Toyota To Recall 3.8 Million Vehicles

BREAKING NEWS! BREAKING NEWS!

In what I can say unequivocally would happen three years ago, I told you so, well not to this magnitude, but sooner or later in Toyota's quest to become the worlds leading auto maker, the teflon shield would start to crumble.

The perils that dogged General Motors for the better part of the last 2 1/2 decades, "QUALITY" would come to inflict pain on Toyota Motor Company. When you become as large as General Motors and now Toyota, quality issues will rear it's ugly head and cause havoc on consumers perception and viewpoint on a manufacturer and becomes even more difficult to change. Audi could do it as it was much smaller and although nearly out for the count, the sample size of vehicles were minimal in comparison to the millions of vehicles that GM and Toyota sell. To many opinions and misconceptions will abound and becomes a public relations nightmare, were talking 3.8 million vehicles and the families that are associated with those vehicles, you do the math.

The recall effects 3.8 million Toyota and Lexus vehicles mostly from a 2-3 year period and is associated with the deaths of 5 people. The problem is mostly linked to a loose fitting floor mat jamming the accelerator and is recommended that the vehicles in the recall should come into a local Toyota or Lexus dealership and have the non fitting floor mat replaced. Until then it is recommended to remove the driver side floor mat until the owner can get to the nearest dealership for replacement.

Enjoy Today!

Kevin Kimbrough

That Car Guy

Sphere: Related Content

2009 Top 10 Vehicle Sales Leaders, Through June 2009

2009 Ford F 150

The Top 10 vehicle sales leaders through June 2009 are out and not much has changed since last year. Although automobile sales are down in the North American market by 35.1% and the overall market not expected to sell more than 10 million vehicles by the end of the year, the current Cash for Clunker rebates may provide a mid year boost to overall sales.

2009 Best Selling Vehicles (thru 6/09):

10. Honda CR-V

9. Ford Fusion

8. Dodge Ram Pick-up

7. Nissan Altima

6. Honda Civic

5. Toyota Corolla/Matrix

4. Honda Accord

3. Chevrolet Silverado

2. Toyota Camry

1. Ford F 150

Sphere: Related Content

General Motors Exits Bankruptcy, What Does This Mean To You

General Motors exited federal bankruptcy 7/10/09 and many have questioned what does this all mean to me. While there are many promises by the new company and our federal government about the so called "New" GM, it will remain to be seen how this new company resonates with consumers and how it can position itself to repay the $50 million dollars in Government backed loans.

GM CEO Fritz Henderson said, "Business as usual is over at General Motors", I ask, really? with a just announced re-badging of the Pontiac G8 as the new Chevrolet Caprice, you certainly fooled me, isn't this more of the same, isn't this what the old GM did? We have seen this story before, not saying that the Pontiac G8 is not a mighty fine vehicle, which it is, but the public is demanding fresh and bold, new and exciting, Pontiac G8, been there, done that.

Bob Lutz is stating that he is staying on after after being scheduled to retire (he is 77 years old) will end up being GM's Vice Chairman in charge of creative design, brands, marketing and communications. Haven't we been her before, I like Bob Lutz and i think he brought alot to the "Old" GM that they sorely lacked, boldness, some outside collaboration and other attributes. However, I honestly believe that when things get comfortable again, people fall into there old ways and it is high time to bring in outside direction, much like Ford Motor Company did with Alan Mullaly, who was hired from Boeing.

GM needs alot more cash and market capitalization to be in a position to repay the taxpayers much more than they had when GM's market capitalization peaked at about $56 Billion dollars, it needs a minimum market capitalization of $67-$68 Billion dollars to even think about repaying the debt that it is carrying now according to many industry experts. It's market share needs to increase from an expected 16% as it exits bankruptcy to 22-27% a number it has nit reached in quite some time.

With a proposed 2010 IPO, the company could raise some cash to assist in paying down the debt it now has, including the remnants of the pension plans that the "New" Gm is still responsible for.

This may be well and good but the company will have to perform well in the coming year or so to get the confidence of the investment markets to pull off a windfall in a new round of share offerings.

It remains to be seen, what the "New" GM will shape up to be, but they must look towards truly re-inventing itself an d not provide lip service as the current changes to me feel awfully familiar, a road we have been down before.

Enjoy Today!

Kevin Kimbrough

That Car Guy

Sphere: Related Content

What Is Going On With GM Forcing Dealers To Sign Participation Agreements Or Face Termination... What's Next?

As the free enterprise system is turned upside down with the financial meltdown, mortgage crisis, bankruptcies by major corporations, including General Motors, companies across America are being forced into making major cut backs in employees, expenditures and deal with a less than stellar economic forecast in the foreseeable future.

Particularly as General Motors has gone to Washington D.C. with hat in hand and lawmakers and the current administration willfully opening up the taxpayers piggy banks, GM has taken the opportunity through the bankruptcy process to force the hand in it's favor away from many of it's stakeholders.

One of the principle stakeholders that the company has no investment in and cost the company virtually nothing as GM cost shifts at unprecedented rates, is it's dealer body. The remaining dealer body that has weathered tremendous economic conditions over the 100 years of GM existence and persevered through great adversity is now being forced to sign "Participation Agreements" or face franchise termination.

These "Participation Agreements" are requiring the remaining dealers to comply with company upgrade and program requirements that the company requires during the bankruptcy process. The remaining dealers who have received the letters have until mid-June to sign and return the agreements and if the dealers do not comply with the request, General Motors will terminate the existing franchise agreement.

To the outside world this may seem simply as a company requesting an authorized franchisee to do what is in the best interest of the company and compliance should not be questioned. However in the world of auto dealer and auto manufacturing relationships, this becomes a another tool in which a major corporation with the power and might of GM (now backed by the U.S. Government), has a new tool to impose it's will on an independent businessman or woman without regard to market conditions or an assessment of need in a particular dealerships sales area.

The heavy hand of GM dictates need, no questions asked, do this or else seems to be the new corporate by line towards factory and dealer relations. It truly is a sad day for dealers, the individuals, cities and towns that depend on these dealers now have to spend excess monies to fund projects for GM in another cost shifting move to comply with whatever the factory wants, now the independent dealer must do, or else.

The corporate position is firm, Mark LaNeve said in a company statement, "GM expects them (the dealers) to perform well on customer satisfaction scores and sales, have their facilities up to speed and not have any non-GM brands in their showrooms". Dealers should and will expect tough requirements moving forward through this process, I ask, individual markets have significantly different market expectations and no one is giving dealers any bailout or any monies at all. The remaining dealers, many of them are in perilous financial conditions currently and will get even worse if the sales climate does not improve soon.

The big twist in all of this, the biggest glaring clause in the agreement states that the dealer agrees that they will not sue the manufacturer before the dealers franchise agreement expires in 2010.

Our free market system, isn't it wonderful.

Enjoy Today!

That Car Guy

Sphere: Related Content

Clark Howard Is Wrong About Automobile Distribution Cost...

I heard Clark Howard on the radio this evening (6/1/09) answering a callers question on his radio show about why Chrysler and GM closed dealerships across this country, as the caller did not understand how this cost the manufacturers any money, since auto dealers are independent businesses.

Clark Howard who I find entertaining in his folksy manner and who I believe normally does a good job of explaining topics, by and large I think he gets things right when he explains financial matters to his audience. However, Mr. Howard got this question wrong, dead wrong as a matter of fact.

Clark Howard explained to the caller and his audience that the cost to the manufacturer was tied directly into the inefficient distribution system that was in place when General Motors had 60 percent market share and that the cost to get the vehicle to the dealers cost the manufacturer money by shipping vehicles to all the dealers who were in place when the company enjoyed such a large market share and by comparison the imports sell more cars per dealer but had fewer dealers.

So it cost the import manufacturers less money to ship those vehicles to there dealer network (I am paraphrasing as I do not have an exact transcript). The system was inefficient to the manufacturer and cost it money with many inefficiencies in the current system so it was necessary to reduce the dealer head count to create efficiencies in the distribution system and hence save money for the manufacturer.

Clark Howard you are wrong on so many points but I will start with just the freight, the dealers pay for the freight and do you know that the freight is the same charge for a dealer that is only 50 miles away from the freight yard as it is for a dealer that is 500 miles away, the manufacturer averages the cost and splits it among the dealer body, in addition the cost is paid at delivery. But GM doesn't pay it's freight vendor for 60 - 90 days and in some cases 120 days, how is that for cash flow, most businesses would die for this kind of cash flow.

But the cost to distribute is not entirely based on shipping cost, there is the cost to order and the cost to service the dealers account (manufacturers representative), most dealers are assigned a sales representative since the dealer is the manufacturers customer. But most dealers don't have a personal representative calling on them everyday, they are assigned a telephone number that in turn has a rep assigned to it. These dealers over 60% of the dealer body do not sell enough vehicles (per GM guidelines) to warrant a weekly or monthly visit from General Motors. In addition computers print out recommend orders to the dealers and the dealer accepts or rejects the order or amends it if he wants more or less vehicles. But just because a dealer wants more vehicles does not mean that they will get it, especially of hot items, such as the new Camaro, those request tend to go to the top selling dealers.

Clark Howard did point out that the sales per dealer at import dealerships were higher than those at domestic dealerships, this point is true, but the insinuation that this cost the manufacturer money, that is not true. This cost the dealers money, since the dealer has less opportunity to sell more vehicles and has more competition within his own dealer body to make money per vehicle. More dealers benefit consumers, because if a consumer can shop multiple GM dealerships within a smaller geographical footprint, they, consumers,save money as most same make dealerships cannibalize profits by underbidding the neighboring GM or Ford or Chrysler store. It is highly naive to think that closing dealerships benefits consumers especially on price, most consumers make a vehicle decision online and then they shop that particular brand and make of vehicle and shop same make dealerships. You do not find a person once they make up there mind on a Chevrolet Silverado, comparing prices on a Ford XLT, because the consumer in most cases has made up there mind that they are purchasing a Chevrolet before they step out and shop prices, so they compare competing Chevrolet dealers.

The issue becomes only based on customer service, which he did not point out, if a dealer is not selling more he is making less money and therefore you could make an argument that his expense to provide a high level of customer service is diminished, but even in that example the cost to the manufacturer is zero, zilch, this cost rest solely on the franchised dealership.

So a computer sends out the request and a computer fulfills the request, less manpower over the years to service a large majority of the manufacturers customers, hmm, sounds like the company has figured out a way to save money in the distribution system, lets examine the cash flow portion of this equation.

Clark Howard should have pointed out that dealers pay the shipping cost and the entire cost of the vehicle owed to the manufacturer at delivery. Wow, how is that for cash flow, I am sure that every industrial manufacturer would love a sweet deal like that, but it gets better. The manufacturer is over paid, up to 102-106% (Invoice, hold back, advertising and other built in incentives and shared cost) of the manufacturers invoice to the dealer, what a great system for the manufacturer, all at the time that the vehicle gets delivered on the dealers doorstep. The dealers bank pays those cost up front, without delay. This reminds me of the airlines, oh but I digress, how do you get your cost paid up front without delay and have this kind of positive cash flow and manage to say that the distribution system is costing you money.

But it gets even better, manufacturers by and large are notorious for paying vendors 60, 90, 120 days late, oh and it gets even better, they sometimes go back and renegotiate the cost of supplies to them after they have accepted goods, services and supplies. Yes the automobile manufacturers after accepting delivery, go back and say, well I agreed that I would pay you 'X' amount, but I can only pay you this lower amount, this is said with a heavy hand by the way, and where else is a supplier to go with door panels for a Chevy Impala, GM is it's only outlet.

But it gets even better, I said that the manufacturer is overpaid by the dealer at delivery, so therefore the manufacturer owes the dealer some money. Those monies are paid through separate accounts that the dealer sees the proceeds on when they sell a vehicle or time passes (such as hold back), but these monies are not paid right away they are still being held until the sell takes place to a consumer in most cases. These funds are paid through a weekly account and monthly account, however funds are still delayed by upwards of weeks to months in some cases.

The dismantling of the dealerships by the manufacturer is designed to provide the remaining dealers better profit opportunity so that they can invest in new facilities and upgrade, not to save the manufacturer any money because it does not cost them any money.

The issue really is, the manufacturer wants a dealer body that can make investments that the manufacturer wants as the manufacturer wants them and they need a highly profitable dealer network that can fund these investments.

Yesterday it was announced that the remaining GM dealers must sign a letter that states "that if GM requests the dealer invest in there facility or programs, that they agree to make those upgrades or they will be terminated", how is that for a thanks for assisting us as we go through bankruptcy welcome letter.

In the end consumers will pay more for vehicles as there is less competition from competing same make name plates, this should have been the story that Mr. Clark Howard should have conveyed to his audience, how does it effect the consumer.

I work tirelessly to provide you the real story behind the story, and provide a forum in which I discuss and comment on topics in which the general public is not fully informed about.

Enjoy Today!

That Car Guy

Sphere: Related Content

The Auto Dealers Are Not The Problem! The Aftermath Of Chrysler and GM closing Dealerships Across America...

The letters landed on dealers desk across America like a ton of bricks, 789 Chrysler dealers and 1100 General Motors dealers out of business, plus another 1000 GM dealers receiving probationary letters, telling them to shape up or they are next.

What has happened to our free enterprise system, the capitalism that brought so much prosperity to this country, this has now become my battle cry. Bankruptcy courts are forcing independent business men and women to loose millions with a stroke of a pen without a hearing or opportunity to plead there case, what has happened to due process. Why aren't auto dealers getting a day in court, like any other creditor, dealers are owed billions in rebates, warranty work, incentives, parts credits, not to mention that all dealers have a valid contract that states that the manufacturer will repurchase all of the dealers remaining inventory if the dealer loses his or her franchise due to termination and other matters.

Earth to our U.S. Government, you terminated the dealers franchise agreements and then a bankruptcy judge terminated all dealer agreements, auto dealers deserve a hearing and no one is listening, they have valid claims in this bankruptcy proceedings as they are owed money just like everyone else standing in line in this meltdown.

However, what concerns me most is our U.S. Government said that they wanted to preserve jobs, yet they single handily in one letter, terminated upwards of over 100,000 (est.) people directly involved in the process of selling and servicing auto dealers on behalf of the manufacturers. These folks were not the problem, they were in essence part of the solution in retailing millions of vehicles over the years. No question that the domestic dealer body had to many dealers in many markets and same make brands cannibalized each others profit opportunity, but the manufacturers created the environment and men, women and families invested heavily in obtaining and financing these businesses. Real people in towns and cities across America are employed by these dealerships, communities rely on the tax base that these stores provide, softball teams and schools and other charitable organizations have come to rely on these enterprises for support over the years.

But what has baffled me the most is who is going to service the people who purchased many of the vehicles that these dealers sold? Although not announced, a service network of some major chain has to fill the void, you can't leave auto owners high and dry if a vehicle breaks down and the nearest dealer is 30 - 50 miles away in some cases, why isn't a comprehensive plan in place to answer the fears that some car owners have, announce the service centers who will provide the ongoing warranty work at the minimum.

An ongoing debate between dealers and domestic auto makers has been going on for years and implementing a plan to reduce dealers certainly cost money, but these dealers have served the manufacturer and there customer base well, most are profitable even if marginally in the current market. Many have sold vehicles exclusively with one make for generations and are stewards in there communities, attrition will take care of the weak and advancing market conditions will take care of the remainder.

Auto makers have many bigger issues to address, getting their own house in order should be at the top of that list, not putting independent businessmen and women and there employees out of business shouldn't be at the top of that list.

Enjoy Today!

That Car Guy

Sphere: Related Content

You Can Catch Me On: Car Concerns Radio Program 3/19/09 9am...

Sphere: Related Content

Auditors Have Raised "Substantial Doubt That General Motors Can Continue To Operate...

BREAKING NEWS! BREAKING NEWS!

The auditors (Deloitte & Touche LLP) for General Motors Corporation has raised 'substantial doubt" that the automaker can continue to operate given the economic and sales climate facing the auto industry. It's reports indicate that it may have to seek bankruptcy protection if it is unable to fully execute a tremendous restructuring of it's debt and finances.

GM communicate the results of the audit to the Securities and Exchange Commission today. The report said "The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern."

This will no doubt be a substantial blow to its stakeholders, dealers and customers and comes in the midst of ever growing government bailouts and request for more money from the U.S. Government. The automaker has already received more than $13.4 Billion dollars in federal money and is asking for another $16.6 Billion to keep its doors open.

I have voiced strong opinion that GM as a going concern will have to sell off divisions and completely reinvent itself, Change its focus and culture, similar to what GE did a couple of decades ago. The company will be forced, against much opposition to produce and manufacture its vehicles in other parts of the world, Mexico, India, China and other areas to be shipped back for sale. The cost of labor in those markets are substantially lower and the company made huge economic mistakes beginning with exporting manufacturing to Mexico and Canada but under increase pressure for price concessions in manufacturing and an already eroded base of customers it is forced too.

The economic model that GM enjoyed throughout the history of the company was substantially diminished when the company did not examine the true economic impact of displacing whole communities and families who were building, supplying and purchasing there products.

The simple math that was examined was that they would save X amount of dollars with reduced labor cost, simple savings. However the Micro and Macro Economic impact was far more substantial, with entire communities dependent and loyal to the brands, those loyal, beholden legions of buyers were left to make new choices and develop new loyalties and in most cases those folks became bitter and punished GM with there purchasing decisions.

As market share eroded and quality issues became the focus, the brands started losing luster and customers. This will be the greatest lesson in modern business history on how a brand could be destroyed internally with bad decisions. But, it does have a chance to remake itself, just not in it's current incarnation, it will have to be a trimmed down version of itself that will have a chance to improve and grow from its past.

Enjoy Today!

That Car Guy

Sphere: Related Content

What's Project Better Place? A Video Explaining Project Better Place...

Find more videos like this on Planet Better Place

I am interested in hearing from my readers on how they feel about this endeavour.
Let me know your thoughts and opinions and any other feedback about Project Better Place.

Enjoy Today!

That Car Guy

Sphere: Related Content

Have We Found A Better Place?

Project Better Place has been hard at work developing a variant on the Electric Vehicle Vehicle debate. Project Better Place, founder and Chief Executive Shai Agassi, indicates that the company is set to launch it's swappable-battery electric car program in 2010.

Project Better Place has designed a radically different "infrastructure" for purchasing and driving there vehicles, a system in which the company would install charging and battery swap stations. At the swapping stations drivers would be able to put in fully rechargeable lithium ion batteries in the same amount of time that it would take to fill up a gasoline powered vehicle.

But that's not all folks, Project Better Place business model revolutionizes the concept of purchasing a vehicle from Project Better Place, with Project Better Place you pay much like you do when utilizing a cell phone. From the Better Place Website: "Think of it like this: we pay mobile providers for minute-by-minute access to cell towers connected together in cellular networks. Truth is, we pay comparatively little - or next to nothing - for the phones themselves. After all, what you're really buying is air time, not a box with buttons. The same model works for transportation. Just replace the phone with an electric car, replace the cell towers with battery recharge stations, and replace the cellular networks with an electric grid. Now you're buying miles, not minutes."

The drivers of there vehicles would be paying for access to a network of charging spots and conveniently located battery exchange stations powered by renewable energy. Drivers would pay for the miles that they drive and would be made to be more affordable, even free in some markets, this would be accomplished by financial and environmental incentives to add drivers into the network. Project Better Place would operate the electric recharge grid that brings everything together.

The project is getting major backing from the Israeli government and has a alliance with Renault-Nissan that is developing the vehicle and the battery system and will invest $500 Million to $1 Billion dollars in the project over the next couple of years. The initiative has also raised another $200 Million in venture backing and has begun work on recharging networks in Israeli and Denmark. In addition Australia, Canada, California and Hawaii have committed to developing the infrastructure necessary to have the network available for consumers in those area's (Note to Better Place, on your website you indicate that California and Hawaii are countries, they are not, merely states within the USA).

I find that the effort is revolutionary, it will be interesting to follow the progress of this noble effort, some in the business and auto community are not giving the project much hope, however I am going to step back and examine the business model. If the company can sustain itself and find enough customers it may get some legs provided that the cost to operate does not shut out large numbers of consumers. I have not been able to find information to make an appropriate judgement until I can review those reports I will reserve judgement on it's success or failure.

I will say this, you will certainly have a lot of people thinking particularly if you can lower or meet the needs and demands of hungry consumers to go green and sustain a business model that does not require large chunks of up front money to spend on automobiles. I have a lot of questions that I want answered and I will report back when fully researched.

Enjoy Today!

That Car Guy

Sphere: Related Content

MELTDOWN IN MOTOR CITY...

I invite everyone to tune in this Friday 3/6/09 at 2pm on National Radio Program WAMS as I discuss The Meltdown in Motor City: It May Be Too Late To Turn Detroit Around.

When: Friday 3/6/09 2pm

Where: Tune into WAMS Radio on www.blogtalkradio.com

Direct link: http://www.blogtalkradio.com/WAMS/2009/03/06/The-US-auto-meltdown-and-what-happens-next-this-Friday-on-WAMS

What: You can join in on the discussion and participate with questions by using the link provided or calling in at (718) 506-1944.

Enjoy Today!

That Car Guy

Sphere: Related Content

Auto Dealerships Need Floorplan Assistance And Access To Credit If they Are Expected To Survive...

The retail auto industry is in the worst financial crisis in its history and the future doesn't look very promising for most auto dealers. In the early 1900's, auto dealers came to the rescue of the auto manufacturers with loans and the ability to purchase more inventory to meet the needs of the fledgling auto industry. That was when local banks and other financial sources could step and assist because of the character and contributions that the local businessman contributed, loans were based on character and importance to the community. The days have changed and have they, auto dealers are in the fight of there life to find adequate sources to fund the purchase of vehicles needed for there businesses.

Dealers have been besieged with letters changing terms of there floor plan agreements and as NADA (National Auto Dealer Association) is putting it, there is a massive pullback from captive lenders, regional banks and others who specialize in lending to auto dealers. The pullback is not subjective as dealers with excellent repayment histories and have great collateral are seeing these lenders making demands that may not be met by the auto dealers.

NADA has taken the case to the Federal Government to intervene on the dealers behalf as it sees a potential for massive closing on the near horizon. They are requesting the government provide a commitment of $1 trillion dollars to increase the issuance and sale of securitized loans for buyers and dealer inventory to stem the tide of dealership closings because of the credit crisis.

The issue stands out because if not the potential for thousands of jobs lost of dealership employees, suppliers and other associated businesses could result in a deepening recession.

With banks continuing to receive aid and it not being circulated through loans and other instruments is confounding, what is the purpose of the banks receiving aid if they will not lend to businesses and individuals. At some point the public has to cry out and tell the government to stop as it really is a waste of taxpayers dollars since they are the ones footing the bill and these funds are not benefiting them or the economy. We are only preserving jobs for the bank executives and other bank employees with these funds and if it is meant to stimulate the economy then lets get the money circulating instead of providing the banks more funds so they can purchase other banks, that truly is a waste of taxpayer money.

The outlook for many dealers remains weak as the lenders are making it very difficult to operate with tight credit restrictions coupled with the already difficult retail marketplace.

Enjoy Today!

That Car Guy

Sphere: Related Content

Sirius Satellite Radio Receives A $530 Million Dollar Loan Bailout from Liberty Media...

A page was taken right out of how free market capitol economies work and was put on full display yesterday when Liberty Media loaned Sirius/XM Satellite Radio $530 Million Dollars. Mel Karmazin working the phones between The Dish Network and Liberty Media to assist in resolving the Satellite Radio company from defaulting on a $175 Million Dollar loan that was due yesterday was dealt some breathing room.

Liberty Media will receive a 40% equity stake in Sirius/XM Radio, which will make it the largest shareholder and receive up to at least three board seats. The money should allow Sirius enough capitol to pay off additional bonds due in May 2009 of $350 Million Dollars. The cash infusion sent Sirius stock up $0.06 cents to $0.16 cents from $0.10 cents, the company still has a long road to impress Wall Street and investors that it is on a path to profitability. The company has never been profitable although it does boast 20 Million subscribers and over $2 Billion Dollars in revenue. It is saddled by huge debt that it is trying to service including another $400 Million Dollars due in December 2009.

The $530 Million Dollar loan comes with a hefty interest rate of 15%, and is being paid in two stages as conditions for the second stage of the loan has certain restrictions that would allow Liberty to back out of the deal. Liberty infused $250 Million Dollars now and the second stage will become due provided that the company doesn't financially collapse in the near term before it is due.

Sirius has some serious restructuring to do to meet its obligations, including overall financial responsibility and looking at its programing and capitalizing on its real opportunity of giving consumers real choices with emerging technologies that would allow the operator to be on the forefront of radio programming as it can do what terrestrial radio cannot because of the capabilities of satellite and its subscriber base.

Enjoy Today!

That Car Guy

Sphere: Related Content

General Motors And Chrysler Are Back To Begging For More Money...

BREAKING NEWS! BREAKING NEWS!

The Big 3 Automakers were back begging for more bailout money from the U.S. Government and filing restructuring plans to support there efforts. Ford it should be noted has not requested any funds to survive, although it says it would need funds if GM or Chrysler should fail.

General Motors has requested $16.6 Billion dollars and Chrysler has submitted a plan calling for $5 Billion dollars and indicate that thousands more jobs will be lost there hands are out.

Chrysler projects the U.S. auto market will sell only 10.1 million vehicles the lowest output in 40 years, which is less than the 11.1 million units that it predicted when they received there first loan from the Treasury. This lower forecast is in line with the reason why they have increased the amount of additional funds that they indicated is need to keep the automaker afloat.

Chrysler also announced that it will eliminate the Chrysler Aspen, Dodge Durango and PT Cruiser models from its line up. In addition it announced that the company will comply with the Federal Governments guidelines in reducing executive compensation and stated that it had eliminated company matching employee 401(k) plans and many other cost cuts.

Chrysler further made proposals to sell over $300 million dollars in "non earning assets" in 2009 and states that it will begin paying back the loan beginning in 2012. The proposal was contained in 199 pages that it submitted to the Treasury and included what the company would due should it face bankruptcy.

General Motors, Ford and Chrysler as indicated by the release of a statement from the UAW union has reached tentative agreements on making changes to the 2007 labor contracts. The UAW also stated that ongoing talks are still going regarding funding retiree health care obligations that the union has agreed that it would take over next year.

General Motors is in desperate need of $16.6 Billion dollars and may need upwards of $30 Billion dollars in government loans as it submitted its restructuring plans to the Treasury Today (2/17/09). The plan includes eliminating 47,000 jobs and closing 5 more U.S. factories. The company is also planning on eliminating or selling its Saturn, Hummer and Saab brands.

Commentary: I see a future in which the U.S. will not be manufacturing any or very very few so-called American brands here in the states, the cost to manufacture vehicles with labor cost and other monetary factors make the cost to high and you can't build a business case to support it, when the U.S. is competing with other countries who's labor cost are considerably less than the U.S.. Any business model that makes since has many factors to consider and importing these vehicles from countries that have lower labor cost and are emerging as industrial centers will become standard within the next 6-10 years.

I will report on the GM plan as I research the plan more thoroughly.

Enjoy Today!

That Car Guy

Sphere: Related Content

Fiat takes a 35% stake in ailing automaker Chrysler... Is this enough?

BREAKING NEWS! BREAKING NEWS!

Chrysler Corporation and Italy's Fiat Automobiles SpA announced today that Fiat will take a 35% stake in the ailing Chrysler Corporation. The deal in which no money will exchange signifies a dramatic move by Chrysler/Cerberus to align its business model for the world stage. Chrysler has been struggling to find profitable small vehicle platforms and has no real presence in the global marketplace.

Chrysler hopes to gain access to gain access to Fiat's small vehicle platforms for the U.S. market and create opportunities to market in other foreign markets in which it has no distribution. Fiat, although strapped for cash has it's eye's on the U.S market to reintroduce itself to anxious Americans starving for more fuel efficient vehicles. Fiat riding the success of recently introduce vehicles has found itself swept up in recent months with declining sales like most auto manufacturers.

Daimler Benz still holds a 19% stake in Chrysler and will continue to hold that position as the proposed deal works its way through the appropriate Commerce Department channels.

This report will be updated as more information comes forward.

Enjoy Today!

That Car Guy

Sphere: Related Content

Introducing Barack Obama our Nations 44th President... Making History!

BREAKING NEWS! BREAKING NEWS! BREAKING NEWS!

The United States is Inaugurating Barack Obama as our nations 44th President January 20, 2009.

This historical moment could not have taken place without enormous sacrifices of men, women and children that has made this country so great. The promise of this country and the hope of a nation moves forward with a great leap today, may we all be inspired to do more for this great nation and to make lasting contributions to our society.

Enjoy Today!

That Car Guy

Sphere: Related Content

Celebrating Dr. Martin Luther King, Jr. Birthday on the Eve of President Elect Barack Obama Inauguration...

"All this is simply to say that all life is interrelated. We are caught in an inescapable network of mutuality; tied in a single garment of destiny. Whatever affects one directly, affects all indirectly. As long as there is poverty in this world, no man can be totally rich even if he has a billion dollars. As long as diseases are rampant and millions of people cannot expect to live more than twenty or thirty years, no man can be totally healthy, even if he just got a clean bill of health from the finest clinic in America. Strangely enough, I can never be what I ought to be until you are what you ought to be. You can never be what you ought to be until I am what I ought to be. This is the way the world is made." ~Martin Luther King, Jr.

Enjoy Today!

That Car Guy

Sphere: Related Content

An Open Letter to Mel Karmazin...

AN OPEN LETTER TO MEL KARMAZIN

1/19/09

Re: The State of Satellite Radio

Dear Mr. Karmazin (and Mr. Scott Greenstein if your viewing this letter),

I write to you because I have watched with great fanfare both as a supporter of your platform and as a former investor (Sirius) and I am quite dismayed at the lost opportunity that your company has missed.

I have sat back and watched programming mistakes and launching of product mistake time after time and have sat back passively as it just seems no one at the top seems to understand what it takes to turn sideline listeners into engaged listeners and supporters of the platform.

With new competition coming along (Apple Iphone, Pandora, CBS Last.FM, AOL Music, Sansa and others) I am watching with amazement how the opportunity with the merger of Sirius and XM should be a slam dunk. But somebody is asleep at the wheel, in doing some basic research to get my facts straight, XM’s webpage still list outdated information on the fast facts link and other areas, I mean come on Mel, can I call you Mel. The technology application’s that you and the staff at Sirius XM must have must be staggering compared to the HP computer that I am pecking away on. Can somebody anybody change the webpages to update anything about the new and improved Sirius XM merger and just general information. But the engaged public is still subjected to last year’s web info, this is just sad Mel, did you say it was ok to call you Mel?

Now I am no radio industry executive or veteran, I am just a guy in the automotive industry that has sold the virtues of satellite radio for a few years now that gets feedback from customers. Mel have you listened to your customers recently, I mean have you talked to them personally, not your buddies you go to lunch with, I am talking about the ladies and gentlemen who drive Chevrolets and Fords to work and the young professionals and college students I would throw in some High School kids to round out who you should be targeting next since these folks set trends. I recommend you do it for a number of reasons of which I will state. These people are quite different from your generation and mine for that reason, however engaging them in some real dialogue about what they are interested in may provide you and your staff some insight into what they are looking for and trust me you have the ability to make it happen. You have at your disposal probably one of the greatest products ever invented yet it will get fretted away as a wasted exercise in modern media history if you and your staff do not do something and fast.

You see a lot of people don’t think that Satellite Radio is where they need to tune in to get there music or information and your companies don’t seem to understand that. Sure, it is a repository of Music, News, Weather, Comedy, Sports and any other channel that you have thrown together but it is not THE PLACE where folks want or must tune in too to get this vast array of programming. We know that it is a great place to tune in to catch the Basketball game and to hear some comedy or touch base with Martha Stewart and so on. And I no you are probably saying you can’t be all things to all people, but let me let you in on something that is not really a secret, people want fresh they want current they want exciting they want LOCAL.

Did I just say local, one of the loudest complaints that I hear is that your customers feel tuned out of the local happenings in there respective communities, which is why local radio is still a vital part of the media landscape. Here is a suggestion, why not create local channels or how about relevant programming that people feel engaged wherever they may live, why because your programming feels like it comes out of a New York Studio. Oh it does come out of a New York Studio, do you realize there is a large segment of the population that doesn’t really care about New York and Mel you have to reach these folks the folks that are driving mostly Chevrolet’s and Ford’s the folks by and large who are your largest audience for your product since most of the units that you sell are in these vehicles. Did someone think about that? Did someone step back and say how can we scale this thing so that we do not leave a huge chunk of Americana out, I really don’t think someone living in the Midwest or down south wants to feel like they are living on the outside of Gotham City.

Speaking of programming whose idea was it to put a Bubba the Love Sponge on after his show has already aired (Cox Radio Stations)), I mean come on. Get a personality that can provide fresh content daily, where people who are paying a premium to have your service feel that they are getting there monies worth, herein lies the problem, Sirius XM does not feel special, it doesn’t feel like it is the must have media in someone’s media arsenal and this is where Sirius XM will meet the Grim Reaper.

Make Sirius XM relevant, make it, must have, make it special, you have the capability, you have the greatest tool invented, I mean its Satellite for goodness sake, you guys can do just about anything you want. If you need a special application, invent it, if you need to regionalize the programming regionalize it, but do something and do it quick.

Have you looked at your programming, I did and it is not good, a whole lot of duplication, but where there is dysfunction and duplication there is hope and I have confidence that you can get it done.

I recognize that you have probably been distracted with the looming $1Billion Dollars that you have due on some debt coming up, but put your boys and girls on it and fast, revamp, revise and get into the 21st Century get in tuned with what folks want from Satellite radio and make it relevant otherwise you will be a distant memory of what could have been, real fast. And get Gary Parsons name off of your website, that is a shame that a large media company like yours doesn’t have someone scouring the pages and freshening up things, there is a word, freshen up Sirius XM!

That is the new mantra, lets make Sirius XM funky fresh.

Enjoy Today!

That Car Guy

Sphere: Related Content

A Flying Car... The Terrafugia Transition has announced that they plan a test flight soon...

The challenge of aviation enthusiast and inventors alike have challenged themselves to be the first to market and sell a true flying car. From the early Moller Flying Car designs to LaBiche Aerospace (http://www.labicheaerospace.com/) these individuals and companies have been reaching for the brass ring of success, and that means getting the car to fly.

Terrafugia, based in Woburn, Massachusetts (USA) (http://www.terrafugia.com/) feels it has the right model, the right design and best of all it will actually fly. The Terrafugia Transition is set to be in showrooms in about 18 months based on a current report by Fox News. Carl Dietrich, who runs Terrafugia said: "This is the first really integrated design where the wings fold up automatically and all the parts are in one vehicle."

The Transition developed in part by NASA engineers is making claims that the Aircraft/Car will be able to fly up to 500 miles on a single tank of gas at a cruising speed of 115mph on a 100bhp engine that propels the vehicle on the ground as well as in the air.

The vehicle has not made a maiden voyage to the sky, but the company claims that it has been tested on the road with speeds reaching 90mph.

I have provided a sample video of a wing deployment exhibition at the annual Oshkosh Airshow in Wisconsin for your viewing pleasure.

Enjoy Today!

That Car Guy

Sphere: Related Content

I think this would be a blast!... Airboard Personal Hovercraft...

This looks like it would be a blast to ride and drive. The Airboard Personal Hovercraft built in Liverpool, England has a top speed of 20mph and no brakes, you shift your weight around to steer and stop, more thrills and spills. It boast a 5 liter engine that will allow an hour of ride time.

You can find more info at www.airboardeurope.com, check it out for yourself.

Maybe this won't solve the fuel crisis but at least we can still have some fun!

Enjoy Today!

That Car Guy

Sphere: Related Content