I liked the Smitty family's favorite ad from the superbowl a lot. Any references to my Star Wars childhood are immediately cool.
My favorite was the Chrysler ad featuring Eminem and the Chrysler 200 sedan. This is the ad people are talking about in my office this AM.
The 200? Meh.
A commercial saying cool things and showing the Detroit sites and attractions that no one hears about to a national audience? Completely awesome.
I ran across this article. Auto industry payback may surprise U.S. taxpayers, this morning. Looks like the auto industry really was serious about paying The People back. From the article:
A Free Press analysis suggests that taxpayers could get back about $74 billion of the $86 billion the government made available in 2008 and 2009 to save General Motors, Chrysler and Ally Financial, the former GMAC.I am sure Bob, our Senior Auto Industry Correspondent, will have some more comment, but I'll leave it with this graphic depicting how much has been paid back...and how much more there is to go.
So far, the industry has paid the government $18.3 billion in debt, interest and dividends, and the prospects for payback have improved thanks to a rebound in vehicle sales and profits at the three companies. That includes the $1.5 billion Chrysler Financial has paid off and a $5-billion aid plan for suppliers that turned a profit.
I know that Toyota is not the favorite car manufacturer on this blog, but I found this article to be thought provoking. I am all for slamming some company for a bad product, but I wondered if some of those people weren't fabricating stories to cover up their own mistakes.
"In spite of our investigations, we have not actually been able yet to find a defect" in electronic throttle-control systems, Mr. Smith told the scientific panel, which is looking into potential causes of sudden acceleration.Read more...
"We're bound and determined that if it exists, we're going to find it," he added. "But as yet, we haven't found it."
I have resisted kicking them while they are down, but as a loyal Michigander, I just cannot take it anymore. This video was just way too funny not to post.
Now that the liberals in the media have turned on Toyota, they are really screwed.
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Toyotathon of Death | ||||
| ||||
I haven't been able to post much lately on the subject of the auto industry, even through the whole bankruptcy, which is realy a shame because I could have vented a lot.
Today though, GM announced good news for a change. Their new green, halo car, the Chevy Volt will be E.P.A. rated in the city for 230 miles per gallon! 
This would be calculated by some sort of combined driving cycle where the car runs on battery power only for the first 40 miles, using no gas, and then on electric drive with electricity being supplied by the on-board generator.
It will also be able to run on E-85 and will be built in Detroit starting next year.
This is quite an achievement unobtainable a few short years ago.
See autoblog here.
See CNN Money here, which explains a possible driving cycle.
All I can add is this: Fuck You Toyota!
Unless you live under a rock, you know that on Monday President Barack Obama announced the rejection of General Motors and Chrysler’s restructuring plans. In his statement he spoke of the need for government to act as a partner in assisting the auto industry, which seemed to go beyond just billions of dollars in loans.
Because I am sure that President Obama and his staff are a few of ATKs 1.5 million loyal, daily readers, here are a few suggestions for how the U.S. Government can become real partners in job creation and the rejuvenation of the United States auto industry.
Create a trade policy that protects the environment and workers around the world.
Demanding that countries that sell here observe higher standards for employee pay and environmental protection could start to equalize production costs and make the U.S. more competitive. It would start to create world-wide markets for everyone’s products, protect individual rights and raise standards of living. Protecting the planet should not only apply to the United States nor should a lack of environmental protection elsewhere undermine our own environmental policies.
Reduce dealership power.
Do you think the United Autoworkers have too much power over the big-three? The dealerships might be stronger. The domenstic auto industry needs to reduce its number of dealership drastically if it is to imporve profitability. Standing in the way are strong dealership rights in law in each of the 50 states. Case in point, when GM killed off Oldsmobile, it spent over a $1 Billion to dealerships to pay them off. Dealership power is one of the main stumbling blocks to reduce the number of brands. GM can't afford to engineer or market the number of brands it has, nor can each brand be a full line of cars and trucks. If GM wants Pontiac to only be a nitch brand of performance cars, it will have to overcome the whining on the dealerships that results in Pontiac econoboxes and minivans coming to market.
Open markets to U.S. products.
The U.S, has some excellent trading partners. We should support them by buying their products, including cars and trucks. Japan is not one of them. General Motors and Ford are two of the biggest companies in European and Chinese markets, but last year GM sold only 2,000 cars in Japan. Ford is prohibited by Japanese law from buying more than 33% of Mazda. Due to Japanese proetectionism, Japanese companies can subsidize the price of cars and the costs of R&D by increasing prices in their home market. It makes small models sold in both markets more profitable where big-three cars sold only in the U.S. market less profitable. If we cannot sell there, they shouldn't be able to sell here. That's not protectionism, that's sanity.
Replace the Corporate Average Fuel Efficiency (CAFE) standards.
Creating a mileage-boosting plan that doesn’t require car makers to sell small cars at a loss could help us invest in small car efficiency. The American consumer continues to see small cars as a penalty. Until they see them as something more than an economy car, these models will remain unprofitable. CAFE is a failure. It doesn’t help the environment and kills the U.S. auto industry. Raise the gas tax if you seriously want to increase mileage, change consumer behavior, and help the environment. If not, admit it is politically unfeasible and move on.
Standardize safety and emissions requirements with Europe.
Car aficionados in the U.S. often gripe that they cannot buy one of the sweet, tiny diesel cars sold in Europe that get a billion mpg. As it turns out, theses cars don’t meet the United States safety and emission regulations, so they cannot be sold here. Cars in the U.S. have more expensive diesel equipment making diesel options very, very expensive. Cars are bigger and heavier here to comply with our safety standards, which in turn makes our cars less efficient, and also makes them less marketable in Europe.
Create a national health plan that will make the Detroit car maker's health and retirement cost equal to the competition.
Think that only the Big-Three are getting loans from their government? Toyota, Honda and Nissan are set to receive billions from the Japanese government, but their assistance doesn’t end there. The cars built in Japan get an automatic profit advantage because the government is picking up the health care tab and takes care of the Japanese retiree too.
It is time to create a sane national health care policy that will make our companies more profitable. Health care is not just about doctors, it’s about economic development.
I have previously pasted links to autoextremist.com , which is an excellent website with great insight and commentary into the auto industry, foreign and domestic. The site’s creator, Peter M. De Lorenzo is a fan of the American auto industry, but also one of its fiercest critics.
In addition to weekly columns, his site features “On The Table”, which is essentially a “thumbs-up” or “thumbs down” look at the auto world. This week, in addition to giving three out of three arrows down to Rahm Emanuel, for his complete lack of knowledge of the auto industry, (which hasn’t stopped him from telling the big three what to do) he also gave three arrows down to Toyota. It seems that contrary to what the media and the greenies of the world would have you believe, Toyota is in just about the same predicament as the Detroit Three.
So someone else is saying the same thing. Green cars aren't profitable. If the D3 take the advice of Washington DC and the enviros, they will go out of buisness faster than their current rate.“Toyota. That wonderful company that successfully pulled a Green Snuggie over consumers' eyes by actually convincing them that the hallowed Prius walked on water is now asking the Japanese government for $2 billion in loans to help its financial unit through these tough times. That's rich. It seems that Toyota was no different than the American car companies in their inability to predict the end of the large SUV era and all of the associated fallout that came with that egregious miscalculation, and now lo and behold, they're hemorrhaging money too.
Because, guess what? Toyota didn't make money selling the Prius, it made money by selling those trucks and SUVs. Not that anyone in Washington would care to notice. After all, we're talking about an entrenched mindset that revolves around the Toyota=Good, Detroit=Bad formula that has dominated thinking by the Potomac over the last decade. And that's not likely to change anytime soon. Another thing for the new administration to contemplate while they're burying Detroit? The fact that a large share of Toyota's profitability on the way to it becoming The Greatest Car Company on Earth was due to the fact that the Japanese government blatantly manipulated the yen to Toyota's advantage in order to help boost its profitability in the American market. Why do we think the Obama administration will find a way to blame that on Detroit somehow too?”
I think everything I have come to expect about this world has been turned on its head.
First, we elect a black guy with a funny name to the Presidency. Next, I compliment Congressman Thaddeus McCotter for standing up for the automakers. Now I have to thank George W. Bush for loaning the automakers enough money to get them through spring.
I have no idea what separated Bush from the bunch of scum in the Senate, but I have to assume he took action with the best intentions and because it was the right thing to do.
This morning Bush said:
"The financial crisis brought the automakers to the brink of bankruptcy much faster than they could have anticipated."
Read more..."If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy. In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action. The question is how we can best give it a chance to succeed."
The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists. Here are seven myths about the companies and their vehicles, and the reality in each case.
Myth No. 1: Nobody buys their vehicles
Reality: General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of nearly 700,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota.
Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.
Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.
Myth No. 2: They build unreliable junk
Reality: The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers."
The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high as or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.
J.D. Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.
Myth No. 3: They build gas-guzzlers
Reality: All of the Detroit Three build midsize sedans that the Environmental Protection Agency rates at 29-33 miles per gallon on the highway.
The most fuel-efficient Chevrolet Malibu gets 33 m.p.g. on the highway, 2 m.p.g. better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient non-hybrid Honda Civic.
A recent study by Edmunds.com found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.
Myth No. 4: They already got a $25-billion bailout
Reality: None of that money has been lent out and may not be for more than a year. In addition, it can, by law, be used only to invest in future vehicles and technology, so it has no effect on the shortage of operating cash the companies face because of the economic slowdown that's killing them now.
Myth No. 5: GM, Ford and Chrysler are idiots for investing in pickups and SUVs
Reality: The domestics' lineup has been truck-heavy, but Toyota, Nissan, Mercedes-Benz and BMW have spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry.
The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel-economy ratings than Toyota and Nissan's full-size pickups.
Myth No. 6: They don't build hybrids
Reality: The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.
Myth No. 7: Their union workers are lazy and overpaid
Reality: Chrysler tied Toyota as the most productive automaker in North America this year, according to the Harbour Report on manufacturing, which measures the amount of work done per employee. Eight of the 10 most productive vehicle assembly plants in North America belong to Chrysler, Ford or GM.
The oft-cited $70-an-hour wage and benefit figure for UAW workers inaccurately adds benefits that millions of retirees get to the pay of current workers, but divides the total only by current employees. That's like assuming you get your parents' retirement and Social Security benefits in addition to your own income.
Hourly pay for assembly line workers tops out around $28; benefits add about $14. New hires at the Detroit Three get $14 an hour. There's no pension or health care when they retire, but benefits raise their total hourly compensation to $29 while they're working. UAW wages are now comparable with Toyota workers, according to a Free Press analysis.
In all the media coverage of the blowhards on the hill lambasting the American automakers for past sins, real and imaginary, there was one voice on the Banking Committee that failed to get coverage. Congressman Thaddeus McCotter (R-Michigan, 11) deserves credit for his 8 minute defense of the Automaker loan package. He is clear, pointed and makes much more sense than anyone who received news coverage.
A good read.
The Detroit Free Press, column by Mitch Albom: If I had the floor at the auto rescue talks.
Albom:
"Besides, let's be honest. When it comes to blowing budgets, being grossly inefficient and wallowing in debt, who's better than Congress?
So who are you to lecture anyone on how to run a business?”
Peter DeLorenzo runs autoextremist.com, an automotive site that first and foremost features Peter’s hard look at the auto industry. DeLorenzo comes from the advertising side of the industry and knows more than one industry insider, so he usually knows what he is talking
about. He’s no big-three cheerleader though, he regularly whacks their bad product, advertising and business decisions.
I recommend going to his site every Wednesday after his weekly column is posted.
Today, take a look at his recent post which he reflects on the last two committee hearings dealing with the Detroit LOAN package. Today DeLorenzo takes hard look at the fools in D.C.
DeLorenzo:
Read it here. Read more...We then had to watch as each of these U.S. Senators spewed their particular brand of inaccuracies and flat-out misconceptions about the automobile industry in their opening statements. A very few were actually worth listening to – and I mean like two - while most of the others were so blatantly self-serving and out of touch with reality that it was painful to watch. And then some acted like they were just hatched yesterday and were so resolute in their lack of awareness about what was going on and why they had to be there in the first place that it was simply appalling .
For the last two days, the CEO’s of the three largest American automakers have been before congress lobbying for $25 Billion in loans to keep them afloat for the next year or so. Much of the news coverage of their appearance has been of lawmakers ripping the CEO’s to shreds for everything from CEO pay, to building SUV’s, to flying corporate jets to Washington.
Clearly the current big three CEO’s don’t have the public relations skills that Lee Iacocca had nearly thirty years ago. At the time Chrysler was in need of similar assistance, and Iacocca worked for $1 per year.
November 20, 2008
Congressman Peter Roskam
507 Cannon House Office Building
Washington, DC 20515
Dear Congressman Roskam,
This morning on several news programs, the country witnessed you asking the CEO’s of the big three automakers to work for one dollar per year as part of the effort to get the companies back on their feet. While this would likely prove to be a nice public relations gesture, as Lee Iacocca did when Chrysler needed similar assistance nearly thirty years ago, I am sure you are aware that this would have little significance to the automakers’ bottom line.Like the automakers, I am sure you have noticed that the United States Government has been running in the red for the better part of three decades. Since you find it so important for people in positions of authority to work for one dollar, when their organizations are running in deficit, will you be giving up your Congressional salary this year?
CEO compensation is out of control, but you won’t fix that problem by letting the big three go out of business. Instead of showboating, isn’t it time to consider the 3 Million workers and retirees who are supported by the American auto industry? There are Illinois jobs at stake.
Signed,
Bob
I really should write an auto industry piece, but instead, I will let you read this article in the New Republic. Jonathan Cohn writes one of the few pieces about the auto industry that required a significant amount of research and facts. This is unlike the rest of the anti-Detroit drivel that passes as journalism these days.
Cohn writes:
"Rescuing the auto industry is not, as so many people suppose, a question of giving Detroit one extra shot at transformation. It's a question of giving Detroit a chance to finish a transformation that was already underway."
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