John McElroy
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by John McElroy on Nov 6th, 2009 at 7:00PM 
CHRYSLER CONSIDERS GETTING BACK INTO BIG RIGS
One of the more intriguing tidbits that dribbled out of Chrysler's grueling 8-hour press conference on Wednesday is that the company is considering getting back into the heavy truck business. They're not talking about heavy duty pick-ups, they're talking about 18-wheelers.
Up until the early 1970's Dodge sold heavy trucks, including semi-tractors. In fact, Dodge trucks were famous the world over. But like GM and Ford, the Chrysler Corporation decided to get out of that business at a time when the commercial truck sector was under pressure.
When times are good heavy trucks generate a significant amount of profits. Mercedes-Benz, Volkswagen, Renault, Toyota (Hino), Nissan and Mitsubishi (Fuso) are still in the business. But it takes a lot of capital investment to get into and stay in the highly cyclical heavy truck segment, which is why the American car companies abandoned that market years ago.
In this case, the idea to get Chrysler back into the heavy truck market is Fiat's, not Chrysler's. And that is precisely why this could actually happen.
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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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One of the more intriguing tidbits that dribbled out of Chrysler's grueling 8-hour press conference on Wednesday is that the company is considering getting back into the heavy truck business. They're not talking about heavy duty pick-ups, they're talking about 18-wheelers.Up until the early 1970's Dodge sold heavy trucks, including semi-tractors. In fact, Dodge trucks were famous the world over. But like GM and Ford, the Chrysler Corporation decided to get out of that business at a time when the commercial truck sector was under pressure.
When times are good heavy trucks generate a significant amount of profits. Mercedes-Benz, Volkswagen, Renault, Toyota (Hino), Nissan and Mitsubishi (Fuso) are still in the business. But it takes a lot of capital investment to get into and stay in the highly cyclical heavy truck segment, which is why the American car companies abandoned that market years ago.
In this case, the idea to get Chrysler back into the heavy truck market is Fiat's, not Chrysler's. And that is precisely why this could actually happen.
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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
by John McElroy on Oct 30th, 2009 at 4:01PM
Brazil's E100 Drives Innovative Fuel Injection
A few weeks ago Rio de Janeiro landed the 2016 Olympics largely thanks to the fact that Brazil is climbing up the rank of nations. It has grown to become the 10th largest economy in the world and a key reason has to do with the country's energy policy.
By committing heavily to ethanol, Brazil no longer imports oil to make fuel. That means the country now has a trade surplus and a positive balance of payments. The economy is growing while unemployment is dropping. Ethanol doesn't get all the credit for Brazil's impressive growth, but it's playing a significant role. Instead of talking about kicking its oil addiction, Brazil did it.
An unexpected side benefit of committing to ethanol is that Brazil is also taking the lead in developing new fuel injection systems that allow cars to run on pure ethanol (E-100). This is arguably the first time that Brazil has ever taken the lead on automotive technology.
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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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A few weeks ago Rio de Janeiro landed the 2016 Olympics largely thanks to the fact that Brazil is climbing up the rank of nations. It has grown to become the 10th largest economy in the world and a key reason has to do with the country's energy policy.By committing heavily to ethanol, Brazil no longer imports oil to make fuel. That means the country now has a trade surplus and a positive balance of payments. The economy is growing while unemployment is dropping. Ethanol doesn't get all the credit for Brazil's impressive growth, but it's playing a significant role. Instead of talking about kicking its oil addiction, Brazil did it.
An unexpected side benefit of committing to ethanol is that Brazil is also taking the lead in developing new fuel injection systems that allow cars to run on pure ethanol (E-100). This is arguably the first time that Brazil has ever taken the lead on automotive technology.
____________________________________________________________________________________
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
Why Saturn FailedIn the early 1980s General Motors launched a top-secret program to figure out how it could build a small car to successfully compete against the Japanese automakers. It was called the S-car program and the results of this study shocked top management at GM.
It conclusively proved General Motors could not profitably build a small car in the United States that was priced against the Japanese -- at least not under the current GM system. And that launched another study to figure out what it would take become competitive.
GM concluded that it needed a clean-sheet approach to designing, engineering, manufacturing and retailing small cars in the American market. In other words, it needed a whole new car company. And so Saturn was born.
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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
Why Car Names Really MatterWhat's in a name? Does it really matter what you call a car, or will a car sell well as long as it's well designed?
As an enthusiast, I always felt that the name of a car never really mattered all that much. I was always more interested in the design and the mechanical aspects of the machine rather than the badge. If it had a cool sounding name, sure, that was good. But to me a great car was a great car no matter what they called it.
Now I'm not so sure.
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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
TOYOTA'S HYBRIDS COULD BE BANNED FROM THE AMERICAN MARKET
In a shocking development Toyota faces a lawsuit filed with the U.S. International Trade Commission that seeks to ban the import of all hybrids to the American market. Toyota is being sued by Paice LLC for patent infringement on its hybrid system.
Before you think this is just a frivolous lawsuit that has no standing whatsoever, consider the fact that Paice has already successfully sued Toyota on five counts of patent infringement, and won on three of them. In April of this year, Paice was awarded by the Federal district court in the Eastern District of Texas a future royalty of $98 for every Prius sold.
Toyota is appealing that verdict, but just to up the ante Paice decided to file its suit with the ITC and go for an all-out ban on all the hybrids the giant Japanese automaker brings into the U.S. market.
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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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In a shocking development Toyota faces a lawsuit filed with the U.S. International Trade Commission that seeks to ban the import of all hybrids to the American market. Toyota is being sued by Paice LLC for patent infringement on its hybrid system.Before you think this is just a frivolous lawsuit that has no standing whatsoever, consider the fact that Paice has already successfully sued Toyota on five counts of patent infringement, and won on three of them. In April of this year, Paice was awarded by the Federal district court in the Eastern District of Texas a future royalty of $98 for every Prius sold.
Toyota is appealing that verdict, but just to up the ante Paice decided to file its suit with the ITC and go for an all-out ban on all the hybrids the giant Japanese automaker brings into the U.S. market.
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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
Cash For Clunkers Conspiracy?
To hear the government tell it, foreign automakers and compact cars were the big winners in the Cash for Clunkers program. The Department of Transportation makes it look like consumers all wanted small fuel-efficient cars, particularly from the import brands.
But an analysis by Edmunds.com tells a very different story. It found that a fair number of Clunker buyers bought pickups and Ford came out as the clear winner in the Top Ten list. Indeed, Edmunds' analysis shows that the government came up with a bizarre way to count Clunker sales and we know now that the DOT counted sales based on the drivetrain in a vehicle, not by its nameplate. For example, the front-wheel drive version of the Ford Escape was counted separately from the all-wheel drive version. As a result, vehicles that only offer one drivetrain came out on the top of the list.
No one in the history of the auto industry has ever counted sales this way, and it's mighty peculiar why the government would choose to do so. Is there some other agenda at work?
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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.
____________________________________________________________________________________
To hear the government tell it, foreign automakers and compact cars were the big winners in the Cash for Clunkers program. The Department of Transportation makes it look like consumers all wanted small fuel-efficient cars, particularly from the import brands.But an analysis by Edmunds.com tells a very different story. It found that a fair number of Clunker buyers bought pickups and Ford came out as the clear winner in the Top Ten list. Indeed, Edmunds' analysis shows that the government came up with a bizarre way to count Clunker sales and we know now that the DOT counted sales based on the drivetrain in a vehicle, not by its nameplate. For example, the front-wheel drive version of the Ford Escape was counted separately from the all-wheel drive version. As a result, vehicles that only offer one drivetrain came out on the top of the list.
No one in the history of the auto industry has ever counted sales this way, and it's mighty peculiar why the government would choose to do so. Is there some other agenda at work?
____________________________________________________________________________________
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
by John McElroy on Aug 21st, 2009 at 6:19PM
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.
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.
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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.
____________________________________________________________________________________
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.
____________________________________________________________________________________
Autoline on Autoblog with John McElroy
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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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
Ford Says Series Hybrids (Chevy Volt) Are a Mistake
The 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.
____________________________________________________________________________________
The 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.
____________________________________________________________________________________
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
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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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.
____________________________________________________________________________________
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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BREAKING: Schumacher likely to return to F1 racing with Mercedes- BREAKING: Buick confirms 2011 Regal 2.0T to come with manual transmission. Wait... wha?
Officially Official: Aptera production pushed back to 2010
BREAKING: Jenson Button joins Hamilton for twin-champ McLaren "super team"
Ford Fusion wins Motor Trend Car of the Year award
Autoblog Podcast #153: With Phil Berg
Phil Berg puts his reputation on the line and hangs with the podcast crew.
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