February 11, 2009
GM. Publisher's Note: Life Without Bob Lutz (LWB) is not going to be pretty for GM. He was the only corporate executive in the company - make that in the entire business - who actually had a pulse and actually said what needed to be said when it needed to be said. A key distinction. Everyone else would just sit around waiting - or cowering - depending on what they were most comfortable with. And Bob jolted the media off of their complacent pedestals and made them pay attention and be on the top of their game, too, which will be sorely missed in this business. In GM's fight for survival, there's no talk or even worry about what happens on the other side, if and when they come out of this, because no one is really thinking about it. I can tell you that a precipitous slide back into mediocrity is a real danger for the company without Bob around. And needles to say, that wouldn't be good. - PMD GM. The other initials that will be flying around GM (besides LWB, of course) are WWBD, for What Would Bob Do? The problem is that there are very few people left at GM who could actually articulate an answer to that question.
GM. The Bad News? More from the "Not Good" File as GM will cut 14 percent of its salaried work force globally (about 10,000 jobs) in order to streamline its operations before the Feb. 17 deadline with the government and demonstrate its survivability. Here in the U.S. that means around 3,400 out of GM's 29,500 salaried employees will be eliminated by May 1. Also, executive base pay will be cut by 10 percent. Other salaried workers will have their pay cut by anywhere from 3 percent to 7 percent. "These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability," GM said in a statement. The really Bad News? There will be more cuts coming, you can bet on it. They're not even close to where they really need to be.
Wolfgang Bernhard. The ex-Mercedes, VW and Chrysler guru, 48, is returning to Daimler AG to run the Stuttgart-based automaker's Mercedes-Benz Vans unit, a division that produces some 288,000 vehicles each year and employs 16,000 workers at nine different sites. This means Bernhard will be reunited with his old friend, Dieter Zetsche, the Daimler CEO. It's a long way from his favorite gig at Mercedes when he ran AMG and relished building supercharged V8s, but he's officially back at the mother ship now, so we imagine he's happy. Watch for Bernhard to get more significant assignments at Daimler as the months go by.
Cessna Aircraft. Publisher's Note: Finally, a corporate CEO with balls. The Wall Street Journal reports that Cessna Aircraft is coming out swinging in defense of the use of corporate jets. In a campaign that begins today, Cessna will run an ad that says, "Pity the poor executive who blinks," and gets rid of the company jet. "One thing is certain: true visionaries will continue to fly." The corporate aircraft business has been decimated ever since the public flogging of the Detroit Three CEOs for using their planes to fly to Washington for the loan hearings took place in December. Orders for jets have been canceled or deferred, and corporate America is running scared from the subject. The problem is that for a lot of these companies with far-flung operations, corporate aviation is absolutely essential to keep their businesses running. "We think it's time the other side of the story be told, and that support be given to those businesses with the good judgment and courage to use business aviation to not only help their businesses survive the current financial crisis, but more quickly forge a path toward an economic upturn," said Jack Pelton, Cessna's chairman and CEO, to the WSJ. Well said, Jack. The typical American reaction is to overreact. People who have no idea how business works are demanding that corporate America park their jets, that it's an example of corporate greed and insensitivity, thanks to our boneheaded Senators and members of Congress in Washington, many of whom, by the way, avail themselves of private jets as a matter of course on a regular basis. I say bullshit to that. This country doesn't pull out of this economic mess by sitting around waiting for things to get better. This idea that corporate aviation is some sort of "luxury" that shouldn't be allowed is ridiculous and woefully naive. The Cessna ad goes on to say, "Timidity didn't get you this far. Why put it in your business plan now?" Exactly. Corporate America needs to get a grip, fire up the jets, and get on with helping us get out of this mess, because the mopers, hand-wringers and naysayers certainly won't. - PMDMaryann Keller. In David Welch's excellent reality check piece on GM in BusinessWeek entitled "GM's Crash Diet" he brings up the point that GM's latest round of cuts simply won't be enough, especially since the company has been in crisis mode since 2005. And Welch gets Maryann Keller, the independent auto analyst who covered GM on Wall Street for decades, to put it all into perspective: "How is it that four years into a crisis, there are still 10,000 people they can cut? They should be cutting into bone by now." And that's our AE Quote of the Week.
Simon Sproule. The PR pro is leaving Nissan after a five-year stint to join Microsoft as corporate vice president of Corporate Communications where he will be responsible for defining and managing Microsoft’s communications strategies worldwide, including planning and execution, public affairs, media relations, executive communications, employee communications, and global agency management. Sproule's first day at Microsoft will be March 2, 2009. A good move for a classy guy, and a real loss for Nissan.
(GM)
The upcoming release (June 26) from DreamWorks Pictures and Paramount Pictures, “Transformers: Revenge of the Fallen” - the sequel to "Transformers" - will again feature concept vehicles from General Motors playing prominent roles in the film. Directed by Michael Bay, “Transformers: Revenge of the Fallen” sees the AUTOBOTS confront a new threat from DECEPTICONS® bent on avenging their earlier defeat on Earth. The new AUTOBOT characters in their current Chevy-based form square off against new, tougher foes determined to rule the universe. Five Chevrolet-based characters – including four all-new characters – are featured in the new film. All of them are at the Chevrolet display at the Chicago Auto Show. The four new movie characters include:
- SIDESWIPE – a stylized Corvette concept
- SKIDS and MUDFLAP – twin AUTOBOTS® based on Chevy’s Beat (a concept that will go into production as the Chevy Spark in 2011) and Trax concepts
- JOLT – an AUTOBOT-based on Chevy’s upcoming Volt extended-range electric vehicle
Of most interest to Autoextremist readers is the SIDESWIPE, which takes the form of a sleek, visionary concept for the next-gen Corvette dreamed up by some of GM's top designers. The design is influenced by the original Stingray race car, introduced in 1959, but also draws on Corvette heritage cues from other generations.
“SIDESWIPE represents an exercise in exploration for the Corvette,” said Ed Welburn, vice president of GM Global Design. “By giving my creative team the freedom to design no-holds-barred vision concepts, it helps them push boundaries and look at projects from different perspectives.”
See a gallery of the Corvette Concept here.
Publisher's Note: With GM's financial travails, the next-gen Corvette C7 has been pushed back to 2012 at the earliest. This Stingray concept is one direction that the design exploration for the C7 has taken, and we like it - a lot. Ed Welburn has made no effort to hide his affection for the original Stingray - which happens to be my personal favorite all-time design too - so I would hope that if GM survives and we get to a point that a new C7 Corvette can actually be built, that it would look a lot like this concept. - PMD
(Ford)
The Taurus SHO returns to Ford's lineup with its Chicago Auto Show debut this week. The 2010 Taurus SHO is powered by a 3.5-liter, direct-injected, twin-turbocharged EcoBoost V-6 engine with an estimated 365 horsepower at 5,500 rpm and 350 ft.-lbs. of torque at 3,500 rpm. The new Taurus SHO driveline combines a high-capacity six-speed 6F55 SelectShift transmission with a sophisticated torque-sensing All-Wheel Drive System. The six-speed transmission offers a wide array of gears to enable spirited acceleration, yet comfortable high-speed cruising, through a 2.77 to 1 final drive ratio. SelectShift provides conventional automatic operation or a manual shift mode that gives the driver complete control over gear selection. For performance-minded drivers, paddle controls allow “match-rev” downshifts and will hold manually selected gears for precise control. Intuitively operated, a squeeze on either paddle will deliver an economical upshift under acceleration, while a gentle push forward brings a smooth downshift, synchronizing the engine and transmission speeds for responsive and positive engagement. Taurus SHO features an advanced electronic power-assisted steering (EPAS) system and a sport-tuned suspension with unique shock absorbers, springs, stabilizer bars and strut mount bushings. Taurus SHO takes full advantage of the multi-link SR1 rear suspension design. Named for the 1:1 shock absorber ratio, this configuration provides an inherently stable baseline for the SHO development team to fine tune for enhanced driver control and agility. In addition, the SR1 rear suspension geometry provides increased travel, while enabling the use of 19- and 20-inch wheels and tires. An SHO Performance Package is available consisting of upgraded brake pads, recalibrated EPAS for even more responsiveness, a “Sport Mode” setting for the standard AdvanceTrac® Electronic Stability Control and a shorter 3.16 to 1 final drive ratio for faster acceleration. Summer-compound 20-inch Goodyear Eagle F1 performance tires on premium painted sport wheels also are included. Taurus SHO exterior tweaks include the aforementioned premium sport wheels, wrapped in standard low-profile 19-inch Goodyear Eagle or optional 20-inch Michelin high-performance tires, a decklid-mounted spoiler and twin chrome exhaust tips. SHO also features a uniquely finished interpretation of the Ford signature three-bar grille with SHO-specific parking lamp bezels. The 2010 SHO is available in a wide range of new Taurus colors including Atlantis Green Metallic, a unique SHO color inspired by the iconic Deep Emerald Green hue that appeared in 1991. The interior of the SHO features leather-trimmed seats with Miko Suede inserts, made from recycled post-consumer yarns from plastic soft drink bottles (!), a perforated leather-wrapped steering wheel, 10-way power adjustable seats, accelerator and brake pedals trimmed in aluminum and the console, instrument and door panels feature SHO-specific authentic aluminum. Publisher's Note: It's nice to see an American manufacturer getting with the program and addressing the needs of the enthusiast driver in the midst of all this industry doom and gloom. We're betting the new SHO Taurus will do very well in the market while enhancing the Ford image at the same time. -PMD
(Ford)
Ford introduces the 2010 Ford Harley-Davidson F-150 edition (the 14th in the series dating back to 2000) at the Chicago Auto Show this week. The 2010 version features a new front fascia and six-bar shaped billet style grille, along with a premium interior, specialized forged aluminum and Harley-Davidson chrome badging, sport suspension and standard 22-inch low-profile performance tires – the largest in the F-Series lineup – mounted on Euroflange forged wheels with a polished and painted center wheel cap. The paint design combines Tuxedo Black and the first Ford application of Lava, a deep maroon with three-color metal flake. The seats feature handmade cloisonné badges, and the seat backs have ribbed leather treatments, engraved Harley-Davidson button snaps and even zippered map pockets utilizing zippers from Harley jackets. Just in case all of that isn't enough, the console has a limited-edition serialization plate.