Ford would have shut without GM, Chrysler aid, Rattner says

I find this article very interesting.  Ford, at the time of GM and Chrysler's bailouts, did not request help but supported the federal government in the bailouts of their competitors.  The reason being that if GM and Ford were to disappear they would also lose some of their suppliers.  I assume the result of losing suppliers would be a loss of competitive bidding and higher production costs for Ford.

An update to the bailouts is that Chrysler has repaid all of its debt to the federal government with all the interest due.  They did not renegotiate any of the debt.  I believe GM has repaid most or all of their debt.  Today the big three are doing strong business with great profits and are the leading industry in the recovery from the recession.  Article below is from Automotive News:

Ford would have shut without GM, Chrysler aid, Rattner says Angela Greiling Keane  October 9, 2012 - 11:20 am ET

DETROIT (Bloomberg) -- Ford Motor Co., the only large U.S. automaker that didn’t receive a U.S. government bailout, would’ve failed along with General Motors and Chrysler if President Barack Obama’s administration hadn’t rescued the industry, said Steven Rattner, who headed Obama’s auto task force.

“Ford would have closed because it wouldn’t have been able to get parts, because the parts industry in this country was in arguably worse shape than the assemblers,” Rattner said today at the Center for American Progress in Washington.

Rattner, now chairman of the Willett Advisors LLC investment firm, led the $63.4 billion bailout in 2009 of GM and Chrysler, which he said would have fired all their workers and ceased to exist without the bailout.

President George W. Bush, who preceded Obama, “did the right thing” by beginning the bailout process, giving $17.5 billion to GM and Chrysler in 2008, Rattner said.

The auto bailout has been a point of contention in the presidential race between Obama and Republican Mitt Romney as they compete for votes in swing states including Ohio, home to U.S. automaker and parts-supplier plants. Romney opposed the government bailout.

Ford's view

Ford CEO Alan Mulally last month concurred with Rattner’s view, saying he testified before Congress in support of taxpayer support for his competitors because it also saved Ford.

“We think about that a lot, should we have gone back and testified on behalf of our competitors who were bankrupt,” Mulally told reporters Sept. 18 in New York. “I would do the same thing again today.”

Mulally said he agreed with the assessment of “the economic advisers of the Bush administration and the Obama administration that if GM and Chrysler had gone into free fall, they could have taken the United States from a recession into a depression.”

The U.S. government was the only entity that could save the domestic automakers because no one, including banks that were dealing with their own financial crises, was willing to put private capital into GM and Chrysler at the beginning of 2009, Rattner said.

“If you can’t pay your workers, if you can’t pay your suppliers, if you can’t pay your electric bills, then you have to liquidate,” he said. “This is what government is set up to do.”

Read more: http://www.autonews.com/article/20121009/OEM/121009878#ixzz28rgEbSVR

The Super Bowl Car Ads

In case you missed them, here are the best auto ads form the 2012 Super Bowl.  I watched most of the game but for some reason missed many of the ads.

Autonews article and Videos click here
Fiat Abarth Video click here

Acura's "Transactions" with Jerry Seinfeld is great.  Close runner up is Fiat (not considered a Super Bowl ad because it was run before on other shows).  The Audi and BMW are good - yes, I agree a heated steering wheel must be a good thing.  Cars.com ad is disturbing. Chevy "Joy" gets the cute award but VW gets runner up cute.  At the beginning I thought Chrysler's was a political commercial but it wasn't - or was it?  Chrysler did pay back all of its bail-out money last year (with interest paid to the US) and made a profit for the first time in several years.

Rental Car Surprise!

After my plane landed in West Palm Beach I had to go to the Budget counter to pick up my “economy” class car.  Unfortunately it was a late flight; but fortunately the shuttle bus drove me directly to the near site airport office.  I saw Budget’s inventory as the bus was pulling in the lot and noticed a few Fiat 500 Sports.  When I got to the counter we started the paperwork and I thought: could it be that the 500 is an economy car and I may possibly get one?  I asked him what they had assigned me – it was a Chevy Sonica.  Now, not bad for the least expensive rental car, but it is no Fiat.  I asked him what it would take to get a Fiat 500.  After some sweet talking and a trip to his manager he came back and asked me which color I wanted.  He did inform me that the 500 was not classified as an economy car, but in the same class as a Camaro or Mustang – and at this location a Mini.

For future reference I asked how I could guarantee I get a Fiat 500 when I come back.  He mentioned that I must call the store location where I am going to rent.  Going through Budget corporate will not work.  Their website does not even say they have Fiat 500’s or Mini Coopers.  He also mentioned that the 500’s and Mini’s are very desirable and can be hard to reserve.

The car was great to drive and absolutely loved it!  When I test drove the Fiat 500 for the first time I was at the Milwaukee location (on the northwest side) and the roads there are in terrible condition, frost heaved.  The scenery was also depressing – it detracted from the test drive.  I had a couple days driving the car on nice roads with beautiful scenery – I really love the car.  It has extremely tight, direct steering with a comfortable ride and of course great handling.  All the controls were excellent and the interior quality was first rate – even better than current VW’s.  The car felt like a short solid brick as nothing flexed or creaked.  The car had almost 10, 000 miles on it so if there were going to be creaking, rattles or anything being loose they would be there by now.

What I like about the 500:

1. Short, nimble with extremely tight turning circle.

2. Instrument layout with everything directly above the steering wheel including clock and trip computer.  The radio station and the name of the song even read out in the same location.

3. High seating position, comfortable seating.  Controls all easy to reach.

4. Fiatisms: All the lights including the headlamps turn off with the ignition key.  There is an idiot light telling you that you have your headlamps on (helpful reminder during daylight).  I assume there is a low fuel warning light.  Great fuel economy.  May not have highest horsepower in class but definitely has acceleration even on the highway.  That great Italian steering with immediate response.

5. High tech everything – USB connectivity, Bluetooth, satellite radio, all the safety gizmos and computer/electric assists.

6. The wiper-washers – Fiat figured it out!  The washers spray with misting the whole window first (completely covered) than the wiper moves, same for both front and back.  It works excellent and fast.

7. Steering wheel controls for trip computer, radio and Bluetooth – the tactile buttons for the radio channel and volume are hidden on the backside of the steering wheel.

What I didn’t like:

1.      The manual shifter part of the six speed automatic is backwards intuition – shifting it down is actually up shifting and vice versa.

2.      The power windows don’t have auto up.

Like the Milwaukee Metro area, there were other Fiat 500’s driving around the West Pam Beach area and I noticed most of them were not rental cars.  Many people, like spectators, looking with curiosity giving thumbs ups and OK signs.  Sometimes I forgot what I was driving and than reminded when I see people looking at the car and smiling.  Just like a collector car, curious people will speed up on the road to look and than hang out in your blind spot for a while watching the car.  I expect that in one of my vintage Fiats but didn’t expect it to happen while driving a newer car.  The reactions were not as extensive as driving an vintage Fiat 500 or 600.  When I used to drive my 1964 Fiat 600 people would try to follow me more and it is not possible to stop at a gas station without answering a bunch questions.  I was able to put gas in the rental Fiat without anyone asking me.

The Fiat 500 Factory Production Line

Awesome video of the New Fiat 500 being assembled in Toluca, Mexico.  Incredible display of robotics especially beginning at 3 minutes.

It's Offical - Fiat is Back!

Yes, those are U.S. flags and the Fiat logo and yes it is a Fiat Dealership Studio.  This is Bergstrom Fiat in Milwaukee one of three dealerships open in the U.S.  The other two are in Los Angeles and Washington D.C.  In addition to these there will be 180 more dealerships opening this year.  There is a bit of irony here because that is a former Hummer Dealership that closed due to lack of sales and the pending GM bankruptcy.  Now the building will be selling cars that have fuel economy of up to 40 m.p.g. and amongst the lowest polluting cars sold in the U.S.  Fiat stopped importing cars in 1982.  In 1992 VW almost stopped but instead gave it one more try and succeded - VW is now the world's second largest producer of automobiles and is narrowing in on Toyota.  Hopefully the re-entry into the U.S. will help Fiat in world wide sales.  Fiat now owns 20% of Chrysler and will own 35% by the end of 2011.  Fiat, without Chrysler and not selling cars in the U.S., ranks sixth largest and if Chrysler is counted in the next two years it should be fourth behind Ford.

It is wonderful being in Milwaukee and being one of the first open.  Fiat had mentioned that the Midwest was the last region of the U.S. to get the cars (we buy more domestics than the other areas of the country).  But the new Fiat 500 is not entirely an "import".  It is built in North America and technically a Chrysler Group car.  I could explain why but to do so would need much more time with an all new blog post that would be longer than this one.  The engine and transmission are assembled in Michigan and final assembly is in the Chrysler plant in Toluca, Mexico.

Look Daddy!  Its baby Fiat car!!! (She is frozen there and too
excited to get close to it)

Baby Fiat Car! Baby Fiat Car! Baby Fiat Car!

This is baby Fiat car eye...

this is baby Fiat car nose...

and what's this daddy?



Beep! Beep!

Baby Fiat Car goes Vroom! Vroom!

Baby Fiat car is happy daddy.

She was speachless about the rear end - just screamed
for joy.



All cuteness aside, this is a serious car.  While I didn't drive it I can tell you its interior is much higher quality than a 2011 VW Jetta S and the fit and finish is up to BMW quality.  The seat position was excellent and comfortable.  At almost six feet tall I fit in the backseat comfortable but tight with just enough headroom - the same headroom as in a 2011 Dodge Charger (4 door) I just sat in at the car show.

Fiat Cinquecento Unveiled to North America Today

Today is the day that Fiat Officially announces its return to the United States.  The U.S. version of the Fiat 500, a.k.a. Cinquecento, was debuted at the L.A. International Car Show.  The car will be showing up at dealerships, called Fiat Studios, in December and will be available for sale in January.  Fiat also sent out letters of intent to 150 dealerships that applied for franchises.  Within the Fiat information released is that the EPA fuel economy

ratings for "City" and "Combined" ratings will exceed 40 m.p.g.  I am excited to see that the Fiat USA website has pricing, build configurations and Fiat paraphernalia.  More information is available on Facebook and Youtube.  Fiat has indicated that more versions will be available in the next two years.  They include convertible, four door people mover, and full electric power (already available in Europe).

Diesel Electric Hybrid! Finally They are Planning for Them

At the LA Auto Show VW is showing their first diesel electric hybrid. The Up! Light is designed to get 70 mpg and is not a "plug in" electric car. It will produce its own electricity and drive off primarily a 2 cyl. turbo diesel engine. About a year ago both VW and Fiat discussed to the press that they would not consider diesel electric hybrids because the cost would be too high and they predicted that consumers would not purchase them. Apparently they have changed their minds, this includes Fiat also. Remember that the VW, Mercedes Benz and Fiat are the technology leaders in diesel production. Their engines can also be found in other manufacturers' cars (example: Fiat makes the diesel engines that power the Ford Fiesta and Focus).

LA Auto Show 2009 Volkswagen-Up-Lite Photo Courtesy Road & Track

I have proposed them for the last several years and could not understand why nobody was developing them for cars. We see diesel electric hybrids in operation for over fifty years - they are diesel locomotives that exclusively power our modern day trains. Something nice about diesel electric hybrid cars is that the fuel does not have be a petroleum product. They can run on biodiesel made from used fryer oil and at 70 mpg you won't need a lot of that. My proposed car is actually propelled by (proprietary information not to revealed) similar to train locomotives.

There are "plug-in" electric cars proposed by some car manufacturers (and a few currently available) but these are usually a worse environmental choice than a car with really low fuel consumption. The reason for that is the majority of electricity available in the U.S. is produced from coal or gas. The quantity of noxious emissions created by the electricity generated to charge the batteries for an electric car is larger than the quantity of emissions from the average gas powered car (for coal or gas sourced electricity). Unless the "plug-in" electric car gets its electricity from a safe renewable source (i.e. solar, wind, hydro electric), there is a negative environmental impact. The only good point is the emissions of the plug-in car are zero, but the power plant will be spewing a higher quantity of emissions.

So, before buying an electric only car or an electric hybrid car, really research the information including where that electricity does come form to power that plug-in electric car that you may consider. Also research the batteries.

Correction - Big Ed

Correction - The now former GM CEO Fritz Henderson is not "Big Ed the Texan" who publicly proclaimed he knows nothing about cars - that is Ed "Big Ed" Whitaker. Big Ed IS the Chairman of the Board of GM and now the interim CEO. Big Ed is the former CEO of AT&T whom is responsible for the current organization of it. Fritz Henderson was a life long GM employee/executive whom apparently could not shake off his GM family and atmosphere fast enough to satisfy the Board. Just a note, I read a recent story saying that AT&T has earned the status of having possibly the worst customer service this year (of any service providing company - not just phone). Big Ed was instrumental in setting up the current AT&T corporate hierarchy - that was listed as his greatest achievement to date.

Why do I update people on the status of GM? This is supposed to be a blog about architecture, urban community and environmentally friendly living. As one of the largest manufacturers of automobiles and other transportation vehicles, GM has probably the worst environmental track record of any its competitors. It has to be ordered by federal and state governments to clean up its act. It is now marketing itself as "green friendly" (see green washing definition) because it is trendy. Its lobbyists fight all types of governmental laws aimed at improving fuel economy, reducing emissions and increasing public transportation. If GM were truly concerned it would quickly address these issues and prove that it can exceed any proposed government regulations instead of fighting them. The choice, eight months ago, to hire Fritz Henderson as CEO and Big Ed the Texan as Chairman were amongst those bad GM decisions - no matter who made the decisions. GM and a few other large corporations are fighting against ideals that are important in this blog.

GM CEO Ousted by GM Board at Monthly Meeting

Whitacre is interim replacement
Jamie LaReau
Automotive News
December 1, 2009 - 4:50 pm ET
UPDATED: 12/1/09 6:20 p.m.

Link to Automotive News Updated Article

DETROIT -- General Motors Co's board of directors ousted CEO Fritz Henderson after eight months, saying it wanted to chart a new course as the biggest U.S. automaker pushes ahead with its restructuring.

Frtiz "Big Ed" Henderson Resigns as CEO of General Motors!

Newsflash!!! Frtiz "Big Ed" Henderson resigns as CEO of General Motors! The man who publicly announced he doesn't know anything about cars has resigned during a GM Board meeting. Apparently after a few months of being GM's CEO he still doesn't know anything about cars. I am sure GM's press department has a better and "more appropriate" way of announcing this.
Link to Automotive News Alert Article

GM CEO Fritz "Big Ed" Henderson Resigns

Newsflash!!!  Frtiz "Big Ed" Henderson resigns as CEO of General Motors!  The man who publicly announced he doesn't know anything about cars has resigned during a GM Board meeting.  Apparently after a few months of being GM's CEO he still doesn't know anything about cars.  I am sure GM's press department has a better and "more appropriate" way of announcing this.

Link to Automotive News Alert Article