Category Archives: news analysis

Toyota Prius Plug-In Gets California and Federal Subsidies

Prius Plug-in is Toyota’s first application using a lithium-ion battery pack, which it claims increases its overall fuel economy and has charging times of only 2.5 to 3 hours using a standard 120-volt outlet or 1.5 hours using 240v, which would cost at least $1,000 for a home installation.

The largest Japanese automaker, and hybrid technology leader, resisted using lithium ion batteries for years. However, political and marketing pressure, as well as government regulations favoring the controversial technology, has forced Toyota to embrace the plug-in concept, which is years or more from practical use unless you use the new “green math” to justify its steep price. Continue reading

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Ex HP Exec to Head GM’s Global Information Technology

The latest senior executive change follows the appointment last week of insider Jon Lauckner, 54, as vice president and chief technology officer. Both appointments are crucial to GM’s ongoing recovery. Less obvious to automotive media, though, is the importance of IT in a global corporation of GM’s size and complexity. Continue reading

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Chevrolet Volt EVs on Way to California. Volts now Qualify For HOV Lanes and a $1,500 State Taxpayer Subsidy

Chevrolet Volts with a ‘Low Emissions Package,’ which is standard for California Volts, began shipping from the General Motors Detroit-Hamtramck plant this week and will begin arriving at the more than 140 Chevrolet dealerships in California before the end of … Continue reading

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Porsche Recalls Cayenne SUVs for Headlights Falling Out

Porsche is recalling more than 20,000 four-door Cayenne SUV models in the U.S. because the headlights can become loose and possibly fall out. Globally 100,000 Cayenne SUVs are affected. Letters are now being sent to owners of the affected vehicles, Porsche said in a required filing with the National Highway Traffic Safety Administration. The repair takes approximately 45 minutes. Continue reading

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Another Two Honda Recalls for Fires and Tailgate Struts

Honda is experiencing something similar to Toyota’s well publicized quality meltdown. During the past year or so, Honda has issued more than 26 public statements about various safety defects and recalls in the U.S. The question remains will NHTSA fine Honda, absent the high profile, highly critical Congressional hearings that Toyota and NHTSA endured, or the egregious behavior of BMW that NHTSA just called out? Last week NHTSA fined BMW of North America and its German parent company $3 million for not reporting safety defects promptly. It was the second highest fine in history after Toyota paid almost $50 million in 2010 for not disclosing safety defects promptly. Continue reading

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PSA Peugeot Citroën in Alliance Talks with GM

Neither General Motors nor PSA have officially confirmed the talks, other than to say that discussions with other automakers routinely occur. Last week Peugeot posted weak results as Group operating income declined to €1,315 million from €1,796 million in 2010. GM has been losing money at Opel for more than a decade – $700 million in 2011 alone. Continue reading

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UAW to Demonstrate During Romney Speech at Ford Field

GM’s latest financial results added fuel to a raging fire as the elite political ruling class continues a contentious debate about the proper roll of government in the flagging U.S. economy in general, with the $80 billion auto bailout one of the focal points. One wag suggested that Democrats should run on “Bin Laden is Dead, GM is Alive,” a tough argument for Republicans and their ‘do nothing’ Congress to refute in the view of critics and what appear to be many pragmatic voters. Continue reading

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Camaro, Corvette Auto Transmissions Faster than Manuals

The latest evidence against manual shifting comes from Chevrolet whose paddle shifter automatic transmissions on Camaro and Corvette models in 2012 have a new software algorithm that improves tap response time ~60% compared to the previous system. As a result, the 2012 Camaro ZL1’s six-speed automatic transmission has a 0-60 time of 3.9 seconds – a tenth of a second faster than GM’s official manual transmission time. Continue reading

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U.S. Vehicle Ownership Now at a Record 71 Months

The average length of vehicle ownership that were purchased as new has risen to a record 71.4 months, or nearly six years, according to the latest Polk registration data. Consumers who purchased used vehicles held them nearly 49.9 months. Combined, new and used vehicle owners are holding on to their vehicles for an average 57 months. Continue reading

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GM to Freeze U.S. Pension Plans and Convert to 401Ks

GM’s global pension plans were underfunded by $24.5 billion, an increase from $22.2 billion at the end of 2010, GM reported today in its year-end results. Of that potentially crippling debt $13.4 billion is in the U.S. Continue reading

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NHTSA Proposes Distracted Driving Guidelines for Automakers

U.S. Transportation Secretary Ray LaHood announced today groundbreaking federal guidelines for automakers to limit the ‘distraction risk’ caused by the growing number of in-vehicle electronic devices. The new distracted driving design recommendations appeared to catch automakers off guard since they did not have a ready response.

Moreover, NHTSA said this was only the first of a series of proposed distracted driving design practices that manufacturers can use to ensure the systems or devices in their vehicles are less likely to distract drivers and cause accidents. The intent is to “limit tasks not directly relevant to safely operating the vehicle, or cause undue distraction by engaging the driver’s eyes or hands for more than a very limited duration while driving.”

While not a formal regulation (yet?), the voluntary design standards from the National Highway Traffic Safety Administration bring additional pressure on automakers to reform automotive electronics. Thus far automakers have ignored with impunity the deadly results from the consequences of the growing use of an increasing array of in-vehicle electronic devices and screens. Even if they don’t become regulations, the guidelines will make it difficult for consumer organizations – say Consumer Reports – to recommend vehicles that don’t meet them. And you can be sure that NHTSA will ultimately incorporate them into its own safety ratings. Continue reading

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Distracted Driving Prompts Technology Forced Compliance

Most fleet managers lack confidence in current enforcement methods, so 27% plan to investigate cell phone use analytics and 21% plan to explore ‘smartphone’ software within the next twelve months to automate and force employee compliance with regulations and company policies. Translation: big brother is going to get bigger, ultimately with privacy and civil liberty implications for all drivers. It is also just a matter of time before the National Highway Traffic Safety Administration gets more involved in regulating all drivers. Continue reading

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Energy Conversion Devices Files Chapter 11, Sells Ovonic Battery. Common Stock to Be Worthless Under Reorganization

OBC was the inventor and worldwide licensor of nickel-metal hydride (NiMH) rechargeable battery technology, but the cancellation of GM’s EV1, which used the batteries, and the building of a NiMH battery factory in Ohio, which was never used, severely hurt the company, which had a record of obtaining research grants and licensing patents, but was ultimately never able to profitably commercialize its advanced technologies. Continue reading

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Buick Drops Base Regal Model in 2013. E-Assist Now Standard

Starting with 2013 models this fall, E-Assist will be standard on the mid-size Buick Regal with the discontinuation of the 2.4-liter base model. It is the second mild-hybrid to join the Buick lineup as standard equipment following the full size … Continue reading

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Ford Motor CFO Booth, Global P.D. Head Kuzak to Retire

Ford Motor Company announced today that Lewis Booth, 63, executive vice president and chief financial officer, and Derrick Kuzak, 60, group vice president, Global Product Development, will retire on 1 April. Both of these key executives served the Number Two U.S. automaker for more than 30 years. Booth had wanted to retire for years but stayed on out of loyalty. Kuzak came as a surprise.

These senior executive changes are unfortunate in timing as both the highly compensated Booth and Kuzak did yeoman’s work in trying to right a still troubled company that recently is showing signs of returning to competitive health.

In late 2008, a week after the collapse of Lehman Brothers triggered a worldwide financial crisis and the ongoing Great Recession, Booth returned from heading Ford of Europe to Dearborn as Ford’s chief financial officer where management was struggling with the dire cumulative effects of years of losses, declining sales, heavy debt loads and unfunded pension liabilities – the same issues Booth was grappling with in Europe. Prior to that Booth headed Mazda in Hiroshima. Ironically, it was Booth as Ford’s CFO who was forced to sell Ford’s controlling interest in the feisty Japanese company for badly needed cash. Continue reading

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