Episode 938 – GM Ousts Ewanick, Volkswagen Investigates FAW, 2013 Kia Forte
July 30th, 2012 at 12:00pm
Runtime: 8:14
Joel Ewanick, the Chief Marketing Officer at General Motors abruptly left the company over the weekend. Volkswagen is investigating its Chinese partner, FAW over allegations that it illegally copied its technology. Kia just revealed the 2013 Forte which is also known as the Cerato in other markets. All that and more, plus a look at how GM engineers were able to cut weight from the all-new Cadillac ATS.
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This is Autoline Daily for July 30th. I’m John McElroy and here’s the latest news that has got the automotive industry talking.
GM OUSTS EWANICK
What in the world is going on at General Motors? As you may have heard by now, Joel Ewanick, the chief marketing officer for the company, was fired over the weekend. Many of you saw Ewanick on Autoline After Hours less than two weeks ago, and he sure didn’t sound like anyone who was just about to get canned. And yet GM has seen a string of executives abruptly quit or get reassigned just in the last month. Two weeks ago Karl-Friedrich Stracke, was yanked out as CEO of Opel. And Tony Posawatz, the vehicle line director for the Chevy Volt, suddenly quit at the beginning of the month. When you see this much turmoil in the executive ranks, you know something is not right deep inside the company. Here’s my Autoline Insight. GM CEO Dan Ackerson is now going to come under intense scrutiny, especially from Wall Street and institutional investors. The company is racking up unacceptable losses in Europe. It’s losing money in South America. It’s lagging behind its competitors in profitability and its stock price has taken a pounding. With no signs of improvement coming anytime soon, you have to wonder how long the board will tolerate the CEO’s lack of performance.
VW INVESTIGATES FAW
And it looks like Volkswagen is running into problems with one of its Chinese partners. VW is investigating FAW over allegations that it is illegally copying technology. According to the Wall Street Journal, VW management discovered FAW had plans to replicate its MQ200 transmission that they suspect was going to be equipped in a FAW model for sale in Russia. FAW also reportedly built a plant in China that is building cars with VW components without a license. Somehow I’m not surprised.
BRAZIL MAY DROP AUTO TAX BREAKS
And as the global sales slump is prompting some automakers to consider layoffs, governments are trying to strong-arm them into keeping workers on the payroll. The Brazilian government now is threatening to suspend tax breaks for automakers if they lay off workers.
FRANCE OFFERS GREEN INCENTIVES
And the French government is trying to boost sales with more generous incentives for electric vehicles and hybrids. EVs now get a €7,000 rebate, while hybrids get €4,000. And they’ll pay for these incentives with higher taxes on gas guzzlers.
2013 KIA FORTE
Longer, lower, wider. Sounds like a car advertisement from the 1950s, but in this case this applies to the 2013 Kia Forte, also known as the Cerato in other markets. It gets a brand-new body structure, sharp styling and a roomier interior, and a lineup of updated engines that promise best-in-class fuel economy.
GM PEDESTRIAN DETECTION
General Motors is developing technology to help detect pedestrians walking across the street. It uses Wi-Fi Direct, which is a peer-to-peer wireless standard that allows some smartphones to communicate directly with each other. Wi-Fi Direct is integrated with other sensors in the car, which allows the vehicle to detect pedestrians carrying a smartphone with Wi-Fi Direct. The company is also working on an app that will help vehicles with Wi-Fi Direct detect pedestrians.
Even though GM is in total turmoil in its executive ranks, as you just heard, farther down in the company the men and women who sweat the details on how to develop world-class cars are hard at work. We’ll show you one of the results of all their blood, sweat and tears, right after this.
CADILLAC ATS SHEDS THE POUNDS
General Motors has a well-deserved reputation for coming out with the heaviest cars in the business. Even though they ride and handle well and deliver competitive fuel economy, they’re typically hundreds of pounds — or even kilos — heavier than the competition. Well now GM is out to prove that it can beat the best. The new Cadillac ATS is about 146 pounds lighter than a comparable BMW 3 Series. And GM engineers were able cut that weight not just with more lightweight materials, but with some very clever engineering.
(Today’s Cadillac ATS lightweight package is only available in the video version of the show.)
I love the lightening holes that you see in so many components, especially the suspension links. They even took a kilo of weight out of the car just by going with smaller bolt-head sizes on the suspension attachments.
That wraps up today’s show, thanks for watching, we’ll see you tomorrow.
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Comments (33)
July 30th, 2012 at 12:15 pm
Peter DeLorenzo wrote today that he already has an idea where Joel Ewanick will turn up.
_________
Pedestrians. Some many months ago on this board we talked about using cell phones on people to signal cars. Obviously, the professionals were way ahead of us mushrooms.
July 30th, 2012 at 12:16 pm
Oh, and would somebody start inflating a dingy for seaman Ackerson?
July 30th, 2012 at 12:31 pm
My confidence in GM after hearing Joel Ewanick on Autoline was riding a high. The Board of Directors at GM probably could not understand Joel’s choice to pull advertising dollars from Facebook. Too Bad for GM, but one company’s loss is another company’s gain! I want to wish Joel Ewanick Good Luck on his future endeavors. General (Government) Motors is a ship heading for the rocks because no one is steering it with a clear vision towards the horizon.
July 30th, 2012 at 12:56 pm
While still a staunch supporter of GM (in general) , and specifically the new Cadillac ATS, here’s an observation that may actually warrant some thought: A consideration, and I haven’t seen any inclusion of this in any discussion (so far), has been the omission of consideration of the 1 series (BMW). I hope all these competitors haven’t had ‘Eyes Wide Shut’, and in aiming at the 3 series have forgotten that BMW may have something up their sleeve (for all those challengers)in the small sports sedan segment.
Of course my statement is pure conjecture (but probably does need to be kept in mind).
July 30th, 2012 at 12:58 pm
Why does everybody think that Ewanick got fired because of Facebook? Just like the Autoextremist said, that took some cajones and it maade a lot of sense. Just look at the hit that FB is taking on the Street. It just isn’t a good business model for advertising. Now for making Pages, posting articles, comments, photos and press announcements – it is great – and FREE!! Just look at how many FB Pages GM has out there that are posting and answering questions everyday! GM is far and ahead of all other companies when it comes to connecting with customers through FB and other Social Media outlets and adding to the annoying pop ups and Google Ads isn’t the way.
As I recall on here the “Chevy Runs Deep” was unanimously criticized and now Ewanick’s departure is GM’s demise?!? Unbelievable…
July 30th, 2012 at 1:01 pm
#4
BMW 1 series is in a totally different class than the ATS, but GM may have a competitor in the smaller Buick Verano especially with the 270hp Turbo 4.
July 30th, 2012 at 1:09 pm
Hey John, I know its unprecedented, but how about going back and renaming the episode Joel Ewanick appeared in on July 19th, “Two weeks notice”!
July 30th, 2012 at 1:09 pm
As the 3 series has ‘chunked up’ a little in the last iteration, the 1 series could evolve to what the ’3′ used to be; I say they’re a lot closer than you think. Not totally different IMO.
July 30th, 2012 at 1:22 pm
John, as an industry pundit, you’re riding a roller coaster!
July 30th, 2012 at 1:32 pm
What’s not right with GM also reflects on those leaving GM. Joel has been making lousy ads and I’m sure the others who left were under-performing. Akerson is only doing his job by getting rid of those people. GM is damn if they don’t and damn if they do.
July 30th, 2012 at 1:38 pm
Here’s another forum view mostly not in favor of Joel.
http://www.gminsidenews.com/forums/f12/gm-global-marketing-boss-ewanick-leaves-company-source-says-112561/
July 30th, 2012 at 1:52 pm
GM didn’t build that Cadillac ATS; the federal government built it. Oh wait! It’s true! Time for GM’s beneficial owners (the UAW) to replace both CEO’s. What’s good for GM is good for the USA.
July 30th, 2012 at 1:53 pm
I wish GM would get over the constant turmoil in upper management. I want the company to do well, and they have some good products, and a very promising one in the ATS. Somehow, though, I’d think all the turmoil would affect the morale of the worker bees designing and building the cars.
July 30th, 2012 at 2:00 pm
I was wrong. GM shakes up management every 6 weeks, not every 6 months.
I am not a Madison Av. man, were the ads and marketing that bad to get fired over? I thought the Superbowl ad was great.
Is FAW the only Chinese partner “borrowing” technology from their (forced)partners? Will the Chinese courts back VW or FAW?
July 30th, 2012 at 2:07 pm
@ #13
Agreed. The major problems with the constant churn at the top is: The new boss nas to get up to speed on the current and future projects; the new boss wants to change current projects which means lots of re-working for the worker bees; more corporate expense from the previous 2 reasons. The change better be worth it!
July 30th, 2012 at 2:26 pm
As of 2:25pm, PDL’s site says that he is revising the column and to stay tuned.
July 30th, 2012 at 2:34 pm
Truthfully, most buyers don’t give a crap about who is running what or who got canned or whatever, they just want a good product at a fair price that is not gonna fall apart as soon as you finish making the payments. Just sayin’
July 30th, 2012 at 2:56 pm
PDL now writes it had something to with the ManU sponsorship deal. Quote,
“But he also did something untoward, inappropriate and indefensible in the course of doing business that was deemed completely unacceptable. And because of that most of the goodwill Joel accrued at GM was lost overnight.”
I note that ManU cancelled its US stock floatation last week. I’ll stop there.
July 30th, 2012 at 3:33 pm
I love seeing the development that went into that chassis. It is nice to see the attention to detail in that BIW that no one will ever see in the finished product. That is true pride in engineering.
Although, I’m pretty sure the door seal guys went through some cringing about that scalloped sheet metal on the front face of the door seal opening – seems like a place for potential wind and water penetration through the secondary door seal.
Cheers,
Dave
July 30th, 2012 at 4:48 pm
If you don’t think anyone is watching what is going on inside GM,just look how the stock prices have dwindled over the past few weeks. Several top investors attribute todays decline to this last firing.
Kia joined the band-wagon of making existing models larger and larger over time. Believe it or not,there are some cars people believe are of perfect size. The old 3 series is a perfect example. Has any car ever gotten smaller as times pass?
July 30th, 2012 at 4:58 pm
NO!
July 30th, 2012 at 5:12 pm
pedro,here is a pedestrian related ditty right up your alley. A report stated today a four fold increase in pedestrian injuries and not because they were hit by an oncoming car. The injuryies were a result from people wearing ear buds or reading hand-helds were running into poles and objects like stationary cars! Why add unwanted pedestrian warning devices to junk up new vehicles? I say, just hit those A-holes! O.K…. just jar their senses a bit.
July 30th, 2012 at 5:28 pm
Yesterday I used the ATS site to build the most basic and affordable ATS suited to my needs. The price,incl. destination was just shy of $35K. If anyone knows what a GM discount would amount to,I would appreciate the info. I’m so… practical and frugal,I’ll have to convince myself that this treat for myself is the right move,but I remain on the edge. Kinda fun over all!
July 30th, 2012 at 5:57 pm
Ha! yesterday at Wal-Mart I got hit by a woman pushing a cart and texting, she rear ended me and now I have to see a proctologist!
July 30th, 2012 at 6:11 pm
pedro,using your words; maybe it would have been more gratifying if the rolls were reversed! Waddy-ya do’in shopping at a place that caters to mostly Chinese goods? Tisk-tisk!
July 30th, 2012 at 6:20 pm
Hmm…Ewanick goes on Autoline After Hours and get sacked by GM. Bob Lutz comes on AAH and announces that his board position at Lotus was done away with. Better confirm this week’s guest John!
July 30th, 2012 at 6:22 pm
Gee,Tony! Maybe McElroy is a bad omen!
July 30th, 2012 at 6:27 pm
As for the 2013 KIA Forte, it looks like it’s trying too hard to be a Civic. Too bad, really; KIA have–up until now–been designing some of the better-looking cars on today’s roads.
July 30th, 2012 at 6:41 pm
Cwolf, I went food shopping, besides where do you find American-made anything anymore? Try to find a toaster, or a TV or a DVD player, I wonder if we have EVER manufactured a DVD player here? Even the overpriced Apple and Bose stuff is made in China. I bought some Audio Tecknica headphones caused they were made in Indonesia.
July 30th, 2012 at 6:44 pm
O.K. pedro san.
July 30th, 2012 at 7:43 pm
Ford no more in Australia and there goes the Falcon! Guess if I were an Aussie I’d become a GM fan faster than Ford could import their junk from Asia!
July 30th, 2012 at 8:57 pm
#23
cwolf – Do you get GM Employee pricing (from a relative) or Supplier Discount? Either way GM adjusted the discount a few years ago from a set amount to a variable based on the popularity of the vehicle. Basically, very popular vehicles get little discount and vehicles getting ready to be changed/replaced get huge discounts. Let me know which one you get and I can get you the amount of the discount. Also, if you give me your build specs, I can get it even more exact. You can email me at tcbracing at gmail dot com.
July 31st, 2012 at 11:01 am
Listening to Joel on AAH was refreshing. Afterwards, I thought – boy, this guy gets it! There is hope for GM.
And then he gets sacked. Like it’s his fault GM has been losing money in Europe for 18 straight years, etc…..
GM doesn’t get it, but Joel does. He will land on his feet but they won’t.