Episode 932 – Pelata Out at Renault, July SAAR Numbers, Maruti Suzuki Labor Strife
July 20th, 2012 at 11:21am
Runtime: 8:00
Patrick Pelata is out at Renault-Nissan. The former COO resigned after a botched espionage scandal last year. The July SAAR numbers are in and they’re up 20 percent from last year when the Japanese tsunami put a damper on sales. GM announced the Chevy Trax will be built in Mexico later this year. All that and more, plus a peek at the latest episode of Autoline This Week!
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I’m John McElroy, welcome to another episode of Autoline Daily. It’s friday, Friday, FRIDAY, the 20th of July, 2012. We’re glad you could join us.
PELATA OUT AT RENAULT
As you may recall, Patrick Pelata, the Chief Operating Officer at Renault resigned from his position last year because of a botched espionage scandal that led to three employees being wrongfully fired. Pelata was assigned another job within the Renault-Nissan alliance but now he is leaving the company altogether. In an email to Bloomberg, Pelata says he’s jumping ship because “there’s no job for me in sight” and he is unable to participate in any operational activities. Pelata plans to join a California technology company but it’s not known which one.
JULY SAAR NUMBERS (subscription required)
This month’s SAAR or seasonally adjusted annual rate in the U.S. is expected to hold steady. WardsAuto forecasts July’s SAAR will be 14.1 million units, with sales coming in at 1.17 million units, which is nearly a 20 percent increase compared to 2011. Last year sales were down because Japanese automakers had low inventories due to the earthquake and tsunami that disrupted production.
VIVA LA CHEVY TRAX
Yesterday GM announced it will build its Chevy Trax and a new generation of small pickups at plants in Mexico. The Trax will be unveiled at the Paris Motor Show in September. It will be available in the Mexican market in the fourth quarter of this year. The Trax shares a platform with the Aveo and Sonic subcompacts and will be sold in 140 countries, but not the United States, Reuters reports.
ESCAPE RECALLED… AGAIN
For the second time this week Ford is issuing a recall on its popular Escape small SUV. This time around the callback is to fix a fuel line on Escapes with the 1.6-liter engine. They can leak fuel onto the engine, which, obviously, can cause a fire. The Dearborn automaker says Escapes with other engines DO NOT have this issue. The recall affects 11,500 vehicles in the U.S. and Canada, but only 4,800 of them have been sold to customers. The rest of the recalled Escapes are on dealer lots and can be fixed before they are sold. The previous recall was to modify carpet that could interfere with braking.
MARUTI SUZUKI LABOR STRIFE (subscription required)
Maruti Suzuki, India’s largest automaker, is under siege. The Wall Street Journal reports workers rioted at its factory in Manesar, in the north of the country. The plant employs about 3,200 people on the assembly line and is home to some of the company’s most popular models including the Swift hatchback. Understandably, production has been halted. The organized mob attacked plant supervisors, smashed windows and started a fire. One company official was killed. Some 1,200 police officers were called in to quell the violence. Labor issues have been simmering at Maruti Suzuki for at least a year. It’s unfortunate things are boiling over now.
After the break, a little sample of this week’s episode of Autoline. Stick around . . .
AUTOLINE THIS WEEK
This week’s episode of Autoline is all about brands. And the big question is which ones are doing it right and which ones are out of their minds? To help me get to the bottom of things I’ve called in a few experts. My guests include Christie Nordhielm, Marketing Professor from the University of Michigan; Peter De Lorenzo, Editor-in-Chief of Autoextremist.com; and Michael Robinet an analyst with IHS Automotive. Here’s a little taste.
As always, you can check out the latest episode of Autoline This Week on our website, Autoline.tv. Of course it’s also available on YouTube if you prefer to watch it that way. Also, you can always download it as a podcast so you can watch or listen to it at your convenience.
And that’s a wrap for today and the week as well. Thanks for watching and I’ll see you on Monday.
Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog and WardsAuto.com
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Comments (16)
July 20th, 2012 at 11:38 am
I put a couple of ATS links (they were removed); sorry I didn’t know I wasn’t allowed to post them.
July 20th, 2012 at 11:39 am
Oops, now they are back; I apologize again for unnecessary posting.
July 20th, 2012 at 1:10 pm
They don’t call it the Escape for nothing.
July 20th, 2012 at 1:16 pm
John, Your backgound is creeping me out. As it evolves and that pietre dish culture starts and completes it’s growth cycle—– is hard to take, if this is some health issue you have, take care of it!!!! Mark
July 20th, 2012 at 1:16 pm
I agree with Christie Nordhielm, Marketing Professor from the University of Michigan concerning the featuring of technology in the advertising of current vehicles. As she said these technology will probably be obsolete in the next couple of years. I have written several times in the past that OEM’s should consider allowing an open source color display panel in the IP of their vehicles which allow connectivity with driver’s smart phones and other smart devices. The current cost of the average sedan is in the $30K range. I would rather see OEM’s partner with Internet and Telecommunitcations provides so that our smart devices can easily be integrated and displayed into driving experience. I realize GM has invested a tremenous amount of money and resources into OnStar but what if you were able to purchase a OnStar subscription via an APP on your smart phone and integrate it into any brand of vehicle in the same way as a smart key works?
The Resources the drive purchases could be carried from one to one vehicle seemlessly by registering those vehicles VIN with the subscription provider. The same idea could be used for Garmin and Tom Tom. You would not need to carry a GPS device from vehicle to vehicle just your smart phone.
July 20th, 2012 at 1:27 pm
Hey! Recalls are a form of advertising, I had know idea Ford was putting a 1.6 liter in the North America Escape. Now I know, and after going to the website, I see all the Escape engines are below 2.5 liters. Way to go Ford!
July 20th, 2012 at 3:17 pm
Hi John,
In response to the Escape Recall, you did not mention what Ford was doing to aid their customers. Your reporting on the first half of the story was correct. However, the rest of the story is how Ford is handling the scored fuel lines.
Customers will have there Escapes” picked up and given a loaner. I applaud Ford for there quick and proper handling of the recall. I am not a Ford owner, but if this is how they value and appreciate their customers, I just might buy an Escape.
thanks, Art NJ
July 20th, 2012 at 3:26 pm
cartech. Here’s a link to a Gigaom story on what Honda is doing. Note this paragraph on the system’s reliance on smartphones…
“The main entertainment features of HondaLink will lean heavily on the driver’s smartphone, not just for its lifeline to the Internet, but to actually host the applications. Aha[Honda's system] uses a hybrid platform model: Its operating system lies in part in the dash, in part in a smartphone app, and in part in the cloud.”
The link,http://gigaom.com/mobile/honda-enters-connected-car-race-with-some-help-from-smartphones/
Also, I am using the new Nexus7 tablet from Google. It has a very sharp screen, can be connected to my radio through the AUX, and if it had 4G/LTE connectivity would be all I need in the car. There is no way in Highland Park that the carcos will be able to keep up with silicon tech. They need to make a veritable docking station for what owners already have. (my Nexus only cost ~240, delivered)
July 20th, 2012 at 5:46 pm
@ #8
I agree with you HtG. The automakers are trying to figure oure how to justify charging customers for less. Radio / Nav / DVD are profit producing accessories. A screen and interface would also make it less attractive to thieves.
July 20th, 2012 at 5:48 pm
We could use some of that Maruti Suzuki spirit on Wall St.!
July 20th, 2012 at 8:26 pm
W.R.T. this weeks autoli9ne.com, did you mean “Dilution” or “Diluting” in place of “Deluding”?
July 21st, 2012 at 10:42 am
#11 I watched Autoline and both were used, implied and applied: by diluting the brand (with weak efforts), and deluding themselves that all was well, these tactics yielded the mediocre results that came to pass. It was a very astute observation by Peter (and prophetic to some of the brands that are slipping).
July 21st, 2012 at 8:19 pm
Chuck, I don’t see any link to the ATS and couldn’t find anything on my oun. Can you help me out?
July 21st, 2012 at 9:03 pm
SAAR hold steady? Hmmm…let me think; summer family vacation or car?,home sales(new and used)slightly gaining,so can a car be afforded,too?,cloth kids for new school year or new car?,China worstening and Europe car 6% car sales dip should tell ya how good things are going there. Hmmm…,I don’t think so!!!
July 22nd, 2012 at 5:55 am
cwolf, yeah they took my links out (again); you can find the links in this Cadillac forum, here:http://www.cadillacforums.com/forums/cadillac-ats-general-discussion-forum/264819-driving-ats-tomorrow-post-questions-pic-5.html
Hopefully this is allowed. Post 63 and post 64
July 22nd, 2012 at 7:16 am
Thanks Chuck and enjoy the morning!