly forgettable drone about fighting Saab’s inevitable closure. It’s not as bombastically awful as, say, the infamous Mercedes “One Goal” tune, but you know automotive culture is in trouble when the only music it inspires is about the closure of a niche Swedish nameplate. Unless the lyrics “we’re gonna make it, not gonna break it” has some kind of mysterious resonance for the daily Saab driver that I’m not getting. Either way, the world of car-inspired music needs some work.
Nissan Motor Co. failed to declare some $700m in income with the Japanese tax-san during a three-year period through March 2007, the Nikkei [sub] reports today.
The Tokyo Regional Taxation Bureau has sent Nissan an order to pay back taxes, including unspecified billions of Yen in penalties. Nissan has appealed. Read More >
Recent Comments