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…)
My iPhone has no less than 7 social apps on it (Facebook, Facebook Messenger, Twitter, Tumblr, Tradyo and Instagram), not to mention Google Maps, which like the aforementioned programs, can utilize my phone’s built in GPS beacon to share my location with others (including Apple). My recently departed 1997 Miata was the anti-iPhone. No GPS, no traction control, a barely there ABS system, no electronic throttle. Everything mechanical. My next car will be similar. Simple, robust, resilient. What if we no longer have that option anymore?
Throughout the history of the automobile in America, one city has been synonymous with the industry and culture of cars. Booming with America’s great period of industrialization, Detroit became the Motor City, the hometown of an industry that created a blue-collar middle class and a culture based on personal mobility. But as America has entered the post-industrial age, as the focus of our economy has shifted from production to consumption, Detroit has been left behind. Long used to defining consumer tastes, Detroit was caught unawares by the changes wrought by globalization and the rise of information technology. And as America’s traditional auto industry struggles to redefine itself in the new economy, another Motor City is rising to meet the challenges of a new age.
When government, media and industry agree that a trend exists, it’s generally taken as fait accompli. After all, these three institutions wield immense cultural power, and together they are more than capable of making any prophecy self-fulfilling. But there’s always a stumbling block: acceptance by the everyday folk who actually make up our society. And when a trend is taken for granted, the ensuing rush to be seen as being in touch with said trend often generates more heat than light. Such is the case with the trend towards “green cars.” Few would deny that they are “the future,” but at the same time, there’s been precious little examination of how this future is to be realized. And when such examination does take place, it tends to raise more questions than it answers.
Derek Kreindler is pondering selling his lovely BRG Miata and using the funds as “a down payment on a home of my own.” *Sigh.* Here on the West Coast of Canada, I’d have had to sell my (imaginary) Aventador to pull off the same trick. Spend half-a-million bucks: get half-a-bunkbed in some split-level commune. Pot to piss in, not included.
But that’s not his point, it’s whether or not to let the First One go. The first car you paid for with your own money. That first taste of wheeled freedom. Be it ever so humble, you’ll never walk away from your first without a twinge of regret and many backwards glances.
I remember when I did it. (Read More…)
It’s just a car. That’s what I keep telling myself. It’s my first car. A 1997 Mazda Miata. British Racing Green with tan leather. A rip in one of the seats. Torsen LSD, Bilstein coilovers, a roll bar. Needs a new 02 sensor. Otherwise in great condition. In the last year, it’s needed a new alternator, new brakes. Body is good, paint is only so-so. Someone made me an offer I’d be stupid to refuse. I am usually responsible with my finances. No debt to my name. Rarely carry a balance on my credit card. Roughly a quarter of each paycheque goes into a dedicated savings account. I’d be an idiot not to sell it. My self-control is failing me.
A 19 year old student in Halifax, Nova Scotia put up a classified ad looking for a vintage car. The make, model, year and body style are all irrelevant. What Spencer, the ad’s creator, is looking for is “…a classic car with a past that I can keep alive, and continue to keep alive through future generations, continuously adding to the history of a special car.” And he doesn’t want to pay a cent for it.
2011 was a fascinating year to follow auto sales. With the overall market up over 10%, and hot new products hitting showrooms, there was definitely room to grow… and yet everyone seems to have an excuse for why growth wasn’t stronger. Japanese automakers, the biggest losers of 2011, had a strong of natural disasters to blame the bad year on. Detroit showed strong volume gains in terms of percentage growth, and earned respect in growing segments where they were previously weak, but couldn’t match the expectations of its perennially over-optimistic boosters. The Korean manufacturers showed strong market share growth but lack of capacity prevented them from bounding into the top tier of the US sales game. In fact, only the European luxury manufacturers could point to 2011’s sales performance with unalloyed satisfaction, as they grew some 29.5% as a group, from an already-strong volume position. So, given these mixed results, what was the lesson of 2011?
Back in September, I attended the launch of the Chevrolet Sonic for another outlet. Despite GM’s insistence that the Sonic was being marketed at “millenials”, I was the sole member of the press that fit that demographic. Despite the cheesy, ham-handed attempt at being in touch with the demographic (a parking garage festooned with contrived, faux-urban graffiti, for example), the Sonic left a favorable impression. It is an honest, practical, fun to drive car that is affordable for young people – well, some of them.
All told, this has been a successful holiday season for your humble editor. I have showered myself with gifts, avoided annoying family entanglements, kept my pimp hand
weak strong, and made sure there’s a three-hour gap in my Christmas to re-watch Michael Mann’s Heat in its glorious entirety.
And yet… I’m dissatisfied. Perhaps because there are ten simple things the automotive industry and/or its various players could do to make this the best season ever, and as of yet, none of them have been done. So here’s my list, delivered nice and late. Warning: mixture of hatred, sarcasm, and foolish sincerity ahead.