AD #1485 – Honda Execs. Not Fit for Pay, Q3 Results, Ford Adds Automated Technology

October 23rd, 2014 at 11:55am

Runtime: 6:37

- Honda Cuts Executive Pay Over Recalls
- Scion Teases iM Concept
- Spain Sales Soar
- GM’s 3rd Quarter Looks Decent
- Daimler Posts Spectacular Numbers
- Strikes Hurt Hyundai’s Bottom Line
- Ford Adds Automated Technology
- Terra’s New Electric Scooters

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29 Comments to “AD #1485 – Honda Execs. Not Fit for Pay, Q3 Results, Ford Adds Automated Technology”

  1. Lex Says:

    Bravo to Honda!

  2. Max C. Says:

    Yes, bravo to Honda! These high paid execs need to be held accountable – just like Lee Iacocca help himself accountable back during the dark days at Chrysler in the 1970′s and 80′s. If I remember correctly, wasn’t he only paid a dollar a year or some ridiculously low amount such as that? Execs like that are putting their reputation ahead of their wallet, and in the process gain tons of respect.

  3. Max C. Says:

    Help = Held

  4. pedro fernandez Says:

    If Toyota and GM did the same as Honda, the top execs would make less than the assembly line workers!

  5. pedro fernandez Says:

    I have observed a lot more Mercs being sold around these parts, I guess the infatuation with BMW is slowly dying, I rode a new C class the other day and it was fantastic!

  6. Kit Gerhart Says:

    The new C-Class is nice, but it’s grown almost to E-Class proportions, in both size and price. And of course, we Americans can’t buy the wagon.

  7. G.A.Branigan Says:

    Now if we can force our elected officials to ‘man up’ and make them take a pay cut….

  8. pedro fernandez Says:

    Kit, they had to cause the CLA was the same as the old C class.

  9. Drew Says:

    GM may have discounted their vehicle to raise sales faster than revenue, but other dynamics can explain it… their mix of sales could have shifted to lower priced vehicles.

  10. Chuck Grenci Says:

    And if GM’s vehicles (are good enough) to sway new owners or returning buyers, then these conquest sales (if some of them are actually conquest) could lead to future profits if they sway loyalty back to the (GM) fold.

  11. Kit Gerhart Says:

    8, Yep, based on sales, they have done a good job of convincing people that the CLA is “the new C-class,” even though the outgoing C, and the one before that, are much better cars than the CLA.

  12. HtG Says:

    Weren’t we reading elsewhere how the wannabee CLA was going to hurt Merc’s brand equity?

    Not So Much

  13. Mike Says:

    John, A possible story line for you. A Detroit Tier One contacted me yesterday: “We noticed you applied to go to work here five years ago. Are you still interested? Detroit lost a lot of people in the 2008-9 timeframe. Many had to move and take huge losses on their housing. Now Detroit is busy again and really struggling to attract talent back to Southeast Michigan. The fact that incentives “to stay” like pensions and longevity went away also means the jobs are not as attractive as they once were. Even “full hire” jobs smell like “contract positions” without the higher pay that comes with “temporary” or “contract” work

  14. Brett Says:

    “Nobody ever went broke underestimating the taste of the American public.”

    H. L. Mencken


  15. John McElroy Says:

    @13. I think we’re going to see automakers and suppliers starting to offer better pay. Everyone wants to hold the line on costs, but if you can’t develop new products it doesn’t matter how good of a job you’re doing holding the line on expenses.

  16. Mike Says:

    The story from friends is that some of the Tier ones are “almost depressed” on how hard it is to get people. “Where did they go?” They went to Wisconsin, Texas and other places to get a job with benefits and stability.

    Now they are digging through 5 year old applications and recruiting heavily from other Midwest states. They are having trouble getting people to give Southeast Michigan another try.

    Part of this may be an unfortunate legacy from Mr. Mullaley. In aerospace they bring in Engineers when they need them, and then let them go when they don’t. My understanding is that this has led to most Engineers in and around Seattle renting housing instead of buying. The employment risk is too great to get stuck with expensive housing in a recession.

  17. Mike Says:

    The SE Michigan Employment problem may be something of a legacy from Mr. Mullaley. In Aerospace, they hire, then fire, based on their talent needs. For this reason, a lot more people rent their homes in Seattle. The risk is too great that there might be another massive layoff. I think the headhunters are digging through 5 year old resumes and heavily recruiting in nearby states in an effort to replenish the Engineering Pool for SE Michigan. Baby boomer retirements sure are also a problem. A lot of the tech specialists and deep knowledge folks are retiring and there has been no plan in place to train new folks up to that knowledge level. Software modeling is not such a great replacement for genuine knowledge and experience.

  18. Kit Gerhart Says:

    When I started working for GM in 1977, the auto industry had competitive pay, and better benefits than most industries for technical people. Also, job security was generally good, at least with GM and Ford. We had engineers leave for better pay, mostly to big semiconductor houses like Intel, TI, etc. but in the 80′s, the job security wasn’t necessarily too good, as companies acquired, and lost contracts with semiconductor users.

    Now, both pay and job security for engineers would be better at places other than car companies.

  19. Kit Gerhart Says:

    17, At one time, Boeing was like the auto industry for engineers, and had the nickname “Lazy B” because if you showed up and did a reasonably good job, your employment was secure. Yes, that has changed, as with the car biz.

  20. Funride Says:

    When I want to listen to music it is a personal choice. I decide the type and volome of music I will play. The same is true for a program I choose to watch-I pick the program.
    You at Autoline are still incorporating background music to good automotive investigative- documentary type program. Why? it is not necessary! 60 minutes doesn’t do it.
    Autoline Daily is something I look forward to every week day. Please drop the unnecessary unpleasant music or “I may drop”.

  21. HtG Says:

    For anyone who was watching AfterHours, did you hear that caller asking the Mustang boss about talk that there was going to be a big engine V8 with a flat crank? Flat crank? You mean the kind that spins up real quick? Like for racing purposes? Like in IMSA?

    No comment about future plans, of course

  22. Kit Gerhart Says:

    Flat crank V-8′s rev quickly, because they have low “flywheel” effect, but they vibrate like an inline 4 without balance shafts.

  23. HtG Says:

    Are you saying Ferrari’s vibrate, Kit? ’cause that’s what I’m hearing. ;)

  24. Kit Gerhart Says:

    Yeah, the V8 ones probably vibrate, at least for their engine size and cylinder count, unless I’ve been missinformed over the years.

  25. Roger T Says:

    Mustang enthusiast here. Rumor mill on dry sump & flat crank for over a year now. Take a listen to YouTube videos of the new mustangs testing at the N. ring.

  26. Todd T Says:

    The jury is still sequestered on whether or not the CLA will hurt Mercedes brand image, these things take years, not months.

    GM’s financials have nothing to do with discounts, or sales mix…it’s the cost of recalling nearly everything they have built for the past decade.

  27. HtG Says:

    25 Well, it’s been a year that CLA has been out, and now GLA is on the market. At least the jury has rendered a verdict on the fragility of the Merc brand.

  28. Kit Gerhart Says:

    Germans don’t take to the CLA like Americans. It isn’t in the top 20 car models in sales, but the C-class is #8. The Audi A3 is the top selling model from a “premium” nameplate, at #3.

  29. Kate McLeod Says:

    I like the Honda announcement. If only those executives had offered pay cuts to the company voluntarily, that would have been a great story.