April 27, 2011
Bob Lutz. Editor-in-Chief's Note: Bob Lutz has a new book coming out on June 9, 2011, entitled "CAR GUYS VS. BEAN COUNTERS: The Battle for the Soul of American Business" (Portfolio Penguin). I had the pleasure of reading Bob's latest tome over the weekend and it's a must read for anyone out there, whether you're an insider or a wannabe, who thinks they really understand the car business. Because as I constantly try to explain to both casual observers and "instant" experts alike, you really don't have a clue as to what this business is really like unless you've operated in the trenches and been able to see, feel, and experience it every day. Bob certainly has and he's done it longer and at a higher level than most people immersed in this business can only dream of. Do you really want to know how screwed-up GM was when Bob was hired to "fix" things back in 2001? Read this book, it will make your hair stand up on end. Things were so FUBAR that it's a miracle the company even survived it. I highly recommend Bob's "CAR GUYS..." it's definitely worth the read. - PMD
Fiat-Chrysler. Editor-in-Chief's Note: Okay, this whole Olivier "I'm a frickin' genius just ask me" Francois thing has officially gone off the rails. After the Eminem Super Bowl spot caused quite a stir, Francois, Fiat-Chrysler's brand president and marketing chief, is making the classic ad man mistake of misinterpreting one-time buzz for real momentum, and he's about to go to the well one too many times. The next Chrysler brand spots will employ Detroit Lion rookie Ndamukong Suh, music icon Dr. Dre, and designer John Varvatos to tell Chrysler's story. "It's all about what I call American luxury," Francois told Tom Walsh of the Detroit Free Press last week. "...showing where you are going without forgetting where you came from." Really, Francois? Not quite. Not even close, in fact. It has nothing to do with luxury, American or otherwise. It's about using severely cynical marketing techniques in an attempt at trying to imbue some of Chrysler's products with real cachet. And it ain't working, pal. This whole "imported from Detroit" thing is about to come unglued because it's flat-out unmitigated bullshit and not true. Chrysler will soon be a wholly-owned subsidy of an Italian conglomerate and there's no amount of smoke and mirrors marketing that will change that reality. You've not only jumped the shark, Olivier, you're about to run the whole thing into a bridge abutment. There's just no there there with this guy, folks. And the sooner everyone sees that, the better off we'll all be. And then maybe we can finally just go back to being the Motor City, and as CeeLo Green says, fuck you if you don't like us or understand us. - PMD
Hyundai. The Korean automaker announced yet another innovative new marketing program last week in New York. Hyundai will agree to pay a guaranteed trade-in amount for Hyundai trade-ins in the third or fourth years of ownership when the owner buys a new Hyundai from a Hyundai dealership beginning May 1. Trade-in values will be based on residuals set by Automotive Lease Guide and the vehicles will have to be maintained at Hyundai dealerships during their lifespan. Did they do this just to piss-off their competitors or because their cars are getting so good that they can? Yes, and yes.
The Diminishing Influence of the U.S. auto market. Porsche is going to increase its number of dealers worldwide almost 30 percent by 2015 to keep up with demand for its growing product lineup. In the U.S., however, Porsche expects to reduce its number of dealers from 200 to 190, according to Automotive News Europe.
Bad media spin. "$4.00 gasoline is changing the industry!!!" headlines from the New York Auto Show shouted. No it isn't. $4.00 per gallon gasoline back in the summer of 2008 fundamentally changed this industry, because decisions made back then went into the car choices we have today.
Honda. The Japanese manufacturer has been back on its heels for so long we're wondering if it's even possible for them to get their mojo back, but nonetheless Honda is said to be working on a successor to the outstanding NSX sports car. President Takanobu Ito told reporters at the Shanghai auto show that the new car would be environmentally friendly because "That's the kind of sports car we want to make." Memo to Ito and company: Please don't fuck it up.
Ford. Keepin' their heads down, stayin' focused, makin' money. It's a beautiful thing.
Bob King. The UAW's Bonehead-in-Chief came up with more words of wisdom for the assembled carpel tunnel-stained wretches in Detroit yesterday as he told them that, "Alan Mulally is a good CEO. He's done a lot of good. But he has a blind spot. He does not see the harm he's doing to his own cachet within both the hourly and salaried at Ford. What he's doing is making it more difficult for us for the upcoming negotiations." Really? The only blind spot on display here is the entitlement mentality demonstrated maliciously and consistently by the UAW for going on 50 years now. King also mumbled something about the union's ongoing talks with German and Asian manufacturers operating plants here and the drive to unionize them, and the fact that he thinks it would be a great idea that the UAW has board seats on what's left of the Detroit Three. Two things we can safely are nevergonnahappen.com.