Car News Articles

Basil “Buzz” Hargrove has been active in the Canadian Auto Workers (CAW) since its inception in 1984, including sixteen years as President. To put that in perspective: during Buzz’ tenure at the top, he’s seen five Canadian Prime Ministers, five Ford CEOs, four Chrysler CEOs, four GM CEOs and countless union actions. As I sift through the archived newsbites that capture his soon-to-be legacy, I’m left a little overwhelmed. For better or worse, Hargrove’s fingerprints are all over the Canadian automotive lanscape. And tomorrow, at 11 AM in Toronto, I’m sitting across the table from the man himself on your behalf. So I turn to you, our Best and Brightest, for a little help. What should I ask Buzz Hargrove? Obviously, I can’t promise I’ll forward every question posed here. But if the deal goes down (i.e. Buzz doesn’t read this blog post before tomorrow), you know I won’t shy away from the tough questions. And neither will Hargrove.

Anyone for higher prices?


28th July 2008 14:44

I walked past a used car lot yesterday and it looked very much like a buyers’ market - especially for the larger cars. The ‘bargains’ reflect current economic realities. Big cars come with big running costs (not just thirstier engines, but increasingly punitive taxes in Europe). And at this point in the economic cycle consumers aren’t exactly in the mood to spend, in any case.

Across the auto industry managing cost, especially in manufacturing, is a big issue. If your raw materials are going up in price there’s not a lot you can do about that. It’s the laws of supply and demand at work on steel and energy inputs. Squeezing your suppliers on price and encouraging them to make productivity gains can only take you so far. And the same goes for your own productivity gains. There are limits to what can be achieved.

Last week Volkswagen announced some pretty good financial results. They’re about as good as could reasonably have been expected and our financial analyst, Rob Golding, was suitably impressed.

He noted however, that VW would like to raise prices on its cars to pass on some of the increase in raw materials prices that it is having to take on the chin. Other manufacturers would like to do the same. Indeed, CEOs of car companies seem agreed that it would not be unreasonable to increase prices a little.

However, making car price increases stick in the current economic climate would be like defying gravity. The markets know that (take a look at Fiat’s share price - it has halved over the past year). Even car company CEOs who have walked on water in the past should perhaps be careful with profitability forecasts right now.

GOLDING’S TAKE: VW now stands for…very well, thank you

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Technology Kills

By Vance Ehmke

While I’m a firm believer in technology and rapid adoption of it, after this wheat harvest I became aware of technology’s dark side. Instead of increasing productivity and efficiency, it can kill it.

At one point during harvest, I was sitting in one of four new high capacity, high tech John Deere combines with 40-foot draper heads as the operator finished a field. In the olden days all we had to do was drive the machines across the road and start on the next field. That should have taken just one minute.

However, because we were changing fields, a new field ID had to be entered in the combine’s computer system. But since only one of the four operators knew how to key in the new codes, all four combines sat there probably a half hour while the one skilled operator went from combine to combine making the adjustment.

This is the equivalent of one very expensive combine sitting idle for 2 solid hours during the peak of harvest. What a drag on productivity!

Complete Article

Being a driving enthusiast in Australia can be damn frustrating at times.

The just-launched Ford Focus RS is the latest desirable performance car that won’t be boarding a ship for our shores.

Ford Australia’s product planning department is already in my bad books for packaging its range-topping Mondeo with the wrong badge (XR5 Turbo) and wrong transmission (manual) when it’s more cruiser than hot sedan, and for taking too long to launch an update of its Territory SUV when its sales are continually being eroded by newer rivals.

And now Ford in Australia is snubbing the Focus RS.

FPV boss Rod Barrett has told Drive.com.au that Ford Australia’s go-fast division would struggle to make a profit by importing the RS here, and instead says a business case would be far more effective by building a hot-hatch based on the next-generation Focus that will be built in Australia from 2011.

Unfortunately that means waiting at least another three years before Ford offers what would potentially be a more affordable (albeit front-drive) rival to the likes of the Mitsubishi Lancer Evolution and Subaru Impreza WRX STI (both $60,000 and AWD). Expect it to cost more than the $43K HSV VXR, however, because it surpasses the hot Astra in both performance and equipment.

The Focus XR5 Turbo is already a decent hot-hatch that’s competitively priced, but it’s easy to see how it could gain considerably more performance in terms of both power and handling.

Its Volvo-sourced 2.5-litre five-cylinder turbo engine is brilliantly meaty and flexible, and it’s a salivating prospect to think of how this engine will perform with extra power in the Focus RS.

The RS badge won’t be adorning an FPV Focus, though, because the company believes it’s too Euro-centric – a badge enshrined in legend because of cars like the RS200 and Sierra RS Cosworth of the ’80s.

I understand why Ford is reluctant to bring the Focus RS to Australia, but it’d be nice to see a car maker just occasionally using its heart rather than its head.

It’s the kind of move that helps to instill passion in a brand.

But what’s your opinion? Should Ford bring the RS to Australia until the FPV version is ready?

And what should FPV call its own Focus mega-hatch if the RS badge is being ignored?

Jez Spinks