Editorials

General Motors Death Watch 184: Resignation

By Robert Farago
July 3, 2008 -

Rick Wagoner is a lame duck. No matter how you look at it, it's clear that the failing, flailing CEO must go. Next week, The General's Board of Bystanders will meet to "discuss" the crisis. GM's dividend will disappear, triggering fresh anxiety (and some atta boys) from the financial markets and the media. The Bystanders should push Rick out of the RenCen penthouse, to glide to Aruba on his golden parachute. But they won't. They can't. Wagoner walking would be the final straw: an admission that GM's forked. And before he goes, Wagoner's got one more job to do... 

General Motors Death Watch 184: Resignation editorial continued »

Posted in GM Death Watch | Editorials | 39 comments

Ford’s Déjà Vu Moment, Part 2

By Paul Niedermeyer
July 3, 2008 -

In the nineteen-eighties, Ford CEO Donald E. Petersen's recipe to save Ford from near-bankruptcy was "higher quality products... emphasizing smaller, more efficient cars." It worked, propelling Ford past Chevrolet to world-record profits. Current CEO Allan Mulally is banking on essentially the same ingredients: de-emphasize trucks and rejuvenate the car palette with global platforms largely designed in Europe. Ford's future, perhaps its very existence, is riding on it. Is the recipe still golden?

Ford’s Déjà Vu Moment, Part 2 editorial continued »

Posted in Industry | Editorials | 21 comments

Ford’s Déjà Vu Moment, Part 1

By Paul Niedermeyer
July 1, 2008 -

Oil prices have just hit record highs. Talk of recession is in the air. Ford's line-up of bloated, heavy vehicles is piling-up like cord-wood on the dealer's lots. The only car selling: its "Americanized" global compact. Ford stock is in the toilet and bankruptcy rumors are swirling. The top exec hired a year earlier is intelligent, unassuming and straight-talking. He commits Ford to building "higher quality products with stronger customer appeal... emphasizing smaller, more efficient cars." Ford in 2008? No, it's 1981.

Ford’s Déjà Vu Moment, Part 1 editorial continued »

Posted in Industry | Editorials | 44 comments

Between the Lines: Motor Trend Disses BMW. Ish.

By Robert Farago
June 30, 2008 -

Source Interlink Media owns Motor Trend magazine. Both conglomerate and car mag are heading south, quickly, in a big way. Ad revenues and circulation are in free fall. Motor Trend (MT) is fighting for it survival with glossy pimpatorials for equally doomed advertisers. The August issue features a glossy "special advertising section" for Buick ("Drive Beautiful") and a slick "advertisement" for the Dodge Challenger ("Motor Trend drives the new Dodge Challenger Through Europe"). Meanwhile, the chronically undercapitalized columnist arthur st. antoine takes a whack at a premium car brand: BMW. Huh? 

Between the Lines: Motor Trend Disses BMW. Ish. editorial continued »

Posted in Between the Lines | Media | Editorials | 37 comments

Seven Classics Reissued for Today

By Paul Niedermeyer
June 29, 2008 -

For the third time, a dramatic oil price spike has thrown the auto industry a curve ball. And once again, after years of supersizing, manufacturers are lacking the right-sized, economical products for which the market is desperate. Instead of spending three to five years developing new cars from scratch, it’s time to dust off the best from the past and put them back into production. An air bag here and some updated engines and technology there, and these seven classics are ready to save the day in each of the major categories:

Seven Classics Reissued for Today editorial continued »

Posted in Auto-biography | Sales and Marketing | Editorials | 88 comments

Back in 1783…

By Andrew Dederer
June 28, 2008 -

Back in 1783, Paris was all abuzz with the exploits of the Montgolfier brothers’ balloons. Using a simple bag and a lot of hot air, men (and sheep) were able to fly (or at least float). One of the observers was none other than Ben Franklin, who was fascinated by the display. An onlooker was less impressed “What use is it?” America’s founding dirty-old-man smiled and replied, “Of what use is a newborn baby?"

Back in 1783… editorial continued »

Posted in Green | Editorials | 30 comments

General Motors Death Watch 183: Credit Where Credit’s Due. Or Not.

By Robert Farago
June 26, 2008 -

Earlier today, GM CEO Rick Wagoner told the world that the automaker has “adequate liquidity” until the end of the year. So I guess no one believed him the first time. Ipso facto. Wagoner’s reassurance came on the same day GM’s stock price sank to a forty-year low. The same day Goldman Sachs recommended that investors run for the hills. No surprise, then, that Wagoner felt compelled to go beyond his previous “we’re good” guarantee. "We have a lot of options to fund beyond that," Wagoner soothed. Unless they don’t. In which case, it’s fork sticking time.

General Motors Death Watch 183: Credit Where Credit’s Due. Or Not. editorial continued »

Posted in GM Death Watch | Editorials | 64 comments

PT Cruiser?

By Steven Lang
June 24, 2008 -

$11,800. That’s the price for a 2008 Chrysler PT Cruiser down at my local Chrysler dealer. Throw in the “Refuel America” $2.99 per gallon guarantee into the equation and you end-up with a pre-tax, tag, title price right around $10,200. Not bad. Not bad at all. Then again, is it? There are a lot of factors to consider when approaching any of the bargain basement cars currently on offer during this, Detroit’s [most recent] dark days. Join me as we journey down the PT-shaped rabbit hole…

PT Cruiser? editorial continued »

Posted in Car Buying Tips | Editorials | 60 comments

General Motors Death Watch 182: He Who Owns the Gold

By Robert Farago
June 23, 2008 -

Earlier today, General Motors announced a "temporary" return to zero percent financing. It’s a clear, unavoidable sign that the automaker’s June sales slump is, as predicted, cataclysmic. Staring down the black hole begun on Black Tuesday, GM had to do something, anything to move the metal. And yet, at the same time, GM also revealed it’s raising its prices by 3.5 percent across the board. This second piece of news is equal parts bizarre and revealing. In essence, in the final hand of the poker game for its existence, GM has just doubled down. And now it’s Toyota’s bet. Here’s the thinking…

General Motors Death Watch 182: He Who Owns the Gold editorial continued »

Posted in GM Death Watch | Editorials | 56 comments

In Defense of… Regular Gas

By Michael Martineck
June 23, 2008 -

A guy says he’s stopped using premium gas in his “premium gas required” car because it’s too damn expensive. It’s a joke, right? He’s saving 30 cents now, only to threaten his warranty and pay thousands in repairs later? “Yes” is the easy answer. But the truth about cars can be a funny thing, especially when you add fuel and flames.

With apologies to the chemists, theoretical physicists and tuners out there, here is an octane apercu: octane rating measures knock resistance. It has nothing to do with energy content. Engine knock (or ping) occurs when fuel detonates before the piston is in the right spot. The temperature and pressure in the cylinder cause the fuel-air mixture to detonate prior to the spark.

In Defense of… Regular Gas editorial continued »

Posted in In Defense Of | Editorials | 49 comments