Episode 999 – Ford to Shutter Plant, Peugeot Aid in Dispute, Hyundai Debuts Crossover
October 24th, 2012 at 11:47am
Runtime: 7:05
As Ford continues to feel the sting of Europe’s economic woes, it looks like one factory may be on the chopping block. Peugeot is poised to receive French aid unless a Volkswagen stock holder can convince the European Commission otherwise. Hyundai debuts a new crossover at the Sao Paolo Motor Show. All that and more, plus guest host Peter De Lorenzo explains why Corvette is laying out a step-by-step plan on how NOT to launch a sports car.
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Hello sports fans, I’m Peter De Lorenzo, the Autoextremist, filling in for McElroy the next couple of days here to confirm that, as baseball begins its World Series tonight in San Francisco, that we are all Tigers now… or at least here at Autoline HQ. Anyway, go Tigers and now the news…
FORD FEELS EUROPE’S PAIN
And we’ll start over in Europe where Ford may be ready to make a cost cutting move by closing its Belgium plant that makes Mondeo sedans and S-MAX minivans. The Wall Street Journal reports that the company, which lost over a half a billion dollars in Europe the first six months of 2012, is ready to close the 48-year-old Genk facility located just outside the capitol of Brussels idling as many as 4,300 workers. No official announcement from Ford just yet.
VW STUMBLES, KEEPS SMILING
Meanwhile, the company which seems to have been immune to the world recession — Volkswagen AG — hit a bit of a snag, Bloomberg reports, as profits dropped 1.6 percent for the first 9 months of the year. Despite that downturn, the company is still optimistic that it will not only match last year’s operating income of $14.6 billion (11.3 billion euros) but will also beat 2011′s sales and auto delivery numbers.
PEUGEOT AID IN DISPUTE
While the numbers may be down at VW, times are a little bleaker at the continent’s second-largest automaker, Peugeot. So bad that the French government has guaranteed the company $9 billion (7 billion euros) of new bonds in exchange for influence on both the board of directors as well as a special outside committee that oversees Peugeot’s operations. However that may not be a done deal. VW’s second-largest stockholder opposes the aid and will ask for a European Commission review of the matter.
GM CONJURES MAGNESIUM MAGIC
General Motors is testing a new process to use lightweight magnesium sheet metal in cars. Automakers have struggled to make magnesium sheet metal that is strong enough and doesn’t corrode. GM says its process allows the material to be molded into rigid shapes and it has a proprietary method to make the magnesium corrosion resistant. GM says using the material could lead to double-digit gains in fuel economy. Magnesium is 33 percent lighter than aluminum and 75 percent lighter than steel.
HYUNDAI’S HB20X DEBUTS
Hyundai revealed a new small crossover at the Sao Paolo Motor Show called the HB20X. Powering the car is a 1.6-liter four-cylinder with 128 horsepower that can be matched to either a manual or automatic transmission. The HB20X, which will be built in Brazil, is exclusive to that market and goes on sale next year.
Coming up next, a few of my thoughts on why GM should keep its lips shut about the new Corvette until it debuts at the Detroit show. We’ll be back right after this.
LOOSE LIPS SINK ‘VETTES
The new Corvette will make its debut at a special event in Detroit on January 13th, and between now and then I can assure you that we will be inundated with videos, “sneak” images and other pertinent attacks of Internet information from here on out, all designed to make enthusiasts salivate at the prospect of the first new Corvette in years.
And it will be all wrong, and on so many levels too.
The prevailing mindset proffered by sparkly image wranglers these days (and when I say “image wranglers” I am referring to advertising, marketing and PR operatives) is: 1. You must manipulate the playing field. 2. That means that absolutely nothing can be left to chance. And 3. Only we know the what, where, when, why and how of it all, and we will orchestrate to a fare-thee-well in order to accomplish our mission.
But do you really need to beat the anticipatory drums for one of the most iconic sports cars in the world? Do you think there’s a chance that A. Someone with even a shred of automotive curiosity wouldn’t have heard something about a new Corvette coming? Or that B. It wouldn’t be instantaneous news across the mediasphere the moment it was unveiled?
But if I were tasked to lead the launch of the new Corvette, I wouldn’t allow any teases of any kind. That means no early discussion of its content, no hints at what it will or won’t do, no emblem reveals, no engine spec disclosure, no design reveals in the shadows, no n-o-t-h-i-n-g.
Remember, this is the Corvette we’re talking about here. It is one of exactly two automotive nameplates in this business – the Ford Mustang being the other – that transcend all consumer groups in this country. Nearly everyone has some sort of personal Corvette story, or a remembrance of the car from some point in his or her lives.
I would venture to guess that if Chevrolet operatives had completely kept a lid on the new Corvette and released zero information of any kind, the resulting media frenzy would be spectacular, and if the new Corvette lives up to its billing, even more so.
Let this be a forewarning to the enthusiasts over in Dearborn who are feverishly at work on the next-generation Mustang. Pay attention to how Chevrolet is setting the table for the new Corvette and use it as a road map on how not to do it.
Remember that creating excitement does not mean controlling every last shred of information.
It means letting people’s imaginations and emotional connections run wild with anticipation.
And that’s the High-Octane Truth for this week.
By the way, for those of you who have been counting, this is Autoline Daily number 999. Tomorrow I will be honored to host the 1000th newscast. Quite a momentous occasion. So tune in tomorrow. And don’t forget that I’ll be hosting Autoline After Hours tomorrow night talking about advertising and marketing with Mark LaNeve, GM’s former ad chief now working for Ford’s Team Detroit as well as advertising journalist Jean Halliday. That’s it for now. See you tomorrow.
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Comments (35)
October 24th, 2012 at 12:11 pm
Why will there be a media frenzy if GM holds back until the big reveal? There barely is a traditional media anymore and cars aren’t the exciting new tech for people’s lives like they once were. I’d like to see Corvette get repositioned for a younger consumer; maybe a drawn out cyber tease is the way to do that.
Of course, I’m just trying to enjoy my lunch
October 24th, 2012 at 12:34 pm
Peter, agreed, anticipation is much more powerful than what we are getting about the Corvette. Love the show and the truth telling that you and the team provide for us “outsiders”.
Fritz
October 24th, 2012 at 12:37 pm
I suppose that I miss the draped showroom windows (back in the fifties/early sixties) when the new reveals were held in close secrecy, but I’m not so sure in today’s internet/instant news media, whether a secret (till reveal) is worth it. I know (or I think I know) that ultimately it doesn’t make much of a difference. And not casting dispersion’s, because I do value your opinion Peter, but you’ve already seen it (and you said it was/will be fabulous). Is that a leak to the privileged (you in this case); hate to see the have and have nots in battle for those first views (and other specifications) so that the ‘bench racing’ can start immediately. Just stating an alternate view (thanks Peter for making me think a little); I need that once in a while. ciao
October 24th, 2012 at 1:01 pm
The new Corvette is NOT the iPhone or the XBox (I think you can fill in the newest under $500 tech gadget of your choice). There will be no one waiting in line at Chevy dealers to buy it right off the truck. I think those who have the resources these days to sign over $60-70K for this toy may want to be teased about what’s coming. There also are those who want some upfront numbers to decide whether they might choose the last of the C6 or the first of the C7. Imagine being in that position of choosing the last 67 Corvette or the first 68 Corvette. I WOULD want that tease to help me make a decision. Either direction, as long as the Corvette is still competitive with the Porsche, Mercedes, and BMW’s of the world, Chevy will do fine however they choose to introduce it. Now Peter your analysis is more critical and important for GM as it tries to introduce the new Cadillac’s Chevy Impala, and Buick’s to the world.
October 24th, 2012 at 1:03 pm
No matter how badly Peugeot may or may not need the cash infusion from the French government, its dealer network can only pray Peugeot has the good sense not to reserve a seat for the French government in its boardroom. I know of no government on the globe that exists, in whole or in part, to operate a manufacturing company–a vehicle manufacturer no less! You don’t let a government run a car company–no matter how small their influence–for the same reasons you don’t just let any MacGyver wannabe defuse an explosive device, especially someone who says, “Oh that’s easy, anyone can do that!” Not that the French government has said such a thing, but surely they’re thinking that.
October 24th, 2012 at 1:09 pm
Went to Detroit to pick up a Jeep Cherokee (2000, last of the old box style with a straight 6) earlier this week. Had a chance to drive a rented Chrysler 300 V6. What a pleasant ride. It actually got 30 mpg at “spirited” highway speeds. The 8 speed transmission was smooth-shifting. Given the cost of an Acura or a Toyota Avalon (last 2 cars driven before this trip), Chrysler has a winner on its hands.
October 24th, 2012 at 1:11 pm
Great Job Peter!
Your commentary regarding the new corvette is spot on target. Chevy does not need to beat the drums for the new corvette, when revealed it will speak for itself.
That Hyundai HB20x sure looks like the discontinued Toyota Matrix to me.
How will Peugeot’s current bailout by the French Governmen affect GM’s agreement / investment in the European automaker?
October 24th, 2012 at 1:12 pm
There is a lot more buzz over an upcoming Apple product than any Corvette or anything on wheels anymore, folks.
October 24th, 2012 at 1:20 pm
I know the Autoline staff tends to to be buried neck-deep in bring us the latest news in and about the automotive world, so just keep in mind: The Detroit Tigers play baseball and this event, The World-Series, many people consider bigger than the 24 hours of Le Mans or The Belle Isle Grand Prix (not as colorful as the Dream Cruise!). It is held at the big stadium on Woodward. You may have noticed it on you way to GM headquarters depending what streets you take. Go Tigers!
October 24th, 2012 at 1:33 pm
Let me fess up, and admit that I ordered the new Surface tablet from Microsoft. Waiting for it is killing me. Microsoft said nothing about this product before they revealed it in Los Angeles over the summer, and it caused a sensation. Peter does have a point about just dropping a bomb on the media. No teases, just boom
October 24th, 2012 at 1:39 pm
I also think that Peter is spot on. I can remember the secrecy of years gone by and it really is a good idea IMHO – esp for iconic nameplate cars.
During the late 60′s, I was working as an intern photographer for a company that shot those pics for the car brochures (in Detroit) and the secrecy that took place even in delivering a car was astounding – armed security guards and all – that accompanied the enclosed truck delivering the car to the studio in advance – so that the brochures could be produced and would be ready for the unveiling.
h, and you did not have to be able to sign the purchase papers to want to venture down to the draped local showroom to see the unveiling – you went anyway – just to see it.
Can you think of a better way to get enthusiasts (even just dreamers) down to your showroom – to see the unveiling? Just plain good marketing all the way around IMO.
October 24th, 2012 at 1:48 pm
Personally I like the 24 hrs of LeMons better than the boring as molasses baseball, wow a Cubano that no likey beisbol, imagine!
October 24th, 2012 at 1:57 pm
The French government has been in the car business before. They owned most of Renault for a number of years, going into the 1990′s.
October 24th, 2012 at 1:59 pm
13 vye do you haff to brrink up zee vahr, Herr Gerhart?
October 24th, 2012 at 2:04 pm
” The big reveal” Those were the days.The anticipation of seeing your favorite car all new for the upcoming year.Yeah…..I remember,and miss that.Your spot on Peter.
October 24th, 2012 at 2:06 pm
10,
Let us know how you like the Surface, when you get it. It sounds interesting. I’m surprised MS hasn’t gotten into the “small device” market more seriously, and has allowed Apple and Android to dominate the smart phone biz, and tablets until now.
October 24th, 2012 at 2:13 pm
#4 C-Tech Good point I hadn’t thought of it that way. Still I look at the way the Camaro launch was mishandled for YEARS before it actually landed in showrooms with a collective MEH. Sure it has sold relatively well and its iconic and all, but there was NO excitement when it finally came out. It seemed old before it hit the streets, everyone had already seen it on the Interwebs, magazines in movies etc. etc. If you ‘tease’ the new Sonic it’s probably good marketing but we are talking cars people actually care about and yearn to own, tease them through anticipation and excitment without revealing. When I saw the first Camaro on the street I was “look one of those new Camaros, what street is Joe’s house on again?” When I see the new Corvette I should be saying “Holy F@#$ is that the new Vette?!, turn around!!!”
October 24th, 2012 at 2:16 pm
Whatever happened to the spy photographers hanging around the proving grounds?
October 24th, 2012 at 2:18 pm
Ford “teased” the current Fiesta for a year or two, with not a lot of success.
It’s probably harder to do an Apple-like introduction for a car, than for small devices made in China, but yeah, an Apple-like intro might be good for the Corvette, if they could do it.
October 24th, 2012 at 2:24 pm
The Fiestas that were originally sent to dealers were so expensive that the party was a bust. Americans are not ready to pay top dollar for a subcompact car.
October 24th, 2012 at 2:53 pm
I was on the Fiesta “mailing list,” and have a genuine Fiesta flash drive as a souvenir. I would have considered a Fiesta when I got my MINI, had the price difference been greater, and had the manual transmission in the Fiesta been a 6 speed, rather than a 5 speed with a top gear that felt too low.
October 24th, 2012 at 2:55 pm
Spoiler (okay I won’t) but everyone that doesn’t want to know what Chevrolet released (concerning the new V-8 that is going in the new ‘Vette’), for goodness sake (sarcasm intended), don’t go over to Autoweek (for their daily news letter).
October 24th, 2012 at 3:04 pm
DISCO, Peter! Save everything for the reveal. No teases.
Why follow the rest of the masses bowing to the pressures of the ‘instant gratification media’?
No, it’s no Apple reveal. And yes, iPhone reveals get a lot more interest and buzz than any Corvette reveal ever will, but that’s because of the difference in consumer demographics. Just about anyone can afford an iPhone, but not very many can afford a Corvette.
Bottom line, familiarity breeds contempt. And the last thing you want is for folk to be so familiar with the thing by the time it finally does drop that the reveal becomes nothing more than a useless formality.
October 24th, 2012 at 3:18 pm
Actually, what’s been revealed about the new Corvette, or its engine, isn’t anything unexpected. It will have direct injection. It will use cylinder deactivation under light load. It will have pushrods. Maybe the biggest news is that they will call it LT1.
To me, the interesting thing about the next Corvette will be what it looks like, and how they did with the presumed interior upgrade. We know it will be fast and will handle very well, and will be expensive, for a Chevy,
October 24th, 2012 at 3:26 pm
Ad #5: Please note that the Government of the State of Lower Saxony of the Federal Republic of Germany has been with its 20% equity stake the largest or one of the largest shareholders of the Volkswagen Group for decades. And a very influential shareholder during key decisions.
October 24th, 2012 at 3:28 pm
That autoweek article says that to owners, the most important part of the Corvette is the engine, and that they want them a V8. GM really wants the information out there, it seems. Did I read right, that there will be a dry sump option?
October 24th, 2012 at 4:04 pm
#26,
Yeah, the AW article says:
“– The LT1 will be available with wet sump and dry sump oiling systems. A dry sump system, typically used for high-performance and race engines, does away with the conventional oil pan and uses an oil reservoir mounted in the car.”
They make it sound like a dry sump system would be an option, like the smoker’s package or something. I can’t imagine them doing that, though. I’d think any dry sump oil systems would just be “standard” on special versions, like ZR1.
October 24th, 2012 at 5:51 pm
Hmmm… magnesium… isn’t that the stuff that ignites with abrasion? And can’t be extinguished? In bodywork? Have they discovered some new process for overcoming this (I would think) rather major drawback?
October 24th, 2012 at 6:49 pm
Magnesium is hard to ignite except in powder or thin sheet/ribbon, but yeah, it can’t be extinguished the usual ways. Surely, it will be alloyed with enough aluminum to make it not support combustion.
October 24th, 2012 at 7:26 pm
Peter DL, I disagree with your launch assessment, actually. As a Mustang guy I clearly remember going back to Ford’s website often to check for the next tease shot. The deal is that nowadays there’s tons of attention to detail in new cars and a way to raise awareness of detail changes is to provide the fans with some teasing. For instance, if nothing was said about the Corvette, the badge change would not get the coverage it’s getting now. I would expect that next they would show some interior shot of a premium material that hasn’t been used yet, or some close shot showing fit & finish. The big reveal should get all this information and then some other surprises.
October 24th, 2012 at 7:33 pm
Since when do the Vette and Mustang compete against each other, Ford has no competitor to go against the Vette, only Dodge does.
October 24th, 2012 at 11:41 pm
C TEK,I bought a 2001 Cherokee last month..that year would be the last of the old box style.
As for GM and the new Vette,there are lots of people waiting,wondering and looking forward to the C7′s arrival.Speculating up the wazoo..just visit the C7 section on the CORVETTEFORUM.COM.I personally welcome any news about the next Vette.Hell,I want to see it now!The c6 has been around since 2004 as a 2005 model and that’s way to long for a car to not change in this business.Yes,they tweaked it,gave it more power,added a few things but the body is essentially the same for 9 model years.I’ve had 3 c6′s and currently own an 08 6.2L 436 HP beast.I love the car but trust me,I want to SEE the C7!!!There are many spy shots out there of the car going thru it’s paces all covered in camo…there is the JALOPNIK rendering which some think is right on the money.Whatever the thing will look like,they needed to bring it out YESTERDAY not 3 months from now..but alas,GM being GM always late to the party…sales of the c6 have been down,down down the last few years for a few reasons,the c7 being one of them.The c5 sales suffered as well with the advent of the c6…it’s just how it goes in VETTE LAND!
October 25th, 2012 at 1:10 am
If this was the 999 episode then it should have been hosted by the man that made 999 famous, Herman Cain, now there’s an extremist and not of the automotive variety either. If you could pull him away from Faux News long enough.
October 25th, 2012 at 9:08 am
#32,
The C6 hasn’t been around very long, compared to how long the C3 and C4 were around. C6 was a relatively minor change from C5, though.
October 28th, 2012 at 11:09 pm
Regarding the new Corvette, perhaps it’s designers will finish the rear end of the car this time because they obviously ran out of modelling clay the last time.