nancynall.com » A little help from my friends.

A little help from my friends.

Thanks to all of you who made Day 1 of the Ama­zon store such a suc­cess. I earned $15.43! This is bet­ter than Google has done me in a sin­gle day, ever, and while I know it can’t last, I’m pleased to know how many of you are will­ing to do me this small favor.

I’m equally pleased to see my report from Ama­zon tells me what you bought. No names attached, alas, although some of you announced your pur­chases in com­ments. So I know Del is prob­a­bly the one behind “The McCleers and the Bir­neys;: Irish immi­grant families-into Michi­gan and the Cal­i­for­nia gold fields, 1820 – 1893,” but I have no idea who might have picked up “Strip To It: Core Moves and Fan­tasies Sexy Striptease (exotic danc­ing)” on DVD. Although I have my ideas ::koff::BrianStouder::koff::. And truly, I am delighted, because it would seem to indi­cate we’re draw­ing a younger demo­graphic. Money in the bank!

One of these days J.C. and I will put together a proper but­ton for the side­bar, but for now click either the cur­rent On the Night­stand book or the link below. Oh, and Laura Lipp­man, if you’re read­ing this, we also sold a copy of “Life Sen­tences.” Onward to the best­seller list.

So. I haven’t said much about the Gen­eral Motors sit­u­a­tion, mainly because the more I read, the less I know about this com­pany — or know that I know, any­way. I don’t want to be one of those pun­dits whose advice to the com­pany boils down to “duh, make cars peo­ple want to drive,” as though run­ning the largest indus­trial cor­po­ra­tion in the world, with a few hun­dred thou­sand employ­ees, plants all over the globe, a prod­uct line that takes years to develop and pro­duce, that’s expen­sive and prone to the vagaries of com­mod­ity and labor prices, trends and a fickle pub­lic — all this is no more dif­fi­cult than run­ning a cup­cake bak­ery somewhere.

For­tu­nately, in Detroit, there are lots of peo­ple who know more about this than I do. I e-mailed one and asked him his take on the Wag­oner busi­ness. I don’t think he’d mind if I pasted his thoughts:

I think Wag­oner got a raw deal. But I also think GM could use a lit­tle out­side agi­ta­tion. It’s a huge com­pany. And huge com­pa­nies are hard to turn around. Maybe a new face at the top will help. Cer­tainly the gov­ern­ment has the right to call some shots.

But two of the biggest prob­lems of GM were cre­ated a long time ago — shitty cars and bloated union con­tracts. The third — health­care costs — is out of their hands. Wag­oner went a long way to turn­ing qual­ity around. (It’s ironic that he’s out a week after Buick offi­cially ended Lexus’ 14-year run at the top of JD Pow­ers “Most Depend­able” list.) And he took a huge step in bring­ing union costs in line with the last con­tract. He cer­tainly blew it when they decided not to build a Prius-like hybrid when Toy­ota did. But he’s admit­ted that mis­take and GM is catch­ing up. (And he gets no credit for the fact that GM was devel­op­ing that tech­nol­ogy as fast as Toy­ota and Honda. They just made the strate­gic mis­take of not think­ing the mar­ket was ready for it … a mis­take that must be viewed in the con­text of the fact that GM strug­gles to make money with small cars under the weight of their stag­ger­ing health care costs.)

True to Wag­oner form, he didn’t stamp his feet and make a fuss. He is the rarest of birds — a CEO with very lit­tle ego. GM is in trou­ble, much of it by their own hand. But that trou­ble started a long time ago. Rick Wag­oner was the guy turn­ing it around … until a bank­ing and credit cri­sis clipped him from behind.

…One more thought. I made this pre­dic­tion late last year, and this lat­est news makes me think it’s more likely that this sce­nario will unfold: The gov­ern­ment over­seers will, with sup­port from Nancy Pelosi et al, right­eously force GM to shift its focus to smaller, more fuel effi­cient cars. Not much will be done about health care costs, of course. So these cars won’t make money. Toy­ota and Honda, mean­while, con­tinue to invest bil­lions in their truck fleet, fight­ing for a spot in this sec­tor. With Detroit money sucked away from truck devel­op­ment — Chevy’s new Sil­ver­ado gets bet­ter gas mileage with its V8 than Toy­ota can get with its V6 — Toy­ota and Honda will rush in and seize this highly prof­itable high ground. And that, my friends, will be all she wrote.

I might add: While gas prices remain low, lots of Priuses are sit­ting on lots, too. And Toy­ota sales are down as much as the domes­tic com­pa­nies’. When peo­ple are los­ing jobs and can’t get credit, a car that flies would be a tough sell, let alone a Volt. Although Toy­ota saw some­thing in hybrids that GM didn’t, and was will­ing to carry the Prius for a good long time until it wormed its way into the zeit­geist. And now when peo­ple think of Toy­ota, they think Prius, not Sequoia, High­lander or Tun­dra. And GM will for­ever be the mak­ers of the Sub­ur­ban. (Which I still see a lot of on the streets, btw.)

A bit of blog­gage before we depart? OK:

Detroit­blog unearths another great story, about a old-time west-side schvitz patron­ized mainly by Russ­ian geezers, but on week­ends? It’s an orgy venue. More pix (noth­ing spicy) at the first link, easier-on-the-eyes black-on-white text here.

Oh, it’s so cute when news­pa­pers have April Fool’s Day sto­ries, isn’t it? I’m amazed they’re toy­ing with sub­scrip­tion can­cel­la­tions at a time like this, frankly.

I am stu­pid and law-abiding, because my first ques­tion, read­ing this, was, “Why not sell at a loss?” I know nothing.

But I have a lot of work to do. So off I go.

56 responses to
“A little help from my friends.”

  1. Connie said on April 1st, 2009 at 9:46 am

    My BFF is a high level exec in an auto­mo­tive sup­plier. They don’t work directly for the car com­pany, they are two or three or four places down the con­tracted sup­ply chain.

    She just told me this story. Her com­pany was three steps down from Ford itself. Ford con­tracted for a trans­mis­sion bun­dle from num­ber one. Num­ber one con­tracted some parts from num­ber two. Num­ber two con­tracted some parts paint­ing from my girlfriend’s com­pany. Then num­ber two goes out of busi­ness a few weeks ago.

    So num­ber one asks her com­pany for new pric­ing. SHe says, I can’t give you a lower price, this con­tract is small and cus­tom color. If you switch from this almost black to stan­dard Ford ebony black I can do it quickly and cheaply as we run that color fre­quently. Num­ber one rep says no way.

    After sev­eral days of back and forth she ends up with her rep from num­ber one, and his Ford liai­son per­son in her office. After much dis­cus­sion of the issues, the Ford guys looks at the num­ber one guy and says “wouldn’t it be eas­ier and cheaper to do stan­dard Ford ebony black?”

    She says that’s typ­i­cal of auto­mo­tive sup­plier work. In recent months she has received numer­ous calls from sup­pli­ers who say, you know so and so has gone out of busi­ness, can you meet the con­tract price we had them? Usu­ally the answer is no. Sup­plier says why not? Answer: because we need to cover our costs and would pre­fer not to go out of busi­ness ourselves.

    I do not have a pos­i­tive atti­tude about April Fools. You’ve been warned.

  2. jeff borden said on April 1st, 2009 at 10:09 am

    I’m inclined to agree with the author of the piece that Rick Wag­oner took one for the team, but I’m also inclined to think that there needed to be a sym­bolic shakeup at the top. My biggest regret is that the s.o.b.‘s who’ve run America’s banks and finan­cial ser­vices sec­tor into the ground are not suf­fer­ing the same fate. Or, if they are being excused, are walk­ing away with a lot of filthy lucre.

    Among the many puz­zling aspects of the U.S. auto busi­ness is its inabil­ity to lever­age over­seas hold­ings. All three have sub­stan­tial invest­ments and hold­ings on other con­ti­nents, yet they never seem to have the right vehi­cle in the right place at the right time.

    Case in point: Gaso­line tops $3 a gal­lon and Toy­ota deliv­ers the Yaris, Honda the Fit and Nis­san the Versa seem­ingly within days. All qual­ity sub­com­pacts deliv­er­ing high mileage at a rea­son­able retail price. Why didn’t the Big Three have some­thing like that ready, con­sid­er­ing they all do busi­ness in coun­tries where gas is very expen­sive and roads are very narrow.

    The woes in Motown have many fathers. There’s a lot of blame to share and it goes well beyond nice union con­tracts or over­com­pen­sated exec­u­tives. I hope this story has a happy, or at least bear­able, end­ing but the odds seem long.

  3. Dexter said on April 1st, 2009 at 10:29 am

    Keith Olber­mann, who I always agree with, had a lit­tle seg­ment about how we shouldn’t feel sorry for Rick Wag­oner because , well, he did get that $23 mil­lion, don­cha know? — but in this case I broke with Keith. When this broke, I was a-Tweeting and Face­book­ing and blog­ging at all the places I go about how this was wrong…this force-out of a CEO not by share­hold­ers, but by Obama.
    I KNEW ass­holes like O’Reilly and Beck would be imme­di­ately call­ing out Obama to fire Ron Get­tlefin­ger of the UAW, too.
    Who­ever Nance’s con­tact is knows his stuff…everything posted today above rings true…all of it.
    It’s my opin­ion that only Amer­i­can Automotive-haters buy Tacoma trucks, when Ford and Chevy make far supe­rior mod­els, and of course hybrids have increased in appeal while funds to buy them, for the con­sumer, have dried up.
    I still can’t fig­ure out the dis­crep­ancy between the 70% pre­fer­ral fac­tor Euro­pean car-buyers extend towards the mod­ern vir­tu­ally odor-free small diesel cars com­pared to US dri­vers’ dis­dain for such vehi­cles. Hybrids won­the war but are los­ing the bat­tles as most would-be car buy­ers are putting off pur­chas­ing until the storm lifts.

  4. Jeff (the mild-mannered one) said on April 1st, 2009 at 10:32 am

    This is a mild thread-jack, but i finally found a copy of William Ayers’ “A Kind and Just Par­ent,” his 1997 book on Juve­nile Courts in gen­eral and the Chicago sys­tem in par­tic­u­lar (the very idea of Juve­nile Courts was born in Chicago and with Jane Addams in 1899, start­ing at Hull-House Set­tle­ment House).

    It is excel­lent writ­ing and heart-wrenching read­ing and i com­mend it to any­one (par­tic­u­larly if you tag your­self through Nancy’s side­bar and then hunt a used copy at Ama­zon, since it is sadly out of print). He tells a story about him­self early on in this book that sug­gests to me a step that con­sti­tutes the begin­ning of his road to rad­i­cal­ism, and it would make a cer­tain sense — he and a class from Lake For­est Acad­emy, an uber-prep school for Chicago’s wealthy, were invited down­town in the early 60s to attend juve­nile court as a field trip, and they were awk­wardly seated *behind* the judge, in their blue blaz­ers and khakis, fac­ing, over the judges shoul­ders, the fright­ened, angry, con­fused, sor­row­ful faces of one black young adult male after another, for what sounds like a very long (and inap­pro­pri­ate) morning.

    Ayers didn’t like what he saw reflected back at him that morn­ing, wanted to find a way to get down off that plat­form stand­ing behind the judge and gavel, and broke with that posi­tion as defin­i­tively as he could, even if counter-productively: but he has done some very mean­ing­ful and effec­tive work since his sojourn into ter­ror­ism and self-rehabilitation at Bank Street School of Edu­ca­tion. And if you have any inter­est in the juve­nile jus­tice sys­tem at all (because it isn’t a d*** bit dif­fer­ent 12 years later), this book is a fast but unfor­get­table read — 200 won­der­fully writ­ten pages. (Wish he wouldn’t wax rhap­sodic in his more recent rhetoric about Chavez and Morales, but in Alex Haley’s words, “find the good and praise it.”)

  5. Dexter said on April 1st, 2009 at 10:36 am

    as to Eric Sharp’s woe­ful tale of hunting…I left this com­ment at The Freep,“anybody seen nugent lately…hey! is HE behind this?”

  6. Dexter said on April 1st, 2009 at 10:46 am

    OK…almost had me…but that story about the swingin’ bathhouse…that’s a great April Fools story…it IS a joke…right?

  7. brian stouder said on April 1st, 2009 at 10:58 am

    Hah! While I con­fess that the exotic danc­ing book sounds intrigu­ing (not to say ‘right up my alley!’), alas, it wasn’t me. (I’m known too well, here in nnc-land!) But I will say that yes­ter­day at lunch, I caught an inter­view on MSNBC with a woman who was excep­tion­ally well put-together —  a top exec­u­tive at Buick — which made me want to run right out and touch the curves of an Enclave!

    I’m still work­ing through a back­log of books from Christmas/birthday, and then the LL books from Carmel…but after that, I’ll be haunt­ing the Kick­back Lounge (well named, by the way!). But I will get Michael Burlingame’s fairly mas­sive (2000+ pages) new biog­ra­phy of Lin­coln (even despite that I am pre­pared to be angered by his pig­gish views of Mary Todd Lin­coln — an excep­tional woman who has been smeared and vil­li­fied by male his­to­ri­ans in every gen­er­a­tion since Lincoln’s assassination) — and THAT will be through the KBL

  8. Dorothy said on April 1st, 2009 at 11:06 am

    Awww shit. Nancy found out what I got her for her birth­day (albeit about 7 months early)

    Speak­ing of books I picked up one last night from our home shelves to read dur­ing my down times at play rehearsal. “Balzac and the Lit­tle Chi­nese Seam­stress.” My son got it for me sev­eral Christ­mases ago. I will prob­a­bly fin­ish it today — it’s delight­ful and I’m home nurs­ing a very bad case of poi­son ivy. Thank God for steroids — gel form and pill form.

  9. Dexter said on April 1st, 2009 at 11:30 am

    Dorothy, I know poi­son ivy, too…I wish you a speedy recov­ery. The worst itchies I ever had was from scal­ing a cliff down to the Pacific shore­line near Big Sur…I had crawled through a lot of poi­son oak. It took weeks to dis­si­pate.
    http://​www​.swobo​.com/​h​t​a​t​b​l​/​a​r​c​h​i​v​e​s​/​p​o​i​s​o​n​_​o​ak.jpg

  10. ROgirl said on April 1st, 2009 at 11:56 am

  11. brian stouder said on April 1st, 2009 at 12:14 pm

    RO — I was think “this can’t be!” for a good 15 – 20 sec­onds, and THEN it hit me!

  12. Catherine said on April 1st, 2009 at 12:28 pm

    News about the new lead­er­ship at GM:
    http://​www​.cartalk​.com/​c​o​n​t​e​n​t​/​f​e​a​t​u​r​e​s/cnn/

    Dorothy, that is a lovely book, even if it took a bad case of poi­son ivy to get to it. My DH reacts badly to poi­son oak, which is rife around here. Once he pat­ted a dog that had been run­ning in the canyon. Then he went to the bathroom…you get the picture.

  13. beb said on April 1st, 2009 at 12:32 pm

    ROGirl’s link is to a arti­cle that GM and Chrysler are being bought out by a cou­ple of chi­nese cow­boys named Fu and King. Toge­hter their new busi­ness will be Fu-King Motors. While I would not be sur­prised if the Chionese do buy out GM, I’mm pretty sure this is an April Fools joke.

    One rea­son for Wagoner’s depar­ture accord­ing to a blog was that the bond­hold­ers for GM were drag­ging their feet on the restruc­tur­ing. They still wanted their bonds paid off at full value.

    It’s easy for Japan­ese car com­pa­nies to bring com­pact and sub-compacts to Amer­ica becaise that’s about all they make for the home mar­ket. There’s even a gov­ern­ment sub­sidy for extremely small sub-compacts. After test­ing out their mod­els on the home­land and work­ing out the bus there, they’re able to mod­sify them for US reg­u­la­tor stan­dards and price them cheap becaue the devel­op­ment costs were borne in Japan.

    But it’s also true that GM has not tried to make a small car domes­ti­cally in years. It’s like they gave up try­ing to com­pete there — rebrand­ing mod­els from Japan or Korea, and tryig to make their money *only* off trucks.

  14. alex said on April 1st, 2009 at 12:34 pm

    It’s my opin­ion that only Amer­i­can Automotive-haters buy Tacoma trucks, when Ford and Chevy make far supe­rior models

    Hav­ing dri­ven a Tun­dra the last few years, Dex, I have to say you’re just plain wrong. Toy­ota doesn’t make diesels or duelies yet, so the Amer­i­can brands still own that cor­ner, but I can assure you the Big Three do not build a supe­rior truck any more than they build a supe­rior car.

    And I have an ’07 GM car. I’m not an “Amer­i­can Automotive-hater.” Just call me unimpressed.

  15. ROgirl said on April 1st, 2009 at 12:47 pm

    Fu-king? It’s cer­tainly plau­si­ble enough, or a sce­nario not so far removed from it.

  16. Jeff Borden said on April 1st, 2009 at 1:08 pm

    Alex,

    A friend of mine who works as a land­scaper in North Car­olina just had to say good-bye to his 1984 Toy­ota half-ton. It had logged almost 300,000 miles. The clutch and drive train had been repaired a few times, but that mightly lit­tle four-cylinder was orig­i­nal equip­ment. It was butt ugly, but it ran.

    My expe­ri­ence with Amer­i­can cars gen­er­ally comes when we are rent­ing one. The Buicks, Chevys, Pon­ti­acs and Fords we have had recently have all been very nice cars –the Ford Focus was an espe­cially bright sur­prise– which would seem to under­score the argu­ment that these com­pa­nies can pro­duce a high-quality, plea­sur­able ride. I’m ready to give the U.S. indus­try another chance when our cur­rent ride dies, but it has only 94,000 miles, is paid for and likely will last another five years.

    I’m one of those boomers who was ter­ri­bly dis­ap­pointed in my early adult years by a Ply­mouth, which arrived new with so many flaws that my joy at hav­ing a cool-looking new car dis­si­pated within a few months. In 1978, when I was look­ing for a small, fuel-efficient auto with stick shift, my choices of Amer­i­can mod­els were incred­i­bly thin, which led me to a Honda Accord and a suc­ces­sion of Hon­das that fol­lowed. And that is how I fell away from the Big Three. I sus­pect a lot of other dri­vers can relate a sim­i­lar experience.

  17. LA Mary said on April 1st, 2009 at 1:14 pm

    Jeff, I gave Chyrsler/Plymouth/Dodge two chances and I was very dis­ap­pointed both times. The two Mit­subishi built Dodges we had were great, though.
    A few years ago we had a 1999 Ford Con­tour which was a really good car. Six cylin­der, good gas mileage, cool han­dling and very peppy. Ugly as hell, but it ran great. It was hard to find those at deal­er­ships, and we bought ours used from Hertz.

  18. mark said on April 1st, 2009 at 1:38 pm

    Nancy–

    I think your friend’s take is spot on. beb is cor­rect about the bond­hold­ers drag­ging their feet, but why shouldn’t they? Same with the UAW. With more than half the gov­ern­ment declar­ing we can’t let them go under, and with reg­u­lar hand­outs to AIG and oth­ers of 5 times the amount with one-tenth the scrutiny, why not call the government’s bluff?

    Bond­hold­ers are being asked to take between 6 and 16 cents on the dol­lar and the UAW to give con­ces­sions that would ren­der moot the rea­son for their exis­tence. What do they have to lose by hold­ing out for a bet­ter deal from the Obama money machine?

  19. Jeff Borden said on April 1st, 2009 at 1:39 pm

    LA Mary,
    Chrysler still has a lot of qual­ity con­trol issues. One of my co-workers a few years ago spent a boat­load of money on a top of the line Jeep Grand Chero­kee with a V-8. The car­pet­ing needed to be replaced twice because of leak­age from the air con­di­tioner and the elec­tronic mon­i­tor­ing sys­tem was always sig­nal­ing prob­lems that did not exist. He gave up and bought a Highlander.

    In fair­ness, my pal across the street has a plain Jane 1995 Jeep Laredo with a six-cylinder engine and a man­ual trans­mis­sion and it’s run­ning like a top.

    Maybe his car was built on a Wednes­day and the Grand Chero­kee on a Monday??

  20. Peter said on April 1st, 2009 at 1:41 pm

    Dex­ter, you think that detroit­blog story is an April Fool’s Joke? I sure hope it’s true — I could use a mid­week steam every now and then…

  21. LA Mary said on April 1st, 2009 at 1:55 pm

    Dodge num­ber one, a 1972 Polara, had elec­tri­cal issues that never got fixed. Brand new, it would stall at lights if you had the wind­sheile wipers, head­lights and radio on at the same time. Power win­dows would not go back up most of the time, so you had to live with closed win­dows and hope your pas­sen­gers didn’t open them. You could not run the AC with any other elec­tri­cal thing going.
    Dodge num­ber 2, a 1984 Charger, had non-factory AC installed at a truly nasty contractor’s shop. It did not fit under the hood, but the guy forced the hood to close, which bent it. The dealer fixed the hood and made the AC fit, but it never worked very well. Door han­dles used to fall off reg­u­larly. Reach for the han­dle to get into the car and it came off in your hand. We spent so many hours at the deal­er­ship with that car, we got to know every­one there.

  22. mark said on April 1st, 2009 at 2:03 pm

    LA Mary–

    Your ’72 Polara was ahead of it’s time. Obama’s car panel has a long list of new safety redesigns, includ­ing auto­matic shut-off of the radio (or cd player, etc) when­ever the lights and wind­shield wipers are oper­at­ing together, as con­di­tions are too dan­ger­ous for dis­trac­tion by the radio.

  23. alex said on April 1st, 2009 at 2:22 pm

    Jeff B, my expe­ri­ence sounds a lot like yours. My first new Amer­i­can cars were as com­i­cally junky as those LA Mary just described. Once I tried Honda and Toy­ota I was hooked.

    My more recent expe­ri­ence with Amer­i­can cars is that they are indeed get­ting bet­ter, but they’re not quite there yet. And thank God Toy­ota trucks aren’t ugly as sin any­more because they really do beat the hell out of any­thing else.

  24. Jeff Borden said on April 1st, 2009 at 2:42 pm

    Alex,

    That’s the real issue for Detroit. How do you woo back buy­ers who have gone for­eign for 20 or 30 years after a par­tic­u­larly bad expe­ri­ence with an Amer­i­can brand? This is the mar­ket­ing equiv­a­lent of Everest.

  25. alex said on April 1st, 2009 at 3:04 pm

    Jeff, I’d say the answer to that is to let the for­eign mak­ers buy the Amer­i­can mak­ers out of bank­ruptcy and run things their way.

  26. Connie said on April 1st, 2009 at 3:06 pm

    Mark, what’s your source? Just curious.

    I am quite sure that I win the con­test for ugli­est car, as I once owned an AMC Mata­dor. In HS I had a brand new white 1972 Chevy Nova, surely the coolest car in the senior class. (My Uncle was a big wig with GM and we got cars through him cheaply.)

    My hus­band is from Flint and we buy Amer­i­can if we buy new. I have put over 100,000 miles on a Chevette, a Pon­tiac, 2 Chevies, and just a few weeks ago on my Dodge Grand Car­a­van. The 93 Ford F150 is only at 90,000, and in fact is on its way to charity.

  27. Rana said on April 1st, 2009 at 3:13 pm

    Some­thing you might con­sider, Nancy, when you next con­tem­plate an updated con­fig­u­ra­tion for the blog, is to include a link to the Ama­zon shop in your tem­plate for indi­vid­ual posts. Since I access your site through a fee­dreader, I almost never see the main page, only the indi­vid­ual posts, one at a time.

    —-
    Edited to add -

    On the expe­ri­ence of Amer­i­can cars ver­sus for­eign cars, here’s my break­down: the fam­ily Mer­cedes (both bought used) = good cars, expen­sive parts; the Toy­ota 4-Runner — ran well for over 20 years; my first car, a VW Bug, which was cheap and easy to fix (but fre­quently needed it); my sec­ond car, my grand­par­ents’ Chevy Cor­sica, which was crap on wheels (first repair was due to an o-ring burst­ing right over the elec­tronic con­troller, to the tune of $800; sec­ond repair was the bracket hold­ing the driver’s seat in place, which broke due to metal fatigue — I swapped out that seat with the passenger’s and used it as an office chair as an impov­er­ished grad stu­dent); my cur­rent car, a 13-year-old Honda civic with nearly 100,000 miles on it, all but 15 of which were my butt in the seat, and it still runs like a dream.

    So, in my expe­ri­ence, Hon­das and Toy­otas win — expen­sive to buy, but cheap to run, and durable as all hell. The Honda’s ergonom­ics are supe­rior too — Toy­otas seem designed for peo­ple with nar­row behinds, and all the Amer­i­can rentals I’ve dri­ven have hor­ri­ble con­trols and place­ment of switches.

  28. jeff borden said on April 1st, 2009 at 3:13 pm

    Alex,

    I’m not enough of a finan­cial wiz­ard or indus­trial thinker to know how that might work. What would a Toy­ota or a Honda get out of it? I under­stood why Daim­ler wanted to get into bed with Chrysler, because it wanted a larger plat­form in the North Amer­i­can mar­ket, but the big Japan­ese firms already have those platforms.

    One other thought: The area roughly between Detroit and Pitts­burgh (includ­ing Toledo, Cleve­land, Youngstown) was called the “Ruhr Val­ley” of Amer­ica and the arse­nal of democ­racy dur­ing World War II. Per­haps there will never again be a need to con­vert fac­to­ries into war machines, but if not, is there a strate­gic need to keep large-scale auto man­u­fac­tur­ing in the U.S.?? I was quite sur­prised that those who opposed the rightwing politi­cians who wanted to stick it to Detroit last year never dis­cussed the destruc­tion of the car com­pa­nies as a national defense issue.

  29. Dexter said on April 1st, 2009 at 3:42 pm

    A few more com­ments on cars: I won’t buy another Chrysler mini­van because I have had ter­ri­ble luck with axles breaking…and really…Ford 150 is the best truck, and you may love your Tun­dra, Alex, but the 150 is the stan­dard of the industry…Toyota is still grasp­ing to find a gim­mick to best Ford. Toy­ota mileage per gal­lon is rather a dis­grace.
    And…I have a 1969 VW Microbus that I have had a cou­ple decades and have poured thou­sands into just to keep it run­ning, so I know how love for a vehi­cle obscures the costs of oper­at­ing one.

  30. jcburns said on April 1st, 2009 at 3:59 pm

    Good idea Rana (see the bot­tom of the page.)

  31. Rana said on April 1st, 2009 at 4:11 pm

    Awe­some, JC! Thanks!

  32. Dexter said on April 1st, 2009 at 4:12 pm

    Rana…I know what you mean about expen­sive for­eign parts for cars.
    My Volvo wagon was a great car…but geez…$650 to have a mas­ter cylin­der replaced? A good mechanic will fix one on an Amer­i­can car for maybe $150 or so.
    I sold the Volvo (with a disclaimer-warning) the next day. I had just spent $1400 for some engine repair, and the bleed­ing had to stop some­where. But gawd…I loved that Volvo. :(

  33. Sue said on April 1st, 2009 at 4:15 pm

    Right from the start, I think you should keep a run­ning profit tally. It would be inter­est­ing to see where you are in a year, if you get a bump dur­ing major hol­i­days, etc.

  34. MichaelG said on April 1st, 2009 at 4:30 pm

    I have a 2003 Ford Tau­rus. I bought it in 2006 as a lease return. It had 22,000 miles, the optional four cam engine, mag wheels, sun­roof, leather  —  you name it. I paid $9,000 even for it. A com­pa­ra­ble Camry or Accord (either of which I would rather have had — I’ve dri­ven both) would have been more than dou­ble the 9 Gs I paid for the Ford. It’s called bang for the buck but it speaks vol­umes about Amer­i­can cars. In fair­ness, the Ford has, to my sur­prise, turned out to be an excel­lent car. I’ve been very pleased. No ser­vice prob­lems to date.

    Wanna know what the shouting’s about? Test drive a Honda Civic and then go test drive a Chevy Cobalt. It’s still all about prod­uct and the Gen­eral still has a hill to climb even though Lutz (not Wag­oner) has done or did yeo­man ser­vice in lead­ing GM out of the prod­uct wilder­ness. The car biz should also have been as dili­gent as the finance peo­ple at hir­ing lob­by­ists and infil­trat­ing their peo­ple into g’ment agencies.

  35. Nash said on April 1st, 2009 at 4:32 pm

    N, the Colum­bus Dis­patch is lay­ing off some 40 work­ers at the end of this week, includ­ing decades-long film critic Frank Gabrenya.

  36. LA Mary said on April 1st, 2009 at 4:36 pm

    I bought a lap­top through ama­zon last year. Too bad you were not set up then. I don’t see any more lap­top pur­chases in the near future, but likely an Ipod and a few books, maybe a cof­fee grinder, a water fil­ter for my fridge and another for the cof­fee maker, and a waf­fle maker. This is between now and the end of June.
    My friend Ger­ald Kolpan’s book came out last week. I have not read it. It’s his imag­ined biog­ra­phy of Etta Place, the female com­pan­ion of Butch Cas­sidy and the Sun­dance Kid. I’ll buy my copy through your web­site and ben­e­fit two folks I know in one shot.

  37. jcburns said on April 1st, 2009 at 4:44 pm

    Rented a GM car in Jan­u­ary: some sort of Pon­tiac Mini­van thing, I don’t even know its name. Absolute worst UI design I could ever imag­ine. I oper­ate tech­ni­cal stuff for a liv­ing, and I couldn’t find the power win­dow con­trols. The doors lock unbid­den and find­ing the unlock when you get out is a chal­lenge. The radio, if you ‘poke’ the power but­ton — mutes. You have to hold the power but­ton to turn off the power. Looked for an ‘AM/FM’ des­ig­na­tion, finally fig­ured out that was ‘band.’

    Rented a Chevy Aveo over the week­end: much the same expe­ri­ence. Hon­estly, it’s not about US– vs foreign-made…but who the heck is doing GM’s user expe­ri­ence stuff?

  38. jeff borden said on April 1st, 2009 at 4:53 pm

    JC,
    Elo­quent as always and an excel­lent point. One rea­son the Japan­ese com­pacts bested the other offer­ings in the late 1970s and early 1980s was sim­ply the way they FELT. My first Accord was crude by today’s stan­dards, yet it was not sim­ply depend­able, but a blast to oper­ate and drive. I con­sid­ered a Rab­bit or a Jetta back then, but the Honda seemed a warmer, more wel­com­ing car. I still think my 1980 Accord was the finest car I’ve ever owned.

  39. LA Mary said on April 1st, 2009 at 5:18 pm

    My 1984 Honda Civic Wagon was a great car until some­one rear ended it at 45 mph. It didn’t last long, but it was won­der­ful. My cur­rent car, a 2002 VW new bee­tle is very lov­able. Other than rou­tine main­te­nance, no trips to the mechanic, and it gets good mileage. It sounds neat too. A lit­tle throaty/old VW-ish when you accelerate.

  40. Scout said on April 1st, 2009 at 5:27 pm

    Back in my early car buy­ing years (70’s and 80’s) the qual­ity dif­fer­ence between Amer­i­can and Japan­ese makes was quite pro­nounced. I had 2 Amer­i­can clunk­ers before buy­ing my first Cel­ica. Then I dis­cov­ered the joy of Ger­man cars. After dri­ving a Merc and a BMr and lov­ing them both but not the cost of parts, I set­tled on VW. My Golf is 11 years old with 140k, paid off, and when she does need work I have an excel­lent shop who keeps her run­ning with­out ding­ing me. When it’s time, I’ll prob­a­bly replace her with another just like her, only new. But yeah, once you’ve dri­ven a few lemons, you’re def­i­nitely dis-inclined to go Detroit again.

  41. jeff borden said on April 1st, 2009 at 6:10 pm

    Scout,
    It’s hard to walk away from prod­ucts that have treated you well, par­tic­u­larly when it’s a high-ticket item and you’re likely to keep it for a very long time. Why wouldn’t you buy another VW?
    That said, I’m hope­ful that when the time for another vehi­cle draws near –Please God, give me another five years out of the cur­rent car– there will be a vari­ety of Amer­i­can cars to pique my interest.

  42. alex said on April 1st, 2009 at 6:11 pm

    Jeff B, I’ve heard it dis­cussed that what the for­eign mak­ers would get on the cheap are the Amer­i­can mak­ers’ assets — facil­i­ties, etc., as well as a work force with a voided union con­tract. And when demand returns to the nor­mal 16 mil­lion units per year, they’ll own the mar­ket. What they’d be buy­ing are brands that still carry a lot of cachet with the Amer­i­can pub­lic. The Amer­i­can mak­ers are also ripe pickin’s for the Chi­nese mak­ers, who would love to get a foothold in our mar­ket, and that’s some­thing other “Amer­i­can” mak­ers such as Toy­ota and Honda want to stave off.

  43. Scout said on April 1st, 2009 at 7:00 pm

    Jeff B — Oh I will def­i­nitely buy another VW and likely another Golf. (Rab­bit now?) It is the per­fect car — front wheel drive, hatch­back with seats that fold down to turn it into a mini sta­tion wagon. Peo­ple can never believe the amount of stuff I can load in that car — it’s kind of like a clown car!

  44. kayak woman said on April 1st, 2009 at 7:28 pm

    I’m late to this and haven’t had time to read the com­ments. My brother was a GM/Delphi engi­neer. He had a chronic ill­ness that killed him in 2005. In the last few years of his career, after years of buy­ing big GM trucks, etc., he started buy­ing Hon­das. In 2001, I was look­ing to replace my lemon­ish Chrysler mini­van with a smaller vee-hickle and he sug­gested the Honda Accord. We own three Hon­das now and they are won­der­ful and reli­able. Includ­ing the 2001 Accord, which now has 124K on it. I have to add that two of our Hon­das were man­u­fac­tured in the USA.

  45. coozledad said on April 1st, 2009 at 7:58 pm

    We really enjoyed our old Sat­urn, and it out­lived its odome­ter (300,000 plus). We gave it to the guy who sold us our mules, mostly because he had the trailer to haul it away. He had to replace the fuel tank and fil­ter, but he was amazed how clean the engine was. We only let it go because we live in bum­fuck Egypt, and the erg valve kept fuck­ing with the lights on the dash­board. Too scary. If I ever give my ass­hole up to a man, I want it to be con­sen­sual, not because the engine seized up out by the county farm.

  46. brian stouder said on April 1st, 2009 at 9:40 pm

    Cooz — that’s just wrong on so MANY lev­els!! I admit — you got me laugh­ing — but still…wrong wrong wrong!!!

    Any­way — we own an 11 year old Olds 88 with 170,000 miles…or maybe it’s 180,000 — who knows?

    But she starts every morn­ing, and there’s not one lick of rust on it, and every­thing pretty much still works in it. We can fit myself and three kid­dos (of var­i­ous sizes) into it every morn­ing for a trip to the bus stop, and then off to work I go. I think we rack up 12 or 14 miles a day, assum­ing I drive home for lunch

    Some­day the ol’ Olds will give up the ghost — and from what I’ve read, a car like the Chevy Volt would fit our needs like a glove…so we shall see.

  47. alex said on April 1st, 2009 at 10:32 pm

    Some­day cooz will give up the ghost, Brian. And don’t look under­neath the plas­tic cladding on your 88 or you’ll see it’s ate up just like a Ford.

  48. brian stouder said on April 1st, 2009 at 11:23 pm

    Alex — You’re almost cer­tainly right about that plas­tic cladding on the lower fend­ers and bumpers; indeed — the car is doing one thing I’ve noticed on other GMs, which is shed­ding paint off the top of one of the front fend­ers (right by the edge of the engine hood). I have seen other GMs that have lost most or all of the paint off their engine hood…mine isn’t so bad yet — and the exposed metal isn’t rust­ing — so I remain happy.

    Here’s a Fort Wayne digres­sion, regard­ing the Omnibus Lec­ture Series at IPFW (a very great favorite of mine)

    Depend­ing how you count them (see http://​www​.supre​me​cour​tus​.gov/​a​b​o​u​t​/​m​e​m​b​e​rs.pdf ), there has only been 115 peo­ple who have ever served as a Jus­tice (Chief Jus­tice or Asso­ciate Jus­tice) on the Supreme Court of the United States…just 115 peo­ple from the begin­ning, in 1789, up to the cur­rent day.

    And of that num­ber, there is exactly one liv­ing retired Jus­tice, and she will speak at IPFW’s Rhine­hart Music Cen­ter Thurs­day, April 23, 2009.…and the event is free and open to the public.

    But be aware — this event requires a ticket; you have to stop out at Rhine­hart (they’re open between 12:30 and 6:30 pm weekdays) — or call them at 481‑6555 and they’ll hold tix for you.

    http://​www​.omnibuslec​tures​.org/

    The title of her lec­ture is “Advanc­ing the Rights of Humanity” — and, as for me, I’ve already snapped up 4 tick­ets for the event (Pam and Grant and Shelby and I — Chloe is on her own that night!*) — because, leav­ing aside the chance to see such an excep­tion­ally rare bit of United States his­tory in the flesh, I’ve seen Ms O’Connor speak on C-SPAN before, and she’s quite a lively speaker, very thought pro­vok­ing and funny!

    And did I men­tion that it’s FREE?!

    *actu­ally, Aunt Deb will prob­a­bly take charge of Miss Chloe at the appointed hour…

  49. joodyb said on April 1st, 2009 at 11:53 pm

    If I may:
    While it is still April 1 in my time zone, I hereby raise a glass in mem­ory of Ash­ley Mor­ris. Don’t know why I remem­ber. I just do. Because it was April 1 and not April 2.

  50. coozledad said on April 2nd, 2009 at 12:29 am

    Alex: my wife has con­sis­tently proved man enough for me. It’s our anniver­sary tonight. I hope she’ll be a good sport and let me play with her noo­dle. But she might already be passed out. Gotta love mid­dle age.

  51. Jeff (the mild-mannered one) said on April 2nd, 2009 at 6:09 am

    Some­body help Frank G. set up one of these sites; he’s a good writer and a great guy. I haven’t seen him for three years, but hate to hear he’s the lat­est thrown under the bus.

    To keep my job (well, one of them), i have to spend the next two loooong days expe­ri­enc­ing Domes­tic Vio­lence train­ing. I’d be more respect­ful of the topic and all, but i’ve had it twice in the last ten years, and have to do it again because they were in the wrong state or super­vised by the wrong agency. No one doubts that the con­tent will be the same, but i won’t be legal for com­mon pleas court pur­poses with­out hav­ing the right two days of role plays in my men­tal tool kit.

    But i promise to share any new, unique insights i may glean from this marathon of man’s inhu­man­ity to women (with the oblig­a­tory pro­viso that women do, in fact, abuse men, but not so often that we have to swap the dia­logue for the role plays).

  52. alex said on April 2nd, 2009 at 7:50 am

    Hey, just found out Fort Wayne has its own local chap­ter of the Rick San­telli fan club:

    http://​www​.fort​wayne​.com/​a​p​p​s​/​p​b​c​s​.​d​l​l​/​a​r​t​i​c​l​e​?​A​I​D​=​/​S​E​/​2​0​0​9​0​4​0​2​/​N​E​W​S​/​9​0​4​020313

    Seems they’d like us to re-fashion Amer­ica after Boston in the 1770s, where gov­ern­ment had no place except in the bedroom.

  53. basset said on April 2nd, 2009 at 8:15 am

    About the hunt­ing story… it’s legal to hunt deer with a spear in Alabama, or at least it was the last time I looked. Here in Ten­nessee, I finally got tired of buy­ing extra sub-licenses for trout fish­ing, hunt­ing on state pre­serves and so forth and finally got the all-in-one “sports­man” license this year and I am now legal to shoot wild boar. Says so right on it.

    Here at the Bas­set house, we drive a Sub­aru (built in Lafayette, Indi­ana) and a Toy­ota (made in George­town, Ken­tucky). Didn’t even con­sider an American-company car when we got the Toy­ota in 05; might have when we bought the Sub­aru last year but I wanted a small wagon and the only US ver­sion of that is the Ford Escort, after a really bad expe­ri­ence with a new F150 a few years ago I am through buy­ing Fords.

    In all fair­ness, though, the Sub­aru did replace a Dodge pickup which was still run­ning fine when I sold it at 140K… unless you count the new torque con­verter (in other words, major trans­mis­sion repair) under war­ranty when it was new.

    One prod­uct the US car indus­try doesn’t have, one which I would buy tomor­row, is a small, plain, no-frills pickup with decent gas mileage. Much like, say, the diesel Tacoma you can get in Canada. No fancy inte­rior, rollup win­dows, cheap to run, basi­cally a rolling appli­ance… kinda like this:
    http://​jalop​nik​.com/​3​5​5​0​2​5​/​m​a​h​i​n​d​r​a​-​a​p​p​a​l​a​c​h​i​a​n​-​i​n​f​o​-​u​p​d​a​t​e​d​-​n​o​w​-​w​i​t​h​-​s​m​a​c​k-talk

    although the price looks way high and they want to use an inte­rior “designed for the Amer­i­can mar­ket.” Good com­ment at 1:59, too…

    or maybe one of these, from the same com­pany which makes that $2000 car:

    http://​www​.motor​ing​.co​.za/​i​n​d​e​x​.​p​h​p​?​f​S​e​c​t​i​o​n​I​d​=​7​5​4​&​a​m​p​;​f​A​r​t​i​c​l​e​I​d​=​2​179305

    if I entered every­thing into the cur­rency con­verter cor­rectly, the base 4x2 model lists at $10,799 US.

  54. Dexter said on April 2nd, 2009 at 8:38 am

    bas­set, axles and trans­mis­sions are the bane of Chryslers, and not nec­es­sar­ily older ones…a group of fel­las drove out to Omaha a few years ago for the ded­i­ca­tion of a vet­er­ans park , hon­or­ing the Viet­nam vets. There were enough men to fill two vans and a car. We rented two new Chrysler vans and I drove my car. One of the vans devel­oped a grind­ing, whin­ing noise, and it got hor­ri­bly worse as the trip pro­gressed. The damn fool dri­ving it refused my sug­ges­tion to drop it off at a rental place and get another van…or do something…but he pushed on…we made it back home and all hell broke loose…the dri­ve­train was toast, ruined, kaput.
    I remem­ber all the qual­ity issues com­ing out of Dana Spicer Axle plant on State in FWA, too…major sup­plier of Chrysler axles.

  55. Halloween Jack said on April 2nd, 2009 at 5:32 pm

    A brief note: Jalop­nik has a write-up on the Euro-type Ford Fiesta com­ing to the U.S., and notes that car buffs have been beg­ging Ford to bring these to the States for ages.

  56. baldheadeddork said on April 5th, 2009 at 1:37 am

    Hey guys — I’ve missed the site for a month or so. The new design looks great, Nance.

    I don’t set out to be an ass­hole every time I post here, but this might give some ongo­ing rea­sons to won­der. I think these eulo­gies for Rick Wag­oner are the Himalayas of bullshit.

    Let’s dis­sect what Nancy’s friend wrote. Wag­oner got a raw deal because GM’s major prob­lems were mak­ing shitty cars. What could Wag­oner have had to do with that? After all, he was just the CEO for nine years and pres­i­dent of North Amer­i­can ops for three years before that. Just because the CEO has to sign off on every model before it’s approved for pro­duc­tion doesn’t mean he had any­thing to do with the car side of the busi­ness in that time, right?

    Not that it mat­ters because the “shitty cars” indict­ment is the Ever­est of bull­shit. To hear peo­ple like this com­men­ta­tor tell it, GM is as pop­u­lar with buy­ers as Yugo or Dae­woo. But the last I checked, the #1 automaker in the US mar­ket and a very close #2 in global pro­duc­tion was Gen­eral Motors. That’s a neat trick con­sid­er­ing that GM sup­pos­edly only makes cars that buy­ers don’t want.

    And GM is in trou­ble because of the UAW con­tracts? How is it that the labor costs are destroy­ing GM and Chrysler, but Ford has the same con­tract, has seen their sales fall by the same amount — but is sur­viv­ing well enough to not even ask for loan guarantees?

    The same is true for health care costs. How are they killing GM but not Ford? But what really pisses me off about this piece of hack work is how sup­pos­edly intel­li­gent com­men­ta­tors totally miss the story. US automak­ers do pay more in health care than trans­plants even for active employ­ees — because three decades of lay­offs and call­backs have left the US automak­ers with a much older work­force. I used to work for a Tier 1 sup­plier for domes­tics and trans­plants, and the dif­fer­ence in the age of a typ­i­cal assem­bly worker was huge. The work­force at a Toy­ota or Honda trans­plant is close to reflect­ing the pop­u­la­tion as a whole. At a GM plant you have to look hard to find any­one on the line who is under the age of 40, and I’d guessti­mate that the median age has to be close to 50. That means you’ve got a work­force that’s closer to the top of the pay scale and it costs a hell of a lot more to give them health insur­ance. This isn’t because of the UAW con­tract. If Marysville or George­town had been through the same cycle of lay­off and recall as Ford’s Lor­raine plant or the Jeep plants in Toledo, Honda and Toy­ota would have close to the same employee demo­graph­ics and costs.

    But explain­ing the dif­fer­ence in health care costs isn’t the miss­ing story. It’s how the cost of buyer incen­tives used by all of the US automak­ers cost them far more than the dif­fer­ence in employee and pen­sion costs. With the rarest of excep­tions, every model pro­duced by the domes­tics will have at least a thou­sand dol­lars in dis­counts hung on the nose of the car just to get the buyer on the lot, and it’s often mul­ti­ples of that. It comes in rebates, hold­backs, financ­ing incen­tives and some­times all three. It’s self-destructive behav­ior for the automak­ers and the buy­ers (all of those incen­tives on new cars kneecap the resale value of the car you got a rebate on five years ago) but after 30 years of almost end­less rebates the cus­tomers of Ford, GM and Chrysler have come to expect them. For­get the UAW, the addic­tion to incen­tives is the great­est threat to the long-term sur­vival of the domes­tic auto industry.

    Back to Wagoner…How in the name of God can you talk about GM under Wagoner’s tenure and not talk about the dis­as­trous for­ays into finance? Mak­ing GMAC into a major sub­prime and Alt A mort­gage lender was Wagoner’s call. So was buy­ing Ditech at the peak of the bub­ble. And let’s not for­get about the absolute goatscrew that is Del­phi. Spin­ning off the sup­plier side of the com­pany was actu­ally a good idea, but Wag­oner mis­man­aged it so badly that it ended up cost­ing GM billions.

    These three screwups — all Wagoner’s from start to fin­ish — is what bled GM of its cash reserves and made it impos­si­ble to bor­row. Every major automaker, even Saint Honda, are see­ing sales fall by 40 – 50%. But only GM and Chrysler have been pushed to the brink of obliv­ion because of really dumb deals that had lit­tle or noth­ing to do with mak­ing cars.

    GM is fucked because Rick Wag­oner wanted to be Jack Welch when he grew up. He wanted to make GM into a mul­ti­fac­eted con­glom­er­ate that hap­pened to make cars the way GE hap­pens to make light­bulbs, and like GE he wanted the heart of the new com­pany to be in finance. He FUBAR’ed it and prob­a­bly destroyed the com­pany in the process. If Wag­oner is truly the rarest of birds — a CEO with­out an ego — it damn well bet­ter be because he has noth­ing to be proud of.

    Dex­ter:

    It’s my opin­ion that only Amer­i­can Automotive-haters buy Tacoma trucks, when Ford and Chevy make far supe­rior models

    My 2005 Toy­ota Tacoma was made by UAW work­ers in Fre­mont, Cal­i­for­nia. I made sure it was built in Fre­mont before I bought it.

    GM and Ford are far supe­rior? Have you actu­ally dri­ven a Chevy Col­orado? It was hands-down the worst vehi­cle I’ve ever dri­ven. I actu­ally like the Ford Ranger a lot, espe­cially with the four-cylinder and five speed, but Ford’s heavy use of incen­tives over the years have destroyed the resale value of Rangers. If you pushed a Ranger out of a cargo plane and plot­ted its descent to earth it would prob­a­bly be a lit­tle less steep than the depre­ci­a­tion curve.

    My Tacoma gets 25 high­way and 20 in town, cost me just over $14K new and has depre­ci­ated about $3000 in the last four years. Show me another American-made truck that can beat all of that and I’ll buy it.