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By Edward Niedermeyer on November 19, 2009

(courtesy: Life)

“Without any doubt we knew fundamentally that [a merger with GM] would work, but only if it was a collaborative effort. Frankly, there was a possibility to create something that would be extremely competitive… unfortunately, it did not happen.”

Nissan/Renault honcho Carlos Ghosn reflects on the GM merger that might have been. When asked if he was happy that the merger hadn’t gone through, Ghosn replied “when you see the disaster and the waste of energy and skills and talent, nobody can be happy.” But was he talking about GM or the failure to merge with them? And since Ghosn has us in a reflective mood, isn’t it fun to imagine how a GM-Renault/Nissan merger might have played out?

By Edward Niedermeyer on November 19, 2009

(courtesy:ibtimes.com)

Automotive News [sub] reports that GM will rush out its $4.9b restructuring plan for Opel in December, as it seeks to ease worries on the continent about the fate of the troubled division. “Our plan is very similar to Magna’s. I don’t think it’s worse,” GM’s Nick Reilly told reporters near Opel’s largest plant in Zaragoza, Spain. Reily has said that as many as 10,000 jobs and 20 to 25 percent of Opel’s production capacity could be cut in the restructuring. Though Reilly refused to indicate where cuts could take place, he did say that GM would not transfer production from Zaragoza to Eisenach in eastern Germany, as Magna had planned to do. He also previously implied that British government loans could prevent or mitigate a planned 800-job cut at Opel’s Vauxhall operations in Britain.

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By Edward Niedermeyer on November 19, 2009

A paper-bagger if ever there were one... (courtesy:trucktrend.com)

When Pontiac’s infamously retina-searing Aztek pops up in popular auto industry analysis, it’s usually as little more than a throwaway punchline. So credit Thebigmoney.com’s Matthew DeBord for trying to leave the Thesaurus entry for “ugly” out of a recent piece dedicated entirely to one of the great modern styling miscalculations. Unfortunately, his admirable restraint serves only to further a wholly unsupportable thesis:

GM needs to remember the Aztek, because it represents the kind of risk-taking design that the post-bankruptcy firm will need to go forward. The temptation for the New General will be to copy successful market formulas, rather than try to define new market segments.

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By Edward Niedermeyer on November 19, 2009

(courtesy:Autocar.co.uk)

Autocar confirms that BMW has green-lighted a “MINI by Rolls-Royce,” featuring a “totally individual, coachbuilt” interiors finished at Rolls’ Goodwood plant. The Aston Martin Cygnet and Abarth 695 Tributo Ferrari have been put on notice… as have the marketing geniuses who thought they were good ideas. At least Rolls-trimmed MINIs have good precedent.

By Paul Niedermeyer on November 19, 2009

the true trail blazer?

This Curbside Classic took the same trajectory as the Blazer. It started as a legitimate nod of acknowledgment to the S-10 Blazer as the trailblazer of the compact SUV market. But as I got further along, I realized just how badly GM bungled the huge opportunity for the baby Blazer in a segment that became a monster money machine for Jeep and Ford. With the mistakes being all so prototypical GM, I just had to re-write it as a Deadly Sin, even though it would have been easier to just leave it as it was. Which is exactly what GM’s Deadly Sin was: leave it as it was, forever. Well I’m not ready just yet to have someone document my Deadly Journalistic Sins, so here goes: Blazer, take Two.

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By Edward Niedermeyer on November 19, 2009

Condition 1: taxpayers get the hose (courtesy:dailymail.co.uk)

This according to the National Taxpayer’s Union report “The Auto Bailout: A Taxpayer Quagmire,” authored by Rochester Institute of Technology Professor of Economics, Thomas D. Hopkins. That number includes the $52.9b taxpayer “investment” in General Motors, as well as GM’s portion of the GMAC bailout, which brings GM’s taxpayer tab to over $60b. Chrysler’s GMAC-inclusive bailout bill totals $17.4b, or $7,600 per vehicle, based on estimated 2009/2010 sales. Don’t believe that GM or Chrysler will match their projections over the next twelve months? The NTU estimates that total government support for the auto industry comes out to $800 per taxpaying American family. These numbers do not include the Cash for Clunkers program, likely future bailouts of GMAC (projected at a further $2b), or Department of Energy retooling loans (ATVML). These numbers also do not reflect the very real possibility that GM, Chrysler and GMAC could continue to drain taxpayer money post-2010. “For each year of survival beyond 2010,” the report warns, “the burden per vehicle would decline [Ed: but not disappear] – so long as no additional government funding is provided.”

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By Steven Lang on November 19, 2009

the real thing: red 900 convertible

The old Saab was virtually perfect. 1988 900 model. Turbo. Convertible. It was as if the vehicle had been taken through a 21 year time warp right to my lot. The prior owner had become tired of frequent $85/hr fixes and now needed a four door instead of two (in Orwellian speak). He traded it straight up for a 1990 Volvo 240 that had also been cared for so that part of my work was done. But what next? This beautiful red Saab had only 150k original miles and had plenty of life left thanks to a healthy maintenance regimen and the use of OEM parts. The owner was downright wonderful and it was now my responsibility to make sure this level of care carried forward to the new owner… and hopefully beyond.
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By Michael Karesh on November 19, 2009

Sebring Quality (courtesy: cars.com)

“There is no other area in the field of human communications that is as rife with disinformation as the story on Chrysler quality,” then Chrysler President Bob Lutz once famously said. Some things never change. According to today’s Detroit News, Chrysler is claiming that they will be a (though not “the”) quality leader by the end of 2012. They (and many other auto makers) have made similar claims before. Sometimes they achieve these goals. More often they don’t. Chrysler’s chances?

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By Cammy Corrigan on November 19, 2009

Signs of life... (courtesy:The WSJ)

One of the most overlooked arguments during last year’s bailout debates was the fact that America’s automotive industry was not under threat. Sure, a few companies based in Detroit were panhandling at death’s door, but so-called “import brands” have been closing the gap in terms of Americans employed for years. And America’s transplant auto industry is continuing to grow. Even as the Detroit firms have slimmed down their North American manufacturing footprints, foreign firms are moving ahead with American and NAFTA-area plants despite the economic downturn. Not only do these moves signify possible new jobs, they also represent a long-term bet on the fundamental strength of the US economy.
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By Edward Niedermeyer on November 19, 2009

China is the perfect place to think about the future shape of mobility. It’s my job here to push my staff to push the envelope and think about the global automotive future from Beijing

Mercedes designer Olivier Boulay, explains his inspiration migration from Japan’s chauffeur-car culture to the streets of Beijing. The Wall Street Journal puts the cliches about China’s role in the world of automotive design, pointing out that (among other things) for every Geely GE, there’s a Buick Invicta.  Not only are Chinese designers affecting Western brands, other Western brands like Mercedes are transferring design staff to China to seek out inspiration in the world’s new largest car market. And developing styling to Chinese tastes is about more than gaining market share there. China’s seemingly contradictory love affairs with conspicuous consumption and electric vehicles (mostly bicycles) represent a heady fusion of luxury and futuretech, a combination that already defines the marketing of many Western luxury car brands. As these trends develop, and as the Chinese market grows, auto design will increasingly be shaped by and in the Middle Kingdom.

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