Archives for March 2014

Monday morning car news roundup, March 31, 2014

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GM edition:

  • GM expands ignition switch recall as cautionary measure – Just-auto: Though modified ignition switches were fitted at the factory, General Motors is now recalling some 2008-2011 models because it has no way of knowing if any car has since been repaired using one of the older types of switch.
  • GM hearing will test automaker’s deep Washington ties – Washington Post: General Motors chief executive Mary Barra got the royal treatment when she visited Washington in January: a mention in the State of the Union address, a seat in the first lady’s box and a warm welcome from lawmakers in both parties.
  • Delphi told panel GM approved ignition switches below specifications – Reuters:  General Motors Co approved ignition switches for cars that have been linked to 13 deaths, even though the parts did not appear to meet the company’s specifications, officials of Delphi Automotive told U.S. congressional investigators.
  • Congress to eye GM ignition switch approval process – Just-auto: General Motors approved ignition switches for cars that have been linked to 13 deaths, even though the parts did not appear to meet the company’s specifications, Delphi Automotive officials have told US congressional investigators.
  • GM recalls newly launched trucks and SUVs for pipe check – Just-auto: General Motors will recall the recently launched 2014 Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, and 2015 Chevrolet Suburban and Tahoe and GMC Yukon and Yukon XL SUVs equipped with a six-speed automatic transmission to check an oil cooler line.
  • GM recalls Chevrolet Cruze turbo for half shaft check – Just-auto: General Motors said a recall – announced at the weekend – of the 1.4-litre turbocharged version of the Chevrolet Cruze allows dealers to resume selling models that were placed on stop sale on Thursday evening as soon as a half shaft inspection is complete and any necessary repairs are made.
  • GM Pulls Opel Out of China; Will Play Larger Role in U.S. – thedetroitbureau.com:Barely a month after GM pulled Chevrolet out of Europe as part of a continuing global brand realignment, the maker is pulling Opel out of China. The brand never took off in China and will instead focus on its home market of Europe while lending support to GM’s brands in China and the U.S.

In other news edition:

What’s Good For General Motors

Are the results of the elections unclear?

Are the results of the elections unclear?

When I first started writing about cars, it was for someone else’s brand. I didn’t have final cut over my work, I didn’t get to pick my own topics, and the result was that a lot of my work read a lot like it was written by my editor. At the time this was exactly what I needed: my first six months or so of blogging were basically an intensive self-education, guided by a firm mentor with a clear vision. But as I began writing more about the burgeoning auto bailout, I found myself being given more freedom to write the worlds of the car business and politics collided. Having studied Political Science in school, this created the perfect opportunity for me to study the sudden collision of politics and cars, which in turn opened my eyes to the countless ways in which cars shape our world.

My piece in today’s Bloomberg View goes back to my original take on the topic that first pulled me into the world of cars, the basis from which all my bailout-critical writing has stemmed: bailing out automakers prevents creative destruction, and robs consumers of the right to reject businesses that are unresponsive to them. One need not be a free-market fundamentalist to defend this basic function of the market system, just as one does not need to be a political hack to oppose the bailout of GM and Chrysler. Government with pretensions to democratic representation should think hard before ignoring decades of votes its constituents have cast with their wallets… after all, turnout is much higher in the marketplace than the ballot box. If they do not, they risk complicity in such tragedies as we now face with GM: young, promising lives cut down due to defects that executives appear have ignored or covered up. This would be bad enough, were GM alone responsible for this mess…  but because of our fear of the basic tradeoff of the system that affords us such wealth, that failing companies must fail, we are all in some small way party to it.

There is no going back in time…. but by noting the consequences of our political actions, as a nation we can perhaps still avoid the fate that almost certainly awaits GM.

Thursday morning car news roundup, March 27, 2014

Thursday - Picture courtesy happyhealthylonglife.com

The GM saga:

In other news:

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Lawyers want to drive GM back into bankruptcy, but analyst thinks GM might get away with $2 – 3 bln black eye

Picture courtesy NYtimes.com

GN’s stock has received a flogging in the widening wake of the recall scandal. Pessimistic investors are worried that GM’s bankruptcy might be reopened. Optimists think that GM, being shielded from liabilities after the bankruptcy, will get away scot-free.  A renowned analyst thinks both are wrong, and that GM will likely go  for a Toyota-sized $2-3bln settlement. [ There is more … ]

Wednesday morning car news roundup, March 26, 2014

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Tuesday morning car news roundup, March 25, 2014

Tuesday - Picture courtesy blogspot.com

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Monday morning car news roundup, March 24, 2014

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Tesla Fights The Good Fight

 

Forget the electric thing... this is a better future we can achieve now.

Forget the electric thing… this is a better future we can achieve now.

Regular readers of my work probably consider me something of a Tesla skeptic, and the record doesn’t exactly dispute the charge. But as I’ve maintained throughout my criticisms of other automakers, criticism is hardly a sign of disrespect or antagonism. In fact, as a lifelong resident of the West Coast of the USA, Tesla represents the closest thing I have to a hometown team in the auto industry. Perhaps I’m out of touch with the self-esteem-centric values of our times, but I firmly believe that critical analysis is the most constructive contribution the media can make to the health of a company or industry. Certainly the history of the US auto industry confirms the fact that companies can drift dangerously and self-destructively out of touch with reality in the absence of regular gut checks from an independent media. [ There is more … ]

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