Find News by Subject:
Category: News Blog
Autoremarketing reports that not only were November’s results the 11th straight monthly drop this year, they were also the steepest thus far. In even better news ( at least for the makers of your favorite brand of anti-depressants), the Seasonally Adjusted Annual Rate (SAAR) of sales shows that things are even worse than they initially appear. “When December’s numbers are extrapolated, fourth-quarter SAAR is expected to be 10.4 million units,” intones Autoremarketing, “which would be 35.8 percent weaker than the fourth quarter of 2007 and the heaviest drop-off in 4Q SAAR since 1967.” And this, despite widespread attempts by OEMs to redline their sales with cash on the hood. Average cash rebates in November were $3,392, up 71 percent from a year ago and at their highest level since 2003. Incidentally (or not) 2003 was also the last time we saw turn rates as slow as this month. Vehicles sat an avaerage of 83 days on the lot in November, up from 73 days in October and 58 days in November of last year. Market stratification continues apace, as “compact basic” and “compact conventional” models sat only 35 and 44 days respectively, while anything with the name “utility” in its category sat for at least 100 days on average. Finally, “negative equity trades (as a percent of all trades) dropped to 25.48 percent in November, the lowest level for this metric since the start of 2003 as owners with upside-down vehicles either could not obtain a loan or stayed out of the market altogether.” Bail that.
someone said…poor Rick, he just inherited too many difficulties…
I replied…
do you have all night? he could have stayed away from Zarrella, he could have left John Rock alone at Olds. he could have shut Saturn down long ago. he could have stayed the hell out of Fiat. could have kept Delphi inhouse, could have held marketing staff resposible. could have ousted Deloitte and rotated auditors to generate accurate and truthful financials, and of course…could have let LaNeve go forward with implementing Return to Greatness.
he could have kept an eye on Eric Feldstein at GMAC and not let mortgages be written that would jeopardize the future of GMAC. he could have listened to Jerry York and changed the Board meetings to an actual working environment. he could have detailed plans and earnings guidances instead of offering nothing more than that smug smirk, stutter, and eye twitch.
he could have held annual meetings in Detroit where the people are, he could have gathered individuals from the industry for the Board instead of British Petroleum, Goldman Sachs, and Astra Zeneca. he could have kept the great car names of our past, he could have put people to work in some capacity instead of idling them in the Jobs Bank. he could have let natural attrition replace long term employees over time instead of throwing money at them with reckless abandon. he could have left the retirees alone to enjoy their well earned security (after all they are our greatest ambassadors). he could have should have but didn’t
Oil shocks, terrorism, economic malaise, automaker bailouts and now six-wheeled cars. What’s next? Disco and pet rocks?
Anyone remember the good old days, when TTAC manned the barricades in the fight against federal subsidies to a corn-based ethanol industry that made little sense for anyone but the corn-based ethanol industry? Rest assured, we haven’t de-listed our “E85 BOTD” (Boondoggle of the Day) category. We’ve just been a little… preoccupied with that other call on the public purse emanating from the city whose motto is, ironically enough, Speramus Meliora. And while we’ve been away, the price of imported oil– and thus gas– has dropped precipitously. Even copious federal subsidies (.50 a gallon “blender’s credit” to start) hasn’t been able to shelter the E85 folk from that particular reality. In fact, E85 sales are pretty much shot. Kaput. It’s got so bad (good?) that E10 (10 percent corn juice) is now falling by the wayside.
As the madness swirled last week, a certain Robert Lutz was being kept well away from the PR-charged atmosphere in DC. But driving Volt/Cruze mules around in circles (instead of to the capitol) isn’t what gets you “Maximum” for a nickname. And with calls for Rick Wagoner to step down busting out all over, reporters are falling over themselves to put a quarter in the Bob Lutz quote machine. Yesterday we were treated to Lutz’s opinion that Wagoner is the “best CEO he’s worked for,” and today there’s even more hilarity in the Detroit Free Press. “These are somber, serious economic times — but it’s still hard to hang up from a 10-minute phone chat with Bob Lutz without chuckling,” writes Freep columnist Tom Walsh. And boy, he isn’t kidding. “If Congress wants a sacrifice, it should be me,” Lutz told Walsh. “I’m older and I’ve made politically incorrect remarks about global warming, so it should be me.” Unfortunately, Lutz didn’t spend the whole interview doing tongue-in-cheek corporate samurai shtick.
Autocar reports the TTAC-predicted cratering of new Ferrari sales. “Global sales at the Italian supercar maker have dived from almost 600 a month to just 92 cars in November and Ferrari is now negotiating with Italy’s trade unions to trim unwanted road-car production staff.” And it appears (ya think?) inventories are building-up. “Ferrari will also shut its Maranello production plant for an unprecedented 20 days over Christmas, which sources insist will be to prevent vehicle stockpiles reaching unmanageable levels.” Uh-oh? No! “Ferrari has denied that the company has been adversely affected by the credit crunch. The company said that the extended break was merely Ferrari being generous to its employees.” It gets worse…
Date: 12/08/2008 Ref. number: Marketing / Programs and Promotions / G_0000017071
Subject: GM Dealership Employee Discount for Family
——————————————————————————–
Beginning Monday December 8, 2008, GM is offering a temporary program allowing GM Dealership Employees the opportunity to offer GMS (Employee Discount) pricing to the same eligible family members that GM Employees do.
This means that GM Dealership employees can offer GMS pricing to their spouse, children, stepchildren, grandchildren, stepgrandchildren, grandparents (including in-law and step), parents, stepparents, siblings (including full, half and step), mother/father in-law, sons/daughter in-laws, brothers/sisters in-law, and same sex domestic partner (SSDP) where applicable (NOTE: Eligible SSDPs are treated the same as spouses, and therefore, their dependent children and stepchildren are also included).
Eligible family members must take delivery by January 5, 2009 and may only purchase GM vehicles that the employing dealership location is franchised to sell or from GM dealerships owned by the sponsoring Dealer Operator at the time of delivery. The program excludes Saab vehicles.
To get an authorization number for your family member, log in to gmded.com and select “Dealership Employee Discount for Family” along the left. Enter your eligible family member’s date of birth and zip code and get you authorization number
Authorization numbers for this program must be submitted for payment to BARS by January 5, 2009.
——————————————————————————–
Contact name: Program Headquarters E-Mail:
Department: Marketing and Advertising – CRM NVPP Marketing Phone: XXX
Intended roles: Internet Sales Person, UItest, Parts Manager, General Sales Manager, Medium Duty Sales Manager, Internet Sales Manager, Wholesale Sales Person, Warranty Administrator, Used Vehicle Sales Manager, Used Vehicle Sales Consultant, Title Clerk, Systems Manager, Service Manager, Service Advisor, Parts Inventory Manager, Parts Counter Person, Parts & Service Director, Office Manager, New Vehicle Sales Manager, New Sales Consultant, Medium Sales Coordinator, Inventory Manager, HR Manager, General Office Support (Cashier), General Manager, Fleet/Commercial Manager, Fleet Sales Consultant, F&I Manager, F&I Director, Dealer, Business/Accounting Manager, Body Shop Technician, Body Shop Manager, Sales Functions, Sales Management
Archives: 01/08/2009
Three years ago, Texas researchers discovered that the most common form of High Occupancy Vehicle (HOV) or carpool lane was associated with a significantly higher risk of injury accidents. A recent University of California study now suggests a remedy intended to reduce HOV lane risk may actually be making the already dangerous lanes even less safe. Researchers with California Partners for Advanced Transit and Highways (PATH), a joint venture of the state Department of Transportation and the University of California, looked at accident data for two types of carpool lanes in California. They considered 279 miles of “continuous” HOV lanes, primarily in the northern part of the state, where drivers can enter or exit the HOV facility at any point. The report then analyzed another 545 miles of “limited access” lanes that used either painted stripes or flexible plastic barriers to restrict cars from entering or exiting except at pre-determined locations. Although the limited-access lanes promised smoother travel with fewer interruptions from general purpose traffic, they also delivered deadlier travel. “Rear end and sideswipe collisions together comprised over 90 percent of all collisions in both facilities,” the report stated. “Higher Property Damage Only collision rates were observed in both the HOV and left lanes of the HOV facility with limited access. The combined injury related collision rates for the HOV and left lane was higher for the limited access.”
Automotive News [AN, sub] headlines its story about the cutbacks in auto industry ad spending with “We’ll all be singing Motown blues in ’09.” What do you mean “we” white men? According to AN, “Long-term media plans are history, and buys are being made month to month or even day to day. More ‘accountable’ media such as interactive are likely to be stressed.” We’re interactive, aren’t we? Accountable? Anyway, TTAC is a lean, mean news, reviews and rants machine (i.e. it’s run a by a nutter in the attic). But those automotive organizations with high-priced talent and big overheads (i.e. everyone else) are looking at some serious pain. “GM’s recovery plan, turned over to Congress, calls for it to cut a massive $600 million out of its marketing over four years. Ford will trim up to 10 percent of its outlay next year, which could result in another $100 million moving out of the market based on its measured spending of $757 million in the first nine months of the year… Chrysler is staying mum on its spending plans, but it’s a good gamble that the automaker will have to slash a big chunk of the $579 million TNS tracked it spending in the first nine months of this year.” I suggest that Motown’s media cheerleaders and apologists file this one under “be careful what you wish for.” Check out the tone after the jump.
Yesterday, we took Autobloggreen (ABG) to task for running a thinly-veiled pimpatorial for the new Mercedes-Benz GL320 BlueTec. Their post was disguised as a celebrity trend piece, supposedly informing eco-readers that Hollywood eco-warriors were exchanging their Priora for an equally PC Mercedes-Benz GL320 BlueTec diesel. We so busted them, from the manufacturer’s plates on the carefully-posed cheesecake shot’s whip, to the fact that ABG printed the entire MB press release verbatim. And now, surprise! They’re reviewing the Mercedes-Benz GL320 BlueTec. And do they like it? What do you think? But there is humor here, to be sure. “The garish graphics on the GM hybrid SUVs scream out to the world, ‘look I bought a hybrid! even though I’m still driving alone in an a 6,000 lb, seven passenger SUV!’ The Mercedes, on the other hand, only has discreet BlueTec badges on the front fenders and the tailgate. Aside from that and the GL320 badge, there is no other indication that this vehicle can get mileage in the mid-20s.” Whoa! Mid-20s? In an SUV? ABG’s planet saving mission is go! With 11k worth of options, no less…
Good morning! Slept well? Here is what happened in the meantime. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off.
Running into a BRIC wall: The emerging BRIC markets (Brazil, Russia, India, China) are running low on gas, The Nikkei (sub) reports. Passenger-car sales in China dropped 10% on the year in November. Sales in Russia declined for the first time since 2002. Sales in Brazil and India are also falling. The Nikkei: “This is bad news for automakers, which had hoped to offset slower sales in Europe and the U.S. with growth in the emerging markets.” TTAC: The BRIC countries will save the numbers of the international automakers for 2008. For 2009, BRIC will be of as much help as an empty BIC.
Japan putting the brakes on BRIC: In related news, Japanese makers are stepping on their BRIC brakes, The Nikkei (sub) says. Nissan postponed the start of operations at a joint venture factory for small commercial vehicles in India. Honda delayed by more than one year the launch of their second plant in India. Toyota is modifying its overall investment plan and may change the starting date for a plant that it is building in China. In Russia, Nissan plans to start a new factory in 2009. Suzuki wants to follow in 2010, Mitsubishi in 2011. The Nikei: “These plans could be derailed by tepid demand.” For the seven Japanese manufacturers of passenger cars, sales in emerging markets totaled approximately $150b in fiscal 2007. Better luck for the Germans …
Yesterday, we reported that Ford is in a big hurry to unload Volvo to interested parties (preferably) in China. The article quoted a story in London’s Times. The Times had received information that Ford is talking with SAIC to take Volvo off Ford’s hands. There are more interested buyers: Top executives of Ford’s Chinese joint venture partner Changan are in talks with Ford to buy Volvo. This according to China’s National Business Daily which has it from an insider at Changan.
At the Guangzhou auto show last month, Volvo’s top executives had long talks with Changan Auto president Xu Liuping. When Ford Motor announced its plan to sell Volvo, the presidents of Ford Asia Pacific, Ford China, and Volvo China met Changan’s president at Changan’s HQ in Chongqing for closed-door talks. NBD’s source added that it is logical for financially troubled Ford Motor to consider Changan as a possible Chinese partner of its Volvo brand, because they have the Changan Ford Mazda joint venture which is also producing the Volvo S40 and S80 models. There are more reasons to buy …
Recent Comments