ON THE TABLE

May 25, 2011

 Chrysler. The soon to be totally Italian-owned automaker announced the repayment of $7.6 billion in loans to the U.S. and Canadian governments almost two years after it was handed over to Fiat by the Obama administration. Chrysler put together a refinancing package that includes a loan of $3 billion, debt securities totaling $3.2 billion and a revolving credit line of $1.3 billion to pay the loans off, saving an estimated $350 million a year in interest. The result of this deal? Fiat's stake in Chrysler will rise to 46 percent by next Tuesday, and sometime in 2012, the former U.S. automaker will be 70 percent-owned - if not more so - by Fiat. This is all well and good, but until Fiat-Chrysler can demonstrate that it can bring to market a mainstream mid-size automobile that's a certified hit, their future is only semi-bright. Just thought we'd throw that little reminder out there, folks.

The UAW. Uh-oh, there's trouble in Solidarity City. The Bad News? VW announced that workers in its new plant in Chattanooga, Tennessee, will get approximately $20 less an hour than workers who toil in Detroit Three plants. The really Bad News? This is right before contract talks with the Detroit-based automakers begins this summer. Even worse? The UAW has few if any options left but to allow for more entry-level workers to be hired in its Detroit Three plants (the number is currently capped at 20 percent). Remember, Bob King has insisted all along that his union would make dramatic inroads in turning the import auto plants here in the U.S. over to being UAW facilities. That is not only notgonnahappen.com, but by the time this whole "negotiation" process is finished, in a little over three years time we may very well see the end of the UAW as a viable entity altogether. The sun has set on the UAW empire once and for all. They just don't know it yet.

BMW. Executives from the German automaker are deeply puzzled as to why the 5-series GT has been a total failure in the U.S. market, which is yet another reminder of just how out of touch most marketing executives are at these German automakers. Hmm, why didn't the 5-series GT sell over here? Let's review, shall we? 1. It's butt ugly. 2. It's overpriced. 3. Did we mention how singularly unattractive it is? 4. Giant hatchbacks never sell here. Period. And 5. Owners got tired of pulling up to the country club and being asked , "What is that?" And BMW execs actually thought that when they discontinued the 5-series wagon here last year that the 5-series GT would be just the ticket for BMW wagon buyers looking to trade-in? How about no? Oh well, BMW will quietly fade the 5-series GT out hoping that people will just forget about it. But give these guys some time, because they'll figure out something else to screw up again, we have no doubt. That's what happens when you spend too much time talking about "Joy" and patting each other on the back instead of focusing on the core values that once made BMW great.

Toyota. An advisory board commissioned by Toyota after its spate of safety recall trouble suggested that after finally becoming No. 1 in the world  the company got caught-up in arrogance followed by complacency. No shit. And that's our AE "Duh of the Week."

Editor-in-Chief's Note: Our "Quick Take" this week covers the 2011 Chevrolet Cruze ECO. Our Crystal Red Metallic tester was surprisingly engaging to drive, with GM engineers having done a wonderful job in making this compact feel like it hasn't been compromised in the least in order to deliver its 42 mpg highway fuel economy number. Taut, composed, responsive and fun to drive - its slick-shifting gearbox contributing immensely to the driving satisfaction - the Cruze ECO was shockingly quiet and solid. I could go on, but I was definitely impressed with this "ECO" version of the Cruze. I used to think Ford's success with the impressive new Focus would be automatic in this market, and I'm sure it will do exceedingly well. But judging by the well-executed Cruze, GM won't be handing over any share of market in this segment willingly. Chevy Cruze vs. Ford Focus is shaping up to be the battle in the U.S. market for the next 24 months. - PMD

2011 Chevrolet Cruze ECO: $19,745, ($18,175 Base Price; Turbocharged DOHC 1.4L, 6-speed manual transmission; Connectivity Plus Cruise Package - Cruise control, USB audio interface, Leather wrap steering wheel, Bluetooth for phone, Leather-trimmed shift lever, Steering wheel controls - $525; Crystal Red Metallic Tintcoat, $325; Destination charge, $720).

(BMW)
The town of Cernobbio on the banks of Lake Como became the center of the car enthusiast world last weekend as the Concorso d’Eleganza Villa d’Este assembled a selection of classic machines and new concept cars that will be buzzed about for months to come. And for the first time the cars were joined by motorcycles competing for class and overall victory in a competition of their own, as fans of two-wheeled classics headed to the Villa Erba for Saturday’s motorcycle concours. The jury awarded the Trofeo BMW Group, and with it “best of show” honours, to a 1968 Alfa Romeo 33 Stradale, while the time-honored Coppa d’Oro prize decided by a public vote went to an Alfa Romeo 6C 2500 SS from 1942. The “Concept Cars and Prototypes” category was topped by the new Aston Martin Zagato, which celebrated its world premiere at the Concorso d’Eleganza Villa d’Este. Another model making its debut at the event was the BMW 328 Hommage concept, unveiled by BMW to mark the 75th birthday of its iconic BMW 328 sports car from the 1930s.