Episode 242 – Chrysler Execs Quit, New Bidder for Volvo, G8 to Become Caprice Cop Car
October 5th, 2009 at 12:02pm
Runtime 7:12
Chrysler gets a big management shake-up as two of its top executives unexpectedly call it quits. Geely faces competition as Ford may have found a new bidder for Volvo. The Pontiac G8 is reborn as a crime-fighting Chevy Caprice police vehicle. All that and more, plus a talk with GM’s Bob Socia about what he’s doing to get rid of cheap interiors.
Transcript and Story Links after the jump . . .
Here are today’s top headlines. Two top executives abruptly quit at Chrysler. Ford may have a new bidder to buy Volvo. And the G8 will become a Caprice cop car.
Up next, we’ll be back with the news behind the headlines.
This is Autoline Daily for Monday, October 5, 2009. And now, the news.
Sounds like a disaster at Chrysler. In a stunning development, Peter Fong, who had just been named as CEO of the Chrysler brand, and Mike Acavitti, who had just been named as CEO of the Dodge brand have both abruptly resigned from the company. Now Fred Diaz will become CEO of the Dodge Ram brand, and Ralph Gilles will become CEO of Dodge passenger cars, and will still be in charge of Chrysler’s design department. Olivier Francois, who will also continue to run the Lancia brand, will also become head of the Chrysler brand. This news just broke and we’ll have more details tomorrow.
The Financial Times reports that an investment consortium in the United States is leading a bid to buy Volvo. Up to now, Chinese automaker Geely was the only known bidder. The American bidders, called the Crown consortium includes Michael Dingman, a former director on Ford’s board, and Sham Rushwin, a former manufacturing executive at Ford.
A report in the Globe and Mail out of Toronto says that Ford’s CAW workers represent its highest labor costs in the world. They are about $16 an hour higher than Ford’s plants in the US, thanks to concessions at the American plants and due to the weakening of the American dollar. The CAW says it will not agree to concessions until Ford makes commitments to keep Canadian jobs. Ford says it will not make those commitments until it gets concessions.
In Eastern European news, Ward’s reports that in the Ukraine, Dacia-built cars no longer carry the Dacia brand. The vehicles are still be built in Romania, but they’re sold as Renaults. The company made a similar change in Belarus last August. Previously, only Dacias sold in Russia were labeled Renaults. For now, it’s cheaper to source the cars from Romania than Russia, but that may change going forward.
If you’ve been holding your breath for a Chevrolet version of the Pontiac G8 you can breathe now, sort of. At a Police convention in, Denver, Colorado, GM announced that it’s bringing a full-size, rear-wheel-drive sedan to North America in early 2011 – problem is, it’s fleet-only. The Chevrolet Caprice Police Patrol Vehicle is built on the Zeta architecture and will offer a choice of either a V-6 or V-8 engine. Watch out Crown Vic.
Chinese automaker FAW just rolled out its top-of-the-line limousine, known as the Red Flag, or Honqi. Gasgoo reports that China’s chairman Hu Jintao gave it its first public preview in a review of Chinese troops. This hand-built competitor to Rolls-Royce is powered by a 6.0-liter V-12 with 400 horsepower and is priced at more than $400,000. Not a bad looking car. Kind of looks like the front end of an old Morris grafted onto a Bentley Arnage. And it sure looks better than the concept car FAW unveiled earlier this year.
Coming up next, I talk with Bob Socia, the new VP of Purchasing at GM, who talks about getting rid of those cheap interiors on GM cars.
Bob Socia is the new Vice President of Purchasing at General Motors, who recently took over from Bo Anderson, who had been running that operation, and so I asked him if we were going to see any changes with him in charge.
As part of its cost cutting efforts, GM Purchasing often ended up buying cheap components, especially for the interiors of GM cars. While that effort may have cut costs, it also drove customers away from GM. I asked Bob Socia if purchasing was now going to get away from that kind of approach.
In the recent past, suppliers told me they would not give GM their best technology because as part of its cost reduction efforts, after a year or two into a program, GM would bid that work out to other suppliers. And the original supplier would often see one of its competitors end up making something that it had designed. I asked Socia if GM would now keep suppliers through the entire life cycle of a program.
And that was my interview with Bob Socia, GM’s Vice President of Purchasing. And that’s it for today’s top news in the global automotive industry. Thanks for watching, we’ll see you tomorrow.
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Comments (41)
October 5th, 2009 at 12:12 pm
Chrysler doings: Gasp…
October 5th, 2009 at 12:18 pm
Sounds like good ol’ Bob says suppliers shouldn’t let go of their ankles quite so fast.
October 5th, 2009 at 12:26 pm
You know, those pix of the police car look more like a version of the Holden Statesman, rather than the Commodore/G8. Especially the C post.
But I may be wrong.
October 5th, 2009 at 12:30 pm
The G8 should not just be a police car. It was a bargain-priced practical 4-door with the mighty corvette engine. Even in today’s MPG-conscious age, there would be a far bigger market for this than for any Buick!
More nonsensical decisions from the geniuses (NOT!!!) at GM and their auto illiterate masters in Wash DC.
October 5th, 2009 at 12:32 pm
I’m not even sure if the police will like it. It needs to have adequate room etc. They preferred the old v8 crown vic land-barges over the slightly smaller Impala v6s by a 9 to 1 margin. The g8 probably has even less interior and trunk room than that Impala.
October 5th, 2009 at 12:34 pm
Yeah, take a look at the Holden website. It’s a rebadged Statesman, not a Commodore.
http://www.holden.com.au/vehicles/Statesman
October 5th, 2009 at 12:39 pm
Sorry John, but you’re just plain off your rocker for saying this FAW “Red Flag” is, #1 “Not a bad looking car” and, #2, “better looking than the Geely concept”.
Are you kidding me? I can’t get past that lame-looking front end. No way I’d be seen even posing next to a car like that.
Ugghhhh. Beauty certainly is in the eye of the beholder.
October 5th, 2009 at 12:44 pm
“Michael J. Brown Says:
October 5th, 2009 at 12:39 pm
Sorry John, but you’re just plain off your rocker for saying this FAW “Red Flag” is, #1 “Not a bad looking car” and, #2, “better looking than the Geely concept”.”
I had the exact same reaction as Michael, when I watched the video.
October 5th, 2009 at 1:06 pm
“Michael J. Brown Says:
October 5th, 2009 at 12:39 pm
Sorry John, but you’re just plain off your rocker for saying this FAW “Red Flag” is, #1 “Not a bad looking car” and, #2, “better looking than the Geely concept”.”
I had the exact same reaction as Michael, when I watched the video”
DITTO for me!
October 5th, 2009 at 1:12 pm
Is this the beginning of the end for Chrysler’s soft landing?
Maybe Marchionne needs to focus on getting Fiat and Alfa Romeo to the US market. They will generate excitement (and maybe some market share) as Fiats and Alfas, not as badged Chryslers and Dodges.
Chrysler’s engineers could make the necessary changes (mostly to emissions controls, safety features, and infotainment) quickly if they are allowed to focus on it.
October 5th, 2009 at 1:22 pm
Fiats are junk, just as much as Chryslers. Alfas are the poor man’s, unreliable, BMW’s. The “cute”, tiny 500 retrobox is ludicrously overpriced. I see NO product from Fiat or Alpha I would seriously consider.
The sooner Marchionne realizes that there was good REASON why Fiat had to quit the US market in defeat before (in the 80s), the sooner he will quit again now, and save us, the long suffering US taxpayers, more billions.
October 5th, 2009 at 1:25 pm
I wonder if Ford could drop that new V8 reported in Autoline last week into Canadian built Crown Vics. It’d see off the Chevy Caprice and pacify the CAW in one swoop.
The police prefer the Crown Vic for many reasons. And if the Crown Vic really has to be replaced, what about that Carbon Motors car? Surely that’s a lot better than a modified G8.
October 5th, 2009 at 1:32 pm
The mainstream Fiat “B” and “C” cars are competitive in Europe where the competition is stiff indeed. It would take much more expensive fuel in North America, though, for them to sell here. Today’s Fiats are not like what they were selling the the 80′s, just as today’s GM cars are not like what they were selling in the 80′s.
October 5th, 2009 at 1:37 pm
As I said earlier the Pontiac G8 deserves a better fate that just being a “Police Car”.
I have one and it is our daily driver but it has MUCH less interior room than our previous car a 1996 Buick Roadmaster , the same car as the Impala SS also known as the Caprice police car. Police may not like it , not enough interior room.
We need the car to be available to the general public and to have a Manual 6 speed LS3 option on the Impala SS.
I agree with Bob Socia that GM interiors are bad. I had a 2001 Corvette Z06 and now I have a 2008 Z06 with the 2LZ interior and my above mentioned G8. Why is it that the interior material is SO prone to scrapes and picking up skin material and oils and looks awful after a few uses. Why can’t / wont GM come up with a more user friendly material that doesn’t show as much skin contact and scrapes as this material.
Thank You
October 5th, 2009 at 1:39 pm
Kit,
I am aware fiat sells a ton of cars in Europe, but you should know that they are “competitive” because they are Cheap and have cheap parts, so the repairs will not cost you an arm and a leg, and they are frequent!
Even if Fiats survive in Italy and in low-income Euro markets, they failed miserably in the far harsher climate of the US, and in the far more competitive US market.
I see no reason they, or any garden variety French automaker for that market, will succeed now, in a US market that is even more competitive, and a Euro-$ ratio that will just KILL most Euro makers, unless if they build their overpriced junk HERE.
PS both Fiat and GM cars are far more like the junk they sold in the 80s than you realize, and this is one major reason GM went broke, and Fiat had its own share of problems (and more in the future).
IF VW is considered an unreliable brand in the US, wait till FIAT and ALFA rear their ugly heads! They are 10 times worse!
October 5th, 2009 at 1:40 pm
it is no coincidence that VW is the ONLY Euro maker of mid-and low-priced cars that is still in the very competitive US market.
October 5th, 2009 at 1:43 pm
I agree with Nick Stevens. In Europe, FIATs are thw lowest-quality cars from the major nations there. Even SEAT of Spain (a VW Clone) and Skoda of the Czech republic (also a VW clone) are far better. FIATs have worse quality than even the low-ranked French makers Peugeot and Renault, who were never able to compete with the Germans.
Alfas may be more upscale than Fiats, but share the same quality and reliability problems, even worse.
October 5th, 2009 at 2:08 pm
Here we go again! GM is pumping up it’s lineup again with numerous models. Chevy offers the Aveo, Cobolt/Cruze, Malibu, Impala and now a police version of the Pontiac G8. Where is the Volt? I can see that GM needs the G8 as a flagship model for the Chevy Brand, so bring it back with a better name than the Caprice. Caprice is an old nameplate with a far from stellar reputation. The name “G8″ or even “C8″ is better than Caprice. GM should get rid of the Aveo once the Cruze hits the market.
This “G8 / New Caprice” is also perfect for Nascar. It displays muscle and confidences as it cruises the road without the Caprice nameplate.
Chrysler is a “Dead Brand Walking!” The Minivans, Jeeps and Ram Trucks are what keep Chrysler on Government Life Support. The Charger, Challenger, Sebring, and even Neon are names that need to live on but not as rebadged Fiat’s and Alfa’s. The New Challenger is Fanastic! Now do the same with the rest of the line up in each automotive segment. An “economical” Neon subcompact, a Sporty yet fun Sebring as a compact, The Dodge Charger and Challenger as “Hardcore” midsize vehicles, the C300 as their full size, and a “New Imperial” as their “Halo Car”! The Only Chrysler SUV’s that need to survive are the PT Cruiser, Journey, and a “New Full Size Durango”. The Nitro and Caliber are better off forgotten, and are better represented by Jeep.
Marchionne – Buono Fortuna! – Ciao.
October 5th, 2009 at 2:10 pm
The new chevy police car looks like a impala. I know it will be rear will drive, but the G8 is not that big. We have CVPI and they are junk and now we have one RT Charger, which has more room inside a bit smaller trunk and so far, 5800 miles, its nice. The impalas are very small inside with all the police equipment added. As for the CVPI having the new chevy to look out for? John must mean the Taurus the CVPI is done 2011
October 5th, 2009 at 2:31 pm
Nick,
Not everyone in Europe can afford to drive a BMW or Mercedes-Benz. That does not mean everyone else is driving “junk.” The car market is intensely competitive in the classes that VW Golf and Polo fall into, and still, neither the VW brands nor the Japanese tranplants dominate the market in Europe. Some cars are better made than others, and some are a little more reliable than others, but even the worst of today’s cars at not that bad.
The “far more competitive US market” you mention is not competitive at all in the classes of cars Fiat (and the French companies) make. VW is the only game in town if you want a front-drive sedan or wagon with a 4 cylinder diesel engine. The more expensive fuel gets, the more people will want such cars.
October 5th, 2009 at 2:34 pm
John,
Now that the deal between GM to sell Saturn to Roger Penske is dead. What about inviting Roger onto Autoline After Hours? I heard that Penske was in talks with Ssangsong and Renault to build vehicles for Saturn. Did Roger ever talk with Kia or Hyundai about building vehicles for Saturn? I would especially think that Kia would love to get it’s hands on those 350 Saturn Dealerships. Kia is going through a transformation and the Saturn Nameplate and Dealership Network might be their ticket to salvation and prosperity!
October 5th, 2009 at 2:38 pm
You know JohnMc. saying that Chinese car is “not a bad looking car” is like saying “the bearded lady at the circus, its not a bad looking woman” I am not judging you, if that’s your taste; you have my moral support (and only my moral support).
______________________________________________
This is why this country needs REAL stock car racing, now we have the Dodge Charger, the G8 and the Taurus SHO, which reminds me…
Apart from the Dodge Charger I seem around as police cars, I wonder when we are going to see a Taurus SHO police version as well, or at least I haven’t seem one. Hey JohnMc… Whatever happen to that guy (sorry can’t remember his name) that wanted to build cars exclusively for the police??
Finally, if Marchionne manages to pull off Chrysler into a succesfull company, that man will be my saint and i swear to pray for him (well, not really) but he will be close.
October 5th, 2009 at 2:54 pm
Alex Kajdi Says:
October 5th, 2009 at 2:08 pm
Here we go again! GM is pumping up it’s lineup again with numerous models.
What???? It’s a “FLEET ONLY” car (meaning that you can not buy one unless you are a police department. How is that pumping up it’s lineup????
October 5th, 2009 at 2:55 pm
“Kit Gerhart Says:
October 5th, 2009 at 2:31 pm
Nick,
Not everyone in Europe can afford to drive a BMW or Mercedes-Benz. That does not mean everyone else is driving “junk.””
Why are you telling me this? I stated that FIAT and the FRENCH makers make Junk, I did NOT state that “everybody else” makes junk.
ALSO, I NEVER stated that Merc and BMW are the only two non-junk brands, you are either not reading my post carefully, or you are intentionally building a “straw man” to tear down.
VW in Europe is rated far higher than in the US, and even, as I already stated, the VW clones at SEAT and especially SKODA, make high quality vehicles that are basically bargain priced VW clones of current or previous gen VW designs.
Have you ever looked up the failure stats of FIATS in Europe? they, along with Renaults, are at the BOTTOM of the list.
ALSO, WHY do you conclude that people have to buy Only Mercs and BMWs?
Are you under the illusion that Honda and Toyota are not allowed to sell cars in Europe? LOL. They even BUILD them there, and in the UK in particular, which has NO auto industry of its own since the 70s when British Leyland went bankrupt!
Could we get serious here?
October 5th, 2009 at 2:58 pm
“The more expensive fuel gets, the more people will want such cars.”
Apparently you are not aware that Honda and Toyota, even excluding their HYBRIDS, and the monumental MPG PRIUS in particular, and withouyt the extensive use of DIESELS in Europe, are selling far more fuel efficient cars int he US, and these are also WELL MADE and VERY RELIABLE cars too.
And if you think that the US is not the most competitive market int he world in cars, there is little sense wasting my time, this is getting ridiculous. Try to get some facts straight!
October 5th, 2009 at 3:02 pm
Kit:
Nick is absolutely correct.
Fiat will have to compete not only against Ford and GM in the US, and not just against Honda and Toyota, but also against HYUNDAI and KIA, who can offer prices similar to FIAT-CHrysler at far better quality, reliability and overall value.
It is striking that Chrysler and FIat got together! Instead of benefitting from each other, they are, respectively, the most unreliable, low-quality brands in the US and Europe respectively. (there are smaller brands in less developed Euro nations such as the Romanian Dacia-Renault, but except these, FIATS are at the bottom of Euro reliability stats just like Chryslers are at the bottom of the US stats.)
October 5th, 2009 at 3:04 pm
I think the new Caprice should be called the G28.
October 5th, 2009 at 3:36 pm
Nick Stevens wrote,
“Are you under the illusion that Honda and Toyota are not allowed to sell cars in Europe? LOL. They even BUILD them there, and in the UK in particular, which has NO auto industry of its own since the 70s when British Leyland went bankrupt.”
I mentioned the Japanese transplants in my post, if you’d bothered to read it. Also, I’m aware of what happened to BMC/British Leyland/Rover. Also, I am completely aware of VW’s ownership of Skoda and SEAT, and their making similar cars under those names. I didn’t accuse you of saying that M-B and BMW were the only non-junk car brands in Europe, but you sure seem convinced that the German brands and maybe the Japanese transplants are the only non-junk brands. I know people in the UK who have Peugeots and Citreon, which they like and which server them well, even though VW’s in the same class may be better.
The US is the most competitive car market in the world for PICKUP TRUCKS, LARGE SUV’s, and what Americans call MID-SIZE SEDANS but everyone else calls large sedans. We are NOT the most competitive market for anything else, especially hatchbacks, small sedans and wagons, not even close.
October 5th, 2009 at 3:41 pm
sorry, I mis-spelled Citroen in my previous post.
October 5th, 2009 at 3:55 pm
This ones better,that ones junk……..It don’t mean nuthin.People will buy what they can afford,and what they perceive as being “better”.Quality surveys should be done a year after purchase,then maybe the tables will turn for the better on some brands.
As far as GM hawking their new found “quality interiors”,we’ll see how far that goes.They (GM) are so clueless to what the people want it’s going to be fun to watch them spin their way out of more trouble.I do have faith in gm to do one thing,and thats to screw themselves right back into the ground.
Ford and the CAW………close the damn plants and that will take care of those union bums.
October 5th, 2009 at 4:35 pm
I like the interior in my ’06 Malibu Maxx just fine. The seats are comfortable, the instruments are easy to read, and the controls are conveniently located. The plastic on the doors is hard, but so what? I wouldn’t want to pay even an extra $5 for soft plastic on the doors, because it doesn’t make any difference, and what’s there looks just fine.
October 5th, 2009 at 5:12 pm
Kit,
I tend to agree with you up to a point on the cheap interiors. It really doesn’t make a lot of difference whether it’s hard plastic or soft plastic, but the soft plastic sure does LOOK better and more expensive. Like you, I would not pay a great deal of extra money for the interior flash, but I do prefer something that doesn’t look like my daughter’s plastic toys.
I do agree with you about what you said about the competitiveness of the US car market vs the rest of the world.
@ G.A
“This ones better,that ones junk……..It don’t mean nuthin.People will buy what they can afford,and what they perceive as being “better”.Quality surveys should be done a year after purchase,then maybe the tables will turn for the better on some brands.”
Couldn’t agree with you more! SOme brands do suffer from poor manufacturing initially which tends to make them look less reliable than others, but take a look at these same cars a year, 5 years, or ten years down the road and I suspect the tables would turn on many brands!
@Jim
“It is striking that Chrysler and FIat got together! Instead of benefitting from each other, they are, respectively, the most unreliable, low-quality brands in the US and Europe respectively. (there are smaller brands in less developed Euro nations such as the Romanian Dacia-Renault, but except these, FIATS are at the bottom of Euro reliability stats just like Chryslers are at the bottom of the US stats.)”
See above where I concurred with G.A. Despite stats, Chryslers are some of the best and most LONG LASTING cars you can buy! Toyotas are supposed to be so great, and in initial surveys usually rank at the top. But what about all the rusted out frames we’ve been reading about in Toyota pickups that are less than 10 years old???? I don’t see anything like that about Dodge pickups!
And for those who may not remember, back in the 60′s and 70′s, Chryslers were some of the most finely engineered cars in the entire world! Not saying that’s true today because Daimler about killed them off, but they do have a legacy of excellance that with any luck is still alive and kicking!
October 5th, 2009 at 5:44 pm
The new Chevy Caprice is not a G8, it’s a much larger vehicle. I think it shares maybe the front doors, the front substructure and dash, major powertrain and suspension components, fuel tank, and that’s it. Their are basically two different sedans built by GM Holden off the Zeta platform. The standard VE model is sold as the Holden Commodore/Calais, Pontiac G8, Chevrolet Lumina and Chevrolet Omega. In addition there is a lwb WM model with unique sheetmetal built primarily for export and sold as the Holden Statesman/Caprice, Chevrolet Caprice and Daewoo Veritas. A reworked version of the WM is built in China as the Buick Park Avenue, and another as the Bitter Vero. The VE is around 4.9 m/103″ long, depending on grille and bumper design. The WM has a 94 mm longer wheelbase and is 260 mm longer overall. Take a good look, the Caprice has a different 6-light greenhouse, a completely different C-pillar, a longer rear end with a larger trunk, a wider rear door, and if you look closely even different front quarter panels. The VE has about 107 cu-ft of interior room, the WM 112 cu-ft, more than the Crown Vic, more than the Town Car, more than the Roll-Royce Ghost. Externally it’s about the same size as the Audi A8L, VW Phaeton lwb and the new Hyundai Equus. The Lucerne is not quite as wide, the MKS a little wider, but since the WM is rwd and can shift the front wheels further forward, there’s a lot more room, especially leg room.
October 5th, 2009 at 6:28 pm
That hurts to only see the G8 come back as a police car. And it hurts to hear it named a Caprice. I think there could have been a better solution to this as I have written in my blog at the link below.
http://bmfuller.wordpress.com/2009/10/05/how-the-rebirth-of-the-pontiac-g8-should-have-been/
October 5th, 2009 at 9:00 pm
I still think there are a lot of people out there who would be more excited about buying a Fiat than a Fiat with a Chrysler or Dodge badge on it. Most Americans already know about Chrysler’s quality woes, but know little about current Fiats.
Salvador G: The guy’s name is William Santana Li and the company is Carbon Motors out of Atlanta, GA. Most of the executives are ex-Ford guys.
October 5th, 2009 at 9:15 pm
That should be 4.9 m 193″ long for the VE
October 5th, 2009 at 9:16 pm
Again I have to say, this is not the G8, but a larger rwd car using a longer version of the same platform.
October 5th, 2009 at 9:50 pm
Thanks John V. it was hard to remember of the top of my head, but yes; I would like an update on Carbon motors making exclusive police cars.
October 6th, 2009 at 12:37 am
GM to make better interiors? Gasp – what a concept! Surely customers, dealers, focus groups etc., must’ve been saying this for years. Still doing it though, their newest – the new Camaro – exterior looks OK, but to my eyes, the dashboard looks atrocious, and is a dealbreaker for me!
October 6th, 2009 at 1:04 am
Very few Caprices/Statesmen are sold in Australia. Most are exported to the Middle East to be sold as Chevrolet Caprices, a few go to Daewoo, a few to HSV to be made into the Grange and Senator, and a handful to Bitter to be made into the $100K+ Vero.
Now that they’re not building the G8 for Pontiac anymore, Holden is building them in LHD and badging them as the Holden Commodore SS-V Special Edition, not just as a sedan, but wagon and pickup as well.
October 6th, 2009 at 1:10 am
Sorry, the Senator is HSV’s luxury VE, the lwb WM model is only the HSV Grange.