Automotive Blogger

News from Chrysler this week is that they’re cutting third shifts and various American plants, as well as cutting models, so if you’re a great fan of the PT Cruiser Convertible, you should buy one now, because after 2009, they’re a discontinued model. Other models being cut are the two-seat Crossfire, the Pacifica, and the Dodge Magnum.

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Also making news in Detroit are Chevy’s plans to unveil a seven-seat compact minivan based on the Opel Zafira, though made a bit more masculine, this bringing European styling to American family vehicles once more (compact minis are tres chic across the pond). This minivan, currently known as the MPV-7, is likely to be built in Hamtramck, MI.

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Jeep is making news on the Alternative Fuel front, by offering a diesel option in their new Laredo. The optional engine is a 3.0 liter V-6, and it makes the Laredo the third Grand Cherokee model to have a diesel option. The other two are the Grand Cherokee Limited and Overland. The base MSRP for the Laredo is $35,685 for 4×2 models and $40,905 for 4×4 models.

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Finally, from Los Angeles, there’s news that Kia has a new CEO. Len Hunt, age 52, who has been with Kia for about two years is replacing B.G. Lee, who has returned to the Korean company’s home office. Hunt is the third CEO of Kia’s American branch since 2001, when then-CEO Peter Butterfield was fired.

It seems like the news from Detroit these days is nothing but bad. GM and the UAW went through a strike just a few weeks ago, while Chrysler is still in negotiations, and sales of American cars are slumping at the same time American auto workers are asking for better job stability and benefits, among other things.

GM, specifically, has announced that with sales of the Buick Lucerne down 15.3 percent, and the Cadillac DTS down 14.4 percent, they will be halting production of those front-wheel drive behemoths at it’s Detroit-Hamtramck plant for two weeks beginning on December 14th, with subsequent plans to completely drop a shift, and lay off 767 hourly workers.

The Lucerne and the DTS were originally put into production to replace the classic Buick LeSabre and Cadillac Deville. GM’s numbers say that the Lucerne’s whole market segment is down 19.1 percent through September, while the DTS is still leading it’s segment, but also has numbers that are off, down 5.5 percent in the first nine months of 2007.

The Buick Lucerne is one of only two remaining Buicks in production today.

MotorTrendOnline is reporting that Changfeng Motor Group and Geely International Corporation will be making a return to the 2008 Detroit Auto Show, with BYD Auto, Chamco, and Li Shi Guang Ming going along for the ride. This means that China’s presence at the auto show will be more than double what it was in 2007.

Last year, Changfeng brought over the Rhombus concept car, which sported three wheels and a carved bamboo interior, and bragged about their Hunan Province (the birthplace of Mao Tse-Tung) headquarters, neither of which impressed the US public or audience, though they did sell around 200,000 trucks and SUVs worldwide.

MotorTrend’s assessment of the Chinese company’s plan to market here in the States was less than favorable, referring to translation issues and poor planning, but it still bears mentioning that these makers are showing up.

Chamco, on the other hand, has Steven Saleen guiding them toward a successful launch into the American Market, where they hope to offer their SUV’s and trucks by 2008. They have a trial run set for Mexico first, and expect their Chinese-built vehicles to do well, but when it comes to Chinese automakers, great expectations don’t always lead to great success. In fact, so far the number of Chinese auto manufacturers to successfully enter the US market is approximately ZERO.

Still, the Korean manufacturers had successful entrees with Kia and Daiwoo, so maybe it’s good for the Chinese companies to dream.

After all, big dreams are what the US is all about.

Happy October!
Coming at you today we have news of two different recalls, one from Volkswagen and one from Toyota - we’ll be adding both to our safety files.

Toyota Motor Sales, USA is recalling their all-weather floor mats that can jam the gas pedal in some Toyota and Lexus models. It’s a direct response to a federal investigation of “unintended acceleration incidents,” and about 55,000 drivers should receive letters.

Toyota owners were already warned about issues with all-weather mats earlier this month, when they were cautioned to use mat retaining hooks, and not to layer all-weather mats with regular ones. Replacements are not yet available, so owners will get a second letter about that at a later date.

Affected models are the 2007 and 2008 Toyota Camry and Lexus ES 350, but even if you’re driving the cool new 2008 Toyota FJ Cruiser you should probably make sure that your floor mats are secure.

The Volkswagen Recall is a little more serious, involving Volkswagen 340,000 Jetta and Rabbit models that were manufactured in Mexico, and sold in the United States, and have mis-constructed head lights.

According to spokespeople at VW, some of the head lamps on affected vehicles are missing legally-required rubber caps that are supposed to be installed in some of the screw-sockets. While VW says there’s no danger caused by the missing caps, owners are urged to bring their car in to their local dealer to have the caps installed.

Looks like VW’s hands on approach may need a little refinement.

In the news this week, aside from GM’s attempt to negotiate with their workers, are a couple of recalls drivers of late-model vehicles need to know about.

Honda’s the first one. They’re recalling almost 200,000 2006 and 07 Civics because the wheel-bearing seal, isn’t. While it doesn’t sound dramatic on first-read, the reality is that this could lead to corrosion that may eventually cause the wheel to separate from the rest of the car. For more information, visit Honda’s website.

Our other recall concerns Chrysler/Plymouth/Dodge, which is not only calling back about 300,000 Jeep Commanders and Grand Cherokees from 2006 and 2007, but also 90,000 2007 Jeep Wranglers and 50,000 2007 Dodge Nitros, all for a brake issue that affects uphill driving.

As if that’s not enough, Chrysler’s also announced a recall for a bit more than 72,000 2008 Sebrings and Dodge avengers for faulty latches and locks on the front doors.

Chrysler customers who are affected by the recall can call 800-853-1403 for more information.

If you are considering one of these cars, make sure you get written documentation that the issue has been resolved before you take the car off the lot.

In an extremely unscientific poll conducted by industry authority AutoNews recently, 125 auto dealers responded to questions about Ford’s Mercury brand. According to their site, two thirds of the respondents said they sell less than 15 new Mercuries per month, and almost eighty percent said they worried that Ford Motor would drop the brand. polled 125 # Nearly 4 out of 5 said they are concerned that Ford Motor will drop Mercury.

With the only new Mercury product for a model year after 2008 being the 2009 Milan hybrid, and the apparent decision to limit the 2008 offerings to updated versions of the Sable and Mariner, those dealers have reason to be concerned, especially since most of Mercury’s line is made of re-badged clones of existing Ford-branded designs.

So, is Mercury on the chopping block? The president of Ford Motor’s American division, Mark Fields, said that there’s still a place for Mercury in the Ford rehabilitation plan, but that the company is focusing on the Lincoln side of Lincoln-Mercury.

Seems to me like Mercury’s orbit is seriously degraded.

Today’s news item involves the web-sales policy at Dodge and Chrysler. It seems that several of their dealers are up in arms because only those dealerships with a five-star rating are getting referrals from the corporate website. Translation: if you go to Dodge’s website and pop in your zip code, you may get listings for more than one Dodge dealership in your area, but clicking on them will only take you to the storefront for the actual dealership if that dealer has a five-star rating.

According to AutoNews, Dodge/Chrysler says that their website was created for those dealers who achieved five star status (based on sales numbers and customer service rankings), but that they’re re-evaluating.

Dealers who don’t have five-star status say the policy not only hurts them, because they don’t get referrals, but also has the potential to hurt Dodge and Chrysler, because there are potential customers who aren’t being directed to the dealer that may actually be closest to them, just the closest five-star dealer.

(Unsurprisingly, most of the five-star dealers have no problem with the current policy.)

Your thoughts: Is this policy fair? What do you think?

If you follow the business operations of the auto industry at all, you know that a corporation called Cerberus has taken over the reins at Chrysler. They’ve just named Bob Nardelli CEO, and he along with former CEO Tom LaSorda were part of a press conference today in which LaSorda pledged his support of both Chrysler and Nardelli.

In addition, Nardelli endorsed the recovery and restructuring plan which LaSorda had launched in February, and both men met with United Auto Workers president Ron Gettelfinger, and Canadian Auto Workers president Buzz Hargrove, both of whom represented employee’s concerns over the new management.

While Tom LaSorda is supporting Nardelli, however, his former second-in-command, COO Eric Ridenour has chosen to leave the company, resigning after a 23-year tenure.

Industry analysts were somewhat surprised by the naming of Bob Nardelli to the top-spot, calling his appointment an interesting choice, and expressing doubts about his ability to give Chrysler what it needs. As well, many find it unsettling that this is the second time in the past year that an American automaker has named an outsider as leader. The first time was when Ford Motor Co. hired Alan Mulally from Boeing.

Bob Nardelli is a former senior executive at General Electric, and was criticized for excessive payroll and severance packages, though credited for overhauling the technology and purchasing systems at Home Depot.