The Truth About Cars » Between the Lines

Editorial: Between the Lines: GM BOD Chairman Ed Whitacre’s “Satisfaction Guaranteed” Ad

Robert Farago — Thu, 10 Sep 2009 23:56:28 +0000

First of all, I don't have the embed code for this ad. For some reason, GM hasn't sent it to TTAC and it's not on YouTube. To see the ad, click over to Autoblog. Second, New GM Chairman of the Board Ed Whitacre should never have done this ad. GM's single biggest problem, the one that trumps everything: their insular culture. By fronting this spot, Whitacre has become part of the problem. He's crossed the line from gamekeeper to poacher. He's lost his independent observer/taxpayers' guardian status; he can no longer distance himself from the Lutzes and yutzes who animate the GM zombie. Whitacre's now "one of the boys." Third, the actual text of this ad [parsed after the jump] misses the boat.

Editorial: Between the Lines: Detroit News: Ford Gets Its Sexy Back

Robert Farago — Sun, 16 Aug 2009 12:32:56 +0000

I've been harping on about the media's "Ford didn't take bailout bucks" meme for some time. Commentators have slated me for slating the Blue Oval Boyz for claiming they avoided the taxpayer trough. In fact, Ford raided the public purse to the tune of $5.9 billion dollars. Yes, it's a no-to-low-interest Department of Energy "retooling loan." I repeat: the $5.9 billion loan from the Advanced Technology Vehicles Manufacturing (ATVM) program allows Mulally's minions to spend $5.9 billion dollars on something else. It's a bailout. Question: if you're an industry writer, how do you push Ford's mega-suckle to one side to keep the "pure as driven snow" show alive? You draw a distinction between "emergency tax dollars" and ATVM loans, while, at the same time, not mentioning the loans. Sarah Webster's "Ford, Toyota in a close race to No. 1" does that and more, taking Motown's hometown cheerleading to the next level.

Editorial: Between The Lines: New GM’s First Press Release

Robert Farago — Fri, 10 Jul 2009 15:42:17 +0000

I once asked a priest about confession. What was the point? I knew Catholics who'd sin, confess, sin, confess, wash, rinse, repeat. "It's not a 'get out of hell free' card," he insisted. "Confession means you fully acknowledge your sin, pledge to atone for the harm you've caused, promise God that you've learned from your mistakes and change your behavior." Let's say you do all that and commit the same sin. What good's an unrealized promise? "None," he said. "I have refused absolution to repeat sinners because I didn't believe that they were ready, willing or able to abandon their sins." And there you have it: New GM's recipe for disaster. Let us turn to the first sentence of New GM's first press release.

Editorial: Between the Lines: GM Does Not Welcome Its New Governmental Overlords

Edward Niedermeyer — Thu, 14 May 2009 23:03:04 +0000

Well, the worm has turned properly on government intervention in the auto industry, as General Motors now seems to fear a government takeover more than bankruptcy. Too bad the choice isn't either-or. Recent 10-Q filings with the SEC indicate that GM accepts the inevitability of a Chapter 11 filing, but describes the ramifications of a possible government ownership stake with fear and horror. "In the future we may also become subject to new and additional government regulations regarding various aspects of our business as a result of the U.S. government’s ownership in (and financing of) our business. These regulations could make it more difficult for us to compete with other companies that are not subject to similar regulations," figure GM's professional worrywarts. These still waters of paranoia run deep.

Editorial: Between the Lines: Car and Driver Camaro vs. Genesis Comparo

Michael Karesh — Sun, 03 May 2009 23:21:06 +0000

Even the most even-handed comparison tests reflect a specific set of specifically weighted criteria. Then there are those that aren’t even-handed. Car comparison tests don’t come much more tilted than the “Camaro vs. Genesis” comparison test in the June 2009 Car and Driver.

Editorial: Between the Lines: MaryAnn Keller: Post C11 GM Needs A Road Warrior

Robert Farago — Mon, 20 Apr 2009 16:41:28 +0000

Props to automotive consultant Maryann Keller for calling for GM to get its shit together, I mean "create a sense of urgency" since 1875, or thereabouts. Kudos for Keller's willingness to predict a GM C11 early and often. And praise be for loaning TTAC the writing talents of Mr. Ken Elias. OK, so. . . Keller's column in Automotive News [sub] is suffused with Annie-like optimism for a post-C11 GM. With one a catch. Chevillac's success depends on the "smaller, leaner and cost-competitive company's" ability to secure a champion who can administer strong medicine to GM's poisonous corporate culture. Before we deal with Ms. Keller's "if you build it, he will come" theory, here's a taste of her sunwillcomeouttomorrowism:

Editorial: Between the Lines: Motor Trend’s arthur st. antoine Doesn’t Own a Car

Robert Farago — Mon, 13 Apr 2009 11:58:39 +0000

Motown's top suits are [still] insulated from "the ownership experience." They drive carefully selected and prepped examples of their own products, lovingly serviced by the company's top wenches. I mean wrenches. The company replaces these perkmobiles before they can prove the old adage that getting older is not for sissies. The execs don't experience the slings and arrows of outrageous service departments nor, for that matter, their competitors' products. They are the bubble boys, accompanied by buff book writers. In this month's Motor Trend, the chronically undercapitalized arthur st antoine offers this: "Full disclosure: At the moment, I don't own an automobile. There are too many test cars, too little time." So the st receives a new, carefully selected, meticulously prepped and thoroughly maintained press car EVERY WEEK. A full tank of gas, no insurance, no trips to the dealer (ever). None of the hassles of car ownership AND the unexpressed danger that writing something that takes him off the press car gravy train would costs him thousands of dollars per year. Now, about this month's column. . .

Editorial: Between The Lines: GM’s Volt Development Spin Cycle

Edward Niedermeyer — Tue, 17 Mar 2009 17:41:13 +0000

As rumors filter in about GM's Volt battery program, the faithful must be experiencing a certain amount of restless discomfort. After all, it's not like this couldn't be seen coming. Let's just say that when I asked the guys from A123 systems (then bidding on the project) about the Volt battery development program at SEMA last October, they took full advantage of the fact that SEC silent periods don't forbid eye-rolling. Though non-verbal communication can (and in this case, did) speak volumes, we like to get our facts in writing. Which, thanks to the truth-proof wall surrounding the Volt's development, usually means going through GM's PR-exercise interviews with reliable Volt boosters and mining them for some kind of meaning. And hey, there's an interview at Volt cheerleader HQ gm-volt.com which suggests that the Volt's battery development is being rushed. And engineers are complaining to blogs? Fancy that!

Editorial: Between The Lines: AN Pimps for GMAC’s CEO

Robert Farago — Mon, 09 Mar 2009 17:06:55 +0000

Automotive News [AN, sub] does an excellent job covering the industry. Most of the time, AN is an unbiased if largely toothless conduit of autoblogospherical fodder. In other words, they report, we decide. But today's column by Editor David Sedgwick is, well, appalling. No really. I am shocked at the depths of disinformation, dissembling and, yes, dishonor to which AN and Sedgwick have sunk. "GMAC's chief has a chance to earn his millions" begins by asking "Is Al de Molina worth $11.6 million?" The obvious answer has Will Smith written all over it: oh HELL no. Unless, of course, you're one of the Cerberus insiders who benefitted from the Fed's last minute rule change. You know, the one allowing GMAC to become a bank when it didn't qualify for bank status. Oh and then there's Uncle Sam's $6b GMAC bailout. So yes, I guess Al de Molina is worth the big bucks to someone. Sedgwick's column, on the other hand, isn't worth the paper it's printed on.

Between the Lines: USA Today’s Flag-Waving Homo-Erotic Automotive Flashback

Robert Farago — Fri, 20 Feb 2009 20:34:15 +0000

USA Today's car coverage is normally a fairly sensible part of a fairly sensible newspaper. But the Motown meltdown has created major distortions in the force. USA Today's piece "Readers tell us why they stand by their American cars" is odd, from any angle. Clicking on the "enlarge" button of a homo-erotic picture of a guy in combat pants posing in front of a Buick Riviera is only the beginning. Right from the start of the article, it's clear that scribe Chris Woodyard is so far out of the news loop he might as well check if Elvis is on the moon with him. Either that or he's having a bad flashback, man. How else can you explain his bell bottom jeans-era take on American cars?

Editorial: Between The Lines: President Bush’s Bailout Defense

Robert Farago — Sat, 20 Dec 2008 22:53:01 +0000

President Bush's radio address this morning: "Good morning. For years, America's automakers have faced serious challenges -- burdensome costs, a shrinking share of the market, and declining profits. In recent months, the global financial crisis has made these challenges even more severe. Now some U.S. auto executives say that their companies are nearing collapse -- and that the only way they can buy time to restructure is with help from the Federal government.

Between the Lines: Jalopnik’s Ray Wert Writes “Case For Rick Wagoner”

Justin Berkowitz — Mon, 08 Dec 2008 18:04:44 +0000

Jalopnik's Editor and I have had some major differences of opinion. Ray Wert recently opined that a Chrysler-GM merger made good business sense. I disagreed. When Jalopnik sold "Save GM" t-shirts and claimed it was ironic, I begged (metaphorically) to differ. Today, Wert posted an editorial entitled "The Case for GM CEO Rick Wagoner." Again, I disagree. The rant is deeply misguided, the logic and conclusions just plain wrong. And in a twist of [yet more] unintended irony, the editorial stinks of the sloth and corner-cutting that's brought GM to its knees.

Between The Lines: Automotive News’ “The Cost of GM’s Death”

Robert Farago — Fri, 14 Nov 2008 18:29:17 +0000

I can't remember the last time Automotive News [sub] unleashed an email alert for an editorial. Hell, I can't remember the first time they did it. As in this is it: the first time. You see how stunned I am? Well, no prizes for guessing which side of the bailout issue Crain's boys fall. They unleash the argument that's become the de facto Detroit defense: a bailout sucks, but not bailing out Motown sucks even more. They fucked-up but YOU will suffer. So YOU should pay. NOW. BEFORE IT'S TOO LATE! Hysteria and hyperbole? You don't know the half of it. Well, not yet anyway...

Editorial: Between the Lines: David Cole and the Bridge To Nowhere

Robert Farago — Wed, 12 Nov 2008 13:04:10 +0000

David Cole is the man whose industry and union-funded Center for Automotive Research carried-out a study of the economic implications of Detroit's meltdown. The result has become the de facto standard for "this is the serious shit that will happen if we don't bailout Motown's mismanagers with federal tax money" argument. So much so that the mainstream media uses the figures without attribution. TTAC has exposed Cole's blantant self-interest in this matter. Our Best and Brightest have examined CAR's study and exposed its deep methodological flaws. While there is no doubt that a GM, Ford and/or Chrysler bankruptcy filing would create an economic catastrophe for tens of thousands of workers and hundreds of communities, exaggerating the impact for political gain is deeply immoral. And just plain wrong. Giving Cole an uncontested platform to promulgate his propaganda is, if anything, worse. And yet that's exactly what The Detroit News has done...

Editorial: Between The Lines: Barack Obama’s Shot Across Detroit’s Bow

Robert Farago — Sun, 09 Nov 2008 13:34:34 +0000

Senator and president-elect Barack Obama held his first post-election press conference on Friday-- the same day that Ford and GM revealed their respective arterial sprays of red ink and third degree cash burns. Rather than highlight those stats and go for the close, bailoutwise, Obama played his political cards close to his chest. The exact text of his remarks are extremely revealing, in that politicians don't really reveal anything unless they absolutely have to kinda way. "The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil." Translation?

Editorial: Between the Lines: How Detroit Drove Into a Ditch

John Horner — Wed, 29 Oct 2008 15:17:40 +0000

Paul Ingrassia's essay in The Wall Street Journal takes a stab at a question which has preoccupied me for years. How the hell did the American automotive industry, which once was the model of industrial might for the world, become a sickly embarrassment? Generally, blame is apportioned amongst these areas: management, labor unions, government, customers and bad luck. Ingrassia comes down pretty hard on management, with a supporting role for the unions.

Editorial: Between the Lines – Wall Street Journal Goes Jenkins Jr. Crazy

Michael Martineck — Wed, 22 Oct 2008 16:47:19 +0000

The Wall Street Journal’s Business World by Holman W. Jenkins Jr. exemplifies the dangers of always looking at the course through the same binoculars. His “Uncle Sam Goes Car Crazy” (WJS Oct. 22, 2008) rant is an attempt to view Detroit’s troubles through Government is Bad glasses, filtering out all other reasons for the slide. He’s wrong, and in a dangerous way.

Editorial: Between the Lines – Throwing Chrysler to the Wolves

Justin Berkowitz — Tue, 21 Oct 2008 12:58:02 +0000

The mainstream media suffers from “opinion inertia.' Once the press corps adopts a certain angle on a story, its superglue city, facts be damned. To wit: TTAC's been slamming Chrysler for horrendous product quality, bizarre model choices, asinine marketing and a bloated, piss-poor dealer network since... ever. Meanwhile, our colleagues have been playing the underdog American automaker meme. Post Cerberus purchase, they’ve been ignoring Chrysler’s failed products and telltale gaffes, such as CEO Bob Nardelli's infamous "operationally bankrupt" admission. But now that rumors of a GM - Chrysler merger have surfaced, the media's woken up. And the fangs are out.

Between the Lines: Jalopnik’s Ray Wert on GM – Chrysler Merger

Justin Berkowitz — Sat, 11 Oct 2008 12:58:45 +0000

Last night, the New York Times “broke” the story that General Motors and Chrysler/Cerberus were discussing a merger. The report lacked only one crucial component: facts. As RF reported in his initial blog on the subject, the story unravels by paragraph two. We learn that the entire story is based on “two people close to the process.” While anonymous attribution is common new industry practice, a story without independent corroboration is a nothing more than rumor— especially when it defies common sense. General Motors’ assertion that they routinely talk to other manufacturers about collaborative efforts doesn’t count. But it does reveal the truth of the matter. [Continued]

Between the Lines: Chrysler’s Electric Vehicle Charade

Justin Berkowitz — Tue, 23 Sep 2008 18:44:50 +0000

Chrysler unveiled some primo bailout bait today: three electric vehicles (EVs). Choosing CNBC as point man, ChryCo's CEO showed-off a fully electric Dodge sports car and a Jeep and minivan hybrid. While the press has been suitably impressed, pistonheads who've been following (and following and following) the hoopla surrounding GM's plug-in electric - gas hybrid Chevrolet Volt are settling-in for the long haul. Meanwhile, we must endure Auburn Hill's spin on the whole "future vehicles" thing. Or do we? Here's Chrysler press release...

Between The Lines: Bob Lutz’s “Working Hard on Tomorrow, Today”

Robert Farago — Sat, 19 Jul 2008 14:04:17 +0000

In 2001, Robert A. Lutz jumped on the GM gravy train as the automaker’s vice chairman of product development. Since then, The General has continued its inexorable march to oblivion. Car-wise, Lutz’ regime has been marked by brand-defiling badge engineering and a seemingly endless stream of “nearly there” products. And yet the automaker’s camp followers continue to give Lutz a free pass. There’s only one reason for this blind spot: they don’t pay attention to what he does OR what he says. Perhaps they failed to notice that the guy’s got a blog.

Between the Lines: Motor Trend Disses BMW. Ish.

Robert Farago — Mon, 30 Jun 2008 15:41:50 +0000

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: Berkowitz Hits the [Toyota] Open Road

Justin Berkowitz — Wed, 11 Jun 2008 16:32:26 +0000

As GM’s FastLane and GMNext blogs have demonstrated, the U.S. automobile industry has fully embraced the concept of blogging-- as press release. Toyota, of course, has entered the e-fray. Their Open Road blog may do little (as in nothing) to stretch the boundaries of Web 2.0-itude, but it offers the usual insight into the corporate culture from which it sprang. ToMoCo’s plugging the new Venza crossover, designed to fill the gaping hole in their lineup between the Camry, RAV4, Highlander, FJ Cruiser, 4Runner and Sienna. Into the depths we descend...

Between The Lines: MT’s Angus MacKenzie’s on GM’s Sinking Stock Price

Edward Niedermeyer — Tue, 18 Mar 2008 11:23:48 +0000

Angus MacKenzie did everything but call TTAC by name in his essay GM Shares Tumble. So What? Yes, the Motor Trend scribe can “almost hear the Detroit death-watchers rubbing their hands with glee” at the news of GM's stock hitting two-year lows. It's true. Every time GM's share price dips, we light giant cigars, twirl our collective mustache and laugh maniacally. That Mr. MacKenzie sees critical coverage of the auto industry as journalistic schadenfreude goes some ways towards explaining Motor Trend’s increasingly toothless car reviews. But how can MacKenzie, an experienced car hack, justify pinning Detroit’s woes on anyone other than, well, Detroit? Hey, a man’s gotta eat.

Between The Lines: A Look Into Bob Lutz’ Mind

Frank Williams — Thu, 24 Jan 2008 18:36:50 +0000

GM Car Czar Bob Lutz wants you to know what's on his mind. So, at last night's Automotive News congressional confab, Maximum Bob let rip, revealing the concerns triggering the suit's septuagenarian synapses. But, as usual, there are major gaps between Bob's thoughts and actual reality.