You know, it’s getting goddamned hard for a chap to enjoy a decent corporate-sponsored nosebag from time to time what with the ever-imminent prospect of Jack “Banquo” Baruth popping out from behind a silver soup tureen and shouting “J’accuse!” like some sort of admonitory, jort-clad Visigoth. At least, such I was thinking to myself as I lined the walls of my pericardium with the rich yellow fat best produced by overly-sauced food and moderately crappy wines.

This was in the latter stages of a lunch – sorry – launch I was attending in, admittedly, a very unprofessional capacity. I’m still not entirely sure how I ended up here, but I’m one of those people who can’t say no when offered work; here though there would be no byline, and theoretically therefore, no conflict of interest.

Still, I was keeping one eye open, metaphorically-speaking, for our own favourite Sword of Damocles, as – pardon me good sir, but I believe your trotter is in my trough!

Lifer Automotive Journalist the Size of a Small Moon: “Oh, do beg pardon. Snarfle-snarfle-glub.”

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Last year, world car production had jumped 26 percent to 77.8 million units, as it recovered from  a carmageddon-induced slump. This year, global car output will see a “sharp slowdown,” if  The Nikkei [sub] is to be believed. The Tokyo business paper cites IHS and J.D.Power, both expect only 4 percent growth. The Nikkei however should do some chart studies before writing. (Read More…)

The Detroit News reports that the White House has ordered a review of the Department of Energy’s various loan programs in the wake of the Solyndra scandal, noting

White House Chief of Staff William Daley ordered an independent analysis on the state of the Department of Energy’s loan portfolio — including loans to solar, nuclear and auto companies.

“The president is committed to investing in clean energy because he understands that the jobs developing and manufacturing these technologies will either be created here or in other countries,” Daley said.

One of those programs is the so-called “Advanced Technology Vehicle Manufacturing” loan program, which was nearly used to fund the Detroit bailout and has since come under fire from various quarters. Twice already the Government Accountability Office has questioned the ATVM loan program for its lax oversight, weak goals, lack of technical support, inconsistency in awarding loans and the undetermined impact of funded vehicles. And those internal issues could help explain why the Center For Public Integrity has accused the ATVM program of operating a patronage scheme, alleging that major Obama donor and Tesla board member Steve Westly personally benefitted from loans made to the company. And on the Fisker side of things, backer John Doerr of the VC firm KleinerPerkins is another major Obama donor, suggesting a pattern of politically-motivated loan awards to well-connected EV firms that carry high risks. With government intervention in the auto industry still a hot-button issue in the wake of the bailout, this scandal has huge implications for the legitimacy of America’s emerging “industrial policy.”

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Whenever a CEO says “bankruptcy is not an option,” you know the game is up. After complaining in this Swedish Radio interview (in English) that his court-appointed administrator is trying to sell Saab off wholesale to the Chinese, Victor Muller trots out Churchillian and Nietszchian calls to arms… in fact, he does everything short of bursting into a spirited rendition of “I Will Survive.” Unfortunately, Muller’s credibility is long gone, and he doesn’t help himself by trying to portray Lofalk as some traitorous backstabber. With Saab months (years? decades?) into its death-flails, and the most recent “rescuer” turning out to be a non-player, is it any wonder Lofalk wants to hand over the mess to the only viable companies involved (especially when Muller calls North Street a “strong partner”)? Muller continues to labor under two basic delusions: first, that he can sell a majority share to the Chinese while keeping Saab an essentially Swedish (or at least European) company and second, that anyone cares whether Saab becomes a Chinese company. Sorry Victor, there’s just nothing left here to fight for…

When you’re fighting a lost cause, no news can be good news. Which is why a media-distracting scandal involving Swedish Social Democrat Party leader Hakan Juholt has been one of the best things to happen to Saab since… the late 1980s or so. But here at TTAC, we’re always ready to remind our Swedish friends of the futility of human endeavor… a trait they apparently appreciate (see above). And what little news there is coming out of Sweden is bad.
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A University of Michigan study [PDF] shows that, in the 85 years between 1923 and 2008, average on-road fuel economy in the US has improved a mere 3.5 MPG. In fact, the study shows that driving a car is even more energy-intensive (per occupant-mile) than flying on an airplane (3,501 BTU per mile versus 2,931 BTU per mile). Some will blame weak government regulations for this unimpressive result, but the study found that the convenient government scapegoat is not completely to blame.

This report presents information about the effects of decisions that a driver can make to influence on-road fuel economy of light-duty vehicles. These include strategic decisions (vehicle selection and maintenance), tactical decisions (route selection and vehicle load), and operational decisions (driver behavior).

The results indicate that vehicle selection has by far the most dominant effect: The best vehicle currently available for sale in the U.S. is nine times more fuel efficient than the worst vehicle. Nevertheless, the remaining factors that a driver has control over can contribute, in total, to about a 45% reduction in the on-road fuel economy per driver—a magnitude well worth emphasizing. Furthermore, increased efforts should also be directed at increasing vehicle occupancy, which has dropped by 30% from 1960. That drop, by itself, increased the energy intensity of driving per occupant by about 30%

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My fleeting 15:21  minutes of dubious fame.

The Congressional Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending held hearings this week on proposed CAFE standards, as part of Chairman Darryl Issa’s investigation of the regulations. The first panel’s testimony can be seen in its entirety in the video above (all prepared testimony can be found in PDF format here), and it’s worth watching. Though the predictable D.C. partisanship certainly shows up, Anwyl’s testimony was the highlight the hearing, being a tough but fair analysis of the standards. Hit the jump for a brief roundup.
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The Global Automotive Forum is an annual confab of Chinese politicos, functionaries, industry leaders and wonks of the world. This year, it is in Chengdu, and the motto is “From volume leader to innovation leader.” The subhead could very well be: “What now?”

Speaker after speaker bemoans the fact that China is winning by sheer numbers, but is falling behind in the innovation race. The fractionalized Chinese car industry simply does not have the wherewithal to keep up with the big multinationals. (Read More…)

No, it’s not a special-edition 911 with a few extra horsepower and leather-wrapped mirror-adjustment levers. Nor is it a water pipe built to the most exacting standards ever imagined by German engineers. No, Porsche has a freaking palace for sale, Schloss Bullachberg to be precise. Conveniently located in Bavaria’s castle district, near  some of Germany’s most famous castles, Bullachberg was once the seat of the von Thurn und Taxis dynasty… and can now be yours for an undisclosed sum. The Frankfurter Allgemeine Zeitung reports that Porsche bought the property five years ago, for some six million Euros, with plans to turn it into a luxury resort hotel for “kaufkräftig” (literally purchase-powerful) customers and management retreats. Fast forward through one financial crisis and one overambitious attempt to buy Volkswagen, and Porsche has decided to let the property go. But be warned, as the FAZ reports that

only the most necessary work was done on the building’s upkeep.

Now that Ferrari even has its own amusement park (conveniently begun before the financial crisis), there’s no way Porsche will ever match its Italian rival in terms of cross-branded destination tourism. Which is fine. After all, we’re talking about car companies here… right?

Over at CNN Money, Alex Taylor III makes an astute observation about Bill Vlasic’s new book “Once Upon A Car,”

When Hollywood has tried capturing the auto industry on film, it aimed at realistic drama but wound up with suds… What filmmakers have lacked is believable characters and realistic dialogue. Until now, that is, thanks to a new book, Once upon a Car, by veteran Detroit newspaperman Bill Vlasic. Vlasic knows the industry in and out and enjoys near-universal access to its key figures. He recounts a tale filled with shrewd insights into their characters and conflicts told through verbatim accounts of their conversations. It’s the first nonfiction auto book that reads like a screenplay.

This, in a nutshell, is what I found so appealing about Vlasic’s book: it avoids the temptation to turn Detroit’s drama into a morality play, allowing the story to unfold in a personal, organic fashion. In my review of the book, to be published shortly by The Wall Street Journal, I argue that Vlasic’s approach holds a valuable lesson for automotive journalists of all stripes. Taylor, on the other hand, thinks Vlasic’s story is the perfect basis for a movie, and even goes so far as to make some casting suggestions (Al Pacino as Sergio Marchionne, Tom Hanks as Bill Ford, Tom Cruise as Alan Mulally, Sean Connery as Bob Lutz, Tom Wilkinson as Rick Wagoner). We already know there’s an auto industry video game simulation in the works, so I wonder, does the drama of the past few years make the auto industry a worthy subject for a great movie? At least worthier than, say, “The Prince Of Motor City“? If so, would you rather see a historically accurate film based directly on sources like Vlasic’s book, a fictionalized account with real-life characters, or a fictionalized film-à-clef interpretation? Also, wouldn’t Kyle McLaughlin make the better Rick Wagoner? Discuss…

Three years ago I suggested that Detroit win back car buyers by doing something no one seemed to be doing: provide customer care deserving of the name. In a similar vein, Steve Lang recently asked readers whether manufacturers or the government should do more when a model commonly suffers from an expensive problem. Well, according to an article in Automotive News this week GM has strongly encouraged its dealers to pick up the tab on more out-of-warranty repairs to reward and create loyalty.

According to the article, the bottleneck hasn’t been GM—the customer care money has been there, but dealers have been too tight with it because of fears that GM would punish them if they spent it. Why did dealers have these fears in the first place? The article doesn’t say. The important thing isn’t how these fears came to exist, but that they’re currently unwarranted. One dealer calls the new “open pocketbook” approach to keeping customers happy a “seismic shift.” Problem solved?

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Remember the video of Volkswagen CEO Martin Winterkorn testing the quality of the new Hyundai i30? Thanks to Autobild, we’ve found a companion video from the Frankfurt Show, in which Winterkorn, along with VW Chairman Ferdinand Piech, gives the once-over to the new European-market Honda Civic. According to Autobild, Piech kept his nickname “Fugen-Ferdi” (Gap-Ferdi) relevant by checking the new Civic’s panel gaps. And, in contrast to the Hyundai video, the intelligible portions of Winterkorn’s commentary were less than entirely complimentary. The German magazine reports

A member of the VW entourage says that “(Honda) has had good role models.” But the big boss played down the praise for VW with a smile, and responded generously “they were once a role model for us.”

Note the use of the past tense, then contrast with Winterkorn’s reaction to the Hyundai. In just two videos you can see the balance of automotive power shifting…

Whenever our man in Brazil, Marcello DeVasconcellos reports on new model introductions in his home country, TTAC’s American audience is consistently blown away by the prices commanded by new cars there. Once, when asked why a new VW Amarok costs the equivalent of about $66,000 US dollars in Brazil, Marcello replied

Besides the very high taxes, there are the very, very healthy margins car makers practice down here.

Perhaps too healthy.

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Considering the United Auto Workers’ VEBA fund is still Chrysler’s second-largest shareholder, CEO Sergio Marchionne is taking an amazingly hard line with the union. With a GM deal long done, and Ford’s deal moving towards approval, Chrysler is the last automaker on the UAW’s to-do list… and Marchionne tells Bloomberg he’s up for a fight if necessary, saying

I sincerely hope that we don’t have to get to arbitration. But if necessary, Chrysler will go there. We and GM are completely different

Marchionne is reportedly pushing the UAW for a number of tough concessions, including a mere $3,500 signing bonus (compared to $5k at GM and a reported $6k at Ford), and the elimination of a planned 2015 cap on entry-level “Tier Two” workers (at 25%). And though both of these are tough asks, he’s using UAW boss Bob King’s concept of union internationalism as a cudgel against the UAW, playing Italian unions off their American counterparts. And as a result, he could earn Chrysler a favored place among America’s unionized autoworkers.
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