Episode 285 – GM Management Changes, Another Toyota Recall?, Mercedes Predicts Strong Sales
December 7th, 2009 at 12:08pm
Runtime 7:41
More management changes at General Motors. NHTSA is investigating complaints of stalling engines on the 2006 Toyota Corolla and Matrix. Mercedes expects fourth-quarter sales to grow “significantly.” All that and more, plus a look at a BMW’s new “college.”
Transcript and Story Links after the jump . . .
Here are today’s top headlines. More management changes at General Motors. Another possible recall for Toyota. And Mercedes says good times are just around the corner.
Up next, we’ll be back with the news behind the headlines.
This is Autoline Daily for Monday, December 7, 2009, a date which will live in infamy. And now, the news.
More changes going on at General Motors. With Nick Reilly leaving his post in China to go run Opel, GM has appointed Tim Lee in charge of its International Operations. Mr. Lee had been vice president of GM’s manufacturing and labor relations. Now Diana Tremblay is appointed to that position. And reporting to her is Denise Johnson, who will be in charge of North American labor relations. Most interestingly, prior to this, Ms. Johnson was a vehicle-line director and chief engineer for Global Small Cars. So we really are starting to see changes at GM!
Meanwhile, The Wall Street Journal reports that GM has retained the head hunting firm of Spencer Stuart to find a new CEO (subscription required), one who has extensive global, manufacturing and turn-around experience. It says GM could also go outside the industry to find a replacement, but Bloomberg speculates that perhaps GM could turn to Nick Reilly. He’ll have to prove he can turn Opel around, which won’t be easy. Last week 10,000 people in Germany came out to protest against GM keeping Opel.
Reuters reports that BAIC has obtained a 20-billion Yuan line of credit – that’s nearly $3 billion – from the Bank of China. The Beijing-based automaker would like to get Saab from General Motors after negotiations with Koenigsegg fell apart last week. For now, BAIC has declined to comment on the situation, but that sure is a big war chest to go out and buy whatever you want.
Toyota just can’t seem to escape bad news lately. According to Reuters, the National Highway Traffic Safety Administration is investigating complaints of stalling engines on the 2006 Corolla and Matrix. Some of the cases allege that the engine would stall at intersections and others while driving. And there were also complaints that the engine wouldn’t restart afterward. The investigation covers nearly 400,000 vehicles equipped with IZZ-FE engines.
Ford plans to issue up to $1 billion in new stock. According to the Detroit News, the company filed documents with the SEC to issue the new shares and that it would be used for “general corporate purposes.” In the past Ford has issued new stock to try and reduce its debt.
Could this be another indicator that we’re clawing our way out of the worldwide economic recession? Global, year-over-year sales of Mercedes-Benz cars rose 16 percent last month to nearly 100,000 units. The gain was helped largely by the redesigned E-Class and S-Class models, which were up double digits. Like the rest of the industry, Mercedes’ sales in China were up sharply, too. Sales were up 81 percent in Brazil and 19 percent in the U.S. Overall, the company expects fourth-quarter sales to grow “significantly” following its biggest monthly gain in deliveries this year.
Coming up next, a look at a BMW’s new “college,” we’ll be back right after this.
Auto makers use all kinds of avenues to get the word out on their products. From a simple press release to an elaborate event, I’d thought I’d seen everything until BMW recently created its own college.
Located on the “ivy-free” campus of its North American headquarters outside New York City, BMW held what it called a DAY ONE UNIVERSITY to bring reporters and analysts the latest news “classroom style” on industry issues and product updates. One of the main sessions dealt with reducing emissions. Not just the facts and figures surrounding it, but also the problems in communicating such a complex issue.
That’s John DeCicco, an expert in the field of carbon emissions. He led the discussion based on his 2007 study that focused on the “carbon burden” automakers face, and spotlighting who has done what. BMW and MINI, it turns out, were a couple of his industry bright spots. And though no one in particular has a silver bullet, he does see potential solutions on today’s carbon landscape.
We’ve put a link in today’s transcript if you’d like a closer look at John DeCicco’s original study, from his days at the Environmental Defense Fund, called “Automakers’ Corporate Carbon Burdens.” Tomorrow, also from this same BMW event, we’ll take you to a workshop on the MINI E program.
Ok, since I wasn’t here Friday, we’re going to announce the winner of last week’s trivia quiz. We asked you to name the make and model of this car. And the correct answer is it’s a 1947 prototype of the Saab Type 92. As always we randomly selected this week’s winner from the pool of correct responses. And the winner is, Dan David of Chester, Connecticut. Congratulations Dan, you’ve just won this collector’s-edition Autoline Detroit coffee mug.
Don’t forget to join us this Thursday for Autoline After Hours when our guest will be Brent Dewar from General Motors, the head of Chevrolet worldwide.
And that’s it for today’s top news in the global automotive industry. Thanks for watching, we’ll see you tomorrow.
Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, The Auto Channel, WardsAuto.com and WWJ Newsradio 950
Share
Embed
Permalink
Comments (37)
December 7th, 2009 at 12:24 pm
Whoa, sounds like you have a coup for AAH on Thursday. I’ll be there!
Oh, and I hate Dan David…I wanted that mug…grumble grumble…
December 7th, 2009 at 12:28 pm
It appears that both GM and Toyota spent to much time trying to be the worlds volume sales leaders. In GM’s case they concentrated on building lots of cars and lost focus on brand identity. Lots of blah cars that were very similar. Toyota, spent their time trying to be all things to everyone. Their full size trucks gobbled up development dollars and took it from their bread and butter that was engineering good reliable cars. GM is near dead and Toyota appears to be sliding into mediocrity.
December 7th, 2009 at 1:11 pm
Say it ain’t so, the stellar Corolla engine now getting recalled. What the hell is Toyota doing? too much outsourcing if you ask me. Corolla engines and trannys were all built in Japan and were known for bullet proof reliability, like the previous blogger says, if they don’t get back to what they used to be good at, they’ll be doomed like GM
December 7th, 2009 at 1:14 pm
I wonder how Mr Dewar feels about Top Gear having a lowly Chevy on the show which gets made fun of every week as guests get to drive it around the track and handles horribly, maybe they should get a Cruze in there.
December 7th, 2009 at 1:29 pm
Top Gear gave the new Prius a family car of the year award!
That is the biggest, by far, news of the day,
and shows how unbelievably good and utterly reliable this brilliant machine is, when even a nutty car enthusiast show that routinely ridicules family cars and toyotas in particular, admits their superiority..
December 7th, 2009 at 1:31 pm
I did a brief calc, if I had to drive 40,000 miles a year, (which may happen if I have to do a 140-mile a day commute later) and did it with the 60 MPG prius and not the 20 MPG performance-luxo German v8 I currently drive, I’d save about $4,000 a year, or $40,000 over the 10-yr minimum life of the car.
December 7th, 2009 at 1:31 pm
And that only at $2.75-$3 gas. Imagine $5 gas! And assuming only ten and not 20 years that cars live today. If you include the above, the savings could well exceed $100,000!!!
December 7th, 2009 at 1:41 pm
So M/B is on the rise, good; hopefully some of the other high-end brands are up as well. That might be a sign that the big-boys are starting to spend, which should free up some money at the top to trickle down to the rest of the economy (hopefully more jobs)and more stimulus (the good kind; earned money being spent on durable goods).
And I wouldn’t write off GM quite yet; good product, stabilizing sales and cautious but encouraging future prospects. Let the competition begin.
And Toyota; not easy being at the top (makes you quite the target). Still good product (but a lot closer with everyone else now).
December 7th, 2009 at 2:03 pm
Does anyone else find the “Animated GIF” display AD distracting when trying to focus on the “Autoline Daily” Show ?
I proped a file folder up against the display to block the visual distraction.
December 7th, 2009 at 2:09 pm
Chuck Grenci Says:
December 7th, 2009 at 1:41 pm
“And I wouldn’t write off GM quite yet; good product, stabilizing sales and cautious but encouraging future prospects. Let the competition begin.”
I agree, GM has some good product, and seems to be having some luck selling it.
That said, they have recently been making a good case for why they should have dropped GMC. They made an ugly version of the Equinox, spending a lot of money on the new sheet metal, and they are now spending a lot of money advertising it. All GM needs is two brands, Chevy and Cadillac.
December 7th, 2009 at 2:41 pm
As for writing GM off…
How do you think they will bring back buyers of their GM diesels and Olds Firenzas who were told that GM has no obligation to them? These people faced unusually high (sic) repairs and zero value trade-ins when they tried to get out of a car that was known to be just crap. GM dealers would not even take these cars on a trade!
Now I should trust these people because…???
Building the perfect vehicle will never bring those buyers back!
December 7th, 2009 at 3:06 pm
A lot of time has passed since the days of Firenzas and Oldsmobile diesels. Early 80′s Toyotas weren’t that great either, and they rusted faster than GM cars of that time.
December 7th, 2009 at 3:14 pm
“Richard S Says:
December 7th, 2009 at 2:41 pm
As for writing GM off…
How do you think they will bring back buyers of their GM diesels and Olds Firenzas who were told that GM has no obligation to them?”
Stealing from the movie “The Mummy”, how about they use the Egyptian book of the Dead”? Many of these buyers are…literally, or at least figuratively!
December 7th, 2009 at 3:16 pm
But seriously, GM can do little to restore its onetime good name. That’s why a proverb goes “it is better to lose an eye than your good name”.
December 7th, 2009 at 3:20 pm
Jim Sachetti Says:
December 7th, 2009 at 3:14 pm
“Stealing from the movie “The Mummy”, how about they use the Egyptian book of the Dead”? Many of these buyers are…literally, or at least figuratively!?
You’re probably right, at least in the case of the diesels. If the average age of the buyer was 65, they’d be in their 90′s now. The average age of Firenza buyer might have been lower.
December 7th, 2009 at 4:16 pm
A bit literal here…
Change the car names to whatever you want – Cavalier, Cobalt, Olds 98, Park Avenue, etc. GM has at least as much of a problem with their legacy name as they do with their legacy costs. Their reputation for abandoning their customers is legendary. Now how do they fix that?? Not even the new GM has enough resources to go back and reverse the negative impact of the thousands of buyers who felt ripped off. The declining sales numbers over the past three decades tell the unmistakable story and the loud-and-clear message from the – now typical – American buyer.
They now tell us (again) about the “great products” they are currently selling. So credibility is the name of the game, and in this department, they are still bankrupt!
December 7th, 2009 at 5:09 pm
Good current and future products. Its the only thing that is going to turn GM around.
GM has some winners and some losers, like all car companies. Their losers are in the lower end of the car buying spectrum (Aveo and Cobalt)Their winners are at the top of the spectrum like the Cadillacs and Malibu. They have hope.
December 7th, 2009 at 5:09 pm
“Nick Stevens Says:
I did a brief calc, if I had to drive 40,000 miles a year, (which may happen if I have to do a 140-mile a day commute later) and did it with the 60 MPG prius and not the 20 MPG performance-luxo German v8 I currently drive, I’d save about $4,000 a year, or $40,000 over the 10-yr minimum life of the car.”
I’d rather live closer to work and drive a Hemi or the German V-8. If you ‘saved’ over $40K, think of how much you spent! Not to mention the utter waste of time.
December 7th, 2009 at 5:45 pm
I hate to be picky but the engine numbers Toyota would be more likely to use is 1 not an I in other words its 1ZZ-FE the FE stands for Federal Emissions. Just a note to help out.
December 7th, 2009 at 6:38 pm
That wont happen to you in a KIA Forte John Mc Elroy, and you know it. I bet that wont happen in the Korean Sourced Chevy Cruze either.
Hyundai is getting respect, its about time KIA gets some too. Toyota is in 8th Place in Relability, KIA is 9th. However, Hyundai-KIA Motors intends on KIA surpassing Hyundai in reliability, and Surpassing Lexus to become the most reliable brand in the US Market.
Their program for KIA is called, “Defects to Zero.” Their goal is set for 2012, so we’ll see those reliability ratings as the come.
I believe that Chevy is probably going to end up more reliable than Toyota over the next 3-5 years as well. VW as well, as it is tied with KIA, and Suzuki in 9th place.
Speaking about Suzuki, this is a perfect time for them to show their stuff and prov to the US market that they have bcome a good make. As Honda/Acura, Nissan/Infinti, and Toyota/Lexus further deterioate everyday.
We are watching history. A changing of the guard from dominance by Japanese makes, to Domainance by Korean, German, and American Makes. I consider Suzuki as a Korean make since they use new superior technology and parts from Korea.
VW and Mercedes also uses Hyundai ECU’s and various other electronic components. Look at their reliability since they started to use Hyundai Electronic components in their cars. Mercedes leaped up to 5th place, and VW 9th place.
As one of your commentators stated at the LA Auto Show, “Hyundai is going to rule the world, no question about that.”
December 7th, 2009 at 6:57 pm
Merceds and Hyundai are still in talks to share powertrains between the Accent and A-Class. The A-Class’s powertrain presently is limpwristed on the power front compared to an Accent.
To Hell with Toyota. Toyota=Baby Boomers cars. They make nothing but Girl Hatches, Mommy Wagons, Daddy Penis Trucks, and Mommy sedans now.
My friend has a Matrix, Im telling her now.
December 7th, 2009 at 9:04 pm
@HyundaiSmoke: Does Hyundai/Kia pay you by the word?
December 7th, 2009 at 10:58 pm
HyundaiSmoke Says:
December 7th, 2009 at 6:57 pm
“To Hell with Toyota. Toyota=Baby Boomers cars. They make nothing but Girl Hatches, Mommy Wagons, Daddy Penis Trucks, and Mommy sedans now.”
Huh?? They don’t have any wagons, “mommy” or otherwise. No Corolla wagon… No Camry wagon… No Lexus IS wagon or hatch any more. What Toyota wagons are you referring to?
December 8th, 2009 at 3:27 am
I wish C-tech. My staement was out of love for Hyundai/KIA and Hate for Toyota/Lexus.
Kit:
The are not technically wagons, but the modern day equivalent to them.
Venza
RAV 4
Matrix
Nothing wrong with 5 door hatches unless Toyota makes them, damm I hate this company.
December 8th, 2009 at 3:33 am
The only wagon from Toyota thats still a good Wagon is the Impreza/WRX.
December 8th, 2009 at 3:38 am
However, according to most observers Toyota (Subaru) dropped the ball on the Impreza/WRX. Everything with it has a problem, and is inferior to the last gen version they say.
I like the look of it, and Subaru would be the perfect brand that Toyota can use to fight Hyundai, but they dont see that opportunity. Hyundai is more upper tier than Toyota, but not ready to play with Lexus yet. Subaru is smack dead in the middle between Lexus and Toyota.
They Talk about how Lexus needs younger buyers. I say forget that, let Subaru with their affordable near luxury products handle the young people. Its replaced SAAB in my generation anyway.
December 8th, 2009 at 6:17 am
I agree – to some extent – with the observation that the Korean cars have come into their own. American manufacturers are in danger of going the way of the British.
Honda seems to have lost its way since the new regime took over. No longer the bold engineering company that it once was. Out of racing, cutting back on development, reducing size, cutting costs.
Toyota has also abandoned its dedication to finesse, near luxury and reliability that brought it oh-so-close to the top.
How many auto manufacturers get within striking distance of market leadership only to fall out of touch, take their eye off the ball and sink back into mediocrity (or worse, oblivion)?
Now Hyundai has stepped in with aggressive styling, brilliant engineering and super quality to take up the slack.
German cars are great to drive but still questionable on the reliability front. How many of them have one bright/one dim tail light? (Hardly a serious problem in itself but indicative of questionable electrics).
Let’s see if the Korean bunch can walk this tightrope any better than the established brands.
There is still a grand shakeout coming in the world auto industry with too much capacity and too many brands.
And now the Chinese are showing signs of life! That will force even more changes – and very soon!
December 8th, 2009 at 6:40 am
John: you should start demanding advertising $ from Hyundai/Kia because this is beginning to look like an ad campaign for the company.
December 8th, 2009 at 7:10 am
The Chinese Products though lacking in power, all have at least 45 MPG. Once the Economy gets better gas prices will shoot up. 2012-2013 would be a perfect time for them to bomabard the US market.
The Americans could go the way of the British, but unlike the British makes the Americans seem like they are trying to fight back. As long as the Americans spend less time striking and more time getting better, they will be fine. It makes me think about the Top Gear featuring British Leyland cars from the 1970s.
By the way, speaking about old vanqushed British Makes I think Hyundai might actually end up buying Jaguar from TATA in the long run. If not Jaguar, Aston Matrin. Hyundai is a thrifty brand, they dont want to incur the costs of making a new brand from scratch. I think as Hyundai proves themselves to be a capable near luxury make over the next 10 years, they will want to go upamarket farther=Decadent 600-700 HP Sport Sedans and Supercars that kind of thing. Hyundai will look to build an existing brand on that as opposed to creating a new brand from scratch.
The Genesis isnt that much far off from a Porsche Panamera in terms of power and displacement, but I think Hyundai wants more than that in the long run.
That’s not their style to start brands from scratch. Remember, Hyundai did a Hostile takeover on KIA. That’s their style to hostily take over a weak brand and start anew. They are waiting to pounce.
December 8th, 2009 at 7:13 am
Well Pedro when Toyota/Lexus, Nissan/Infiniti, Honda/Acura deteriorate by the second, Hyundai/KIAs are starting to sell themselves.
These Recalls on brands like Toyota/Lexus are the perfect advertisements for the Hyundai/KIA.
December 8th, 2009 at 7:28 am
I have a 03 Matrix XRS with the other hot rod motor the 2ZZ-FE and have had no problems luv the car, 65000 miles. I know a ton of people who have Vibes with the 1zz-fe toyota motor in them and luv them too. I have never heard of a problem until now..
December 8th, 2009 at 9:32 am
“# Pedro Fernandez Says:
December 8th, 2009 at 6:40 am
John: you should start demanding advertising $ from Hyundai/Kia because this is beginning to look like an ad campaign for the company.”
John MC Elroy, to be specific. I fully agree, this is getting LUDICROUS. The dude does not even want to use his given name, and instead calls itself “Hyundai something”. Either he is some poor loser trying to get free ad space here, or some obsessed 8 year old or an adult with the mind of an 8 yr old), but it is really strange to see anybody all worked up about that extremely boring company.
Now if it was LAMBO or FERRARI, I’d excuse the enthusiasm, but poor Hyundai and Kia? Give me an effing break and go see a good shrink, “hyundai Smoke”!!!
December 8th, 2009 at 9:34 am
It reminds me of these Sat Night sketches where some obese Chicago Poles discuss the awesome virtues of Mike Ditka over beer and sausages, remember? It is equally unreal with HyundaiSmoke here.
December 8th, 2009 at 1:11 pm
“I’d rather live closer to work and drive a Hemi or the German V-8. If you ’saved’ over $40K, think of how much you spent! Not to mention the utter waste of time.”
You don’t understand at all my circumstances. I currently do exactly what you advocate above, as most posters here know, I have a very short commute and drive a TOP end Luxury Performance German V8 (not the medium E class and 5 series), BUT my significant other may only find a faculty position at a different U and we may have to split the distance, or I may even relocate (my home, not my job!) in her campus.
December 8th, 2009 at 4:51 pm
Jim what is your problem with me, I never did or say anything nasty to you, dude?
And who in the hell are you to ask for my real name? Like I said, I dont give my real name to random strangers on some obscure car site. I think its absolutely stupid to come into some random website with your real name, either that or most of you are old guys who have no clue on how the internet really works. If you had a clue on how the internet really works none of you would put your real name out like that.
With your nasty attitude towards me, you might look me up see something I said you didnt like, and call up my employer. Trust me, Ive said enough things over the years online and as I can be politically incorrect, I said many things others would find very offensive. You seem like the malicious type, Jim. You’ve done nothing but prove otherwise.
Your constant attacks on my character makes you sound like the adult with a mind of an 8 year old.
December 8th, 2009 at 4:57 pm
Dave, your Matrix/Vibe was made before the, “Hey Im Toyota, and I’ll do anything to be number 1. Even sacrifice quality.” Era.
Those early Corollas/Matrixes/Vibes were good. You’ll be fine.
December 8th, 2009 at 5:12 pm
By the way Jim, Ive been coming to this site for a year now just to watch the videos, and never commented once up until a few weeks ago.
Jim, what’s the point with getting excited over cars, you’ll never possibly be able to afford. It wouldnt make sense to me for someone to get excited over a brand that I cant afford, or has POS quality, or is obviously declining in quality and reliability, or has junk Fuel Economy.
Out of all of the Affordable brands Hyundai/KIA is the most exciting, but I guess we are 2 different people.
I just dont live in a land of pipe dreams. Hyundai’s long term goals of being a Chrysler-like brand are very obtainable (most of their product is better than what Chrysler already offers in every way; and at a value) KIA has more work to do on the sport front, but I think Hyundai will get them there.
This company has proven time and time again they can not only meet goals but exceed them.
That’s the kind of character I find admirable in a person or company. Humm, maybe that’s why Im excited. Drive a Hyundai Product from 10 years ago, and then drive the newest version of that same model today. You’ll see what Im talking about.