Ask the Best and Brightest: Have the Feds Done Too Much or Too Little for Detroit?
By Robert FaragoNovember 6, 2009
Diners at the Motown bailout banquet are back at their tables, their plates groaning under the weight of federal “investment.” They’re just now beginning to tuck in, spending your hard-earned money on various plans to achieve what Oliver called “that full-up feeling.” The reluctant chefs (70 percent of American opposed GM and Chrysler’s second bailout) are showing signs of nausea. While the anti-GM/Chrysler bailout backlash has not been statistically analyzed (I wonder why), anecdotal evidence suggests that at least a small percentage of car buyers are shunning the welfare queens’ products as a protest against their government “affiliation.” Meanwhile, political analysts on both sides of the spectrum continue to debate the elections in Maryland and New Jersey, wondering if voters are rejecting the Obama administration’s heavy-handed economic intervention in the U.S. economy. Did I say “heavy-handed?” Plenty of pundits believe that not only did Uncle Sam have every right to nationalize GM and Chrysler, but they didn’t go far enough. What’s that all about?
Posted in Ask the Best and Brightest | News Blog | 56 comments 
More GM-Euro Double-Trouble-Speak: Double Chevrolet Sales!
By Paul NiedermeyerNovember 6, 2009
If the managers at Opel are feeling a little queasy today, this should have them running for the Alka Seltzer (or whatever Germans use). As if to throw (more) gas on the conflagration raging at Opel, Brent Dewar, vice president of Chevrolet, announced at the Reuters Autos Summit in Detroit that GM is targeting sales of 1 million Deawoo-Chevrolets in Europe, double the 500,000 vehicles sold in 2008. (more…)
Posted in Europe | News Blog | Sales | 5 comments
What’s Wrong With This Picture: Don’t Be Such a Pussy Edition
By Robert FaragoNovember 6, 2009
Posted in 3WTP | News Blog | 29 comments
Breaking: Bob Lutz To Be New Chairman of Opel
By Paul NiedermeyerNovember 6, 2009
Spiegel Online reports that Bob Lutz will be named Chairman, and head of the Supervisory Board of Opel. Carl-Peter Forster, who threw in his hat with the Magna buy-out, resigned on the news that GM intends to keep Opel. Forster, the first German to head Opel in decades, was seen to be more independent of Detroit, and respected for his management skills. According to the Spiegel report, managers at Opel are preparing for payback from Lutz, for any prior sins of supporting Opel’s independence and aversion to meddling from RenCen. Opel managers blame Lutz and GM management for pushing cheap Daewoo-Chevrolets in Europe at the expense of Opel, directly contributing to Opels recent problems. For Lutz, aged 77, this is a circular development to his long career which began in Europe with GM Europe (Opel) in 1963.
Posted in Germany | Industry | News Blog | 33 comments
Fiat 500: The Littlest Bailout Baby
By Edward NiedermeyerNovember 6, 2009
Chrysler is in desperate need of quick fixes. New versions of old nameplates (300, Grand Cherokee) and quick ‘n dirty refreshes, and modifications of existing, moribund nameplates are not going to keep showrooms busy while new, Fiat-based products wend their way to market over the next five years. And so, Fiat is bringing its 500 minicar to the US next year. At least that’s why Chrysler says it’s coming: to “attract a new customer to our showrooms.” Of course, that’s far from the whole story. (more…)
Posted in News Blog | 57 comments
David Cole: Ford’s Debt Adds $1500 to Cost of Every Vehicle
By Robert FaragoNovember 6, 2009
We tore David Cole a new one the other day, when the leader of the manufacturer and union-supported Center for Automotive Research suggested that trimming GM and Chrysler dealers wasn’t such a good idea—based on some schmoozing with his pals. Never let it be said that I won’t trot-out a dubious source when it suits my editorial needs, especially when it comes to bashing Ford. Just kidding. I love Ford. My first three cars were Fords. I want Ford to succeed. I am not, however, blind to the fact that Uncle Sam shoveled $10 billion worth of no-to-low-interest twenty-five year loans in FoMoCo’s direction. Nor am I Detroit News columnist Daniel Howes; I will not predict sunshine and roses simply because there’s a government-sponsored break in the clouds hanging over the Glass House Gang. TTAC commentator Mark MacInnis shares my skepticism, with a nod to Mr. Cole . . .
Amidst all the hoopla yesterday about Ford’s quarterly profit, was this little nugget, which doesn’t bode well for their future. “‘That puts Ford at a competitive disadvantage,’ said David Cole, chairman of the Center for Automotive Research in Ann Arbor, who estimated that servicing Ford’s debt adds more than $1,500 to the cost of every vehicle the automaker sells in the United States.” Now, Ford sells as many or more cars worldwide as they do in the U.S., so the cost advantage per-vehicle is actually less than this hyped number. But it’s still what? A six percent or seven percent cost dis-advantage? That’s BEFORE the labor costs, which are higher than GM since the UAW repudiation of Ford’s contract do-over. And higher than Toyota’s and Honda’s. Still. So, add it up, and Henry’s company has to build vehicles ten percent more efficiently or ten percent more desirable to overcome that debt-related disadvantage. A formidable task. So, before we all start congratulating Ford on dodging the bullet, we better watch out for that ricochet . . .
Posted in High Finance | News Blog | 23 comments
What’s Wrong With This Picture: The Old Ennui Edition
By Robert FaragoNovember 6, 2009
So what about this, then? Or this? I guess some brands are meant to be broken.
Posted in 3WTP | News Blog | 11 comments
Hammer Time: Chrysler’s Retro Halo
By Steven LangNovember 6, 2009
It’s heartbreaking. To see a major company that literally carried a healthy portion of America’s heartland go up in Euro-flames. I remember the beauty of it. The 1990’s minivans that completely obliterated their competition. LH sedans that were state of the art for their time. Cloud cars that had more power and road feel than their American brethren. Neons that were so good that even Toyota was jealous. Believe it or not, I still think the talent base of Chrysler is there. But to get it out…
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Posted in Hammer Time | News Blog | 54 comments
Made in China Saab 9-5?
By Bertel SchmittNovember 6, 2009
If the GM-SAAB-Koenigsegg-BAIC deal ever closes, Beijing Auto (BAIC) would be interested in taking the current generation Saab 9-5 and produce it in China once the 2010 Saab 9-5 is launched in Europe in April next year, Chinese media reports via Gasgoo.
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Posted in China | News Blog | 13 comments
Opel: Germany Definitely Wants Its Money Back
By Bertel SchmittNovember 6, 2009
What happened two days after GM blindsided most of Europe, including Russia, with their decision not to sell Opel after all? As announced the next day, Opel workers in Germany laid down their tools today. Tomorrow, workers in Opel plants in the rest of Europe will follow.
Yesterday night, German Chancellor Angela Merkel picked up the phone, called her colleague Barak Obama and voiced her displeasure. “Obama said he had not been involved in the surprise decision by the GM board,” Reuters reports. Isn’t Teflon wonderful? Angela told Barak that his state-owned company better pay back the balance of the bridge loan by the end of the month. She even dispatched her very own collection agent to DC.
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Posted in Germany | News Blog | 34 comments
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