Terry McAuliffe Fires Back At Automotive News

Edward Niedermeyer
by Edward Niedermeyer

Just as Automotive News [sub] failed to cite Bertel’s ahead-of-the-game reporting on Terry Mcauliffe’s GreenTech Automotive firm as the inspiration for its coverage, McAuliffe himself has decided to ignore TTAC’s leadership in order to lash out at the leading industry paper’s write-up on his highly suspect venture. In response to AN [sub]’s piece titled When you do the math, promoter extraordinaire Terry McAuliffe’s grand hybrid vehicle plan just doesn’t add up, the former Clinton fundraiser and DNC chair has written a feisty letter to the editor [sub], in which he argues

The Sept. 5 article about our efforts at GreenTech Automotive (“Real deal?”) stands in stark contrast with the Aug. 28 article in which you reported on partnerships between Toyota and Ford, Tesla, Aston Martin, Lotus and Salesforce.com (“Doing deals, Akio style”). The latter story says Toyota CEO Akio Toyoda “is breaking tradition to transform his ossified giant into a nimble competitor.”

Nimble competition is a key to success in our modern age of change and innovation. Yet you seem to take GreenTech to task for attempting just that. We aren’t trying to be GM, and we never plan on being bailed out by the U.S. government. We are embracing a different, leaner business model in which our world-class partners will play a key role in our success, and we are doing it with private capital.

Developing a car from the ground up is an incredibly difficult and technically complex task, even for industry giants in operation for more than a century. Yet you criticize GreenTech for beginning with a neighborhood electric vehicle as a path to producing a fully certified, quality hybrid or electric vehicle; in other words, you criticize GreenTech for thinking big but starting small.

Frankly, your negativity emboldens us. We remain excited about our progress, from our new operations in Mississippi to our 8.8 million-square-foot plant under construction in Ordos, China, to the new distribution agreement in the very green country of Denmark. We remain entrepreneurs in our unwavering commitment to American job creation, quality products and doing business in the new ways globalization demands. Every one of our cars will be built with a spirit of courage, perseverance and vision for an affordable, green future.

With all due respect to McAuliffe, that defense is as unimaginative as the EV hype game he’s playing. And since he refuses to substantively address the criticisms leveled at him, I’ll simply take this opportunity to repeat what I wrote the last time I looked at this story, to wit:

I’ve only been blogging about the car industry for about three and a half years, but I’ve seen this movie way too many times before. If you’ve missed out on the ZAP saga, to cite the most infamous example of the “NEV today, domination tomorrow” scam, read this, this, this and this for a primer on how this game works. It’s not pretty, and I hoped it was left behind in 2008, when it still fooled a few people. Today there’s no excuse for anyone to be taken in by such an unimaginative, played-out scam.


Edward Niedermeyer
Edward Niedermeyer

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  • Ronnie Schreiber Ronnie Schreiber on Sep 16, 2011

    The longer I think about it, the less inclined I am towards any subsidies or tax breaks or incentives. All those things done by government tend to distort markets and create all kinds of artificialities. Provide infrastructure perhaps, but don't pick winners and losers. If technologies and business plans work, they'll be successful. Frankly, I'd rather have the government funding research like at Lawrence Livermore and some of the other federal tech incubators than subsidize businesses. To be sure, I favor a system with as minimal business taxes and fees as are practicable. Have a simple tax system that encourages enterprise and then don't distort the market with government intervention.

  • Da Coyote Da Coyote on Sep 16, 2011

    I'll get just slightly political here - only to mention that folks who are closely associated with the present administration (or the Clinton one) were not exactly the sharpest knives in the drawer when it came to science, economics, or business. (Which is why they were in politics.) I wish no private enterprise ill, but Terry Mc C couldn't make a light bulb light - given batteries, wires, and the bulb. He has no business in the automobile industry....well, actually....he has no business in business,

  • Zipper69 "At least Lincoln finally learned to do a better job of not appearing to have raided the Ford parts bin"But they differentiate by being bland and unadventurous and lacking a clear brand image.
  • Zipper69 "The worry is that vehicles could collect and share Americans' data with the Chinese government"Presumably, via your cellphone connection? Does the average Joe in the gig economy really have "data" that will change the balance of power?
  • Zipper69 Honda seem to have a comprehensive range of sedans that sell well.
  • Oberkanone How long do I have to stay in this job before I get a golden parachute?I'd lower the price of the V-Series models. Improve the quality of interiors across the entire line. I'd add a sedan larger then CT5. I'd require a financial review of Celestiq. If it's not a profit center it's gone. Styling updates in the vision of the XLR to existing models. 2+2 sports coupe woutd be added. Performance in the class of AMG GT and Porsche 911 at a price just under $100k. EV models would NOT be subsidized by ICE revenue.
  • NJRide Let Cadillac be Cadillac, but in the context of 2024. As a new XT5 owner (the Emerald Green got me to buy an old design) I would have happy preferred a Lyriq hybrid. Some who really like the Lyriq's package but don't want an EV will buy another model. Most will go elsewhere. I love the V6 and good but easy to use infotainment. But I know my next car will probably be more electrified w more tech.I don't think anyone is confusing my car for a Blazer but i agree the XT6 is too derivative. Frankly the Enclave looks more prestigious. The Escalade still has got it, though I would love to see the ESV make a comeback. I still think GM missed the boat by not making a Colorado based mini-Blazer and Escalade. I don't get the 2 sedans. I feel a slightly larger and more distinctly Cadillac sedan would sell better. They also need to advertise beyond the Lyriq. I don't feel other luxury players are exactly hitting it out of the park right now so a strengthened Cadillac could regain share.
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