And the answer to the big question above?  Chrysler.

Ouch.

See, this is doubly unnerving after discovering that, yesterday, they were still trying to get a cohesive corporate strategy together and won’t actually have one until sometime later today.  Or at least not one they want to tell their franchisees about, who are probably all looking at this news with a kind of confused rage and just longing to scream various epithets at anyone who’s in charge over there.

Chrysler needs a comeback, plain and simple.  So what they’ve got to do is offer stuff you can’t get anywhere else.  Frankly, I have a hard time imagining just what it is they CAN do.  I drive a Chevy, myself, a wonderful if aging Monte Carlo, and my folks drive Ford Explorers.  There’s not a whole lot of taste issues as I’m considering switching to a pickup fairly soon anyway, and chances are I will go either Ford or Chevy.

Chrysler needs to get some new and interesting product, or it doesn’t matter how many bailouts it gets–it’s still done for.

Continue reading...

Yeah fellas, keep waiting.  I got a feeling that, before you get a viable strategy out of Chrysler, Hell will be a Frigidaire dealership.

But there’s a vague glimmer of hope here, as Chrysler franchisees will now be getting their marching orders from Fiat SpA rather than Chrysler proper.

Now, ordinarily, I’d laugh myself stupid at the thought that somehow Fiat (widely known by the acronym for Fix It Again, Tony) would be able to generate a more viable corporate strategy than Chrysler, but hey…I’m laughing out the other side of my face today as it becomes clear that Fiat outlasted Chrysler.  And in business, survival is the only real judge of viability.  If you’re still in business tomorrow, then your business model works.

So what will that strategy be?  We won’t find out until at least Wednesday, when the franchisees get the word.

Continue reading...

Surprise, surprise–your used car might be worth more than you thought it’d be in trade!  But the bad news is just as unusual–that new used car you’re looking at…surprise, surprise…is likely to cost more than expected.

Everything we’ve been expecting here for some months now–the bad economy driving up demand for inexpensive used cars coupled with cash for clunkers driving down the supply of said used cars, leaves a perfect storm for those interested in picking up a used car.

There’s fewer of them, more people want them, thus the price of them has gone up to make up for the short supply.  It’s economics 101, folks, but it doesn’t exactly help the overall picture.

But interestingly enough, the problem should also prove to be self-correcting.  Since the prices are up, as is the case for anything that’s in high demand with a slim supply, fewer people will be inclined to buy.  Thus, prices will have to come down just to get people back in the door and buying again.  The consumer’s capacity for consumption has fallen off a cliff in recent months–any huge price hikes will be met with resistance.

And this in turn should, in six months to a year or so, drop prices back down.

Continue reading...

The badly embattled GM recently sold off its Hummer arm to Tengzhong, a Chinese motor company, and the first thought on everyone’s mind was, what would happen to the jobs in the area?  Most thought that Tengzhong would pull Hummer’s operations overseas, or at the very least, out of state.

Well, those autoworkers are breathing a sigh of relief to discover that Tengzhong’s leaving things as is.  The state of Michigan dumped fully twenty million dollars in state tax credits over the next ten years into Hummer, and expects Hummer to put in just over nine million dollars of investment into its new headquarters.

This is of course incredibly good news for Detroit, who badly needs any job it can get.  Losing more of them would have come as a serious blow, but the cost is positively massive as the state itself is having budget problems of its own.  Where they expect to make up such losses is a blank space at best.

Continue reading...

You’ve got to love the Chinese negotiation style. First they’re interested in Volvo, then they release a statement saying they’re not.  Then they follow THAT up by announcing they’re trying to raise two hundred and fifty million dollars, which they IMMEDIATELY follow up by saying that it’s not at ALL for buying Volvo because that’s not near enough money for the beleaguered loss-leading car line.

“The size of the bond and warrant issue is not enough compared with what would be needed for the Volvo takeover,” the executive was quoted as saying.

See, that’s exactly what they said.  It kills me, really it does, but it sounds for all the world like they’re interested.  They’re hiding it really well but they keep dropping hints.  Lots, and lots, and lots of hints.

I suppose only time will tell, but I expect to be hearing the phrase “will tender an offer” soon.

Continue reading...

Remember back in March when we were talking about all those vague rumors about who wanted to buy Volvo out from under Ford?

Turns out the name of the business is Geely Automotive, along with a state-owned partner.  Both of these outfits are flush with cash while riding one of the largest domestic car market expansions in history.

Now, this move actually helps Geely out pretty substantially, as its cars are big, BIG names at home but they’re not so hot abroad.  I don’t know about you but I hadn’t even heard of “Geely Automotive” before today.  But if they can get some of their cars and manufacture them under the Volvo banner, they’ll get a serious halo effect advantage from the Volvo name.  Everyone’s heard of Volvo, after all, and a Geely car made by Volvo would have a better public perception.

We’ll keep an eye out and see if this deal goes anywhere, or if it’s just more corporate smoke and mirrors.

Continue reading...

null

The release of the Buick Business concept “MVP” has been engineered completely by GM’s Pan Asian Technical Automotive Center (PATAC). Once inside the concept, viewers will see rotating seats that can face one another, tables and various other features to help the concept live up to its ‘Business’ nickname. It is capable of holding up to six passengers and features some showy electric sliding doors, 20in wheels and a glass roof.

Powered by a 2.4L four-cylinder engine, the Business concept also has an electric motor, to show Buick’s commitment to electric power and saving the environment. Along these lines, the concept also features a stop-start system and regenerative braking. It is unlikely that this vehicle will ever make it to the U.S. but Buick is big business for GM in China.

Continue reading...

GM’s Tom Wilkinson has recently announced that the automaker is letting go of another 1,600 jobs, this time white-collar, in a continued effort to restructure the company.

There’s no word on what departements these jobs will be cut from but Autoblog is reporting that during this recession GM has been forced to cut around 47,000 jobs decreasing their workforce to 200,000.

When will the agony stop?

Continue reading...

One country that has reportedly been making good business with the eco-friendly cars today is Belgium. Figures from the Belgian Federation of Carmakers, Febiac, show that 14,000 new green cars were registered in the country last year.

According to Febiac spokesman Joost Kaesemans, this was due to a number of factors including more vehicles complying with stringent environmental legislation creating greater choice and the increase in the number of green cars linked to stricter carbon dioxide (CO2) norms that are now being introduced.

Sales of green cars have also been boosted by tax incentives – up to 15 per cent of a car buyer’s outlay can be refunded. During the credit crunch, this represents a significant boost to the sales power of car buyers.

According to Febiac, the rise in the sales of green cars has continued during the first few months of 2009 although there are concerns that the tax incentive may soon become unaffordable for the authorities.

(Source) The Green Car Website

Continue reading...