• Car News Articles

  • TTAC Called It: GMAC Ceasing Leasing Tomorrow. Employee Car Discounts Next to Go?

31st July 2008

TTAC Called It: GMAC Ceasing Leasing Tomorrow. Employee Car Discounts Next to Go?

We’ve just heard from our sources that GMAC is about to announce that it will no longer offer lease deals on the Yukon, Yukon XL, Suburban, Tahoe, all full-size trucks, Envoys and TrailBlazers as of tomorrow. The General’s captive finance arm will also raise the “money factor” (the leasing rate) on Cadillacs by two percent. Needless to say, this will be an enormous blow to GM’s sales. We’re told that GM has called a meeting of all mid-western dealers at the Rock Financial Showcase for the same day, [presumably] so that marketing maven Mark LaNeve can announce the incentive deals that will replace leasing. We also hear that GM is about suspend employee pricing on most car lines, such as the Chevy Cobalt, in order to make money where they can. We’ll have more info as we get it. [hat tip to you-know-who-you-are]

Read more

posted in Car News Articles | 0 Comments

31st July 2008

Daily Podcast: A Pom-Pom Free Zone

I’ve been exceptionally busy on the flame-suppression front. This week, I’ve removed dozens of offensive comments, and banned more than a few unruly malcontents from our door. I’m not surprised. It’s a painful time for anyone who had faith in the domestic automakers. The bad news coming from Detroit is coming fast and it makes them furious. At us. But a lot of the boneless chickens we’ve identified here over the last four years– giving credit to anyone with a pulse, bad branding, lousy product decisions, and on and on– are coming home to roost. Truth to tell, it’s also a good time for TTAC. Our visitor numbers are up. Nothing rad. Just the same organic growth. Which is fine by me. It means we’re building a solid base of readers who “get it.” And to this group I promise more solid journalistic work like Samir Syed’s excellent interview with CAW leader Buzz Hargrove. We’re limited by finances, but wherever we can, we will break news. Meanwhile, we, like you, watch the scene with an increasing sense of foreboding. Through it all, we’ll be here, telling the truth about cars. 

Read more

posted in Car News Articles | 0 Comments

31st July 2008

How to Lose an AutoCross for Less Than $100

A month or two ago, I had the brilliant idea to enter a rental car into a car show, and see what I would win. The Avis Hummer H3 I spent untold hours detailing won first place in the truck category. Being only slightly insane, I decided to try another rental car challenge (due to my Porsche still being in various pieces), and enter a weekend special into an SCCA Autocross. Nearly winning my division last year, I believed that winning was mainly due to the driver, not the car, so of course I would come out on top no matter what I was driving. $78 later in rental fees and race entry fees, I had a 2008 Subaru Outback, with a 173bhp, AWD and lots of cargo space. Despite ripping nearly 150lbs of weight out of the car, the Subie couldn’t have been more disastrous. The Sportshift always held the wrong gear, and wouldn’t let you shift manually under extreme maneuvers. The steering became so imprecise that I was no longer driving the car, I was guiding it. The AWD made the car understeer, or oversteer, in a completely unpredictable manner. The lack of low end power had me uttering strings of curses upon exiting nearly every corner. I was easily outrun by a similar 2.5-liter equipped Impreza. I was outrun by a Honda Civic, a Dodge Neon, and an automatic-equipped Toyota Echo. And then we loaded the wagon up with five people, kept to the starting line, and learned the joys of e-braking through the corners, where the Outback stopped skittering, and literally “hopped” around the bends. As a race car, the Scooby gets one-star. But I suppose you already guessed that.

Read more

posted in Car News Articles | 0 Comments

31st July 2008

GM Pays Oshawa Workers Even After Plant Closes

After accusations of “betrayal,” blockades by the Canadian Autoworkers union, threats of lawsuits against the union and sops tossed to the union, GM is moving ahead with plans to close their truck plant in Oshawa, Ontario. However, it looks like it’ll cost them a bit more than they’d anticipated. The Globe and Mail reports GM and the CAW have struck a deal whereby GM will add another model to the mix produced at the auto assembly plant there. Oh, and pay some workers for four years after the plant closes. The complete details of the deal will be announced to workers later today, but it includes paychecks for laid-off workers with 26 years seniority for four more years at 65 percent of their current wages. That makes them eligible for “a special retirement incentive applicable to people with 30 years of experience.” Workers with 27 to 30 years would also be paid until they reach the 30-year mark. In return, GM gets to keep building cars in the most expensive location in North America. Such a deal!

Read more

posted in Car News Articles | 0 Comments

31st July 2008

E85 Boondoggle Of The Day: Undersupply

Back in the day, T. Boone Pickens questioned why his then-boss, presidential nominee Bob Dole supported ethanol. Dole’s answer was telling. “Let me explain something to you about politics,” the Kansas Republican replied. “There are 21 farm states, and that’s 42 senators. Don’t waste any more of our time or your time telling us it’s a bad idea, because they’re going to do it.” And when politics trumps policy, you get stories like this one from The Oil Drum (TOD). With gas consumption likely to decline thanks to high prices, TOD wanted to know if federal ethanol mandates would sink with the market. The Department of Energy told them ethanol mandates are still set to increase, from 9b gallons this year to 12b gallons in 2011. Which raises a problem: what to do with it all. By DOE estimates, there won’t be enough gasoline to “absorb” that much ethanol in standard E10 blends in 2011. There’s also not enough E85 pumping stations (or “infrastructure”) for the corn juice. In other words, the feds are mandating more ethanol than we can use so that Midwest senators will be pliant for other senators’ pork projects. We’ve sure got this energy thing licked, huh?

Read more

posted in Car News Articles | 0 Comments

31st July 2008

Cabbie v sat nav

I created a competition during the week between Len Fox and my Mercedes-Benz C220 CDI Lifer’s COMAND satnav system.

Read more

posted in Car News Articles | 0 Comments

31st July 2008

Ford piles on the red ink

If ‘firms in the motor industry are good at losing money, but not good at going bankrupt’ as an equities analyst has just said, then maybe Ford can go to the top of the class after it’s latest results. Whatever the reasons for the ’special items’, the bottom line does look a little gruesome. As pessimism mounts over general market prospects for North America in 2009, a restructuring Ford and GM are acutely aware of the need to be credibly seen to have sufficient liquidity to ride out the hard times ahead and keep the Chapter 11 chatter down. Fine, and maybe Ford is keen to get the bad news behind it with some of these write downs. 


But what if 2010 shapes up as a stinker, too? What’s next to be cut and at what point are the cost cuts either building a scary looking deferred backlog of spending that will have to hit sometime or starting to impact the patient’s vital organs and long-term health rather than simply peripherals/redundant parts and the need for less internal working capital on lower production?  

US: Special charges plunge Ford $8.7bn into red in Q2

Read more

posted in Car News Articles | 0 Comments

31st July 2008

Reform Talk In Cuba Touches On Economic Efficiency


Via
Latin Business Chronicle

Is Raul Castro preparing the ground for more substantive, pro-market economic reforms in Cuba?

BY LATIN AMERICA ADVISOR
Inter-American Dialogue

Cuban President Raul Castro said [recently] that “socialism means social justice and equality, but equality of rights, of opportunities, not of income” and that “equality is not egalitarianism.” What is the significance of Castro’s comments? Is he preparing the ground for more substantive, pro-market economic reforms? What possible reforms do you see in the offing?

Dennis Hays, Vice President of Thorium Power and a former Coordinator for Cuban Affairs at the US Department of State: Raul will never be the public speaker his brother was, but that doesn’t mean he has nothing to say. In an address full of anecdotes and faint attempts at humor, he managed to get across a number of interesting points, including an ad-libbed admission that ’sometimes in socialism two plus two equals three.’ But after noting a number of ways in which the Cuban economy continues to be the most dysfunctional one this side of Zimbabwe, he finally got to the point—Cubans can expect to be taxed in the future for many of the things they take for granted now, and major discrepancies in income will become commonplace (starting, of course, to the advantage of the senior military).

  • Complete Article


  • Read more

    posted in Car News Articles | 0 Comments

    31st July 2008

    Car Disgust–1978 Chevrolet Monza Wagon


    At the end of the 1977 model year, GM discontinued the Chevrolet Vega. For 1978, the General would depend on the Vega-derived Monza to occupy the “compact” spot in the Chevy lineup. Needing a station wagon version to have a complete line, GM fitted leftover Vega wagon bodies with the “Monza S” front clip to produce the Monza Wagon.

    I had one, and it was the worst car anyone in my family ever owned.

    My father acquired it in 1980 from someone who worked at
    the Lordstown Assembly plant where it was built. The day Dad brought it home, we found an ice scraper in the glove
    box, an artifact of the previous owner. It was red, with a GM Assembly Division logo, and had a mysterious
    inscription: “GM LORDSTOWN MANAGEMENT TEAM - LET’S GET 150!”

    It looked harmless enough. As late-1970s domestic cars go, the Monza Wagon
    was actually rather attractive.

    Ours was a pleasant shade of dark brown with a beige interior, a
    combination that came off better than it sounds. There was chrome
    around the windows, but not too much. It had managed to escape the
    factory without being subjected to the indignity of optional vinyl
    woodgrain side trim.

    The front buckets were pretty good for OEM seats. The rear seat was
    small, but livable. The cargo area was big relative to the car’s
    overall size. If you folded the rear seat down it was positively
    enormous–and anything that still didn’t fit in there could be lashed
    to the handy roof rack.

    To point out these virtues is not to damn the Monza Wagon with faint
    praise. That would be letting it off easy. The Monza Wagon deserves
    nothing less than full-throated condemnation–or perhaps excommunication would be more appropriate. The car was a gasoline-powered mortal sin.

    Let’s start with build quality. Well, actually, it would have been nice if someone at GM had
    started with build quality. Rather early on, I noticed that every time
    the car hit a pothole or rough patch of pavement the dashboard rattled
    and shuddered like it was falling off. This was Northeast Ohio, circa 1980-81, and rough pavement was the only kind we had. This made for a lot of rattles.

    The panel covering the Monza’s wide-screen horizontal speedometer was
    held on with either six or  eight small screws, I forget
    the exact number. To be more precise, it was supposed
    to be held on with six or eight screws. This one was held on with two;
    the holes for the others still had some plastic “flash” which gave mute
    testimony that the screws had never been installed.

    A trip to the hardware store and quick work with a screwdriver solved
    the immediate problem. Over the course of my relationship with this
    car, it developed many other squeaks and rattles and odd noises in the
    interior as things worked loose. In every instance, the problem could
    be traced to fasteners that had never been fastened.

    I knew dozens of people who worked at GM’s Lordstown assembly plant.
    They were friends of my father, neighbors, the parents and older
    siblings of my schoolmates, some of the non-college-track kids from my
    high school. They were good and decent people. It distressed me to see
    just how poorly they’d done their jobs, at least on the interior of
    this one little station wagon. Would it have killed you to put all the screws in?

    The Monza’s problems went beyond a few dozen missing screws. There
    were two major weak spots in the powertrain design, the engine and the
    transmission.

    The engine was a 3.2-liter pushrod V-6, an optional upgrade from the
    base model four-cylinder 2.5-liter Iron Duke. History records that the
    V-6 produced 90 horsepower. The Iron Duke produced 85 horsepower. That
    is to say, increasing the engine displacement by 28%, and adding the
    complexity of two more cylinders, resulted in a whopping 5-horsepower gain. The
    V-6 did, however, use a lot more gas!

    The V-6 produced more torque than the Iron Duke, 165 foot-pounds versus
    123. You might reckon that the increase in torque would make some
    difference in performance. Ah, but you would have reckoned without the
    transmission, one of GM’s ubiquitous 3-speed Turbo-Hydramatics.
    Whatever additional twist the V-6 may have generated compared to an
    Iron Duke was soaked up by the slushbox and never got to the rear
    wheels.

    As a result, on level ground, with the horsepower-sapping air
    conditioner shut off, using brake-torque launch technique (in which you
    hold the brakes on while revving the engine to get the torque converter
    spun up), the Monza Wagon could be made to do a frenzied 0-60 dash in … wait … here it comes … almost there … about 14 or 15 seconds.

    Yes, my friends, the six-cylinder Monza Wagon combined the raw
    pavement-burning muscle of the four-cylinder Iron Duke with the frugal fuel economy of
    a small-block V-8! There were VW Super Beetles that could’ve smoked it.

    It may have been slow off the line, but at least the handling was … almost adequate. Being young and foolish and a sports-car wannabee,
    I tossed it down twisty back roads at speeds that would have deeply
    concerned both my Dad’s insurance agent and the local constabulary, had
    either of them caught me doing it. The Monza’s road-holding was probably
    competitive with other 1978-vintage compacts, but it was a bit
    tail-happy, and the power steering insured that none of that
    annoying “road feel” made it to the cockpit. Like most any rear-wheel-drive Detroit car made in that decade, it was extremely skittish in snow.

    Had it merely been an underpowered compact with indifferent build
    quality and middling driving dynamics, it wouldn’t have been such a bad
    little car. Where the Monza Wagon truly failed was in the area of
    durability. Not to put too fine a point on it, it had none.

    In the two years in which I was the primary driver of this vehicle,
    it suffered a series of breakdowns that would have made a Fiat or
    Triumph hang its head in shame. I got to know my father’s favorite
    mechanic, a man named Lenny, quite well. There is not space enough to
    list all the troubles this car gave me, so I’ll confine myself to the
    more “exciting” incidents:

    • The V-6’s oil pump suffered a sudden “epic fail” mere days
      after its last oil change. One minute, all was normal. In the space of
      three or four seconds, there came a series of unpleasant thumps from
      the engine bay, followed by a very loud bang as the engine threw a rod.
      At that point, the “OIL PRESSURE” light came on, in case I hadn’t
      gotten the hint. Lenny found a replacement 3.2 V-6 in a salvage yard,
      dashing my hopes of an engine upgrade.
    • The replacement engine’s water pump had a pinhole leak in the main
      casting. Not enough coolant ever escaped at any one time to leave a puddle, but over a period of a few days, the losses added up. You’d be
      zinging along the highway without a care in the world and suddenly the
      car was overheating and the radiator and surge tank were bone dry. Let it
      cool down, re-fill the radiator, toss in some Stop-Leak, wait a few
      days, repeat. Lenny replaced hoses and gaskets and such several times
      before he was finally able to isolate the problem.
    • While the cooling system had problems with dehydration, the unibody
      suffered from fluid retention. One Sunday I discovered that the left-rear quarter panel was half full of rainwater that had leaked in around
      the window seals. Some clever person in GM’s engineering department had
      designed drain holes into the bottom of the body panels to let wayward
      rainwater out. Unfortunately, some other clever person in GM’s
      engineering department had specified that the inside of the quarter
      panel be stuffed with a horsehair insulation that deteriorated in
      water. The soggy insulation had sagged down and plugged the drain
      holes. It took a half-hour’s thrashing with a screwdriver and other
      long pointy implements to clear the clog.
    • The last straw came in the spring of 1983. I noticed a nasty
      grinding sound when the car was started. By now I was fully sensitized
      to the Monza’s self-destructive tendencies, so I went directly to
      Lenny’s garage. “Sounds like the flywheel,” Lenny opined. He put it up
      on the rack and set his crew to pulling the transmission. They loosened
      the bolts on the flywheel, and the flywheel came apart in their hands.
      It had cracked into three pieces from metal fatigue, and the bolts were
      all that were holding it together.

    At this point, we had lost all confidence in the car. It wasn’t
    rusting yet, but that was only a matter of time. I was about to move
    out of town to start a new job, and the last thing I needed was a car
    that was always a heartbeat away from a call to Triple-A.

    We put an ad in the paper. Someone showed up and offered me
    something less than the asking price. I took it, grateful to be rid of
    the beast. Lenny was the only one sorry to see it go–the repair work
    he’d done on that car had provided his kids with three years of private
    school tuition and new bicycles at Christmas.


    The saddest thing about the Monza Wagon was its wasted potential.
    The basic design wasn’t bad. Had it been screwed together properly, had
    it had a better engine and a five-speed, had someone drained the
    Novocain out of the steering gear, had it been able to go for more than
    a week without a breakdown, it could’ve been one hot little sleeper.

    When I cleaned it out before turning over the key to the buyer, I
    left the red ice scraper in the glove box, the one that urged Lordstown
    managers to “GET 150!” It had come with the car; it seemed only proper
    that it should go with the car. I never found out what metric “150″ was
    the target for, but unless it was something like “missing screws per
    vehicle,” I suspect they didn’t achieve it.

    The top and bottom photos are from the GM H-Body Registry, which is maintained by the Monza Homestead. The brown ‘79 wagon is owned by David Trott, and the bottom wagon with the slick wheels is owned by Bill McClaskey. The catalog illustrations came from the website of the H-Body Organization,
    another group of owners and fans of the Vega, Monza, and their
    badge-engineered siblings. They seem like nice people in spite of their
    irrational affection for Vegas and Monzas, and they’ve compiled a lot
    of good historical and technical information. H-body Organization
    member “Monzawagon1320” is restoring a beige ‘78 Monza Wagon, and the photo comes from his project journal. I can’t understand why anyone would want
    to restore a ‘78 Monza Wagon, but he’s doing a good job and seems to be
    enjoying himself, so who am I to judge? Best of luck to him.

    –Cookie the Dog’s Owner

    Read more

    posted in Car News Articles | 0 Comments

    31st July 2008

    Nissan Offers Voluntary Buyouts in Tennessee

    SMYRNA, Tennessee — For the second time in a year, Nissan Motor Company is offering voluntary buyout packages to its U.S. workers. To counter a dramatic decline in sales of trucks and SUVs, the Japanese automaker said Wednesday it would provide lump-sum payments of up to $125,000 to workers at its Smyrna assembly and Decherd powertrain plants in Tennessee.

    Nissan employs 6,600 hourly and salaried workers at the two Tennessee plants and is hoping to reduce its workforce by about 18 percent, or roughly 1,200 employees.

    Depending on their tenure, workers are being offered payments of $100,000 or $125,000, plus medical and vehicle-purchase benefits. They can elect to take a buyout in 2008, 2009 or 2010, but benefits diminish each year.

    Nissan also said it would eliminate night-shift truck production at the Smyrna plant, beginning August 11. The factory builds the Frontier pickup, Xterra and Pathfinder SUVs, Maxima sedan and Altima sedan and coupe.

    The company previously announced it would eliminate one shift of truck production in Canton, Mississippi, while adding a third shift of Altima sedan production.

    What this means to you: Nissan was the first Japanese automaker to build a competitive full-size pickup — a gamble that now appears may never pay off. — Paul Lienert, Correspondent

    Read more

    posted in Car News Articles | 0 Comments