Showing posts with label auto industry. Show all posts
Showing posts with label auto industry. Show all posts

Sunday, January 31, 2010

Toyota: Trouble on Top of the Heap


What happened to Toyota? The world class brand name synonymous with quality is in the midst of an unprecedented recall which has forced the automaker to cease production and suspend sale of some of its most popular models including the bestselling Camry. Two problems contribute to the accelerator getting stuck leading to horrific accidents for drivers who aren’t skillful enough to know how to bring their vehicles under control.

Does this sound familiar? In the 1960’s, it was Chevrolet’s once popular, Corvair, that was assailed by Ralph Nader for its gas tank directly in front of the driver as documented by Nader’s book, Unsafe at any Speed, a work that essentially launched the consumerist movement.

The 1970’s were ridiculed with quality and safety issues from Detroit automakers. The move to subcompacts lead to substandard automobiles including the Chevy Vega which would screw up at any speed and the Ford Pinto that had a bad habit of exploding when rear-ended due to its faulty gas tank design. The 80’s had exploding Chevy pickups whose problems were exaggerated by NBC production teams who added explosives to exaggerate the problem for their primetime news magazine program. In the 1990’s, Firestone tires on the popular Ford Explorer failed causing horrible wrecks. Detroit’s quality was so poor in the 1980’s, one would think maybe someone had forgotten about him or her as a car owner if that person's car weren’t recalled.

All this and other issues set the stage for the rise of Toyota as an upstart in the market in the early 1970’s to total industry dominance in the 1990’s to where they are the world’s best selling brand worldwide and sell the many of the most popular passenger cars in America.

With Detroit on the ropes with only Ford Motor Company not requiring taxpayer bailouts, General Motors and Chrysler fighting for survival, suddenly, the seemingly unphased Toyota, the king of the hill, is recalling its vehicles by the millions. A proper fix is in the works by supposedly week’s end.

How could this happen? Is this what happens when a company finds itself on top of the heap? Smugness and complacency sets in and standards become weaker. Design engineers and a car’s specifications become not as exact and less scrutiny is directed at outsourced suppliers. As General Motors and its Detroit brethren experienced in the 1980’s, so goes Toyota in the new millennium or so it would seem on this occasion.

Now that Toyota has come to terms with the problem, the real measure of the company will be how it responds. Do they fully accept responsibility, fix the problem, and not try to divert blame elsewhere or do they weasel around a total fix? Will they examine their systems, inspect their product designs, and make sure such a problem can never happen again?

Toyota will not come through this undamaged. Just the short disruption in sales will send some buyers elsewhere in the short term, and those who own vehicles, perhaps loyal Toyota owners, thinking about what they had at stake and the extent to which they were subjected to danger might look at other makes when it’s time for their next car purchase.

There’s no question Ford Motor Company has reengineered its company with quality cars ready for sale. To have won Motor Trend’s award for the best car and truck in the same year is noteworthy. The Ford Fusion is right there with the Toyota Prius as a major full production hybrid. General Motors, in absolute tatters a year ago, appears to have Chevrolet turning the corner with attractive new cars including a replacement for the plain-Jane Cobalt with a new Cruise coming to showrooms in the third quarter of the year. The jury’s still out with Chrysler as new vehicles are not replacing the ones the public found so unappealing to begin with. However, regardless of which of the old big three a driver prefers, once again, young men with horsepower on their minds can contemplate Mustang versus Camaro versus Challenger. Alas, Pontiac and its Firebirds are gone as are Plymouths and their Barracudas. However, the pony cars of today have much the same appeal for today’s youth that their fathers and grandfathers had back in the 60’s. And who’s missing in the pony car competition? Toyota!

Toyota faces tough challenges to right its ship and maintain its leadership in the world auto industry. Whether it is Detroit's attempt to recapture its former glory or new entriers into the auto industry with an ever stronger Korean presence and now even India becoming a player, they must deal with their current difficultly proactively and honestly. They need look no further than the Pontiac and Saturn dealers that are in the process of closing up shop to see what happens when #1 takes its lead for granted.

Thursday, May 21, 2009

Michigan Unemployment Zeroes in on 13%


That the Detroit Lions went 0-16 seems like such a distant and silly tragedy when in the real world, unemployment in Michigan has hit 12.9% for April according to The Detroit News. This is the highest since 1983. If you remember what product Detroit had rolling off the assembly line back then, it is little wonder. Want a used Chevy Citation?

Soon, what's left of General Motors and Chrysler will be government jobs but how far can the government go and how can government control yield competitive car makers.

Certainly, if someone visits a Chevrolet showroom, one would find some pretty darned nice cars in the Chevy Malibu and Impala. These cars stand up nicely against their Japanese competition and Ford's Fusion and Taurus. J.D. Power overall ratings place these cars at the top along with Ford's entries too -- as good or better than the Japanese. Sadly, the same isn't true of Chrysler.

While we sympathize with our brethren in Michigan, but shouldn't the market not Washington decide the fate of GM and Chrysler? If GM could shed some weight, they have the muscle to still be a fine automaker if their legacy costs don't kill them. Chrysler has little left that's unique. Perhaps the Jeep product line could be absorbed by another automaker if CAFE standards don't doom it to begin with.

The old wisdom is, "if it ain't broke, let the government fix it until it is." The free market wasn't broken....

Michigan needs to make itself an attractive state to attract new businesses and build an infrastructure to train displaced autoworkers to function in 21st century jobs. This is ultimately what's good for the state and the workers. It's not good for the UAW, and they're the ones with the political clout right now. Traditional unions are more obsolete than a proverbial Chevy Citation no matter how much Obama-nation caves into their every wish.

Chrysler corporation with 55% union ownership is a hen house run by the foxes.

God help the Wolverine State!

Friday, May 1, 2009

Chrysler: From Glory Days to Doom


What does Chrysler pursuing Chapter 11 bankruptcy really mean to America? Does it not seem like this question has not been asked in the right context?

Since the initial energy crisis in the 1970’s, Chrysler, as America’s third largest automaker has come close to the edge before, but this time, its demise looks quite possible. During the last four decades, Chrysler has introduced some fresh ideas into the auto industry, made some bold moves, but also been riddled with a series of failures which have never allowed the company to reestablish a strong foundation on which it could build an automaker of the future.

Plymouth was once the nation’s third best selling auto brand but fell to Pontiac in the mid 60’s. Nevertheless, with a brand lineup consisting of the sporty Barracuda, the midsized, Satellite, and the full-sized Fury, Chrysler’s first tier brand was a major force in the auto industry. Dodge was the second tier, in the same camp as Mercury and Pontiac. Originally, a granny mobile, the Dodge Dart became a sporty compact a little larger than the typical Ford Falcons and Chevy Nova’s and far more spacious than “pony” cars; however, the Dart could be styled up with all the interior trappings and interior options that made the equestrian compacts s popular. The Chrysler brand was for higher end cars, not quite at the level of Cadillac’s or Lincolns, but par with the highest end models of Oldsmobile, Buick, and Mercury. A Chrysler 300 was a giant car with tons of horsepower, lots of room, a sporty attitude, and lots of steel. A top the Chrysler line was their luxury entry, perhaps the most formal looking of them all, the Imperial. While Chrysler did not enjoy the huge explosion of the auto industry on the scale Ford and GM did, Chrysler was a stable company with a product line for slightly different tastes than their larger competitors.

Things started to fall quickly as the 1970’s began. Federal emissions and safety standards drove up costs. Some Chrysler restyling efforts did not catch on with the public, where GM and Ford were cranking out increasingly huge, bloated cars, but Chrysler took the “tank” to further extremes. Pound-for-pound, Chryslers were bigger and heavier than the competition which made them the most vulnerable when the first energy crisis created gas lines and higher costs in 1973. Chrysler’s fortunes fell dramatically, and by the end of the decade, they sought Federal assistance to stay afloat. The Federal Government provided more help buying huge quantities of Chrysler products for government vehicles including Dodge pickups for the military and National Park service.

Lee Iacocca, who became Chrysler’s chief exec after an accomplished tenure at Ford where he helped bring the Mustang to market, provided high-visibility, no nonsense leadership where he put his face out front of the company appearing in ads speaking of how Chrysler was reinventing itself to meet its challenges. His sales pitch, “If you can find a better car buy it.”

Chrysler brought forth some noteworthy innovations. As the Chevy Vega and Ford Pinto were becoming aged entries in the subcompact market with dreadful reputations for quality and design defects, Chrysler borrowed heavily from the technology and design introduced by Volkswagen with its first major product positioned to take over the “Beetle” market, its Rabbit. A four door, front wheel drive, four cylinder car with a fold-down rear seat and almost station wagon like rear access entry became a noteworthy success in 1978 marketed as the Plymouth Horizon and Dodge Omni. The car would continue in production until 1990.

Chrysler provided a popular mid-sized luxury coupe that was more luxurious than a Pontiac Grand Prix or Chevy Monte Carlo, but much lighter and more affordable while providing many of the same features of Ford’s Thunderbird and GM’s Oldsmobile Tornado and Buick Riviera. In the late 70’s, the Chrysler Cordoba was a popular and influential car while Ford turned its pony car Cougar into a mid sized luxury stud mobile built on the Montego/Torino body while the Thunderbird itself became a much lighter and more affordable car on the same frame.

As the 1980’s developed, Chrysler switched over to front wheel drive much more rapidly than GM and Ford, with GM having the only front wheel drive cars in production before the Horizon/Omni with the upscale luxury coupes, the Olds Tornado and Cadillac Eldorado. The “K” car with entries as Plymouths, Dodges and Chryslers, as small midsized cars, became their most stable conventional cars.

In 1984, Chrysler revolutionized the industry when the Plymouth Voyager and Dodge Caravan hit the showroom. The traditional family station wagon did not respond well to resizing. Full sized wagons were smaller in many key areas than their previous mid-sized counterparts. Midsized wagons no longer worked well as the suburban mommy-mobile that could accommodate the kids, the dog, the groceries, and the loot from the mall. Ford and General Motors were thinking in terms of their truck division. As they introduced smaller pickups, Ford Rangers and Chevy S-10’s, they took a similar approach to their cargo vans. Chrysler was ahead of the curve. They saw the market not in terms of a more economical entry into their truck market, they saw the potential for the family market. Almost overnight, the minivan replaced the station wagon as the ultimate mommy mobile, the standard for the soccer mom. Chrysler hit it right with features that moms loved like usable cup holders, a console with storage room, and could fit into normal sized parking spaces with ease unlike the full-sized wagon. Ford and GM would struggle for years to get the minivan concept right.

Generation X Americans and younger perhaps don’t remember when the domestic auto industry was almost the big four. American Motors became a complete car line and took on another bonus acquiring Jeep. The industry crisis of 1970’s was especially harsh to American Motors who first partnered with a European company (sound familiar) Renault to bail them out, but when that failed, American Motors appeared doomed apart from the segment Jeep fulfilled. Their only vehicle left was a small midsized, Eagle, which was the only domestic passenger car with all wheel drive. They produced the traditional Jeep which was branded, the Wrangler. American Motors had an asset that would lead to another product revolution in Detroit, the Jeep Cherokee, bigger, with more carlike features than a Ford Bronco which by then had become based on the “F” series pickup.

As Chrysler quickly satisfied its loans, it assumed a growth posture first partnering with Japanese automaker, Mitsubishi in 1983, looking for improved technology for more emphasis on smaller cars, but Chrysler’s big move came in 1987 when they acquired what was left of American Motors. Keeping some connection to the AMC passenger car line, Chrysler introduced a sporty mid-sized sedan as the new Eagle, but it had similar Dodge and Chrysler models.

Chrysler entered the 1990’s looking hopeful. Between innovative and ordinary products, the “wow” features and the practical, the #3 American automaker had a decent balance of products between the Dodge, Chrysler, and Jeep divisions. Plymouth had become an unnecessary duplication of Dodge products and the attempt to market Eagle automobiles with no real distinction apart from similar Dodge and Chrysler products required some reorganization first dropping the Eagle then trying to figure out what to do with Plymouth.

In 1995, Chrysler took bold steps to attempt to once again become a major player in the full-sized pickup market that had become the runaway success of the Ford “F” series with Chevrolet and GMC far behind. Dodge introduced a radically redesigned “Ram” pickup with bold styling and plenty of up-to-date features to attract much attention. While the Ford truck continued to dominate the market, Dodge hopped on the growth wave and once again became a major player in the pickup truck industry. The following year, they redesigned their smaller Dakota, the only small pickup to offer V-8 power.

Entering the new millennium auto companies were truly world operations. Ford and General Motors had robust operations around the world particularly in Europe and Australia for years. Japanese and European automakers were opening factories in the United States.

Chrysler did not have this world market. Meanwhile, Daimler, the parent company of Mercedes Benz and other highly elite products sought to expand its global presence and enter the big car market. In what was supposed to be a merger of equals, Daimler-Chrysler was formed in 1998. Changes were prompt and drastic. By 2001, the Plymouth brand was eliminated. Dodge became the entry level full line company with matches for Ford and Chevrolet on every level. Chrysler was the premium marquee. Jeep exploited the growing SUV market. Mercedes technology became integrated in American models most notably the Chrysler 300.

While Chrysler seemed to be doing well in the early 2000’s, it was not a happy marriage on the other side of the Atlantic. The German ownership group sought to dismantle or unload Chrysler. Cerberus, a private equity firm, purchased in excess of 80% of the company forming Chrysler LLC in May 2007. Immediately, the UAW went into attack mode attempting to bleed the new American owned company for every concession it could take while Ford was restructuring and GM’s struggles became more severe. In October, 2007, the UAW struck, but the strike lasted less than a day. From that point forward, Chrysler’s fate seemed to be sealed. Meanwhile, fuel prices were edging up then skyrocketed to where in early 2008, gasoline was over $4.00 a gallon in much of the United States. Chrysler’s market consisted of mini-vans, SUV’s, luxury and performance sedans, and sporty performance automobiles. Chrysler, namely the Dodge brand, was even worse off than Ford, king of the SUV and pickup truck and a bloated stumbling, fumbling GM. Against this backdrop, the excitement of a truly beautiful entry into the new pony car market, the reinvented and reintroduced Dodge Challenger could hardly generate the excitement to bring buyers into Dodge salesrooms. Initially, the Challenger was geared toward the high performance market not having some of the less powerful versions like what Ford always offered with the Mustang.

Thus the Chrysler death march began its tortured journey to bankruptcy. As the explosion of fuel costs helped hasten a severe recession, Chrysler and its ownership group was not prepared to respond.

Ford had seen the writing on the wall and met many of the hard issues head on before the fuel cost explosion and recession hit. While Ford is not profitable, they have at least provided for sufficient stability to remain independent and able to develop new products barring even worse unexpected chaos in the automotive market.

While General Motors fights for survival facing the same external pressures as Chrysler but having its own severe struggles threatening its survival, General Motors has some excellent products with hybrids even as large as a Cadillac Escalade on the market, General Motors must shed operations no longer successful focusing on Chevrolet, Buick, Cadillac, and GMC to carry the once mighty carmaker forward. While many of the same mistakes that took Oldsmobile from a highly popular brand to nonexistence have taken their toll at Pontiac and Buick, a streamlined corporate structure and proper concessions from labor could yield a hopeful future for what remains of GM. General Motors biggest enemy is the hostile attitude toward powerful corporation that permeates all aspects of Obama administration behavior.

Japanese automakers once lead the industry in quality. Now Ford and General Motors have equaled or exceeded the Japanese brands consistently on every vehicle category. Recent J.D. Power overall quality ratings tell the story which is unkind to Chrysler whose vehicles still lag behind the competition consistently scoring the lowest ratings in most classifications.

Given Chrysler is met with strong competition against virtually every one of its products where the no competitor scores lower on quality ratings, why should they continue? While we can nostalgically remember their beautiful machines of yesterday, a macho looking Dodge Ram pickup or pimped out Chrysler 300, these niche vehicles will not give Chrysler the spot in needs, the middle class family driveway.

Can anyone offer an argument against the obvious proposition that Chrysler has been fatally and irreversibly wounded that can only be sustained through massive life support efforts?

Fiats are junk. They are ugly little crappy cars with a horrible reputation for quality. Fiat tried to gain market when the demand for small, fuel efficient cars exploded in the mid-70’s, but as Toyota, Honda, and Nissan roared on the scene successfully, American buyers pushed Fiat in the ocean for the ugly, uninspired, miserable, constantly breaking down garbage they were. While they survive in Europe and in other world markets most notably Brazil, they generate no excitement looking more like East German Trabant’s for the new millennium than the kinds of cars Japan and Detroit market today. While Fiat’s reputation for making fuel efficient vehicles must sound good to the environmental extremist bias in the Obama administration’s philosophy, we need to look at the big picture. Fiats might be more fuel efficient than most cars on the market today but so are lawn mowers.

The challenge is how to operate more like Ford, Toyota, and Honda. That’s a battle Chrysler won’t win.

Michigan Metal (Washington and Wall Street Madness)


While in the escape world of NASCAR competition, a Dodge (Chrysler) stands in number one and Chevrolets (GM) occupy the next three positions before Toyotas and Fords show up, in the real world the story is quite the opposite. While Toyota has become the world's most powerful automaker and Ford is the one stable American company, General Motors gave a glimpse of its future with Pontiac, Saturn, Hummer, and Saabs going the way of the Oldsmobile and Plymouth. Even more earthshaking, Chrysler has filed for bankruptcy. If it will survive, the new Chrysler Corporation will be 55% owned by the UAW (United Auto Workers UNION!!!) and 35% by Fiat, the Italian automaker of small cheap cars. The remaining ownership state is mostly the United States government and 2% the Canadian government.
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While the news media and Obama administration single out unyielding lenders who refused to cave in to the terms of the suggested bailout agreement for Chrysler, the truth of the matter of how it came to the Chapter 11 filing is an entirely different matter. We'll examine the development of Chrysler's downfall since its golden days of the 1960's. Meanwhile, we object in the strongest terms to the demonizing aimed at the lenders who held their ground in this matter. While the president accused these lenders including the Oppenheimer fund of seeking an "unjustified taxpayer-funded bailout" reality for those firms is quite different. Oppenheimer indicated they were "unfairly asked our fund shareholders to make financial sacrifices greater than the sacrifices being made by unsecured creditors."
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The cold hard facts are that the investment funds holding Chrysler debt determined they stand to get a greater return for their investment under bankruptcy terms than the amount they could get under the terms of the bailout plan. Offering more specifics, these bond holders issued the following statement in the Wall Street Journal:

"Under long recognized legal and business principles, junior creditors are ordinarily not entitled to anything until senior secured creditors like our investors are repaid in full. Nevertheless, to facilitate Chrysler's rehabilitation, we offered to take a 40% haircut even though some groups lower down in the legal priority chain in Chrysler debt were being given recoveries of up to 50% or more and being allowed to take out billions of dollars. In contrast, over at General Motors, senior secured lenders are being left unimpaired with 100% recoveries, while even GM's unsecured bondholders are receiving a far better recovery than we are as Chrysler's first lien secured lenders,"
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While being cast as the ultimate symbols of fat cat greed, the investment funds not accepting the Chrysler plan represent pension funds and many 401k investments. Their fiduciary responsibility is to look out for their interests not Chrysler's. They are in the business to make sure their investors, not wealthy business tycoons but average Americans providing for their retirement, get the maximum return for their investment in a financial climate where almost all investments have lost value. They are not charities who are morally committed to Chrysler's fate.
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While Barack Obama attempts to make it sound like these lenders have a moral or patriotic duty to comply with his administration sponsored agreement, to sell out their stakeholders for the sake of political pressure would be dead wrong.
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What this mess reveals once again is Barack Obama's totally inability to understand the workings of a for profit economy, how businesses operate, and what their corporate responsibilities are. While the loss of jobs at Chrysler, its dealers, and suppliers is a worthwhile venture, political motivation cannot be denied. Obama's cozy relationship and powerful support of organized labor is unprecedented.
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In the Capitalist system, success is rewarded and failure has consequences. The recent history of Chrysler and the heavy handed interference has rendered them a weak player against strong competition. With runaway gas prices and the recession that followed, Chrysler no longer had high volume profitable vehicles in its offerings. Their most desirable vehicles are niche products like Jeeps, upscale minivans, and the luxury sedan, Chrysler 300. Their products to compete against Chevrolet Impalas, Toyota Camry's, and Honda Accords just don't match up. The cold hard truth is documented by recent J.D. Power ratings of mid sized sedans. Citing the "overall quality" ratings, the Chevy Malibu and Ford Fusion both achieve 5 star ratings, the highest in the industry while the Toyota Camry rates 4 stars. Rock bottom on the list with 2 stars are the two Chrysler products, the Dodge Avenger and Chrysler Sebring.
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The sad news for Chrysler is clearly General Motors has something to save with its top rated Malibu. Bailouts alone can't substitute when their product is inferior to all its competitors. Chrysler products are also the lowest rated among full sized cars, large pickups, and compacts. The one bright spot, mid-sized SUV's where the Dodge Durango achieved the highest distinction.
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Does Chrysler have a future worth saving? Sadly, Kurt Busch leading the Sprint Cup standings and the Dodge Durango's ratings are tiny little blips on a line pointing straight down to extinction.
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If only the old myth of win on Sunday, sell on Monday were still true, Dodge and Chevrolet would be leading customers into the salesroom boosting Chrysler and GM into the winner's circle.



Tuesday, April 28, 2009

Farewell to Pontiac







Whatever Happened to Pontiac Excitement?


Who could ever believe this could happen? Soon Pontiac will be no more.

The name Pontiac used to reek of coolness! From developing the “wide-track” concept at the dawn of the 1960’s, by the mid-60’s Pontiac was on the cutting edge of highly attractive automobiles whose high performance models were the rage.

Consider the modest Pontiac Tempest introduced as a plain-Jane small to midsized car in 1961. It offered a Lemans model that was more decked out, but it was still a relatively modest car. In 1964, the Pontiac mid-sized car had new skin and a new attitude offering almost all the goodies available on the full-sized Pontiacs. However, there was a high performance option that would start a new rage in Detroit, the GTO performance package. For $296, the customer got a powerful 389 V-8 engine with all kinds of performance goodies and extra styling add-ons that said “fast.” This was the dawn of the muscle car boom in Detroit as Chevrolet would add the Malibu SS (then SS-396) and Oldsmobile would add a 442 to its Cutlass line. Even Buick featured a GS model. Soon Ford introduced the Fairlane then Torino GT models with similar Cyclone models with Mercury. Chrysler introduced a Satellite GTX for Plymouth, attempted to upstage the whole muscle car stable with their fastback Dodge Charger, then they even introduced a stripped down to just the muscle, Road Runner.

Meanwhile, the full-sized Pontiacs were beauties with some of GM’s boldest styling and characteristic split grill design, the Bonneville was the biggest and the baddest while the Catalina and Executive were for more pragmatic needs. Also, on the shortest full sized wheelbase was the sporty big boy, the Grand Prix.

While Chevrolet introduced the Camaro in 1967, later that model year, Pontiac was not to be denied. The Pontiac Firebird raced on the scene as Pontiac’s entry into the Pony Car market. From the side, it looked almost identical to the Camaro whose platform it shared, but the taillights and rear styling came directly from the GTO and the front end view was classic Pontiac with a more aerodynamic twist.

Forty years ago, things couldn’t have been better for Pontiac, the nation’s third best selling brand only behind Chevrolet and Ford. As high performance gave way to fuel economy and safety in the 1970’s, the Pontiac’s image became harder to maintain, but the Firebird and its high performance, TransAm, were still widely popular cars especially when Ford converted its once proud Mustang to little more than a jazzed up Pinto. The 1980’s saw Pontiac’s full-sized Bonneville regaining some of the most attractive styling of all full sized cars but quality control issues started to plague the brand. Their midsized cars had no sizzle and no unique features to draw customers. In the 1990’s, the Grand Am would be a relatively popular compact model while the Grand Prix became the nameplate for their midsized fleet. Pontiac was no longer the big player it once was but still had a steady following.

The new millennium would be cruel to Pontiac. The Firebird and TransAm were discontinued after the 2002 model year, then as if not learning the lessons which lead to the end of Oldsmobile in 2005, Pontiac discarded its familiar marquee names to a series of cars all starting with the letter, “G.” The “G” cars had no “gee whiz” appeal, but instead spelled “get lost.” Efforts to introduce a high-powered sports sedan reviving the GTO nameplate proved a miserable failure as a stable of G-3’s, 5’s, 6’s, and 8’s do little to capture the car buyer’s imagination.

As Pontiac’s demise is announced, some will consider it a death brought on by fierce competition particularly from Honda and Toyota, but in reality, it should probably be noted as suicide. Pontiac was a brand name that had everything going for it a generation ago, now it hobbles into nonexistence a faceless brand with nothing unique, no “it” factor to stay on the road.

Who could ever see what Pontiac accomplished in the 60’s and Oldsmobile gained in the 70’s would have ever seen both brands dying out so miserably soon after the dawn of the new millennium. They used to know their customers and built cars that wowed them. A once great corporation like a mighty freight train speeding off its track killed these great American brands. Lovers of Michigan metal must be saddened by these losses.

Pontiacs were hot. Pontiac excitement meant high performance and sexy styling. They were a notch above the everyman Fords and Chevy’s but were priced within the reach of those standard brands.

Pontiac lost its identity up to now where the “G” cars are hardly worth a car lover’s “gee whiz” so now it’s good bye to a once wildly popular brand. And then there were four: Chevrolet, Buick, Cadillac, and GMC. Oldsmobile is gone. Saturn, Hummer, and Saab have been left by the wayside, now Pontiac. Only the new Mustangs, Camaros, and Challengers give today’s generation a glimpse of the kind of excitement Detroit brought forth every September with Pontiac often leading the way in the “excitement” department. In a world of today’s Fords, Toyotas, Nissans, and Hondas – boring is the word.
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Friday, April 17, 2009

45 Years of Mustangs


Forty-five years ago, Ford Motor Company started a revolution in the auto industry where small cars were no longer el-cheapo cast-offs but quite sporty and stylish with the introduction of the Mustang. Through its history from its loveable introduction it grew bloated, got chopped down and plopped atop a Pinto body, completely redesigned so nothing much looked like a Mustang, and then in the 1990's, Ford rediscovered the simple beauty of the original and began incorporating classic Mustang styling in its new models. Finally, in 2004, Ford got it right. The car marking 40 years of Mustang history was a car of the new millenium, but Mustang through and through.


Since then Dodge has brought back the Challenger and Chevy's reintroduction of the Camaro just hit the street in the last two months. But both "pony" cars were put in mothballs before their reintroduction while there has always been a Mustang on the market.

Tuesday, March 10, 2009

Ford Mustang Introduced 45 Years Ago Today

Look at these pictures. Aren't they beauties? The 1964 Ford Mustang started a revolution when introduced 45 years ago perhaps the first vehicle specifically designed to capture a certain sense of "hip" for the baby boomer generation just coming of car buying age in 1964. While sharing some of the guts of the standard Ford compact, the Falcon, the Mustang incorporated sports car features and a sense of style reserved for much pricier cars geared toward luxury like Thunderbirds and Cadillacs. Ford billed it as a sports car that a secretary could afford.

Over the next two and a half years, the Mustang revolutionized the auto industry. A small car was no longer a cheap compromise. The "pony car" was hip. It offered all the options available on the full-sized standard cars but offered brisk performance and relatively nimble handling. Plymouth restyled its compact essentially installing a giant aquarium on the back of its Valiant making the Barracuda the Mustang's first competitor. From the door forward, the 'Cuda was essentially a jazzed up Valiant, but in attempts to look sporty somewhat emulating the Corvette Stingray, it featured a massive rear window fastback, a very expensive item, if damaged. While Plymouth's entry brought a few more buyers into their dealers, it was hardly head-on competition to Ford's mightly little horse that was the talk of the industry.

In 1967, the real competition began as General Motors introduced it's pony car, the Camaro in Chevy trim or Firebird in Pontiac trim. One could easily be mistaken for the other from a side view. They were sharp-looking cars, very worthy competition for Ford's runaway success. Meanwhile, Mercury would produce a sister car to the Mustang, its first incarnation of the Cougar, built on the Mustang platform but very different looking with a longer wheelbase and more luxurious styling.

Once the competition was set, all the players, including American Motors who had their own Javelin, added more high performance options and bigger, more powerful engines. The Barracuda was no longer a pimped out Valiant but its own car allowing a Dodge spin off, the Challenger. The Mopar entries would sport the massive 426 hemi and 440 engines while the Mustang featured a Boss 429. The midsized cars in Detroit's lineup were no longer plain Jane smaller versions of their full sized counterparts. They borrowed styling elements from the pony cars becoming the real high performance platform. Full sized cars became more exclusively devoted to luxury not sportiness.

All was well in the late 60's as all divisions of the Ford, GM, Chrysler, and American Motors had a full complement of products from pony cars, standard compacts, midsized, full sized, and personal luxury choices. Performance, comfort, style, and entertainment options allowed drivers to personalize their vehicles to fit their own unique sense of style.

The excitement was to be short-lived. Federal environmental standards and insurance rates put the squeeze on high performance products, then came the first Arab oil embargo making Detroit's cars bulky old Dinosaurs ready for extinction. A curious thing had happened to the Pony cars, they got much bigger and heavier no longer having the basic simplicity that make them so popular to begin with.

1973 would be the last year of the Mustang after only a ten year run. Ford had a popular smaller sporty car, the Mercury Capri and Toyota's Celica was capturing much of the Mustang's old market as smaller, more fuel efficient sporty compacts. The Mustang style continued in 1974 working off of the Ford Pinto platform, and while hardly the original Mustang, the Mustang II started off as a very popular entry. Sadly, it was not a good car and quickly its time was over. The Mustang appeared doomed, but its 3rd generation came alive for the 1979 model year, larger, lighter, more nimble, and a little more performance but it looked nothing like the original Mustang. This would be Mustang's longest lived incarnation as restyling efforts made subtle efforts to look more like a real Mustang, but by 1990, the Mustang was looking like it was gone again. The front wheel drive import, the Probe, looked like Mustang's replacement, but Ford found a loyal base that refused to let the pony car die yielding the first attempt at a retro Mustang in 1994, after 30 years of Mustangs.

The 1994 Mustang was a beauty. It had styling touches from the original including the 3 element tail light notion, side sculpting, and a grill design with the pony right in the center. It was clearly the leader of the pony car field once again as the final generation of the Camaro and Firebird simply lacked character. More and more emphasis was returning to high performance to where the 1999 styling refresh looked like the 1994 vintage Mustang on steroids.

The pony car looked like an endangered species in the new millennium as GM terminated the Camaro and Firebird after the 2002 model run. Still, the Mustang held on.

The 2004 North American auto show, 40 years after the original Mustang brought forth another surprise, presenting a styling concept called "retro-futurism." The result would be the 2005 Mustang so faithful to styling concepts of the first generation of Mustangs but just as unmistakably a car of the new millennium. The new Mustang was such a hit that it didn't take Chrysler long before they introduced a Dodge Challenger revival so successful in its car show debut, a production model followed. Chevrolet would not stand still for long charming the car show enthusiasts with a resurrected Camaro that will hit showrooms next month.

These are dark days for Michigan metal, but car enthusiasts can help but feel the effects of a mysterious fountain of youth when catching a glimpse of the latest Mustang and its Chevy and Dodge kin. Can these vehicles, their bold styling and fun loving character influence the rest of Detroit's product line that is so generic, predictable and boring?

Congratulations to Ford Motor Company for the continued success of the Mustang and not giving into impulse to discontinue this legend when times got rough. Could the spirit behind the newest Mustang be part of the same spirit that has made Ford the one Detroit automaker that hasn't hit us up for some operating coin and loan guarantees.

Success finds its rewards even in tough times.



Sunday, February 8, 2009

Michigan Metal

Retro-styling or hard reality? Which car best represents the future of the United States automotive industry?



I saw a new Mustang GT convertible on the parking lot today. What a beautiful car, its styling sleek and stylish. One could think of the original Mustang of 1964 and its descendents until the Mustang mystique was squeezed into a Pinto body as the Mustang II in 1974. Although it still looked like a Mustang in many respects, everything about it was a jazzed up Pinto, and folks have said something about putting lipstick on a pig?

Michigan’s unemployment rate is over 10%. Things aren’t much better in Indiana and Ohio, two states with a heavy interest in the automotive industry. Through out the country, automotive factories have closed down. Here in Baltimore, the Chevy plant died when GM discontinued the Astro van, but the writing was on the wall when they stopped making the midsized cars of yesteryear when beautiful Malibu’s, GTO’s, Cutlass’s, and Buick Century’s rolled off the assembly line.

Your writer was born in 1953. I was a very little boy when I was first blown away by Michigan Metal, our neighbor had just purchased a white 1957 Ford Fairlane 500 convertible with a red interior. They said it had a Thunderbird engine. A few years later the doctor who lived across the street got a giant Chrysler 300 convertible then a 1963 Corvette Stringray, the one with the split rear window. By the time I was in 6th grade, I loved building car models. My model building started with the 1964 automotive year and continued through 1968. In ’66 to ’67, I built every single model that AMT and another supplier had that represented everything from a Ford Falcon to Chrysler Imperial. I subscribed to both Motor Trend and Hot Rod going crazy over the sneak previews of the next year’s autos. Each summer, I went to Pontiac, Michigan where my grandparents lived. How I loved the trips to the Pontiac plant where they build both full-sized and mid-sized Pontiacs, such beautiful cars in the mid 60’s and Dearborn where Ford assembled the Mustang and Cougar. If we were out there too late for that model year, the plants would be closed, but we’d see the haulers out on the Ohio and Pennsylvania turnpike rolling the new cars for the next fall east. Though they tried to cover them with tarps, we could get glimpses of the front and rear styling and occasionally the side sheet metal. A lesson in Michigan geography was a lesson in the General Motors product line. Flint was the home of Buick and some Chevrolets. Lansing was the home of Oldsmobile. Detroit built Cadillac’s and Chevrolets. Guess what they built in Pontiac? Well, they also built some GMC trucks and buses. Dearborn was synonymous with Ford. There was also the city with in the city, Hamtramck, where Chryslers were built by a largely Polish ethnic community.

Latee ach September, my father and I would start off a Saturday morning at the start of the big north Baltimore commercial drag, York Road, work our way down into Towson stopping at every dealer. We had them all except Cadillac which only had two dealerships in the Baltimore area. My dad would scold me not to get too excited at the Chevy dealer, but it was okay to drool over the Corvette. He was a Ford man through and through. He only bought two cars that weren’t Fords or Mercury’s my whole life, a Morris Minor as the family’s first second car. Lots of people were getting Volkswagen’s but he’d have no part of that. Briefly, he had a 1966 Oldsmobile Jetstar 88’s, a beautiful car, that replaced the Morris Minor while mom was driving the second of two Ford Country Squire’s the deluxe mommy mobile of the era. The 1964 Squire was briefly my first car. I could fit the whole gang in it, and for a buck’s contribution from some of the passengers we could drive forever with gas at $ .27 a gallon even though that big steel machine got around 14 mpg. From cars around 1955 to the early 1970’s, there were so many classics. Is there any young man even today who can’t recognize an original Thurnderbird or 57 Chevy?

In 1971, Chevrolet introduced the Vega and Ford introduced the Pinto. How could we have ever known that these stinking little “subcompacts” were the first signs of the decline of the American automotive industry? They were priced to obliterate the Volkswagen Beetle and there were a few little Toyotas and Datsuns starting to show up around town. The midsized cars were becoming the most interesting cars. Meanwhile, the full-sized cars were getting so large and bloated and the revision of the “pony cars” lost the simple beauty of the originals. Gas mileage didn’t matter when gas was below $.30 a gallon.

Washington started to have its say in the late 60’s but most of the original regulations made sense. The 1965 Corvair was a lovely looking little compact car, but Ralph Nader came out with “Unsafe at Any Speed” showing what the news media failed to cover. They were bombs on wheels with the gas tank in front of the passenger where there was no protection given it was a rear engine car. Likewise, cars had no pollution controls and those who can remember driving along the major expressways in urban areas particularly in the industrial parts of down, the air pollution was choking even smarting the eyes.

Nobody saw it coming unless traveling in the Middle East, but the unthinkable happened in 1974 when the surrounding Arab states invaded Israel only to be defeated horribly with Israel taking territory from the surrounding countries in response to create a little safety zone, but the Arabs realized the power they had was their oil. They could punish Western nations who supported Israel but cutting off the oil supply. Over night, gas prices skyrocketed, and gas was in short supply. Gas lines extended for blocks on every major street in America. Some states rationed gas and began lowering speed limits. The Feds responded by lowering the national speed limit to a measly 55 mph, a measure few citizens obeyed and eventually common sense would set in and the law was revoked. The government started setting mileage standards for the auto industry. Detroit responded by bringing out new smaller cars and downsizing existing models. Suddenly, the Pinto and Vega were in high demand, but as more people drove them, the obvious was clear, they were terrible cars in every respect. Vega engines had an awkward problem of blowing up, but worse, Pintos would explode when rear-ended. In 1977, General Motors downsized its full-sized cars for the first time. All of a sudden, everything from a Chevrolet Impala or Caprice to Buick LeSabre were shorter and narrower than their midsized counterparts. Even the elegant Cadillac DeVille got shortened. GM then downsized its midsized fleet. What was the hottest selling car in Detroit, the Olds Cutlass Supreme, was miniaturized into a faint shadow of its former self. From Malibu’s to Century’s the code word was BORING, but they were also cheap, shoddy pieces of junk. Not to be outdone, Ford responded with the introduction of the Ford Fairmont and Mercury Zephyr, and downsizing the LTD, Mercury Marquis, and all Lincolns. Their midsized line became totally ambiguous as familiar lines vanished and failed to stabilize until Ford finally got it right for many years with the awkward looking, bar of soap cars, the Ford Taurus and Mercury Sable.

Almost overnight in the mid-70’s, Datsuns, Toyotas, and Hondas were every where. The ultimate of cheap, but a very high quality cheap, was the Honda Civic. Quickly, Toyota Corollas, Honda Accords, and Datsun 510’s were everywhere. One of the sexiest cars on the market was the Datsun 240Z. As model confusion and crappy quality dogged the mainstream domestic midsized market, the Toyota Camry and Honda Accord became the most popular cars in the country.

Somehow, despite all that happened. Detroit never got the message. Chrysler was mortally wounded but somehow sprung back with Federal loans and Lee Iacocca’s vision. Ford seemed to stay a little ahead of the curve in the late 80’s and early 90’s. It would be hard to notice due to their largesse, but General Motors was perhaps the most self-destructive of all. Can anyone remember the second round of downsizing of the Cadillac Deville? How sad. They had almost none of the traditional Cadillac elegance, but by 1991 they were able to cosmetically restore it to something that was worthy of the Cadillac crest. Many cars had wretch paint jobs that would start to oxidize after months. Quality issues and design defects by all three automakers were so widespread that almost any American car buyer could expect at least one or two recall notices. American Motors quickly folded and became part of Chrysler, but they had one product that would be a huge influence on Detroit’s future, the Cherokee.

Somehow, despite gas going as high as around $1.50 in 1979, the 80’s, 90’s and into the new millennium saws relatively cheap gas with only minor spikes in fuel costs such as during the first Gulf War. In 1991, Ford saw the potential of the Jeep Cherokee ditching its small sized Bronco II and introducing the Ford Explorer. Soon the Mini-Van, Detroit’s economical answer to replacing the mommy-mobile station wagons were obsolete as the mid-sized SUV took off like gangbusters. Eventually, even Lincoln and Cadillac would be in the SUV market with models based on their company’s Ford and Chevy large SUV’s based on the fullp-sized pickup chassis. Meanwhile, all of a sudden, even yuppies needed full-sized pickup trucks.

The Detroit cash registers were starting to ring again, but General Motors and Chrysler were still failing. The Japanese automakers continued to encroach on market share while the Korean Hyundai became mainstream and soon the KIA would follow.

Surprisingly, by the late 90’s, Ford and General Motors were actually building darned good cars. Their quality rivaled their Japanese counterparts, but car buyers had lost interest. Many baby boomers hit car buying age right as the downsizing fiasco started in the 1970’s and became accustomed to Japanese cars right away. Boomers didn’t feel the prejudice against Japanese cars as those manufacturers had built the weapons of war that killed thousands of American soldiers in the Pacific in World War II.

However, the glow of Michigan Metal had other factors causing it to rust away into dust. Through out the 60’s and 70’s, times were good. An auto industry strike against one of the big three could cost vital market share against its competition. Detroit had no sense of what the future could or would bring never realizing that even if everything continued rosy, they were building a model that was unsustainable in legacy costs. Auto workers were given incredible pension and benefits for life. The obligation on such costs were enormous and would escalate as the employees from the “Great” generation retired and the baby boomers settled in, but what would happen when the boomers started to retire?

Detroit’s workforce has contracted enormously since the 1970’s. Entire cities in the rust belt are essentially ghost towns in 2009. Flint, Michigan as one example, is a virtual wasteland. Here in Chesapeake country once proud factories in Baltimore, the famous “Chevy” plant, and Norfolk, the venerable Ford “F” series pickup are gone.

Nothing points to the changing face of the auto manufacturing landscape better than looking at NASCAR’s Sprint Cup. The body styles featured are the Ford Fusion, Chevrolet Impala, Dodge Charger, and Toyota Camry. Once the rules were American only, but they first had to bend a little when Dodge became a product of Daimler-Chrysler, then a German company. How could they keep Toyota’s fat bankroll out of the sport? Lots of good old boys were now driving Toyota pickups, and gulp, even full sized pickups as Toyota introduced its Tundra. Here’s the stark revelation. Look at where the cars are built. The Ford Fusion is built in Mexico, down in the land of drug lords and civil chaos. The Chevrolet Impala and Dodge Charger are built on the north shore of Lake Ontario near Toronto in Canada. The most American of all, the Toyota Campy built in Kentucky and Indiana!

The recent upsurge in fuel costs doomed Detroit’s remaining cash cow, the SUV and pickup truck market. Look at how much Ford depended on that market as most of their automobiles seem destined to fleet sales, company cars and the rental industry. Ford still builds the Crown Victoria but none are available to everyday consumers. They are built exclusively for fleet sales, mostly as police cruisers. What’s the small town sheriff department to do that maybe only has one to five cars?

The legacy cost of each American car is huge, a differential Detroit has to overcome to compete head on with the Japanese and Korean vehicles. How unfair can it be for those already retired who counted on a stable pension as part of their career compensation who never gave a though of having to save for retirement given the promise of steady income now wondering what will happen if any of the big three should fold or the workers of today sellout their processors to hold on to their existing jobs. Almost certainly, they would get some support from the government, but not at the level they were promised.

Today, most parking lots are full of virtually indistinguishable cars as a Mercedes doesn’t look that different from a Hyundai, and Ford, Toyota, Chrysler, Honda, General Motors, Nissan, Volkswagen, and Kia vehicles all look so similar. How is it that so many cars now are painted shades of gray and what few colors are still available, red, blue, and green are such dark muted colors? BORING! Only the retro VW Beetle and a few other small cars dare to be colorful even to the point of late 60’s tackiness.

The days of September excitement are gone as cars change so little over the years and almost none of them have any flare for style. Give Chrysler credit for pretty bold styling for its newest incarnation of the Chrysler 300. Perhaps its huge grill is supposed to be a “retro” touch to the big Chryslers of old.

How perfect the new Mustangs look. They are cars of the new millennium in almost every respect, but so recognizable as Mustangs of old. They are beautiful cars. Dodge responded with its retro Challenger which is likewise so faithful to the original. Soon Chevrolet will do the same with the reintroduction of the Camaro which goes back to the original design, mostly after the first body’s initial revision. All of these cars are so damned gorgeous, but all of them are essentially one or two passenger cars so as much as they fill a niche, they’re not the staple that cars like Impalas, Taurus’s, Malibu’s, Camry’s and Accord’s represent. The newest Camry is just plain ugly!

Are the new “pony” cars a glimpse of the potential the future could bring or just a little baby boomer sentimentality? Given what’s happened in Washington the last few months, one has to wonder as millions of taxpayer dollars have gone to General Motors and Chrysler just to meet their current expenses. So far, Ford avoided taking the dip, but all is not rosy in the land of the blue oval.

Government assistance means more government control, and given the recent energy price surge brought on demand for more fuel efficient standards and the current regime, the Democratic party, will surely seek pollution standards that will darn near demand emission perfection, Detroit’s ability to build quality, appealing cars will be further challenged while Toyota and Honda seem able to adjust at the snap of a finger.

It’s so easy to love the full-sized pickups and the pony cars, but is doing so living in the past? Given a camel is supposedly a horse designed by a government committee, we hate to think what Washington’s role in forging Michigan Metal could create. Given our seemingly irreversible march to socialism, the retro pony car could soon become a Trabant.