People

$3,200,000,000,000 for an Oil-Free Future

Well, you can't accuse either side of the political spectrum of hanging around while gas prices have opened-up the debate on America's energy policy, or lack thereof. While President Bush has removed the executive order against off-shore drilling (over to you congress), former Vice President Al Gore has asked Americans to help foot the bill for a ten-year, three trillion dollar "moon shot" effort to switch to "clean" electricity from solar, wind and geothermal power. While this is an extremely inconvenient solution for coal mining states that leaves pro-nuclear partisans in the cold, I mention Al's plan here because it's implicit that the transition would enable a nation of plug-in hybrids or pure EVs. Hey, what about hydrogen? Big Al made no mention of water vaporware. But The Boston Herald reports that a group of scientists have priced-out a U.S. switch to hydrogen-powered vehicles at $200b. No mention was made of the energy source for the fuel, but apparently the the Committee on Assessment of Resource Needs for Fuel Cell and Hydrogen Technologies have bigger fish to fry (deep freeze?). "The cost of platinum is approximately 57 percent of the fuel-cell stack costs and represents the greatest challenge to further cost reductions," the study said. "Future platinum supply is a critical issue in forward projections of fuel-cell costs." If it's not one thing, it's another.

Posted in Alternative Energy | Green | Hybrid | Hydrogen | Media | News Blog | People | Politics | 45 comments

Terry Box Nails GM’s Coffin

Even though I disagree with him more often than not, I like Terry Box's writing. If such a thing is rhetorically possible, The Dallas News car correspondent thinks outside-the-box. He's also a true champion of blue collar consumers. So when I caught a link to his coverage of GM CEO Rick Wagoner's appearance at a Dallas luncheon– where Rabid Rick's dropped his infamous and ineffective "inaccurate" bankruptcy rumor remarks– I knew we'd get some additional insight into Wagoner's thinking, or lack thereof. Box flags the fact that Wagoner reckons GM's Arlington will be GM's sole SUV supplier. "We think the segment will be big enough to support a plant," Mr. Wagoner assured his Lone Star State admirers. Think? But here's the real money shot: ""We used to do cars and everything else – with everything else being trucks. Now, we are moving toward three channels: cars, trucks and crossovers." Parsing that, it seems Wagoner still doesn't get it: America's future is predominantly car-shaped. Or does he? "Our job now is to get our cars more profitable," Wagoner announced. And how, pray tell, is he going to do that? Oh sorry. The answer would require a coherent turnaround plan with publicly stated goals. Why start now?

The Dallas News »

Posted in Chapter 11 | New Cars | News Blog | People | 35 comments

Hertz: High Gas Prices Haven’t Hurt Holiday Travel

You want to talk about high gas prices? Hertz used to charge its customes $7.99 a gallon to refuel a car. In an interview with The New York Times, the rental car company's chairman and chief executive says Hertz has modified the charge to stop gouging their customers [paraphrasing]. "We are now reducing that to the pump price, which is $4 or so, plus a one-time fee of $6.99," Mark P. Frissora reveals. "We also have a fuel-purchase option. In the past, if you elected to buy the tank of gas in advance, we charged a 10- to 20-cent premium on that tank. But now we give a 15-cent discount to whatever the price is at the pump." Hertz is hoping new customers will cover the lost revenues. But what about the old biz, the vacationeers facing pump shock? "In general, gas prices going up is not a positive thing. However, it is not nearly as negative as you might imagine in rental car land. Typically, the rental car itself and gas are no more than 10 percent of the overall cost of a vacation. We are finding that people aren’t cutting vacations right now. You would think that with gas prices being high, there would be a deterioration, but we haven’t seen that." Yet. In other news, Hertz has just 3k Priora in its Green Fleet; Toyota's hyrbid's residuals are safe. For now. 

The New York Times »

Posted in Green | Industry | News Blog | People | Used Cars | 8 comments

Ferrari To Build Hybrid-Powered Sports Car by 2015

In an interview with German mag Welt am Sonntag, Ferrari's President has vowed to reduce the automaker's greenhouse gas emissions by nearly half. [In case you're wondering "who asked?" Ferrari faces the same stringent new European C02 regs as all the other camakers.] What's more, Ferrari's going to build a hybrid-powered supercar. "We are currently working on the development of a Ferrari that will use alternative energy sources," Luca Cordero di Montezemolo said with characteristic aristocratic reserve [guessing]. According to The Sydney Morning Herald, Luca also "insisted that any future hybrid Ferrari would still be 'fundamentally a Ferrari.'" And somewhat of a FIAT? No! The hybrid "will be based on what we are doing at the moment in Formula 1." The Herald reckons LCDM was referring to Ferrari's Kinetic Energy Recycling System (KERS), designed to draw extra power from the brakes (as opposed to the habit of flying around the world in private jets burning hundreds of thousands of liters of avgas). When asked if Ferraristi would look kindly on a hybrid supercar (i.e. pay through the nose to own one), di Montezemolo had no doubts (as if). "Yes, of course," he said. "It's the best sports car in the world." Anyone know the Italian word for chutzpah?

The Sydney Morning Herald »

Posted in Hybrid | New Cars | News Blog | People | 11 comments

Lutz on Beat: “We always thought we’d do it at some point, but now it obviously enjoys a much higher priority”

Give all the hype surrounding Chevrolet's forthcoming plug-in electric - gas Volt, I guess we've got to call the Chevrolet Beat GM's mini-Hail Mary. Or is that MINI Hail Mary? Actually, let's stick with the small "m." Lest we forget, the Beat is/would be no less a Daewoo than the South Korean-built Aveo. Regardless, GM's Car Czar Maximum Bob himself is floating the micro-car-shaped trial balloon to The Wall Street Journal, as above. Freelancing Detroit News scribe Sharon Terlep's lead makes it clear that obfuscation is the order of the day. "General Motors said it is giving a higher priority to deciding whether it will bring the next-generation Chevrolet Beat mini car — a vehicle it sells overseas — to the U.S. market in the 2012 timeframe." [Note: higher. Not highest.] Meanwhile, Ford is making a similar move. I mean, mulling. "Ford Motor Co. said Thursday it has no plans on the table to bring its micro-sized Ka mini car to the U.S., but it is monitoring the success that Smart is having. 'We have small cars on the shelf all around the world,' Ford spokesman Jay Ward said. 'If at some point we decide to bring [the Ka] over here, we would be in a position to do so.'" Sensible caution or institutional paralysis? We report, you deride.

The Wall Street Journal »

Posted in New Cars | News Blog | Overseas | People | 15 comments

CAW’s Basil “Buzz” Hargrove Gets Canadian Gong

Amidst all the buzz surrounding controversial abortion activist Dr. Henry Morgantaler's elevation to the Order of Canada, you may have missed the fact that the same honour has been bestowed on long-time Canadian labour leader Basil Hargrove, or 'Buzz' as we know him 'round here. The Order of Canada is Canada's highest civilian honour. The National Post reports that Buzz was given the award for "his contributions as a labour leader who is respected on both sides of the bargaining table, and for his advocacy for equality and human rights in Canada and abroad." Though many will argue Buzz was intensely active in keeping Canadian labour costs artificially high, and thus, shares some responsibility for the current decline of Ontario's automotive sector, Buzz's long and illustrious careers remains one of great renown. From his humble beginnings as a Chrysler line worker, to his soldiering for the then-CAW leader Bob White in the 80s, to obtaining his own mandates as leader since 1992, Buzz was instrumental in every major CAW negotiation for the last twenty years. History will judge Hargrove harshly, though, for the closure of GM-Oshawa and the decline in the CAW's bargaining power during his reign. 

The National Post »

Posted in Branding | Canada | News Blog | People | Union News | 11 comments

American Axle CEO Dick Dauch Pockets $14.05m for ‘07

Ha! So close, yet so far. American Axle CEO Dick Dauch's '07 paycheck– $5.55m salary and a $8.5m bonus– doesn't quite eclipse GM CEO Rick Wagoner's $14.4m compensation. But hey, what's $350k between friends? And, it must be said, that's a lot of money– even if Dauch did break– sorry, "settle" a three-month strike by cutting half of AA's 3,650 member unionized workforce, instituting a two-tier wage system (lowering newbie wages by roughly 50 percent) and "convincing" GM to kick-in $215m to pay for bailouts. As AA's independent compensation committee put it, the bonus "took into account the company's strong financial performance in 2007, the structural transformation achieved under our new labor agreements with the UAW and… Dauch's leadership role in these negotiations." There, that sounds better. Neither the UAW nor American Axle's president (Dauch's son, appointed post-strike) were available for comment. Meanwhile, well done to The Detroit News for not totaling the CEO's compensation for their headline. There's only such much shock and awe Motown can take these days. (P.S. Isn't it amazing how all this big bucks salary stuff comes out during the weekend?)

Detroit News »

Posted in News Blog | People | Suppliers | 12 comments

Honda Promises Jamie Lee Curtis A Clarity: “I felt like I won an Oscar”

As if. Still the woman once awarded "the best breasts in Hollywood" nod by every hetrosexual male in America is over-the-moon in love with Honda's PR-mobile: the hydrogen fuel-cell-powered Clarity. "Our family is going to pay for the privilege of having the chance to show, by action, a car that is an alternative to gasoline," she told CBS News. Note: "is going to." Yes, CBS and Jamie Lee are hyping the Clarity before it's been delivered. And once again, the mainstream media is happy to talk about hydrogen fuel cell vehicles as if the liquified gas in their tanks is made by zero-emissions pixies. Hello? It takes energy to make hydrogen. And that means CO2 and plenty of it (solar shmolar). While we await numerous opportunities to highlight this inconvenient truth, CBS points out the echt drawback to JLC's Clarity and its hy-powered ilk. "But the real problem with these cars is keeping them filled up - there are very few fueling stations. Even here in Southern California with the greatest concentratrion [sic] of stations, there are still fewer than 20. In the meantime, [Vasilios] Manousiouthakis makes do. His [hydrogen-powered Mercedes] car can only travel 80 miles on a tank of fuel, and the nearest hydrogen station is 10 miles from his home. On this day, the fuel pump is broken. With the nearest hydrogen station another 10 miles away, Manousiouthakis knows his car won't make it. "I need desperately fuel right now. I'm literally on fumes so I cannot get out," he says.  It takes two men and a consultant on the phone to solve the problem. "It takes commitment," says Manousiouthakis. Or something. 

CBS News »

Posted in Marketing | Media | News Blog | People | 30 comments

Detroit’s Reasons To Be Cheerful Pt. 2

Now that Chrysler's HR honcho Nancy Rae has sent us a primer for pessimists, it's time for The Detroit Free Press to find some light at the end of the tunnel that doesn't look the headlight of an oncoming train. First the bad news, albeit with a light dusting of sugar coating. "Detroit's automakers are bleeding cash, despite massive cost-cutting and job reductions in recent years," Justin Hyde "reports." "And while each has socked away funds, the money will last only until 2010 at the latest unless the companies borrow to buy more time, analysts say." And then, hints of hope(tm)! "If you're looking for some sign of light in the gloom, there are glimmers. Unlike previous slumps, the vehicles built by Detroit's automakers are broadly on par with much of their competition. The landmark deal that will lead the UAW to take on health care for workers will free up cash in 2010, especially at General Motors Corp. All three companies are pushing new fuel efficient models, with side bets on more exotic technology such as plug-in hybrids." But even Hyde can't. "But a permanent cure — generating enough cash to pay their debts as they roll out new vehicles — appears unlikely before 2011, and another unexpected jolt could tear one or more of them asunder, analysts say." What corporate arrogance has created, let no market rent asunder? Good luck with that.

The Detroit Free Press »

Posted in Chapter 11 | Media | News Blog | People | 28 comments

FastLane Glasnost or ADHD?

When GM's FastLane blog was first unleashed on suspecting surfers, we dismissed it as a PR exercise without, well, balls. PR puff pieces accompanied by camp followers' comments made it an exceedingly anodyne place to spend one's surfing time. Well it seems that some of the site's backwaters are getting pretty rough. KixStart drew our attention to an old post (February) about the Chevrolet Cobalt– a car whose excellence escapes just about anyone who's ever driven a Honda Civic. It starts with "Charlie" sticking it to the Cobalt vs. the Corolla but good. GM Powertrain's Dave Lancaster answers by ignoring all complaints (mpg, weight, speed) except Charlie's kvetch about the Cobalt's need for premium go-juice (recommended not required). It's the usual prevarication, but the comments includes a nightmare Cobalt customer non-satisfaction story, posted today. The tale ends with "I have vowed never to own or recommend a GM product again." Heady stuff. But is GM listening? And if they are, would they have deleted this comment? Will they? Over to you, Christopher Barger…

FastLane »

Posted in Media | News Blog | People | 4 comments