For those of you who haven't yet sniggered, many industry observers are skeptical that Chevrolet electric – gas hybrid Volt will meet its publicly declared 2010 showroom target. So that means that Maximum Bob's AP "news flash"— "Automotive industry icon Robert A. Lutz wants to retire from General Motors Corp. after the company brings a plug-in electric car to market"– is unintentionally humorous. As the report inaccurately (accurately?) points out, "The company has set sometime in 2010 as a loose date to roll out the Volt." In advance of this momentous if Camaro-like announcement of the 75-year-old Car Czar's golden parachute unfurlment, the AP plays it both ways: icon worship and realistic assessment. "Lutz, who was hired in September of 2001 to reinvigorate GM's lackluster product designs, is widely credited with a resurgence in GM vehicles after two disastrous years in which it lost market share and more than $12 billion." And then "Still, GM sales are down 6.1 percent for the first 11 months of the year, with car sales dropping 8 percent and truck sales off 4.8 percent from the same period a year ago." But our favorite bit is this: "'You never know about your health. You never know about the needs of the corporation,' he said in his office at the company's design center. 'You never know what the board wants to do, or Rick wants to transition to a younger team. All of those things are possible.'" If Bob doesn't know what the board wants to do, who does?
Category: People
We have it on good authority (from two independent sources, as required by All The President's Men) that Chrysler PR Chief Jason Vines was given the old heave-ho. This morning's Detroit News further substantiates the story. Scribe Eric Morath reports that Chrysler has "realigned" its communications team. They will now report to the head of human resources rather than the chief executive, indicating that their focus will switch from external to internal communications. The News speculates that the move is also designed to plunge the privately owned company into [relative] radio silence– which would suit the outspoken, combative Vines about as well as an actual muzzle. This from Gerald Meyers, the former chairman of AMC and current University of Michigan biz prof: "They're not trying to be public, they're not trying to be popular, they're not trying to be transparent. Private equity work very hard to be opaque and they probably won't miss a PR person who helped put things into black and white." Needless to say, the News ends its report with some positive spin. Mike Szudarek, a partner at Farmington Hills-based public relations firm Marx Layne & Co., sees the silver lining. "I think it's a positive move that breaks down silos and helps integrate internal and external communications." We shall see… Meanwhile, we invite Mr. Vines to contact TTAC when he bails on Auburn Hills in the New Year.
Well, somebody should. Dallas News columnist Chuck Bloom steps into the branding breach left open by FoMoCo's inability to define itself in the marketplace. In fact, Bloom doesn't just know what a Ford is, he's it: a Fat Old Rumpled Democrat. I know: nyuk, nyuk, nyuk. While Bloom's Op Ed raises the now-familiar Chevy Silverado-friendly America-first, look what they done to my factory jobs Ma socio-economic mindset, he distills the argument down to something altogether more interesting. "I have always believed that no man needs to own a Rolex or any other expensive watch in order to tell time. A Bulova or Timex does the same thing at a fraction of the cost. After all, isn't that the 'function' of a watch? Same holds true for being a FORD. My beliefs will get me to where I want to go; no need to own and maintain an expensive, overpriced philosophy. And when the others in this area realize that a FORD works as well, or better, than any BMW, things might get changed for the better." To which we might add, when Ford builds a car that works as well, or better, than a BMW, they'll sell a lot more cars.
BusinessWeek reports that VW board member Ferdinand Piëch is in the crosshairs in the German automaker's sex and bribery scandal. You may recall that VW took a bit of heat when investigators discovered that management had slipped $2.9m in secret payments to VW labor boss and supervisory board member Klaus Volkert. Oh, and $518k to Volkert's Brazilian former lover Adriana Barros. Two years after the initial revelations, Volkert's trial is finally underway, and the union boss is singing like a Kanarienvogel. Volkert's lawyer has produced a smoking gun: a letter signed by Piëch authorizing the illegal payments. The development jibes with claims made by Klaus-Joachim Gebauer, the personnel manager on trial for his part in the crime. Gebauer has already testified that VW's executive board knew about the slush funds, since they triggered monthly reports on budget overruns (filed as "executive board miscellaneous"). Since the scandal first broke, Piëch has denied any knowledge of the pay-offs. It's unlikely VW's largest stockholder will face perjury charges, but not impossible. [thanks to starlightmica for the link]
Last September, German public TV aired a documentary about the Quandt family, the secretive clan that owns 46.6 percent of BMW. The film revealed that Günther Quandt had used slave laborers during WWII and convinced Nazi contacts to send a Belgian competitor to a concentration camp (after he refused to sell his company to Quandt). Responding to the first screening, the Quandt family said they were "profoundly touched" by the movie and promised to employ a historian to examine the family's history during the Third Reich. Spiegel reports that a re-screening last Thursday contains new material. Quandt biographer Rüdiger Jungbluth noted that no family member has ever apologized to the few remaining victims of Quandt's wartime labor camps. Carl-Adolf Soerensen, a former Danish resistance fighter, watched most of his 40 comrades perish at a Quandt factory. Soerensen said it would be easier to die in peace if the Quandts offered some words of regret. "The one time we tried to contact the heirs of Quandt, they were extremely arrogant. And since them, we have heard nothing but silence. They have not even acknowledged that their companies employed slave laborers… I don't need a historian to tell me what happened. Neither do the Quandts. I can meet them and show them what happened in their factory."
"The new Chevrolet Malibu has topped General Motors Corp's sales expectations in its debut month on the market by a wide margin, a senior GM executive told Reuters." Ironically enough given his moniker, this piece of good news arrived courtesy Maximum Bob Lutz. GM's Car Czar revealed that the artist formerly known as the world's largest automaker blew-out its 500-car sales target for the new 'Bu by 2500 units. While the numbers call into question (again) the wisdom of launching a $150m ad campaign for a new car without any "boots on the ground," why that's 300 percent better than [GM's] expectations! Bob reckons this is good news because "most Chevrolet dealers do not have a car because they're selling as fast as they get them." Or, alternatively, GM didn't make enough. And speaking of bad planning… "Lutz said GM had misjudged the relative demand for two new crossover utility vehicles built on the same platform: the Buick Enclave and the Saturn Outlook. 'It just shows you how the best laid plans go awry,' Lutz said. More specifically, "The Saturn Outlook has been a little slower than we expected. I think that's partly because there aren't enough Saturn dealers, and secondly, there isn't the brand awareness for Saturn." Not enough Saturn dealers? Wow.
Nationally syndicated radio talk show host Michael Savage makes no bones about his antipathy towards, uh, well, I better choose my words carefully here. Because no matter what you think about Savage's views on American attitudes and policies towards Muslims, both extremist and otherwise, both here and abroad, one thing's for sure: he's got some extremely well organized opponents. To wit, The Council on American-Islamic Relations (CAIR) has members throughout the U.S. listening in to his show to identify Savage's local advertisers, as part of their ongoing campaign to pressure the show's sponsors to withdraw. Automobile recently published CAIR's most recent press release, which takes AutoZone to task for allowing ads for the chain to appear on The Savage Nation. Apparently, it was a slip-up. A spokesman declared that "AutoZone has a 'Do Not Air' policy against the Michael Savage show and that has been in place for over 6 years now." When TTAC contacted CAIR and asked what automotive-related companies advertise on the program, they named Hyundai, Tom-Tom GPS and GM's OnStar. We'll see if CAIR's campaign forces a retreat…
Speaking to The Detroit News (DTN) at the LA Auto Show, Jim Farley criticized his new employer's history of pouring money into vehicle launches and then leaving the new models to languish in the market without… advertising support. You thought I was going to say "mechanical updates" didn't you? No such luck. While Ford's Toyota-poached multi-million dollar marketing maven (exact salary undisclosed) places a high value on hype advertising, he's doubly sure that "This is a time for us to be really realistic." In the spirit of this new realism, Farley said he wants to ignore/trample upon Ford's Volvo strategy and take Lincoln upmarket, "re-engage" Ford dealers (as opposed to long overdue euthanasia), meddle with product development ("That's where I can help Derrick and his team") and generally scare the **** out of Ford veterans ("What if we paid people if something went wrong with their car? It's an idea"). The DTN ends their "welcome to the club" feature by describing an encounter between Farley and an ex-Ford marketeer. "'There was no process. It was just chaos,' the former member of The Blue Oval Boyz told Farley. 'Now, I wish I'd stayed.'" Be careful what you wish for.
"As Congress makes final decisions on the energy bill, one of the most important decisions to be made is whether or not to implement a more aggressive national renewable fuels standard (RFS). This is a no-brainer… Opponents of the RFS– and we all know who they are– have decided that the best way to avoid one is to smear corn ethanol… This clever campaign is loaded with half-truths and red herrings. Along with misleading claims that ethanol contributes to global warming, or relies too heavily on public subsidies– subsidies which are a rounding error compared to government subsidization of the oil industry– it is often said that ethanol is not produced in a renewable manner or that it increases food prices… The fact that fossil fuels are required to produce ethanol from these renewable feedstocks is a given, because the production of any source of energy requires energy, and the U.S. energy sector is fossil-fuel based. But ethanol producers are increasingly efficient, and some are beginning to co-fire their plants with biomass. Most importantly to me, the feedstocks for biofuels are domestic. No U.S. soldier will ever die defending a cornfield… Government support for corn ethanol is miniscule compared to the $3 billion U.S. taxpayers spend each week fighting wars in the Middle East… Corn ethanol can take us only so far. I look forward to the day when the next generation of biofuels are commercialized and widely available… But to get to tomorrow we need to make pragmatic choices today. That means a strong renewable fuel standard in this year''s energy bill to ensure that the next generation of biofuels becomes a reality."
After GM racked-up a $39b third quarter deficit, BusinessWeek (BW) wants to know if GM CEO Rick Wagoner is finally ready to unfurl his golden, bankruptcy-proof parachute. Their answer: maybe. Clocking the "muted" reaction to GM's latest losses, they attribute Rick's survival to the loyalty of GM's employees and board of bystanders directors. However, BW also notes the status may no longer be quo should the fourth quarter reveal "any more nasty surprises." Perhaps they should also question the longevity of CFO Fritz Henderson. Fritz reacted to GM's arterial spray by dropping such bon mots as "the economic pace and the market are certainly … something we need to be cognizant of." Up with this insight stockholders should put? What of "we're not signaling [their seasonally adjusted selling rate is] worsening or anything, but today it's certainly below trend"? This after GM missed their mark by about a million vehicles in October. In any case, it looks like the mainstream media is– once again– beginning to smell blood in the water.
Well duh. More importantly, why is Michelle Maynard over at The New York Times publicly humiliating Chrysler's CEO for his non-car guyitude? That debate is so last August. OK, so Nardelli made some Home Depot-esque gaffes during his speech to the Magazine Publishers of America conference. Such as “I think a vehicle today has to be your most favorite room under your roof. I really believe that. I mean, it has to bring you gratification, it has to be tranquil. It’s incidental that it gets you from Point A to B, right?” Well no, obviously. But we get the distinct impression that Maynard was, well, picking on Bob. "'An automobile also needs “cup holders — some for water and some for…,' Mr. Nardelli said, but he did not finish that thought." Is the Old Gray Lady (the paper, not Maynard) seriously suggesting that the Chrysler CEO's inability to name any other beverage suitable for a cupholder indicates a lack of pistonhead credentials? The article gives Nardelli's PR handler enough rope to hang himself the last word. "It’s his own spin on it,” Mr. Aberlich said. “It’s good to have that fresh perspective, and he’s bringing that.” Fair enough?
As Ford prepares to jettison Volvo, it's worth noting what could have been. While Volvo's mindspace is mostly occupied by boxy wagons that you can't kill with neglect, road salt or repeated blows with a ball peen hammer, it's important to remember there was brief shining moment when Volvo was drop-dead sexy. I speak here of one model and one model only: the P1800. Wikipedia has plenty of rivet-counting revelations on this certified classic, but the bottom line is that Simon Templar's steed turned out to be an evolutionary dead end (along with an equally doomed and thoroughly hideous mutation called the P1800 ES). Perhaps someone at Ford thought they could add a little P1800 back into the Volvo mix when the company scarfed the Swedes back in '98. Or did they really think Volvo's preppy design language could morph from middle class stolidity to upmarket aphrodisiac? In any case, Irv Gordon bought a P1800 back in the day, piled on the miles and found himself a G-list celebrity in the process. Now that he's retired, Irv's got time to explore the possibilities of his hard-won status. Will someone get this guy an agent? If only "Broadway" Danny Rose was real.
TTAC reader David Robinson worked for Ford’s Talbotville plant in 1972, when he was 19. After five years on the assembly line, he was promoted to a supervisory position. Five years later, when Robinson was laid-off, he returned to school to earn his Manufacturing Technicians papers. Robinson then worked as a Service Advisor in a Ford dealership. (“Ever try to sell an oil change to someone who is pissed off because they just had their car towed in for the 4th time with a blown ignition module?”) His last job: a Production Part Approval Process (PPAP) technician for Siemens VDO Automotive in London, Ontario. In that capacity, Robinson worked with all of The Big 2.8, BMW, Volkswagen and most of the tier one and two suppliers (e.g. Bosch and Denso). He was also the Quality Systems coordinator. His position was “downsized” three years ago. Last week, Robinson listened to our interview with Ford’s Manager of Global Quality Data Systems. He contacted us via email to say “what is happening right now with the big 3 is just fulfilled prophecy.” I called him to discuss his experiences and his insight into the cultural roadblocks blocking Ford’s recovery.
There's something reassuring about talking to employees who work for a really large company. You can almost hear a well-stocked 401k plan in their voice. Now I'm not saying that Ford suffers from the kind of complacency that brought it to the brink in the first (second?) place. But it is certainly true that group think is the enemy of relative quality in all things. So I want to thank Ford for opening a dialogue with TTAC, which is, after all, a mighty hostile environment for an industry used to well-paid cheerleaders and toothless hacks. I invite Ford to continue on this openness arc and allow their employees to post on the Focus review and/or anything else that captures their attention. Of course, we're years away from that kind of non-spun honesty and PR-less transparency. But I'll say this: the first car company that fully embraces the internet in this way will have an enormous advantage over its competitors. And that's down to one simple reason: it will help them build better cars.
Even before I pronounced Ford’s “new” Focus a one-star car, FoMoCo PR had suggested a little tete-a-TTAC with one of their quality guys. Well fair enough. This website is always open to opposing or explanatory viewpoints– especially from the people who make the whips that fill our editorial crosshairs. And so it came to pass that Ford’s Manager of Global Quality Data Systems and I spent a little quality time talking about quality issues. As you might guess from his title, Mike Hardie is a combination data cruncher and messenger, rather than Ass Kicker General. But his dedication to his job is beyond reproach– even if some of the products under his purview aren’t. Part One below, with a special guest appearance by Anne Marie Gattari, Communications Manager for Manufacturing and quality.
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