Damn The Cratering Market, Kia’s Going Ahead With American Plant Plans
By Edward NiedermeyerDecember 3, 2008 -
According to the AP, Korea’s Yonhap news agency reported last week that work could be delayed at Kia’s new West Point, Georgia factory. A wait and see approach would make a lot of sense too, considering that Kia is cutting production worldwide and that the bottom appears to be falling out of the American car market (Hyundai sales being no exception). Except that the report was not true. “No change has been made to our schedule to complete the plant by the end of November and to start production in December (2009)”, says Kia’s Michael Choo. The $1.2b plant was announced in 2006, and will employ 2,500 workers building 300k vehicles annually at full capacity. The West Point factory is Kia’s first in the US, joining parent company Hyundai’s single factory in Alabama. This makes the Georgia Kia’s third overseas production center, joining China and Slovakia, the latter of which is the subject of a fascinating piece by the International Herald Tribune. In it the secretary general of the Automotive Industry Association of Slovakia brushes aside those who would call her country (which builds more cars per capita than any other) “the Detroit of Europe.” “We’re in a good position to grow,” Maria Novakova tells the IHT. “Frankly, we don’t want to be compared to Detroit because we don’t want to end up like Detroit.” An understandable sentiment, to be sure, and one that is poignantly underlined by Kia’s decision to build cars in the US.
Posted in Industry | Korea | News Blog | Overseas | no comments 
And Now The Really Bad News…
By Jay ShoemakerDecember 3, 2008 -
US auto sales in the month of November are down to a 26-year-low, with losses ranging between 30-47 percent for the top six manufacturers. I went to visit one of my favorite Mercedes dealers this weekend to see how my friends were faring (truth be told, I was bottom fishing) and I heard one tale of woe after another. One salesman, who I have known for more than ten years explained that he had sold one single car for the month of November. His wife had worked for one of the banks that cratered a few months earlier, so they were trying to get by on his meager commission, without much success. Since they cannot afford their mortgage payment anymore and they are underwater on the value of their home, my friend is staring down the barrel of the bankruptcy option. Even if you slept through much of Econ 101 in college, you cannot fail to recall that when supply greatly outstrips demand that lower pricing is the only solution and I am not talking temporary discounts and special financing deals. Everything you own is worth less today than yesterday- your home, your 401K and your only consolation is that the gas costs less, retailers are cutting their throats to get your business and soon even food will cost less.
Posted in News Blog | Sales | no comments
What’s Wrong With This Porsche?
By 993C4SDecember 3, 2008 -
Thanks to Dr. Gad Saad and his research associate John Vongas (a former grad student of the good Doctor), we can now argue the physiological benefits of driving a Porsche. According to an article in Psychology Today (tomorrow the world), Saad cites several evolutionists who claim expectant fathers’ T levels (that’s Testosterone to you and me) decrease immediately after the birth of their child. This reduced T level is “nature’s way of freeing the expectant father from the incessant pursuit of sex, and refocuses his energy on his newborn child.” Not in a hurry to see that T level dip? Don’t want to be free of your sexual drive? Saad suggest the remedy is as simple as taking a Porsche for a quick spin through a heavily populated area. More technically, “Put a man in a high status car, and his hormonal response will correspond to a social win (T levels go up subsequent to a competitive win). Place him in a ‘beta’ car, and his tail will be between his legs (T levels go down subsequent to a competitive loss). Furthermore, the changes in testosterone levels should be more pronounced as a function of whether the drive takes place in a public or private setting.” Finally, the mid-life crisis automotive purchase is explained through medical science. ‘Bout time.
Posted in Media | News Blog | one comment
Mr Mulally Goes To Washington
By John HornerDecember 3, 2008 -
Business Week caught up with the Ford Circus road trip to Washington for a telephone interview. Having presumably learned some lessons on that last trip, Alan is re-engaging with the wonders of road food and claims to like it! “We stopped at a dynamite service plaza and we bought a little boxed lunch.” Wow, after putting up with the crap food served on the Boeing and Ford corporate jets old Alan must be in heaven to finally get some good old fashioned Service Plaza Boxed Lunch. Somebody tell him not to eat the box, even if it does taste just like the sandwich. You have to hand it to the guy for being able to spin with the best of ‘em though. (more…)
Posted in News Blog | PR | 6 comments
Question Of The Day: What Is Nardelli Driving To The Bailout Hearings?
By Edward NiedermeyerDecember 3, 2008 -
So, we know Ford’s Alan Mullaly is driving from Detroit to DC in an Escape Hybrid, and GM’s Rick Wagoner is pushing a Malibu Hybrid from Motown and exchanging it for a Cruze/Volt mule to drive (carefully!) the final two miles to the capitol. We even know that UAW Boss Ron Gettelfinger will be *gasp* flying to the hearings, thanks to the fine reporting at Jalopnik. Then again, Gettelfinger had concession-scrounging duty today while the executives and their symbolic vehicles are frantically prepped for their big day at the Capitol. Only Chrysler’s Bob Nardelli has yet to publicize his vehicle of choice, and I’m wondering what the hell he’s gonna show up in. As Fox points out, if he takes the easy route and rolls up in a Hybrid Durango or Aspen, he’ll be “riding a dead horse to Washington.” Chrysler canceled its only hybrids a short week after launching them this October, and will be shutting down the factory that made them this month. Then there’s the famous EV vaporware that Chrysler pulled out of nowhere, but the risk of national humiliation is a big load for these unproven vehicles to carry. So what, a Sebring and a prayer? If I were him I’d be tempted to say “NSFW it” and show up in a black Challenger R/T. Preferrably modified in such a way that violates as many emissions and noise regulations as possible. That would show them who’s begging. So what’s your guess?
Posted in News Blog | Question of the Day | 28 comments
Daily Podcast - Lieberman Edition: I Love the Mitsuoka Himiko
By Justin BerkowitzDecember 3, 2008 -
Oh sure, it looks like a Morgan. But it’s not. Fresh from Mitsuoka, the same company that turned an Infiniti M35 into some kind of time warp British sedan for James May, is the Himiko roadster. It’s based on the Mazda MX-5, which means it’s great to drive. And the bodywork is just insane enough to walk the border between embarrassing and awesome. While most of TTAC’s finest will probably say it looks like a mutant and they’d rather chew glass than have one, I’ll proudly stand in the minority. Oh, and Lieberman and I talk about a number of rockin’ cars in today’s podcast.
Posted in Daily | Daily Podcast | News Blog | Podcasts | 11 comments
What’s Wrong With This Picture?
By Robert FaragoDecember 3, 2008 -
Posted in Marketing | News Blog | 37 comments
Volt Birth Watch 118: Wagoner To Drive “Volt” To Hearings
By Edward NiedermeyerDecember 3, 2008 -
The Detroit Free Press is reporting that GM Chairman Rick Wagoner will “drive a prototype Volt wearing the sheet metal of the upcoming Chevrolet Cruze to the Senate committee hearing on the company’s request for $18 billion in emergency loans.” And though they mention that GM will bring a production prototype Volt as well, they make no mention of where Wagoner will depart from on his drive to the capitol. Here’s a guess: somewhere less than 30 miles away. The WSJ now reports that “Mr. Wagoner plans to drive from Detroit in a hybrid Chevrolet Malibu. He will then drive about two miles — from his hotel, to GM’s Washington office, to Capitol Hill — in a test version of the Volt.” So yeah, a little less than 30 miles.
Posted in News Blog | Volt Birth Watch | 21 comments
Bailout Watch 234: Obama Slides Back Towards “Aye”
By Edward NiedermeyerDecember 3, 2008 -
After recently appearing to edge away from his electorally necessary pro-bailout stance, it seems Obama is headed back towards his original position. “It appears based on reports that we’ve seen that this time out the executives from these automakers are putting forward a more serious set of plans,” the president elect tells Automotive News [sub]. “I’m glad that they recognize the expectations of Congress, certainly, my expectations that we should maintain a viable auto industry,” Obama said. “We should also make sure that any government assistance that’s provided… is based on realistic assessments of what the auto market is going to be and a realistic plan for how we’re going to make these companies viable over the long term.” When pressed for details, such as whether “bridge loans” should come from TARP or the already-approved $25b retooling loan package, Obama stays resolutely nonspecific. “At this point, I’m more interested in seeing whether or not there is a sound plan there,” he said. “Then I’ll be in discussions and listening about where the best sources of money are. But I think it’s premature to get into that issue.” So does President Bush according to Dow Jones (via CNN Money), although we know that he favors using the $25b fund. Of course, with the Detroit bill now coming in at $34b, that $25b will only go so far. Either way, Bush won’t make any kind of decision on the issue until after congressional testimony tomorrow and Friday… and Obama still has the better part of two months to test the waters.
Posted in Bailout Watch | News Blog | 10 comments
2010 Mustang A Cheap Date, Autoblog Celebrates 1,480th Mustang Post
By Edward NiedermeyerDecember 3, 2008 -
You didn’t hear it here first. Autoblog reports that the 2010 Ford Mustang will start as low as $21,845 for a V6, with GT V8 power starting at $27,995. As AB points out, that makes the forthcoming Mustang less expensive than Chevy’s Camaro ($22,995 for the V6, $30,995 for the V8) and Dodge’s Challenger( $22,545, $30,545). If you put much stock in the whole MSRP thing that is. Besides, who doesn’t think these pony revivalists won’t have tons of cash on the hood within months of showing up on lots? Then again, these have been trying times for the folks who’s interest in cars begins and ends with styling and horsepower ratings. Long days of photoshopping album covers are clearly taking their toll, and nothing cleanses the Autoblog palate like a good Mustang post. In fact, a quick Google search shows that AB posted 1,480 articles with “mustang” in the title in the last year, and 35 in the last month. For comparison, TTAC logged 31 in the last year. Moral of the story? If you’re curious about whether Ford will survive long enough to offer the inevitable incentives on the 2010 ’stang of your dreams, you’ve come to the right place.
Posted in Future Vehicles | Media | News Blog | 8 comments
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