Episode 759 – Q4 May Beat Expectations, Toyota’s Leg Up, Remembering Bill Mitchell
November 2nd, 2011 at 12:25pm
Runtime: 8:19
October sales numbers reveal that the fourth quarter may end up better than we thought. Toyota gets in the robot game with an exo-skeleton that assists in walking. Leaf sales are beating the Volt by a wide margin. All that and more, plus Peter De Lorenzo reflects on GM stylist Bill Mitchell.
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Greetings campers. It’s Autoline Daily for Wednesday, November 2nd 2011 with yours truly, Peter De Lorenzo, filling in for my After Hours tag team partner Mr. McElroy as he winnows his list of car of the year candidates. John’ll be back on Friday. Until then it’s two days of High Octane Truth – or as close as our producer will let me get to it.
OCTOBER SALES
And speaking of truth, why don’t we start with October sales because it looks like the 4th quarter may be stronger than we initially thought. The roller coaster SAAR is back on the upswing coming in over 13.2 million units led by Chrysler up 27 percent primarily because of Ram truck and Jeep. The turnaround in Auburn Hills continues with 19 consecutive months of year-over-year gains.
The news wasn’t quite as bright for the rest of the Detroit Three but still not bad for a lousy economy. Ford sales were up 6 percent thanks to Explorer and Escape while GM rose only 2 points driven by Chevrolet.
Meanwhile the big news continues to be the South Koreans as Hyundai notched another 23 percent increase over last year with Kia not too far behind.
And though things are looking better for the Japanese brands it’s still a struggle for at least two. Toyota registered an 8 percent drop from a year ago while Honda was down 1 percent, but good news for Nissan whose numbers were up 18 percent setting a new record for the month selling more than 75,000 vehicles with almost a thousand of that number the new NV Commercial van.
Now those of you who watch this show religiously, and why wouldn’t you, know that just two days ago we talked about NV sales for September and how low they were. Well, you can put two and two together and figure out that unless Nissan started giving the vans away in October nobody increases sales over a thousand percent in four weeks. So Autoline Daily has to take this one on the chin and we apologize to Nissan for the mistake.
LEAF CHARGES AHEAD OF VOLT
And now for news that is mistake-free, let’s move to the electric front as Nissan and its Leaf leads the category with more than 8,000 sales so far this year charging ahead of the Chevy Volt by more than 3,000 even though the Volt did in fact outsell the Leaf last month for the first time since April.
ORDER YOUR FOCUS ELECTRIC TODAY!
And if that didn’t shock all you electrophiles out there enough then get ready because today Ford throws its three-pronged plug into the ring. Orders for the Electric Focus go live today from Ford’s site. Now you won’t see the nearly 40-thousand dollar all-electric car until next year and it’s only available in 19 markets around the country. But if you’re breathless to be part of the club just click on the link in our transcript and it’ll take you right there.
JAPAN WANTS WIMPY YEN
Earlier this week we looked at net profits for the major automakers for the first half of the year and found out just how much the strength of the Yen had cut into the Japanese automakers earnings. To combat the problem the Japanese government wants to lower the value of the Yen but not everyone is happy with that. According to the Detroit News, GM, Ford and Chrysler condemned the move and say a weaker Yen will subsidize exports to the U.S. while putting U.S. exports at a competitive disadvantage. The American Automotive Policy Council also says Japanese automakers will be less likely to make more investments in the U.S.
TOYOTA OFFERS A LEG UP
Automakers like GM and Honda have experimented with building robots for use outside of the auto industry. Now Toyota is showing off robotic technology to help people who are sick or injured regain their balance and perform everyday activities like walking. The company says the technology can be used outside of medical use to assist in moving heavy objects in factories. Toyota is aiming to commercialize these technologies within the next two years.
Coming up after the break, I’ll give you a personal look inside the bowtie.
REMEMBERING BILL MITCHELL
It has been interesting to read all of the articles about Chevrolet and its 100th Anniversary over the last couple of weeks. Chevrolet the brand, like Ford, its arch competitor across town, has been inexorably linked to the American fabric for a century. Regurgitating what has already been written is something I won’t do. But shedding light on my own Chevy stories is something I can do. Following is just one of them.
First of all, to say that the ‘50s and ‘60s were a different era in automotive history is not painting a proper picture of just how different it was. Detroit was much more of a freewheeling mindset back then. Car executives were bold, decisive, conniving, creative and power-hungry personalities who inevitably went with their gut instincts. It was a world that was 180 degrees different from what goes on today.
And no one represented the spirit of the business more than Bill Mitchell, GM’s chief of design, or “Styling” as it was called back then. Mitchell was bold, powerful, flamboyant, recalcitrant, maniacal, brilliant, frustrating and probably every other adjective you can think of for someone who was one of a kind. He was smart enough to know that he had inherited the legacy of the great Harley Earl, GM’s first styling chief, and he never for a second forgot that fact, or let anyone else forget it either. And he played it for all it was worth with a swagger and strut that haven’t been seen in this town since.
Having heard countless first-hand stories about the man and his ballistic fits in the styling studios while cajoling his troops to go further and reach higher, I can shed light on a slightly different side to him too. Because, after all, he lived just a block away from my house growing up…
Back then Mitchell liked to have his favorite car toys of the moment delivered to his house on Friday afternoons so he could enjoy several of them over the weekend. That meant everything from the original Corvette Stingray racer or the famed XP700 Corvette “bubble-top” show car, to the first Mako “Shark” Corvette and a concept called the Corvair Sebring Spyder, a wild racing-inspired show car with dual cut-down racing windscreens and three pipes curling out and around each side in the back.
Once I got this Friday Afternoon Ritual down pat, I would case out Bill Mitchell’s driveway to see what cars were delivered for his amusement. Then, early Saturday morning I would ride my bike over to his house and basically camp in his driveway inspecting every inch of the machines in repose there, waiting for Mitchell to emerge. One Saturday morning Mitchell came out and had me “hop in” for a ride up to the local drug store in the Corvair Sebring Spyder. The run up to the drugstore took 15 minutes, start-to-finish. But from that moment on I was hooked on the automotive “thing” and over a couple of year’s time I got to ride in every significant GM Styling concept car of that era, including the original Stingray racer, which to this day is still my all-time favorite car.
You can read more of my stories in my column this week in Autoextremist.com.
And before we go today, let me put in a shameless plug for After Hours. This week John and I will be talking with Stuart Norris, the lead designer of the Cadillac CUE. And if you don’t know what I’m talking about think mixing an iPhone with a luxury car’s entertainment system and you’re on the right path. From the Cool zone, no doubt.
Well, that’s The High-Octane Truth for now, my unvarnished ones. I’ll load up and see you tomorrow. Until then, rock on… and stay hungry.
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Comments (33)
November 2nd, 2011 at 12:39 pm
Peter D’s insights on Bill Mitchell are one of the reasons I keep coming back every day.
And he does look dashing in that M jacket!
November 2nd, 2011 at 12:39 pm
Ever the Chevrolet fan, I really enjoyed your Bill Mitchell editorial; thanks Peter (just about always enjoy your viewpoint(s).
November 2nd, 2011 at 12:44 pm
CHRYSLER SALES
( dirty little secrete )
Well while folks are trumpeting the increase in sales for Chrysler , what everyone except Jalopmink and Reuters has ignored is that Chrysler has also upped its incentives .
Ooops
Seems the only way Chrysler can sell more cars is to give them away .
The Stock Market agrees as Chrysler/FIAT’s stocks tumble today .
” You can fool some of the people ……. ”
———–
GM now selling Trucks thru …………
COSTCO ????
Seriously ? TTAC has the full report , but it seems GM needs to go the Big Box discount stores route in order to increase sales
Hmmmn . Always leaving the job of the Spoiler to me
Guess I’m the ” Bad Cop ” in the Good Cop / Bad Cop scenario
And here I thought that was PDL’s job .
Ohhhh well . Guess I need to pull the AutoAnarchist outfit out of the mothballs and get back at it .
Sigh ……………..
November 2nd, 2011 at 12:53 pm
Bill Mitchell
The ” Manta Ray ”
Need I say more ?
November 2nd, 2011 at 12:59 pm
CADILLAC CUE
Isn’t that brilliant .
Take one part Car designed with more Blind Spots than a tapped up Full Face racing helmet
Add in one part Excessively Distracting In Car Entertainment system
And you get
The Cadillac CueBall ( fill in the letters ; e.g CueBall SRX the CueBall CTS etc )
Which as its name sake implies will be bouncing off every car on the road as well as the curbs . Not to mention jumping the railings on a regular basis
I cannot wait till the Auto Insurance gurus finally wise up and start charging Premiums for All Cars that have excessive Blind Spots and over done In Car Entertainment
Then perhaps the consumers will wise up , and not buy such cars as well as the rest of us not having to pay extra for others to own such cars
November 2nd, 2011 at 1:08 pm
tj, I agree with your rant on blind spots. They keep on increasing with every model year. I had a Dodge Caliber rental the other day and had a heck of a time seeing past that hugely thick A pillar and the sloping rear end.
Arg!
November 2nd, 2011 at 1:15 pm
I am very glad to see that another OEM has been working on exo skeleton motorized devices to aid people to regain mobility. This Technology could be used to rehabilitate countless American Veterans returning home after losing limbs to IED’s. We can rebuild them, make them stronger, faster and regain what we have all asked them to sacifice on our behalf. This Technology was envisioned in the Six Million Dollar Man, Bionic Woman and Ironman to mention a few. Last night I met with Lon Safko, he is the man behind computer hardware and software to help the physically challenged. What a Guy! Maybe Toyota should consult with him on robotic technology.
November 2nd, 2011 at 1:27 pm
@5 & 6
Blind spots or not, I don’t care. That Cadillac CTS coupe is hot! And so is the new Camaro.
I know most of you (tj) think the design of that CTS will look outdated in another 3 years. In my book, it’s an instant classic. I’d love to have one in my stable. Blind spots and all. I don’t care. The car is freaking gorgeous!
November 2nd, 2011 at 1:36 pm
How come nobody has complimented Peter on his new hair style? Rock on Pietro.
November 2nd, 2011 at 1:53 pm
I wonder how long it will be before most automakers forget the real purpose of car, how to make serving that purpose fun, and most of all, what responsibilities come with fulfilling a car’s intended purpose (e.g., paying attention to the road in front of you and those around you). Adding more and more features to small devices with tiny screens to entertain and de-socialize people may be all the rage right now, but I really prefer to enjoy the experience of driving when I’m at the helm of a 4,000 pound mass of metal moving at highway speeds. It’s even better when other drives do, too! Maybe one day automakers will again be cognizant of how good it is to have at least one hand on the steering wheel at all times while in motion, or how watching THE ROAD and checking your mirrors is ideal for avoiding the harsh impact of hitting a tree, a person, another car, or even a tractor trailer head-on. But nah, God forbid someone not have I-Pod, I-pad, I-phone, or some other device that works with it.
November 2nd, 2011 at 1:58 pm
The reason for the info-tainment system is money. Money for the system and more money for the electonic nannies. Maybe the same reason for the blind spots too, see you need the car in the blind spot detector.
November 2nd, 2011 at 1:58 pm
@ Jon M
RE; #10
+1
With a bullet ( as we’d say in my business )
Could not of said it better !
November 2nd, 2011 at 2:04 pm
@ MJB
IMHO the design of the CTS ( and the Camaro ) are already ‘ Dated’
The whole ‘ Stealth Fighter ‘ – ‘Transformer ‘ schtick being so yesterday its become the day before
8)
( sorry MJB but it had to be said and it might as well be me saying it )
November 2nd, 2011 at 2:07 pm
My favorite Bill Mitchell story is the one about finalizing the paint colors for the Mako Shark. Classic!
November 2nd, 2011 at 2:08 pm
Peter can say all he wants about seeing those Corvettes when he was a kid, but even today, when you see those cars from the fifties and sixties lined up against anything else, it’s just explosive. Pre or post Stingray, Corvettes are witchcraft.
________
Kruft. The term for once useful, but now obsolete technical equipment. I’ll argue that in-car electronics, whether it’s for the user or behind the scenes is changing so rapidly that what you really want is a USB for your mobile device and a high res screen in the dash.
November 2nd, 2011 at 2:13 pm
HOW THE MIGHTY HAVE FALLEN
http://jalopnik.com/5855649/former-nascar-driver-jeremy-mayfield-caught-with-meth-and-50-guns
It seems NASCAR may be getting closer to its ‘ Root’s of late than it ever intended to
Trading Bootlegging for Controlled Substances of course , but keeping the same Theme alive
Ahhhh the more things change …. the more they stay the same
November 2nd, 2011 at 2:15 pm
@13
I know, tj… I know….
I guess the CTS will live on as a classic only in my mind…
After all, I’m also the only one here who actually LIKES the Acura TL styling.
November 2nd, 2011 at 2:20 pm
# 4 should of read ;
Mako Shark
Mea Culpa ( molto grazie Brett for the reminder )
My personal all time fav BM car ?
65 Sting Ray convertible . Burgundy with parchment white interior . Dads best friend from work had one . Replacing his Austin Healy 3000 . All my love of sports cars originated with those two cars so the 65 Vette will forever hold a place in my memory .
November 2nd, 2011 at 2:22 pm
@ MJB
Thats OK we’ve all got our Guilty Pleasures when it comes to design
Mine being the Alfa Romeo SZ and RZ
Zero justification , but I loves them ( both their looks as well as driving them )
November 2nd, 2011 at 2:31 pm
@ #6 Tony, you can thank IIHS and NHSA for the thick A-pillars.
November 2nd, 2011 at 2:53 pm
Re: Leaf over Volt. The KISS principle applies here.I put 10 miles on a Volt last week & it has a daunting complexity , electro/mechanically speaking. I,m glad my 40 years as an auto electrician predated this age of electronics,
even if scanners now do most of the thinking.
November 2nd, 2011 at 3:06 pm
@19
I like.
The front end on that Alfa is very reminescent of the BMW 840 & 850
November 2nd, 2011 at 3:15 pm
BLIND SPOTS
( from ; The more things Change … The More they stay the Same : department )
A Quote from the inestimable E.B. White : Circa – October 1940 – from his book ” One Man’s Meat ” ;
” Some years ago car manufactures maliciously began reducing the size of windows and increasing the size of mudguards , or ” fenders ” as the younger generation calls them . By following no particular principal of design and ignoring the functional aspects of an automobile , these manufactures eventually achieved a vehicle that not only was stranger looking than anything heretofore been seen , but that , because it cut off the drivers view , proved itself capable getting into more scrapes . At first the advantages of this design were not apparent , but it didn’t take long before the motor -car industry realized that it had hold of something that , from a commercial angle , was pure gold . Every automobile was intrinsically self -defacing – and sometimes self destructive – and this soon made the market ever so much brisker ”
There truly is ” Nothing New Under the Sun ” gentlemen .
More like SSDD
November 2nd, 2011 at 4:28 pm
Bravo Peter ! An absolutely Outstanding commentary. Keep them comming.
November 2nd, 2011 at 4:55 pm
Today I had a client who works at a Hyundai dealer, when I was done, I asked to look at a new Elantra, I was shocked to see how tight the front seating are is, I felt cramped and almost claustrophobic with the protruding dash and center console taking so much room from both driver and front passenger, not to mention the thick A pillar and tunnel-like floorboard leading to the pedals, honestly if all compact cars come like this now, I don’t see myself getting into any of them, they have sacrificed interior room for the sake of exterior design. I thought the whole point of FWD was to get more interior room and keeping the outside smaller/lighter?
November 2nd, 2011 at 5:03 pm
Ford apparently takes the therat from the NV and sprinter seriously, since they’ve confirmed they’ll be building and selling the Transit in North America soon. Now to see if GM will update the Express and Savanna as well. Basing the G1500-2500 on the new pickup platform would be a start. Of course they also have a small side bet with the Bright Idea.
November 2nd, 2011 at 5:30 pm
Refering to the Yen devaluation; I have grown rather tired of both the stock markets and gov’ts manipulation games. There has been talk of taxing investment transactions,i.e.,short sellers, to level out the daily roller-coaster averages. I,for one,am all for it in principle.And as far as currency fixing,why not simply adjust the cost of imports based upon,for example, the fair market value of a good in the country the product is sold? Argintina is doing something like this to the Chinese. Just a thought. It’s a sin to covet thy neighbors wife,but its’not a sin to screw thy neiboring countries around the world who copy,steal and don’t play a fair market game. China,Korea,and Japan are first on my list.
November 2nd, 2011 at 6:04 pm
@ cwolf
Shame on you !!!
How dare you bring logical thinking and reasonable thought to the table
This is an Automotive forum . Where style and Hype are the norm . Price fixing and manipulation as well .
And you DARE to inject even a moments logical thought into an automotive conversation ???
Well good for you .
Keep it up
Glad to see I’m not the only one who’s eyes are wide open , not blinded by corporate Rose Colored glasses
I prefer Raybans myself
8)
November 2nd, 2011 at 6:20 pm
I hope I didn’t strike a nerve with pedro,since he is a Hyundai fan. Rock and rattle my friend.
Bet you look rather dapper in Raybans,tj. But as for me,I just squint or wear a hat. Having self-darkening glasses is not for me and flip-ups are SO… nerdy!
November 2nd, 2011 at 7:00 pm
Some of those increased Volt sales last month apparently went to rental, with MPG car rental in LA taking a few, although they don’t say how many.
November 2nd, 2011 at 7:10 pm
cwolf, sorry no H/K fan here the fact I don’t own one and walked away from an Excel and now I see this Elantra with bad ergonomics. forget about it! today I had motorcycle sticker shock also went to a Harley store and I found out th “cheapest” bike they had there was $9k!!!!!!!!!!!!!!!
November 2nd, 2011 at 7:28 pm
Currency manipulation is a blind. I know everyone always complains about it one way or the other, but good management and accounting practices should eliminate currency fluctuations from long-term effects on competitiveness and profitability. A high yen should reduce Toyota’s cost of materials as much as it increases the cost of labor etc., and the same for their suppliers. There may be short-term pain from locked-in contracts, but with the yen so high for so long, they should be able to make gains based on the lower raw-materials costs. Increased purchasing power not only means reduced costs for Toyota, but it should also mean reduced costs for farmers, lower prices for consumers, and lower wage pressures, eventually restoring balance. Instead of wailing about the new level, they should be asking “How can we use our increased purchasing power to lower our cost of production? Should we be getting cheaper quotes for steel, plastic, glass etc., should our energy costs be lower? Can we lower the costs of our tooling, machinery and parts now that the yen buys more? Can we reduce our healthcare costs now that the yen can buy drugs etc. more cheaply?” For the US the answer has invariably been “No” (the curse of being the benchmark currency), but for Japan and China, a higher currency has only a short-term impact on profitability.
November 5th, 2011 at 10:22 am
Great show Peter!!