From the moment that GM’s Next Small Thing was announced, this blogger complained that the baby ‘Bu approach made for a particularly inflexible platform. And then we heard that the Orlando seven-seater Cruze variant wouldn’t be made in America, seemingly confirming that GM doesn’t take the roomy compact trend seriously. Perhaps GM was listening to our complaints, because Automotive News [sub] reports that GM is considering hatchback and wagon versions of its new compact in order to “accommodate the ‘individuality’ of markets around the globe.” “We will have tool sets in many locations,” says Hans Demant, managing director of Opel of the Cruze strategy. “And as soon as you have a tool set, you have variation which you can create basically at no cost. You have a customer advantage if you make a little modification while you’re doing that.” Demant also reveals that the Cruze will have different powertrains from market to market. Of course, highlighting the Cruze platform’s flexibility and GM’s ability to make tweaks based on individual markets’ needs doesn’t mean any of these variants will arrive in the U.S. at any point. In the very same article, GM COO Fritz Henderson says that the Cruze “won’t have high levels of variability. Huh? “We’ve developed the vehicle to meet broad, different levels of regulations: pedestrian protection, safety, emissions, all kinds of different requirements,” says Henderson.”But other than that, the Cruze will be the Cruze.” In other words, no news here. We think.
Category: News Blog
I agree. Merge in haste, repent at leisure. Or, as Maximum Bob puts it to The Detroit News, “There is no timeframe at all for having anything definitive.” This said following Lutz’ speech at the “2008 Public Relations Society of America International Conference” at the Renaissance Center. The what? A PR conference? Oh, no spin there, then. I mean, is there some timeframe to have something not so definitive? Meanwhile, we so totally believe that the “sources close to the deal” quoted by Mowton’s hometown paper aren’t GM itself. The DetN reports that these SCTTD have previously told them that “GM and Chrysler want to get a deal done before the presidential election on Nov. 4, when politicians may be more receptive to requests for federal aid to complete a merger.” I make that “Who’s your Mama, Obama” by rapper 2 Big 2 Fail. “Lutz would not comment on reports GM has approached the U.S. Treasury for help financing a deal with Chrysler owner Cerberus Capital Management LP.” In other words, MB doesn’t know, doesn’t care (golden parachute at the ready), doesn’t remember or ain’t sayin’. We’re still hearing that the deal’s going down on Halloween. No, really.
Despite the five-week holiday Daimler said its German workers will get this winter, the firm is still going ahead with plans to build a €800 million factory in Hungary. The factory is, according to Reuters, meant for “compact cars,” though what they’d be I have no idea. Smart doesn’t need any more capacity (a previous attempt to expand the smart brand was a dismal failure). It’s not as though the expensive A- and B- Class Benzes are flying out of showrooms, either. The original plan: build four compact models at the Hungary plant, including an off-roader, cabrio, coupe, and small van. But that was in June, before everything went to hell. And Mercedes changes its product plans on a weekly basis, anyway. The bigger story is how much the Hungarian government is contributing to the deal, whether in the form of tax credit or just direct subsidies. Hungary’s economy has been in seriously deep trouble in the past six months, with the currency in freefall and interest rates at 11.5 percent in an attempt to help the currency. Just this weekend, the IMF scrambled to bail out the country (this was after the European Central Bank gave Hungary’s central bank an emergency €5 billion line of credit earlier this month). With all this in mind, Hungary’s officials are probably looking to the Mercedes factory as an economic blessing, and Mercedes is likely cautiously optimistic about the low value of Hungary’s currency.
The People’s Republic of China has decided to drop some serious money on digging the country out of a hole. We’re not talking namby-pamby bailout money for distressed banks and auto companies that may actually go up in price (yeah, sure.) We’re talking real hard asset investment. China’s State Council has approved $300b for large scale construction projects to seriously boost economic growth, China Daily reports. Everybody had been banking on concrete measures to expand China’s clogged roads. But to the abject horror of China’s motorists, the government’s money will be working on the railroad. “In 1997, we dealt with the Asian financial crisis by stimulating domestic economic growth by investing in the construction of highways.” Zheng Xinli, a senior government policy advisor, said. “This time the money will go on improving the rail network.” Using the CIA Factbook’s numbers, 1/10th of GDP will be railroaded through China’s economy. Somebody’s making out this BIG STYLE. Bulldog, bulldog; bow wow wow!
April 10, 1945. American troops advance towards the Elbe. Russian troops prepare their encirclement of Berlin. WW II will last less than a month. On this day, a man packs up 10 million Reichsmark at the Volkswagenwerk GmbH and heads for Austria. This man is Anton Piech, Chief of Operations at Volkswagen, and Ferdinand Porsche’s son-in-law. Ferdinand Porsche had designed the Volkswagen for Hitler. The 10 million Reichsmark were Volkswagen’s war chest. Piech says he will keep the money from the enemy. Keep he did: The money was used to found Porsche KG. Nobody complained.
In a world of wild ass rumors, the four door everyman’s supercar is King. Maybe. No matter how you look at it, you gotta wonder what these Nissan/Infiniti guys are thinking. Pistonheads says “Unconfirmed reports from Japan say Nissan engineers are actively evaluating a four door built on a stretched version of the GT-R platform, with a view to introducing a new flagship to the luxury Infiniti brand in 2011.” New flagship? So Infiniti GT-R sedan replaces the previous, now extinct Q-ship, slots above the M-people, pals around with the G-men and lives happily ever after? And if that’s not enough to make Infiniti a success in Europe, PH reckons the new GT-R car will be horsepower-deficient. “Sources suggest an output of around 420bp is on the cards, significantly down on the output of European super-saloon rivals. However, with the GT-R’s intelligent ATTESA-ETS AWD system and six-speed dual-clutch transaxle carried over, it will be interesting to see how the lack of outright muscle translates into track times – although Nissan insiders have apparently conceded that any Infiniti flagship will be tuned for luxury before ultimate performance.” Right, ’cause GT-R means luxury. Go figure.
As Ken Elias points out in his latest General Motors Death Watch, GM is asking the feds for money to fund their merger (now buyout?) plans for Chrysler. The Wall Street Journal [sub] tells the tale, highlight analyst Ron Lache’s “come to Jesus” moment re: the automakers’ cash conflagration. “”Without external intervention, from consolidation or government assistance, we expect GM to reach its minimum cash position in under 12 months,” Deutsche Bank auto analyst Rod Lache wrote last week. In an interview, Mr. Lache added that Chrysler is also running dangerously low on funds. “We believe Chrysler is in the same position. It’s either August 2009 or December 2009 they run out. Both have a limited runway.” OK, so, now, bring on the anonymous source! “GM and Chrysler ‘are basically waiting on the government,’ said one person involved in the merger talks. ‘The three choices are bankruptcy, a big intervention from the government or some big deal like this that has massive cost-cutting possibilities,’ this person said. ‘That’s it. And even the big deal may require government help.'” Or… the feds could do nothing. You know, theoretically. But wait! It gets worse!
The worm has turned. The unabashed adulation given the Tesla Roadster and its wide-eyed progenitors has turned into something altogether vitriolic. In other words, payback’s a bitch. Even before the first demo Tesla prototype hit the streets, TTAC called on the media to stop the love fest and wait and see if the company’s product lived-up to the hype (250 miles to a charge! Recharge in three hours! Ready by spring!) The “you can only ride with us but not drive or test” press teasers set off ALL our alarm bells. When Tesla spinmeister Daryl Siry withdrew his offer of a TTAC test drive, we knew the company was full of shit (to use the technical term). In fact, the Roadster STILL HASN’T BEEN FULLY INDEPENDENTLY TESTED FOR SAFETY, RANGE AND RECHARGE TIMES. But the unwinding process has begun. And this shot across Tesla’s bow, via Tony’s Climate Change Blog, could leave a mark.
Hey! What happened to TTAC’s invitation to the GM “Night on Bear Mountain” mass test drive? If it’s good enough for Autoblog and Jalopnik, it’s good enough for us. Of course, TTAC’s not in the tank for GM. We might do something impolite, like point out that the Saturn Vue 2 Mode Hybrid is an excellent example of everything that’s wrong with GM. (And that’s without driving it.) For one thing, product overlap. WITHIN SATURN. The Vue 2 [a kill] is the second hybrid system for the SUV, which will now sell alongside (in theory) the existing Saturn “light hybrid,” which was initially introduced as the Vue Green Line. It’s a model/technological distinction that will be completely lost on anyone even remotely resembling a potential customer. So, blissfully married and entirely hetrosexual Alex Nunez, who’s this thing for, then?
Ford truck marketing manager Doug Scott had a little chin wag with Automotive News [sub]. No surprise there, given that the Blue Oval Boyz have just unveiled the new F-150 (recently reviewed on TTAC by our own JB). Nor are Scott’s opening comments about Ford’s full-size pickup startling in any way, shape or manner. Improved access to the bedside (via steps), rear-hinged doors gone because nobody gave a flip about the old version’s flip-out doors, yada yada yada. And then Dougie launches a salvo at The General’s plans to introduce a gas – electric full-size pickup, after the dismal failure of its hybrid full-size SUVs. “It is a publicity stunt,” Doug says, firing the first barrel. “It is no different than what you are seeing with their large SUVs,” he clarifies, loosing the second chamber. Reload. “They are not selling any Tahoe and Yukon hybrids.” Bang. “It’s about something to advertise.” Bang. And now, the knife… “In our case, we chose to have a democratization of technology like EcoBoost. Get more fuel efficiencies out there in mass and volume to as many people as you can, rather than focus all this energy on a very limited application that isn’t going to be really appealing to many people.” So much for that, then.
For some time now, firefighters have warned of the challenge of extinguishing ethanol fires. Because ethanol cannot be piped due to its corrosive properties, large quantities are delivered by tanker truck or rail car. Pure ethanol can burn at a temperature as low as 55 degrees F (12.8 degrees C). Even when highly diluted in water ethanol remains flammable at higher temperatures. Since oceanic quantities of water would be required to extinguish a large ethanol fire, special retardant foams are generally used– but not readily available (= hours) to many fire departments. Even with that foam, a big ethanol fire can take days to extinguish; the holding tank often burns to the ground. (At least pure ethanol burns cleanly, leaving behind just water and carbon dioxide.) A NIMBY situation arose this spring in the heart of highly populated Alexandria, VA. (FYI, that’s communist country per First Brother wannabe Joe McCain.) Ethanol rail cars started offloading their cargo back in April 2008, but local fire departments didn’t get the appropriate flame-retardant foam for another month afterwards. There’s lots of finger pointing going on, with the city of Alexandria blaming rail company Norfolk Southern for slipping ethanol shipment in without notification.
A Shropshire, UK speed camera escaped serious damage last week after a vigilante attempted to set it on fire. The Shropshire Star reports that “A tyre was placed on top of the camera in Dawley Road, Arleston, shortly after 4am and a blanket draped over the top. The arsonists then poured a full can of petrol over the top and set it on fire. Sub-officer Alan Wilson, of Wellington fire station, described it as a ‘deliberate attack.'” Ya think? The plan failed, however, when the fire burned upward without generating enough heat to damage the camera housing. “Fortunately for us [the local fire department], and for those who pay for them [the people caught by the camera?], it went upwards and didn’t damage the speed camera. We think it is still working.” Don’t let the English understatement fool you; Big Brother is mighty miffed. “We would appeal for anyone with information in relation to the incident to come forward.” And no wonder…
Interesting strategy: tell Michigan voters you support the bailout (small “b”) but not THE BAILOUT (big ass “B”). Well, not yet. The position is a nuanced modification of Senator McCain’s previous flip-flop. Regular readers will recall that the presidential candidate was against any bailout to American automakers– before he decided to sacrifice his principles (whatever love is) to appeal to voters inside Motown’s battleground state. The AP [via The Detroit News] reports on Senator McCain’s Detroit dirty dancing on Meet The Press. “Republican presidential nominee John McCain declined Sunday to support an additional $15 billion in funding to help U.S. automakers weather a difficult economic climate but did not rule it out… ‘Let’s get the first $25 billion to them first,’ said McCain, adding that the government could ‘see how that works before we say we’re going to give you some more.'” Right. $25b in no to low-interest loans for “retooling” will save Ford, GM and Chrysler’s bacon. Yes Chrysler. Remember Chrysler? Anway, a refresher: “Obama has also said the loan program should to be doubled to provide $50 billion.” And get this: “The Ann Arbor, Mich.-based Center for Automotive Research has estimated that General Motors Corp., Ford Motor Co. and Chrysler LLC may need a $15 billion bailout to survive the nation’s financial crisis, which has led to sluggish sales and limited the availability of credit for auto loans.” I am astounded that the AP AND The Detroit News would let such an absurd statement go unchallenged. As they BOTH well know, GM is burning through $1b per month. Shame on them.
Forget End of Days. I reckon this is The Beginning of Speculation. The Sunday Times [UK] is pulling rank on the ranks of the autoblogosphere’s recent anonymous attribution afffliction, quoting “senior car-industry sources” for their “story” that FoMoCo is busy selling Volvo to BMW. “Sources close to Ford and BMW said yesterday that there had been preliminary talks between the two automotive giants, although that was denied by the companies. ‘No talks have taken place,’ said a BMW spokesman.” As the non-news spread through the Sunday internet, Ford felt obliged to quash the rumors. Speaking to the Associated Press, Ford spokesman Tom Hoyt said the American automaker wasn’t commenting on speculation about Volvo’s future. Later in the day, he commented, issuing a denial that the Ford was selling their cash-sucking Swedish unit. “To my knowledge, we are not in negotiations with anyone about the future of Volvo,” Hoyt almost clarified.
A TTAC reader writes: “I’d like to suggest a question for the QOTD: ‘What is the most elegant modern car on the market?’ If a person has a lot of money, and could afford any car they’d like, what could they buy that could show intelligence, money, class and taste? What is the modern timeless Talbot Lago? (On the off chance you do use this question, I’d rather not have my name mentioned.) Thanks!”
Recent Comments