Back in loony desperation of pre-bailout Cerberus-era Chrysler, plans were floated for Chrysler to build a Ram-based Nissan Titan in exchange for a ChryCo-branded version of the Nissan Versa (and possibly the Altima). Now that Fiat is running things in Auburn Hills though, Chrysler has access to modern compact and mid-sized platforms. And Fiat doesn’t want Chrysler paying Nissan to help it compete in South America, one of Fiat’s most important markets. According to Automotive News [sub], the break “leaves Nissan with a bigger problem than any facing Chrysler.” Namely, the Titan question. Wait, seriously? Nissan recently killed off the Quest and Infiniti QX56 to make more room in its Canton plant for diesel-powered light commercial vehicle production. If/when the economy does start coming back, that market could be a better place to be than the crowded, cutthroat full-size pickup market. Alternatively, Toyota is drowning in Tundra capacity. If Nissan wants to be in the pickup market so badly that it’s willing to beg for a rebadge, that seems like the place to start. Release after the jump.
Is the 15,000 maintenance really necessary? I have an 2008 FJ Cruiser and I am just hitting 15K. I had the car for about 6 months and the dealership charges $298 for the 15,000 maintenance. I have always thought that these were just traps for dealers to charge a ridiculous amount of money for oil changes and inspection. I checked what they provide and it looks like lots of visual inspections and just an oil/filter change and tire rotation. The car still feels new to me, and I don’t I need anything more than an oil change and tire rotation. What are your thoughts?
The Freep reports that final cash for clunker numbers show the program coming in under its $3bn budget. $2.877bn was spent on 690,114 deals, according to government data. The bad news? C4C did a mediocre job stimulating the domestic firms; according to the Detroit News. GM, Ford and Chrysler captured just 38.6 percent of all clunker sales, down considerably from their joint 45 percent market share in July. Toyota captured 19.4 percent, GM snagged 17.6 percent, while Ford only ended up with only 14.4 percent—just ahead of Honda which had 13 percent. Check out the NHTSA’s PDF postmortem press release on the program here. Though the Detroit Three didn’t do so well in the “cash” portion of cash for clunkers, it swept the clunker list. Ford alone had five of the top ten clunker trade-ins, with GM and Chrysler rounding out the list. Hit the jump for top ten buys and trade-ins by model.
Clear-sighted auto industry analysts tell Automotive News [sub] that “Just a few months ago, GM was not in a position to retain Opel.” But now, according to these wise seers, GM doesn’t have to sweat the recovery of its embattled European division. “They were fighting on life support. Now the patient has recovered,” is the verdict. Huzzah! For lo, GM hath looked unto the hills from whence cometh its help, and it figures more just might be on its way. “I think the last year has shown that the government can be very creative when it wants to be in how it structures these deals,” says another analyst, who suggests that “private investors with possible credit support from government sources” could ride to Opels rescue on behalf of GM. After all, if anything, Opel is the bailout that got away. “There really wasn’t a view articulated (on Opel). It was one of several challenges that GM faced,” says an anonymous U.S. official “In its restructuring, there really wasn’t a particular view on a specific path.” And the door is still open for a taxpayer-backed rescue of Opel.
To my mind, this is video is some of the better corporate communication to come out of Detroit in a while. It’s the perfect counterpoint to GM’s perception-gap whining, giving ordinary folks a glimpse inside the manufacturing line while highlighting quality control improvements. Only the choice of hosts is bit confusing; sure, Mike Rowe is the Robin Leach of blue collar America, but why invite the comparisons to, say, sheep castration?
Does this headline seem familiar? We noted a while back that British reliability records showed Chrysler and Fiat sharing space at the bottom of the rankings. Now, Glass’s Guide (via Autocar) has ranked British resale values by model, and Fiat’s Alfa 166 sedan takes dead last place. Not that this is entirely surprising; after all, reliability and resale tend to go hand-in-hand. The troubling part is that abominable resale values are already a major drag on Chrysler’s viability. How on earth is Fiat going to improve this desperate shortcoming for Chrysler, when it can’t beat the resale bug with its own products?
Amidst a lawsuit by Old Chrysler creditors accusing Daimler of stripping Chrysler’s assets comes another suit against the German automaker, this time by New Chrysler. Automotive News [sub] reports that Chrysler actually owes Daimler about $78 million in volume shortfall payments for 2.2-liter diesel engines supplied by Daimler. Because Chrysler is balking on those payments, Daimler stopped delivery of steering columns and torque converters, as a way of pressuring Chrysler to make good on its payments. But Chrysler claims that “the volume shortfall payment issue was resolved in an April 17, 2009, pre-petition agreement that settled a number of disputes between Daimler and the old Chrysler.” As a result, “Chrysler Group believes that Daimler’s misconduct is designed to extort a settlement by wrongfully withholding crucial parts that Daimler has contractually committed to supply to Chrysler Group,” say ChryCo spokesfolks. Grand Cherokee production at Chrysler’s Jefferson North assembly plant in Detroit is threatened by the supply dispute, as is Dodge Charger and Challenger and Chrysler 300/300C production in Brampton, Ontario.
I’ve got to come clean: I use an automatic car wash. I’m WAY too OCD to start cleaning my whip at home. Thanks to a press release from the Splash Car Wash chain, I’ve got a cover story: environmentalism. The company whose name is begging for a spear wants us to know that it’s qualified for the International Carwash Association’s WaterSavers™ program. And you haven’t. Which makes you—and you know who you are—bad, bad people. “The Facts: Using a commercial car wash helps you go green because compared to driveway or parking lot car washing, effluent is routed to treatment facilities as opposed to the curb and storm drains. Once in storm drain systems, toxic wastewater can enter local lakes, streams, rivers and oceans where it becomes a threat to aquatic life. The contaminants found in car wash wastewater are twofold. Firstly, there are the residual chemicals and matter — more severe than run-of-the-mill dirt and dust — that are freed from a car’s exterior when washed. These substances can include oils, greases, rust, trace amounts of benzene and residues from brake pads and exhaust fumes. Secondly, the wastewater can include chemical residues originating from the cleaning agents (soaps, degreasers, sprays, wipes, etc.) used in the car washing process.” And then there’s the water . . .
Pistonheads has spy shots of Camaro drop-tops Holden on to the good times in GM’s Australian outpost. “These soft-top Camaros have been spotted lined up at the Australian Fisherman’s Bend Holden plant, which seems to support the idea that we will see production versions of the V6 and V8-powered muscle cars sooner rather than later.” Note the word “seems.”
The largest provider of red light camera and speed camera services in the US admitted yesterday that public opposition has begun to affect the bottom line. In an announcement to the Australian Securities Exchange (ASX), Melbourne-based Redflex Traffic Systems reported a nine percent drop in net profit for the year ended June 30, 2009. This has come about in part as motorists increasingly refuse to pay automated fines and use public pressure to force cities to eliminate photo enforcement programs. “We have been adversely affected by reduced collection rates on some of our US contracts, write-downs on several contracts that have not been renewed, extended start-up difficulties with a major state-wide speed contract in Arizona and costs in dealing with litigation and legislative issues,” a Redflex statement explained. “These and other factors have affected profitability for the year.”
My wife and I are in the market for a slightly used car. I would like to ask the Best and Brightest: what cars should we take a look at in the under $15,000 (out the door) almost new category? Is there anything decent in this range? We want a sedan/wagon/hatch still under factory bumper-to-bumper warranty, long-term reliable, and fun to drive. Wife can’t drive a stick, and ABS is mandatory. Must get 30 Highway MPG to guarantee our low loan rate. Can it be done?
Our UK readers my be interested to learn that the Obama administration has introduced a rival to Postman Pat: Preliminary Pat. “The White House Council of Economic Advisers gave the [Cash for Clunkers] program a preliminary pat on the back Monday,” The Detroit News reports. “Saying it created or saved 21,000 jobs in its short, four-week life by forcing automakers to boost production and add shifts.” That, however, is not our money shot. A little wood, please, as the Council addresses the question of whether or not C4C simply bribed buyers to buy earlier than they would have. Stimulating new car sales but not actually increasing them. The Council admitted the possibility, but wasn’t fussed. “This time-shifting is valuable if the economy is in recession because the economy is likely to be closer to full employment in the future.” All the birds are singing, and the day is just beginning. Pat feels he’s a really happy man.
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