The new Delorean Motor Company is apparently exploring the possibility of buying GM’s Wilmington Kappa plant and building a Pontiac Solstice GXP-based sportscar there. The firm released the rendering above, and the following post via Facebook:
What if John DeLorean were still alive? Some of his greatest automotive accomplishments were at Pontiac, and now the Solstice is a new car without a brand, and DeLorean is brand without a new car…
As a former car salesman, I can tell you that relations between the front line troops and management is usually no better—often much worse—than the relationship between the dealership and its customers. To wit, this email just in:
I used to work at —– Toyota in —–. My friends working there told me that during cash for clunkers, —– cut the sales commisions on the cash for clunkers deals by “packing” the gross of the deal with a bogus internal charge to screw the sales reps out of money. Pretty pathetic. The dealers get a bailout, raise the prices on cars to the consumer, and cut the salesmans commission. You might see if this was an industry practice. PS. I work for CARMAX now and I love it. It’s like car sales heaven. Tom
Buick dealers are telling us supplies of the ballyhooed mid-launch 2010 LaCrosse have slowed to a trickle. In fact, several dealers report they’re out of stock. Needless to say, waiting on the first hypeworthy Buick in ages isn’t putting them in a good mood. Nor are the problems rumored to be causing the delays; it seems initial reports of electrical problems may be true despite GM’s denial. We are hearing dark mutterings of weird malfunctions. Specifically, opening a door while the hood is popped causes the dashboard to light up like a Christmas tree. You’d think that with “only” four brands, GM could get a potentially brand-rescuing product launch right. Or at the very least get the story straight. We done a ‘ring ’round’ to check on supplies, and we can smell the napalm in the morning on this one . . .
When Christian von Koenigsegg announced he’d cut a deal between Koenigsegg Group (KG) and GM to buy Saab, he also “hinted” that the Swedish government would contribute to the deal. Since then there’s been a lot of speculation about whether KG has access to enough cash to gain control of New GM’s deathbed-dwelling subdivision. At the same time, analysts have wondered if Saab has enough money to keep the lights on until the deal goes down. Saab’s suppliers have demanded clarifications from KG/GM before delivering parts. Yesterday’s reports that Koenigsegg’s partner in their solar-powered EV project (Swiss company NLV Solar) is facing lawsuits for fraud did nothing to reassure skittish fans of a KG-run Saab. Today’s news offers some respite. According to Industry Daily [via Swedish Wire], Koenigsegg Group has secured enough funds to qualify for a Swedish government-guaranteed loan at the European investment Bank. The source of this much-needed financial infusion? Unnamed sources finger unnamed new investors that include . . . wait for it . . . GM. US taxpayers to the rädda, again?
A tipster writes:
Long-time reader here. I’m sure you hate anonymous tips as much as the next internet pontificator, but I’m gonna throw one your way anyway. You noted a few days ago that some NUMMI capacity could potentially move to the Blue Springs, MS, plant. The word here in Tupelo is that equipment has been quietly moving into the facility at night for the last few days. Supposedly, they’re trying it out to see if they can make use of the place. NUMMI would make a logical source of that equipment if the rumor is true. I’m not much of a 2am spy run type of guy, so I’m afraid rumor is all I have to go on.
I received this report of a delayed showroom arrival for the new Buick LaCrosse. “Hi my folks are interested in the new 2010 Buick LaCrosse. What an outstanding looking vehicle from Buick/GM. My father called the dealership and they said that the new LaCrosse was shipped then pulled back by Buick. Any news on why? Thanks! Michael” I contacted one of our tipsters. Apparently, “The BCM and ECM aren’t communicating properly. Pop the hood, tinker with something and have someone open the door at the same time and BINGO you’ve got trouble codes galore. You have to go to the dealer to clear them—and that wipes out all memory systems. GM’s having major meetings trying to sort it out. They may have to rewire the platform.”
AutoExtremist Peter DeLorenzo is an asshole. Just kidding. Somehow, the carmudgeon got it into his head that TTAC (a.k.a. TIC-TAC) called him an asshole. Did we call him an asshole? Of course we didn’t call him an asshole. We don’t call anyone an asshole. Delusional, sure. Misguided? Oh yeah, we’ve called people misguided. Pietro too. But calling someone an asshole is a perfect example of what the Brits call “using a sledgehammer to open a walnut.” It shows no style, no finesse, no class. Two out of three ain’t bad, as we Yanks are wont to say. I mention all this because Sweet Pete is launching the rumor (picked up by Autoblog) that Chrysler will launch a fourth US brand called Ram. Obviously, that makes no sense whatsoever—which is why the AutoExtremist offers no explanatory justification and Autoblog sucks away the oxygen of publicity even as it wheels-in Peter’s tank (couldn’t resist).
I’ve just received this email from a reputable member of our Best and Brightest. I will attempt to contact Fisker today for the official take.
| Date: 7/13/2009 Subject: XXXX Company Inquiry Hi XXX, Is XXXX [name of my company] looking for any program manager or engineering help? The Fisker Hybrid project is in deep financial trouble and I was let go last week. I’ve had enough of automotive and would really like to break into another industry. If you know of anything please pass it along or I can forward a resume. Regards, |
On Friday evening, a wild rumor whirred via the wires. It started at Germany’s usually well informed Manager Magazin, then spread to Reuters and Bloomberg: Daimler may be taking a stake in its Stuttgart neighbor, Porsche. Through Porsche, Daimler would own a part of Volkswagen.
Read More >
TTAC has it on good authority (without independent confirmation) that GM is moving forward with plans to import 30,000 Zeta-platformed Holdens per year from Australia to sell to US police agencies. Our source is not privy to the whys and wherefores. “I’m not sure why they don’t use existing capacity at the Camaro plant in Canada,” our source admits. “I can only assume GM needed to somehow replace the G8 capacity.” By the same token, he “can’t imagine this will make the federal government or taxpayers too happy.” Unless, tin foil hat wearers, the feds already knew, as this G8 invasion was part of the 17,205 “domestic” vehicles ordered under the auspices of the economic stimulus package. US jobs? Nuh-uh.
I recently received an email from former Saab blog owner, current Saab blogger and past TTAC contributor, Steven Wade. Mr. Wade wants to know who TTAC’s Best and Brightest would like to see taking over Saab in the future. He also asked me to ask you who you think WILL take over Saab in the future. [Answers below please.] As part of our exchange, I teased Mr. Wade into admitting he was wrong to disparage me for disparaging GM’s pre-C11 turnaround plans. But don’t get to thinking Wade is ready for his Cassandra Watch. Oh no, far from it. In his most recent entry on Saabs United, Wade put his imprimatur on a wild ass rumor of Olympian proportions. Swedish newspaper Expressen suggests that GM CEO Fritz Henderson is reluctant to sell Saab to, uh, anyone because the new 9-5 is so good he’s afraid it will compete with post-C11 GM’s offerings. Apparently.
A TTAC source has pinged us: “‘I’ve just heard 2nd hand that the Delphi OnStar team has had all their GM contracts canceled. It seems that GM may be getting rid of OnStar completely, but it isn’t clear when that would happen. This sounds like a pretty good business decision to me since cell phones have become so widely adopted, and navigation systems are getting cheaper.” This tip flies in the face of a recent Reuters report, in which the head of said OnStar claimed the service was wildly profitable. OK, “highly.” Which is the same as “wildly,” given GM’s current slide into C11. Anyway, “GM does not break out its revenue or profits from OnStar, but had said the division had turned profitable in 2003 and has been steadily and more profitable since. The division receives part of its revenues from consumer subscription fees.” One possible explanation (just in): GM is simply “de-sourcing” Delphi as OnStar supplier, as it prepares to deep-six the bankrupt parts-maker’s contracts. Or something. But wait! More tipster action from an ex-OnStar employee after the jump.
Bloomberg reports that Renault/Nissan is looking at partnering with Penske Automotive Group to make a bid for the Saturn dealer net, according to “people familiar with the matter.” Nissan wants to use more of its North American capacity to build Saturn-branded vehicles based on either Nissan or Renault products. Penske would distribute the vehicles through existing Saturn dealers, using its “plug and play” model already in use with Smart dealerships. In this arrangement, Smart takes customer orders and deposits via a Web site, allowing dealers to keep fewer cars in inventory. Would this work with a larger model line? Does Nissan/Renault really want to compete with itself? Does GM really have another month to solicit offers (as it plans to) for Saturn? Will those offers improve over the next month? Er, maybe, apparently, no and definitely no. Still, if Penske and Nissan want to pull the trigger, it’s hard to see how GM could say no. And maybe, just maybe, Saturn could once again become America’s most innovative dealer network.
“Insane like a fox,” you’re thinking. And yes, the Fiat CEO is set to receive “good Chrysler” with a taxpayer-funded bow on top. He also has his eyes on Opel, which the German government is desperate to find a good home for. But lightning still hasn’t actually struck once yet, and may we remind you once again that Fiat is in not-great shape financially. And yet Marchionne, mad with power, turns his eyes towards China. And South America. And Russia. In fact, according to the industry analysts Bloomberg talks to, Fiat is like communism in the 50s: everywhere, especially right behind you. You see, Marchionne “craves” 5 million annual global sales even though Fiat sold only 2.15 million cars last year. Reportedly the Chrysler deal will bring the Fiat empire to 4m sales (lets wait for those chickens to hatch, shall we?) and adding any one of GM’s global divisions (Opel, Latin America, Asia/Pacific) would take it over the 5 million mark. For Marchionne the only challenge is figuring out which ones he can pick up for free.
We’ve already heard the President call out the “hedge fund holdouts,” and we’ve heard reports of “death threats,” but rumors that the PTFOA’s Steve Rattner threatened to “destroy the reputations” of holdout bondholders is the juiciest rumor we’ve heard over the last several wild-ass days. On Friday, bondholder lawyer Tom Lauria told Detroit talk show host Frank Beckman that the White House was taking off the gloves.
Recent Comments