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Toyota Frees Itself from UAW, Union Has a Fit

NUMMI_plant It’s almost like a battle between good and evil, and Toyota has just blown up the union’s Death Star.

With Toyota’s decision to close its California plant, known as New United Motor Manufacturing Inc. (NUMMI), comes an added bonus: The company no longer has to deal with the UAW.

Toyota plans to close the plant, which has built Corollas and Tacomas, in March. That’s a major setback to the UAW, which desperately wants to spread its empire and organize labor at other Asian automakers.

If I were an exec at Toyota, I would’ve been singing songs of praise as the joint venture with GM came to a close and the opportunity to sever union labor by closing the plant presented itself.

NUMMI, created 25 years ago, was an attempt for GM and Toyota to work together and learn from each other. Toyota’s lean manufacturing process was of interest to GM, while an American plant for Toyota helped boost its presence here. A win-win all around, right?

Toyota gets away from the union

Sort of. According to a Detroit Free Press article, most of what GM learned ended up in the Saturn division… an ironic outcome, considering Saturn’s fate. Toyota had to pay union rates at the plant, which are usually higher than what it pays employees at other plants.

That same article says Toyota is admitting that it has expanded too quickly and needs to reduce the capacity of vehicles it is able to produce by 700,000 each year. In addition to severing union ties, closing NUMMI also accounts for over half of those reductions and will help the company remain as lean as possible.

Yes, the closing sucks for the employees, maddens union reps, and hurts the fragile California economy. But as a business decision, closing NUMMI is the best move Toyota could’ve made.

Let’s hope the UAW stays away from foreign automakers and continues to loosen its stranglehold on the domestics. Agreed?

-tgriffith

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Cash for Clunkers Will End Monday

Only for one more weekend!

Regardless of how it will be remembered, the already infamous Cash For Clunkers plan will end on Monday.

The program was launched with $1 billion in funding, which was blown through in the first week of the program, creating a tense on-again off-again couple of days. Congress then refilled it with $2 billion more, which is expected to be gone by Labor Day.

While the program sent hundreds of thousands of people flocking to dealerships with their trade-ins ready and their wallets open, dealers are complaining that they’re not getting reimbursed quickly enough. Even the National Auto Dealers Association (NADA) spoke up and asked for a resolution to the program. (You know things aren’t working when the NADA asks to end a program that’s sending people to dealers!)

Cash for Clunkers is largely responsible for increasing production at Ford, GM, and Chrysler, but what happens now that the program is ending will be interesting. I’m watching for a drastic drop in demand, resulting in more overstock at dealers and then production slowdowns at manufacturers’ plants. Again.

If you’re at all considering taking the government up on its $4,500 offer on your car, this is your weekend to act.

Did you, or will you, take advantage of Cash for Clunkers before it’s history?

-tgriffith

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Does the Vice Chairman of GM Even Care About the Volt?

Chevy Volt: Just a symbol or hope for real change?

A June 7 article in the Washington Post makes a pretty bold statement, arguing that GM exec Bob Lutz is “ambivalent” about the Chevy Volt, a car that many have pinned their hopes on to bring GM out of bankruptcy and move the company forward environmentally and fiscally.

The story goes on to claim that Lutz is a lover of gas-guzzling V8 engines and says that the 2010 Camaro is a tribute to him and his enduring hope that the glory days of fast and powerful muscle cars can be resurrected, even though GM is a ward of the government and needs to emerge from bankruptcy as a leaner, greener company.

Yup, pretty bold claims by the Post. I’ve decided there are two reasons they published the story:

1. Because it’s true.

2. To get auto bloggers the world over discussing the story and linking back to their Web site. (Guilty.)

Even in bankruptcy GM doesn’t seem to be admitting to their problems and resolving them. They either look the other way or place blame in other places when they should be accepting at least some fault for their fate. Cars like the Camaro are proof of that, and cars like the Volt are nothing more than a symbol GM hopes will eventually change its image.

In fairness to Lutz, he has denied the Post’s claims and called the Volt

The most exciting program I have worked on in my entire career.

I don’t believe it for a second. There’s no way he’s more excited about the Volt project than the development of an all-new Corvette. That’s just not GM’s way, and until guys like Lutz have exited the building, nothing will change.

Do you think Bob Lutz cares more about the Volt or the Camaro? Which are you more excited about?

-tgriffith

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Politics as Usual: Dealers Protest Closings

It’s common knowledge that for the auto companies to survive, some dealers have to go. That’s fine, unless you’re one of the dealers. Thus the long faces above. At hearings yesterday before Sen. Jay Rockefeller’s (D-W.Va.) Committee on Commerce, Science, and Transportation, dealers found a lot of sympathy. More than three dozen House and Senate members have already asked the Obama administration to help them.

Chrysler gave its dealers very short notice and plans to close nearly 800 of them next week. By the end of next year, GM wants to cut its number of dealers from 6,000 to 3,500; it told 1,000 of them that, if they agree by June 12, they could get life support until October 2010. The companies are playing hardball because time is of the essence if they are to achieve reorganization.

Senators of both parties were very sympathetic to the dealers. They are, after all, prime constituents, and there was much talk of Little League support, consequences to communities, and apple-pie fairness.

Peter Lopez, who owns Chrysler and G.M. dealerships in Spencer, W.Va., and Russell A. Whatley III, who has a Chrysler dealership in Mineral Wells, Tex., said they had paid the auto companies for vehicles and parts, as well as other fixed costs, like the right to hang the manufacturer’s sign.
Both men also bought additional inventory from Chrysler this year after Mr. Press [Chrysler president] told Chrysler dealers it would help the company remain viable. They were told months later that their franchises would be closed.

Sen. Carl Levin (D-Mi.) announced that Congress would not stand idly by: “We’re going to do what every other representative and member of the Senate will do from these states and districts,” Levin told reporters June 1. “There’ll be plenty of jawboning, persuasion.”

I’ll bet that means more input and interference from Congress than from the Obama administration in the operations of GM and Chrysler. Levin also suggested that more money might be forthcoming to ease dealer and community pain.

Well, should Congress just butt out, or do they have oversight in this situation? Leave us a comment.

—jgoods

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Did your car brand win one of these prestigious awards?

BMW: Prestigious or cool?

You can finally rest easy, because Kelley Blue Book has released its 2009 Brand Image Awards.

If you’re like me, you lie awake at night wondering what image your car projects to your family, friends, and co-workers.

You ask yourself questions such as, “Am I driving the most rugged truck?” “Is my car the coolest one on the block?” And, “I sure hope my car shows my friends that I appreciate a good value. But what if it doesn’t?”

If you drive a Toyota, you can relax knowing that everyone you know has labeled you as a value hunter who loves your family. In addition to taking home KBB’s Best Value Brand award, Toyota also snagged Most Family Friendly Brand.

Any Dodge or Chevy truck owners out there? I’m sorry to tell you that you don’t have the truck perceived as the most rugged. You might as well be driving a Tonka if you don’t have a Ford parked in your driveway. Of the 12,000 people surveyed for this study, Ford is perceived as the Most Rugged Truck Brand.

Award-winning Cadillac interior

For those of you hoping you can have the Coolest Brand, the Best Performance Brand, and Best Luxury Exterior Brand all in one, you’re in luck if you own a BMW! If you own a Cadillac, you’ll have to settle for knowing people perceive your ride as the brand with the Best Interior Design. If that’s a little too low on the testosterone scale for you, this won’t help: Cadillac is also perceived as the Most Comfortable Brand. So if you’re planning a long road trip and want a comfy ride with a pleasing color palate, you might want to hang on to that CTS.

Mercedes owners can revel in the fact that their cars are perceived as the Best Prestige Brand. Apparently you should never confuse “prestige” with “cool,” but I’m pretty sure only the good folks over at KBB know exactly what the difference is.

One award category remains: Best Exterior Design Brand-Non Luxury. Mazda drivers: I’m sorry to say you don’t drive a car perceived as having the best exterior design. Neither do you Saturn drivers. Or you, Chevy owners. If you drive a Nissan, though, congratulations on being the envy of the neighborhood!

What do you think of Kelley Blue Book’s 2009 Brand Image Awards?

-tgriffith

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Build your own Camaro!

build-your-own-camaro

With all the hype about all-new muscle cars, I was excited to find an official “build your own” Camaro site this morning.

I think we can all breathe a sigh of relief as Chevy finally begins the process of getting Camaros into the hands of their waiting public! We even have some readers who have ordered their own Camaro, so they should be especially excited because this means delivery can’t be far away.

Chevy expects about 65% of Camaro sales to be of the V6 variety. With more horsepower than many past V8s, a highway EPA rating of 29 mpg and a price starting under $23K, that will probably be true.

Still, when I configured mine I ended up with a $34,000 black SS with 426 horsepower and a 245-watt stereo system. I couldn’t help myself.

Build one for yourself here, and let us know what you ended up with! If you’ve already ordered one, how did you configure it?

-tgriffith

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The great (and not-so-great) cars of America

Now that the deadline has arrived for GM and Chrysler to prove their viability to the government, I’m torn on what I think should, or will, happen.

While I think it’s callous and downright unpatriotic to WANT either of these companies to fail, I have to stay realistic and look at the situation as objectively as possible.

That’s why I recently looked in-depth at the cars GM and Chrysler are currently offering. I wanted to find reasons why they should continue making cars; to find excitement about their products. While some cars are great arguments for the quality of both companies, others are great reasons for the companies to fade into history.

The cars that dissapoint:

cobalt1

It’s a rattle-trap with a dead spot in the steering a mile wide.
Instead, get a: MAZDA3

patriot1

Lego cars are built with less plastic.
Instead, get a: Nissan Rogue

aveo1

It’s cheap and not in the good way.
Instead, get a: Honda Fit

colorado1

It looks cool. On the outside.
Instead, get a: Suzuki Equator

sebring1

It’s the brown paper bag of American cars.
Instead, get a: Chevy Malibu

avenger1

It’s ironic when outdated cars have macho names.
Instead, get a: Ford Fusion

Now, here’s what America does right:

corvette1

Many people would take one over a Ferrari. Go Chevy!

camaro1

No one does cool like the United States does cool.

acadia1

A great American competitor to the Honda Pilot.

2009 Chevrolet Silverado LTZ Extended Cab

American trucks kick butt. Period.

cherokee1

challenger1

American muscle still captivates us.

viper1

It’s about as close to exotic as America gets. Sit behind and you’ll know why it made this list.

While it’s not any big surprise, the cars America currently does best are one of two things: big or fast. When it comes to economical or practical, which is where the demand is now, American automakers falter like a Britney Spears comeback.

Now GM is considering bankruptcy as an option to create a new company. That’s a great idea, as doing so would enable them to start over, eliminate the products that hold them back, and start producing the cars we all know they’re capable of making.

What are some of the best and worst American cars you’ve owned?

-tgriffith

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2009 Chicago Auto Show Preview

Did you miss out on seeing some of the cars that made a splash at the North American International Auto Show in Detroit? You’ll have a second chance, as some will make an appearance at the Chicago Auto Show, which opens to the public on February 13.

Most of the buzz created in Detroit was caused by electric concepts like the Cadillac Converj, Dodge Circuit EV, Chrysler 200C EV and Jeep Patriot EV. These will all be available for your viewing pleasure in Chicago, though hotties Fisker and Tesla are skipping out on the Windy City.

Plus, if you want to oogle a Maserati or drool on a Bentley, Chicago is where you need to be.

For the slightly more practical-minded though, Chicago will also see some exciting debuts, including the:

2009 VOLKSWAGEN TOUAREG V6 TDI

vw-touareg-v6-tdi

This premium midsize SUV is powered by a 3.0-liter, turbocharged six-cylinder engine that produces 225 horses. With a fuel tank capacity of 26.4 gallons, expect a driving range of more than 600 miles per tank, all while emitting fewer emissions.

2010 LEXUS HS 250h

lexus-250h

Some will say this is a Prius with a spit shine. Lexus, though, says it’s the world’s first dedicated luxury hybrid vehicle, and the fourth hybrid and the most fuel-efficient vehicle in Lexus’ lineup.

kia-soul

The original Soul prototype was displayed at the 2006 Chicago Auto Show, and the front-wheel-drive 2010 Soul remains true to the five-passenger concept design.

hyundai-genesis-coupe1

This is a rear-wheel-drive sport coupe offered in three trim levels: the affordable GS; the premium-sport GT, featuring the 306-horsepower, DOHC 3.8-liter V6; and the high-performance SE, available with either the 212-horsepower, 2.0-liter turbocharged four-cylinder engine or the 3.8-liter V6 engine. Both engines are mated to a standard six-speed manual transmission. The Genesis Coupe is scheduled to join the Hyundai lineup in the spring of ‘09.

CHEVROLET ORLANDO CONCEPT

chevy-orlando-concept

Chevy says the Orlando is a compact, seven-seat multi-purpose vehicle with the versatile attributes of a sport-utility, a family van, and a wagon. At first glance, I’m hoping it’s not a rebirth of the Pontiac Aztek.

2009 SPYKER C8 LAVIOLETTE

spyker-c8-laviolette

Making its Chicago Auto Show debut is the exotic Spyker C8 Laviolette, an advanced mid-engine two-seater with an aluminum Audi V8 producing 400 horsepower.

If you were going to the Chicago Auto Show, which automakers would you be sure to check out? Do you go to auto shows to shop or to dream?

-tgriffith

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Did GM betray Americans?

Betrayal or just bad business?

GM today has officially brought their plea for billions of dollars to the public.

With a full-page print ad, the company admits to disappointing customers, letting quality fall below industry standards and creating lackluster designs. They also acknowledge having too many brands, too many dealers and building too many trucks and SUVs.

This is all true, and I’m thrilled to see GM own up to their problems. Of course, the motivation for doing so is a possible injection of billions of dollars of taxpayer’s money, so it’s a wise move to make sure those taxpayers feel some sign of corporate humility.

While there’s no doubt that GM has been poorly managed, made poor business decisions and produced historically sub-par vehicles, the ad also apologizes for at times betraying the American people.

I don’t think they have betrayed us, and I’ll put my neck out there to stand up to that.

While I still believe a bankruptcy filing would be a better consequence of their business decisions than a near-certain government bailout, I don’t think GM has done anything that has betrayed the people of America. They were greedy, cocky and arrogant, but it’s only now that they are being called out on it.

For years, Americans have bought right into their business practices and supported them. So it’s not a GM betrayal of Americans, it’s a failure of Americans to notice or care that we were being taken advantage of. In that sense, we are somewhat at fault for helping GM arrive at this point of financial collapse.

Maybe it’s us who has betrayed them by not forcing automakers to restructure years ago. We bought everything they threw at us, so it’s no wonder quality went in the tank and SUVs kept getting bigger.

While they should’ve had the foresight to know that couldn’t last forever, we should’ve taken a stand against their products and practices years ago.

And now here we are on the verge of a very different auto industry than the U.S. has ever seen. And you know what? I’m excited about the changes and the potential for cars of the future.

Do you think GM betrayed the American people? Leave your comments below!

-tgriffith

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All 3 major U.S. automakers are on the brink of financial disaster with ...

Hyundai could help save American jobs

We’re living in a global economy.

While the U.S. auto industry supplies millions of people with jobs, the truth is that industry is collapsing. All 3 major U.S. automakers are on the brink of financial disaster with their only hope being a federal bailout.

But for Chrysler, there’s hope from Hyundai.

With talks of the grand GM/Chrysler merger now out the window, Hyundai, that little carmaker from South Korea, is poised to sweep in and buy out Chrysler. Or at least part of it.

Just a couple of years ago the idea of Hyundai taking over Chrysler would have been laughable. Now though, it just might make sense.

Had GM succeeded in their bid to takeover Chrysler, it might have worked to keep the company name around but I doubt it would have saved any jobs. A GM that consists of Chevy, Pontiac, Cadillac, GMC, Saab, Buick, Hummer and Saturn can’t even hold on, so adding Chrysler, Dodge and Jeep would only add redundancy and ultimately lead to massive layoffs. Just like a bankruptcy would.

The Hyundai scenario is a little different, because of the redundancy issue. It’s highly unlikely that the Chrysler of today will remain intact because there are pieces of it that will appeal to other automakers. If Hyundai doesn’t absorb all of Chrysler, it could buy Jeep. Nissan has mentioned buying Dodge.

Under a scenario like this, jobs could stay in America though they’d be managed from an office in Asia. And the Chrysler as we know it would be gone.

Cerberus Financial, the current owner of Chrysler, has said they are not interested in selling pieces of the company. But if they are at all interested in saving American jobs, I think they’ll have to.

I ask you: Are you more concerned with saving Chrysler, or with saving American jobs?

-tgriffith

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Yes, ‘near-luxury’ and hatchback were used in the same sentence!

The Volvo C30: Coming to America

There are two kinds of cars America has loved in the last two decades: SUVs and cars with trunks.

Hatchbacks were just funky little novelties that Europeans loved.

Man, things can change quickly!

Look at all the hatchbacks popping up in America over the last couple model years. Honda Fit, Toyota Yaris, Suzuki SX4, Mini Cooper, Audi A3, VW GTI, Scion xD.

And check this out: according to a study by CNW Marketing Research, just over 20 percent of near-luxury buyers said they preferred a hatchback to a sedan or wagon. Yes, ‘near-luxury’ and hatchback were used in the same sentence!

As the market share of compact cars increases, the popularity of hatchbacks will also increase.

It’s been since the oil crisis of the 70s that hatchbacks have enjoyed this kind of popularity. Now that we’re in another oil crisis, the benefits of the versatile hatch are again being recognized. Only this time they are more luxurious, safer and much better built.

Europe on the other hand never escaped a gas crisis. When we were enjoying $1.30 gas, Europe was choking it down at $5 or more. It makes sense that the popularity of the hatch never waned on that side of the Atlantic.

The hatchback in America has been nothing more than a symbol of frugality in a time when we’ve been all about extravagance. Simply put.

Now reality is catching up to us, and it’s coming in the form of the hatchback.

Watch your dealerships friends, because new hatches are arriving from Europe in the form of the Ford Feista, Volvo C30 and more. Hopefully we’ll even get our chances at the Mercedes A Class and Honda Civic Type R.

There are even some exciting hatchbacks making their debut at the Paris Auto Show this week in the form of the Toyota Urban Cruiser, BMW X1 and Mini Crossover concept.

Americans: Are you on board with the coming invasion of the European hatchback?

Europeans: Do you love hatchbacks as much as Americans think you do?

-tgriffith

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