The fact that Chrysler is [still] offering buyouts to its United Auto Workers (UAW) employees is not news. The fact that this money is coming from the federal government is also no biggie, actuality-wise. I mean, whose money did you THINK they were using? But the Detroit Free Press report that ChryCo has upped its cash-and-a-car offer to its unionized veterans—to convince them not work at the bankrupt automaker’s closed factories—is a bit odd. Yes, “The autoworkers are now being offered up to $115,000 plus a $25,000 vehicle voucher to leave Chrysler voluntarily. The larger lump-sum payment, which was increased from $75,000 in earlier buyouts, is available to workers under 50 years old who have 10 or more years of seniority. Workers 50 or older who qualify for some pension benefits won’t receive that type of onetime payment. But those with 30 years, or whose age and years together exceed 85, will receive $50,000 plus the $25,000 voucher for a new Chrysler vehicle.” And here’s the kicker . . .
Residents fed up with the promotion of red light cameras and speed cameras in Longview, Washington are looking to cut off the ability of city council members to impose the technology. Local activists Mike Wallin and Dave Grumbois last week announced a drive to collect the 2786 signatures needed to give voters a chance at the ballot box to block the expected installation of automated ticketing machines in the community of 35,000. “We have heard enough from The Daily News, city staff and the city council, so we are inviting the community to listen to our perspective of the use of traffic cameras,” Wallin said in a statement. “We can’t sit idly by and let the city’s desire for more revenue trump common sense and conventional wisdom. We the people must act now.”
The Porsche/Piech family feud has reached high politics and the gutter—which, according to some views, is about the same. Chancellor Angela Merkel opened the “hot phase” of the (European, ho-hum) elections, notably in Wolfsburg, seat of Volkswagen.
She was flanked by Christian Wulff, premier of Lower Saxony, owner of 20 percent of Volkswagen. Also there—unusual for a campaign rally—VW CEO Martin Winterkorn, and VW’s workers’ council chief, Bernd Osterloh. A show of unwavering unity, a signal to Stuttgart. Their contribution to the election that sends representatives to Brussels? A salvo in the direction of Brussels: “We are fighting for a Europe that doesn’t interfere with all decisions,” said the Chancelloresse. “One of these sacrosanct decisions is the VW-Law.” The very law that keeps Lower-Saxony in the driver seat of VW and keeps the riff-raff from Stuttgart from taking control of Volkswagen. Premier Wulff said it more clearly: “The sole dominance of VW by Porsche has failed.” And it’s getting steamier . . .
I’m no stranger to this ungodly hour. Having raised four daughters, I know why the early bird gets the worm: Lumbricus Terrestris hasn’t had time for a cup of coffee. Still, needs must. TTAC may have crested 1m viewers per month, but we’re still eyeball based. Our survival still depends on ad revenue. So we need to give as many potential readers as possible a “taste.” Hence the early hour. I’m about to get picked up by a local car service to take me to a radio station to argue against CAFE standards and for a gas tax. Should be fun. Tell all your friends! Well the ones with small children. Thanks. [click here to listen to the interview on WNYC Radio and Public Radio International’s “The Takeaway”]
The chief engineer on GM’s Volt project may have admitted that the new Chevy Cruze isn’t “pretty,” but it still has to be a big deal for GM. Korean-built Cruze was recently launched in China, with the star of the show Prison Break as its spokesman. The interesting part is that, according to Automotive News [sub] “the actor is famous in China even though the series has never aired officially in the mainland, a sign of how entrenched intellectual property theft is in China.” If that’s not an auspicious start, it’s hard to say what is. Angus Mackenzie of Motor Trend got to tool around in a China-spec Cruze at the launch, and the best he gives it is “good in parts.” His unconvincing conclusion is that “the good news is the basics are there. Now GM must sweat the details.” Oh boy.
The folks at Mashable love to measure buzz, twits and general internet exposure, and they’ve come up with a few graphs that show how the automakers are weathering the current unpleasantness. And they show that (by the numbers, anyway) Ford is the most new-media savvy of the American automakers. Which means that on the straightforward (and questionably effective) metrics, Ford comes out on top. Most Twitter followers. Most Twitter updates. Most Youtube video tags. Most Flickr photos. Stop me if you’re getting too excited. But despite the huge numerical advantages that Ford boasts in the YouTwitosphere, the most interesting fact is that Ford is the least-covered automaker in actual news stories but most-covered in blog posts. Which means a lot of Ford’s measurable popularity might be attributable to the lack of bad news about it in the mainstream media. Not taking a bailout probably helped, too. Either way, you can’t help but wonder what the benefit really is of most of this “new marketing.”
American-owned supplier firms, not so much. Automotive News [sub] reports that Fiat’s plans to replace Chrysler’s entire “car lineup” with its own models creates an opportunity for Italian supplier firms to steal business from their American competitors. You know, the ones which would have created a “death ripple” in the American economy if Detroit were not bailed out way back in December. Chrysler’s last merger was “a catalyst to bring more German suppliers to North America,” says Michele Vannini, North American head of Italian engine maker VM Motori S.p.A. “The same thing can happen for Italian suppliers with Fiat and Chrysler.”
The NY Times is reporting that President Obama will announce new emissions standards tomorrow that are aimed at ending the discrepancy between Californian and national emissions standards. The federal effort will combine California’s emissions standards with the Corporate Average Fuel Economy standard, creating a unified national benchmark. This will force OEMs to clean up emissions by 30 percent by 2016, while preventing California from moving the goalposts again, say industry officials. The upshot? By 2016 car offerings must average 42mpg while trucks will face a 26.2mpg average requirement.
The Federal Reserve Bank is spending your (and your great-grandkids’) money in lots of creative ways these days. But some minuscule portions of it go to boring humdrum stating-the obvious analyses like this report, “From tailfins to hybrids: “How Detroit lost its dominance in the U.S. auto market.” Well, boring, perhaps to the well-informed B&B here at TTAC, if they’ve kept up on their assigned reading. If not, and a very thorough (but not overly long-winded) analysis is your cup of tea, read away. If you want the Cliff-Notes version, make the jump here:
Triskedecaphobes beware: I make it 13 days until GM files Chapter 11. It will be interesting to see which meme means business on the day. Will the popular press parrot Detroit’s party line: comeback interruptus (i.e., unforeseeable events destroyed the best laid plans of mice and men)? Or will karmic retribution be the topic du jour (i.e., they killed the electric car)? No matter how the Monday morning quarterbacks parse it, there’s no doubt that Detroit’s decline will serve as THE case study in monumental failure for those who don’t want to read Gibbon’s “The Decline and Fall of the Roman Empire.” Always ahead of the wave, TTAC’s Paul Neidermeyer has already shared his analysis of this debacle. Paul’s warming up his Dawn of the Dead essay for the actual event. Meanwhile, a number of our Best and Brightest have sent me a link to a BusinessWeeksynopsis of “How the Mighty Fall: A Primer on the Warning Signs.”
The Freep‘s Mark Phelan has a new paean to the Chevy Volt mule’s electric grunt, saying the Cruze bodied tech-tester has “immediate torque for acceleration most sporty small cars would envy.” As GM prepares to build the first run of Volt-bodied test mules starting in mid-June, it’s bumping up the media presence of its last best hope by offering flacks like Phelan another test drive. And this time around the Volt’s “sporty acceleration” tops the talking points. “The test vehicle ran with smooth, quiet power,” reports Phelan, “but driving it felt reassuringly like getting behind the wheel of any new car.” Which conveniently is “a key goal for the Volt program,” according to GM EV Maestro Frank Weber. Another “key goal?” Making it look good enough to draw interest at its $35K price point.
Less than three weeks after Chrysler filed for bankruptcy protection, it looks as if the Obama administration will pull off its goal of completing the carmaker’s restructuring by June, allowing it to emerge as a smaller, more viable contender in the global auto market.
Who pressed the Easy button? Reading between the lines, it’s clear that the New York Times editorial board’s faith in “new” Chrysler stems from the fact that they’re planning to build the kind of cars [theoretically] favored by people who live in large urban areas. Hence the fact that The Gray Lady uses the phrase “fuel-efficient” twice in two sentences.
Sajeev, my 2005 Dodge Durango (4×2 Limited with Hemi and tow package) hit a critical juncture in April. The truck hit 70,000 miles meaning the 7/70 power train warranty expired, and Chrysler just BK’d. Since the vehicle is in great shape, good for road trips, is all but paid for, and is worth less to a dealer than it is to me, I plan to keep it for awhile. I have been told the 5.7 with the 5 speed auto is a fairly bulletproof power train, and with proper care and feeding should last a long time. The truck gets no severe service and is driven fairly gently, 70/30 highway/suburban use, 18,000 miles per year.
To keep it running I am debating keeping with the OEM scheduled 5000 mile oil changes (usually available for about $22) or switching to Mobil One at 10k or 15k change intervals. If I switch to synthetic oil, would you suggest a “better” quality oil filter (and what brand)?
The Detroit News reports that Ford’s wind-down of its Mercury brand continues apace (i.e., very slowly). Now that the mothership has eliminated its standalone Mercury franchises, they’re using the same process of attrition to grandfather the brand’s models to death. As of Thursday, Ford will no longer build the Mercury Sable. I know, it’s a crime, right? “Ford only sold 1,158 Sables last month, down 37.8 percent compared to April 2007.” Yup, the Sable’s another D-platform loser. “That will leave Mercury with just four models,” the DetN writes, displaying an uncanny knack for numeracy, “including the Mountaineer and Grand Marquis, both of which are scheduled to be killed over the next couple of years. Mercury is supposed to get a new small car, but Ford has no other models planned for the brand at this time.” At this time? Brrrr. Will someone please close that door? Hang on; what’s this?
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