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By
Bertel Schmitt on February 28, 2013

If you think that GM will get a handle on its abundant capacity problems in Europe – abandon all hope. Or rather: Postpone hope for until after 2016, or maybe later. Also, write off any expectations that Steve Girksy would successfully play hardball with German Metalworker Unions. Deadball is more likely. With the decision to move the production of Opel’s Astra volume model from Rüsselsheim to Ellesmere Port, and to shift production from Bochum to Rüsselsheim, the fate of the Bochum plant appeared to be sealed.
German unions declared war. Minutes ago, Opel works council chief Wolfgang Schäfer-Klug announced “an armistice” (Das Handelsblatt) and told German media that Opel will continue making cars in Bochum through 2016. Nobody can be fired, no plants can be closed at Opel until January 1, 2017. Even then, Bochum will remain open. (Read More…)
By
Bertel Schmitt on February 28, 2013

The UAW has been a bit luckless in its organizing efforts of foreign automakers in the U.S. Recent attempts to brand transplanted Asian and German automakers as human rights abusers have gone a bit over the heads of the targeted working masses. With that being a dud, the UAW is back to old-style organizing, and back at its old target, Nissan. The UAW has tried two times, two times it received a black eye in Smyrna, TN. The UAW is back to collect another shiner. (Read More…)
By
Bertel Schmitt on February 27, 2013

Contrary to lore, American cars are a hot export product that is in high demand abroad – as long as there are foreign badges on the Made in America cars. For the first time, Toyota will ship U.S.-made Venza to Russia and China, says The Nikkei [sub]. (Read More…)
By
Bertel Schmitt on February 27, 2013

Yesterday, the House Oversight and Government Reform subcommittee held a hearing to look into executive compensation “at bailed-out firms that is egregiously out of line with what the President committed to the American people,” as Chairman Jim Jordan said. Jordan recalled that the President had committed “that top executives at firms that receive extraordinary help from U.S. tax payers will have their compensation capped at half a million dollars.” That clearly wasn’t the truth. Yesterday, we heard that GM CEO Dan Akerson, for example, made $9 million in 2012 and wanted $11.1 this year. Jordan said that “Treasury’s failure to protect tax payers is part of a disturbing pattern in which this administration makes promises to the public but the does not live up to them.” That’s not the only pattern that is disturbing. (Read More…)
By
Bertel Schmitt on February 27, 2013

BMW executes on its plan to bring at least one new MINI to every show it graces. In Geneva, it is the MINI John Cooper Works Paceman, a.k.a. the MINI with the maxi name. If we believe the press release, the car “combines mouthwatering sporting flair and inimitable style to usher in a new dimension in driving fun.”
What’s more, “the new model sees the compact Sports Activity Coupé concept wrapped up in an extra layer of muscular proportions and dynamically stretched lines.”wait, there’s … (Read More…)
By
Bertel Schmitt on February 27, 2013

Toyota released global sales and production numbers for January 2013 today. Toyota is making good on its plans to catch its breath after a breakneck race back to the top of the pile. Toyota said its 2013 production would be flat, and flat it was with an 0.3 percent gain over January 2012. Let’s have a look at the other contenders. (Read More…)
By
Bertel Schmitt on February 26, 2013

When I helped Volkswagen launch its Golf GTI in 1976, Volkswagen wanted to make only 5,000. They wanted to make even less, actually, but 5,000 were needed for homologation as a racer. Volkswagen was convinced that no mentally stable person would be nuts enough to buy a little car like that with a 110 hp engine. Boy were they ever wrong. It took well into the 80’s for the Golf GTI to come to America. When I said “Americans love muscle cars,” the answer was: “Haven’t you heard? 55 miles an hour.” Wrong again. Today, Volkswagen shows the seventh generation of the archetypical hot hatch. at the Geneva International Motor Show.
(Read More…)
By
Bertel Schmitt on February 26, 2013

BMW has its M-series, Mercedes has its AMG, Audi has its R. Now, Nissan has its NISMO. Like most in-house speed shops, NISMO has its roots in a factory racing department. “NISMO is the first true performance brand of Japan’s major makers,” as Nissan’s marketing chief Simon Sproule tells me at NISMO’s new headquarters in Tsurumi, near Yokohama, today. “The others are only playing around.” (Read More…)
By
Bertel Schmitt on February 26, 2013

Yesterday, we wrote about Susan Docherty’s grand strategy for Cadillac: Make Cadillac great in Europe to convince the Chinese to buy Cadillac. Clever strategy. But what if it fails in Europe? Trust me, its European failure is assured. In the meantime, the story has landed in Europe. Germany’s premiere car dealer magazine Der Kfz-Betrieb runs with the story today (with a nice shout-out to TTAC, Danke.)
The experts at Der KFz-Betrieb give the grand Cadillac strategy only passing mention and recommend to check with TTAC if someone wants an assessment. What the magazine is most interested in are Docherty’s comments about the “lackluster performance of Chevrolet in Europe.” (Read More…)
By
Bertel Schmitt on February 26, 2013

Tesla CEO Elon Musk found the perfect scapegoat for lost Tesla sales and a 13 percent drop of the company’s stock: John Broder of the New York Times. Musk told Reuters that “Tesla has lost about $100 million in sales and canceled orders due to the Times story, which said the sedan ran out of battery power sooner than promised during a chilly winter test drive from Washington D.C. to Boston.” Musk should look in the mirror if he needs a scape goat. (Read More…)
By
Bertel Schmitt on February 26, 2013

GM’s CEO Dan Akerson asked for a big raise. He thinks his work at GM is worth a paycheck of $11.1 million this year, up 20 percent from last year, Reuters reports, citing documents. The embarrassing part: Akerson and GM have to ask its white House sugar daddy for approval.
As part of GM’s government-funded bailout, the salaries of GM executives must be authorized by a special paymaster from the federal government. The request for a raise comes at an inopportune time. (Read More…)
By
Bertel Schmitt on February 25, 2013

Wake up, little Susan, wake up
Uh-oh: Susan Docherty, dispatched from China to Europe to teach the Eurotrash the proper appreciation and respect for Chevrolet and Cadillac, has come up with a strategy that assures the destruction of Cadillac outside of the U.S. Cadillac’s global aspirations hinge on its success in Europe, Docherty told WardsAuto. Again: To be successful in China, Cadillac must first be successful in Europe. No blond jokes please, show some respect. (Read More…)
By
Bertel Schmitt on February 25, 2013

By Thursday, GM wants to have a definite deal with the Opel unions at least that’s the deadline Steve Girsky has set. The parties are further apart than Dems and Reps over the sequester. Steve Girsky wanted the unions to agree that Opel’s toolmaking, prototype building and central production planning will be outsourced, or moved to GM’s plant in Gliwice, Poland, Der Spiegel says. The unions are rightly horrified. (Read More…)
By
Bertel Schmitt on February 25, 2013

Check her rear
Not only will GM’s OnStar switch from the allegedly ultra-reliable and most dense Verizon network to the allegedly not-so reliable and not-so-dense AT &T network, as Reuters reports. It will also “make each of its cars an Internet hotspot with a high-speed broadband connection,” as Automotive News has it. (Read More…)
By
Bertel Schmitt on February 25, 2013

“Dieter Zetsche is lucky that he can stay for three more years,” writes Der Spiegel in Germany. The labor side of Daimler’s Supervisory Board had demanded Dr. Z’s head, the magazine writes. After long debates with Daimler’s Supervisory Board Chairman Manfred Bischoff, a compromise was found. (Read More…)
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