After running the gauntlet of congressional hearings, numerous recalls and personnel firings under the dark cloud of scandal created in the wake of the February 2014 recall crisis, General Motors believes it’s ready to turn the page, that everything is now in the rear view.
It’s not an exceptionally large showroom, but the façade is enormous. The Tesla retail store in Columbus, Ohio wraps around an entire corner of the Easton Town Center, that city’s premier upscale shopping venue. My trip to the store, the first time I’d ever set foot in a Tesla retail location, was an eye opener. Tesla’s retail model is an example of what Scion could have (and should have) been.
Standing on the sidewalk in front of his house, a young boy watches his neighbor across the street back out of her driveway. Her moss green Expedition starts to roll backwards. Suddenly, a blue beach ball blows into the SUV’s path. She hits it with one of her rear tires, and the truck rises up on top of it for just a moment. The ball bursts with an enormous bang, and the truck crashes back to the pavement with an equally loud noise. The top-heavy rig sways back and forth as the boy laughs.
Seeing a bunch of Corvettes in a hole sucks. It got me thinking though, about how falling into a Kentucky sinkhole last week was probably the most exciting thing to happen to the cars on display at the National Corvette Museum in quite a while. That’s a damn shame.
FCA CEO Sergio Marchionne took to The Globe and Mail‘s editorial pages to make his case for government investment in Chrysler’s assembly plants in Canada. Marchionne is seeking government funds to upgrade the Brampton plant (which builds Chrysler’s rear-drive cars) and the Windsor plant (which builds minivans, and would be upgraded as a flexible plant) as part of a $3.6 billion investment.
While a minor shit storm erupted the other day over the use of a word denoting short-haired women who love women, and, allegedly, certain cars, I did a lot of the soul-searching and self-reflection demanded from me, and I thought about all the scandals I may have caused in my life, and which I would regret, if the hate mails are an indicator. There were many scandals, and one of the most egregious involved a car. Oddly enough, it involved a car that allegedly is a top choice among men who love men. The scandal, however, involved people who were into dogs, fish, and other animals. And it was about the Volkswagen Jetta.
Hong Kong, and I speak from experience, is a great place to incorporate, to save taxes, and to throw a cloak of secrecy over financial operations which otherwise would be out in the open. In the case of GM, it is also a great place to save their Korean behinds. In December 2009, GM sold a 1% stake in its Shanghai-GM (SGM) joint venture to the Hong Kong part of its Chinese partner SAIC for the paltry sum of $85m. GM also put its India business into a Hong Kong based joint venture (HKJV). GM provided the India business, SAIC provided cash. As it turned out later, unearthed in Ed Niedermeyer’s seminal oeuvre about the mystery golden share, SAIC also underwrote a $400 million loan. In its darkest hour at the end of 2009, GM was kept afloat by the Chinese. Now, history seems to repeat itself in some convoluted way. (Read More…)