Continue reading VIDEO: Vintage promo film made for Detroit's 1968 Olympic bid reveals city's precipitous decline

VIDEO: Vintage promo film made for Detroit's 1968 Olympic bid reveals city's precipitous decline originally appeared on Autoblog on Mon, 15 Jun 2009 20:00:00 EST. Please see our terms for use of feeds.

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.

REPORT: Obama dropping "car czar" in favor of task force originally appeared on Autoblog on Mon, 16 Feb 2009 07:58:00 EST. Please see our terms for use of feeds.

Continue reading BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package

BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package originally appeared on Autoblog on Fri, 19 Dec 2008 09:32:00 EST. Please see our terms for use of feeds.

Would you buy American if your boss gave you $1,000? originally appeared on Autoblog on Sat, 13 Dec 2008 18:02:00 EST. Please see our terms for use of feeds.

Oil may hit $35/barrel in wake of auto bailout bust originally appeared on Autoblog on Fri, 12 Dec 2008 18:58:00 EST. Please see our terms for use of feeds.

Detroit 3 seeking $6.8 billion from Canadian government originally appeared on Autoblog on Mon, 08 Dec 2008 12:59:00 EST. Please see our terms for use of feeds.

Autoblog Podcast #105 originally appeared on Autoblog on Tue, 02 Dec 2008 18:32:00 EST. Please see our terms for use of feeds.

OPINION: Stop arm-chair quarterbacking the auto industry originally appeared on Autoblog on Tue, 02 Dec 2008 15:30:00 EST. Please see our terms for use of feeds.

Michael Moore mixed on Big 3 bailout originally appeared on Autoblog on Thu, 20 Nov 2008 17:21:00 EST. Please see our terms for use of feeds.

Germans none to happy about U.S. aid to automakers originally appeared on Autoblog on Thu, 25 Sep 2008 19:28:00 EST. Please see our terms for use of feeds.

House passes $25 billion loan for domestic automakers originally appeared on Autoblog on Wed, 24 Sep 2008 17:45:00 EST. Please see our terms for use of feeds.

Showing great discipline amid declining sales, the Detroit 3 have held back on the temptation to dump vehicles on fleet customers in order to boost numbers. As we reported last month, selling vehicles to corporate fleets and daily rental companies has been a long-practiced method to offload automobiles when sales slow down. Unfortunately, it also results in lowered residual values in the marketplace as these vehicles are dumped in quantity at auctions at the end of their service. Over the years, some models have even earned a "fleet" or "rental vehicle" stereotype, additionally damaging their public image, and sales, at the retail level. The Ford Taurus, for instance, was only sold to fleet customers during the last generation's final year of production, which may have further damaged the brand and affected sales of the renamed 2008 Taurus.

Even though the Detroit 3 are limiting fleet sales, it is still a large chunk of their business that accounts for nearly 35 percent of total U.S. sales for Ford and Chrysler. While fleet sales to Chrysler, GM, and Ford are down, other automakers are increasing their volume. It is reported that Toyota sold an additional 10,000 units to fleets during the first four months of 2008.

[Source: Automotive News - subs. req'd, Photo by Stan Honda, Getty Images]

Detroit 3 show restraint in tough times, continue to limit fleet sales originally appeared on Autoblog on Mon, 16 Jun 2008 15:30:00 EST. Please see our terms for use of feeds.

Asian brands beat Big 3 sales in May originally appeared on Autoblog on Thu, 05 Jun 2008 08:57:00 EST. Please see our terms for use of feeds.

Until Detroit automakers signed landmark deals with the UAW that shifted retiree health care costs to the union, it was cheaper to make vehicles in Canada. Government health care saved automakers about $6 per work hour, a savings of over $12,000 a year per worker. Since Ontario produces more vehicles than any state in the Union, that represented huge savings for the Detroit Three. However, after the new deals were struck with the UAW, that advantage has disappeared. To make the situation worse, the loonie has made huge advances over the dollar. At one point you needed $1.61 in Canadian cash to equal one greenback, but new oil wealth for our northern neighbors coupled with a growing US credit crunch have brought the two currencies neck and neck. With Canada's higher taxes and unfavorable contracts, the northern frontier could soon be the world's most expensive place to build cars and trucks.

Wards Automotive thinks the CAW will soon start to feel the pinch of Canada's new economic reality. The publication sees Ontario losing 600,000 units per year by 2012, while Michigan will gain 100,000 units during the same period. With the CAW contracts expiring in 2008, it looks like another opportunity for US automakers to cut labor costs. Since CAW health care is already free, however, there is no magical fund to cut labor costs without taking cash out of worker's pockets.

[Source: Detroit News]

Canada may become most expensive place to build a car originally appeared on Autoblog on Tue, 11 Dec 2007 08:28:00 EST. Please see our terms for use of feeds.

UAW members that are hurt on the job get paid 100% of their wage until they're well again, but at a Toyota plant, you may get placed in a less physically demanding role, but at a lower pay rate. This is just one example of why workers are meeting every Wednesday at a local Holiday Inn creating a game-plan to introduce the UAW into Toyota's biggest plant in North America. Another driving force for unionization is a leaked document that outlines Toyota's goal of controlling its labor costs by capping wages. Toyota officials say that being able to adjust pay at its own discretion allows it to provide stable employment for its workers when other manufacturers are leaving the region and the country all together.

The Georgetown plant has been around for 25 years without unionization, mostly because Toyota has treated its employees very well and paid wages that were competitive with what UAW members made. With Toyota's big profits and immense growth, some employees at Georgetown feel all they have to look forward to are more temp workers and "flexible pay". We know there are a lot of Autoblog readers who would be thrilled to make $25 per hour (including many Autoblog writers), but for the 7,200 workers in Georgetown, the siren call of the UAW may be getting harder and harder to tune out.

[Source: Freep]

UAW shacks up at Holiday Inn near Toyota's Georgetown, KY plant originally appeared on Autoblog on Tue, 29 May 2007 08:33:00 EST. Please see our terms for use of feeds.

Big 2.5 increase sticker prices to combat slow sales originally appeared on Autoblog on Mon, 14 May 2007 09:25:00 EST. Please see our terms for use of feeds.

Most people looking to purchase a Toyota or Nissan just don't care about the value of the Yen vs. the Dollar. It just isn't relevant. For automakers here and in Europe, however, it's a very big deal. The Auto Trade Policy Council estimates a Japanese auto manufacturer advantage of $9,000 on luxury vehicles imported from Japan and $2,000 on lower-end imports. Japanese manufacturers have smartly used the imbalance to add content to their products while maintaining the price of their competition. Customers are getting more for their money and Toyota, Honda and company are getting lauded for high quality materials.

The Yen is worth less than the Dollar because the current national interest rate in Japan is .5 percent, close to what the rate was in the US only a couple years ago. Right now, however, the US interest rate is at 5.25 percent. In Europe, the rate is 3.5%. Investors borrow Yen at low rates then sell the currency and put the money into higher interest accounts like US treasury bonds. As a result, the yen is devalued by up to 25% and Japanese goods are cheaper for Americans.

[Source: Detroit Free Press]

Continue reading Yen vs. Dollar/Euro: Both US and European automakers feeling the pinch

Yen vs. Dollar/Euro: Both US and European automakers feeling the pinch originally appeared on Autoblog on Mon, 26 Feb 2007 09:24:00 EST. Please see our terms for use of feeds.

Toyotas don't always have the best looks or the best horsepower or the best driving characteristics, but customers seem to want the company's products the most anyway. They're winning share from other automakers and they're winning on the profit sheet. It's got to be fun right now being Toyota. Its biggest concerns lately are rising North American salaries due to outrageous bonuses due to outrageous profits and how to beat up on the competition without being a poor sport. The only real problem that the automaker is facing right now is that engine sludge issue that could end up costing the automaker billions, but if anybody can afford it, it's Toyota. Besides, nary a word has been spoken in the media about this huge issue, so it probably won't put too big a dent in their quality armor in the eyes of customers.

A presentation by Seiichi Sudo, president of Toyota Engineering & Manufacturing in North America, basically painted a blunt picture of his company's success. We're winning, our competitors are jealous, and we are now the de facto leaders of the auto industry. No complaints here. GM or Ford or Nissan will tell you that Toyota is the benchmark, so that makes them the leader. One look at the new Tundra shows that Toyota isn't just trying to win, it's trying to get the competition to tap out. That doesn't mean that the Tundra is better than the F-150, Silverado, or Ram, but it might very well take sales away from those trucks anyway.

[Source: Free Press]

Continue reading Toyota fears backlash over US success

Toyota fears backlash over US success originally appeared on Autoblog on Thu, 15 Feb 2007 10:28:00 EST. Please see our terms for use of feeds.

On camera with ABC and the world watching, some union officials still sound like they did 30 years ago. When Legislative Director Alan Reuther was asked about members paying more for health care, he responded with 'we already gave at the plant'. Americans don't like to be told that others are better than they are, but hearing this come out of a union official's mouth, many hear that union members are above the pain all other employees in America are feeling.

As a resident of the Detroit area, it's tough to hear all the negative press. The news is grim and doesn't seem to be getting any better, which makes the whole broadcast difficult to watch. ABC is doing a fine job of laying out the facts in an objective manner, and for any serious automotive enthusiast, it's almost required viewing. Daniel Howes of the Detroit News did a terrific job of laying out how all of this is playing out on TV. It's worth a look.

[Source: Detroit News]

Continue reading ABC and Charles Gibson have been in Detroit all week and it's been hard to watch

ABC and Charles Gibson have been in Detroit all week and it's been hard to watch originally appeared on Autoblog on Thu, 01 Feb 2007 09:06:00 EST. Please see our terms for use of feeds.