The outsourcing v.v. insourcing debate has been waged for decades in the auto industry. GM just realized there is one. “The balance of power has shifted. The profits are made by the people who have the technological know-how, and that’s the suppliers,” quoth GM Europe VP Carl-Peter Forster last night, while Focus was taking notes.
Forster is expected to take over the CEO job of Opel, owned by the Magna/Sberbank/GM cabal. Is he just pandering to the new guys in charge? Oh no. Just the opposite . . . Read More >
Some of you were around earlier today when TTAC went dark. Our main man Marshall was bringing the site up to code after a disastrous pre-VerticalScope encounter with Estonian programmers alienated us from WordPress compatibility (go figure). Well, we came back from the other side of the moon relatively intact. But there’s a bannage bug that’s sent out an error message to the multitudes saying you’re banned. Well, you’re not. Well, some of you are, and those of you who are know who you are. The rest of your aren’t and I apologize for impugning your good name. We’re sorting this out STAT. Meanwhile, the plugin is deactivated. If you WP pros see any suspicious code lurking about—when and how the bug manifested itself—I’d be most appreciative if you dropped Jeff a line. The good news: the upgrade clears the way for our redesign, one that you will enjoy. RF
Just be prepared to pay for them. Audi USA honcho Johan De Nysschen explains to Automotive News [sub] that “there certainly is a price premium [for diesel offerings], which we are partially recovering but not totally.” Audi CEO Rupert Stadler adds, “I think the problem is that we don’t really have an honest discussion.” So here it is, America: Audi’s going out on a limb so that you can enjoy some of the finest oil-burners Europe has to offer. Now it’s up to us to buy tons of them at exorbitant prices so that Audi doesn’t look stupid for taking the risk. That’s just how these things work, America. Now go grab those checkbooks and start learning about the difference between low-sulfur diesel and ultra-low-sulfur diesel. And don’t forget to refill that urea tank!
Better Place founder Shai Agassi brags that his firm’s purchase of 100,000 Electric Renault Meganes is the first such mega-buy since the Ford Model T. Better Place’s cell phone-inspired battery leasing infrastructure hits Israel and Denmark next year, and Agassi insists that “real customers will be driving real cars” by the 2011 Frankfurt Auto Show.
We were surprised by how little had been done in the past 24 months. It will be a slow progress in the beginning but we will see significant improvement in 2010…. If the numbers end up being as we see today, there is a good chance we will have to put additional stress on the manufacturing system. But it’s too early to tell.
-Fiat CEO Sergio Marchionne in Automotive News [sub, available sub free at CNN]. Is Marchionne just blaming the most convenient possible scapegoat, or did he really take Chrysler on a taxpayer-funded platter because he actually thought Cerberus was doing a bang-up job?
The NYT covers some of the advancements in the steel that goes into cars. One surprise? “North America doesn’t have to take a back seat to anyone,” when it comes to steel content, according to an analyst who specializes in automotive steel. Apparently the steel industry has been feeling the heat from aluminum, composites and other materials, and they’re fighting back with super-strong high-tech alloys that can still be stamped or molded. Still, the pull between high-quality components and cost-cutting never ends. And as thestreet reports, a looming trade war with China could soon make the steel game even crazier.
We had a brief word with the IIHS’s Russ Raider, who was quite cagey on the origins and condition of the 1959 Bel Air that was destroyed for the Institute’s 50th birthday. What we were able to get out of him was that the ’59 Bel Air was in “good” condition, with only a little engine rust, leaky hood/trunk seals and non-original upholstery in the negative column. We also learned that the car was procured in Indiana, and with this information we went looking for Bel Airs on the internet. And you’ll never guess what we found . . .
The WSJ reports that EV manufacturer Aptera is asking the government for $75M from its energy-efficient retooling funds. Unfortunately for the makers of the Jetsons-inspired 2e, there’s some debate about whether its three-wheel design makes it a car or a motorcycle. Which means the gravy train could be delayed at the station. The Department of Energy has already rejected Aptera’s request for this reason, but Congress is wading into the issue at the EV maker’s request.
One thing’s for sure: they don’t BUY them. Exhibit A3. Sales of Audi’s premium compact are cold, cold, cold. In August, the German car company moved just 479 copies, bringing its eight-month year-to-date total to a paltry 2,295 units. Exhibit BMW. The 1-Series is a flop; just 914 examples moved off dealer lots in August, bringing their YTD total to 7,443.On the hand, MINI. In August, BMW’s British brand flogged 5,111 Coopers stateside, bringing their eight-month YTD total to 30,868 moved MINIs. Questions for the class: is that as good as it gets? Is the so-called small premium market saturated? And if you’re a dead car company walking trying to resurrect a dead brand walking, is it worth developing a new car for this niche market? GM’s film would have you believe that the “small premium” market is ascendant. If gas prices go through the roof . . . nah. As Ford said in one of its UK ads, “space is the ultimate luxury.” You don’t think Europeans buy small premium cars because they want to, do you?
Attending the IAA in Frankfurt are all (most of) the involved parties in the Saab/GM/Koenigsegg/BAIC-and whoever deal. For fans without a scorecard, that’s Saab Automobiles’ CEO Jan Åke Jonsson, Christian von Koenigsegg and Bård Eker of Koenigsegg Group, CEO of GM Europe Carl-Peter Forster and BAIC’s CEO, Mr. Wang Dazong. While the details behind the S/G/K/B/W deal are still being held under wraps, there are some interesting views and thoughts drifting through the autoblogosphere. Mr. Wang tells ttelia.se that Saab will be part of BAIC’s global vision, which is part of BAIC’s 10-year plan. Wang assures that BAIC has no other intentions than being a minority owner, and describes the Saab/BAIC deal to be a win-win, yin-yang thang. After all, we learn, Wang learned to drive in a Saab. Meanwhile, the Wall Street Journal reveals Wang’s plans to base the Saab deal on the “strategic alliance” between Renault and Nissan. And now the real news . . .
Bloomberg reports that Toyota spent the last three years secretly testing lithium-ion batteries for its hybrid Prius, then rejected them as unsuitable. And they still don’t want to talk about it. “Toyota last month ended road tests of 126 Priuses in the U.S., Japan and Europe that began in 2006, Jana Hartline, a company spokeswoman said in an interview [with someone somewhere at some point]. Details of the program, in which the cars’ nickel metal hydride batteries were replaced with more expensive lithium models, weren’t released.” [Point of information: that’s Priora.] Bloomberg fails to make the obvious contrast with GM’s public trials (sans gas engine) and tribulations (say hello to my little bankruptcy) vis à vis its electric/gas plug-in hybrid Hail Mary, the . . . wait for it . . . wait for it . . . Volt. But they do kinda hint at it . . .
This is a sick way for the Insurance Institute for Highway Safety (IIHS) to “celebrate” its 50th anniversary, but we do love us some crash test video. Apparently, “the driver of the 1959 Chevrolet Bel Air would have been killed instantly while the 2009 Chevrolet Malibu’s driver would walk away with a minor knee injury.” As someone who suffers with that affliction (head fake Bob), I’d ask the IIHS to define “minor” and will henceforth avoid speeding to my local car show in a 1959 Bel Air. Meanwhile, note to the IIHS: in fifty years you couldn’t have added sound? Gary Numan’s Cars, anyway. [Thanks to DC Car Examiner for the link.]
So, you thought your $14,312,130,642 “investment” in New Chrysler bought you some accountability, seeing as it’s your tax money? Here’s your Frankfurt wake-up call from Uncle Sam’s appointed/anointed ChryCo CEO, via the Associated Press:
Marchionne said Wednesday that Chrysler’s new business plan won’t be released until November, and declined to discuss the forthcoming model lineup.
Recent Comments