Honda has always been proud of the word “Motor” in its name. It’s the world’s largest producer of internal combustion engines (all those lawnmowers), and has a long history of engine technology leadership. From the CVCC to VTEC and the recent i-VTEC, Honda was a consistent leader, especially in high-efficiency and high-output four cylinder engines. No more. The Gasoline Direct Injection (GDI) revolution is on in full force, and most major manufacturers have released or announced state-of-the-art DI engine programs. And none more convincingly than Hyundai, with its new 200 hp 2.4 liter Theta II GDI. Where’s Honda’s? While we’re waiting, let’s take a closer look at Hyundai’s: Read More >
Traffic camera companies operating in Arizona may be committing a crime by operating without a private investigator’s license, a newly released memorandum to the state legislature explained. The non-partisan Arizona Legislative Council, the legislature’s official source for drafting and reviewing legislation, looked at the licensing question on behalf of state Representative Sam Crump (R-Anthem).
Magna’s abortive attempt at buying Opel burned a few bridges for its supplier business, most notably drawing the ire of Volkswagen. But now that the deal is off, Magna has been forgiven by VW, and it seems even GM is ready to bury the hatchet. Reuters reports that GM has awarded the manufacture of their 3rd generation frames for full-size light-duty pickups and sport utility vehicles to Magna’s division Cosma International. “This is the third generation of frame business that we’ve been awarded by General Motors,” said Tracy Fuerst, a Magna spokeswoman. “To keep that business is certainly a win for us.” Curiously, the value of the contract wasn’t disclosed and no new jobs would be created but it sent the value of Magna’s share up by 1.9%. Life, and business go on… meanwhile, this is the first sign that GM is actively investing in a new generation of body-on-frame vehicles.
A press release [via sys-con.com] confirms that Koenigsegg has withdrawn from negotiations with General Motors over the sale of Saab. Fritz Henderson shares his disappointment:
We’re obviously very disappointed with the decision to pull out of the Saab purchase. Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.
Why did Koenigsegg pull out? A brief statement by Koenisgegg is all we have to go on at the moment. “The time factor has always been critical for our strategy to breathe new life into the company,” the firm tells Reuters. Which leaves… BAIC? Absent any other obvious interest in the Saab brand though, GM now finds itself with two messy restructurings in Europe.
GM is no longer in hock with Germany. They paid back all of the €1.5b bridge loan Opel had received from Berlin to keep it afloat until it was taken over by Magna and Sberbank. As we all know, this didn’t happen. Berlin wanted its money back, and got it.
“I can tell you that the last funds for Opel have been paid back by General Motors,” said German Chancellor Angela Merkel. “I expect at least a thank you letter from General Motors in a few years.” There isn’t much love lost between GM and Berlin these days. Read More >
On October 13th of last year, when TTAC’s Bailout Watch clocked in at a mere 115 entries, GM’s then-CEO Rick Wagoner and board members Erskine Bowles and John Bryan approached the Treasury for a “temporary” bailout. Not that we knew it at the time. “In this period of continued uncertainty in the markets, you really can’t rule out anything,” said GM spokesfolks at the time. “Stand by for another big public investment in a failing firm,” warned TTAC. As subsequent events proved, the rush to bailout had already begun. Funny then, that we’re only now learning some of the most crucial details of the chaotic maneuvering of late 2008, thanks to a Detroit News investigation. Though the industry’s disastrous hearings before congress nearly derailed the deal, the initial strategy of approaching the White House would prove to be the key to the eventual bailout. In fact, President Bush was ready to provide $25b to GM, Chrysler, GMAC and Chry-Fi on December 19, only to have talks with the two finance firms break down. Instead, GM and Chrysler were given $9.4b and $4b respectively, with GMAC getting $7b 10 days later and Chrysler receiving $1.5b in January.
According to the German tabloid Express, Düsseldorf antique car dealer Michael Fröhlich has found Hitler’s car, a blue Mercedes 770K. Fröhlich started searching after a request by a Russian oligarch. He tracked the car to Austria, to where it had been sold for 2000 Reichsmark after the war. From there, the car went to the car museum of the Imperial Palace in Las Vegas. It was sent back to Germany into the collection of a loaded owner of a brewery in Munich. It finally ended up with a collector in Bielefeld. The collector had 5 more of the Nazi cars, one of them formerly Joachim von Ribbentrop’s daily driver. Read More >
Think the US is drowning in cheap Chinese goods? Think again. Production is rapidly going South. According to corporate consultant AlixPartners, Mexico has leapfrogged China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil.
A number of Chinese car manufacturers have tried to use NAFTA’s soft underbelly as an entry into North America. Zhongxing, FAW, Geely, ChangAn and more announced plans to Hecho en México. One by one, they have been shelving the plans. Cheap production is one thing. Lack of customers another. This summer, FAW cancelled plans for a Mexican manufacturing plant. Before, Geely and Zhongxing had said “bu hao” and packed up.
China’s ChangAn was thought to have the most robust stomach for Mexican food. Looks like they also lost their appetite. Read More >
As congress nears the end of the 2009 legislative session, culled GM and Chrysler dealers are pushing hard for the rapid passage of the Automobile Dealer Economic Rights Restoration Act. Meanwhile, nearly two dozen members of the Senate Commerce Committee from both parties are calling on GM and Chrysler to resolve outstanding disputes with culled dealers in hopes of defusing the situation by non-legislative means.
Given the federal government’s ownership stake in Chrysler and GM, it is our shared obligation to ensure all impacted dealers are treated as fairly as possible. We continue to urge you to take all actions necessary to uphold the assurances you provided earlier, as well as to achieve a mutually agreeable and timely outcome to the negotiations between Chrysler, GM and the dealers. Chrysler and GM’s unprecedented bankruptcy has greatly impacted dealers, consumers, employees, small businesses, and communities across the country. It is crucial that outstanding issues be resolved as expeditiously and efficiently as possible to provide the least amount of hardship to Chrysler, GM and the dealers.
GM’s response to the senatorial call out? “Those discussions are still underway,” according to spokespeople, who refused to characterize the discussions for Reuters. Meanwhile, two examples of possible mitigating action by GM and Chrysler are not off to good starts.
The AP reports that GM is suing supplier JTEKT North America Inc. of Plymouth, MI for faulty steering systems used in 2005 model year and later Cobalt, G5 and HHR models. GM’s suit alleges the JTEKT steering systems exhibited “excessive gear backlash,” causing a variety of noises that the General has spent $30m fixing under warranty so far. “JTEKT contends the components all met the specifications and testing requirements that GM gave it,” says the supplier’s lawyer. “The issues do not affect the operator’s ability to control the vehicle. This is a noise issue.” GM admits that the issue does not affect safety, but claims total repair costs could continue to rise as more vehicles receive upgrades under warranty. Current Cobalts and derivative models have received upgrades, although the AP does not specify when they took place. Keep an ear out for this problem if you’re considering a used Cobalt.
Last week’s fuel filler door clue for the Blazer was a bust. Everyone piled in on it, right from the start. But I’m going to give the win to CyCarConsulting, because Hank limited the time frame too much by saying it was an early-mid nineties Blazer. OK, this week, we need some different parts to look at, like under the hood. Calling all driveway mechanics; you’ve got the advantage here. Now where’s that can of starting fluid?
Comedian Frankie Boyle once said “So the best tennis player in Britain is Scottish? I’m not up to speed on my Nostradamus but isn’t that one of the harbingers of the apocalypse or something?”. Well, here’s another unlikely scenario, manufacturing jobs flowing INTO the U.K. The BBC report that Dutch luxury car maker, Spyker, is calling it a day in Zeewolde, The Netherlands and moving all manufacturing to Coventry, West Midlands, UK. Spyker warned that 45 out of the 135 jobs would be at risk during the transfer, although, the headquarters would stay in The Netherlands. The main reason behind this shift is that Spyker want to be closer to its main parts supplier, CPP Manufacturing LTD. Victor Muller, Spyker Cars chief executive, said “With approximately half of our vehicles’ parts and components sourced in the UK, and virtually all key suppliers being located there, moving closer to our suppliers and engineering partners will result in substantial savings and tangible efficiency improvements.” While all those reasons are sound, could another big reason for the move be the UK pound nearly reaching parity with the Euro? Who cares? We’re just grateful for the jobs. Dank u.
I have driven a Spark around Michigan and have had some (GM executives) out for Saturday afternoon driving. We’ve cruised Woodward. North America has been an on-and-off thing for (the Spark). At the present time, though, it is very much on. Most of the world’s minicars were not designed for North America. The safety and repairability standards are different for side, rear, front crash and rollovers, as are emission standards and other things. They are difficult to meet if they weren’t planned for in the original engineering build. We can meet the U.S. standards. We can even package the Spark for Big Gulp cupholders
GM’s Jack Keaton [via Wards Auto] on the Chevrolet Spark (neé Daewoo Matiz Creative) and the many modifications needed to ready the 1.0/1.2-liter A-segment hatchback for the US market. Including making the cupholders large enough to hold a soft drink cup that’s nearly double the displacement of the Spark’s engine. The 6′ 4″ Keaton swears the Spark’s front seat is comfortable for him, and that he “didn’t mind” the back seat on a recent 35 mile drive.
Never one to shy away from expensive options, Porsche has announced that beginning in January 2010, a lithium-ion starter battery will be optional in the 911 GT3, GT 3 RS, and Boxster Spyder. Porsche is the first automaker to offer a li-ion SLI (starting, lighting ignition) battery, and given its cost, €1,904 (US$2,900), it may stay that way for a while. The new pack weighs 6 kg (13 lb), which is 10 kg or 22 (lb) lighter than a conventional 60 Ah lead battery. That works out to $132 per pound saved, based on European pricing. US pricing has not yet been announced. That sounds like a bargain compared to some of Porsche’s other pricing shenanigans. Ask the fellas in the paint booth to leave off the masking tape on a certain number of exterior and interior pieces to make them body colored, and they’ll ask you a mighty $13,545 for their (non)effort. Only a company that has the cojones to do that would to try to take over VW. I digress. More battery lightness after the jump: Read More >
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