Latest auto news, reviews, editorials, and podcasts

By The Newspaper on November 30, 2008

The Texas Department of Transportation (TxDOT) spends more than $10m a year on public affairs. Using documents obtained under the Freedom of Information Act, the San Antonio Express News found TxDOT assigned 63 employees to the Government and Public Affairs division, at an annual cost of $6.5m. Another 67 employees perform “media relations” duties, at a cost of $4m per year. The employee count does not include private contractors hired as lobbyists paid to wine and dine lawmakers in the hopes of landing earmarks, a controversial tactic that spawned at least one lawsuit. These efforts– indeed, the majority of TxDOT’s PR activities– have been primarily aimed at promoting toll roads. Last year, the agency delivered a report to the Texas legislature entitled “Forward Momentum,” designed to convince federal officials to give TxDOT the authority to toll existing freeways. Massive public protests, most prominently against the Trans-Texas Corridor, forced TxDOT to change tactics. Since May, they’ve backed off from promoting tolling as the solution to Texas’ transportation problems.

By Robert Farago on November 30, 2008

GM’s Board of Bystanders spent a good part of their Sunday reviewing their Chairman (and CEO’s) DC-bound turnaround plan. According to Bloomberg, Rick Wagoner’s new new new new new new new turnaround plan takes two forms: a 10- to 12-page public document and a “private, more detailed plan of about 80 pages with background material.” If the existence of a “private plan” to spend an estimated $12b of your tax money isn’t enough of an outrage– and I’m thinking it is– then ask yourself this: why is this plan different from all other plans? “The largest U.S. automaker also may ask to delay a $7 billion payment to a union retiree health fund, drop more brands and rework an accord with GMAC LLC to prove it can survive and repay the government, said the people, who asked not to be named because details haven’t been presented to Congress.” Don’t you just love fictional anonymous sources who always seem to state what common sense and pundits have already proclaimed? Neither do we. Anyway, as we’ve discussed umpteen times, the UAW’s Mother of All Health Care Plans was a non-starter before it started. GM can’t close brands willy-nilly; the lawsuits would make Oldsmobile’s termination look like a bris. And reworking an Accord is something GM should have done in 1976, not an escape clause fashioned by a terminally ill GMAC. Other than that, they’re good to go. C11. But shhh. Don’t tell that to GM’s Board. They’re thinking they’d better think it out again tomorrow.

By Bertel Schmitt on November 30, 2008

There is a whole lotta bailout going on. More and more people are bailing on lending the Detroit dunces a helping hand. Last to bail: CNN founder Ted Turner. He went on NBC’s Meet The Press and said to Brokaw: “I saw it coming years ago that Detroit was headed for a crash, and it’s amazing to me that they didn’t see it either.”  Ted’s recommendation: “Let them go bankrupt and get Toyota to buy them out.” As if they would. The one who stands firm by the side of the bail bondsmen is United Auto Workers (UAW) boss Ron Gettelfinger. The AP (via MSNBC) reports that Big Ron says the UAW would be “willing to consider more concessions on wages and benefits” to secure a federal bailout. But then again, not so much. “Based on the changes we’ve made to our contracts, we are competitive already.” By the same token (or a different one, I’m not exactly sure), Gettelfinger told CNN that $70-an-hour UAW wages were a “myth.” And Chrysler, Ford and GM should tell Congress they’ll limit corporate pay, bonuses and severance packages in return for bailout bucks. In other words, some pigs are more equal than others.

By Bertel Schmitt on November 30, 2008

This is so, so 2007. Remember the bad old days when a real man wanted a Hummer? Definitely not correct anymore. But in the strictly scientific interest of preserving history – good or bad – here it is. Last year’s ode to the Hummer. A focus group, discussing the merits of the H1 and H2. Warning: Feelings may be offended by pressing PLAY. PG17. STW (Serious Time Waster.) NSFW. But hey, it’s Sunday. And who still has a job anyway?

By Bertel Schmitt on November 30, 2008

Nissan has unleashed a promotional video of its all new Z car – via YouTube. To the soundtrack of Nipponese techno we see inside and outside shots of the 370Z. Exposed to it, the hearts of true Z car zealots may beat a bit faster. “The video itself appears to be for Japanese markets,” says Luxvelocity. Is this a praise, or a cut? We are not sure. But if this is viral marketing, then the spread will remain relatively contained.

By Bertel Schmitt on November 30, 2008

Sunday. Even  while God rests, the devils at TTAC perniciously prowl the news. While America Slept is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Don’t let it ruin your well-deserved week-end.

Deutschland’s dealers found guilty of low car sales: J.D.Power, who’s fighting an uphill battle for the attention of Germany’s auto makers, may just have found the elusive key to their hearts and budgets: “Lack of attention from the salesperson is the most frequently cited non-price-related reason for customer rejection of European premium and volume automotive brands,” Power’s 2008 Germany Automotive Shopper Study says. We see all of Germany’s auto makers write the big checks for the study, and invite J.D.Power to conduct proprietary studies to further prove what auto makers deep in their dark hearts had suspected all along: The downturn is all the dealers’ fault. All dealers need to get fired.

Buick or bust: From the U.K., the Financial Times weighs in on the Detroit debate about D.C. dollar donations: “Congressmen mulling this request might want to visit their local Buick dealership. They should have no trouble finding one, with 2,751 nationwide the last time the National Automobile Dealers Association counted, more than double those selling Toyotas. As a result, only 88 Buicks a year are sold per dealer versus 1,821 for Toyota. Barring Chapter 11, multiple brands and excess dealerships can only be remedied with billions in dealer buy-outs due to state protection, as seen with Oldsmobile.”

Recession? Never heard of it: Honda announced that their production in Japan did set an all-time record for the month of October, The Autochannel reports. Even better, October worldwide production at Honda did set an all-time record for any month. What will they do with all those cars?

(Read More…)

By Richard N. Tilton on November 29, 2008

Speculation is rife that GM plans on shutting down or selling Saab, Pontiac and/or another brand as a prelude to a federal bailout. Common sense and recent history suggest that any such move will create a raft of breach of contract claims by jilted dealers and suppliers. As Oldsmobile’s demise proves, there’s only one possible resolution to the resulting feeding frenzy: cash termination payments. If, however, GM filed for Chapter 11 bankruptcy, these breach of contract claims would become nothing more than unsecured claims– which are resolved within the debtor’s C11 reorganization. The claimants would be legally barred from costly state court litigation. In a stroke, GM would be transformed. How great is that? But wait, there’s more!

By The Newspaper on November 29, 2008

Last week, in south Essex, UK, speed camera protesters set a “scamera” alight with a gasoline-soaked tire. The fire destroyed the £40k ($60k) device on Long Road– despite the camera’s proximity to the Canvey Fire Station (whose inhabitants eventually managed to put out the blaze). According to the Echo newspaper, the incendiary incident follows a prior arson attack on a speed camera on the A127 in Southend. In the past year-and-a-half, eight south Essex speed cameras have been targeted by vandals. Meanwhile, in Queensland, Australia, on November 5, persons or persons unknown spray painted a new laser camera’s lense during testing on the Maroondah Highway in Croydon. Ten days later, three citizens tied a chain to the replacement camera and tore it from the ground.

(Read More…)

By Michael Karesh on November 29, 2008

Over at The Huffington Post, ad man Adam Hanft argues that “Lousy Marketing – Not Lousy Cars – Killed Detroit.” Like most experts (and Buickman), Hanft suffers from blaming the bit he knows best (if you’re a hammer…). But he makes some good points. If Wal-Mart catches flack for paying so little, then why didn’t Detroit seek positive PR for paying too much? More broadly, Detroit’s ads have long been forgettably mediocre (at best) thanks to a stifling creative process. Many ads have targeted an America that no longer exists, if it ever did. Ditto Detroit’s un-fun dealerships. Sure, those for imports have often been at least as bad, but this gave Detroit an opening. Which it failed to take advantage of. Add numerous PR blunders to the mix, along with improving reliability scores, and it’s easy to see why Hanft blames marketing. Except that there’s more to cars than not breaking, and the cars have also had shortcomings. The problem hasn’t been the cars or the marketing. It has been both.

By Robert Farago on November 29, 2008

When USA Today carmudgeon James R. Healey pours hate on a vehicle, you just know it sucks. Healey’s evisceration of the oil-burning Bubba Benz ML320 BlueTec begins with a slam at the powerplant’s herky jerky acceleration, then mentions Merc’s obfuscation: “M-B, in fact, disputes about every gripe. The gripes are serious, so it’s appropriate to give them a word.” And that word is? California compliant. OK, so it’s two words, but at least it wasn’t the two I was expecting (fans of German management culture will know what I mean). Anyway, Healey lets rip in his own not-so-special way, chastising the diesel ML for mediocre mileage (19mpg), terrible ride (”surmounting a branch felt like a major dynamic event”), lagging brakes (”Push, push, push the brake pedal and just when you think something’s amiss, the brakes start to haul it down”), hard seats (”Not firm. Not stiff. Not you’ll-get-used-to-it Teutonic. Hard. Like a board, or slab of concrete”) and sub-par details (”climate control was too hot at 70 degrees, too chilly at 68″). Healey being Healey, the litany is followed by amorous amelioration. But not much. And not for long. “Fifty thousand bucks for an uncomfortable, not-so-classy machine that’s unpleasant and unsatisfying to drive. Wonder who signed off on that business plan?” Jimmy, are you saying that diesel dog won’t hunt? Uh-huh. “Overall: Nope.”

Recent Comments

  • Re: Review: Ford SVT Raptor

    newcarscostalot - It looks nice. I would like to see a head to head comparison against this vehicle and other trucks under contolled conditions to see how it stacks up.
  • Re: Ask The Best And Brightest: MINI or BMW Zero-Series?

    Cammy Corrigan - May I remind people that the 240000 figure is a production figure. They use those units to sell GLOBALLY, not just in the US. Through...
  • Re: SS Is Alive. Should Anyone Care?

    reclusive_in_nature - I think the recent Impala SS is worthy of the moniker (of course I own one). Say what you want about it’s handling or how hard the plastics...
  • Re: Review: Ford SVT Raptor

    reclusive_in_nature - So the vehicle company that isn’t castrating itself to meet CAFE regs is the one domestic company that hasn’t gone tits up. What a shock.
  • Re: Curbside Classic: GM’s Deadly Sin #4 – 1983 Chevy S-10 Blazer

    confused1096 - Very briefly in the ’80s there was a Camaro with a 4-pot under the hood. It barely got out of it’s own...
  • Re: Curbside Classic: GM’s Deadly Sin #4 – 1983 Chevy S-10 Blazer

    confused1096 - My best friend has a very well preserved ‘85 or ‘86. Great little truck for what it was, very well...
  • Re: Ford Invests Big In Brazil

    guyincognito - @ Robert Schwartz, Have you not been in Michigan lately? Most everyone still applies the possessive  to all businesses. I’m going to Miejer’s, I...
  • Re: Review: Ford SVT Raptor

    guyincognito - Seriously? I’m no truck guy, but I still think this vehicle is more in line with the F-150’s mission than a Lightning. Why diminish the advantages of a...
  • Re: Ask The Best And Brightest: MINI or BMW Zero-Series?

    Kendahl - The Mini is so different from the various BMW coupe and sedan models that I have to remind myself that it is built by the same company. I...
  • Re: Review: Ford SVT Raptor

    guyincognito - “Anybody can slap a few shiny shocks on a truck and some fender flares.  This truck is really nothing more than a “ZR2″ F-150.” As someone with...

 


Auto Insurance GPS Navigation
Car Loans Auto Parts
Car Warranty Wheels
Automotive Tires Car Care