Anyone who has never made a mistake has never tried anything new
But the Hebrew University of Jerusalem, which owns the rights to Einstein’s likeness, had this to say about this GMC ad which appeared in People Magazine’s “Sexiest Man Alive” issue:
The tattooed, shirtless image of Dr. Einstein with his underpants on display is not consummate with and causes injury to (the university’s) carefully guarded rights in the image and likeness of the famous scientist, political activist, and humanitarian
According to the Detroit News, the University is suing GM “more than $75,000” for the Leo Burnett-produced ad. GM spokesfolks insist the company purchased the right to use the Einstein image from a “reputable firm.”
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…”?
If you’ve been reading TTAC regularly, you might have noticed that many of us have something of a soft spot for compact pickup trucks. And what started for me as an innate affinity for all forms of cheap, honest, rugged transportation has become full-blown affection on the strength of several months driving a ’92 Toyota with four-cylinders, four-wheel-drive and a manual transmission. Of course, all auto writers struggle with the disconnect between their personal taste and that of the buying public, and cheap full-sized trucks seem to have eliminated all chances of a re-investment in the segment. Ford, for one, has said that it plans on “replacing” its aged Ranger (which dies next year) with Ecoboost-powered F150 options and its Focus hatchback. Dodge, or Ram, or whoever builds the trucks in Auburn Hills is said to be considering an unibody Dakota replacement, but hasn’t made a peep about it in months. Meanwhile, GM is shutting down Canyon/Colorado production at its Shreveport plant by 2012, ending its half-hearted competition in the segment. But, according to Pickuptrucks.com (which is usually one of the best at breaking these kinds of stories), GM is considering a new entry into the otherwise neglected segment.
With Susan Doherty removed to a safe distance from Chevy’s marketing efforts, the “Excellence for Everyone” tagline that emerged during her brief tenure as VP for Marketing is already on its way out. Chevy spokesman Klaus-Peter Martin tells Automotive News [sub]
It’s not something you’re going to see for much longer
As you remember, Susan “If you know what I’m good for, answers on a postcard, please” Docherty got canned from her job of Sales and Marketing of U.S Operations, to make room for Joel Ewanick. Back then, many thought it was only a matter of time before ol’ Doperty (see what I did there?) got the ol’ heave ho from GM CEO Eddie Whitacre. Unfortunately, it seems someone still likes her (again, answers on a postcard, please) and she’s now landed another gig at GM. Only this time, they’ve let her loose on the golden goose (hey, see what I d….never mind). (Read More…)
Any minute, or at least by the end of the month, the Chinese government will reveal super-secret plans to throw serious subsidy money at clean energy cars. The plans have been so secret that the Chinese market from mild hybrids all the way to full plug-ins came to a standstill with everybody waiting for the government to dole out heavy cash. Of course, GM doesn’t want to stand on the sidelines of this bonanza. (Read More…)
Opel has received a new lease on life. Nobody knows how long the lease will last, but Opel is an important step ahead and gained an even more important ally in its beggathon for state aid. Opel cut a deal with its unions, led by labor leader Klaus Franz.
“For much of the past year, Klaus Franz has been a thorn in General Motors Co.’s side,” wrote the Wall Street Journal. Franz “has blamed the European car unit’s troubles on its American parent, saying GM was ‘filled with yes-men’ and that it had a ‘centralized planning system worse than in East Germany.’ Now, GM needs to make nice with Mr. Franz.” With their backs to the wall, GM finally paid the price and made nice. (Read More…)
The Euro and the UK Pound go into a tailspin. Greece requires a bailout. Spain & Portugal could be next on the default list. The economy is in tatters. The car market is shrinking. The government announces spending cuts, on top of people’s reluctance to spend. On this dire backdrop, does it surprise you that workers at the Vauxhall plants (they’re actually Opel plants re-badged “Vauxhall”) have chosen to accept a pay freeze in return for job security? The Times of the UK reports that the 3200+ workers located in the UK are close to agreeing to a 2 year pay freeze. Union officials in the UK believe that the pay freeze is an acceptable hit to take in return for job security. They also believe that when it comes to the union vote, it will be passed through with little complaints. There is of course one slight flaw in the plan…. (Read More…)
When the music finally stopped at Old GM, the UAW’s VEBA fund was left holding a lot of IOUs. On those merits, the union’s benefit trust was given about 17.5 percent of the equity in the bailed-out and re-organized New GM. UAW leadership has always maintained that having its membership’s benefits staked on the company’s financial performance would not change its mission, and that VEBA’s representative on GM’s board, Steve Girsky, would operate free from union influence. And one hopes he would, considering he’s being paid well to advise CEO Ed Whitacre. But the tension between GM’s IPO sprint and the UAW’s non-VEBA interests never goes away, and the Wall Street Journal [sub] is reporting that the latest spat is over the old hobbyhorse of buyouts.
Speaking at a Brookings Institution summit on cities affected by the auto downturn, National Economic Council director Larry Summers said that taxpayers will likely see “most, if not all” of its $42b outstanding “investment” in GM returned when the automaker goes public. According to the Detroit Free Press:
Summers’ comments were backed up by an analyst estimate today that suggested the new GM’s equity could be worth between $75 billion and $78.5 billion – giving the government more than $42 billion for its 60.6% stake.
Obama Administration officials had previously said that taxpayers stand to lose as much as $34b on its bailout of the auto sector, including GM, Chrysler and their finance unit formerly known as GMAC (now called Ally Financial).
GM’s OnStar division is preparing for a big push into new info-tainment and connectivity services, and it’s launching the effort at Google’s I/O conference starting tomorrow. First up is a new Google-maps-based navigation feature for Android phones running the Chevy Volt mobile app, featured in the video above [presser here]. Though this new navigation system won’t be available at launch, but will emerge in a 2.0 version of the Volt mobile app, it hints at a new direction for OnStar, which traditionally markets itself as a safety feature. A senior (anonymous, sorry) source at GM took a moment to explain where this is all heading…. (Read More…)
At the Beijing Auto Show, they had a fine-looking and well-appointed Buick MPV, called the “Business Concept” (shown above.) I gave it no mention. After all, who cares about a concept MPV that will never see the light? Big mistake, Schmitt: It will see the light faster that I thought, namely by the end of the year.
Sadly, my internet came crashing around my ears just as GM’s Q1 results conference call was getting interesting. Typical Monday. I’ll rock myself to sleep tonight with a recording of the call and report back tomorrow, but at this point the big news is plainly visible on this single slide. Yes, GM finally got control of its incentives and wrestled them below the industry average… for a month. That month (March) also just happened to be the worst month this year for GM market-share wise. The next month (April), the incentives went back over the industry average, and market share increased once again. The lesson seems obvious: GM won’t gain market share on promises of high-quality cars and taxpayer payback alone.
When we first heard that GM was eying a return to in-house financing, our first reaction was to worry that
the potential for falling back into old bad habits can’t be ignored.
Clearly our concern wasn’t wasted, as the AP [via Google] reports that The General’s major motivation for considering re-creating a captive lender is to chase subprime business its current major lender won’t touch. And considering that that lender is GM’s bailed-out former captive finance lender GMAC (now Ally Financial), which was badly burned by subprime mortgages, it’s not surprising that GM is frustrated by GMAC’s tentative approach. But should The General charge into the low-standard lending sectors where Ally fears to tread?
Whereas Chrysler’s surprise operating profit in the first quarter of this year was achieved mainly through cost-cutting, GM’s just-announced Q1 profit comes on the strength of sales increases in most of its global markets. Though The General’s sales numbers are still lower than they need to be, momentum is headed in the right direction… albeit somewhat more slowly than had been hoped.
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