Category: Quote of the Day

By on June 14, 2010

Most employers have vigorously opposed unions with every means at their disposal. These pro-employer, anti-union forces continually attack unions and workers that want to form a union…

…Let’s be clear, the contempt for the UAW was so deep that some of them were willing to let the industry collapse in the hopes that they could destroy us. Even the former president recognized the insanity of what they were willing to do.

Ron Gettelfinger fires up the troops in his final address as UAW President, as quoted in the Detroit Free Press. It might have been a moment for reflection and self-examination, but Gettelfinger served up some old-school, union-hall fire-and-brimstone instead. Only Ron didn’t look in the mirror before giving out his enemies’ description. Gettelfinger’s paranoid take on the auto bailout is actually eerily similar to that of the far right wing, in that they both place the UAW at the center of the bailout.

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By on June 11, 2010

Handling [GM’s] IPO assignment is something of a vanity project for the Wall Street banks, given the relatively small fees the banks will earn through the process. One person familiar with the offering said that the banks may earn less than 1% of the overall deal. At a valuation of $10 billion, that would equal a total fee pool of $100 million.

The Wall Street Journal [sub]’s take on the forthcoming GM IPO. Persons anonymous tell The Journal that Morgan Stanley and JPMorganChase are the frontrunners in the vanity project sweepstakes. But as charitable as the one-percent arrangement seems, the Wall Street mavens have their work cut out for them…

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By on June 10, 2010

I understand the economic argument for the off-shoring of production, but I think the practice is reprehensible. U.S. automakers have benefitted greatly from federal largesse and should feel morally compelled to retain and create as many domestic jobs as possible.

As one of the strongest proponents of the Detroit Bailout, Rep John Dingell (D-MI) carries some weight when he makes statements like this. But how can Detroit rise again by ignoring the undeniably strong “economic argument” for outsourcing? In a Bloomberg BusinessWeek feature, Thomas Black shows why production numbers are on the rise in Mexico, and makes the case that the Detroit automakers will only increase their reliance on Mexican production when they are free from government ownership.

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By on June 10, 2010

Yesterday, as predicted by TTAC on many occasions, Germany’s Economics Minister Rainer Brüderle denied state aid for Opel. Even before the announcement, his boss Angela Merkel called a pow-wow of the premiers of the Opel states to find out what can and should be done now. The pow-wow will take place today. Yesterday’s statements by Brüderle and his boss are quite telling. Here they are, unedited (German version courtesy of Automobilwoche [sub], translation by yours truly.) Read More >

By on June 1, 2010

We don’t need an aircraft carrier and “Mission Accomplished” banner, but isn’t it time to agree that the auto rescue has been a success?

Former auto czar-let Steve Rattner picks an unfortunate choice of metaphors to celebrate the possible success of the auto bailout in an op-ed for the Washington Post. Meanwhile, the latest Treasury estimates still show a projected $24.6b loss on the bailout, so yeah, let’s hold off on that carrier-based victory party.

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By on May 28, 2010

As the Dodge brand redefines itself with new lifestyle packages, new ads, events and sponsorships, and a slew of upcoming new products, it’s using its brand name to send a clear message that its “forever young” attitude and performance-driven history will drive the brand into the future.

The new Dodge brand logo features the DODGE name with a pair of red racing stripes relative to the “E,” suggesting speed and agility. Dodge designers sketched the new logo after Dodge and Ram Truck were clearly defined as separate brands with their own identities and consumers, each needing a logo that represents the character of the brand.

The twin red graphic stripes will be used in communications, advertising, internet and merchandising. They will not appear on Dodge products or on the dealership signage.

From a recent Chrysler Group press release. Confused? Yeah, us too.

By on May 26, 2010

This week marked another important step forward for the development of U.S. based automotive battery and electric vehicle manufacturing as Coda Automotive, Nissan and Ford announced plans to build batteries at plants in Ohio, Tennessee and Michigan respectively.

While these facilities only exist as blueprints today, our Brownstown Township battery pack assembly plant has been manufacturing advanced lithium-ion batteries since January, and our Detroit-Hamtramck assembly plant is currently producing pre-production Chevrolet Volts.

GM VP for global product development Jon Lauckner takes a petty swipe at the competition over at chevroletvoltage.com. First of all, Mr Lauckner, taking petty swipes is our job. Back off. Second of all, are you familiar with the adage that begins with “people in glass houses…”?

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By on May 14, 2010

Look at this car, it’s horrible. How did this get through so many people?

We’ve all thought something along these lines when we first sat in a Chevy Cobalt, but few GM employees would ever say it out loud to a reporter. At least they wouldn’t until a much-improved replacement was waiting in the wings. But because the Cruze launches this year, GM execs like VP of global vehicle engineering Karl Stracke can bash on the old Cobalt to his heart’s content, knowing the Detroit News will dutifully report it as a sign that GM “gets it.”

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By on May 11, 2010

Auto bailout mastermind Steve Rattner knows a thing or two about the truth. Just ask his former financial firm, Quadrangle. So, when asked by the Detroit News what he thought of allegations that GM mislead consumers with its “Payback” ad, he pulled a classic out of the thesaurus. The General, said Rattner,

may have slightly elasticized the reality of things.

And this is a real Corvette that went through a special “elasticizing machine” in the factory at Bowling Green, right?

By on May 7, 2010

Bob Lutz may have left GM, but TTAC’s not through with the man of Maximum just yet. One quote in particular, from an “exit interview” with gm-volt.com, exemplifies the kind of candor that seems likely to disappear from GM along with Lutz. Possibly for good reasons. Well, good PR reasons, anyway. After all, with Lutz unable to deny that GM will lose money and/or battle sticker shock with its forthcoming Volt EREV, he’s the kind of guy who will tell the unspeakable truth instead of playing coy like a good PR man. To wit:

How do we get the cost down without in any way diminishing the value of the car in the eyes of the customer? By just doing some more elegant engineering than we did the first time around where we inadvertently did some belt and suspenders stuff because we wanted to move fast. Now as we look back at the car we say ‘gee I wish we’d done his different,’ …’ gee I wish we’d done that different’ because this is a very expensive solution and we could have done that for a lot less money.

That faint sound you just heard was Ed Whitacre expelling fillet of rattlesnake out his nose after reading that little nugget. Meanwhile, you’ve heard it from the horse’s mouth: the Mk.1 Volt will be expensive, unprofitable, and unpolished. Or, to use a PR term, “belt and suspenders.”

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By on April 30, 2010

Nissan does not condone the comments made by this particular employee. While seemingly well-intentioned, many of the remarks are regrettable and do not represent the company’s views. Nissan’s policy regarding internet commentary is that an employee’s personal opinion must be preceded by a disclaimer that identifies their remarks as such and not necessarily the views of the company.

Ruh Roh!

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By on April 29, 2010

Fiat doesn’t need other partners. We have a strong relationship with Chrysler and that is what we are actively working on

Fiat’s new Chairman, John Elkann, told shareholder’s in his family company Exor, exactly what every good, newlywed husband would say. Then again, not every husband had, shall we say, the appetite for partners that pre-Chrysler Fiat had. Just ask GM. Or BMW. Or Tata. Or Sollers. Or Zastava. Or SEAT. Or, you get the picture. Literally.

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By on April 28, 2010

We’re really trying to put together a world-class manufacturing team. We’re trying to create a Spartan army of expertise.

Tesla CEO Elon Musk give Automotive News [sub] his most inspirational metaphor for Tesla’s effort to ready production of its $50k Model S sedan. And though Musk is quick to call outsourced production “wishful thinking,” the vehicle’s transmission and battery cells as well as “wiring harnesses, skeletal mechanisms for the seats, and glass for the windows” will be supplied by outside firms. Musk says that sourcing for 80 percent of the Model S’s components has been narrowed down to one or two companies, and a plant location in Southern California will be announced shortly. But, he notes, the factory deal isn’t done yet. Or, as Musk puts it:

It hasn’t yet been finalized. We’ve almost fully negotiated the deal, but it has not been signed yet

By on April 27, 2010

Deutsche Straßen sind nicht der Nürburgring.

But there I go, quoting German Minister of Transportation Peter Ramsauer out of context, and in the original. Herr Ramsauer’s rebuke comes on news of a late-night crash involving a future Mercedes ML Class prototype, that resulted in the death of a 26-year old man over the weekend. The crash took place on a stretch of non-speed-limited autobahn between Singen and Stuttgart, favored by Mercedes and Porsche for high-speed testing. Apparently the victim had been involved in a minor accident and was trying to exit his vehicle (stalled in the left lane, according to Der Spiegel) when the Mercedes test mule slammed into his car, killing him instantly. The 52-year old test driver is under investigation for negligent homicide.

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By on April 26, 2010

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