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I get it! Instead of putting the hate on owners of import-branded cars (as opposed to say imported Fords), supporters of the Big 2.8 could offer special membership benefits to those consumers who chose to support Chrysler, Ford and GM by buying their products (as opposed to say paying their taxes). We’ll have to see how this plays out in Farmington Hills, Michigan, where the owner of The Tribute restaurant is holding the antithesis of hot import nights. You can read the full offer to American-branded car owners (the cars, not the owners) after the jump. Meanwhile, rest assured this is no redneck truck stop. “Each night, executive Chef Rich Travis oversees the creation of eye-opening flavor combinations, pushing the boundaries of innovative cuisine to enthrall diners. His exquisitely detailed food, distinguished by diversity, inventiveness and spectacular presentation, are perfectly complimented by Tribute’s award-winning wine list.” Personally, I recommend the Grilled Honey Chamomile Glazed Duck Breast Duck Confit and Morel Wonton, Parsnip, Carrot, Wild Rice, Chamomile-Citron Gastrique. But then I’ve never eaten there. And I drive a Honda minivan, which, although it’s ranked number seven on cars.com’s American-made index, doesn’t qualify me for a 50 percent discount. Although… “In addition, during the week of Jan. 25-31, Tribute will recognize all American car-markers and offer a 50 percent discount on food purchases to anyone who drives an American made vehicle, including American automotive suppliers and dealers.”
I’m not sure why The Wall Street Journal thinks Germany is the next Japan in the U.S. new car market. For one thing, the market itself is lying in the gutter, naked, hungover and bleeding. In this environment, cutting capacity, protecting market share and not losing too much money (a.k.a. eliminating all but essential expenditure) is the only sensible plan. In fact, this article– “Europeans Raise Pressure on Detroit”– would be better entitled “Detroit’s Dead, VW’s Arrogant, BMW’s Hopeful and The Japanese are Hunkering Down.” Scribe Kate Linbaugh is content to take VW’s pre-crash, snicker-worthy “1m Vehicles or Bust” proclamation at face value, and extrapolate from there. “VW is investing in its first U.S. factory in two decades and expects to triple U.S. sales to one million vehicles by 2018. BMW is introducing a new small car and expanding its distribution network.” Never mind those previous, abortive efforts to make the U.S. Germany’s Land of Plenty (excluding Bimmer’s two-mode hybrid SUVs or VW’s Phaeton). “This time, European car makers insist more diverse product lines, healthy marketing budgets and access to nonunion labor can overcome past stumbles. VW is developing specifically for the U.S. several new models, including a family sedan. [VW Routan shown, irony be damned.] A new American manufacturing operation will free it from the currency swings that have hampered its U.S. sales in the past.” Do I detect a thinly-veiled attempt to say Japan and now maybe even Germany have a better U.S. business model than Detroit; a theory made on the cusp of December’s disastrous sales numbers to create maximum embarrassment for Motown? Well duh.
Warren Brown is nothing if not ambitious in his defense of the indefensible (i.e. GM CEO Rick Wagoner). Rather than just raise a[nother] cheer for the man who’s spent the last decade-plus jamming the yoke forward on General Motors’ inexorable descent into bankruptcy, the Washington Post carmudgeon decided to rewrite the entire history of the Japanese “invasion” of the American automotive market. But before he does that, Warren upbraids those who’ve called for Toyota Prez Katsuaki Watanabe to resign, suggesting that Watanabe and Wagoner are birds of a feather, getting flocked together. “GM, as we all know, has lost substantially more than $1.7 billion. In fact, it has lost $72.3 billion since 2004 under Wagoner’s reign. By that measurement, applying Fire the Coach rules, Wagoner is 40 times more deserving of dismissal than Watanabe. But here’s arguing that all of that is sloppy logic and in many ways inherently unfair. Here’s also suggesting that Fire the Coach management will solve nothing — or remedy very little — in an arena where game policy is athwart common sense, as it is and has been in a United States absent effective industrial and energy policies.” Same old you-know-what, different wrapper. Brown is once again, blaming everyone BUT Wagoner for GM’s chronic, shameful self-destruction.
Coming of age in the 70’s (lucky me), Cadillac represented everything I didn’t like about American cars. Like its lesser-priced sibs, it was an anti-sports car. With the possible exception of Lincoln’s Continental Mark My Words This Car is as Good as a Cadillac, a Caddy was THE anti-sports car. The idea of hustling one of those land yachts around a corner was laughable. And for me, it was all about the handling. (Driving a Dino had changed my life.) I remained contemptuous of America’s love affair for Caddy’s “sofas on wheels” right until the moment I met a girl in Aspen who drove a meticulously maintained 1962 Cadillac convertible like the one shown. Suddenly, all the curves I needed were inside the car. You know that song Slow Hand by the Pointer Sisters? It was on the Caddy’s radio during one especially memorable drive. I got it. And Caddy, I reckon, has lost it.
From Auto Letters by Jim Mateja in the Chicago Tribune: Q I purchased a new 2009 Chrysler 300 SRT8 a few weeks ago from dealer stock. The rear license plate was on, but the front wasn’t. The plate bracket was in the trunk, but I was told that nobody was available to install the front plate. I was told not to worry because I wouldn’t get pulled over and it looks better without the plate. If I wanted, I could bring the car back to get the plate installed. When I got home, I looked at the bracket to see whether I could install it and found that Chrysler changed the grille on the 2009 300 SRT8. The directions show the bracket is made to attach to the old grille. The parts department said the bracket is the correct one for my vehicle. I took the car back to dealer, and they agreed it couldn’t be installed, but there was nothing they could do. They said I should display the license plate on my dashboard. How can Chrysler produce a car that doesn’t and can’t conform to the state law, which requires a front plate? A How could a dealer tell you not to worry and that you wouldn’t get stopped for driving without a front plate that’s required by law in Illinois? And how could a dealer tell you to display the plate on your dash when all it takes to attach the bracket is cutting it to fit the mesh grille that replaced the egg-crate grille for 2009? ‘It just takes a little initiative by the dealer,’ Al Wagener, a salesman at Knauz Chrysler in Lake Bluff, told us when we called to ask how Chrysler could have goofed.”
GM’s scaling back its presence at this year’s don’t call it the Detroit Auto Show. Reports suggest a 32 percent reduction in shrimp size during press days and swag bags filled with actual brochures. You know austerity is the profligacy when Cadillac– GM’s top brand– decides to e-unveil their all-new SRX ahead of its Motown debut. Be that as it is, the formerly narrow-hipped Caddy will come in two flavors: a 3.0-liter direct injection V6 (260hp and 221 ft.-lbs. of torque) and a 2.8-liter turbocharged six (300 horsepower and 295 ft.-lbs. torque) Caddy promises that both aluminum-engined models will achieve fuel economy “in the 20s”– which is a bit like saying nothing much at all, really (low, mid or high; highway, combined?). The SRX faces stiff competition from existing players: the Lexus RX, BMW X3, Acura MDX and consumers’ existing vehicles (thanks to a moribund market for new cars). With optional 20″ wheels, LED brand boasting kick panels and the now signature cow-catcher prow, Cadillac seems to be hoping SRX’ image will move from invisible and soccer-Mom-station-wagon-on-stilts to Escalade-lite. (Low taste, less filling.) Can the SRX command a premium, or will it be another Art and Science of the deal job? They’ll announce the all-important price just as soon as the first tranche of bailout money– sorry, press coverage is spent.
A – due to worldwide holiday inertia – very short overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Until Jan 4, 2009, WAS is being filed from Tokyo.
Japan relieved that Chrysler got the money: The Nikkei (sub) brings its Japanese readership the happy news that “Chrysler LLC received its $4 billion low-interest federal government loan Friday, helping the auto maker continue funding its operations and paying its suppliers for parts.” This is registered with relief amongst JP automakers, as they worry about the health of their suppliers. The Nikkei also points out that “Cerberus is interested in finding a partner for Chrysler.” The search for suitors may be hampered by the fact that Chrysler “relies on North America for about 90% of its overall sales.”
Geely has big plans: China’s Geely aims to boost vehicle sales by 25 percent this year by way of new models and government incentives. Geely plans to sell 281,000 units this year, against nearly 225,000 units in 2008, a company official, Zhang Xiaodong, said according to Gasgoo. Geely is the only larger Chinese car maker that has not formed any alliances with foreign counterparts. They just received a $147m line of credit from China Everbright Bank.
The basic idea behind Hyundai’s new Assurance scheme: if you can’t afford the payments on your new Hyundai-financed Hyundai within the first year of financial servitude, just drop it off and walk away. No debt. No ding to your credit rating. No charge. The devilish details might not keep the Charmed Ones busy, but they’re worth a closer look. For example, you can only boomerang your Hyundai if you’ve experienced “involuntary unemployment, physical disability, loss of driver’s license due to physical impairment, international employment transfer, self-employed personal bankruptcy, accidental death.” One wonders about the importance of credit ratings to someone who’s just shuffled off this mortal coil, but that’s just quibbling. And, of course, there’s a few Hyundai-shaped hoops you have to jump through even if you are dead.
Wheels Weekly (WW) has the heads-up on Ingolstadt’s claim that the LED headlights adorning the front of their uber-R8 are good for Mother Earth. The blogger-in-chief’s prose sounds a bit like the flanking English translation in a German airplane magazine, but he nails it in the incredulity department. “Now as times are tough for manufacturers, every little selling point are scavenged and placed under a magnifying glass looking to woo any sort of buyers they can gather, pretty much the case with this Audi R8 V10, we’re abit loss [sic] reading an entire page of press release which had nothing to do with Nurburgring records or skidpad figures, rather, boasting about its all LED headlamp, how much CO2 it saves.” It’s not an entire page of greenery, and I’m a big fan of incrementalism. And a car nerd. But it is strange world where Audi’s Head of the “Light and Visibility Department” trumpets CO2 savings. [excerpt after the jump]
TTAC Used Car specialist Steven Lang swears eBay’s “completed items” section is the most accurate indication of any given vehicle’s “real” market value. I have no reason to doubt him. But trolling the auction site for the quirky whips or celebrity cast-offs– the brother of the drummer of the Cars’ modded Monte Carlo– is a practice I find tedious both in execution and end result. OK, Autoblog has a keen eye and more patience that I can muster. And I’ve promised TTAC’s Best and Brightest a better mix of automobiles and politics. So I put on my websuit and surfed a few of my favorite car porn sites on your behalf. My first NEFOTD is this little beauty. The duPont Registry provides provenance: “This car was judged Best in Show at the 2003 ACD National in 2003, and then went on to win at Pebble Beach in 2004. It was restored by La Vine in Florida at a cost of over several hundered [sic] thousand dollars. The car was far ahead of its time with front wheel drive, pre-selector 4 speed transmission, stunning styling and a supercharged 8 cylinder motor developing 175hp. The car had been stored for many years before being restored to its present condition. Only 688 Supercharged Cords were made in all models at a cost of over $3000.00, a 37 Chev sold for $415.00.” If you want a classic car, you can do no better than to buy someone else’s prize-winning restoration (for pennies on the dollar). Anyway, eat your heart out eBay.
In The Incredibles, as Syndrome is about the vanquish Mr. I, the fan-gone-bad pauses to explain his actions. As he does so, our hero counter-attacks. “You caught me monologuing!” Syndrome chides himself. And it’s true: monologues place their creator in a particularly vulnerable spot. If he or she can’t sustain the listener’s interest, there’s no one– absolutely no one— else to blame. And like the shock and awe-meisters who attacked Iraq, brother, I know what it’s like to bomb. Still, in cyberspace no one sells ice cream. Ba-doom-boom. But seriously folks, I’ll get that damn headset Monday, and resume podcasting with one of our regular cast of characters. And I’ll start phoning newsmakers to get the inside dope on the dopey things going down in Motown, and elsewhere. Meanwhile, an experiment, if you will. If you won’t, I hear you. Er, feel you. Um… understand.
The recent historic drop in fuel consumption has translated into a $3b drop in taxes going into the Highway Trust Fund year-on-year. It’s a crisis! It’s a good thing that GW Bush signed into law the “Safe, Accountable, Flexible, Efficient Transportation Equity Act” back in August ’05. The Act empaneled the National Surface Transportation Infrastructure Financing Commission (NSTIFCT), and directed it to devise a new way to finance the Highway Trust Fund. Reuters has secured a draft copy of the commission’s final report. NSTIFCT’s recommending that Congress should raise U.S. gasoline taxes by 10 cents a gallon later this month, to “fix bridges and ease congested highways.” But that’s not all! “The gas tax is broken, so any increase in gas tax is just a Band-Aid,” commission member Adrian Moore said. “It gets you through a very short term. It doesn’t even remotely solve the problem.” Actually, the only thing broken about the federal gas tax is that it’s fixed at 18 cents per gallon. The tax hasn’t been adjusted for inflation– or any other factors– since it was last increased in 1993. But Mr. Moore doesn’t point out obvious fixes like indexing the federal gas tax to inflation, or otherwise periodically adjusting the tax based on the needs for highway spending. Anyway, Mr. Moore is down with pay-as-you go, we-know-where-you-are road pricing. Privacy concerns? No worry, Big Brother will not be a government agency, but a consortium of private road builders looking for a profit. Sort of like health insurance companies, only more intrusive. So which would you rather have, private toll roads and FasTrack monitoring everywhere, or gas taxes adjusted as needed to keep our highways in an adequate state of repair? Here’s hoping we get to make that choice.
On Monday, the German magazine Der Spiegel will report that Daimler had looked at taking Volvo off Ford’s hands. But after trying Volvo on for size, the good folks in Stuttgart decided it’s not a good fit. “Daimler boss Dieter Spiegel has carried out a close examination of a possible purchase in the past few weeks and acknowledged a series of possible drawbacks,” the German weekly will say. According to Der Spiegel, Daimler scoffed at problems with harmonizing Volvo with its own Mercedes cars. The article is not even out yet, and it has already been shot down by a missive from Stuttgart. Two days before the report was to appear, Daimler said it’s a fabrication. “We were never interested in Volvo,” a Daimler spokesman said to Reuters. Not interested doesn’t mean they didn’t look.
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The New York Times entered the irony-free zone this morning, with an op ed entitled “GM’s Secret Success.” WTF? Is one of the Gray Lady’s ambassadors about to call GM’s descent into bankruptcy and subsequent raid on the public purse a “success”? Nah. The author of the forthcoming tome “Why G.M. Matters: Inside the Race to Transform an American Icon” wants you to know that GM CEO Rick Wagoner is a genius interruptus. “In reality, Mr. Wagoner has presided over the most sweeping transformation of G.M. since the 1920s,” William J. Holstein opines. “He has reversed management’s long practice of meekly going along with the demands of the United Auto Workers, notably with a deal to transfer health care costs to a union-controlled trust over the next two years.” Ah, a tour of an alternate reality. Cool. But why stop there? Why indeed.
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