5th March 2008

Daily Podcast: Failing Upwards

Watching Rick Wagoner is like listening to some weird ass fairy tale: the Emperor’s New Car Company. Only no one’s saying Wagoner’s buck naked (present company excluded) and GM isn’t new, it’s old. As my father says, the only thing worse than getting old is the alternative. GM under Wagoner’s administration seems Hell bent on exploring the alternative. Did you know that GM’s market cap has shrunk by two-thirds since Wagoner assumed control? Did you know that the only reason the American automaker  isn’t ‘t in worse shape is that Wagoner sold EVERYTHING? Wagoner knows that and more, ’cause he’s an accountant. In fact, Wagoner was GM’s Chief Financial Officer (CFO) before he ascended to the Chief Executive Officer (CEO) spot. And now he’s chosen his CFO to be GM’s new CEO; only he’s calling Fritz the new COO, ’cause, well, he’s still CEO. So here we have not one but TWO beancounters at the top of GM. Who’ve let a nutcase named Bob Lutz (winner of TTAC’s Bob Lutz award) decide what kind of cars to build. At a time when their North American market share is slipping, slipping, slipping… into the future because, and let’s be Frank here, the company forgot how to build competitive cars. Or price them. Or brand them. Or advertise them Or… Doh! Anyway, as long as Wagoner’s at the top of GM, you can be sure of one thing: someone somewhere will be cooking the books. 

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5th March 2008

Dorset Safety Camera Partnership on the Hook for $2.97m

In the past 10 years, more than twenty-five thousand drivers have been caught by a speed camera in Chideock (pronounced ‘Chiddick’). According to the UK’s Daily Mail, a location marking one part of the road’s 30mph zone was defined as “Seatown Road.” Problem: there’s no such place. The road’s real name is “Duck Street.” The discrepancy came to light when Alan Dawe appealed his speeding conviction. The judge in the case threw out the ticket, ruling that “We cannot be sure the stretch of road is [speed] restricted.” The Dorset Safety Camera Partnership (DSCP) has admitted that thousands of motorists were fined £60 in error. If all of those drivers appeal, the partnership would owe them £1.5m (U.S. $2.97m). Shouldn’t the points be removed from offenders’ licenses and the money be refunded automatically? And what about raised insurance premiums? And let me guess where the refunds will come from (now that the money’s already spent): taxpayers. Meanwhile, guess what Auto Express discovered when they asked 100 city councils how they were spending the money from a multi-million pound “road safety grant?” Yup, speed cameras.

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5th March 2008

Taking Care of Business, Chinese Style

BusinessWeek describes the experience: When you arrive at the dealership, you’re checked in at the gate. You’re escorted into the showroom, where you’re greeted by name. Gentle tunes waft from a baby grand piano in the corner. In the service department, you find leather couches, coffee, snacks and internet access. When your new car is delivered, it’s wrapped in a red ribbon and presented in a ceremony with friends and family present. Rolls? Bentley? Maybach? Nope. Toyota. In China, the Toyota Camry is a high-end car, and the dealerships treat customers accordingly. The salesmen don’t pressure the customers because that’ll make them think there’s something wrong with the car, and they’re available to take care of customers’ needs 24/7. The down side? Even the top salesmen make only about $14 commission per car, and that’s only if they manage to sell extras like GPS and backup sensors; otherwise they clear about $7. Perhaps they could make a bit more money running seminars on how to treat customers like customers instead of victims for their American counterparts. 

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5th March 2008

Leasing Companies Sue Mercedes, BMW, and the Canadian Government

Two leasing companies are taking issue with Canada’s restrictions on importing vehicles from the U.S. Globe and Mail reports Fournier Leasing and Canadian Auto Associates have filed a class-action lawsuit against Transport Canada and the Canada Border Services Agency alleging they’re part of a conspiracy to keep vehicle prices high. BMW Canada, Mercedes-Benz Canada and Mercedes-Benz USA are also named in the suit. The leasing companies claim Canadian import requirements reduce competition and raise prices 20 to 35 percent above similar U.S. models. They also say government restrictions on importers add additional costs. M-B Canada had no comment. BMW Canada said they weren’t aware of the lawsuit, which seeks damages in excess of $1b.

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5th March 2008

Bentley Goes Green

Green has always been an essential part of the Bentley experience… lots and lots of green. But today the British automaker unveiled its plan to join the wave of manufacturers offering more environmentally-friendly drivetrains. You know; eventually. The German-owned British brand will begin its transformation from maker of CO2-spewing playthings for the over-moneyed set to eco-conscious planetary champions by offering a flex-fuel option next year. (”James, take the Bentley down to London and fill it up with ethanol”). By 2015, Bentley will provide E85 compatibility across their entire lineup (all six models). And while you’re recovering from that shock, the Bentley Boyz will begin development of an unspecified drivetrain that will deliver 40 percent better fuel efficiency than their normal gas-sucking mills. In the short term, Bentley says its socially responsible engineering efforts will focus on enhanced engine management; new, improved transmissions and drivelines and weight reduction. Torque about greenwashing…

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5th March 2008

Ringing the changes

Here’s a thought. Audi is the new BMW. And not because Audi is now as classy and desirable as BMW. Nor because it’s now as sporty. It’s because Audi can now squarely lay claim to the universal truth that unites all BMWs in the eyes of Joe Public. They are driven by tossers.

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5th March 2008

Piech’s vision

And thus the minnow swallows the whale. I see the widely expected move by Porsche to take a majority shareholding in Volkswagen has finally been signalled by Porsche and just awaits some regulatory rubber-stamping before it happens. And Scania is under Volkswagen control, cooperation with MAN now on the cards. That’s some industrial grouping that is coming together.

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5th March 2008

Ford Pushing Buyouts


Via
NY Times

By BILL VLASIC

WOODHAVEN, Mich. — The Ford Motor Company is applying the hard sell these days — piling on incentives, doling out marketing DVDs and brochures, and making offers it hopes are too good to pass up.

But Ford’s big new push is not to sell cars. Instead, it is trying to sign up thousands of workers to take buyouts, partly by convincing them that their brightest future lies outside the company that long offered middle-class wages for blue-collar jobs.

So, Ford is pitching a buffet of buyout packages that are easily among the richest ever offered to factory workers, including one-time cash payments of $140,000 or college tuition plans for an entire family.

The automaker is also putting on job fairs in its plants and mailing each of its 54,000 hourly workers a feature-length DVD, titled “Connecting With Your Future,” that extols the promise of new careers beyond the assembly line.

Last Friday, inside a huge sheet-metal stamping plant in this industrial center south of Detroit, Ford workers spent their lunch hour perusing opportunities to go back to school, hire on at growing companies and open fast-food franchises.

“I am taking it seriously, but it’s really hard to think about leaving,” said Jerry Thomas, a 37-year-old millwright with 12 years at Ford. “The only thing that would make me do it is the uncertainty. We just don’t know what’s going to happen with Ford.”

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    5th March 2008

    Car Lust–Jeep Wagoneer

    Just to warn you, this post will be a good bit more maudlin and personal than usual. If you’re not in the mood for that, I’d advise you to check back tomorrow for the normal dose of automotive irrelevancy usual in this space. If you want to stick with this, just bear with me–I’ll get to the Wagoneer eventually.

    My maternal grandfather died in 2006. It was one of those situations where everybody agreed that it was for the best, because his quality of life had deteriorated somewhat in the final year or so, but yet we all knew it wasn’t for the best for us, because we had lost a great man who we all loved.

    My grandfather was one of those rare people who bring absolute decency to every moment of their lives. He was polite without being weak; thoughtful without putting on airs; earnest without being boring; and funny without being loud or hurtful. He could dissolve a room in laughter with his bone-dry quips (often exchanged in rapid fire with my VW Rabbit-ice racing uncle), but he was never thoughtless and abhorred flashy loudmouths. He read Louis L’Amour books and was both as taciturn and as mentally strong as any L’Amour hero. Everything about my grandfather was substance. For a young boy growing up, trying to learn how to be a good man, he was a fantastic role model.

    My grandfather found his perfect automotive analogue in the straightforward, honest, and capable Jeep Wagoneer. He was a Wagoneer guy through and through. He owned at least five, possibly six, different Wagoneers over the course of several decades. Inspired by his example, my parents owned one, my uncle owned one, and my paternal grandmother owned two.

    The Wagoneer was produced with remarkably few revisions from 1963 to 1991, through four separate decades and three different corporate parents (Willys/Kaiser, AMC, and Chrysler). Most agree that it was the original SUV.

    Like today’s SUVs, the Wagoneer had a five-door configuration and could carry a family in relative comfort, as well as cargo in abundance. However, in stark contrast to today’s posh car-based SUVs, the Wagoneer was a demon off-road, tough as nails, and so solid that it was seemingly hewn from granite. It was so tough that my parents skipped out of their high school homecoming dance to go snowdrift-busting during a blizzard in one of my grandfather’s early Wagoneers. Evidently this is what passed for fun in 1968 South Dakota.

    I like my trucks unashamed of their truckishness; the Wagoneer is tough, stylish in a bluff, straightforward way, and eminently useful, with no pretensions of being a car. It was perfect for my grandfather.

    Obviously, Wagoneers are near and dear to me; I would love to own one. On my grandfather’s passing, I wanted to purchase his Wagoneer, but I ran into some difficulties. Namely, I ran into a sinister cabal made up of my grandmother, my mother, and my wife, who all agreed that the Wagoneer was too unreliable and too expensive for my young family.

    Too unreliable? Too inexpensive to maintain? They made the Wagoneer sound like an incredibly dangerous vehicle, carved haphazardly from plutonium by mental patients, and with high explosives strapped under each seat.

    Compared to a Toyota Camry, perhaps that’s true, but I’m on record as lusting after Citroens, Fiats, MGs, Saabs, Renaults, and Alfa Romeos. In that context, the Wagoneer runs like an atomic clock. However, the cabal swatted that argument down with many words of one syllable apiece, delivered with incredible force and authority. So, unfortunately, my pursuit of a Wagoneer with which I can carry on the family tradition will need to wait for another time.

    Wagoneers do have a cult following and are still fairly common in places where rugged strength and traction are necessary–primarily in cold-weather areas, and close to the wilderness. Many have been worked hard and been harshly treated, but there are companies that refit, refinish, and restore Wagoneers to sell as basically brand new vehicles.

    A few years ago when I was noodling around looking for a nice used Wagoneer to buy, I stumbled across Wagonmasters, which completely refits and sells Jeep wagons. At first the prices took my breath away–$30,000 for a 20-year-old used Jeep?–but the Wagoneers they sell really do look and run like they are brand new. GrandWagoneer.com seems to offer a similar service, with a similarly obsessive attention to detail. Evidently I’m not the only loon out here with a passion for Wagoneers.

    Most people seem to prefer the last Grand Wagoneers made, with wood side trim and power windows and locks. I think the most attractive Wagoneers are those from the 1970s and 1980s, just because the lines are so clean and uncluttered. Really, though, the Wagoneer changed so little in its 28-year run that if you like one of them, you’ll probably like all of them.

    The top pictures here are from a particularly pretty red ‘86 Wagonmaster woodie that is the spitting image of my grandfather’s last Wagoneer. The remaining woodie photos are example photos from GrandWagoneer.com, and the bottom wagon is actually a ‘77 Wagonmaster Cherokee that is as representative of anything I could find of an older Wagoneer.

    –Chris H.

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    5th March 2008

    Your Subaru, Snow Tires and Chains Explained

    Your Subaru is the best choice you can make when it comes to “what to drive in the snow”. All-Wheel Drive is a superior method of traction and there is no better example of this than driving the Subie up the pass to go skiing or snow boarding. We get a lot of questions about tires and chains so I thought I would provide some tips.

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