"The Treasury is not negotiating with automakers," a Bush administration official said late Thursday. With that statement it would seem that any assistance for a GM/Chrysler merger is going to have to come out of the $25 billion already approved for the auto industry and not out of the $700 billion TARP slushfund AKA Paulson's sandbox. Who knows when or where this crazy ride is going to stop?
source: detroit free press
Friday, October 31, 2008
Paulson Says: "Go Ask Your Mother"
In F-150 We Trust
Just a few media shots from Ford of the new F-150 on the official kickoff of production. "The F-150 and the Ford Rouge center are the heart and soul of Ford Motor Co.," Executive Chairman Bill Ford Jr. told cheering workers. "This is our heritage right here, and this is what we do best. Our industry is in trouble ... (but) once again, you're going to pull us out of this by building the best truck that has ever been built." Ford will restore the third crew at Dearborn Truck Plant in January; the move will add 1,000 workers to the plant’s production team.
Gas prices are down, so some buyers will probably be migrating back into the truck market after staying on the sidelines. Hopefully for Ford, this new truck will prove to be a hit. There's not much to dislike, expect perhaps that crazy chroma grille that looks like an electric shaver.
Thursday, October 30, 2008
Warrant Issued
You may or may not recall the Stanford University employee who was arrested due to a dispute with a train conductor over available bike space on a train. Bottom line is that he got himself arrested and became a YouTube sensation. A month or so later and the biker failed to show up for a hearing and now has a warrant issued for his arrest. Pick your battles, people.
AE Drives the New Ford Ka
I had a chance to drive the previous generation Ka and Fiesta back to back and let me tell you, there was a huge difference in the livability of the two cars: the Fiesta was a nicely turned out vehicle while the Ka felt too spartan and flimsy. Now the next generation of Fiesta and Ka are upon us and Auto Express is offering its opinion on Ford's little buggy.
The big deal for us is that we'll be getting the Fiesta, which is just super-fantastic news if you ask me. That Fiesta is going to be a hoot, I can just sense it! Now, the chances of us getting the Ka are much more iffy and if you ask me, that's just fine. I'd certainly be willing to give the Ka a second chance, but I'm totally fine with the Fiesta being the entry level car here in the States. If all my wishes were to come true, we'd get the Ka's sister, the Fiat 500 in Abarth guise.
2010 Ford Fusion
I was once given a Fusion loaner. The metallic paint sparkled in the sun as I approached the car. Once inside, I was able to quickly pair my phone on the Sync system. I admired the soft touch plastics of the dash. "This is a decent car" I thought to myself, "Seems pretty well made to." Then I drove over a bump and the rearview mirror fell off. That brought back memories of the only other time a mirror fell off the windshield. It was my new boss' car and she had sent me out on an errand. Driving around town on a hot day, suddenly PLUNK there goes the mirror. I had to race over to an auto supply store for a kit that promised to reattach mirrors. Fortunately, I was able to get it all back together in time and no one was the wiser.
Consumer Reports seems to believe that Ford has been improving its quality game, so I'll give the Fusion a pass on the mirror bit. You can read about the powertrain goodies in this Ford media release. What we don't have yet is official info on the interior of the car. The 2010 Fusion should sport a honkin' navigation screen as an available option. We'll see what else Ford has up its sleeve soon!
Wednesday, October 29, 2008
Ford Fiesta Sedan Spyshot?
While feeding his insatiable appetite for fast food, Detroit News writer Scott Burgess may have snapped the upcoming Fiesta sedan. I'm troubled that Scott can barely write an article without mentioning his love of McDonalds, but in this case Scott has "done good." To date I have only seen spyshots of the sedan wearing heavy amounts of camouflage, so these shots are definitely more revealing/disappointing. If this is the production sedan, it is nowhere near as swoopy as the Verve sedan concept (last photo above) on which it was based.
Now, I should add that I am only speculating that this is the Fiesta sedan. Burgess hints at what he believes the car is in the title but asks his readers what they think, the Detroit News comments section is so jacked that I wasn't able to find out if anybody commented.
source: det news
Need a Large Yacht? Have $143,646,500 Handy?
Recently the yacht 'Maltese Falcon' docked at Pier 35 in San Francisco. CNET's Daniel Terdiman was able to snap off a few photos, you can check out the gallery by clicking here. Now let's say you wanted to buy this little monster for yourself. Well, thanks to the Internet you can do that by clicking here. Whammo! I've just sold you a boat! Good luck explaining this one to your significant other.
top photo George Gill
bottom photo Daniel Terdiman /cnet
Building Your Own ZR1? You'll Need This Part Number: LS9
Have an application for a 630 horsepower, supercharged, V8 engine? GM Performance Parts has your back with the LS9 beginning in the fall of 2009.
2010 Lexus RX350 RX450h Shots Leaked
The RX redesign is a classic example of "If it ain't broke, don't fix it." There are times when I come home for lunch and four of these are parked out in front of my house for a mommy get together. With that kind of loyalty, why mess around with a radical new look?
2010 Nissan 370z
We've seen so many teaser shots of this car that the official images are a bit anticlimactic. I have to see it in person before I pass final judgement on the redesign.
LSX 454 Crate Engine Walkaround
I'm sicker than a dog today, that's no reason not to take a look at a new crate engine from GM Performance Parts!
Tuesday, October 28, 2008
Flacid Flex Sales Prove Point?
Prior to its release, Ford marketing chief Jim Farley had lofty goals for the new Flex crossover: 100k in annual sales! That's a monthly rate of 8,333.33333333 Flexes driving off the lots. Since its release this summer, the Flex has sold around 2,000 units per month. What happened? Well, the credit crunch/fuel crisis can be blamed for some of the disappointment. Let's arbitrarily say that the current state of world affairs is robbing Ford of 4,000 Flex sales every month. That still doesn't make the 2,000/mo sales rate look much better. What else gives? Well, some insiders at Ford think that the hip, urban marketing of the Flex hasn't helped. The brand bible for the Flex that was so touted at the beginning is either turning off consumers or not informing them of the Flex's features. The Flex is always shown at night and you never see anyone in or around the vehicle. Maybe buyers of a family hauler won't notice a fancy "electronic paper" advertisement in Esquire?
I liken the current Flex marketing scheme to that of a balding man wearing a baseball cap to a first date: she's going to find out sooner or later, why hide who you truly are? Let's put the Family back in the Flex. Show how versatile the boxy vehicle can be. Let's see that cool refrigerator in the second row. Let's crow about the premium materials used inside. Promote Sync, the mood lighting and Vista Roof. Tell buyers that the rocker sills have been integrated into the door so that their pants won't get dirty on ingress/egress. Inform buyers about the convenience of the capless fuel filler. Invite customers to sample the smooth, quiet ride and appreciate the (relatively) good fuel economy. I'd wager that you'd easily pick up 500 to 1,000 units per month by scuttling the current campaign and getting back to the basics.
source: det news
i-DTEC Delayed/Cancelled: Honda Saying Yes By Not Saying No?
Last Thursday, The Temple of VTEC posted an anonymous tip that Honda's super clean i-DTEC diesel engine that was destined for Acura has been delayed indefinitely. Wha? According to the tipster, the i-DTEC, which doesn't use a urea aftertreatement system, has trouble meeting emissions certification (Tier II Bin 5) when yoked to an automatic transmission. A manual transmission version of the i-DTEC has passed tests successfully but the company is worried that there would not be enough demand for an manual only version.
It's a hard pill to swallow that a company such as Honda, with such a proud engineering heritage, would back away from an engine that none other than its CEO Takeo Fukui (pictured above) promised the company would deliver in remarks made at the 2008 North American International Auto Show. However, the fact that Acura PR has not attempted to deny the story or contact any blog (Vtec.net, Autoblog, ACATT, etc) after repeated calls have been made to confirm the information does seem suspicious. Temple of Vtec said in response to a request for more information that additional details were provided by the tipster but left out for confidentiality reasons. ToV said that those surrounding details seemed to support the claims being made.
I am disappointed at the news. I haven't been a fan of the new TSX, but the diesel option had me intrigued. The TSX is rumored to be getting a V6 engine and the tipster said that it has been fast tracked to make up for the loss of the diesel. The rumor is that the V6 will sport SH-AWD. Undoubtedly a higher spec V6 TSX would mean more profits and probably more sales volume than a diesel. However, I viewed the diesel more as an engineering triumph and a test of market acceptance than a profit center.
Independent of the four cylinder's status, we'll still get a diesel from Honda at some point. Vehicles such as the Pilot, Ridgeline and Odyssey would be a good fit for a V6 diesel. I envisioned that the four cylinder would have gone if vehicles like the TSX, Accord, and CR-V.
I haven't written a eulogy for the four cylinder just yet. Undoubtedly Honda is working on continually reducing the engine's emissions, if not for our market then for ever-tightening regulations in Europe. At some point Honda will have to come clean (pun intended) about the i-DTEC in the U.S. and we'll just have to wait for their announcement.
Thanks to Jeff at ToV for responding to my questions.
source: ToV
Monday, October 27, 2008
Yes She's Beautiful and Yes Those Tires Are Mounted Backwards
Quantum of Solace Bond girl Olga Kurylenko is a beautiful woman, so you'd be forgiven for not noticing that the directional tire on the Ford Ka is mounted the wrong way. That doesn't make it right, though.
Wild, Off-Topic Speculation: Quake?
In general, I'm not a superstitious person. I have been known to knock on wood and wear a lucky shirt, but that's about it. Having said that, the family dog has been acting funny all afternoon and I feel that I have to mention the "Q" word.
What has the dog been doing? Well for starters, she's been standing/sitting on this table for forty minutes (pictured above). She also has been barking randomly and trying to hide in odd places on the deck. It's my hope that all of this weird activity is just her way of trying to sucker us into two walks instead of her regular evening stroll. Cadi has been with us for years and she's never done anything like this, that's what makes it a bit concerning.
A search of the web yields varying opinions on the ability of dogs to predict major events like earthquakes. I'll revisit this topic in week or so and we'll see how Cadi did with her predictions. I'm not changing my routines, but I'll be sensitive to any jolts!
Win a 2008 Mini Cooper (12/31/08)
Do you like cheese? Really fancy German cheese? Cheesemaker Champignon is offering you a chance to win a new Mini courtesy of its mini cheese brand. Get it? Mini cheese? Mini Cooper?
Click here to enter to win the Mini.
Just Like a Bogus Virus Warning: Ford Shopping Volvo to BMW?
Ford had talks with BMW to sell Volvo?
More gossip about Ford trying to pawn off Volvo to BMW. The one problem I have with all of these rumors is that Ford has already entangled Volvo in its pledge of assets when it secured access to a massive financing package (a move that seems like sheer genius now). Any sale of Volvo would require some of the proceeds to pay off the obligation tied to Volvo's assets. That means that anything less than a princely sum would yield very little for Ford. It is for this reason that you'll probably hear time and time again of talks breaking down over disagreements in price.
Lutz: No Timetable For Any Merger
While attending speaking at the 2008 Public Relations Society of America International Conference, Bob Lutz was asked about a potential merger with Chrysler and said "There is no timeframe at all for having anything definitive." The scuttlebutt floating around is that GM and Cerberus want to have something sewn up before the November 4 election. Of course, I suppose there could be a "tentative" deal by Election Day, it just wouldn't be "definitive."
Lutz would not comment on whether or not Treasury Secretary "Moneybags" Paulson (pictured above) has been asked to fork over some funds to get the deal done.
source: det news
Chevrolet GPiX Concept
10/27/08 Update: Here's the official press release from GM. I really like this line from the release: "It (GPiX) also includes features that customers have come to expect in production Chevrolet vehicles offered in Brazil, such as air conditioning, power steering and power windows."
Original 10/24/08 post:
The GPiX concept was totally developed at the company's Design Center in São Caetano do Sul, in the Greater São Paulo, in Southeast Brazil. The name is a combination of the letter G, referring to "global", and "Pix", an abbreviation of "picture". The objective is to give a "global image" of a vehicle of the kind developed in Brazil. We caught a glimpse of the vehicle during GM's Centennial broadcast, but they only showed us the front end. With the São Paulo auto show almost upon us, it's no surprise to find the official shots leaked. You can certainly see the family resemblance with other Chevrolet products.
I believe that this concept is based off the Gamma (Corsa) platform. A quick visit to Chevrolet's Brazilian website shows that the Corsa sold there currently (last picture above) is a generation back (Corsa C) from the one sold in Europe (Corsa D). If my understanding is correct, the GPiX presages the next Corsa for the South American market.
The Zeppelin Has Landed
Remember the airship story I posted awhile back? Well the Zeppelin has arrived in the Bay Area! You can watch the video above or read this Mercury News article.
O Canada! 2009 Vibe Wins Best New Small Car over $18,000
The 2009 Pontiac Vibe has been named the as the “Best New Small Car over $18,000” by the Automobile Journalists Association of Canada. “The heart of Canada’s vehicle market is the highly competitive small car segment, so we are particularly excited about this award for the 2009 Pontiac Vibe which has seen a sales increase of over 30% this year,” said Marc Comeau, vice president of sales, service and marketing for GM of Canada. “The versatile new Vibe provides a combination of style, utility and excellent fuel efficiency that is clearly resonating with Canadian consumers.”
The award for the Vibe is the second consecutive small car segment victory for GM at the annual AJAC CCOTY competition, following on last year’s win for the 2008 Saturn Astra. The Vibe and Astra join over 15 other GM models that achieve better than 7 L/100kms in highway driving.
The Vibe is featured in this post because GM sent a press release to me. Below is a list of all the winners (there are a lot of categories):
BEST NEW SMALL CAR (under $18k): Toyota Corolla
BEST NEW SMALL CAR (over $18k): Pontiac Vibe
BEST NEW FAMILY CAR ($22k-$30k): Mazda6
BEST NEW FAMILY CAR (over $30k): Volkswagen Passat CC
BEST NEW LUXURY CAR (under $50k): Hyundai Genesis
BEST NEW LUXURY CAR (over $50k): Audi A4
BEST NEW PRESTIGE CAR: Mercedes-Benz CL550 Mercedes-Benz SL63 AMG
BEST NEW SPORTS / PERFORMANCE CAR (under $50k): BMW 135i Coupe
BEST NEW SPORTS / PERFORMANCE CAR (over $50k): Lexus IS F
BEST NEW CONVERTIBLE: Audi TTS
BEST NEW PICKUP TRUCK: Dodge Ram
BEST NEW SUV / CUV (under $35k): Subaru Forester
BEST NEW SUV / CUV ($35k-$60k): Ford Flex
BEST NEW SUV / CUV (over $60k): Mercedes-Benz M-Class BlueTEC
Hey Paulson, Can You Spare a Dime?
The more stories that I read about GM/Chrysler merger talks, the more it becomes evident that absent some amazing feat of according wizardry, combining these two auto makers is going to require the involvement of the U.S. government. Now of course, there are other options: Cerberus could chop up Chrysler into many different components or a healthier automaker could step into the breach and make an offer. However, if there is anyone out there besides GM and Renault/Nissan expressing interest in Chrysler, I sure haven't read about it. Getting back to my original point, it is likely that teams working on merger options have already have asked the Treasury Department for financial aid. The question then becomes, where would the money come from? The $25 billion already earmarked for automakers (albeit for a different purpose) or the $700 billion TARP fund which was originally targeted for the banking system but now seems to be attracting interest from all sectors? If money was committed to the merger, how would it be injected? For example, would the government buy preferred shares?
There are many who would ask, "Where does it end? Where does the government draw the line?" Well, I think it can be assured that wherever the Feds do draw the line, GM and Chrysler will be on the money side of the boundary. Why? There's just too much at stake here. If GM and Chrysler drown, they'll take any number of suppliers with them. Those suppliers will in turn be unable to supply healthier automakers who will then have to scramble for parts. The whole auto industry is so interconnected by these supplier linkages, it's almost like there is this rope tied around each of their ankles. From above the waterline you can't see that rope, but if things go sour and one or two automakers drown the other manufacturers could be sucked down into the abyss.
source: bloomberg
Sunday, October 26, 2008
Saturday, October 25, 2008
Scirocco May Come to U.S. As Limited Edition Model?
Volkswagen Group of America spokesman Steve Keyes says that VW is considering bringing a limited edition version of the Scirocco to the United States. The Scirocco would have more power and a higher price tag than the GTI currently sold here.
The Scirocco's U.S. status has been in doubt because VW was concerned about it eating up GTI sales. However, there has been a lot of begging from Scirocco faithful and the dollar has gained against the euro so just as a parent might give into a whining child, VW might bring the stylish hatch to the U.S. I know my sister-in-law is looking for a new VW :-)
There has been a precedence for limited edition VW models, such as the R32, so the company wouldn't be heading into completely uncharted waters. There is currently no timeline for a decision, but if you're excited about the idea why not contact VW and let them know!
source: automotive news (sub req)
Not Again! Alfa's U.S. Debut Delayed
You didn't really think the Italians were going to show up in 2010, did you? Fiat Group Automobiles CEO Sergio Marchionne now says that Alfa's entrance here in the U.S. will be delayed by one year. I've honestly lost track of how many times Alfa has changed its time table, so what's one more year?
source: automotive news
Win a Borrego (12/31/2008)
If you can't visit Tampa's Guavaween party today (10/25/08) and test drive a Kia Borrego in person, then you can do the next best thing and enter to win a Borrego online. Visitors to the Kia area at Guavaween can score a $20 gift card for taking a Borrego for a spin.
smart BRABUS
Here is more info on the U.S. BRABUS edition of smart fortwo. For comparison the regular 2009 Passions delivered after 1/1/09 run $13,990, Passion Cabrios go for $16,990. Keep in mind that standard items on the BRABUS such as heated leather seats and additional instruments are extra cost on the standard models. If you price out how much all the goodies cost, such as the BRABUS "Monoblock VI" (on eBay for $2500 bucks) then the added $4 grand in cost isn't such a huge bump. However, if you were hoping for the turbo motor, well you'll just have to keeping waiting. Your color choices are limited to Black/Black and Silver/Silver. Invitations to reserve a BRABUS model went out to reservations holders already. We'll get more details at the LA Auto Show.
BRABUS coupe starting at $17,990
BRABUS cabriolet starting at $20,990
2009 smart fortwo BRABUS standard equipmentEngine/drivetrain
1.0 L, 70 HP, 3 cylinder engine
5 speed automated manual transmission
BRABUS sports suspension, lowering the car by 10 mm
Wheels
BRABUS "Monoblock VI" 6-spoke alloy wheels (front tires: 175/55 R 16; rear tires: 215/35 R 17)
Tire pressure monitoring system
Exterior
BRABUS front skirt and side skirts in car's exterior color
BRABUS sports exhaust system with rear skirt in car’s exterior color
BRABUS logo on front, rear, mirror flag and on fuel filler door
BRABUS coupe: Panoramic roof (incl. sunblind)
BRABUS cabriolet: Fully automatic convertible top with glass rear window
body panels and tridion safety cell in deep black
Projector beam halogen headlights
Side indicators in yellow
Exterior mirror trim in tridion color
Interior
Heated leather seats
Additional instruments (clock and tachometer) with painted silver trim
3-spoke leather steering wheel with shift paddles and leather gearshift knob
BRABUS velour floor mats
BRABUS sports pedals in brushed aluminum with rubber surface
Passenger seat with weight detection and seatbelt recognition
Passenger seat with adjustable and flat-folding backrest
Storage areas beside the steering wheel and in both doors
Molded storage area in dash and door nets
Coin holder
Dome light
Mirror in passenger sun visor
Storage
Lockable glove compartment
Audio
BRABUS coupe: smart radio (AM/FM, single CD; incl. 2 speakers, aux input jack [radio 9])
BRABUS cabriolet: smart premium sound system (AM/FM, mp3-compatible 6 disc CD changer; aux input jack [radio 10], with 2 tweeters, 2 mid range, subwoofer)
Safety
Full-size driver and passenger airbags
Head/neck side airbags
esp® - electronic stability program with hill start assist
Anti-lock braking system (abs) with electronic brake force distribution
Hydraulic dual-circuit brake system
Integral safety seats
Seat belts with belt tensioner and belt-force limiter
Drive lock - auto-activation of the central locking when driving
Top Tether for child restraint system
Panic button on key
Tire repair kit
Functional/electrical equipment
Air conditioning with automatic temperature control (incl. dust, pollen filter)
Power windows with one-touch lowering function
Electronically adjustable and heated side mirrors
Central locking system with remote control
Instrument cluster with multifunctional display (fuel-level indicator, coolant-level indicator, reserve fuel indicator, service interval indicator, trip mileage indicator, clock, loose gas cap indicator)
Outside temperature indicator
Indicators with lane changer function
Front windshield wiper with speed-dependent interval wiping and wiper-/wash function
Electric rear window defroster
Electric tailgate release
Locking fuel filler door
12-volt socket, with cover
Factory Installed Options
Metallic paint (silver bodypanels and silver tridion safety cell)$400
Alarm system$160
Fog lamps$110
Daytime running lamps$50
smart premium radio (AM/FM, mp3-compatible 6 disc CD changer;
incl. 2 speakers, aux input jack [radio 10])
(Upgrade for BRABUS coupe, standard on BRABUS cabriolet)$150
Option Packages
smart premium sound system
- smart premium radio (AM/FM, mp3-compatible 6 disc CD changer; aux input jack [radio 10])
- smart sound system (2 tweeters, 2 mid range, and subwoofer)
(Upgrade for BRABUS coupe, standard on BRABUS cabriolet)
Cruze Delayed, LA Dismayed, Cash Flambéed?
It's got all the potential of being a hit product for the ailing General, the only question is "When will the Chevrolet Cruze get here?" New reports this week say that the U.S. launch of the Cruze has been delayed at least six months. The most recent schedule had production of the Cruze beginning in the summer of 2010, but now it looks like 2011 for the Lordstown, Ohio assembled sedan. Delaying the sedan would save some cash in the short term at the expense of greater profits from the higher margin Cruze in the slightly longer term.
Word has also spread that GM will not debut either the CTS Coupe or Buick LaCrosse at the LA Auto Show. According to Business Week, GM has also instructed employees to turn down thermostats, turn off lights after work and has even pulled some refrigerators in an effort to conserve cash.
It has to be painful to delay products that bound to be both popular and more profitable. It's also a tough pill to swallow when you withdraw fresh products from an auto show in a market that you hope to increase your presence in. However, unprecedented times call for severe measures. At this point GM is rather like a lost hiker trying to stave off hypothermia by keeping its core warm and potentially using the body of Chrysler to provide some extra heat.
Will GM emerge from the mess of an economy that we currently find ourselves in? I'll tell you this, as I walked from the post office today there was a new CTS in the parking lot. That crystal red car was the best looking vehicle around: a dynamic design that really showed a lot of bold creativity and fresh thinking. I know that it hasn't fared as well in Consumer Reports reliability ratings as GM would have liked, but if you can get past a few quality quibbles it is a car well worth your time. For cars such as the CTS and future GM offerings that finally show a real sense of market awareness, I hope that the good General is able to weather this current storm. In life there are no guarantees and sometimes there isn't enough time to atone for sins of the past. In the next 12 months we'll probably have an answer to the question above. I hope the answer is one we can live with.
Friday, October 24, 2008
Awww Crap! The VW Takes a Hit!
First it was the Jaguar and then the Infiniti. Now comes the VW Jetta in the latest installment of: Awww Crap! This Jetta was piloted by my sister-in-law and was rolled four, that's right four, times before coming to rest in a ditch. In the backseat was young Marco, pictured above, who was strapped into his car seat.
Fortunately no one was hurt in the accident and there were no other cars involved. Witnesses support her account that the right side of the car drifted onto the shoulder and when she tried to drive back onto the road she over-corrected and flipped the car.
Kudos to the Jetta for protecting its occupants.
58 Cadillac
I was browsing through GM Next and noticed a link to Flickr user Droptop68firebird400. I thought it was a nice shot myself!
Win a 2008 Dodge RAM 1500 w/ Meaty Bone Decals (12/1/2008)
Happy Friday to yah! Now be honest, it's the Meaty Bone decals that you're really after, isn't it? Click here to enter the Meaty Bone sweepstakes. UPC Code 4152245550 will work!
Chop! Chrysler to Cut 25% of Salaried Workforce
On the heels of GM's letter to executives yesterday about salaried worker layoffs, Chrysler has announced today that it intends to cut 25 percent of its salaried work force beginning in November. Nardelli has these words to say:
"These are truly unimaginable times for our industry. We continue to be in the most difficult economic period most of us can remember. The combination of troubled financial markets, difficult credit, volatile commodity prices, the housing crisis and declining consumer confidence continues to weigh on the economy. Never before have auto industry sales contracted at such a fast rate. Throughout this challenging time for our industry and our company, we have continued to face the realities of our business environment, and working as a team, we have been right-sizing our organization to become as competitive as possible."
I have another word for it: inconceivable!
Thursday, October 23, 2008
Cerberus Would Want Room and Board At a Combined GM/Chrysler
If a merger were to occur between Chrysler and GM, Cerberus Capital Management would want to keep a stake in the combined company and would press for some changes in the top management ranks. Many analysts have expressed shock that Rick Wagoner has maintained his perch at the top of the company given its decline in fortune over the past few years. In Wagoner's defense, the question is asked "Who could have done any better?" Additionally, Wagoner has handed over more power to Fritz Henderson, so the case can be made that some management changes have been made already.
What might Cerberus ask for if the merger goes through? I would expect to see a few new faces on the board and those new members would probably shake up the current chummy atmosphere between the board and executives. Let's also not forget one of Chrysler's potentially greatest gifts besides its dowry: Jim Press. I'm sure that Mr. Press could hit the eject button, but I doubt he would. How could GM accommodate a rock star executive like Jim Press? My best guess is that while the board changes would be immediate, Mr. Press would be brought on in a similar way that Bob Lutz was. Heck you can even make up a position if you wanted to. Then perhaps a year or so down the line Wagoner would step down, Henderson would rise to the top and Press would be promoted as well. As for Nardelli? I don't think that he would stay on and I would take the money and run.
source: wsj
Ford to Build B-Max?
AutoExpress has posted an article that states Ford has given a green light to a Fiesta-based B-Max MPV. This B-Max would replace the slow-selling and frankly quite dowdy European Fusion (which is based off the previous Fiesta). For comparison I've placed pictures of AutoExpress' rendering of what a B-Max might look like and the current Euro Ford Fusion above.
We're all waiting here in the U.S. for the Fiesta to finally arrive on our shores. While there has been rampant speculation that we'll get the larger C-Max, the chances of a B-Max (if it is produced) in the U.S. are probably much slimmer.
source: AutoExpress
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