When Opel needed a a low-cost subcompact for the European market, it did what all good car companies do: rebadged a Suzuki. And thus, the Opel Agila was born. For the latest version of the Agila, which debuted in 2008, Opel opted to let Suzuki build the car itself at its Hungarian plant (alongside the Suzuki SX4 and Fiat Seidici). It also tasked its Managing Director, a man known around the office as “Mr Opel,” with developing the new micro-MPV in partnership with Suzuki. For his trouble, Mr Opel (aka Hans Demant) was then shunted aside by GM, and ended up being poached by VW to head up “international project coordination.” Quite by coincidence (or not), VW’s biggest international project is in building new low-cost small cars with… Suzuki. Automotive News [sub]’s Paul McVeigh notes that
Neither GM or Opel has commented publicly on Demant’s defection to archrivals VW. But executives are said to be very angry in private.
But then, GM could hardly have expected Demant to stick around after having been shuffled off to “intellectual property protection” after nearly 40 years of service to Opel at some of the highest levels. The fact that he’d just been demoted at a time when Opel’s owners in the RenCen were enjoying record-low popularity in Germany made the move all the more likely. And because it’s happened at a time that Opel is struggling for its life makes the move just as damaging to GM as it is a windfall for VW.
Edmund’ Bill Visnic takes on the latest Harbour report, which finds North American auto plants running at an average of 58 percent capacity (even Europe, the global whipping boy for intractable auto overcapacity operates at an average 81 percent). Despite the recent downsizings across North America, the Harbour Report still estimates that 3.5m units of annual overcapacity remains in the US and Canadian auto manufacturing footprint, equivalent to 14 unneeded assembly plants. A rise in sales levels to the previous 15-16m mark could help the situation according to the report, but increased plant flexibility will be the factor that automakers can actually control. Even so, if 15-16m annual units don’t come soon, North America could be looking at more plant closures and job losses.
Since taking office in June, UAW President Bob King has ramped up the rhetoric level at Solidarity Hall considerably, as he seeks to portray the union as a defender of the American middle class. But, as the old adage goes, actions speak louder than words… and King’s actions this week couldn’t paint a clearer picture of the UAW’s priorities. (Read More…)
The Wall Street Journal [sub] reports that after dragging employment down for the last several years, auto manufacturer is back to driving job growth.
Manufacturers added a seasonally adjusted 36,000 jobs in July, and, within that, the motor vehicles and parts industry added 20,700 jobs, the U.S. Labor Department said in its jobs report earlier this month. Since January, that segment has added more than 52,000 jobs, while manufacturing has added 183,000.
Before the recession, the motor vehicles and parts industry tended to lose between 50,000 and 60,000 jobs in July, without adjusting for seasonality. This year, it shed only 15,700, counting the same way.
But to sustain that growth, manufacturers need overall employment to continue growing. And as Wells Fargo analyst David Vitner points out,
manufacturing has come back much stronger than it did in the last two recessions. We had a huge inventory cycle that’s helped the sector, but we’re beginning to see it peter out a little bit.
A few weeks ago, I wrote about how Sergio Marchionne was successful in getting the majority of the unions at his Naples plant to sign a new work agreement. This was supposed to herald in a new era in Italian work practices and pacem in terris. Well, it seems that Fiat wants to press the issue home to the unions. Reuters reports that Fiat is so determined to teach Italian unions at their Pomigliano plant that their working practices are not sustainable, that they are now going to some extreme lengths. Fiat is now going to set up a new company to manage the plant near Naples. Doesn’t sound extreme, right? Well, there’s more. (Read More…)
As much as we web-based types like to smirk at the slow death of the traditional media, the real truth seems to be that, more often than not, the internet is more of a training ground than a final destination. So it is with former TTAC reviewer Jonny Lieberman. Jonny has worked at a number of automotive blogs, including a stint at TTAC that stretched from February of 2006 to January of 2009. After TTAC, Jonny went on to become the Associate Editor at Autoblog, where he primarily focused on road test reviews. Having worked his way to the biggest car blog out there, Jonny’s ambition has taken him beyond the internet to the world of print journalism, and the halls of Motor Trend where he will become Senior Editor. In his farewell piece at Autoblog, Jonny looks back at his time in the autoblogosphere, and notes
I’ve worked at some sites filled with mega-friendly people that weren’t capable of pouring piss from a boot. Other places were hyper-competent and staffed almost totally with assholes.
Anyone want to bet that the second sentence wasn’t written with TTAC at least partially in mind? And though Jonny was never the most confrontational writer at TTAC, we certainly hope that he will bring at least a tiny bit of TTAC’s take-no-prisoners ethos to Motor Trend. Or at least the raw enthusiasm embodied in such TTAC pieces as his Audi RS4 review. Either way, his hiring helps prove that even the buff books are looking to the internet for fresh blood. The autoblogosphere may not replace the print magazines, but it cant help but have a profound effect on it. Hopefully for the better.
The Obama administration went here before, when it tried to quantify how much worse things would have been without its stimulus bill. And considering the task force has enjoyed access to GM and Chrysler’s business plans, it’s surprising that this graph (from the Auto Task Force’s just-released Bailout “report” [PDF]) is based on notoriously iffy BLS data. Instead of projecting how many jobs were saved by Detroit’s $86b life raft, couldn’t the White House have cited GM and Chrysler’s pre-bailout Chapter 11 plans? Or were there pre-bailout bankruptcy plans? Either way, the Task Force’s claim that 56k jobs have been created in Automotive since mid-2009 is a bit hard to swallow given the SIGTARP’s recent finding that
Treasury made a series of decisions [regarding the bailout-era dealer cull] that may have substantially contributed to the accelerated shuttering of thousands of small businesses and thereby potentially adding tens of thousands of workers to the already lengthy unemployment rolls.
By narrowing a broad bailout to just the manufacturing side (the report leaves out dealer cuts and the GMAC rescue), the Task Force is simply defining its way to victory. Besides, the problem is that there’s really no way of knowing what might have happened without last year’s landslide of government sugar. For all we know, Fiat might have bought a bankrupt Chrysler with its own money. GM might have shuttered dying brands and cut its bloated capacity of its own volition. Both might even be in mediocre-to-OK shape right now. The only thing we know for sure is that the auto bailout has been a qualified success at best so far. Luckily for the bailout boosters, it will be years before Treasury fully divests from GM and Chrysler, so there will be plenty of other opportunities to declare victory.
Fiat is determined to drag their Italian operations into the 21st century, says The New York Times. Lacksadaisical attitudes produced some novel ways of shirking work. Some examples include calling sick at Fiat (remember, you get paid in full even if you call sick) and using that time to work another job or faking a doctor’s note. The latter is particularly used when a local football team is playing. Well, no more, according to Marchionne. He wants to impose foreign style work standards to encourage more pride in Italian workers’ jobs and improve the competitiveness of Italian factories. Some have an opposite view. (Read More…)
With Kia’s first US plant pumping out hot-selling new Sorentos, the Korean brand has been desperate to stake its claim to the transplant patriotism that has helped the Japanese automakers rise to dominance in the US market. In this latest ad for the new Sorento, Kia leaves the viewer with no room to doubt where the Sorento is made… and it’s already the second ad to feature Kia’s new West Point, GA factory. So, how does this all play back home in Korea? Hit the jump for the answer… (Read More…)
Many of you don’t know this, but during my days at university, I supplemented my meager grant money (in the days when European governments gave grant money to students) by gambling said grant. The extra money came in useful for text books, science equipment, drinking lager till my head span, etc. The fruit machines and betting on horses was fun enough, but where I really excelled was poker. Texas Hold ’em, to be more accurate. I learnt many of life’s lessons that way, but the one which stuck in my mind the most was this little nugget: “When you play a bluff, be prepared to have that bluff called.” Words which certain Italian unions should have heeded. (Read More…)
Sergio Marchionne’s turnaround of Fiat was a weird one. He turned around a company, which most people thought had died already. Sergio’s turnaround was helped by GM’s unwitting “re-capitalization” of Fiat, too. Recently, worker relations in Italy have been strained, to say the least. If you thought the situation with the UAW in the United States was bad enough, in Italy, things are spicier than Mamma’s Arrabbiata sauce. The Financial Times UK reports that Sergio Marchionne has finally lost patience with unionized Italian workers and has threatened them to change their mindsets or else be out of a job. The end of September is their deadline. Mr Marchionne wants Italy to help drag Fiat (and Chrysler) into one of the top five car companies in the world. But to do that, he needs concessions from his Italian workers. Big ones. (Read More…)
These are the ten vehicles that NHTSA says are made from 90 percent domestically-produced components [via cars.com]. Notice a common thread there? Yes, the correct answer is Ford involvement, but according to cars.com, the task of crowning a “king of domestic content” isn’t as simple as NHTSA’s number.
With a GM IPO in the fourth quarter of this year looking more likely than ever, GM has revealed just how much its top management stands to gain from the automaker’s post-bailout share offering. Based on trading of Motors Liquidation bonds, which GM will convert into stock and warrants, a JP Morgan Chase report pegs the company’s value at $70b. Based on yesterday’s bond trading prices, however, BusinessWeek estimates new GM’s value at $48b. With a float of 500m shares planned, that puts GM’s current stock price at about $96/share. With that in mind, let’s take a quick look at GM’s planned executive stock compensation.
Throughout the bailout bonanza, we were told that the car industry means million of jobs. True enough, before the money was doled out, we learned that auto-related industries employ 3.1 million people around the country. Now, the government is paying big bucks for electric car development. From Tesla all the way to Nissan, the industry is getting $ 25 billions of DOE loans, conditional on the development of advanced vehicle technologies. Which usually means electric cars. What’s wrong with that picture? If successful, it could cost a big chunk of those 3.1 million jobs. (Read More…)
In Japan, the land of the mythical lifetime employment, peaks and valleys in demand are managed with temporary workers. As long as work is there, they work. If demand dries up: “So sorry, your temporary time is up. Ja ne!” During carmageddon times, most if not all of the temporary workers in Japan had been sent home – often to no home at all. The hiring of temporary workers is a closely watched leading indicator in Japan, signaling an uptake in business. The Nikkei [sub] reports that Toyota companies are hiring contract workers again as production is picking up. (Read More…)
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