Issue 1295
May 7, 2025
 

About The Autoextremist

Peter M. DeLorenzo has been immersed in all things automotive since childhood. Privileged to be an up-close-and-personal witness to the glory days of the U.S. auto industry, DeLorenzo combines that historical legacy with his own 22-year career in automotive marketing and advertising to bring unmatched industry perspectives to the Internet with Autoextremist.com, which was founded on June 1, 1999. DeLorenzo is known for his incendiary commentaries and laser-accurate analysis of the automobile business, automotive design, as well as racing and the business of motorsports. DeLorenzo is considered to be one of the most influential voices commenting on the business today and is regularly engaged by car companies, ad agencies, PR firms and motorsport entities for his advice and counsel.

DeLorenzo's most recent book is Witch Hunt (Octane Press witchhuntbook.com). It is available on Amazon in both hardcover and Kindle formats, as well as on iBookstore. DeLorenzo is also the author of The United States of Toyota.

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Sunday
May042025

“WHAT WE’VE GOT HERE IS… FAILURE TO COMMUNICATE.”

Editor's Note: This week, Peter returns to the tarfiff issue, placing blame squarely on the automakers for the incredibly ugly situation they find themselves in (which is about to reverberate across the industry and to consumers). There is plenty of blame to go around, but a "failure to communicate" Detroit's position lies with the auto CEOs. In On The Table, we take a look at the Porsche 911 Carrera Coupe Reimagined by Singer, which was inspired by the rare wide-body variant of the 911 Carrera from the 1980s. Our AE Song of the Week is "Who Will Save Your Soul" by Jewel. In Fumes, we have the next installment of Peter's riveting new series, The Great Races. And in The Line, we'll have F1 results from the Miami Grand Prix and INDYCAR from Barber Motorsports Park. Onward! -WG

 

By Peter M. DeLorenzo
 
Detroit. Those famous words, spoken by Strother Martin, aka the “Captain,” from the 1967 film “Cool Hand Luke” starring Paul Newman, have particular resonance this week. What many people don’t remember about that quote is what Martin said immediately after, which was, “Some men you just can't reach. So, you get what we had here last week, which is the way he wants it... well, he gets it. I don't like it any more than you men.”

Right now, automotive CEOs based here in the Motor City are reeling from the latest round of nonsensical tariff “adjustments” being made by the Dictator-In-Chief. Adjustments that have no rhyme or reason and that do little to assuage the relentless chaos that is gripping this industry.

As the Detroit Free Press reported, “… after President Donald Trump signed an executive order offering automakers what he called ‘a little bit of help,’ on tariffs, Ford CEO Jim Farley took to America's airwaves — speaking from Ford's factory floor in Louisville, Kentucky — to say the president's action clarified some issues around tariffs, but did not go nearly far enough to help automakers keep vehicle prices in check.”

"Boy, do we have a lot of work to do with the administration," Farley told CNN's Erin Burnett on April 30. “Farley said the Dearborn-based automaker has a direct line to the White House,” the Freep said, “and has ‘worked with (Trump's) team like every day for the last couple of months.’”

Farley also said that Ford had “teamed up with General Motors CEO Mary Barra and Stellantis leadership in efforts to ‘figure it out together’ on how to convey a key message to Trump,” continued the Freep. "Affordability of parts is a really big thing for America because we’ve got to keep the vehicles affordable. Yes, we want to make them like Ford does, in the U.S. But, we also want to make the vehicles affordable that are built in the U.S., and parts are critical for that.”

To all that I say, what part of this do these automotive CEOs not understand? They’re unable to make plans, they’re staring at losses in the billions (Barra says tariffs will cost GM $5 billion, for starters) and they literally can’t count on anything – they’ve suspended all financial guidance for the foreseeable future – because the Stumblebum-In-Chief bases his entire view of the business world on hoary notions grounded in the moribund 80s, which have as much relevance today as a Liberace TV special would.

That these tariffs are fundamentally destructive to the U.S.-based automakers can’t be disputed, but the fact that these CEOs are naïve about the idea that they can convince this administration to reverse course is laughable. This just in: You can’t rationalize with horribly misguided, relentlessly irrational toadies and sycophants. While this administration careens around spewing one stupid idea - and lie - after another, suggesting that things will somehow magically turn around any minute now would be even more laughable if it wasn’t so tragic. This is the most pathetic example of “It Won’t be Long Now!” I’ve ever seen.

Right now, this administration is wielding its unfettered and unchecked power to lord over American industries while crushing their ability to compete in global markets. Meanwhile, China Inc. is forging ahead on all fronts, completely taking over the global automobile industry, while establishing new milestones in electric vehicle technology almost by the month.

In case you’re wondering, or holding out hope against hope, this isn’t going to end well for the U.S. automobile industry. As I’ve stated previously, the tariffs being capriciously applied are nonsensical and offensive to people in this region and basically everyone else in the rest of the world. And these tariffs threaten to decimate this town and the business that drives it. Not that anyone cares in Washington. After all, politicians have consistently demonstrated that they only care about Detroit when they’re looking for campaign contributions. That this calculated ugliness is compounded by the reactionary, juvenile hack who currently sullies the Oval Office makes it that much worse.

As I've stated previously, the current administration has the U.S.-based automakers by the balls. Doing a redirect of plants, supply chains and suppliers, etc., is simply not feasible. There is no quick turnaround on offer, no quick fixes, no knee-jerk solutions due to the pathetic politicians currently wreaking havoc in Washington

These companies’ fundamental ability to make money will be decimated, while the American car-buying consumer will be left languishing in a cesspool of sky-high payments and severely reduced transportation options.

In short, this Shit Show is the new – and ugly – reality for Detroit. Congratulations to all of those CEOs – who are now shouting from the rooftops about how bad this all is – for signing up for four long years of this mayhem. Your collective failure to get through to the Washington hacks is a monumental failure to communicate this industry’s position. Let me reiterate what I’ve previously stated: You knew better, but you failed yourselves and everyone associated with this business. Will some of these CEOs and leaders of the big suppliers fall by the wayside because of their serial incompetence? One can only hope. Wait a minute, check that: you can count on it.

And that’s the High-Octane Truth for this week.

 

 

Editor's Note: Click on "Next 1 Entries" at the bottom of this page to see previous issues. - WG

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