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By on September 27, 2007

1927-kissel-8-75-speedster-1.jpgIs the name of the coffee table tome resting underneath my left elbow. Michael Furman's photographic study of automobiles built from 1925 to 1948 leads with pictures of American models, and it's enough to make an American car lover cry. From the Bentley Blower-like 1927 Kissel 8-75 Speedster to the perfectly proportioned 1932 Lincoln KB Model 248 Convertible Roadster (I'm ignoring the hideous 1940 Lincoln Continental Convertible), the US section features some of the most beautiful and charismatic cars the world had ever seen. As TTAC continues to chronicle Detroit's dissolution, let it be said that we look forward to the flowering of talent that its conclusion will bring. There will come a time when the US once again return to the pinnacle of automotive design and engineering. Count on it.

By on September 27, 2007

115_1521.jpgClearly, nothing about the United Auto Workers (UAW) proposed contract with GM is clear. Until we see the precise details, the agreement's ramifications are unknown and unknowable. Meanwhile, you'd expect the media to hang fire. Yeah right. "For GM, deal is a game changer" proclaims the Globe and Mail. "GM Labor Deal Ushers In New Era for Auto Industry" the Wall Street Journal advises. "Deal gives GM cash to build better cars" predicts The Detroit Free Press. Scanning these Pollyanna prognostications, the Freep provides the greatest insight. Not because I believe a word of Mark Phelan's thesis. Because I don't.

By on September 27, 2007

sos002.jpgIn spite of UAW president Ron Gettelfinger's publicly stated confidence in his members' support for the new GM contract proposal, some of his union brothers and sisters aren't exactly happy with the health care component of the deal. The Soldiers of Solidarity (SoS) has been– and continues to be– opposed to the creation of a  union-controlled VEBA health care superfund. They claim VEBA stands for "Vandalizing Employee Benefits Again." In a statement on the SoS website that would bring tears (of joy) to Walter Reuther's eyes, three former UAW executive board members state "We believe it irresponsible by the parties to this negotiation to shift the burden of risk to the retired workers and their families and release General Motors from its commitment to the full and perpetual coverage of healthcare for the workers who built the wealth of the corporation in the first place." Not surprisingly, they're urging UAW members to vote against the new contract this weekend. If the signing bribes work members ratify the contract, the SoS' next move will most likely be a call for new union leadership.  

By on September 27, 2007

sti_st58.jpgThe International Trade Commission has ruled that Toyota did not pilfer key technology from Solomon Technologies to create the Synergy Drive system used in ToMoCo's hybrids. Solomon CEO Gary G. Brandt is undaunted. "We believe the ITC made serious errors in interpreting the pertinent patent law and precedents in this case and as we have reviewed the case transcripts more fully we are even more convinced that we will eventually prevail." Speaking to TTAC [below] Brandt says his company had "numerous documented meetings" with Toyota prior to the release of the Japanese automaker's hybrid system. What's more, since the Prius was released, Toyota has licensed [what Brandt claims to be] Solomon technology to Ford. The legal action continues. Meanwhile, Solomon has posted an animation on their website highlighting the similarities between the two systems.

By on September 27, 2007

candborder.jpgCTV reports that a class action lawsuit suit filed in Ontario Superior Court claims carmakers and dealers conspired to violate “competition and consumer protection laws.” Lawyer Henry Juroviesky claims US car dealers suppressed cross-border shopping by limiting supply, inflating prices and voiding warranties. In the past, dealers “used the large gap between the Canadian dollar and U.S. greenback to justify the higher prices in Canada,” says Juroviesky. "Now that the dollar is at parity they can't use that cloud… to mask what they're doing.” Meanwhile, a recent study says the problem is going away. "In all of our 'popular' segments… the price gap between Canada and the U.S. narrowed in 2007," says Dennis DesRosiers, President of DesRosiers Automotive Consultants Inc. of Richmond Hill, Ontario.

By on September 27, 2007

image.jpgDetroit Free Press writers Katie Merx and Tim Higgns have reached new heights of hyperbole. After boldly proclaiming "A new U.S. auto industry emerges" because of the new UAW contract with GM, they tone down their rhetoric a bit– but not much. They speculate that the new agreement will make "GM more competitive against its foreign rivals." They also claim the contract has the "potential to shape a new Detroit auto industry that can compete on a more-level playing field with … foreign rivals not burdened by huge retiree legacy costs." But then they temper their enthusiasm by admitting "GM, Ford and Chrysler still face challenges to consistently develop vehicles that resonate with Americans, to slim down their dealer networks and to improve their image on quality." So what's it gonna be– a "more competitive" GM because they now have a "level playing field," or a return to business as usual before the ink is even dry on the contract? Watch this space (General Motors Death Watch 147 later today).

By on September 27, 2007

600x417car-showroom-nv.jpgJ.D. Power and Associates has just released their 2007 Escaped Shopper Study (an APB has been issued). After surveying 31,355 new-vehicle buyers between May and July 2007, J.D.'s mob says that 80 percent of US new car buyers won't cross-shop an import (if they're domestically inclined) or a domestic (if they're a import inclined). That's bad news for The Big 2.8. But it gets worse. The 20 percent of buyers up for grabs "frequently decide against import brands for financial reasons, most often citing that the import didn't offer aggressive rebates or other incentives." In other words, Detroit's fire sales have caught up with them but good; they're high cost producers appealing to a price-focused audience. At the same time, the study says import buyers who reject a domestic model cite "perceived vehicle attribute deficiencies:" concerns for reliability, gas mileage or poor resale value. J.D.'s automotive retail research manager connects the dots. "To win back market share, domestics are faced with two alternatives," Kara Steslicki opines. "Either continue outspending imports on incentives, or find vehicle specific opportunities, such as styling or promoting a positive dealer experience, that can have an immediate impact on consumer perceptions of the brand." Not bloody likely then.

By on September 27, 2007

rs6_crash_sm.jpgAccording to Jacksonville.com, the legislation requiring that Florida drivers carry no-fault personal injury policies (PIP) expires next Monday. Insurers welcome the end of the (PIP) system, which is rife with fraud. Problem: the Florida legislature may attempt to pass a measure that will renew the requirement. If so, insurance companies will need time to re-program their computers, figure out new rates and apply for their approval. Fort Lauderdale Rep Ellyn Bogdanoff sums up the mess: "The companies simply do not have the capacity to turn around in 24 hours." In the meantime, Sam Miller of the Florida Insurance Council has a message for drivers with current PIP policies: "Your contract with the insurance company is not voided by PIP going away." Yes but… Florida drivers who renew or take out a new policy after October first may find that a wreck may leads to a court fight over fault.

By on September 27, 2007

ford-focus-st-s1b.jpgI recently found myself in London working on a large project for an even larger corporation. I took particular interest in the Ford models plying British roads. In contrast to America’s Blue Oval offerings, these Euro-Fords looked clean, modern and, above all, right-sized. And then, bombing around London in a Ford Mondeo estate (station wagon), the chariot’s gentle diesel clatter brought sudden clarity. If Ford hopes to preserve America’s mildewed Mercury brand, Euro-Fords are the way to go.

By on September 26, 2007

image3_1024.jpgAuto Motor und Sport (via Just-auto [sub]) reports that Toyota is withdrawing the Land Cruiser from their Eurozone dealerships after this model year. The move comes as ToMoCo seeks to trim its entire fleet's CO2 averages to 140g per kilometer, as per voluntary European Union (EU) regulations. As the heavyweight SUV wasn't exactly a stellar seller and a new, more environmentally friendly Land Crusher Cruiser is about to debut, it's no biggie. More interestingly, Toyota plans to increase the price of their hot-selling, recently redesigned RAV4 in order to curtail demand– and meet the CO2 target. The changes to Toyota's lineup illustrate the difficulty faced by smaller manufacturers like Porsche, who don't sell low CO2 machines that "average out" their gas guzzlers' emissions. Hence German manufacturers' campaign to get the EU to set CO2 limits based on vehicle size, rather than fleet averages. Just-auto figures that idea's a non-starter. Next question: can a brand under a corporate umbrella (i.e. Volkswagen's Bugatti) rely on the meta-group's high mileage cars to meet the regs? And even if they can, will the detrimental effect on the larger brand encourage the corporate mothership to jettison the CO2-spewing boutique brands?

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