Episode 927 – Head of GM Europe Steps Down, Mitsu Sells Plant for 1 Euro, In-car Coffee Maker
July 13th, 2012 at 12:00pm
Runtime: 7:55
The head of General Motors’ European operations, Karl-Friedrich Stracke, just stepped down from his position and will be replaced by GM Vice Chairman, Steve Girsky. Mitsubishi just sold its NedCar plant in the Netherlands for only one Euro! The new Fiat 500L will be the world’s first production car to come with a coffee maker. All that and more, plus a preview of Autoline This Week with Ralph Gilles, the President and Chief Executive Officer of Chrysler’s SRT Brand as well as the company’s Senior Vice President of design.
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Hello and welcome to Autoline daily, I’m Andrew Justus wishing everybody a happy and safe Friday the 13th. Let’s see if there are any black cats roaming the auto industry today.
HEAD OF GM EUROPE STEPS DOWN
The head of General Motors’ European operations, Karl-Friedrich Stracke, just stepped down from his position and will be replaced by the current Chairman of the Opel Supervisory Board and GM Vice Chairman, Steve Girsky. Stracke will take on different assignments at the company and report to CEO Dan Akerson. Blomberg reports GM leadership was unhappy with the turnaround effort by Stracke, even though he only started his position at the beginning of the year. Since 1999, GM has lost over $16 billion in Europe.
MITSUBISHI SELLS PLANT FOR 1 EURO
And speaking of struggling automakers in Europe, Mitsubishi just sold its NedCar plant in the Netherlands to bus maker VDL Groep for just one Euro! Yep you heard me correctly, one Euro. According to Reuters, the automaker agreed to such an outrageously low sales price since VDL won’t layoff any of the 1,500 employees. Mitsubishi expects to lose over $350 million on the deal. The plant, which builds the Colt subcompact and the Outlander, has a capacity of 200,000 units but was only building 50,000 cars a year. The company says it will now focus on expanding production in emerging markets.
FOCUS ST FUEL ECONOMY NUMBERS
We’ve got more numbers to share on the upcoming Ford Focus ST. Not long ago the company released pricing and horsepower figures; today it’s fuel economy. As a refresher, this high-powered hatchback delivers 252 ponies and 270 pound-feet of torque from a 2.0-liter EcoBoost engine. On the consumption front it should deliver 23 miles per gallon in the city and 32 on the highway, averaging 26 in mixed driving. That trumps its chief rivals including the Volkswagen GTI and Mazdaspeed3.
DEALERS MORE RELIANT ON SERVICE
Although some would say it’s the swindling department that is the moneymaker for dealerships, the Detroit News says dealers are increasingly reliant on the service department to bring in cash. Stores across the country took in nearly $81 billion dollars last year fixing cars. That figure comes from the National Auto Dealers Association. Meanwhile, Fiat ‘s global gross revenue in 2010 was only $75 billion dollars. Dealers are also looking to provide more competitive service. Doing more regular jobs like oil changes to bring more customers through the garage doors, and staying open on Saturdays in an effort to compete with independent shops.
IN-CAR COFFEE MAKER
We all know distracted driving is a bad thing, but cell phones and in-car electronics aren’t the only culprits. Opening the glove box or looking out the window can be just as dangerous. And you can soon add another hazard to that list: making coffee. Yes, the folks at Fiat are poised to introduce the world’s first production car with an honest-to-goodness espresso machine that heats, brews and dispenses. The new 500L will feature the optional java maker, which mounts between the front seats. Coffee cups, a spoon holder and a sugar dispenser complete the kit. Fiat’s “Coffee Experience” is expected to cost about €250, roughly 300 bucks and this has “lawsuit” written all over it. Someone call Ralph Nader, because this sounds unsafe at any speed.
It’s Friday and that means one thing . . . a preview of this week’s episode of Autoline is comin’ your way!
AUTOLINE THIS WEEK
John McElroy sits down with Ralph Gilles, the President and Chief Executive Officer of Chrysler’s SRT Brand as well as the company’s Senior Vice President of design. He’s also joined in-studio by Scott Burgess of AOL Autos and Chris Paukert from Autoblog. In the following clip they discuss the latest version of the company’s performance flagship.
As always, you can watch the entire episode of Autoline This Week on our website, Autoline.tv. Check it out!
Also today, the Autoline Network has another RoundAbout show in the offing. Tonight the crew will discuss a new pair of smart headlights that can dodge pesky raindrops. Plus, we’ll have an all-new segment with our safety advocate, Donald Bloomberry. Everything kicks off LIVE at 6:30 p.m. Eastern Time with Michelle Naranjo from Autobytel and Josh Lewis from RawAutos. Where can you find it? Why, Autoline.TV, of course!
Anyway, that’s all for today’s report, I’m Andrew Justus, thanks for stopping by.
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Comments (32)
July 13th, 2012 at 12:33 pm
service. My local Honda service dept has been remodeling their site for some months. It looks like there will be a reception bay, service counter and deluxe waiting area, just like the Nissan dealer. Waiting around at the Nissan dealer is like being in a hotel; big TV, newspapers, wifi, bagels and coffee. All complimentary.
Of course the price for all these amenities is that they try to get you to do all kinds of service that the OEM manual never contemplated. I’m not making this up. Plus, I just got billed for a repair at an hourly rate that exceeds the .4 hours Honda itself says the work should take(I’m no snitch, so figure it out for yourselves, Honda). Next time I get a code, I buy a reader and turn the bolts my self. From now on I keep changing my own air filters, and rotate my tires(as it seems I’m the only one certified to properly torque my nuts). For oil changes, I’ll let the pros at the do it for me at a loss. And I’m going to go test drive a Honda even though I have no intention of buying a new one; I feel licensed now to abuse a salesman.
Have I been perfectly clear, Honda USA?
July 13th, 2012 at 1:00 pm
I have to agree with Andrew, there’s no good reason to have your coffee maker in your automobile; it’s probably dangerous enough just drinking it, let alone brewing (and the like). I like my coffee as much as the next fellow but that accessory is nuts. IMO
July 13th, 2012 at 1:14 pm
Since coffee keeps you awake,Fiat will call this a “safety” device and the Miami Fiat dealer will include a year supply of Bustelo Cuban coffee with every 500L purchase.
July 13th, 2012 at 1:18 pm
It seems to me that you could, rather safely, create some sort of in-car unit that would take one of those “one-shot” coffee packets that are suddenly popular, and turn it into a cup of coffee.
One has to take into account the old maxim: “It is difficult to make something fool-proof because fools are so ingenious.”
July 13th, 2012 at 1:20 pm
Sell the plant for 1 euro? The catch of not laying off employees? How long do you have to keep the excess employees on the payroll?
The Focus ST is looking even better.
Dealers are making more on service by trying to stay open 7 days a week, abusing their technicians, and the fact that there are more older cars and trucks on the road. It is more and more difficult for independent repair shops to buy all the diagnostic equipment, and sign up for the computer access to program and update engine computers and other modules for all makes and models. The financial and EPA regulatory barriers to entry for a new shop are high.
Coffee maker for the car. A lawsuit waiting to happen, and a warranty nightmare. Bring the Fiat 500L to the U.S., but leave the expresso maker at home.
July 13th, 2012 at 3:08 pm
IN-CAR COFFEE MAKER
What about donuts? flapjacks? an in-car lawyer?.. you know, for the people I will definitely hit on my way to work, well; so long as the leather is water & coffee stain proof, I’m happy.
July 13th, 2012 at 3:19 pm
That Focus ST looks pretty good. It would clearly be on my shopping list if it were 1998, when I bought a GTi VR6.
July 13th, 2012 at 3:42 pm
I can already predict how bad that coffee is going to be. I don’t care if its brewed in an Italian car. I don’t care if the inservice coffee is Illy at $22 per pound. It’s going to be awful.
July 13th, 2012 at 3:52 pm
As I reconsider, perhaps the Fiat accessory department has not gone far enough! Add a mini-fridge were the glovebox would be! Add a panini press in the center console! Who needs a food truck?
July 13th, 2012 at 4:25 pm
The fiat coffee maker reminds me of a Seinfeld episode: “Coffee is supposed to be hot” … “ya, but not that hot”.
July 13th, 2012 at 4:33 pm
And don’t forget Tony in the trunk! Although the new Mexican made 500 has been pretty reliable, so I guess the problem with the Fiats is the Italian factory workers that build them sloppy and half-assedly
July 13th, 2012 at 4:34 pm
The Tata Nano will have a slurpee machine when it comes to the States.
July 13th, 2012 at 5:10 pm
> IN-CAR COFFEE MAKER
Hey, if that’s what a given buyer wants, go for it! As long as government doesn’t make this (or any other doodad) mandatory, I’m fine with it.
July 13th, 2012 at 5:22 pm
The Cherokee moose handling test controversy continues, now they’re actually warning people NOT to buy the Jeep as it is a dangerous SUV on the road, CR tested it when it came out and they ere critical of how late the traction control stepped in when it was needed.
July 13th, 2012 at 6:49 pm
@ #13
The “moose-handling” test was done by the Swedish version of Consumer reports with an overloaded (5 passengers, plus sandbags in the back) Diesel 2012 Grand Cherokee. It is a super rapid, double lane change manuver that the U.S. version of Consumer Reports does NOT do. The Swedes got the Grand Cherokee up on 2 wheels and did not like it (surprise, suprise). The lesson here, slow down in moose-crossing areas, especially in an overloaded suv.
July 13th, 2012 at 6:55 pm
Slow down in moose filled areas? really what if its not a moose but a moron cutting you off, or a tire laying in the middle of the road, or some other “surprise”? Also if you get a full size SUV it’s because you need the room for passengers and luggage. The CR report also made mention of the same problem, they truth of the matter is that anything on wheels with a high center of gravity and sloppy handling is a bad design, I don’t care who builds it.
July 13th, 2012 at 7:02 pm
@ #15
I understand you hate Chryslers, but those are the facts in the article. If you don’t like SUV’s, don’t buy them. This IS how they handle (unless you got serioous money for a BMW X5 or Porsche Cayenne). Slow down in the moose areas in Sweden.
July 13th, 2012 at 7:26 pm
Did you not understand my last sentence? Ford also had a serious SUV problem years ago,so did Suzuki, these vehicles should not be call Sport utility vehicles, there’s nothing sport about them.
July 13th, 2012 at 7:41 pm
Some years ago Keith Bradsher of NYT wrote a book about cars where he wrote about SUVs. He said that engineers at the companies didn’t like these things because the high center of gravity forced them to compromise the braking force, lest the cars get seriously discombobulated. It’s just poor physics for the road; I remember driving an early Ford Explorer/Rollover, and getting the heebie geebies as that thing leaned over when I turned the steering wheel. The wheels would go one way, followed a moment later by the rest of the car. No thanks, I’m not that good.
July 13th, 2012 at 7:55 pm
I had the same sensation driving some full size delivery van years ago with worn out suspension and really bad brakes, also my sister’s old Caravan with its sloppy handling and crappy brakes had me readjusting my driving even though I’ve always read that minivans are supposed to handle like cars.
July 13th, 2012 at 8:46 pm
SUV’s are not cars. They are ill-handling tall wagons That is why the SCCA won’t allow you to run them in their autocross events, except for a few “specialty” ones. like the GMC Typhoon.
July 13th, 2012 at 8:51 pm
So Kit, this “moose” test is valid and if the vehicle cannot pass it, it needs to be fixed or re-engineered, no way that SUV drivers are gonna slow down or lessen the weight of the vehicles.
July 14th, 2012 at 8:02 am
Could the Fiat 500L look any more like a Mini Cooper???
July 14th, 2012 at 10:45 am
I suppose a way to help pass the “moose test” is to use really low traction tires, and lots of roll stiffness in the suspension. I suspect not too man SUV’s have been “moose tested,” since such vehicles are a small niche in Europe.
July 14th, 2012 at 11:07 am
Well, there are plenty of moose in Canada and the northern states as well, in the rest there are deer and drunks, just the same, when they get in your way, you gotta take evasive actions, SUV’s not too willing to go with the plan.
July 14th, 2012 at 11:32 am
1.) SUV’s and minivans handle like the trucks that they are and should be treated as such, even with improved stability and traction controls
2.) Extreme manuevers will cause your SUV to roll over due to the higher center of gravity, regardless of brand. The ” moose test” in Sweden is a double lane change, meaning on a four-lane road,traveling in the far right lane, swerving across three lanes, over the center line into oncoming traffic, then immediately ducking back to avoid the oncoming SUV. Most U.S. DRIVERS aren’t skilled enough to execute that manuever safely in a car, much less an SUV, pickup, on van. Slow down, pay your insurance and try not to wander around drunk. Hitting the wildlife is probably a safer choice than heading into incoming traffic.
July 14th, 2012 at 11:35 am
Given the greater winter weather and more rural roads in Sweden and Finland they have higher driver education standards than the U.S. This is probably where the old F1 saying “if you want to win hire a Fin” (as your driver) comes from.
July 14th, 2012 at 11:39 am
@ #22
In the U.S., when Jeep was faced with this type of test failure, they changed the programming of the traction control to kick in sooner, thus reducing roll. I guess they will adjust the traction control progamming for Sweden and the Netherland as well in the Diesel Grand Cherokee.
July 14th, 2012 at 11:39 am
Hitting a moose is not like hitting a deer or a dog, them moose are big and heavy and will go through a windshield
July 14th, 2012 at 11:52 am
I would rather take my chances with hitting the moose than hitting an oncoming car and killing TWO families.
July 14th, 2012 at 12:13 pm
When I took some driver training, one lesson was the lane toss. You get up to 40mph approaching a gate in one of three lanes; as you enter the gate an instructor flips a light to indicate which lane you must switch to before the next gate. This is a daunting challenge, even in a Mazda3, but it is doable. Everyone in the class was able to do it, but no way that would have been so in an SUV or minivan. It’s a very violent move even when you know you’re going to have to make it happen. I doubt I’d be able to swerve out of the way of a big animal in the darkness, and I rely on looking far down the road, scanning the side of the road for kids, and slowing the shizzle down. I’m quite sure that if I were not paying close attention and expecting something to happen, I’d just duck and die. Confidence is ignorance, I believe.
July 15th, 2012 at 10:21 am
re: moose
I grew up in Alaska. An adult moose will pretty much take the greenhouse off a sedan. The front of the car takes their legs from under them and they usually hit the hood at the base of the windshield where that heavy body just comes straight through the windshield. All you can do is hug the console and hope for the best.
re: evasive maneuvers in SUVs
SUV rollovers are the result of ignorance and physics. You takes your chances and acknowledge that you cannot make evasive moves in an SUV that you can make in a passenger vehicle.
Frankly, many, many wrecks can be avoided altogether. Most are slid into with eyes closed and both feet jammed on the brake pedal. “Make this bad thing stop happening!”
“The three lanes to your left were clear. Why didn’t you just take evasive measures?” “What? Huh?”