While America Slept. Saturday, November 22, 2008

Bertel Schmitt
by Bertel Schmitt
Even over the weekend, TTAC never sleeps. While America Slept (WAS) is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Guarantee: Contents 100 percent car related (well, except for one.)

Opel: “We’re doing great.” GM should send Opel Chief Demant to DC. He knows when to say the right things: “All jobs are safe “(at least until 2010.) “We’ve got enough cash” (at least until next year.) “GM doesn’t owe us money” (at least not immediately.) “We don’t need a loan guarantee” (we didn’t really mean it.) Germany’s government is now a) a bit miffed because they thought it was urgent, b) relieved because they can go Christmas shopping with the money saved. Automobilwoche (sub) has the story.

Germany goes to the polls over Opel: Wary of wearing Opel’s new rose-colored glasses, Automobilwoche (sub) is running a poll. The question: “What should happen to Opel?” Here’s the tally so far. “Opel goes it alone” – 50 percent. “Opel remains part of GM” – 15 percent. “Opel merges with BMW” – 15 percent. “Opel merges with Fiat” – 13 percent. “Opel merges with Daimler” – 7 percent. Don’t blame us, just reporting the news.

Just say no: Bernhard Mattes, chief of Ford Motor Co.’s German unit, would also make quick friends in DC. He says that Ford Deutschland can survive just fine, thank you, without a bailout from the German government , AP reports via Yahoo. Ford wouldn’t turn down a share of the loan package by the European Union, if offered. The consensus in Europe is the package is dead in the water, because it needs the consensus from the non auto making members. Dream on. And read on …

Europe eats less carbs: Europe’s four big auto making nations have reached agreement on cutting greenhouse gas emissions from cars. Last month, Britain, France and Germany agreed to stick to their guns and CO2 targets, phasing them in between 2012 and 2015. Now, they talked Italy into it also. The plan needs the approval of other EU member states and the European Parliament. This time, an easy vote for the non auto making nations.

GM opens new plant – in Russia: Despite being destitute in America, GM remains bullish on Russia. They just opened their second plant this month. This time in Kaliningrad, where 30,000 Lancettis are planned to be cranked out a year. And that’s just for starters, says the Automobilwoche (sub) Kaliningrad happens to be the same place where Russia is stationing its new anti-ballistic-missile-anti-missiles, so GM’s plant should be safe from intruders.

VeeDub to cull 500 dealers: Germany’s tortured car dealers are waking up to reading more dire news in Das Autohaus. VW wants 500 of them dead. The euphemism factory calls it a “sliding adjustment.” Wolfsburg has allocated €200m for golden parachutes. TTAC hears that dealers will take the money, run, and continue servicing cars. “This is where the money is anyway,” says one. Also, VW Germany will emulate GM, and bundle their former separate (and often antagonistic) units of Marketing, Sales, Service, and Dealer Management into one big (or not) “Marketing and Sales” unit.

Less service from Audi: When VW does something, Audi does the same – slightly different. Audi wants to terminate 300 service centers, says Das Autohaus. Service is profitable, and with 300 less, more profit for the survivalists. Or so the thinking goes in Ingolstadt. A carnage of service centers will be harder to pull off than a massacre of hapless dealers. There is something called EU law. To service a brand, you must fulfill some basic standards, and you are golden. Ingolstadt will see resistance from the wicked wrenchies on the warpath – and possibly Brussels.

Good night, Vietnam: This time last year in Vietnam, demand for cars was so high that customers had to pay a 30 to 50 percent deposit and then wait at least three months for delivery. Now, dealers are happy if they sell a car a month, reports Than Niem from Ho Chi Minh City. Vietnam’s new car sales fell by 37 percent in October.

Slimy business: “By removing the spare tire and tools, motorists and auto manufacturers can reduce overall weight of the vehicle by an average of 70 pounds, resulting in better fuel efficiency,” suggests Accessories Marketing Inc. in the International Business Times. Instead, they propose to carry their Slime SafetySpairTM flat tire repair kit. Got a flat? Slime the sucker.

Are you …. drunk? Japanese Bandai will release next month a body wash that gushes out bubbles from its beer-bottlelike container, allowing users “feel as though they are spraying beer on themselves just like baseball players do when celebrating a championship victory,” The Nikkei (sub) telegraphs. What does this have to do with cars? Nothing. You should know better: Friends don’t let friends drive drunk.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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 2 comments
  • Rpn453 Rpn453 on Nov 22, 2008

    I'll never own a car without a spare tire. That slime crap only works in some situations, and makes a mess out of the tire.

  • Y2kdcar Y2kdcar on Nov 22, 2008
    Just say no: Bernhard Mattes, chief of Ford Motor Co.’s German unit, would also make quick friends in DC. He says that Ford Deutschland can survive just fine, thank you, without a bailout from the German government, AP reports via Yahoo. Ford wouldn’t turn down a share of the loan package by the European Union, if offered. The consensus in Europe is the package is dead in the water, because it needs the consensus from the non auto making members. Dream on. And read on … If I were Alan Mulally, Herr Mattes's name would be first on my list of salaried employees to be involuntarily terminated in December.
  • Fred I would get the Acura RDX, to replace my Honda HR-V. Both it and the CRV seats are uncomfortable on longer trips.
  • RHD Now that the negative Nellies have chimed in...A reasonably priced electric car would be a huge hit. There has to be an easy way to plug it in at home, in addition to the obvious relatively trickle charge via an extension cord. Price it under 30K, preferably under 25K, with a 200 mile range and you have a hit on your hands. This would be perfect for a teenager going to high school or a medium-range commuter. Imagine something like a Kia Soul, Ford Ranger, Honda CR-V, Chevy Malibu or even a Civic that costs a small fraction to fuel up compared to gasoline. Imagine not having to pay your wife's Chevron card bill every month (then try to get her off of Starbuck's and mani-pedi habits). One car is not the solution to every case imaginable. But would it be a market success? Abso-friggin-lutely. And TTAC missed today's announcement of the new Mini Aceman, which, unfortunately, will be sold only in China. It's an EV, so it's relevant to this particular article/question.
  • Ajla It would. Although if future EVs prove relatively indifferent to prior owner habits that makes me more likely to go used.
  • 28-Cars-Later One of the biggest reasons not to purchase an EV that I hear is...that&nbsp;they just all around suck for almost every use case imaginable.
  • Theflyersfan A cheaper EV is likely to have a smaller battery (think Mazda MX-30 and Mitsubishi iMEV), so that makes it less useful for some buyers. Personally, my charging can only take place at work or at a four-charger station at the end of my street in a public lot, so that's a crapshoot. If a cheaper EV was able to capture what it seems like a lot of buyers want - sub-40K, 300+ mile range, up to 80% charging in 20-30 minutes (tops) - then they can possibly be added to some lists. But then the issues of depreciation and resale value come into play if someone wants to keep the car for a while. But since this question is asking person by person, if I had room for a second car to be garaged (off of the street), I would consider an EV for a second car and keep my current one as a weekend toy. But I can't do a 50K+ EV as a primary car with my uncertain charging infrastructure by me, road trips, and as a second car, the higher insurance rates and county taxes. Not yet at least. A plug in hybrid however is perfect.
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