Uh-oh: The price of doing car business in Germany is heading up, increasing pressure especially on Opel. “Germany’s IG Metall union may push a pay claim between 5 and 6.5 percent for about 100,000 workers at VW’s six western German factories” Bernd Osterloh, head of VW’s works council told Reuters today. What does this have to do with Opel, you say? (Read More…)
NOTE: I received the following email from Saab Automobile Parts North America. As I was not aware of the recent details behind Saab’s parts/service operation (my bad) I felt obligated to share this, unedited, with everyone. – SM
Sajeev,
We read, with great interest, your latest Piston Slap post and the many comments in response to “The Last Saab = good Deal?” We wanted to take this opportunity to let you know about Saab Automobile Parts North America, the exclusive authorized provider of Saab Genuine Parts in North America. Venues like yours help us to get the message out that Saab Genuine Parts and Service are available. (Read More…)
Germany’s metal worker union IG Metall proposed a new plan yesterday to solve the overcapacity at Opel without undue grief on its members: The union will agree to the closure of Opel’s Bochum plant, if Opel guarantees that no hobs will be lost until 2018. Reuters takes that as a tacit warming up to the inevitable, while demanding the seemingly impossible. (Read More…)
What’s 10 million these days – give the man a raise!
Up until the mid-1800s, debtor’s prison did await those who could not pay their debts. To this day, more than a third of U.S. states allow debtors to be jailed for non-payment. If you run a company called GM, Ally, or AIG, not only do you keep your freedom, you will be bailed out by the government, and given a $10 million salary. Waitaminute, you say, aren’t executive salaries of bailed-out companies limited to a still very generous $500,000? This is exactly the question the special inspector general for the Troubled Assets Relief Program asked. The answer, provided in a report to Treasury Tim Geithner, and the public, is scathing: The Treasury Department ignored its own rules and approved “excessive pay packages” for the leaders of bailed-out companies. (Read More…)
GM’s CEO Dan Akerson gave an interview to Norihiko Shirouzu, one of the best men in Reuters’ impressive stable of automotive writers. Akerson disclosed two very scary pieces of information:
As usual at this time of the month, Toyota released full month sales and production figures for the preceding month, and as usual in January, the numbers are for the full calendar year. Readers of TTAC will not be surprised by the data, a look forward into 2013 however can get quite exciting. Or unnerving. The podium of the World’s Largest Automakers promises to be in disarray in 2013. (Read More…)
Industrial-strength theater
Yesterday evening, while yours truly was in seedy Tokyo bars, rubbing shoulders and more with paid informants, word reached us that Opel’s new sales chief Alfred Rieck allegedly threw-in the towel and left Opel in disgust, after only seven months of valiantly trying to move the damaged goods called Opel cars. After a few phone calls to Germany this morning, a different story emerged. Siehe unten. (Read More…)
Selim Bingol, GM’s PR bigshot, may not “negotiate with terrorists”, but he nearly wound up working for a terrorist sympathizer who was active on terrorist message boards: Bingol’s former client Ed Whitacre recommended the man as GM’s next leader.
GM’s North American president, Mark Reuss, was in the running as CEO in 2010, but was passed-over for an alleged “lack of seasoning,” says Reuters after reading an upcoming book by GM’s former CEO, Ed Whitacre. Instead of Reuss, who had shown that he knows what he is doing, a completely unseasoned Dan Akerson was put at the helm of GM.
According to the book, Whitacre recommended Reuss as his replacement when Whitacre stepped down after the bailout. Whitacre writes:
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Separated at birth
We are in receipt of complaints that question our assertion that former Volkswagen executive and future Opel CEO Karl-Thomas Neumann “looks like an ostrich.”
Recently released documents show that he indeed does.
Go get them, tiger!
So far, Steve Girsky, dispatched on a mission impossible to Deutschland to clean up Opel, has been dancing like a butterfly, no stinging involved. Apart from targeted leaks, and an announcement to stop making cars in Opel’s Bochum plant after 2016, which really did not surprise anyone, there were no big dispatches about the heroics of Steve the hatchet man, who was sent to the Old Country to stick it to the socialist metalworker Nazis. Today, and most likely after increasingly impatient prodding from Detroit, Steve took his gloves off, and a swing at some 20,000 unionized workers in Germany.
The cost of doing business in Canada may be high for auto makers, but that isn’t stopping GM from looking to re-negotiate their contract with the CAW nearly a year in advance as a means of keeping production of the Chevrolet Equinox and GMC Terrain at the CAMI plant in Ontario.
The minor model change for the Chevrolet Malibu will be more than just a Honda Civic-style refresh. Chevrolet will apparently address the cramped rear seating area as part of the overhaul.
At the sidelines of the Detroit Motor Show, GM conceded what we had said all along: Toyota is the world’s largest Automaker again, with GM in #2, and – surprise – Volkswagen right behind GM.
After Toyota had announced, on a preliminary basis, that they had produced 9.92 million units in 2012, and sold 9.7 million, Volkswagen announced on Monday global deliveries of 9.1 million for the year. We expected GM to announce, as usual, when they surrender the report for their last quarter.
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Obsessive-weirdo fans of low-cost cars can get their thrills at Chevy’s NAIAS stand; despite the new full-size trucks and the C7 Corvette being on display, myself and a cadre of mouth breathers will no doubt be poring over the low-cost cars being put on display by the Bowtie brand, for no other reason than to avoid the rush of anxiety-inducing crowds.
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