Sunday, November 23, 2008

Axon 100 mpg.



Move over Prius, upcoming gasoline car gets 100 mpg

London (England) – A British auto maker thinks gasoline is here to stay and has introduced a carbon-fibre body car that gets up to 100 miles per gallon. Axon Automotive’s diminutive car has a very light 26 kilogram engine that still manages to achieve a top speed of 85 miles per hour. The interior of the car is also environmentally friendly with the seat covers and upholstery made from recycled pin-stripe suits and jeans.The Register has some great details about the car and you can see their article at the link below. Unlike many high-efficiency cars coming out today, the Axon vehicle sticks to a gasoline only engine. A lightweight and aerodynamic body contributes to the car’s impressive miles per gallon claim.
The entire chassis is made from carbon-fibre and weighs approximately 400kg. Founder Steven Cousins says the body panels can also be made from the same material. The 26kg 500cc two-cylinder engine is designed to be easily serviced and if you have any troubles the company will send you a replacement engine while the original one is being checked.Cousins said the car can be quickly brought to market because his tooling costs are relatively low compared to traditional steel-chassis cars. Axon is aiming for a 2010 launch date and a retail price of 10500 pounds which will probably translate into $50,000 by the time the car is available.
This car has been shown off before at various green automotive shows, but it seems people didn't take the manufacturers seriously.


Reprinted/Courtesy Humphrey Cheung

Sphere: Related Content

Saturday, November 22, 2008

Hirsh: Make Big Banks Pay for Financial Crash | Newsweek Voices - Michael Hirsh | Newsweek.com

Hirsh: Make Big Banks Pay for Financial Crash Newsweek Voices - Michael Hirsh Newsweek.com

Check out this link...

Interesting report from Michael Hirsh

Sphere: Related Content

Friday, November 21, 2008

General Motors is returning 2 leased jets... Announcement came after congressional scrutiny of the executives mode of travel...



BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!


General Motors has just announced that it is returning two leased jets, after Congressional members criticised there high end travel arrangement to Washington DC this week. As executives of the Big 3 (GM, Ford and Chrysler) approached the U.S Government for a Federal Bailout Loan/Aid, after the session with Congress the executives have been hit hard with a wave of negative publicity.

As many taxpayers have put plainly, it just didn't send the right message as there companies are on the brink of Bankruptcy.

GM spokesperson Tom Wilkinson made a statement today that GM has made a decision to return two more of the companies seven leased jets it had at the beginning of the year, because of a "aggressive cut back in travel". Mr. Wilkinson said that the decision to return the leased jets was made before the congressional hearing and that the company returned two other jets in September.

It should be noted that the top executives at GM and Ford are required by their companies to fly private aircraft for security reason, according to it's filings with the Security and Exchange Commission. Cerberus the company that owns Chrysler, since it is private does not have to disclose it's requirements.

All of this begs to question the grasp that Mr. Wagoner has on the company, if a decision had been made to cut back why not state that at the hearing and lesson some of the negative face that was sure to be painted when the question was asked. If the decision had been made on effectively cutting more than half of your corporate jet fleet, that sends a clear message that the company is making changes.


Ford has not made a statement regarding any cutbacks in the use of it's corporate jets. It should be noted that Mark Fields, President of Ford North America, relinquished his use of a corporate jet nearly two years ago as criticism mounted when Ford was making huge cutbacks and losing billions of dollars.

I said it once and I will say it again, next time Mr. Wagoner, Mr, Mulally and Mr. Nardelli, fly into Virginia or Maryland and drive in or drive from New York or Detroit with a caravan of your latest products and future products with your business plan in hand demonstrating your commitment to be good stewards of the taxpayers money.

Enjoy Today!

That Car Guy

Sphere: Related Content

Thursday, November 20, 2008

The Big 3 flew to meet congress with there hands out on there private jets... Can someone use some PR (Public Relations) about now...

Lets be fair for one minute, the executives that run General Motors, Ford and Chrysler have very busy schedules and time is money in the world of big business. To fly commercial to Washington from Detroit and New York (where GM and Chrysler hang out) on there private corporate jets saves them time most certainly, have you seen the lines at JFK and Laguardia in the morning.

But as I have said for years, the PR machines for these companies is atrocious, starting with the notion that they do not make fuel efficient vehicles, that the quality of the vehicles are poor and the list goes on. The facts are they make more fuel efficient vehicles than the imports especially GM, the quality is on par if not better in many categories (does anyone check the recalls for Toyota and Nissan with NHTSA), these types of misstatements, myths and public opinion should have been dealt with long before this latest fiasco.

Who runs the PR machines for these people! GM produces a Internet commercial to address the misinformation that is circulating about it's need for money, yet the same advertising or PR firm can't say hey let's show up in Washington DC driving our new technology, can anyone say Chevy VOLT.

How about Ford or Chrysler's' Public Relations staff saying let's roll out the full array of our vehicles and demonstrate that we are innovative and have vehicles that will meet the needs of the driving population now and into the future including electric and hybrid, it could have been the biggest publicity campaign they could have waged in years probably ever.

Can you imagine a parade of vehicles headed to the steps of Congress, that's PR bigger than the L.A., New York and Detroit auto Shows combined, the whole world would have been watching and the parade would have been the lead story on every major network and hometown paper in the world.

So fly into Virginia or Maryland or from New York (even better) and drive to Washington DC next time, Mr. Wagoner, Mr. Mulally and Mr. Nardelli. I guarantee that you'll get some favorable press that will save your tales from the Chapter 11 heap.

Oh, and another thing, you guys showed up without a business plan on how you were going to use the money, you expect more from a mid-level manager or your dealer network. What would you expect congress to do except send you back home and come back when you are better prepared and can demonstrate that you guys will be good stewards of the taxpayers money.

So here you go guys I have served up the greatest event that you could ever do for your image and assistance in making a powerful statement to Congress and to the taxpayers. Drive your full fleet of vehicles, which includes your new technologies and make an event of it.

And another thing, get rid of your PR firms and get a group that can reshape your images.

Enjoy Today!

That Car Guy

Sphere: Related Content

General Motors produces a Fact and Fiction Commercial to assist in it's Bailout Campaign...

I am posting the new GM web/Internet commercial in it's entirety titled "GM Fact and Fiction", obviously designed to assist in it's bid to win congressional approval and influence lawmakers votes to bail the company out of it's financial crisis.

Enjoy Today!

That Car Guy

Sphere: Related Content

Dodge introduces Dodge EV Sports Car at L.A. Auto Show...


Dodge introduces the DODGE EV sports car at the Los Angeles Auto Show. The lightweight aluminum chassis developed by Lotus is an all electric "plug in" type vehicle that promises a driving range of up to 150 miles.

The lithium ion batteries along with its all electric 268hp engine delivers 0-60 mph in 5.o seconds and will do the quarter in 13.0 seconds with a top speed of over 120 mph. Dodge is hoping that these statistics will deliver customers to it's showroom, however the vehicle isn't expected to hit dealer showrooms until 2010.

Pricing has not been determined and Dodge has not stated an exact time frame for delivery to dealerships.

Note: Without a Auto Bailout package, Dodger will be hard pressed to deliver on this promise.

Enjoy Today!

That Car Guy

Sphere: Related Content

Tuesday, November 18, 2008

Should we bailout Detroit's Big 3? Will the bailout work? and other thoughts and opinion's...





With a potential bailout of the auto industry imminent and the high probability that if it doesn't happen GM and Chrysler will have to seek Chapter 11 reorganization, and Ford will not be far behind because of shared suppliers and other vendors who will have to seek Chapter 11 or worse Chapter 7 Bankruptcy protection. I want to address a few things that the manufacturers, the broadcast media and others are just getting plain wrong about how we got here.
The comments and reporting on this crisis has reached just about a fever pitch and will be front and center until a decision is reached on the matter. As you read this article the executives from the Big 3 (GM, Ford and Chrysler) have met with congress to plead there case before a panel designed to hear there case.
I understand that there will be opinions for and against the matter, however in order to fully understand what is transpiring I want to note that a lot of opinion has been based on a narrow perspective and not fully objective. Now I have not fully quantified the impact and the magnitude of a total collapse of the auto industry, although I have read several opinions on the issue. I do know that it will be big and far reaching, we are talking a global impact that will take a scholar with more mathematical skills than I have to assess.
Other opinions on why the industry has collapsed range from blaming the industry for poor decisions, blaming the unions and blaming poor quality and design. While we all have strong opinions, I feel it is best to look at those decisions that have impacted the industry the most in its downward spiral.
To blame the Big 3 entirely on this current mess is really shortsighted, the lion share of the blame in it's current state goes to the financial industry which has not only crippled this industry but is crippling industries far and wide. The financial machine (banks, finance institutions, insurers and brokerage firms) has provided false data to it's shareholders and to our government for years. You would never be able to understand your own financial position if your finance institution gave you a false since of security, of which you thought you had a partner to assist in your financial plans. Most companies, including it appears our government was blindsided by the amount of AAA rated security instruments that were hiding bad loans, these loans were on financial institutions balance sheets as great assets.
Lets be fair, Toyota, Nissan and Honda are not out of the woods yet, I have said for years that Toyota will teeter towards disaster faster than even I expected if the economy doesn't turn around or if there is a supplier meltdown in the coming days and months and Nissan will not be far behind. Honda should escape this mess because of there manufacturing and supplier model and there costs to operate. It should be noted that the manufacturers (including suppliers) dependence on the finance industry is heavy and the tightening of credit in a heavily dependent business on easy access to credit is stifling, not only towards the manufacturers ability to conduct there daily business but particularly with the retail network to provide credit to customers and that same network securing credit lines to finance the inventory. The impact of what has transpired with the finance institutions is much more far reaching than anyone has been able to accurately detail.
I have been amazed at how an industry which enjoyed huge sales and even bigger profit opportunities reached a point in which it has failed so miserably over the last couple of decades. The business lessons that will come from this will be discussed for years to come in colleges and university across the globe.
So here are a few of my thought and opinions; the mess that this industry has found itself in is a business executives worse nightmare and could not totally be attributed to the decisions that executives at the top of these manufacturing concerns made. Although we can make a strong case that a host of decisions made by these executives have cost these industries dearly and I will outline those as I state my opinions. But the current crisis is a perfect storm of things which has created a tsunami that even the savviest of business executive could not navigate unless they had a pot load of cash. The intricate nature of all of the pieces necessary to make a vehicle, supply it with parts? transport it and retail it are interdependent and if one of these pieces doesn't work the whole system doesn't work, so even if the bailout happens for the manufacturer, what happens for the suppliers? What happens to the shipping industries? What happens next for the retail dealer body?
These issues must be addressed in a comprehensive manner otherwise the efforts to raise needed cash for the manufacturers is moot, if the suppliers can't supply and the dealerships are closed to retailing, the supply chain is seriously damaged and the image of this once prestigious industry will erode. With that, where there was once failure, a new model will emerge, the questions become how soon and who will it be?
As we examine the missteps of the Big 3 over the last couple of decades it is easy to see that misguided and uninformed executive management failed to provide a long term strategy to adjust to the ever changing retail climate. While the Big 3 were having a drunk fest on the profits that they were making off of trucks and SUV's they never addressed the changing taste of it's customer base for better styling and cost efficient vehicles in a timely manner. Not to mention the notion that in particular GM felt it was bullet proof, I asked a manufacturers representative about 10 years ago why doesn't General Motors consider the entry level buyer, the remark was along the lines of the company felt that they provided enough selection to meet there customers needs and that they could not be all things to everybody. Basically what the corporate line was they were conceding the entry level and car segment to the imports and that the segment that was in demand at the time was trucks, especially SUV's, my comments were, as a dealer we were losing sales to the imports and even more importantly we were losing a whole customer base, as anyone in retail knows that if you have an opportunity to gain there confidence when they enter the vehicle market, you share a greater chance in owning that customer for life. The bottom line, GM could not make money selling cars, they couldn't figure it out with there cost structure and probably felt that they would adapt as they went along.
I shared a similar conversation with my Lincoln Mercury representative regarding there Lincoln Town Car, my statements centered on the grounds that the Town Car customer was defecting to Lexus and BMW and the company line was similar to what my GM dealer rep stated. The point was they could have cared less that the product did not have any appeal to a large segment of the demographic they were trying to reach as there focus was elsewhere, there bottom line right now, not there bottom line in the future.
The Big 3 manufacturers failed to deliver for the future, the notion that management was not working hard and that they were mismanaged is arguable, because the demands to produce a bottom line took precedence over any long term strategy, we can argue that by this definition they were mismanaged, but in Wall Street shareholder terms they worked tirelessly to deliver profits, the pressures to satisfy Wall Street demands are staggering, this is precisely what Cerberus was trying to tackle when they purchased Chrysler, but the bottom fell out of the finance markets. Cerberus banked on it's ability to focus on a long term strategy to reinvigorate the brand and find success with innovation that imports would be hard pressed to match.
Beyond this, I find that for all of the brain trust that would be accessible to these manufacturers, no one seems to realize that a basic economic principle escaped them as they worked hard to downsize and produce profits for Wall Street. It is truly economics 101, supply and demand, a decision made by all three manufacturers to start manufacturing vehicles in Mexico and Canada has cost the manufacturers many more Billions than they realized by not renegotiating Union contracts and reducing other cost that were draining there cash at the time.
This is simple economics, just look at market share 30 years ago when these same manufacturers enjoyed a robust 75% market share and employed millions of people directly and indirectly. The cities and towns where there vehicles were made and the suppliers who supplied them were loyal customers who had a brand loyalty that was the envy of companies worldwide. I heard constant stories when I opened up a Ford dealership in a predominantly GM town and was told that I was going to have a hard time selling Fords in a GM town. The loyalty to GM was amazing, these folks knew that there bread was buttered by GM the whole town knew that there bread was buttered by GM, I am talking the bankers, the insurance agents. the real estate agents, the mom and pop shops, the friends, the families, just about everybody in the community was a loyal customer and in most of these cities and towns they enjoyed healthy 75 - 90% market share. This market penetration was not lost on the cities and towns that employed these auto workers and suppliers it extended to other cities and towns because of the extended nature of friends and families. The connection was far enough reaching that by the very nature of the benefactors who benefited from the manufacturer and supplier relationship, it influenced purchasing decisions beyond geographic borders of a particular community. The tentacles of this relationship was a tremendous business model that virtually guaranteed success, people were buying the product because they had a stake in it's success, the demand.
All of that was lost when manufacturing picked up and left these towns, it was lost on the suppliers and ancillary businesses who had a stake in the success of these manufacturers. Demand waned, not all at once, but over time as it took time to move these huge operations to other geographic areas beyond the borders of the United States.
I am confident that the accountants justified the decisions to move operations, but who provided the economic impact that these moves would have, not on the bottom line, that was an easy sell, but on the full economic impact that would be lost on all of the businesses, employees, families and friends had on the bottom line with the purchases that were made by these groups. The reasons why they were loyal were clearly related to the business model that was created inadvertently or not, it was there and strong. It was not dependent on a new model design or a freshened up product. It was dependent on the infrastructure that was created by an economic system that was rooted in economics 101. The manufacturer had a product and had loyal customers who wanted to purchase that product.
The failure of the manufacturer then failed to prop up their own economic infrastructure by adjusting to the new demands placed on it by a buying public who did not have the same loyalty that they had with the earlier business model. Instead they forgave market share as they concentrated on profits and as there grip on loyalty eroded, they justified there business case by there profit margins, these manufacturers enjoyed tremendous profit margins just a few years ago, mostly from there finance arms, but profit was profit.
Additionally the new business model was wound so tightly with what the manufacturer would have us to believe was wage disparity and although they found low wages in Mexico and Canada, particularly in Mexico, the wage scale that was paid did not allow those same workers to enjoy the fruit of there labor, namely a new car for them and one for there family, oh and one for the businessman in the community and so on.
Economics 101 people failed the Big 3 miserably and the future looks cloudy for it's survival in the near future, at least the bloated business model as we know it.
Should we bail them out? Not a blanket bailout like Chrysler had enjoyed, we must understand that there will be additional fall out even with a bailout, to think that there are some suppliers and a whole host of dealerships that will cease to exist in the coming months would be naive. But by and large the precedent was set when the financial institutions received a lifeline and they do not employ and create jobs at nearly the same rate as the auto industry, so yes they need a lifeline too. But a clear mandate on conditions and tight oversight to ensure that the bailout is going to sustain the industry now and into the future.
The bailout will work if a business model can be created that shows innovation, downsizing to meet market demands and addressing the legacy cost of the retirees, if those things are not addressed, the bailout of the Big 3 auto manufacturers will fail miserably and fast. The market demands in this environment will only deteriorate an already diminishing return. The only way outside of a bailout is a reorganization (Chapter 11) and start downsizing and starting over as we have no idea how long this downturn is going to last, GM ends up with Chevrolet and Cadillac or some model like that. If these things cannot be addressed, you might as well flush the money down the drain.
Enjoy Today!
That Car Guy

Sphere: Related Content

GM has decided to delay incentive payments to it's dealer body... Read the letter that Mark Laneve GM's Vice President sent out to dealers...


BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!

Here is a copy of the letter that GM's Mark LaNeve, Vice President of North America, sent to the General Motors dealer body explaining why they are delaying dealer incentive payments to them.

We are reaching the tip of the iceberg, if GM cannot find some free cash flow, they will not make it till the end of the year. The company is just burning up to much cash coupled with the worsening economy, it isn't nimble enough to make adjustments as retail sales worsen.

Enjoy Today!

That Car Guy

HERE IS THE LETTER:


GM LETTER TO DEALERS
To All Dealers:
I am writing to you to update you on changes we are going to implement with regard to the incentive payment schedule.
As I discussed in the IDL last week, one of the biggest issues facing General Motors is our liquidity. That is the cash we have on hand to pay for our regular operating expenses.
In this cash crunch, we have examined every aspect of our business in an effort to improve cash flow, including our relationships with all of our key stakeholders, like suppliers, agencies, employees and dealers. In this regard, we are implementing minor changes to incentive payment timing. So, what does this mean for you? Basically we are delaying the payment of the incentives by two weeks. Here is the new schedule that will be in effect until further notice:
· Incentive applications previously scheduled to be paid on November 28th and December 4th will be delayed to December 11th and December 18th respectively. Please see the attached payment schedule.
· Weekly incentive payments will continue thereafter reflecting one week of dealer application activity. On average, payments will be made approximately 2 - 3 weeks after a valid dealer application has been processed by GM. Effectively this is a 2 week delay from the current schedule.
· As a result of this retiming you will not receive any incentive payments on November 28th and December 4th.
This liquidity crisis has an obvious effect on all of us. As you are aware we are asking the federal government for some temporary relief. I need your continued help in talking to Congress. There are three things you need to ask your congressional delegation for:
· First, ask the government officials to approve a new $25 billion loan package to help us deal with our current liquidity crisis.
· Second, while the rules for the distinctly separate and already approved $25 billion loan package for investments in technology and enhanced fuel efficiency have been issued, we'd like to see that program move as fast as possible, so we need to encourage the government to minimize red tape and act on loan applications as quickly as they can.
· Third, the automotive industry needs some additional government support to stimulate retail sales, like making interest on car loans tax deductible, etc.
We've set up a website that will assist you in making your voice heard in Congress and to help spread the message. Please visit www.gmfactsandfiction.com. If you have not already done so, please call and e-mail your congressional representative.
This is a critical time for our industry, your dealership, and General Motors. Please continue to do what you do best, selling vehicles one customer at a time. Please make every effort to integrate your promotions with the recently announced Red Tag sales event.
Together we can work through this crisis. As always, thank you for all of your hard work and effort.
Good Selling.
Mark R. LaNeve
GMNA Vice President NA Vehicle Sales, Service & Marketing

Sphere: Related Content

Thursday, November 13, 2008

GM prepared to lay off 35,000 people by this weekend 11/14/08...




BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!


I have been informed that General Motors is preparing to lay off more than 35,000 auto workers by this weekend. I have not been able to confirm this report, however I have been informed that GM has notified state and local agencies of it's intentions as required by law. These lay offs are individuals working mostly in the Midwest and some other parts of the country, a mix of Blue Collar and White Collar workers, an across the board slashing of hourly and salaried workers. I have not confirmed but more than likely any announcement will shut down more than a couple of manufacturing facilities.


The action is being taken to conserve GM's cash reserves to meet it's obligations over the next few months, as tries to reach a bailout deal with the Federal Government. This is a drastic move and is further evidence that the auto industry is in real trouble. This latest move to conserve cash will effect many more auto suppliers and support industries and will devastate many local economies. This move does not have a timetable to indicate if it is a permanent move or temporary.
The auto industry is definitely in peril and if it fails it will effect more than 1 in 10 workers in this country. It has been widely reported that GM will be out of cash by years end and any talk of bankruptcy will damage the company beyond repair.
Enjoy Today!
That Car Guy

Sphere: Related Content

Thursday, November 6, 2008

Toyota Profit drops 73.6 % for the fiscal year ending March 31, 2008... I said it before and I will say it again Toyota is headed for a big fall...

Katsuaki Watanabe
President, Toyota
Toyota is facing a current profit crisis that they have never seen before, as sales fall in North America and a rising yen.
Toyota has now reduced there year end outlook as the company headed by Katsuaki Watanabe looks to find solutions. Mr. Watanabe who was picked to continue to lead the company in continued profitability has more than his hands full. Mr. Watanabe is the Chairman of a select committee in charge of making sure that the company is stays in the black over the course of the next two years.
Toyota North American sales fell 9.4 percent between the periods of April - September 2008 and the entire company has slashed there full year global sales outlook 7.6 percent to 8.24 million vehicles for there fiscal year.
I have predicted for quite some time that the meteoric rise of this manufacturer over the last few years as the overall retail auto industry has slowed cautioned me to look at how Toyota was prepared to handle there success especially as it related to selling and marketing there product lineup. Consumers love there vehicles, however the product mix is all wrong for the current climate, we all new that the Domestic manufacturers mix was wrong, but as the love fest with Toyota has been reaching the crescendo, I saw chinks in the armour.
The market has not been keen to retailing trucks and SUV's over the last few years and with the fluctuating gasoline prices and tightened credit markets people are not buying these vehicles.
And Toyota has to sell a lot of them to remain profitable, in addition what are they going to do when these vehicles come back from there current leases as the financial industry is backing away from leases and rapidly deteriorating residuals plus used car valuations plummeting is a perfect storm for Toyota's current and future profit problems.
I don't want to say I told you so, but....
More to come...
Enjoy Today!
That Car Guy

Sphere: Related Content

Wednesday, November 5, 2008

BRACK OBAMA Elected President of The United States... Can he save the auto industry...

Barack Obama was elected president of the United States of America on November 4, 2008. History made, and as the President elect voiced in his Election Night Speech, "only in America can his story happen".

Now, Mr. President Elect, we have a Auto Industry crisis looming and verging on catastrophe, and the industry can use a little assistance.

As this story is being written, the Big 3 auto Manufacturers are preparing for a congressional begging hearing, under the auspices of needing money for research and development, for the further development of hybrid technologies. In short they need money bad and raiding the treasury coffers is just the ticket for a low, low interest multi billion dollar loan.

Mr. President Elect can you help an industry out?

Enjoy Today!

That Car Guy

Sphere: Related Content