Quick, think of a hybrid automobile. Got it? Are you thinking of the Toyota Prius? Pretty much everyone instantly recognizes the well-known profile of the Prius, and it's by far the most popular fuel miser on the market. A good bit of Toyota's success with the Prius has been attributed to its unique look – some owners want everyone to know that they care about their environmental footprint, and the Prius currently accomplishes that better than any of its competitors.
Honda followed a similar path with the second-generation Insight hatchback, which some believe follows the form of the Prius a little too closely. According to Nissan head Carlos Ghosn, though, there's no chance that Japan's number three automaker will join that club. Speaking to Automotive News at the Tokyo Motor Show, Ghosn said:
We are not intending to play a leadership role in hybrids. One company already assumed leadership in the technology. We want leadership on EVs. Obviously, the company that leads in hybrids is Toyota, and Nissan's intention is to score a similar position in the world of pure electric automobiles. The opening salvo on that front will be the upcoming Nissan Leaf, which is slated to hit the market about a year from now, and the company has ambitious plans for its following act. We'll know if Ghosn's plan is successful or not about five years from now. Stay tuned.
When General Motors and Chrysler took money from the U.S. government to prevent being consigned to history, the two storied domestic automakers had no choice but to put their fates in Uncle Sam's hands. After two very brief bankruptcies and billions in bailout cash, America's favorite bearded relative is looking to take its own pound of flesh.
Automotive News is reporting that the Obama administration and the Treasury Department are planning to announce pay cuts of up to 90% for the top 25 earners at GM, Chrysler, GMAC and Chrysler Financial. U.S. pay czar Kenneth Feinberg reportedly negotiated the pay arrangements with the companies during four months of negotiations.
The reported cuts will put a deep gash into the pay of executives like Fritz Henderson, who reportedly earned $1.3 million last year. There is no word at this time whether the bonuses of top auto execs will also be trimmed. GM and Chrysler aren't the only TARP recipients to get a big-time pay cut either, as top execs from AIG, Bank of America and Citigroup are also going to experience the economic downturn in a very real way. According to AN sources, pay cuts will average around 50% between the seven companies. The AN source claims that AIG execs, for example, will not receive compensation that surpasses $200,000. Companies that have already paid back TARP money, however, will not be affected by the government-mandated pay cuts.
Steve Rattner is a man we admire but do not envy. Rattner, a former Wall Street banking type with zero experience in the automotive or manufacturing world, was tasked by President Obama with guiding General Motors and Chrysler through their restructuring efforts. Not a small job, by any means. Or one we would wish on our worst enemies. That said, it was a HUGE job, and huge jobs typically make for great stories. Rattner, in an article he penned himself for CNN's Money doesn't disappoint. At all. Allow us to tantalize you with some quotes: When the Obama administration took office on Jan. 20, it inherited nothing in the auto area: no staff, no stacks of analyses, no plans of any kind. The Bush administration had decided in late December that GM and Chrysler were not going to go bankrupt on its watch and had shoveled $17.4 billion of TARP money into the companies to keep them afloat, but without any meaningful stab at restructuring them. Oh snap! But really, that's not even the tip of the juicy iceberg.
How about this apple, er, lack of apple:
When I asked our energetic young chief of staff, Haley Stevens, what we were going to give our visitors for lunch, she replied, "Nothing. Treasury has no budget for even bottles of water." It seemed harsh to expect our guests to go many hours without eating, so I gave Haley $100 and told her to go to a sandwich shop. That became our hospitality protocol.Hungry for more? We haven't even scratched the surface, as our man Rattner is just getting warmed up. Here's one more for you about Rattner and friends first trip to Detroit:
What we didn't prepare for was the intense public interest in our visit to these hard-hit communities. Throngs of reporters awaited us at every stop while a news helicopter buzzed overhead. More peculiarly, the ensuing press coverage seemed wildly over-focused on our test drive of the Chevy Volt, as if the company's salvation rested on this one vehicle.Don't tell Lutz. And hey, speaking of Maximum Bob and his pals, here's what Ratner has to say about Detroit Management:
Everyone knew Detroit's reputation for insular, slow-moving cultures. Even by that low standard, I was shocked by the stunningly poor management that we found, particularly at GM, where we encountered, among other things, perhaps the weakest finance operation any of us had ever seen in a major company.And Mr. Rattner is just getting warmed up. Just wait 'till he gets to Wagoner. We implore you all to jump over to CNN to read the rest. Hat tip to chemistrusaz!
![REPORT: Controversial ads expected from Fiat exec heading Chrysler marketing [w/VIDEO]](http://www.niot.net/blog-images/report-controversial-ads-expected-from-fiat-exec-heading-chrysl.jpg)
Fiat exec Olivier Francois has a big reputation that's based on results. As head of the Lancia brand, he has garnered it more attention than it's had in many years, and the marque sells more cars more consistently. He has done this with a flair for marketing that begs for attention, and if it takes controversy to get attention then so be it. Fiat chief Sergio Marchionne chose Francois to be the CEO of Chrysler vehicles and run the Chrysler Group's marketing, advertising and brand development and strategies. It is expected, then, that he will bring his risque marketing ways to the house of The Pentastar.
Francois was the man behind the Lancia ad that had Richard Gere driving the new Delta into Tibet. As if that weren't enough, the ad was shown during the opening ceremonies of the Beijing Olympics. You can imagine how happy the Chinese were about that, but the larger story was that it worked: the ad and the controversy got play everywhere, and Fiat only had to make a formal apology to China to get on with business. Francois also made a commercial that honors Aung San Suu Kyi, a political prisoner in Myanmar.
This is the kind of advertising, though, that's more acceptable, and probably more effective, in Europe. In America, a commercial about a robot committing suicide is cause for protests, and VW's Routan campaign in which people have babies in order to justify buying the minivan is decried as insensitive by people who can't have babies. America is not the first country where one would test the limits of corporate daring or broadcast a ribald sense of humor to a mass market audience. The complete remaking of Chrysler and the company's former history of not being just another carmaker could give Francois room to bang up against some cultural boundaries. But we'd still advise Fiat to keep a crisis PR team on hold. Follow the jump to see the Delta commercial.
When Chrysler announced plans to spin off the Ram brand from the Dodge division, more questions than answers were left in its wake. So the truck-obsessives at Pickuptrucks.com sat down with the newly-appointed President and CEO of the Ram brand, Fred Diaz Jr., to suss out the details – to varying levels of success.
As expected, the 20-year Chrysler veteran did the executive shuffle around Pickuptrucks.com's most pointed questions, but it's clear Chrysler has plans to market and advertise the newly-formed truck and commercial vehicle division separately from its former Dodge umbrella. Diaz didn't divulge much about how Ram will be differentiated from its former parent, only saying, "The car side is definitely going to be marketed and branded different than the Ram brand, which is all about trucks and their capabilities."
On November 4, Chrysler is holding a lengthy press event where the automaker is expected to divulge some of its future product plans and how each individual brand will be marketed going forward. While we've already heard rumblings (and seen one TV spot) of Chrysler's attempted move upmarket, it's unclear how Dodge will be positioned. The smart money is on a more performance and consumer oriented image (similar to Chevrolet), while Ram is sure to capitalize on its rough-and-tumble truck persona. To that end, Diaz told Pickuptrucks.com, "At the end of the day, the Ram [pickup] will still have some Dodge DNA to it. Anything that's a real, true truck is part of Ram and the Ram brand going forward."
Back on January 16 of 1994, our 1985 Pontiac Parisienne Safari decided to blow a hole its radiator at the corner of Roscoe and De Soto in the San Fernando Valley. We remember noticing the temp gauge peg itself all the way to the right just as steamy white smoke began erupting out of the hood, and rolled into a local Shell station right there on the corner. The mechanic on duty was so used to repairing GM B-body cooling issues that he did it while we waited. We bet he could have done this particular repair blindfolded. Then he started talking.
"They've known how to make a water engine for years," He explained between pulls from his cigarette and dunking the Pontiac's radiator into a water bath. "My friend I went to school with, he invented a car that gets 160 mpg twenty years ago. But he was working for GM and they hold the patent." Doing our bestest not to roll our eyes too terribly much, we asked why not just release the motor anyhow, and surely the money his friend makes will more than make up for the money he'd have to pay GM. "You don't get it," the mechanic said to me. "They'll kill him."
A little less than twelve hours later, at 4:31 am, the Northridge Earthquake struck. Epicenter? Blocks from the Shell station where not only did our Pontiac's radiator get patched but a certain Iranian mechanic almost spilled the beans about GM's super high-tech secret stuff. Could this been a warning from General Motors to the loose-lipped mechanic? Probably. And if you think General Motors has some advanced engineering they're cruelly keeping under wraps, just check out Chrysler's Turbo Encabulator. Modial interaction of magnito reluctance anyone? Full video after the jump.
It's not easy to market a vehicle that has been on the market for over five years with changes so imperceptible that we couldn't name them if we tried. Chrysler is in just such a situation with its flagship 300 sedan, which is most definitely getting long-in-the-tooth. That won't stop the Auburn Hills, MI-based automaker from pitching it, however, and the Pentastar is putting a genuine effort forward with its new ad for the old gangsta sled.
The new spot proclaims that the 2010 300 will put the life back in nightlife, and the spot combines several shots of gorgeous women having a great time intermingled with a few fancy shots of the 300C burning the late night candle at both ends. The ad is part of Chrysler's new "Connect" campaign, which appears to be the swan song for the Pentastar's long-time agency of record, BBDO. Hit the jump to watch the 30 second spot. The Chrysler 300 may be geriatric in car years, but it's still rear-wheel drive, its 5.7-liter V8 continues to pack 360 horsepower and it still looks pretty damn sharp in black.
It's been 32 years since Alfa Romeo put out its own V8: a 2.6-liter, 197 hp mill fitted to the Montreal model that bowed out in 1977. And with emission regs what they are today, it looks like we may have to wait even longer.
Yesterday, Autocar reported that Alfa was working on a new 3.0-liter Mulitair-equipped V8 that would find a home in the replacement for its 166 flagship, supposedly based on the Chrysler 300 platform. Since the story hit the virtual presses, an Alfa spokesperson has denied the claim, saying "No front-wheel drive or four-wheel drive Alfa Romeo will use a engine larger than a V6." However, Alfa's parent, Fiat, does have access to Chrysler's 3.6-liter V6, but we somehow doubt that aging lump will find its way into the next generation of Alfa's range-topping model.
Dollar Thrifty Automotive Group, known in the retail world as Dollar Rent A Car and Thrifty Car Rental, will be buying about 40,000 fewer Chryslers than it did last year. Previously, the company was contractually bound to ensure that 75% of its fleet was composed of Chrysler vehicles. After the bankruptcy kerfuffle, the contract has been revised to compel Dollar Thrifty to purchase a new minimum number of vehicles, and the company is using the freedom to increase its model mix.
Instead of being so Pentastar-heavy, from now on, Reuters says that Dollar Thrifty's fleet figures to be 30% Chrysler, 34% Ford, 20% General Motors, 6% Nissan, and 10% left over for Hyundai and Kia. The model mix transition should also help Dollar Thrifty stabilize the income from fleet sales; the company took a beating when the residuals market took a dump, especially due to the fact that it was trying to flog so many products from a company thought to have a dubious future.
All three domestics have talked about getting away from low-margin fleet buyers for some time now. Still, the 40,000 hit to Chrysler's sales still probably isn't the best of news – Chrysler didn't want to get this far away from fleets.
Retired Chrysler worker Stipe Botica is a hero today after putting out an engine fire after a single-vehicle accident, likely saving the life of the passenger. The accident occurred at 4 am when two men in a Ford Ranger crashed into a vacant house next door to Botica's residence at Forest Glade in Windsor, Ontario.
When Botica went outside, he found the two men crying for help, so he helped pull the driver out of the vehicle. He then discovered that the passenger was wedged against the dashboard and unable to move while a fire was brewing in the Ranger's engine compartment. Botica ran into his backyard and grabbed a power washer that he'd been using to clean his pool and returned to the wreck, where he doused the engine bay and the passenger. Botica claims it took about five minutes to extinguish the fire, and it later took about an hour to remove the passenger from the wrecked Ranger. Botica told the Windsor Star that the area around the vehicle smelled of alcohol and there were no obvious signs of braking in the area around the incident.
We weren't at the scene of the accident, but we're thinking that two young men were mighty lucky Botica was home, alert and had a power washer handy when they crashed in the middle of the night. Who knows, perhaps Chrysler could fly Botica and his power washer to Auburn Hills to put out some fires at his former employer!
