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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Filed under: Autoline on Autoblog
PLENTY OF LIFE LEFT IN THE PISTON ENGINE
There are all kinds of ways to boost the fuel efficiency of a vehicle. Hybrids are becoming more and more popular. Clean diesels seemed poised to make major inroads in the market. And even though they’re a ways down the road, hydrogen fuel cells sure look promising.
But the problem with these technologies is that they add considerable cost to a car. Toyota has probably got the cost of its hybrid system down to about $2,500, but that’s still a lot of money to add to the cost of the powertrain. At their present level of development, clean diesels probably carry $4,000-$5,000 worth of extra emissions control equipment. And hydrogen fuel cells aren’t quite ready for prime time no matter what they cost.
Engine engineers complain to me all the time about these alternative technologies. They say it’s unfair to compare what they are doing with gasoline-fueled piston engines to these alternatives. And it all comes down to money. They claim they can achieve comparable performance, emissions, and fuel efficiency at a lot lower cost.
Specifically, they say “Let me add just $1,000 worth of equipment and technology to my engine and let me show you what I can do.”
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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, 08 May 2009 15:59:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
They’re After Your Freedom
You’ve undoubtedly read the Insurance Institute for Highway Safety’s report and seen the videos it released when the organization pitted sub-compacts against mid-size sedans (if not, one is posted below the fold). They really went after the safety of small cars, trying to scare consumers away from buying them.
The IIHS filmed head-on collisions between a Honda Fit and Accord, between a Toyota Camry and a Yaris, and between a Mercedes C-class and a Smart. Each vehicle was traveling at 40 mph, which is the equivalent of smashing into a parked car at 80 mph, and the results were predictable. The videos made the national news, especially the one of the Smart Fortwo bouncing and spinning backwards.
The IIHS has an ulterior motive in conducting these crashes. It’s all part of its campaign to limit how much horsepower cars can have, and to lower the national highway speed limit to 55 mph.
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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, 16 Apr 2009 16:56:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
IT’S A FUEL PROBLEM, NOT A FUEL ECONOMY PROBLEM
Every single day, the United States ships $600,000,000 out of the country. That’s what it costs us to pay for the oil we buy from other countries at $50 a barrel. It is the single biggest cause of our massive trade deficit.
The U.S. uses roughly 20 million barrels of oil every single day, and about 60% of that is imported. About 10 million of those barrels are used in transportation, including the kinds of cars and trucks you and I drive, plus all the planes, trains, heavy trucks and off-road vehicles in the country.
Yet, our entire effort to reduce our dependence on oil is based on Corporate Average Fuel Economy regulations (CAFE). And that only impacts passenger cars and light trucks. In other words, the industry that causes less than 50% of the problem is bearing 100% of the effort to fix it. No other industry is being regulated to reduce our dependence on oil, and that doesn’t look like a very effective approach to me.
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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, 10 Apr 2009 15:57:00 EST. Please see our terms for use of feeds.
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Filed under: Tech, Autoline on Autoblog
BREAKTHROUGH AUDIO SYSTEM, ALL THANKS TO SOFTWARE
I just experienced one of the most amazing sound systems that that I ever heard in a car. What makes it so amazing is that it doesn’t use a power booster, or equalizer, or better speakers, or anything like that. Instead, it’s all done with software.
The inventor of this system is a guy named Tony Bongiovi, a brilliant recording engineer who’s worked with a lot of the biggest names in music business: Aerosmith, Talking Heads, the Ramones, and Gloria Gaynor, to name a few. He also launched the career of his second cousin, Jon Bonjovi. He got his start back in the mid-1960s as a 17-year-old high school student from New Jersey who managed to wrangle his way into Motown Records as a recording engineer. That is a story unto itself but too long to recount here.
To hear Tony tell it, he used to drive around a lot of sub-compact rental cars and was always disappointed they did not come with better sound systems. So he set to work to figure out a way to improve the standard radio in the car to make it sound like a premium system. But he knew he had to do it in a low-cost way.
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.
Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 27 Mar 2009 19:01:00 EST. Please see our terms for use of feeds.
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Filed under: Coupes, Sports/GTs, Chevrolet, Autoline on Autoblog
2010 CHEVY CAMARO: DRIVING IMPRESSIONS
I’m sure there are a lot of Autobloggers out there who know the specifications of the new Camaro far better than I do. But numbers on paper don’t mean much until you experience them through the seat of your pants. So here are my driving impressions of the new Camaro, after spending the better part of a day with four different models, driving them hard over a variety of different roads.
First off, this is unmistakably a Camaro, yet one that looks fresh and modern. It’s a powerfully built car that almost has a pugnacious appearance to it. Almost. But the size and proportions are well balanced, and it looks good from every angle. Follow the jump for more.
Come back Monday (3/23) at 12:00PM EST for Autoblog’s own First Drive of the 2010 Chevy Camaro. We’ll be working on it all weekend, so you won’t want to miss it.
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.
Continue reading Autoline on Autoblog with John McElroy – 2010 Chevy Camaro Edition!
Autoline on Autoblog with John McElroy – 2010 Chevy Camaro Edition! originally appeared on Autoblog on Fri, 20 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.
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Filed under: Autoline on Autoblog
BIG THREE SITTING ON $10 BILLION GOLDMINE
There’s no question that the Detroit-based auto industry needs a lot of help. There’s a 100-year history of how it got into the problems it’s in, and some of those problems are beyond management’s control.
But there is one area where General Motors, Ford and Chrysler have total, complete control, and that’s in how they deal with their suppliers. While progress has been made in some areas, most supplier CEOs who I know are still frustrated with how the “Big 3″ treat them. They tell me there is at least $10 billion in waste that could be eliminated every year if they worked together as true partners instead of at loggerheads.
Remember, more than 70% of the value of a car today is actually designed, developed and manufactured by suppliers, not the car companies. GM purchases roughly $97 billion of materials, components and services from suppliers. Ford buys $90 billion, Chrysler $40 billion. We’re talking about a massive amount of money, which potentially means a massive amounts of savings.
Here’s how suppliers say the “Big Three” could slash costs and put some of that money back in their pockets.
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.
Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 13 Mar 2009 17:29:00 EST. Please see our terms for use of feeds.
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Filed under: Detroit Auto Show, Autoline on Autoblog
THE AMAZINGLY STUPID DETROIT CITY COUNCIL
Nobody reading this blog needs to be told how much trouble Detroit is in. Whether it’s the Detroit Three, the city of Detroit, or the greater Detroit area, the story’s the same: we’re in trouble!
One of the very few events that provides positive media coverage for Detroit every year is the North American International Auto Show. I’d rate it as one of the top three auto shows in the world. It brings in thousands of members of the media, as well as executives from automakers and suppliers in Europe and Asia. They fill up every hotel for a 40-mile radius. Thanks to the exhibits that get built, the special events that are held, all the restaurant meals that are ordered and all the taxi rides needed to get around, the show brings in a half billion dollars of desperately needed economic activity every year.
The show is held in Cobo Hall, which was built in 1960. Everyone has known for years that it needs to be renovated and expanded, but that’s going to take several hundred millions of dollars and the city is broke.
So it’s taken years to carefully craft a deal that involves the governor, the state Senate and House, three different county executives, as well as the mayor and the city council of Detroit. But in a stupefying move at the 11th hour, the city council voted 5 to 3 to reject the deal.
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.
Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 27 Feb 2009 19:26:00 EST. Please see our terms for use of feeds.
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Filed under: Hybrids/Alternative, Green, Autoline on Autoblog
HYBRID BATTERIES SURPASS ALL EXPECTATIONS
When Toyota’s Prius first hit Japanese showrooms in 1997, I was highly skeptical that hybrids would catch on. Not only was the technology really expensive, I thought the nickel-metal hydride batteries would prove to be the Achilles Heel in the system. Sooner or later you’d be facing an expensive replacement bill, right?
Well, here we are more than a decade later and those batteries are proving to be amazingly reliable. Toyota now has sold over 520,000 hybrids in just the American market. Honda has sold over 300,000 worldwide. Ford is just about to break through the 100,000 mark. The only reason they could sell so many hybrids is that the technology is working exactly like it’s supposed to, including the batteries.
While these batteries were designed to last 10 years or 150,000 miles, in many cases they’re even doing better than that. Ford brags that some Escape hybrid taxis now have anywhere from 200,000 to 300,000 miles on them and are still running strong with the original batteries.
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.
Continue reading Autoline on Autoblog with John McElroy
Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 20 Feb 2009 13:59:00 EST. Please see our terms for use of feeds.
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