Episode 851 – Camaro ZL1 Postponed, China Raises Fuel Prices, Truck Driver Shortage
March 21st, 2012 at 11:50am
Runtime: 7:33
Production of the Chevy Camaro ZL1 was delayed due to an undisclosed “quality assessment” issue. The Chinese government is raising the price of fuel in the country. Even though the U.S. unemployment rate still remains at its highest level in nearly 30 years, trucking companies are having a hard time finding enough qualified drivers. All that and more, plus John responds to your questions and comments in “You Said It!”
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Welcome to Autoline Daily for March 21, the spring equinox for us north of the equator, and the vernal equinox for those of us that live south of it. And now to what’s going on in the auto industry.
EUROPE GOES FROM BAD TO WORSE
The situation in Europe is going from bad to worse. Now Opel’s top labor official is warning General Motors that it better not think about closing any plants (subscription required). Instead, labor is arguing that Opel should simply sell more cars, mainly by exporting them to other markets. Gee, if only it were that easy. Sergio Marchionne says that Europe needs to go through a painful restructuring with lots of plant closings and layoffs. He says the auto industry needs a pan-European solution to overcapacity, because individual nations don’t have the political will to do it on their own. Here’s my Autoline Insight. Getting a pan-European solution is a great idea, and maybe they’ll come up with one in another five years. But all the while, the auto industry will bleed red ink, and GM, for one, can’t wait that long. Instead of pouring hundreds of millions of dollars into Peugeot, GM should have used that money to close a plant. That’s what they’re going to have to do anyway, so they may as well get started now.
CAMARO ZL1 POSTPONED
If you’re on the waiting list for a Camaro ZL1 better hang on tight. Autoblog reports production of the 580-horsepower monster was delayed due to an undisclosed “quality assessment” issue. Several hundred ZL1s have been built so far, but none of them released for sale. They’re still awaiting repairs back at GM’s plant in Oshawa, Ontario. A company spokesman says they’re close to getting things sorted out and will have production up and running again in “weeks, not months.”
EPA LOWERS BMW 328I’s FUEL ECONOMY
BMW is taking a fuel-economy hit on its new 3 Series. It estimated its 328i models would 36 miles per gallon on the highway, better than the previous-generation 335 diesel! BMW’s testing showed that the turbocharged four-cylinder engine and an eight-speed automatic transmission could hit 36 MPG, but the U.S. EPA said no, it gets 33. The city-rating also dropped by one mile per gallon to 23. Despite the drop, the 3 Series’ fuel-economy numbers are still best-in-class. You know, this is emerging as some sort of trend – automakers NOT hitting their electric-range or mileage targets. The Fisker Karma also fell short of expectations, as did the Chevy Volt and Nissan Leaf.
CHINA RAISES FUEL PRICES
Here’s another reason why the Chinese car market could slow down. The Chinese government is raising the price of fuel in the country, gasoline will rise by 7 cents per liter while diesel gets an 8 cent per liter increase. Before the increase a liter of gasoline cost around one dollar which is about $4 per gallon.
TRUCK DRIVER SHORTAGE
Even though the U.S. unemployment rate still remains at its highest level in nearly 30 years, trucking companies are having a hard time finding enough qualified drivers. According to Bloomberg, companies need to offer higher pay and other benefits because workers are moving to other industries like construction, where they make a similar salary and don’t have to be out on the road for days on end. New regulations are also limiting the number of qualified drivers. As we reported the other day, this is also contributing to the shortage of trucks that haul cars to dealerships.
Coming up next, it’s time for You Said It!
YOU SAID IT!
And now for some of your feedback.
Chuck Grenci saw our report on the new Azera in which we said Hyundai claims it’s best in class. “Help an old guy out. What class is this thing in and what other vehicles reside in this class?”
Chuck, that’s a good question. I think the industry would classify the Azera as an upper mid-size car. And it competes against cars such as the Toyota Avalon and Buick LaCrosse.
ERME03 says “I love this show but lately they’ve been talking about Kia, GM and Mazda (like) there is nothing going on with the others automakers.”
And Mark wonders, “John, what is it with your guys and the Mazda CX-5? This is the third glowing segment on the car.”
Well, guys, it’s all about the latest new-car launches that we’ve been to. You watch, in a couple of weeks everyone’s going to be complaining of all the coverage we devote to the Acura ILX, the Ford Escape, and Dodge Dart.
Pedro Fernandez wants to know, “Do you feel the new trend for bigger tires/wheels is worth it when you consider how much more expensive these 16 and 17 in. tires cost, even for ‘economy’ cars?”
It’s all about the look, Pedro. From a ride-and-handling standpoint those bigger wheels often add so much unsprung weight that they’re not worth it for everyday driving. But they sure look better, and can actually help sell a car when it comes time to get a new one.
2003SCT saw our report that Nissan was going to give star quarterback Peyton Manning a Titan pickup truck if he signed with the Tennessee Titans. “Well that’s ONE way that Nissan can get rid of Nissan Titans…lol.”
Yes, they have been rather slow sellers.
And C-Tech says, “Since Manning is going to the Bronco’s will Ford be willing to build him an SUV?”
Well, since Ford no longer makes the Bronco, maybe Chevrolet should give him a Colorado pickup truck.
And Chuck wants to know, “Does the European market have a number similar to our SAAR number?”
That is a great question. I’ve never seen a Seasonally Adjusted Annual Rate for Europe or heard anyone talk about it. In fact, I don’t know any other market in the world where sales data is as complete and as quickly available as it is in the U.S. For example, I’d love to get a break-out of hybrid sales in Europe or Japan. If anyone knows where I can get my mitts on that data, let me know.
Thanks for all you letters and comments, and keep them coming. And that wraps up today’s report. Thanks for watching, we’ll see you tomorrow.
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Comments (39)
March 21st, 2012 at 12:09 pm
Ask the typical truck driver what he thinks of his job. You’ll get an earful of why there is a shortage of drivers. I see signs on the back of some trucks to the effect that they are so in need of drivers, they’ll hire you with no experience and will pay for your training. First year earnings could be as much as $36K. Do what? You are going to turn over a $500K truck, with $250K in cargo and with $10 million in liability to a guy barely making minimum wage? someone who just went through your 3 week driver school? You are braver than me Chief.
March 21st, 2012 at 12:12 pm
EUROPE – I completely agree . Buying into PSA is the second largest waste of finances ( the VOLT being #1 with a bullet ) GM has accomplished in the last five years
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CHEVY TRAILBLAZER
No Trailblazer for you ( US market ) Chevy’s bringing it back . but not bringing it here . Stupid !
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ZL1 news – A Day late and a Dollar short . Last weeks news .
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TRUCK DRIVER SHORTAGE ;
Go figure . With the 100′s of thousands of able bodied folks out there completely jobless ( some 35% or more for five or more years ) and none of them wants to drive a Truck to make an honest buck ?
Jeeze … are We the People …. as screwed up or worse than the Government we currently dislike .. or what !!!
———-
Maybe ALD should consider building in a ‘ Hot Tips ‘ function into the site so as to avoid the Day Late syndrome
Hows about it there Ben ol bean ?
March 21st, 2012 at 12:21 pm
Really, Mazda CX-5? Really?
If I want a base CX-5 with a manual and front wheel drive, it comes only in black, dark grey, and grey, all with dark grey interiors? I can’t get a red car with light interior, even in a higher trim level? Why dirt colored cars? What’s so jinba-ittai about that?
Nobody needs more dirty wash water colored cars on the road. Or do we?
March 21st, 2012 at 12:34 pm
In Regards to Opel, for some odd reason I’ve been keeping tabs on the Opel situation and there is a huge disconnect between the Opel Unions and GM. Currently GM is not talking to IG Metal and IGM is ticked. If I was with GM I wouldn’t talk to them either. They’re not concerned with GM, other GM brands or other union workers etc.
I’m guessing the Opel brand is in serious trouble. It offers nothing to GM, it’s not upscale, Chevy is doing well, they have a new partner in PSA, it’s lost billions and the German RD&E department is a part of GM not Opel.
March 21st, 2012 at 12:48 pm
If any Autoline viewers live in the Northeast, Skip Barber Racing School just posted this notice about their FREE open house on April 19. Trust me, this is fun.
http://www.skipbarber.com/OpenHouse2012.asp
March 21st, 2012 at 12:53 pm
I think in the truck driver shortage one glaring problem is drug testing, there are lots of people looking from california and states that “allow pot use” but they also now do not qualify for a CLD cause they can’t pass the test! Then as an independent businessman as many are the new rules and regulations, shortage of loans, it’s no wonder.
March 21st, 2012 at 12:59 pm
#3
When I bought my 2006 Mitsubishi Outlander, I wanted one with the manual transmission. Only one model had it, the base LS. Not only the base model, but no roof rack, no cruise control, etc. all things that came on the LS model with an auto tranny.
I love the thing, but I’d have like to have the whiteface gauges, the roof rack, the cruise control, etc.
Apparently, Japanese auto mfgs assume you must be Amish or a monk if you want a manual transmission.
March 21st, 2012 at 1:04 pm
John thanks for your response, you know, everyday I find something I like about my Vibrolla that I take for granted, tire replacement costs and a better ride due to smaller (14) wheels, I’ve met a handful of long haul truckers who have gotten out of it due to the fact that they just can’t make the kinds of money they used to, most independent truckers have joined local companies that only deliver short distances and no longer want to be owner-operators, fuel costs, govt regulation, state enforcement of equipment and hefty fines for non compliance is among the reasons given
March 21st, 2012 at 2:12 pm
VW Round II
http://www.thetruthaboutcars.com/2012/03/swift-justice-volkswagen-loses-against-suzuki/
March 21st, 2012 at 2:22 pm
Today I went to downtown Miami, had not been there in a couple of years, I found that meter enforcers now use Smarts instead of Prii and Smarts are also being used as delivery vehicles for assorted restaurants, pharmacies and such! They went from a sophisticated city car to a delivery vehicle.
March 21st, 2012 at 3:03 pm
I saw my first Volt in the wild without dealer plates!
March 21st, 2012 at 3:43 pm
congrats, you’re no longer a V V
March 21st, 2012 at 5:16 pm
I,also,have’nt seen a Volt in months! Yet it seems a Prius is seen every time I turn my head…thicker than flies,I say.
I’ve been asking around what Mr. King has been up to since getting a seat on the GM board,but can’t even hear a bad fib! I think Opel plant closings are inevitable and King will serve as the perfect pawn to try to convince the german unions to accept a deal much like the US union did. I’m sure he will make it clear that the options are massive job losses or the possibility of having a resurection similar to the US unions. I mean,look at this guy!; Does’nt he come across as a strong,influential leader? I can see it now…Opel workers carrying signs in front of Hyundai dealers across Europe. By the way: a growing number are pissed that a couple hundred thou Hyundai’s have already been shiped across the pond, but they,like us, are limited to only 15,000/month per the new agreement. Boy, thats really a fair trade deal!!!!
March 21st, 2012 at 5:21 pm
The Truth about GM
http://www.thetruthaboutcars.com/2012/03/government-motors-on/#more-435939
@cwolf – The German Unions will have King for lunch and he /GM are in no position to bargain
March 21st, 2012 at 5:25 pm
Me thinks BMW and M/B is due for a real eye opener. It’s only a matter of time before Euro sales dwindle,including sales to China. We,the US market, is’nt enough I’m afraid! I suggest they use this time to improve their reliability. As far as VW,I could care less,just like Hyundai.
March 21st, 2012 at 5:26 pm
Around these parts, you can’t swing a dead chicken by its neck without hitting a Prius.
March 21st, 2012 at 5:29 pm
Funny how no one ever mentions the Russian market, is it not large enough? are these Russkies a bunch of cheap skates? where is the rest of the story?
March 21st, 2012 at 5:41 pm
tj #14—- +1 But let me take a stab at this. I sense Germany cannot withstand future expectations placed upon it and GDP will decline. If things move in a downward trend,the unions may buckle,or compromise at best. Hence,GM wins and King is just the bearer of bad news. As of now,a hunch is my best guess.
March 21st, 2012 at 5:46 pm
John, even I would have to think twice about taking a free Colorado pickup truck! A free Colorado might be a deal breaker, NOT deal maker.
March 21st, 2012 at 5:47 pm
#17
Russia has the same problem as China . Despotic government …… Stalled middle class ….. etc
Add to that an endless supply of stolen luxury cars at their disposal and thats pretty much Russia’s story
As to BMW/Mercedes ? If you look into it just a bit you’ll find both are playing the game extremely conservatively . Holding on to their profits/assets , not investing in Vapor Ware technology and not trying to out grow themselves .
e.g. Doing business the ‘ smart ‘ way in such tenuous times
March 21st, 2012 at 5:48 pm
pedro, cars are only important to folks in Russia who have money. The average Russky has so many troubles keeping their ride running that it causes them to drink more Vodka. After awhile,the Vodka is more satisfying!
March 21st, 2012 at 5:49 pm
March 21st, 2012 at 5:52 pm
Ben, you want me to get my Russkie friends to start a DNS process? I can’t post
March 21st, 2012 at 5:53 pm
#18
One last for the day
No ! Merkel will simply boot GM out the door and GM will lose even more than they already have . GM has no pull in the EU / UK anymore and in fact hasn’t since the SAAB debacle . No thinking person there trusts GM worth a _____ . For good reasons if’n you ask me .
I’ll stick to my original idea about King’s presence . I think he’s there to shutter OPEL once and for all and thats his only purpose for being their .
GM can’t be foolish enough ( or can they ? ) to not know what the prevailing attitudes about them are in the EU/UK
BTW don’t be too surprised if Vauxhall gets the axe as well
March 21st, 2012 at 6:04 pm
tj #24
Can Merkel do this,ya think and would it be wise? With so many jobs a stake, even the most powerful has a weak point. Times are changing and this may be their time. I appreciate looking at views flip-side of mine.
March 21st, 2012 at 6:07 pm
TheDetroitBureau has Marchionne saying retructuring in Europe will take two years. Muddling Through seems to be their way.
http://www.thedetroitbureau.com/2012/03/marchionne-sees-%E2%80%9Cpainful%E2%80%9D-changes-for-european-auto-industry/#more-48261
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Anybody else noticing new Acuras on the road? This area is crawling with them.
March 21st, 2012 at 6:21 pm
pedro,(not auto related)
I love visiting the Keys. My fav. is Knights Key,just south of Marathon. Walking the bridge every morning is next to heaven for me! I know the Florida drive is a long one,but I sense you don’t stray far from home. Why? Do you fish often and have a boat? And if you don’t mind me asking,what do you do for a living?
March 21st, 2012 at 6:48 pm
I do mobile paramedical exams for insurance applicants and have to drive a lot, here the roads are good but the distances are kind of long, the last thing I want to do on weekends is drive some more, besides the only road into the keys(US1) gets pretty busy on weekends, with an assortment of clueless tourists and good ole boy locals with their pickups pulling them boats, and to be honest I prefer going north, a lot less traffic and testosterone levels. Once you get there supposedly is very relaxing, but so is the West Coast, I gotta a couple of little quiet getaway spots that make you think you’re on some tropical isle.
March 21st, 2012 at 6:49 pm
I wonder if vodka is good for my car, will it make it go strong or will it stammer all over the place?
March 21st, 2012 at 8:03 pm
The delay of the ZL1 is that so they can find the missing 71HP so they can out trump Ford and the GT500.
Here’s one TJ will love. I read on Blastr.com (sci fi site) That his hero Elon Musk is saying he can send you to Mars for 1/2 a billion bucks. No word on how much to bring you back.
March 21st, 2012 at 8:47 pm
I have to agree I think the future of Opel is the same as SAAB. There is no need to keep it, GM owns the designs, they can let Opel go and build a new future with PSA in Europe. If GM plans to help France with one of their Auto makers and drop the German one…….. thats a pretty good card to play. I doubt if VW, BMW or M&B wants the extra capacity. Fiat could be the only one dumb enough to dive in.
GM wants to spin them off, not shut them down. Just like SAAB.
March 22nd, 2012 at 2:46 am
The European unions are afraid GM will effectively liquidate Opel and Vauxhall (although Vauxhall doesn’t really exist anymore anyway—it’s GM UK), and simply keep the plants they want to manufacture Chevrolets (and maybe Buicks) for the European market. They want assurances that GM will keep selling Opels and Vauxhalls in Europe and not switch to the possibly more popular American brands. They not only want to export cars from Europe to other markets, they specifically want to export Opel-branded cars. They do not want Opel or GM UK to export cars badged as Chevrolets, Buicks or Holdens. It’s partly blinkered nationalism and anti-Americanism (never mind that no-one in most export markets has heard of Opel or Vauxhall, and those that do remember them only as cheap lemons; while Buicks are remembered as big expensive American cars driven by doctors, diplomats, cardinals, princes and emperors), and partly paranoia that if they do well exporting Buicks or Holdens, GM will switch production to the biggest export market (as they did with the Regal). They blame Opel’s problems on a 60-year old American conspiracy to eradicate the German operations. They point to the introduction and success of Chevrolet in Europe, to the purchase of a half-stake in VM Motori and the establishment of an Italian diesel-engineering center, to the renaming of the Austrian and Hungarian powertrain facilities under the GM Powertrain rather than Opel Powertrain banner, to GM Manufacturing Poland, to the manufacture (rather than importation) of Opels by GM Russia, all as evidence that “the Americans are out to get us.” They say it is only the Americans who are stopping them from making money, that a German should be running GM, and then Opel would make money like VW. That forget that most of VW’s money comes from Audis, Lamborghinis and Bentleys built in China, Slovenia, Italy, England and Hungary, not Germany. That a declining population, the collapse of a real-estate bubble in Southern Europe (fuelled by expatriate Britons for whom a $600,000 2-3 bedroom cottage under the sunny skies of Spain, Portugal, Greece and Italy seemed cheap [house prices are not fuelled by demand but by how much banks are willing to lend, and British banks let people borrow 3-4 times more money than French or German banks]), and the collapse of manufacturing (for example 95% of “English” China is, once again, Chinese) escapes their notice.
March 22nd, 2012 at 8:42 am
#32, I think GM wants a similar strategy in Europe as it has in the rest of the world. ie Volume Brand, premium Brand and Luxury. In the US and China that’s Chevy (V), Buick (P) and Cadillac (L). In other places like Europe and South America I think it will be Chevy(V), PSA(P), Cadillac(L). Opel is not a premium brand and is not loyal to GM and Germany wants it’s brands VW, BMW and M&B to survive. My guess – GM will spin them (Opel) off as a single company. They can’t close it and they can’t get it to the right size. France will step in if Germany tries to prop up Opel.
March 22nd, 2012 at 8:57 am
#32 and you absolutely correct about the GM renaming or naming all those factories “GM….” they can easily send the motors and parts to PSA and the rest of GM. I wonder what John M. thinks.
March 22nd, 2012 at 9:04 am
@ dcars
OPEL has been in weeds going on 25 years now . Thats been plenty of time for GM to ‘ fix ‘ things if that was ever their intent . Vauxhall ( which still is listed as ‘ Vauxhall ‘ not GM UK in the UK ) has been in the weeds for even longer .
As to American brands ( GM ) in the EU/UK ? Well in all honesty and despite any pretense GM may be expressing the Euro/Brits DO NOT want them . Any of them . Period .
American brands have done more to distance themselves from potential EU/UK customers than they have here in the US what with lousy dealer service , horrible repair times , lack of parts availability etc .
So don’t go blaming the EU/UK for what is in essence GM’s problem that they’ve been cultivating for the last quarter century
March 22nd, 2012 at 9:13 am
@ Kit Gerhart
re; 2013 GLK
Ask and ye shall receive ;
http://www.autoweek.com/article/20120322/NEWYORK/120329976
Looks like it’ll be another GLK 350 4Matic for us when Franz’s lease comes up . With that even faster ( uh oh ) and better MPG engine under the hood . White again thank you !
Glad to see they didn’t mess with the looks too much as well
March 22nd, 2012 at 9:17 am
BWTM ( apologies B )
Looks like i’ll be keeping a few American autoworkers employed as well with the GLK production now coming to M-B’s US plant
Quadruple bonus !
Better HP . Better MPG , Still good looks , as well as keeping some of my money here in the good ol US of A
I’s a happy Benz guy 8)
March 22nd, 2012 at 12:58 pm
#36,
Thanks for the link.
Unfortunately, it looks like the diesel will come here only with AWD. but the GLK350 with the updated engine will still be sold with rwd. It will be interesting to see if the GLK350 sees the mpg improvements with the new engine that the E350 saw. Hopefully, it will, with some extra power to boot.
March 23rd, 2012 at 11:16 am
John Mc -
As a GM Employee, I have got to take offense to your statements: “Several hundred ZL1s have been built so far, but none of them released for sale. They’re still awaiting repairs back at GM’s plant in Oshawa, Ontario.”
They are not “awaiting repairs”, they are being evaluated. Your statement implies that all of the vehicles are bad and in need of repair but in fact, the letter to the dealers states: “All Camaro ZL1 models produced to date are currently being held by General Motors for a quality assessment.” Not for a recall, not for a repair, but for an assessment. This implies that there is still evaluation being performed (rumors are software related). There have been several hundred hours of testing done and you can be sure that everything mechanical is engineered to take the increased power of the powertrain.
#30
XA – Wrong, the Camaro does not need the extra horsepower to beat the Shelby ‘Stang, it has already proven that on the track (at VIR) and in Ford’s lack of response to a challenge at the ‘Ring. With the Camaro’s Magnetic Ride Shocks and Independent Rear Suspension the Muskrat’s live rear axle just can’t keep up on the twisties.
tj – Trailblazer not coming to the US…
You really think that we will produce the pickup here and not have it’s sibling the Trailblazer as well? I for one, hope it doesn’t come here (other than the diesel version), we already have too many SUV/CUV’s with the large, full frame Yukon/Tahoe, the large unibody Acadia/Traverse/Enclave, the small unibody Equinox/Terrain and now the really small Buick Encore.