Episode 944 – Spyker v. GM, MBS Update, Chrysler Uconnect Possibly Going Global
August 7th, 2012 at 11:45am
Runtime: 8:30
Spyker and GM are facing off in court. The small Dutch automaker alleges GM wrongfully forced it to take Saab into bankruptcy. John has some updates from the MBS conference in Traverse City, Michigan. Chrysler may share its popular Uconnect infotainment system with cars on the Fiat side of the Chrysler-Fiat conglomerate by adapting the software to specific regions around the globe. All that and more plus a quick look at the Hyundai Elantra GT.
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It’s Tuesday, August 7, 2012. Welcome to another episode of Autoline Daily! I’m Craig Cole, filling in again for John McElroy. We’ll hear from him a little later in the show. Anyway, here’s what’s happening around the automotive world . . .
SPYKER V. GM (subscription required)
Like a cat with 90 lives Spyker is back in the news. The little Dutch automaker is making waves once again. In a classic case of David and Goliath, The Wall Street journal reports Victor Muller and company is suing General Motors for $3 billion in damages. They filed suit in U.S. District Court in Detroit yesterday. They allege GM forced Saab into bankruptcy last year. Here’s their argument. The Swedish automaker was allowed to use patents and technology from GM, but the General retained ownership of that intellectual property – Saab couldn’t share it with anyone else. When Spyker tried to sell Saab to a Chinese company to raise desperately needed cash, GM said “not so fast.” Without money, Saab couldn’t pay its suppliers, and without parts it couldn’t build cars.
MBS UPDATE
As you know, McElroy is out of town right now. He’s up in Traverse City covering the Management Briefing Seminars. For those of you not familiar with the geography of Michigan, that’s way up here at the top of the mitten. MBS is an annual conference organized by the folks at the Center for Automotive Research. This year’s event spans four days and hosts some of the biggest names in the industry. With an update from the conference, here’s John.
One interesting tidbit of news we learned on day one of the conference from Hidetoshi Imazu who runs all of Nissan’s manufacturing operations is that they are getting ready for the next big earthquake to hit Japan. He says another big earthquake is expected to hit the Tokyo area possibly in the next few years. Nissan has put the plans in place as to how it will react to minimize any manufacturing disruptions. Meanwhile, John Flemming, who runs all of Ford’s manufacturing operations, said they are going to add three-crew operations to their North American plants this year. That will give Ford an additional 400,000 units of capacity, essentially a 27 percent increase in manufacturing capacity without building any new plants. And one other tidbit that I picked up at the conference is that the supplier company Cooper Standard is coming out with what it calls a diverter valve that goes in the transmission. It diverts the transmission fluid through a heating element to reduce internal friction at start-up. It will be out later this year, and while they will not say which OEM is using it, it’s another example of the minute details that automakers are going to improve fuel economy. Back to you guys, I should have another update tomorrow.
CHRYSLER UCONNECT GOING GLOBAL?
On the telematics front Chrysler could be taking its terrific Uconnect infotainment system global. WardsAuto.com reports the technology could make its way into Fiat vehicles. That includes Abarth, Alfa-Romeo and Maserati. No timetable for this global introduction has been announced. Engineers in Auburn Hills, Turin and Shanghai are working to tailor the system to drivers’ needs in their respective markets.
UCONNECT TEAMS UP WITH SPRINT
In related news, Chrysler has teamed up with Sprint to offer more Uconnect features in the U.S., including in-vehicle wireless internet and access to 911 services.
GM VENTURES
General Motors Ventures, the venture-capital branch of GM is investing in an outfit called The NanoSteel Company. It’s a firm that’s developing a whole new class of steel, one that’s stronger and lighter with greater ductility and cold-formability. As the name implies, these metals feature nano-scale microstructures that give them these unique properties. As automakers fight to cut every gram of mass this technology could save them kilograms.
FORD C-MAX HYBRID
Hybrid fuel economy numbers continue to get more impressive. Ford’s C-Max Hybrid just earned identical EPA city and hybrid ratings of 47 miles-per-gallon. This is significant because it bucks the trend of hybrids getting lower fuel economy on the highway compared to in the city where the cars can use regenerative braking. Ford says the C-Max will be the most affordable hybrid utility vehicle in America.
SRT VIPER OFF TO THE RACES
In motorsports news, the SRT Viper made its race-track debut this weekend. The GTS-R coupe finished near the bottom of the scoring order at the American LeMans Series race at Mid-Ohio. While more established teams took the top spots, the viper squad said it was happy to finish the race with both its cars intact.
HYUNDAI ELANTRA GT
Up next we’ll take a quick look at the new Hyundai Elantra GT.
You know, that is not a bad looking little hatchback. Base price for the Elantra GT is just a bit more than $19,000, including destination and delivery charges.
And that’s the exciting conclusion of today’s episode of Autoline Daily. We do thank you ever so much for joining us. And we hope you’ll come back tomorrow.
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Comments (38)
August 7th, 2012 at 12:12 pm
Nissan is looking for an excuse to move more and more production out of Japan, I’m not surprised if they also predict that the US will drop a bomb in Hiroshima as well, BTW those thinking of moving more production to Mexico, the commies might take over there and nationalize all industries, foreign and domestic, better stick with good ole US of A, no chance of that happening here, well, most likely not!
August 7th, 2012 at 12:23 pm
The Elantra “GT” is no longer moving while standing still, like the rest of them? I’m glad they fixed that problem.
August 7th, 2012 at 12:31 pm
A “GT” evokes a lot more than what Hyundai is providing; not that the car isn’t good (no way of telling), just that maybe they should have used some different letters in its description (especially touting fuel mileage).
August 7th, 2012 at 12:32 pm
Go SRT Vipers! They’ve been out of the game for 10 years, but they will be a contender soon, with Road American a great opportunity on the horizon.
August 7th, 2012 at 12:35 pm
That Elantra GT seems pricey, but it’s a nice looking little wagon.
August 7th, 2012 at 12:37 pm
#3 better than the Vega GT or the Yugo GT.
August 7th, 2012 at 12:58 pm
ESPN is reporting that Dodge will withdraw from NASCAR competition next year. It looks like the Viper (ALMS) and Avenger (NHRA Pro-stock) will carry the flag Chrysler.
To me, it is always interesting to see the advanced planning / thinking of Japanese business people verses the Wall St. quarterly-report driven American business people.
August 7th, 2012 at 1:15 pm
#6; ancient history (Vega and Yugo)
Drove a Vega GT Wagon back in ’73 (stationed in Bethesda, Md, U.S. Naval Medical Center; had fun in Bethesda but a long time ago and another story), remembering the day; it (the Vega) wasn’t that bad IMO.
August 7th, 2012 at 1:23 pm
Technology is such a bitter-sweet part of the automotive industry. With the push for increased fuel economy, automakers and suppliers are coming with creative ways to achieve better EPA numbers, and the diverter valve is but one example. On the other hand, automakers are also trying to appease those who demand their cars be mobile electronic entertainment devices, and Ford can attest to what kinds of things can go wrong when an automaker partners with tech companies. Not that I’d want to buy a Chrysler product anyway, but partnering with Sprint would kill a deal for me even if I did consider one of their cars!
August 7th, 2012 at 1:45 pm
I hate the grill treatment of the Elantra GT.
Hyundai should have used the standard silver grill from the regular Elantra on the GT. Also couldn’t that Backup Camera under the flipping rear manaufacturers badge possibly break if the car is covered with Snow and Ice?
I predict a win for Spyker over GM, but not enough money or time to save Saab. GM should settle Spykers debts and take back all ownership of Saab. I think those loyal Saab customers who bought Saab’s during it’s dark months and days would gain a better opinion of the General.
August 7th, 2012 at 1:50 pm
For those considering the Prius C and Civic…
http://content.usatoday.com/communities/driveon/post/2012/08/consumer-reports-lists-prius-c-civic-as-cars-to-avoid/1#.UCEVsqD-r1U
August 7th, 2012 at 2:17 pm
Or the Caravan or Ford Edge for that matter, funny how every auto media is roasting the new Civic, but it still sells very well, I guess lots of folks buy based on reputation and not much else!
August 7th, 2012 at 2:18 pm
Spyker v. GM – I smell settlement coming for Spyker, which is a “win” for the lawyers.
August 7th, 2012 at 2:41 pm
Neat little concealed rear cam feature on that Elantra GT. I just hope they geared it with some sort of automatic release mechanism, so as not to burn out or break the motor when that emblem gets all iced-up in the winter months (Northern regions)
I can see it now. The motor is straining to flip that emblem up, but it’s iced shut. Motor (or gearing) fails. Back-up cam gone. Take to dealer to fix. Repeat next Winter.
August 7th, 2012 at 3:07 pm
C-Tech you and I see this for polar opposite views. I think this will get tossed out of court as baseless. How can they sue GM for not allowing them to sell GM tech to China. I really think that this was always to be a end around for Spyker. Buy Saab from GM then sell to China was always the plan. They just didn’t think GM was watching close enough. They bought Saab knowing they were basicly licencing the GM tech until they introduced enough of their own tech in the cars to call them their own. Everyone with half a brain wondered from day 1 how Spyker a boutique brand would ever pull this off. I really think alll they wanted was a quick flip. That scuttled now a lawsuit in hope of that settlement you suggest.Plus they are trying fight GM in Detroit. I guess they never heard of home court advantage.
August 7th, 2012 at 3:10 pm
#7,
I’m sorry to see Dodge leaving nascar, but with Penske switching to Ford, I’m not surprised. I guess Roger will get a few more bucks from Ford, and we all know Roger needs the money NOT.
August 7th, 2012 at 3:34 pm
#11,
I suspect the people who buy Civic and Prius C will like them just fine. I have driven a Prius C, and while it’s not a “do everything” car like the regular Prius, it is just fine as a city car. As far as Civic, it is “rough around the edges” by today’s standards, but Hondaphiles don’t care.
August 7th, 2012 at 5:15 pm
I read about NanoSteel about a year ago and it is a rather large breakthrough in steel technology. Larger body panels and more complex creases and bends to add strength and ridgidity will amount to huge savings. Neat stuff!
Nissan’s preparations sounds like they plan to keep their larger portion in Japan,pedro. I’ll be interested in Nisssan’s future plans in the US if their Mississippi plant becomes unionized by the UAW. I know how many of you feel about the UAW,but unionization of transplants may have an up-side. Just off the top, reducing temp workers will result in an increase of spending which is much needed in our economy right now. Just the increase in home sales would do wonders to thwart off the Euro blues. And the instilled sense of security thus derived, in itself, may be the shot in the arm our country needs.
August 7th, 2012 at 5:18 pm
cwolf sorry but I believe unionization will force transplants to move S.O.B. to Mexico where there is no union issue and cheaper labor than here!
August 7th, 2012 at 6:44 pm
If a union is sooo bad,then why are the Big3 returning jobs to the US? At,say $10K/yr for a Mexican auto worker,knowing many or most are not employed for the entire year, they are considered well off. But I think you know there is a certain amount of usuery here on the part of the auto co. and lacks that certain amount of fairness in the eyes of most Americans. Do you see my point?
August 7th, 2012 at 6:54 pm
By the wat,pedro. How familiar are you with the present day company/union agreements? The great majortity of contracted items doesn’t even impact the consumer! Also any retort about higher wages or laziness is is bogus! Wages are linear and laziness is a human trait, not a union one. I think I know where you are headed, so go fish!
August 7th, 2012 at 7:36 pm
Hey don’t tell me, I’m a nobody, tell Ackerson, Mullaly and Sergio who keep moving production out of the country, not even to right to work states, but right out of here!
August 7th, 2012 at 8:00 pm
pedro
Sorry pal!. Long day.
August 7th, 2012 at 8:56 pm
Here is a sample of the respect Nissan has for its employees: The Nisson Canton,Miss. plant will hire 1000 workers…..uhhhmmmm, that is temp workers! Unlike the full-timer,making $23/hr., the 1000 temps will be paid $11/hr with no benifits other than having an income a few bucks over minimum wage. And what shocks even the auto analysts is that the temps have to work 5 years— 5years!! before consideration for full time and benifits. Does Nisson think they can get away with this indenturedness just because the majority in the area are Black??? Now you know of one instance why unions are needed in the auto industry.
August 7th, 2012 at 9:44 pm
One of the best things to come out the re-organization of GM and Chrysler was the 2 Tiered wage system. Now a new autoworker only gets $14 to start. That has allowed GM to move jobs into the Lake Orion Michigan Plant to build the Sonic and Verano, add a shift at Lansing to build the CTS and ATS, move some of the production of the Malibu and all of the Impala to Hamtramck Michigan, etc., etc. Contrary to popular belief pedro, GM has not moved ANY production of ANY US vehicle outside of the United States.
August 8th, 2012 at 6:21 am
Good, I am sure the US taxpayers will be happy to know that.
August 8th, 2012 at 6:23 am
And that is why I would consider a GM vehicle over any other domestic when I need to buy again. Despite my experiences with the X-car.
August 8th, 2012 at 9:02 am
I suspect GM is not very popular in Canada now, since they are moving production south of the border to the U.S.
August 8th, 2012 at 9:14 am
Pedro the X car frame was long ago…I have had several GM products…currently have a 2010 Malibu…love it…GM builds great quality products..with a great warranty
August 8th, 2012 at 10:37 am
I had a Malibu Maxx before my Prius, and it was a great car, except for using almost twice as much gas as the Prius. The Maxx was reliable, roomy, drove decently, and had great utility with its hatch design. That was one of few mid-size hatchbacks sold in the U.S. that is a car, not a truck or “crossover.”
August 8th, 2012 at 11:39 am
#29 but GM lost a lot of life-long customers with their crappy FWD cars. Hard to forgive and forget!
August 8th, 2012 at 11:50 am
I’ve had three (since 1980), ‘none crappy’; 1980 Citation X-11, 2.5L four with a four on the floor; fun car, 1984 Celebrity Station Wagon 2.8L w auto; this car was wonderful and served for over 15 years, 2000 Intrigue 3.5 L with auto; Daughter still driving it (another great car). I know you can’t go by one owner but they were darn decent cars. Citation 32mpg hwy, Celebrity 28/29 mpg, Intrigue 30+ mpg still.
August 8th, 2012 at 11:58 am
You’d think that by now, people would “move on” from having had a bad X car, just as people have moved on from those early Japanese cars that rusted out in about a year. I guess not, though.
As far as X cars, I had an ’81 Citation that was decent, but I didn’t have it long.
August 8th, 2012 at 11:59 am
Life is funny isn’t it, an aunt with a Corsica,POS first time I ever saw a car whose whole dash was ready to fall off, cousin with Olds Achieva, after owning a Camry, big mistake, father in law with 86 De Ville helped put mechanic’s kid through college,because he would not give up on it until it got totaled in a crash. One positive GM was another cousin with Pontiac STE 6000, great car and another cousin with Buick Enclave, says best car he’s ever owned.
August 8th, 2012 at 12:01 pm
As far as longevity, it appears that the X cars must have been pretty bad. It’s been years since I’ve seen one on the road, but I still see an occasional OmniRizon, and those weren’t considered to be too great.
August 8th, 2012 at 12:03 pm
But you guys don’t realize the Xcar was not just another car, it was a whole new phase for GM. The future of GM. All cars from then on would be FWD, transverse mounted engines with transaxles all this hoopla, these car mags claiming it was the second coming of the Messiah, and it just blew up on their face. Later we find out why this happened, cost cutting and an incomplete car was allowed to be built by the shortsighted bean counters who ran the company into the ground.
August 8th, 2012 at 12:06 pm
#31 pedro I owned many “none crappy” FWD GM vehicles…NEVER had any problens ! I know the Asians make perfect vehicles …media perception
August 9th, 2012 at 3:41 am
Funny I seem to remember Victor Muller saying GM’s deal with Spyker wouldn’t allow a change of control of Saab when the Chinese first asked for majority control. As I saw it, the Chinese drove Saab into bankruptcy deliberately, reneging on previously promised funding in the mistaken belief GM would capitulate rather than let Saab collapse.