TTAC And The Golden Years of Car Blogging

The author, getting an early taste of automotive journalism on his first travel assignment at TTAC (SEMA 2008, Las Vegas)

The author, getting an early taste of automotive journalism on his first travel assignment at TTAC (SEMA 2008, Las Vegas)

Some of these days, and it won’t be long
Gonna drive back down
where you once belonged
In the back of a dream car
twenty foot long
Don’t cry my sweet,
don’t break my heart
Doing all right,
but you gotta get smart

-David Bowie, “Golden Years”

None of Daily Kanban’s well-informed readers will mistake today’s changing of the editorial guard at the former blogging home of both Bertel and myself with a story of deep importance to the auto industry. I suspect the topic doesn’t even hold the same importance for Bertel, whose time at TTAC was a relative blip across an long and accomplished career (and who is currently on the ground at the Shanghai Auto Show), that it does for me. Even if you are familiar with the history of the site in question and really understand what happened today, it’s just another instance of a dynamic that is playing out across the broader online media. But as I start another week deeply satisfying work, I can’t help but notice that my great professional fortunes all trace back to my time at TTAC. If others are to enjoy the opportunity that I did, it’s important to understand what happened today.

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NHTSA Shrugged

There's a new sheriff in town... and he's big on self-enforcement.

There’s a new sheriff in town… and he’s big on self-enforcement.

As the GM ignition switch scandal snowballed over the last year, there has been much debate about just how much blame NHTSA bears for not catching the decade-old defect. The House Committee on Energy and Commerce staff report [PDF] analyzes NHTSA’s failure to prevent the deaths of 84 Americans (and counting), and concluded that a number of factors prevented NHTSA from detecting patterns that GM’s own top executives claim to never have known about. With headings like “information silos ” and “organizational tunnel vision,” the failures identified in the report are strikingly similar to the culture problems blamed for GM’s malfeasance; there’s even a “NHTSA shrug” to match the “GM shrug” identified in GM’s Valukas Report.  But the report’s final page gives the ultimate version of what we might as well start calling the “American shrug”:

There are no simple solutions to the failures exposed by this recall.

Which is true enough, as far as it goes. Again, if GM’s own leadership couldn’t identify the problem amid ten years of evidence it’s fair to say NHTSA didn’t have a chance. So rather than wondering why NHTSA isn’t capable of catching the worst-case nightmare scenario, perhaps we should be setting the bar a little lower. For example, let’s ask if NHTSA can at least ensure recalled cars don’t get sold before being repaired and if it can apply its efforts consistently. Because apparently even these modest standards are too much to ask…

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Chrysler Is Still Waiting For Its Quality Turnaround

Who's laughing now?

Who’s laughing now?

In 2009, when Sergio Marchionne’s team presented the first five-year plan for what would become Fiat Chrysler Automobiles (FCA), his VP for Quality Doug Betts told attendees that Chrysler’s quality problems would soon be a thing of the past. Thanks to Fiat’s superior fit-and-finish standards and “World Class Manufacturing” system, Chrysler hoped to match the best mass-market competitors on quality by 2012 according to Betts. Three years after that initial goal had passed unaccomplished, Betts is gone but FCA’s US-market brands are still occupying the bottom tier of Consumer Reports’ most recent automotive quality survey. With quality problems plaguing even its “halo” Hellcat and Ecodiesel engines as recently as last week, it’s clear that Marchionne hasn’t been able to bring the long-term quality backmarker up to pace.

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The Ballad Of Dirty Harry

Go ahead punk, make my day

Go ahead punk, make my day

This week’s news that activist investors are seeking $8 billion in stock buybacks from General Motors has reignited a nearly half century of concerns that the once-dominant automaker continues to prioritize short-term results over long-term strategy. Already behind the competition on global platform rationalization, fuel efficiency, pricing power and luxury-brand margins, GM clearly has better things to do with its cash than give it away to investors. But while analysts and investors wrestle with these issues, taxpayers face an even more troubling question: how is it possible that they lost over $10 billion on GM’s equity only to have Wall Street strip $8 billion in cash from the company with the help of a member of the president’s auto task force?

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It’s (Not Even) About Ethics In Automotive Journalism

Advertisement or just plain old "car content"? Or is there a difference?

Advertisement or just plain old “car content”? Or is there a difference?

The first time I ever watched “The World’s Fastest Car Show,” I was on an airplane. I can’t remember the airline, but when I took my seat on the flight, an episode showing a shootout to crown “The World’s Fastest Sedan” was playing on the seatback screen in every row. At the time I didn’t think twice about it, assuming it was simply an advertisement for the winning Dodge Charger Hellcat. I’d previously seen a similarly-produced segment featuring the Lincoln MKS “competing” for the affection of a bunch of actors portraying luxury car buyers, and that was unmistakably advertising. After all, everything that runs on those seatback screens pre-flight are clearly paid-for advertisements.

So imagine my surprise this morning, when Jalopnik’s Editor-in-Chief Matt Hardigree tweeted a link to a Kinja Post from “The World’s Fastest Car Show” which stated that the segment I had seen on that airplane was “banned” from Motor Trend’s YouTube channel.

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GM brings on the strippers

The tide goes back out...

The tide goes back out…

In a 2011 interview, Bob Lutz summed up the product philosophy that guided the product turnaround GM had hired him to lead as follows:

The product development guys, whether at Ford, BMW, Chrysler or GM, liked my leadership because I insist on good rather than cheap. And it’s definitely paid off. The average transaction prices of GM cars are up so much it more than offsets, way more than offsets, the maybe thousand bucks I put into the vehicle.

Lutz’s argument, that it is better to buy market share by investing in quality than by discounting, is unassailable in the abstract and absolute catnip for car writers (myself included, at the time).  And given the profound mediocrity of GM’s products before Lutz joined GM in 2001, it’s impossible to argue that his philosophy hasn’t had some kind of positive effect. As Lutz pointed out, GM had seen transaction prices rise throughout his tenure… but that trend appears to have turned.

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Tata Motors on Bolt vs. Bolt

Like a bolt from the blue?

Like a bolt from the blue?

When TransportEvolved pointed out that Tata Motors has a five-door hatchback called “Bolt” and suggested that this might be a problem for Chevrolet’s planned Bolt EV, we thought we would reach out to the Indian automaker for comment on the matter. Today, a Tata Motors spokesman made the following statement to DailyKanban:

“Bolt is currently a brand name registered by Tata Motors for the Indian market and we are in the process of registering it for some of our key international markets as relevant. However, we do not presently anticipate any concerns about the GM vehicle as both of these products are focused on very different markets”.

GM has assiduously avoided saying what markets outside the United States it might sell the Bolt in, and has even said it may reconsider the name Bolt altogether. Losing out on the Bolt name in India may not be a deciding factor, but, depending on what other markets Tata registers the Bolt name in, this could potentially become more of an issue. Tata may not “presently anticipate any concerns” with the name-sharing, but if GM has global ambitions for Bolt it may need to reach into its bag of brands to avoid overlap with Tata’s Bolt.

GM’s “Award-Winning” PR Strategy

Cui bono?

Cui bono?

For as long as General Motors has been losing market share in the United States, Detroit’s largest automaker has looked beyond mere success on the market to craft a winning PR narrative. This has been no easy task; after all, nothing succeeds like success. But luckily for GM there is an alternative to actual success: awards. Offered by countess media outlets, professional associations and industry groups, these awards may not actually substitute for (let alone drive) consumer demand for GM’s products, but they do allow the Ren Cen’s merry spinmeisters to craft an appearance of success for the company, no matter how at odds with reality it is.

History is littered with embarrassing legacies of this strategy, perhaps most notably the time when GM won Motor Trend’s 1971 Car Of The Year award for its hapless Chevrolet Vega. But GM’s awards-centric strategy is hardly a thing of the past: just last week, CEO Mary Barra claimed that recent awards prove that GM is indeed a new company and that “we are there to win.” Barra’s statement was deeply ironic, as touting award wins as a sign of success is precisely the kind of “leadership” that allowed GM to ignore its failures on the market for decades. In fact, under Barra’s leadership GM is not simply falling back on awards to burnish its underperforming vehicles, it’s relying on awards to polish Barra’s image as well. Worst of all, it appears many of these awards are effectively bought and paid for.

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