Filed under: Autoline on Autoblog
THE CLUNKERS PROGRAM EXCEEDED EVERYONE’S EXPECTATIONS
Despite a lot of skepticism from industry analysts, the “Cash for Clunkers” program exceeded just about everyone’s expectations. It brought in new customers, cleaned out a lot of old inventory, and started putting auto workers back to work.
A lot of critics, me included, thought this was just a government giveaway that really wouldn’t have much effect. And while there’s no question it was a giveaway, it did meet the goals of the program: to help reduce America’s dependence on oil and stimulate the economy.
Most impressively, dealers tell me that the Clunkers program brought in customers they had never seen before. They were people who would not normally buy a new car. The only reason they came into the showrooms shopping for new cars was because of the cash they could get for their clunkers. And the dealers are pretty sure they’ll never see most of them ever again.
John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 21 Aug 2009 18:19:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
Why Are German Automakers Exempt from U.S. CO2 Standards?
If you’ve ever wondered why the American automakers have such a hard time competing in their home market, all you have to do is look at the latest move from the American government. It’s going to exempt the worst gas-guzzling European luxury cars from having to meet U.S. CO2 standards. Companies like Mercedes, BMW, and Porsche can continue to sell cars that don’t meet those standards, all with the gentle blessing of generous Uncle Sam.
Do you think for a second that the American government would ever let GM, Ford or Chrysler sell vehicles that pump out more greenhouse gases than the law allows? No, never.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 30 Jul 2009 18:58:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
Ford Says Series Hybrids (Chevy Volt) Are a MistakeThe Ford Motor Company is not going to chase GM and do a plug-in series hybrid like the Volt. In fact, the Blue Oval thinks that approach is a mistake. Instead, Ford is taking a three-pronged attack to developing hybrid and electric vehicles, with one technology building upon the other.
And by the way, Ford, like most other automakers, is putting fuel cell technology on the back burner. Until a hydrogen infrastructure for automobiles is put in place, there isn’t much sense in developing cars that run on hydrogen, especially when that hydrogen infrastructure is many years and many billions of dollars away.
Ford’s approach is to develop strong hybrids, which it already has in the market (Fusion, Milan, Escape, Mariner), followed by plug-in hybrids, followed by electric vehicles. In two years time it will have each of those kinds of vehicles in its showrooms.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 23 Jul 2009 18:28:00 EST. Please see our terms for use of feeds.
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Filed under: GM, Autoline on Autoblog
GM DON’T NEED NO CULTURE CHANGE
If I have to read another article about how GM needs to change its culture, I think I’ll puke. It seems that every analyst and pundit in the business feels the need to write an article about GM’s need for culture change.
They wring their hands about how this is going to take years or even decades to achieve. But I’ve seen enough culture changes at car companies to know it doesn’t have to take very long at all.
Human beings are highly trainable animals. We’re easier to train than dogs! All you have to do is tell us what needs to be done and, if we agree, we’ll pretty much comply.
There’s an old adage in business, “tell me how you’re going to measure me, and I’ll show you how I’m going to perform.” You want people to “change their culture?” Then start to measure them the way you want them to perform.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Tue, 14 Jul 2009 13:59:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
Hybrids Stumble While Diesels Surge
The new-car sales figures for June must be a cause for concern for fans of hybrids. But at the same time they’re very encouraging for diesel proponents. You don’t want to read too much into one month’s sales numbers, but the numbers do tell a story.
Ever since gasoline prices tumbled from their highs of last year, sales of hybrids have tumbled along with them. And while most automakers are shunning diesel engines right now, Volkswagen turned in sales numbers in June that should make everybody sit up and pay attention.
So, are we going to see a battle royale between hybrids and diesels? It’s too early to tell, but here’s what’s going on in the market at this snapshot in time.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 02 Jul 2009 19:26:00 EST. Please see our terms for use of feeds.
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Filed under: Ford, Autoline on Autoblog
Ford Transit Connect: Case Study in Overregulation
The Ford Transit Connect is a cool little van unlike anything else on the American market. In fact, I think it has the capability of becoming something of a cult car. But it’s also a shining example of why the auto industry faces too much regulation.
Even though the Transit Connect is already sold in 55 countries around the world it had to undergo numerous modifications before it could be sold in the American market. And while it’s not at all unusual to modifiy imported vehicles up to our standards, it’s hard to see how some of these changes will help the health or safety of American citizens.
Some of these changes are so ridiculous and inconsequential that it’s actually funny to see what they are. Funny, that is, until you realize all they’re doing is driving up the price of the product.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 26 Jun 2009 16:57:00 EST. Please see our terms for use of feeds.
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Unlocking GM’s Inner Value
Even though it’s bankrupt and the price of its stock has collapsed, General Motors is worth a lot more money than most people realize. And if the company were to take a radically new approach to how it runs its business the payoff could be enormous.
GM’s market capitalization is at ridiculously low levels. The total value of its stock is presently less than half a billion dollars. But the company is really worth a lot more than that. When you add up the value of all the land, buildings, tools, machinery, equipment, patents, research labs, proving grounds and every other asset it has, GM is worth over $140 billion. There’s even more value in the know-how, knowledge and experience of its people.
But how do you unlock all that value?
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 19 Jun 2009 15:59:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
Three Ways to Save the Big Three
Now that the Big Three are finally brooming out all their old legacy costs, they’re going to be in the best fighting shape they’ve been in for nearly 40 years. But how do we make sure they don’t slip back into their bad habits like they have after every other crisis?
A lot of people have a lot of opinions about what’s got to be done, but to me it all gets down to how the executives run these companies. Get them to do the right things and everything else will fall into place.
There’s that old adage in business that goes, “Tell me how you’re going to measure me, and I’ll show you how I’m going to perform.” And while it’s all fine and good to establish specific benchmarks that trigger bonuses, it’s got to go deeper than that.
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 05 Jun 2009 18:27:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
Does Killing Off Dealers Really Help?
Thousands of GM and Chrysler dealers are getting wiped out as part of each company’s bankruptcies. And while the surviving dealers will be much better off, GM and Chrysler are likely to see less revenue, lower market share and fewer service parts sales as a result of this action. Is it worth the trade off?
Actually, debating the pros and cons is now just an academic exercise. It was the Presidential Automotive Task Force which decided that thousands of dealers had to go, then set a quota they wanted met, and told the car companies to go out and do the dirty work. GM and Chrysler didn’t have a choice, but in many cases they acted all too eagerly. Shutting down dealerships fit in beautifully with their long term plans, and now the government was telling them that they could do it for free!
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Tue, 02 Jun 2009 19:28:00 EST. Please see our terms for use of feeds.
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Filed under: Car Buying, Autoline on Autoblog
BOOM TIMES COMING IN THE USED CAR MARKET
The future looks so bright for the used car market that I’m almost tempted to try and get into that business myself. Even though car dealers are going through tough times trying to sell new vehicles, they are going to more than make up for that on their used car lots.
The reason I’m so bullish on the used car business is that we’re facing a looming shortage of good used cars. First off, the new car market has fallen by roughly 7 million units since its peak two years ago. That translates into 7 million fewer trade-ins available in the used car market. And the story gets even more interesting when you start to dig down into those numbers.
Follow the jump to keep reading…
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John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 22 May 2009 09:29:00 EST. Please see our terms for use of feeds.
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