Book Review: Car Guys vs. Bean Counters

Bob Lutz, love him or hate him is one of my heroes. I see a lot of similarities between him and myself. Not only with the business prowess and the want to succeed, but also the fact that were are true dyed in the wool car guys. Having read Lutz's previous business book, Guts. I anxiously awaited the arrival of Car Guys vs. Bean Counters: The battle for the soul of American Business. At around 230 pages, I couldn't put this book. Every time I would pick it it up, I would get lost in the world of the auto industry I so truly love. There's a brief history lesson about GM's rise to to be the largest auto maker on the planet and the height of their style setting trends of the Harley Earl and Bill Mitchell era at  GM Design to loosing their ways in the Roger Smith era. But it's not all doom and gloom. There are plenty facts about what GM was doing right. And there's some interesting tidbits about other auto makers like Chrysler, Ford, Toyota, and VW. And lastly why the GM bankruptcy was an unfortunate truth that had to happen. bob Lutz is no stranger to the auto industry. His career has spanned nearly 5 decades and he has worked for all of the Detroit Big Three. I won't give away too much, but if you are passionate about cars and you are looking  for a great book to read. I highly recommend picking up Car Guys vs. Bean Counters.

Another Pittsburgh dealer closes its doors

After 41 years serving the North Hills. Demors Linclon ceased operations as of Tuesday. Demors began business as a Lincoln Mercury dealer in 1970. However due to the loss of the Mercury brand and struggles that still exist in the auto industry caused Demors to be one of many long time dealers in the area to close their doors. McKnight Road is no stranger to automotive dealerships. Currently North Hills Toyota, Baierl Kia, and Mick's Chrysler/Dodge/Jeep all make residence on McKnight. McCrackin Ford also made its home on McKnight before closing in 2007. Their building still sits empty on one of the busiest sections of McKnight, sitting across the street from Ross Park Mall. That area seems to be struggling  for new business and a makeover as many storefronts in the Ross Towne Center is also void of many stores after Circuit City, Damon's and Roomful Express have all vacated within recent years.

But back to Demors. What does this now mean for Lincoln and Mercury vehicle owners in the North Hills? Of course any Ford dealer can service the cars with no problems. So that gives owners the option of servicing at Shults Ford in Wexford. Unfortunately, this leaves the sales gap open at a very crucial time for Ford Motor Company as it works with the Lincoln brand in redeveloping its image. Just as General Motors is doing so with Cadillac. Will we see another Lincoln dealer open in the North Hills? I certainly hope so. With the brand image that Ford is moving forward with, with Lincoln being a stand alone brand. I can see an entirely new dealership built to reflect the Lincoln image. But it would have to be north of Ross Township to better compete with other dealers. Both Cadillac and Lincoln are working to take on a more youthful buyer segment and thus the DeVille and Town Car nameplates respectively have been dropped by each brand. Hopes are to bring entirely new flagship vehicles to each brand, but both are difficult vehicles to replace. Just as dealerships are. We are sad to see Demors close, but it unfortunately is one of the necessary evils that we have to face in the auto industry.

In the garage: 2009 Scion xB

We have a new test vehicle to report on for 2009. Introducing the 2009 Scion xB. We recently picked up our new tester and have been pleasantly surprised with it so far. Our xB is a black sand pearl model that is pretty much standard by way of options. Really, it is standard. No optional equipment what so ever. Not that it's a bad thing. What we did get is A/C a 160 watt Pioneer stereo with iPod and MP3 jacks, standard disc brakes w/ ABS, and just about everything else you'd expect to find standard.

Our car has the 2.4 liter DOHC 16 valve 4 cylinder that offers relatively good performance at 158 horse power. This is backed by a 4 speed automatic transmission. Toyota rates the fuel economy at 22 City/28 Highway. So far we have averaged 23.3 MPG, though it's not like we're exactly light on the gas.

So far handling has been ok, at highway speeds the steering does feel on the light side, same in wet conditions. So I would say don't go out there and hot dog around in those conditions. Perhaps this will improve as we break the car in.

Inside the xB is very roomy. the seats sit at chair height and are fairly comfortable. Only the driver is spoiled by the presence of a flip down armrest for his or her right arm. The central dash display is easy to read and nicely positioned in the center of the dash. I found that the cluster looks similar to that in a Dodge Challenger, looks wise. The radio, heater and A/C controls, and the gear shift are all right at your finger tips. And there are controls for volume and station selection on the tilt steering wheel. We noticed the lack of power out lets in the car to run accessories from, but not a major problem that can't be solved with a trip to Walmart. Storage is ample. Though the trunk area is a bit short. Especially when you throw suitcases and camera equipment at it. So you will have to keep the 60/40 rear seat down for medium to large hauls.

Our xB comes with a manufacturer's suggested retail price of $16,700. And totals out at $17,320. after the $620 Delivery and Processing Fee is added. So the xB is both light on gas and light on the wallet.

Otherwise we will continue to fill you in with our further adventures with the xB and look for an update on our other fleet car the 2008 Mini.

Super Bowl ads. Ford, Chrysler, & VW oddly missing

We got word that there will be four automakers with ads during the Super Bowl this year. General Motors will have a Chevrolet 60 second spot during the second quarter and Cadillac will be sponsor for the pre and post game shows.

Hyundai and Toyota will both have two spots each. Also announced is a spot from Audi. This marks their first time advertising during a Super Bowl in 20 years. Theirs will be a two minute long spot featuring the Audi R8.

Toyota's ad will more than likely pump up the new Sequoia and Tundra pickup. Though I highly doubt that it will do anything to help the Tundra's image right now.

Cars.com will also have a 30 second spot this year.

Strangely though is the lack of an announcement that Ford or Chrysler will be having spots. There is still time for them to jump on the band wagon, so we'll see where it goes.

I watch the Super Bowl just for the car ads. General Motors has always topped our list of favorites. So as a bonus, we're including our favorite GM spot from the Super Bowl in 06.


Source: Automotive News, Audi.

Former General Motors Chairman Roger B. Smith dies at 82.

Roger Smith may have done many things at GM. Both good and bad. He served as the Chairman and CEO of General Motors from 1981 to 1990. We became aware of Mr. Smith about 10 years ago through one of our contributors who showed us Michael Moore's movie "Roger & Me" which focused heavily on the downfall of Flint, Michigan. Through out the movie he tried to get an interview with Mr. Smith. Unfortunately, it never happened. At least not on film.

Roger Smith's career at GM spanned 41 years. Begining in 1949 as an accountant, and grew to become treasurer in 1970. He held various other vice presidency positions before becoming Chairman and CEO in 1981. During his time at GM he oversaw GM's first major jump in to a world platform sharing car came under Smith's leadership with the Chevrolet Celebrity, and its many offspring. Mr. Smith also was one of the driving forces behind the startup and development of the Saturn brand, before his retirement. He also worked out NUMMI, the joint venture with Toyota to build cars in the US.

Farewell Roger.

Source: GM

PRESS RELEASE
Roger B. Smith, Former GM Chairman And CEO, Dies At 82

DETROIT – Roger B. Smith, who led General Motors in the 1980s through a period of significant change, passed away here November 29 after a brief illness. He was 82.

Smith was appointed chairman and CEO on January 1, 1981, and led the world's largest automaker until his retirement on July 31, 1990.

Smith directed GM during a revolutionary period in the auto industry, a time of expanding global business, tough new environmental and safety standards, and increased competition from import brands.

During Smith's tenure as chairman and CEO, GM introduced its first front-wheel-drive midsize cars, formed NUMMI, a joint venture with Toyota to manufacture cars in California, created Saturn, and acquired Electronic Data Systems and Hughes Aircraft Corp.

"Roger Smith led GM during a period of tremendous innovation in the industry." GM Chairman and CEO Rick Wagoner said today. "He was a leader who knew that we have to accept change, understand change, and learn to make it work for us. Roger was truly a pioneer in the fast moving global industry that we now take for granted."

Prior to being elected chairman, Smith had been an executive vice president and a member of the GM Board of Directors since December 1, 1974.

Born in Columbus, Ohio, on July 12, 1925, he received his formal education in Michigan. He graduated from Detroit University School in 1942. He received his bachelor's degree in business administration in 1947 from the University of Michigan and was awarded a master's degree in business administration there in 1953. He served in the U.S. Navy from 1944 to 1946.

Smith began his GM career in 1949 as a general accounting clerk in the Detroit Central Office. After a series of promotions, he became treasurer of the Corporation in 1970 and vice president in charge of the Financial Staff and a member of the Administration Committee in 1971. The following year, he became vice president and group executive in charge of the Non-automotive and Defense Group. In 1974, he was elected executive vice president, with responsibility for the Financial, Public Relations, and Industry-Government Relations Staffs.

Smith was the originator in February 1978, of the General Motors Cancer Research Awards, designed to recognize basic and clinical scientists throughout the world for hallmark accomplishments in research on the cause, prevention and treatment of cancer.

In the international world, Smith's leadership in promoting free trade was recognized by many countries where General Motors operated. He was awarded gold medals by the heads of state of Austria, Belgium and Spain, as well as the French Legion of Honor. He served on the U.S. Presidential Commission on South Africa.

On the national scene, Smith served on two presidential commissions. He was chairman of both the Business Roundtable and the Business Council. He was a trustee of the California Institute of Technology and received honorary doctorates from several universities. Smith served on the boards of directors of Citicorp, International Paper, Johnson & Johnson and PepsiCo. He served as chairman of the Blue Ribbon Committee of the New York Stock Exchange that originated the concept of "circuit breakers" to moderate large price fluctuations in the stock and option markets. His leadership in finance and industry was recognized by awards from leading associations and publications across the country.

In state and local affairs, Smith served as chairman of the board of the Economic Club of Detroit, Detroit Renaissance and the Detroit United Foundation. He served on the board of directors of many other charitable and educational organizations.

Smith is survived by Barbara, his wife of 53 years; four children: Roger B. Smith Jr., Jennifer A. Ponski, Victoria B. Sawula, and Drew J. Smith; and six grandchildren.

Services will be private. The family asks that contributions, in lieu of flowers, be made to the Roger B. Smith Memorial Fund to Benefit the Fight Against Cancer at William Beaumont Hospital, c/o of the Beaumont Fund, P.O. Box 5802, Troy, MI 48007-9620.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

European autos have resale edge over domestics

Recent surveys show that the Detroit Big Three are starting to lose footing on their vehicles resale values. Kelly Blue Book is saying that the top five brands with the best overall predicted resale value are Volkswagen, BMW, Honda, Acura, and Porsche. The rest of the Top Ten are Lexus, Subaru, Toyota, Infiniti, and Audi. Of course, none of these are Big Three domestics. Many of those brands made up the 1o worst picks for resale value for 2008.

Why the big turn? Simple. Over production. The Big Three lean towards overproducing their vehicles. Then they slap on huge discounts and rebates. Those combined with the over abundant supply of Taurus, Impala, and Stratus fleet and rental cars. Helps to absolutely destroy the resale value of those cars.

Volkswagen is the surprise comeback kid on the survey list. They have steadily grown over the last 5 years. Thanks to big boosts in quality, fuel efficiency, European styling, and exceptional value.

Source: The Wall Street Journal

Redesigned Honda Fit receives 20,000 orders in 2 weeks

From the looks of what we've read and seen of the new redesigned Honda Fit. It looks like a vast improvement on the previous model. And the buying public has spoken. 20,000 orders for the new car over a period of 2 weeks. The Fit is a very impressive car for its size. And can be customized to quite a quick little ride. I for one look forward to seeing more about this car in the future. We should see the revised Fit sometime in 2008.

TOKYO, Nov 9 (Reuters) - Honda Motor Co said on Friday it had received about 20,000 orders for its remodelled Fit subcompact in the two weeks since its launch in Japan last month, far outpacing a monthly sales target of 12,000 cars.

Honda, Japan's second-biggest automaker, is counting on the second-generation Fit, sold as the Jazz in some markets, to reverse a slide in domestic sales, where popular 660cc minivehicles have eaten into the subcompact segment.

The car, which is roomier and more fuel-efficient than its predecessor, is set to overtake Toyota Motor Corp's Corolla sedan as Japan's best-selling car, excluding minicars. It last claimed the No. 1 spot in September 2006.

Hit by a slump in the overall market, Honda last month lowered its domestic retail sales forecast by 4 percent to 660,000 cars for the business year to the end of March 2008. It expects a rebound to around 700,000 cars next year, with help from the Fit and a beefed-up minivehicle line-up.

Honda is due to launch the new Fit/Jazz in North America, Europe, China and other markets over the next year.

Source: Reuters, autoblog.com

SEMA 07: Lots of cool Toyota trucks.

One thing about the SEMA show is all the cool trucks in attendance. This year Toyota is no exception with the concept trucks they brought to Las Vegas this week. Here are a few of them.

TRD Tundra concept. Very aggressive look with it's six and a half foot bed, five inch wide fenders, and redesigned front and rear fascias. Powered by a supercharged TRD 5.7 liter V8 that puts 500 horsepower to the ground and is 50 state legal. Underneath the body work is a beefed up long travel suspension set up for the front and rear. The Tundra also comes with 17 inch TRD off road wheels with giant 37 inch BF Goodrich tires.

Attached to the bed via a 5th wheel hitch is a 28 foot 10,200 lb Featherlite car hauler. The trailer, meanwhile, isn't carrying Toyota's latest racing Tundra, but rather is filled with some of TRD's current product catalogue that SEMA attendees can browse at the show. I'm sure they're more interested in the truck, but I sure could put that trailer to good use.

The Toyota FJ-Runner is a cross between the popular FJ Cruiser and the 4 Runner. Toyota describes this concept as "ruggedness personified", which we'll agree with here at AAM. Outside it is essentially a 4 Runner with a FJ front clip. Mechanicals are not mentioned in the press release so we can only assume that the engine and suspension are relatively stock. There are 20 inch off road style wheels with 33 inch Nitto Mud Grapplers for rubber. Stopping power is brought by Stoptech brakes. Inside the FJ Runner is all business. Rubber floors and water proof seats for ultimate durability, and a host of Alpine stereo, multimedia, and rear seat entertainment upgrades. I give this one a thumbs up since it pulls off the look quite well to give a bigger cruiser, without being a mammoth sized land stalker.

The Toyota FJ Cruiser Convertible also brings a unique twist to the Jeep Wrangler competitor. A removable roof had always been a part of the original Land Cruisers, though was lost in the 1980s when the cruiser grew in size. This time Toyota removed the roof and made a strong a durable, yet lightweight top frame.

Features to this truck include 17 inch KMC Endouro wheels with 35 inch Nitto Mud Grapplers(like the FJ Runner), ARB Old Man Emu suspension and ARB front and rear bumpers with high intensity driving lights. TRD exhaust system, Eclipse navigation, and lastly front and rear Warn bumper mounted winches.

Finally, after years of requests for some sort of diesel powered truck, we have the Tundra Dually Diesel concept. So not only did Toyota respond, they responded with gusto. The chassis is really nothing to write home about as 2 medium duty Tundras were utilized to make the frame. But under the hood you find a JO8E 8.0 liter in line six cylinder turbodiesel with a Magnaflow exhaust. Horsepower is right around 300 with 600 ft lbs of torque through an Eaton 5 speed manual trans. So it has no problems there. The body is a Crew Max cab with a 6.5 foot bed. And gives the look of a ready to work truck. Alcoa 22.5 inch wheels put the power to the road. The bed, and much of the exterior trim is covered with either raw diamond plate or brushed aluminum. Otherwise, the rest of the truck is mostly stock.

Source: Autoblog.com