Myles Away:

Ford: Three ways for the future

As a struggle for bailout cash becomes a more pressing issue, I’m going to conclude my series of three ways for Detroit’s Big Three carmakers to turn themselves around. Although the Senate is looking for ideas for fuel efficiency from the domestic automakers before it loosens the purse strings, I didn’t make that suggestion to General Motors or Chrysler, and that will remain the same for Ford. Eco-friendly halo cars, like the Chevrolet Volt, are fine, but to energize more than just one brand, the big picture must be seen.

Ford is probably in the best position to give itself a boost. It has a very strong and separate European operation that is known for building lively cars. Ford was smart to quickly move at the first signs of real danger to make plans to sell its European cars in North America (why wasn’t it smart enough to bring them over before it was in a crisis?)

So Ford should be the closest to being back on the road to profits, but these three idea will get them there faster:

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Dr Strange Panamera or: How I learned to stop worrying and like odd Porsches

I’m a Porsche purist. I think only true Porsches are supposed to have a huge rear weight bias that causes an almost dangerous amount oversteer. It should take a skilled hand to drive one and carry maximum of two people in relative comfort. Because of these convictions, I’ve been unjustly harsh to the Panamera in the past.

Porsche has a tradition of building magnificently engineered sports cars. So when I see resources taken away from cars like the 911 to build a sedan, I get a little scared. I know the 911 will still get all the attention it needs, but in the back of my mind, I fear Porsche will want to spend time with its new kid and forget about the oldest son still living at home.

Now that we’ve seen leaked final photos of Porsche’s sedan, I’m slightly less worried. Where BMW has the tradition of building cars that are wolves in sheep’s clothing, Porsche has a tradition of making wolves in wolf’s clothing. Although this car carries a similar hoodline to the Nissan 370Z and the body takes the shape of a Citroen C6, the car is distinctly Porsche.

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Automakers and the U.S. Government: more investment, less aid

General Motors will not go down. I write this because GM is a linchpin in a “domino effect” that does not just take down GM’s suppliers. If GM fails, then it will not only stop the trickle of customers in its showrooms, but in all in U.S. brand showrooms as well. Because if GM can fail, the already low consumer confidence in the smaller U.S. companies would fall further, possibly triggering the bankruptcies of Chrysler and Ford (which are already a possibility without help from GM.)

So the current debate over if the government should bail out the automotive industry is pointless. The government will lend a large hand to the car industry because of how much would be lost if it doesn’t. Just because General Motors, Ford and Chrysler are third to approach the feeding trough (behind AIG and the banking industry,) doesn’t mean the government shouldn’t fill it with slop.

But a regular loan isn’t the answer. Consumer confidence doesn’t just come from interesting cars. It’s also a product of knowing that the car company that sold the vehicle today will be in business tomorrow. You’re not likely to buy a DVD player out of the trunk of a Buick, so why would you buy a Buick out of the trunk of the U.S. Government.

The government can’t just hand out cash. It needs to somewhat stand behind these cars. The aid can’t be just loans, but an actual investment in the U.S. auto companies.

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Chrysler: three ways for the future

A couple of weeks ago I posted my three ideas for General Motors to get back on its feet. This week I figured I had better get to Chrysler before there was no Chrysler.

As I stated before, it’s time to root for the American auto industry. This doesn’t mean buying the actual car. Anyone who puts down his/her own cash for a car should do it because the product is good, not because he/she feels a patriotic duty. When you cheer for an industry it just means to remind friends of a possible domestic alternative when they go car shopping, or to make sure you look at a domestic car on your own car buying trip.

With that stated, I give my three recommendations for getting the Chrysler showrooms to feel less like ghost towns:

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Affordable halo cars: make it beautiful, make it right

A halo car is one that will revive a brand. It gives new direction, and while it may not be the car that was sold to the consumer, it’s the reason he/she came into the dealership. It goes with the idea that while you may not be able to afford an Audi R8, it may remind you that an A4 is in your price range. Bob Lutz calls it “shock therapy” for an automotive brand.

In times of slower auto sales, a budget-minded halo car is a great thing to have. Companies want a car that’s cool enough to be a poster is on a kid’s wall and affordable enough to be in dad and mom’s driveway. Great examples are cars such as Honda’s S2000 or the reborn Fiat 500.

So as times begin to get tough, the consumer may be on the fortunate end of seeing a few budget-minded halo cars rushed into production. Yes, the car companies are cash strapped, but there are a few good auto executives out there who know that to sell a car it must be distinctive. In hopes of a few good surprises this auto show season, let’s take a look at two affordable halo cars that did work and two that didn’t work.

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General Motors: three ways for the future

It’s time to root for the American auto industry. If it’s not your patriotic duty, then at the very least it’s time to support the industry that brought excess to an art and taught that the car is more than just an appliance.

So if I happen to rub up against a mid-priced antique bottle, and the ‘Genie of Practicality’ shows up, I want to be prepared to save the U.S. car industry. Over the next few months, I will make three suggestions for survival to each of the Big Three (possibly Big Two if I wait too long.) These are just my personal suggestions, so please feel free to add to the list.

This week I start with three ideas for General Motors:

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Will the U.S. embrace small cars?

NIMBY (not in my backyard) is an idea we are good at in North America. We need sewage treatment plants, airports, highways and prisons, which are fine as long as they are ‘not in my backyard’. To reduce dependency on non-renewable and foreign energy we need more fuel-efficient vehicles, but I wonder if this will become a case of NIMDY (not in my driveway).

Now that smaller cars like Toyota’s iQ and Ford’s Ka are eyeing the U.S., will they really catch on or are they riding a wave of hype? As we are seeing recent lower gas prices (can you believe we are rejoicing at $3 a gallon?), will the U.S. permanently adopt a more frugal nature?

I’m not out to make a point about the environment, suggesting we should ever limit a car guy’s choice of vehicles, or talking about hybrid technology or alternative fuels (that’s its own argument.) From a business standpoint, marketing has convinced the American public that size is king, and how important you are is directly related to the amount of real estate you take up on the highway. So I’m wondering by the time the invasion of the mico car hits these shores, will we have already moved on?

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In tough economic times, remember the charity that is the Ford Motor Company

Although we are not quite at the holiday season yet, it is time to start thinking about this year’s charitable donations. I want to bring this up now so that people won’t forget about one of the world’s greatest automotive charities: Ford. While Ford has been a part of many philanthropic activities, the one it rarely mentions has been its history of taking in the disadvantaged auto brands of the world.

It may seem crazy, but read on...

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Volkswagen and Porsche merger, Piech’s revenge?

Porsche’s takeover of Volkswagen is not going very smoothly. What was once established as friendly move to secure the independence of two companies is now redefining the meaning of hostile takeover. Sitting in the middle of this feud is Ferdinand Piech, chairman of Volkswagen’s supervisory board and a major shareholder in Porsche. As far as this merger goes, Piech has earned his seat at the table, but he might be eating two meals.

It started out innocent enough when Porsche announced it was buying a 30 percent stake in Volkswagen last September. Porsche said it did not want to own Volkswagen. Instead Porsche announced it needed to protect its interest in its business ties and own enough stock to prevent another company from taking over VW. This year Porsche has increased its stake in Volkswagen to over 35 percent (with plans to go as high as 50 percent in November) triggering an automatic takeover – what a difference a year makes.

There are many people having troubles with this deal: the unions are scared about Porsche’s past labor tactics; the German state of Lower Saxony, which owns 20 percent of VW, opposes the deal; and Volkswagen’s management is resisting sharing technological information with Porsche. So, with these problems why would Porsche, whose revenues are only about one tenth the size of Volkswagen’s, want to make huge and risky financing deals to obtain Germany’s largest automaker? The silent force behind it all may be the one less investigated: ego.

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Porsche Panamera is the new Citroen C6?

As I looked at some spy shots that Autoblog picked up of the Porsche Panamera, I realized why I can’t think of this car as a real Porsche. It’s because it isn’t a real Porsche; It’s a Citroen.

Although Porsche is known for original designs, when it wanted to mix the look of 911 and Cayenne into a long wheel-based sedan, I think it made a Citroen C6 with a little bit of the CX in the mix. Everything we’ve seen so far shows the Panamera sedan as long car with a sloping back, which is the hallmark of the big Citroen sedan.

But hey, if it the CX was good enough for French heads of state, then the Panamera should make the common man feel regal.

Maybe the coupe version will look better. Maybe the camouflage is masking a surprise car. Maybe I need to accept the fact that Porsche is a company out for profits, so (like Lamborghini and the Estoque) it will trade on its sports car image to sell sedans. Maybe I need to get my head examined.