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UAW head says that unions aren't to blame for Detroit's problems

Ron Gettelfinger's basically saying "it's not our fault" when discussing the state of Detroit's automakers. Rather than admit that the UAW's plum labor agreements and contentious negotiations have contributed to the current gloomy situation, the United Auto Workers head man says that the economic downturn is to blame for everything, and that Congress should approve loans to the auto industry, saying "We cannot afford to...see this industry collapse." You've got to love that black and white logic. The current state of the economy, and in turn the automakers' pain, are both closely related, and separate issues at the same time.

Boosting sales numbers for the last decade by financing anyone who filled out some nominal paperwork was probably not such a hot idea, but it kept the lines running, putting off layoffs even though it meant overproducing. An automaker propping up its sales to avoid strife with its labor union? Why, that sounds like it's at least partially the UAW's doing; and now those chickens have come home to roost as easy credit has dried up. Bad management and uncompetitive products from domestic automakers is pretty much the story of the last 35 years, and that's something the auto industry in the United States is certainly responsible for. Only now, when they're on the brink of massive failure, are American cars truly competitive with the import competition that's been dogging them for 25-plus years. It's certainly true that current economic forces unrelated to the automotive business have a large role to play in this ongoing saga, but if a bailout plan is passed, will it really help?

Consumer confidence is at record lows, and at a time when people aren't buying household widgets, is it really conceivable that they could be enticed into a big-ticket automotive purchase from a carmaker that may or may not soon file for bankruptcy? All the dire predictions about how the auto industry cannot be allowed to fail amount to so much hot air; even if we pump federal dollars into the industry, if nobody's buying, it could still fail. If that happens, there will be much wailing and gnashing of teeth, but it's not an impossibility. If one of the Detroit automakers goes down, then what? The UAW will have to find some other industry to choke, that's for sure.

[Source: Breitbart.com]

Sirius and XM debut new lineups



Sirius and XM have buried the hatchet and merged their content, to the likely displeasure of many. XM closes 15 stations while simultaneously adding 22 new selections to the lineup, and Sirius pretty much broke even, trading 11 stations for 10 new ones. As has always been the case, the sports fans fare the best. Reception is reportedly better, too, though we're sure the lossy-codec lack of fidelity still makes it all virtually unlistenable to anyone that pays attention. If you don't care that cymbal crashes on SatRad sound like a pair of metal trash cans being hurled down a fire escape, you'll likely be pleased with the shuffling; though we hope they've left our beloved Soulsville alone.

[Source: Kicking Tires]

Leave it at home: Subaru Dex




The JDM market is apparently enamored with vehicles that look like they're stuck in the shipping crate. We saw the first generation Toyota bB here as the Scion xB before it went on an eating binge and lost all its charm. That original bB went on to another generation, and has its own scions in form of some Daihatsu models. Subaru inked a deal back in April to share models between Toyota and Daihatsu, and this hideous little box with the star-motif badges is the result. There are three trim levels, and the Dex will relieve you of $15,000-$20,000. And here we thought even Subaru had relinquished its weird years ago. Turns out it was there all along, and the Dex is the ballcap-shaped box of contrived quirk that proves it.

[Source: Inside Line]

Detroit CEOs and UAW chief summoned to Washington

When Congress wants to hand out money, it apparently wants to include everybody. Barney Frank, Chairman of the House Financial Services Committee, is likely to propose a measure that lets automakers tap into the $700 billion vein of rescue dollars that's ostensibly intended for financial institutions, yet is being hungrily eyed by everyone.

CEOs from Ford, General Motors, and Chrysler will make the trek to Washington, DC, as will UAW chief Ron Gettelfinger. All will be pleading their collective case for an estimated $100 billion-plus vitamin pill. Many, not the least of whom is Treasury Secretary Henry Paulson, think that automakers should not be allowed to snag some of the cash that's intended for financial institutions. Things look bleak for all three of the brands, but can Congress be moved to offer up some money and prolong the jobs of so many Americans? Even if the automakers get the $100 billion they're seeking, when nobody's buying, it will merely turn into taxpayers funding an increasing glut of product nobody can afford to buy. Even those consumers with money and good credit are holding back as the economy delves into recession, emotional purchases are way down, and most vehicle purchases are driven by wants versus needs. Things will undoubtedly sort themselves out, but not before more pain for Detroit.

[Source: Automotive News - Sub. Req.]

MG hatchback pictures surface



Nanjing is still hanging IV bags on the battered carcass of MG, and there's a new hatchback model coming for 2010 that the automaker hopes will breathe new life into the the brand. Based on SAIC's Roewe 550, the new hatchback is about the size of a Euro Focus, and will reportedly be built at the historical MG home of Longbridge, in the UK. The car looks a little flashier than the Roewe version, and engineers from Ricardo are lending development expertise to make sure the suspension settings are all that they should be. Inside, there's a BMW-esque instrument panel, and underhood will be a 1.8-liter four cylinder, either naturally aspirated or turbocharged. With the flurry of new activity at MG -- there's the MG TF and ZS, as well as more models coming soon -- color may be returning to the cheeks of a brand once thought as good as dead.

[Source: Auto Express]

NHTSA now offering recall alerts

If there was a perfect technology to inform car owners about potential problems with their vehicles, it would be RSS. The wonderful Real Simple Syndication that keeps us up-to-date on our favorite blogs has caused a lightbulb to illuminate above a few heads at the National Highway Traffic Safety Administration (NTHSA). "Why, with this simple tool, people could sign up to be notified quickly when we issue any alerts or recalls," the agency said in a moment of current-technology clarity (we're paraphrasing.) Once you go to NHTSA's website and sign up, you get a synopsis of the past week's activity, as well as the ability to track up to five different vehicles. The system also allows notification through email or RSS update on your PC, phone, or PDA whenever something pertaining to your vehicle is issued. Additionally, recalls on tires and child safety gear will also go out. Sure beats a hit or miss web search.

[Source: Inside Line]

Senator calls for tax incentives on all new-car sales

When automakers are throwing thousands of dollars of incentives on the hoods of their wares in an effort to stimulate sales, what good would another $1,500 on a $25,000 car do? As the recent sales numbers show, buyers aren't being taken in by the constant sounding of the "SELL SELL SELL!" klaxon. Great deals on new cars are out there to be had, if only anyone had some money.

Senator Barbara Mikulski of Maryland thinks that the economic panic can be partially abated by allowing buyers of new vehicles to deduct auto loan interest, fees, and sales tax related to the purchase of a new car from their income tax. The proposed initiative would run from now through the end of 2009, and is only for families earning less than $250,000, or individuals making $125,000. Hey, nobody is really going to complain about getting a tax break, but it seems that buyers have already shown that they're wary, even with fantastic deals to be had.

[Source: Kicking Tires]

Hyundai Sonata gets redesign for China, we want too


Click above for a high-res gallery of the BHMC Sonata

The changes to the Chinese-market Hyundai Sonata are not enough to raise the roomy sedan's profile above handsome anonycar, but it's encouraging to see Hyundai figuring out freshening cycles without bringing the weird. This Sonata has been facelifted by BHMC, Hyundai's Chinese joint venture, and the car in the pictures is either a pre-production model, or a Monday-morning car, as it's missing some window trim. The tweaked nose and rump echo the styling of so many cars on the road that you can just pick your favorite brand as the one Hyundai copied. Derivative? Maybe, or it may just be that there's only so many places to go with a modest refresh of a modestly styled car. The interior also garnered some attention, getting adjustments to the seat and dashboard trim in the bright, airy cockpit. The design may not be quirky enough to please some, but a handsomely styled car at a competitive price will always find buyers. Thanks for the tip, 94 Taurus owner!


[Source: Carscoop]


GM having employees take more vacations to cut costs



There are worse things than being forced to take vacation days -- like your employer going belly-up -- so General Motors is asking the tens of thousands of workers at its Vehicle Engineering Center and the Milford and Mesa Proving Grounds to stay home on December 22nd and 23rd. Factories won't plan any additional idle days in December, but the Engineering Center alone employs more than 16,000 people, so significant savings can be realized from those two additional days of quiet time. Just shutting out the lights and turning the heat back to 55 degrees, even in such large facilities, isn't going to turn GM around in a singular motion, but it's a low-impact way to conserve scarce money. It's also probably a lot easier to get the engineers to take time off than it is to fight with the unions at each assembly plant. One thing that would stick in our craw: if you've already used up all your vaca, you'll have to borrow from next year's time. No free days for you, even as we slide toward the abyss!

[Source: Automotive News - sub req]

In The Autoblog Garage: Lotus Exige S240


Click above for high-res gallery of the Lotus Exige S240

"What is it?" people will ask. They'll keep going. "It's fast, huh? How fast does it go?" The answer will disappoint them. Yes, it is fast, but when driving the Lotus Exige S240, its 150-mph top speed is not at the forefront of one's mind. Lotuses are more classically described as accurate weapons of destructed mass; light cars that handle as an extension of the driver's body. True to the roots laid down by the Europa, the Exige is a composite monocoque, carrying 1800cc of supercharged Toyota fury admidships.

Many have glommed on to the Elise and Exige as track-day toys, but we wanted to see how this most raucous of Lotuses would do as a desert island car. If all you could swing were the payments for a single car, and you got your kicks by surgically trimming apices, could the Lotus hack it? It's certainly one of the most accurate-handling street cars we've had the pleasure of driving, and it does come with such comforts as power windows, air conditioning, and an Alpine audio system with iPod interface. Sounds like the perfect everyday car for a hardcore enthusiast, doesn't it?


Photos copyright ©2008 Dan Roth/Weblogs, Inc.

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