A Reuters article on Hyundai’s recent quality problems raises an interesting question. Has the company grown too fast following an unprecedented image makeover?
If you’ve ever had a friend or relative who was both eager and nervous to show off a painting, piece of music or other creative work (“Tell me what you really think. Don’t sugarcoat it.” Who hasn’t heard that one before), then you’ll understand how PR people must feel when they’re tasked with introducing a new vehicle.
A year ago nearly to the day, I was investigating the connection between Libyan dictator Muammar Gaddafi and Fiat. With an American-led intervention in Libya underway, Reuters had reported that a Wikileaked State Department document revealed that the Libyan Government owned a two-percent stake in the automaker Fiat as recently as 2006. When I contacted Fiat’s international media relations department for comment, I received this response:
Dear Mr Niedermeyer,
Further to your email, I would mention that the Reuters report you refer to is incorrect. As too are other similar mentions that have appeared recently in the media concerning the LIA’s holdings in Fiat.
The LIA sold all of its 14% shareholding in Fiat SpA in 1986 – ten years after its initial stake was bought. It no longer has a stake in Fiat SpA.
I trust that this clarifies the matter.
It didn’t, actually. In fact the matter remained as clear as mud to me until just now, when I saw Reuters’ report that Italian police have seized $1.46 billion worth of Gaddafi assets, including “stakes in… carmaker Fiat,” under orders from the International Criminal Court.
”Do you want to accompany? or go on ahead? or go off alone? … One must know what one wants and that one wants”
Friedrich Nietzsche, Twilight Of The Idols
This week’s news that GM would stop production of the Chevrolet Volt for the third time in its brief lifespan came roaring out of the proverbial blind spot. Having watched the Volt’s progress closely from gestation through each month’s sales results, it was no secret to me that the Volt was seriously underperforming to expectations. But in the current media environment, anything that happens three times is a trend, and the latest shutdown (and, even more ominously, the accompanying layoffs) was unmistakeable. Not since succumbing to government-organized bankruptcy and bailout has GM so publicly cried “uncle” to the forces of the market, and I genuinely expected The General to continue to signal optimism for the Volt’s long-term prospects. After all, sales in February were up dramatically, finally breaking the 1,000 unit per month barrier. With gasoline prices on the march, this latest shutdown was far from inevitable.
And yet, here we are. Now that GM is undeniably signaling that the Volt is a Corvette-style halo car, with similar production and sales levels, my long-standing skepticism about the Volt’s chances seems to be validated. But in the years since GM announced its intention to build the Volt, this singular car has become woven into the history and yes, the mythology of the bailout era. Now, at the apparent end of its mass-market ambitions, I am struck not with a sense of schadenfreude, but of bewilderment. If the five year voyage of Volt hype is over, we have a lot of baggage to unpack.
At the beginning of this year, the United Auto Workers pledged that it would launch a campaign to organize the foreign-owned, non-union “transplant” factories in the US, threatening to tar uncooperative automakers as “human right abusers.” The campaign initially lost steam, but the UAW stuck to its pledge, re-iterating on several occasions that it would organize “at least one” transplant factory by the end of 2011. With one month left to accomplish that goal and no signs of progress in sight, the UAW has officially called off that goal. In fact, the UAW now hopes to simply pick an automaker to target by the end of 2011. Spokeswoman Michelle Martin tells Bloomberg
At this point, our hope is to make a decision about who we’re going to target by the end of the year. But obviously, we won’t have the organizing campaign completed by the end of the year.
This is not too surprising, considering the UAW announced last week that it would be focusing on dealership pickets initially rather than factory organizing. And sure enough, the first dealership picket has begun, targeting Hyundai dealerships. And yet, says Martin
This has nothing to do with the domestic organizing campaign. Hyundai is not the target.
Huh? If the UAW is not committing to organizing Hyundai’s assembly workers, why picket Hyundai dealerships?
A TTAC tipster sent us a Teknikens Värld interview with Saab’s long-suffering would-be rescuer, Victor Muller, in which the eternal Saabtimist seems ready to admit defeat. In essence, he admits that GM is unlikely to ever approve a plan involving Chinese firms, that the Chinese firms are throwing “money into a black hole” and that all the previous plans are off the table. Of course, Muller does seem to think that some kind of rescue may yet be possible, but he admits
If I doze off Saab would disappear in an instant
If Muller is losing faith, and doesn’t even have a hairbrained scenario to hype, it seems that the end may well be near. But then, the whole rescue of Saab is beginning to be eclipsed by questions about Muller’s erstwhile partner, Vladimir Antonov, who was recently bailed out of British jail, where he was being held on charges of embezzlement and document forgery. But first, to the Muller interview…
Tucked into a corner of the communication department of Nissan is a Japanese rarity: A closed room. Usually, a Japanese office is a sea of people, working elbow-to-elbow without even the suggestion of a cubicle. Most of the floor in Nissan’s swank headquarters in Yokohama is just like that.
Behind the closed doors however works an unusual group of people who probably have to be kept away from the general population anyway: An international team of professional journalists that could change the way companies interact with the media. (Read More…)
TTAC has long held that reviews of press cars made available by manufacturers at launches and press fleets must be complimented by reviews of vehicles acquired from dealer lots. It’s been a controversial position at times, and I’ve had to do battle with OEMs as recently as a few months ago to explain why dealer car impressions matter. Today, Consumer Reports is proving the point by revealing
When VW dropped off an early media car this summer, I remember looking at the trunk and saying to myself “well, at least both of the cheap hinges are dressed up with plastic covers, unlike the Jetta, which just has plastic on the side with the wiring.” As you can see in these two photos from Car & Driver and Edmunds it appears that the Passats in VW’s press fleet have covers on the hinges.
But not that Passat you just bought. No, your new Passat isn’t as nicely finished as the press version.
Like all the vehicles we put through testing, Consumer Reports buys retail samples at a car dealership. I personally purchased the Passat TDI we’re testing. (We also bought a 2.5 SE and a 3.6 SEL Premium.) As you can see in our images, none of the Passats have the two plastic covers found on the press cars. Consumers apparently only get a cover for the wiring loom hinge; the other one goes bare.
Interestingly, we had a somewhat similar issue with VW when a Passat press car proved to be equipped in a spec that is not actually available at dealerships (V6 with 17-inch wheels). When we noticed the discrepancy (and by we, I mean Michael Karesh, of course), we asked VW how we had received a non-representative model, to which they replied that press fleet vehicles were “early builds” from the new Nashville plant, and therefore not necessarily in market-ready spec. Which is a reason, but not an excuse: the media can only serve consumers well if we’re given representative cars to review. So, while these discrepancies are all relatively minor, details matter when you’re spending upwards of $20k on something. Hopefully VW and the rest of the industry will learn from this experience and make greater efforts to equip their media cars exactly to dealer spec. One also hopes that Motor Trend has driven at least one Passat that’s not from a press fleet…
Ask a Westerner what he or she thinks of Chinese cars, and the answer will be predictable: unsafe. Thanks to China’s slower crash test speeds and low-cost manufacturing, Chinese cars have largely not met global safety standards, and Youtube videos have long cemented the impression that Chinese cars are fundamentally unsafe. But as with any growing industry, the Chinese are stepping their game up. Far from a global embarrassment, the latest Geely Emgrand even earned four stars in Euro-NCAP testing. That’s not enough to erase China’s reputation for unsafe cars, as five star performances are rapidly becoming the standard in Europe. But it is enough to match the achievements of other modern European cars, most notably the updated Fiat Panda. Though the Panda is considerably smaller than the Emgrand, and therefore is at something of a safety disadvantage, the price difference between the two cars is likely to be negligible, making the comparison quite interesting. Meanwhile, there are other four-star (or should we call it “Chinese Quality”?) cars in NCAP’s latest round of testing, including the considerably more expensive Jaguar XF and Jeep Grand Cherokee. Check out the reports for the XF, Panda and Emgrand in the gallery below, or surf on over to Autobild for more details on where these cars came up short on safety…
With a tough negotiating session with its traditional employers now complete, the United Auto Workers are turning their focus back to the year’s primary goal: organizing the transplant factories. 2011 was supposed to be the year in which the UAW took down “at least one” foreign-owned auto plant, with the union’s boss even going as far as to say
If we don’t organize the transnationals, I don’t think there is a long-term future for the UAW
But as we found, the UAW is not welcome in the South, where most of the transplant factories are found. And with Honda, Hyundai, Toyota and VW all rejecting the UAW’s advances in some form or another, the union’s options are fairly limited. So instead of taking on the factories directly, the UAW is bringing back a questionable tactic from the days when it was misleadingly bashing Toyota for “abandoning” the NUMMI factory: they are taking the fight to dealerships.
Say what you want about Saab fans, the guys have some dedication. At a time when most have finally accepted the fact that Saab is at the end of the line, Saab’s hard-core “dead-enders” are taking up their social media arms to rescue their beloved brand. After all they have a perfect opportunity: after months of wading through a quagmire, uncertain whether to support Victor Muller, Vladimir Antonov, or one of Saab’s Chinese suitors, all Saab fans can now rally against their old enemy, GM. Long blamed for Saab’s decline despite the fact that the brand’s peak sales came under its ownership, GM has long been the bête noire for Saabistas. And with GM now taking the wheel of Saab’s fate, Saab’s rabid fans have taken over GM’s Facebook wall, posting images of their favorite Saabs and demanding The General “let Saab go.” Will it be enough to convince GM to go against its carefully-crafted Chinese relationships and interests by giving Saab carte blanche to ship its technology wherever its new Chinese masters want? Don’t count on it. But for the moment GM has to sit through the online equivalent of an “Occupy” protest.
Remember the uproar over Unintended Acceleration in Toyotas? After more than a year of investigation, NHTSA has yet to find a definitive cause for the furor… although the experience was not an entire waste. In fact, the most interesting result of the entire situation was that it cast light on NHTSA’s inefficacy as much as it did embarrass Toyota’s quality control. And to help clarify what exactly the lessons of the Toyota flap were, the DOT’s Inspector General has released a report detailing its criticisms of the federal safety regulators. According to the report [PDF], NHTSA’s Office of Defect Investigation (ODI) has not
- Adequately tracked or documented pre-investigation activities.
- Established a systematic process for determining when to involve third-party or Vehicle Research and Test Center (VRTC) assistance
- Followed timeliness goals for completing investigations or fully implemented its redaction policy to ensure consumers’ privacy. [Ed: gee, you think?]
- Established a complete and transparent record system with documented support for decisions that significantly affect its investigations.
- Developed a formal training program to ensure staff has the necessary skills and expertise.
From the first part of this clip from Bob Lutz and Elon Musk’s recent appearance on the Charlie Rose, in which the two discuss “The CO2 Thing,” you might guess that the two are at odds with each other. After all, Bob’s the gruff, “Global Warming is Bullshit” type and Elon is the sensitive, change-the-world type. But by the end of this brief clip, the two industry mavericks are falling all over themselves with mutual admiration. But then, both have learned from the other (however indirectly) over the past few years: Lutz’s legacy of the Volt was in part motivated by Musk’s endeavor, and Musk himself has a lot more respect for Detroit’s “old school” manufacturing know-how now that his firm is actually trying to build its own cars in volume. It’s a study in contrasts watching these two iconoclasts from such separate worlds going at it… and yet you get the distinct impression that these two guys aren’t quite as different as you might think.
Watch the complete Musk-Lutz interview here.
Watch Lutz’s one-on-one interview here.
If the American manufacturers had gone years ago to the government and said, ‘Listen, we have a huge project’ – electric cars, for instance, the government could at least have studied it. But they never tried.
Take the Chevrolet Volt (extended-range electric vehicle launched in 2010). Without government help, at least in the developmental stages in which certain economies of scale must be reached, it is too expensive. It’s just another example of the American industry being too late. They have missed many trends.
Because the sign of an innovative automaker is entanglement with the government… just ask Blain’s compatriots (and former colleagues) at Renault! Oh, and incidentally, Detroit did approach the government for help developing green cars back in the 1990s and managed to waste a cool billion dollars building three prototypes (see: PNGV). But there I go taking Blain at his word… when he’s already walking back his nonsensical comments.
Like most corporate trends, the rush to social media is often little more than an opportunity for new consultants to sell common sense packaged in the buzzwords du jour. And though it’s easy to just laugh off the process as just another fad, it’s important to remember that common sense is in relatively short supply these days… if the only way to get it across is to punctuate it with words like “engagement” and “voice share,” so be it. And because social media is forcing companies to come to grips with every possible kind of feedback, the trend is actually helping validate the hard-hitting editorial approach that TTAC has long embraced. At Motor Trader’s social media conference, Richard Anson, CEO of the consumer review site Reevoo, explains the simple truth:
Social content will help drive sales so trust and transparency are vital; we all trust our peers more than any vendor or brand. Negative reviews are good for business. Retailing is all about transparency so perfection is not credible. Customers expect and want negative reviews and they give dealers a great opportunity to engage.