Quotulatiousness

February 23, 2010

More market-rigging to favour Government Motors

Filed under: Economics, Law, USA — Tags: , , , , — Nicholas @ 07:09

If you’re a fan of German sports cars, this might be a swan song for your preferred makes and models:

In a few years, by 2016 to be exact, P.J. O’Rourke’s “ass-engined Nazi slot car” may be history in the U.S.A. Gone. By that time, Porsche needs to have a Corporate Average Fuel Economy (CAFE) of 41.4 mpg — if President Obama gets his wish. Mission impossible, says Porsche. Jack Baruth, stock up. Porsches will be extinct.

On May 19, 2009 President Barack Obama proposed a new national fuel economy program. If signed into law in May this year, as currently planned, the law will throw a nasty punch, beginning in the model year 2012.

Porsche-Lobbyist Stefan Schläfli talked to the German Edition of the Financial Times, before taking off for Washington for a last ditch effort to save the endangered species. Says the FTD: “Hardest hit will be German producers of premium brands which sell big-engined large cars. Critics in the German camp don’t think this is a coincidence. The formulas used to calculate the maximum permissible values are tailor-made for U.S. manufacturers. Basis for the calculation will be wheel base and track width — highly unusual criteria.”

A short and compact Porsche is faced with much stricter limits than a Corvette. Not to mention a pick-up. Large manufacturers turn into a CAFE-society, and can offset their thirsty oinkers with smaller cars. Porsche doesn’t have that option. Neither does Aston Martin, Jaguar, Land Rover and other eclectic brands.

Now that the government has a major financial stake in GM and Chrysler, they don’t even need to pretend to be even-handed in their regulatory fixes.

November 2, 2009

Ford reaps financial benefit from not joining Government Motors

Filed under: Economics, USA — Tags: , , — Nicholas @ 08:18

The New York Times has the unexpectedly positive financial news from Ford:

The Ford Motor Company on Monday posted a surprise third-quarter profit of $997 million and said it had its first profitable quarter in North America in more than four years.

The carmaker also said it increased its cash reserves by $2.8 billion during the quarter, ending September with $23.8 billion.

For all of 2009, Ford, the only Detroit automaker to avoid bankruptcy this year, has had a profit of more than $1.8 billion. It reported $834 million of income in the first half of the year.

October 2, 2009

The destruction of Saturn

Filed under: Bureaucracy, Technology, USA — Tags: , , — Nicholas @ 12:51

Tim Cavanaugh looks at the GM division that once looked like the solution to so many of GM’s problems:

I would not recognize a Saturn if it ran me over, but the brand showed every sign of becoming competitive, with the above-mentioned loyal customers and policies on haggling and customer service that have (so I’m told, though I have seen first-hand evidence to the contrary) since become industry standards. Saturn was hamstrung by something not mentioned here: It was for girls.

Those “officials in charge of GM’s other brands” (and at the UAW, which never liked Saturn Corp.’s more flexible contract) were status-stunted males so disgusted by the idea of innovation that they consciously chose to starve something every normal retailer would give a limb for. Saturn customers didn’t just like the product but felt real fondness and familiarity toward the brand. And this wasn’t treated as an opportunity to exploit but a problem to be solved.

General Motors isn’t the only American company that can screw up a wet dream. It’s probably not even the screwup company that is getting the most taxpayer dollars to keep screwing up. But it’s the most toxic. What’s good for America is the total liquidation of General Motors and the firing of every person, labor and management, who works for the company.

The few folks I knew who bought early Saturn models seemed very happy with their vehicles, and remained that way . . . until Saturn became just another branch of General Motors. Then, for the most part, they appear to have moved on, but not to other GM vehicles.

September 22, 2009

Truth in advertising?

Filed under: Cancon, Economics, Media, USA — Tags: , , — Nicholas @ 12:10

Jim Davidson watches the new GM television ad . . . and pukes:

They used to advertise “that great GM feeling.” Nowadays it seems more like “that sinking GM feeling.” Case in point, car-neophyte Ed Whiteacre’s current ad campaign.

“Car for car when compared to the competition, we win. Simple as that,” he says in this bright new ad promoting his complete ignorance about automobiles.

Sure, the white haired old man looks alert and sentient as he parades through a nearly empty show room with strange other people wandering around not selling any cars. But the words make no sense.

Car for car when compared to the competition, GM sucks. And they gave up competing on cars when they went for the enormous taxpayer bailout. It isn’t simple as winning in a head to head car making competition. Remember? GM played that game and they lost. They lost all of their money, so they demanded all of our money.

Later he lies again, “So we’re putting our money where our mouth is.” No, you bastard, you stinking lackey of big government, you filthy thief, you aren’t. GM tried putting their money where their mouth is, and they lost. They went under. So now they are putting our money where their mouth is. He isn’t a nice old man, he’s an evil old liar.

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