Obligatory Between Bad News Car-Related Post: New BMW 1-Series Aftermarket Tail Light
By Robert FaragoDecember 3, 2008 -
Posted in News Blog | Tuners | 20 comments 
TTAC Called It, GM Denies It: China Ready to Eat American Automakers’ Assets
By Robert FaragoDecember 3, 2008 -
When TTAC’s Bertel Schmitt first blogged the story that China had designs on Chrysler and GM, the resulting traffic melted our server. So we added another one. That one melted too. Our stalwart TTAC technical team tells me they’re now load balancing– and doing something about handling our traffic spikes. The view counter’s disappearance serves as a stark non-reminder of that terrible, wonderful day. And, of course, Bertel wasn’t just whistling Dixie (or whatever Germans living in China whistle). Bertel’s given us more inside dope today, as Bloomberg breaks the story into America’s MSM: “Dongfeng Motor Group Co., China’s third-largest automaker, said it had received proposals from investment banks to buy assets from General Motors Corp. as the U.S. carmaker tries to avoid running out of cash,” Bloomies reports with a hint, hint, nudge, nudge, knowwhatImean? “’We’ve gotten e-mails and investment materials asking us whether we would be interested in buying some of GM’s assets,’ Hu Xindong, head of investor relations, said by phone today. ‘So far, our management has not yet reviewed the issues and we have not yet responded.’” GM says it isn’t in talks with Dongfeng, but that’s not what the story says, is it?
Posted in Chapter 11 | China | News Blog | 9 comments
Audi Announces A5 And S5 Convertibles
By Edward NiedermeyerDecember 3, 2008 -
Audi has released photos and details of the convertible versions of its A5 and S5 coupes, and they’re classy little ragtops in the proud Audi tradition. North American pricing and availability are not yet available, but with Euro-only 1.8 TFSI versions starting at $47,300, they won’t be cheap. The S5 version will rock Audi’s new supercharged TFSI 3.0 V6, good for 333hp, 324 lb/ft of torque and a 5.6 second hustle to 60 mph.
Posted in Future Vehicles | News Blog | 14 comments
Between the Lines: GM Marketing Maven Mark LaNeve’s Letter to Dealers “It Wazzunt Us”
By Robert FaragoDecember 3, 2008 -
One of our Best and Brightest forwarded this letter from GM North American Vice President Vehicle Sales, Service and Marketing to the company’s 124,756 dealers. Mark’s missive attached GM’s increasingly discredited rescue plan and exhorted store owners to keep the faith. More interestingly, the third ‘graph reveals LaNeve as a knee jerk (get well soon Mark) apologist, as he once again trots-out the 6W (woo-woo-woo-woo-woo-woo or Curley) defense. “As you read through these plans, please keep in mind we are in unprecedented times and the economic downturn has impacted industries and people across the nation, causing a devastating rippling affect. GM and other domestic and foreign automakers have been hit hard as consumers are unable to get credit for the purchase of new cars as well as other goods and services. This has resulted in a severe drop in auto sales and potential for revenue generation, which has made it necessary for GM to formulate even deeper cuts than originally anticipated prior to the credit crisis.” Of course, there’s more. Or less. More or less.
Posted in News Blog | 4 comments
Bailout Watch 230: WSJ LOLs at GM Rescue Plan
By Robert FaragoDecember 3, 2008 -
The Wall Street Journal’s Evan Newmark takes a look at GM’s Congressional bailout begging term paper. To paraphrase, “we are amused” (in a deeply cynical, bemused sort of way). More specifically, “The restructuring plan comes up short on the most fundamental question. Will this company actually make money? Just look at the details — or what details are lacking. GM says it plans to focus on only four brands. So why does the number of models only drop from 48 to 40? GM has 6,600 dealers, which it says it will cut to 4,700 by 2012. Honda has 1,300 dealers. Even Ford has only 4,100 — which it will cut further. And nowhere in the document does GM lay out, year by year, its own projected market share. This is perhaps the most critical part of any business plan. The kind of thing you learn in the first day of business school.” Yup, the WSJ gets it– in the same place the American taxpayer will… well you get my drift. More mill grist for left-brained nay-sayers after the jump.
Posted in Bailout Watch | News Blog | 21 comments
Hola! ChryCo Says 2011 300 Will be CAFE-Compliant
By Robert FaragoDecember 3, 2008 -
They didn’t call Ford’s founder “Crazy Henry” for nothing. But Henry Ford had a knack for aphorisms, such as “You don’t build a reputation on what you’re going to do.” I’d stick the word “say” in the middle of that, but what do I know? I know that on the same day Chrysler’s monthly sales cratered by a staggering 47 percent, Automotive News [sub, AN] revealed that ChryCo product development chief Frank Klegon told the world that the 2011 300 sedan and variants will be “CAFE positive.” One wonders why AN waited until yesterday to run the story. Anyway, it’s nice to hear that Chrysler– the automaker that says it need $7b worth of federal funds by the end of the month or goodnight moon– plans on conforming to new U.S. fuel efficiency regs. Of course, like the 2011 300 sedan, those laws don’t actually exist. “The U.S government has not released regulations for the new corporate average fuel economy [CAFE] law, Klegon said, but ‘we think we know what it is.’” Franks identified “the biggest factor” underlying its democratic party positive environmental optimism: “a new, more efficient V-6 engine family, code-named Phoenix.” Rising from the ashes, eh? Maybe…
Posted in Future Vehicles | News Blog | 6 comments
While America Slept. Wednesday, December 3, 2008
By Bertel SchmittDecember 3, 2008 -
This week while your eyes are wide shut: Our 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 has its wheels coming off. Note: For all of this week, WAS will either be late, or non-existent. I’m in Germany on business and will post as time allows. They woke me up for the Chinese story, so you get WAS on time today.
It’s official: Saab for sale. Long predicted by TTAC, now confirmed by GM’s Frederick Henderson: Saab will be sold. If no buyer is found, they will be shuttered. Automobilwoche (sub) has the story.
Sweden to bail Saab and Volvo from hell: According to AFP, “Sweden will come to the rescue of its US-owned carmakers crippled by the financial crisis, Saab and Volvo, to secure the future of an automobile industry which accounts for 15 percent of exports.” Details are yet murky. There isn’t much more than a “we want to keep that here and to protect it,” announced by Frank Nilsson, a spokesman for Sweden’s enterprise and energy ministry. Anything akin of a bank rescue package is definitely being ruled out by Nilsson. But he “can guarantee that we will have car manufacturing in Sweden.” Interesting undertones: Volvo is officially up for sale, Saab is, see above, on the block also. According to the report, “no matter who ends up as the owner, the [Swedish] government is committed to supporting the industry.” How? When? For whom? Stay tuned.
Volvo doesn’t want to buy Volvo: Ford bought the Volvo brand from Swedish Volvo Group. Their chairman Finn Johnsson doesn’t want them back. He told Swedish financial daily Dagens Industri via AFP that they are not interested, and that the Swedish government shouldn’t buy Volvo either. Johnsson: “The state knows nothing about the car industry and Volvo needs an owner that can increase sales and cooperate with suppliers on components and development.” He thinks, Renault would be a fine partner. It’s Swedish for “Up urs.”
(more…)
Posted in News Blog | WAS | 16 comments
China’s #3 Dongfeng Hungry for GM
By Bertel SchmittDecember 3, 2008 -
As reported by TTAC weeks ago, Chinese auto makers are seriously looking into buying all or some of General Motors. The story was never officially denied in China. Now, there are fresh and more concrete indications about a possible Chinese move on GM. Hu Xindong, Secretary to the Chairman of China’s third largest auto maker Dongfeng, said they have been contacted by financial groups which have close relationships with GM. Topic of the discussions: A possible takeover. This according to China’s National Business Daily via Gasgoo. His company “has not started formal discussions yet,” said Dongfeng’s Hu. He also said that “for the moment,” Dongfeng Motor has no intent to take over GM as a whole. They are interested in buying “overseas assets.” In China, “overseas” usually means outside of China. Hu: “Our managing board has not officially considered the option yet.” In China, where one never gets a clear yes or no, these statements are tantamount to a “Hell yes! We are crunching numbers day and night!” When Dongfeng was floated weeks ago, eyebrows went up. Wouldn’t SAIC, GM’s longtime Chinese partner, be a better fit? So, where did SAIC go?
Posted in China | News Blog | 21 comments
John Neff is Insane
By Robert FaragoDecember 2, 2008 -
If anyone knows the pressures of covering Motown’s meltdown, it’s me. I’m putting in some serious time behind this keyboard (”that’s why they call it work” my wife reminds me) trying to keep up with a news cycle that makes a racing bike seem like a mobility scooter (or something like that). My favorite carmudgeon Dan Neil blew a gasket earlier today, arguing for– yes for– the creation of an American Leyland. The same Dan Neil whose criticism of GM’s management (before criticizing Motown’s management was cool) sparked a retaliatory ad boycott and, thus, the first GM Death Watch. And now Autoblog supremo John Neff has gone off the deep end. In the recently launched “Opinion” category– an inherently bad idea for writers with all the teeth of a Chrysaora fuscescens– Neff wails “Stop arm-chair quarterbacking the auto industry.” Huh? If that’s not a textbook example of pathological solipsism, Bob Lutz is. Anyway, Neff’s knickers are in a right royal twist.
Posted in Media | News Blog | 19 comments
Bailout Watch 229: Ford Back in the Black by 2011. In Theory. [Plan Below]
By Robert FaragoDecember 2, 2008 -
Back when I started the General Motors Death Watch, I had no idea that I’d also be starting a Ford Death Watch. Or a Chrysler Suicide Watch. If you’d told me that they’d all be staring down the barrel of Chapter 11 at the same time, I would have found the suggestion highly improbable. As Edna Mole said to Mrs. Incredible, “And yet Darling, here we are.” And here’s Ford’s federally-mandate bailout plan. Automotive News [sub] headlines their summary “Ford tells Congress profit may be restored in 2011,” but that’s all kinds of misleading. In fact, Ford’s plan says The Blue Oval Boys won’t be profitable until at least 2011. And the cover sheet is covered with caveats, from continued decline in market share (ya think?) to “New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions.” Well, at least Ford knows what political buttons to press to get Congressional democrats behind them…
Posted in Bailout Watch | News Blog | 8 comments
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