When Chrysler rolled out three electric vehicle prototypes a couple of weeks ago most EV experts were skeptical. They were even more skeptical when the company claimed that it would have an EV on sale by 2010. Wait a minute, everyone wondered, how could Chrysler have caught up with GM, Nissan and other automakers who have been working on EV's for a lot longer?
Well, to hear Chrysler tell it, it's not behind at all. It is the first major automaker to actually allow members of the media and dealers to drive its production-intent EV's. The company claims it's been working on EV's for at least two and a half years-or about the same time as the other major OEM's. Its effort came out of the fuel cell program it was working on with Mercedes, back in the good 'ole DCX days. They merely pulled the fuel cell out and dropped in a battery pack.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
A few years back I made a bet with a former Director of Engineering at General Motors. I bet him five bucks that Americans would fall in love with modern diesel engines and would want them in their cars. Specifically, I predicted that diesel sales in passenger cars would reach 1 million units by 2012. He bet it wouldn't happen.
Last year I ran into him and he ruefully conceded he was probably going to lose the bet. But that was last year. Now I'm pretty sure I'm the one who's going to lose. What a difference a year makes!
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
There's a lot of talk about making the U.S. energy independent. Or getting off oil altogether. I guess anyone who believes it can easily be done has never taken the time to count how many millions of barrels of oil we import every day. Damn do we use a lot of oil!
Some say the country is in trouble because we don't have an energy policy. That's not true. We do have a policy. It doesn't have a grandiose name attached to it, but for decades now, with strong bi-partisan support, the U.S. has maintained very low gasoline taxes, has legislated cleaner fuels (which yields less fuel), and has put strict limits on drilling.
We seem to be saying that we don't want to use oil, but since we don't want to hurt the "little guy," we'll keep it as cheap as possible.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
When Alan Mulally came to the Ford Motor Company two years ago he finally forced the company to face reality. It wasn't going to go anywhere, he told his executive team, unless it put all its resources into resuscitating the Ford brand on a global basis.
So Jaguar and Land Rover were given the heave-ho, and Volvo was put "under review." The decision was made to let Mercury slowly die, and Lincoln's turn-around was put on the back burner until the Ford brand revived.
But as the company formulated its turn-around plan, it slowly dawned on everyone involved that there was a real opportunity to save Mercury. They figured out a way to give the brand a unique line-up of vehicles without breaking the bank. So in April of this year they took their ideas to Mulally, and after extensive studies they got the go-ahead in June to save it.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
Chrysler has been harshly criticized by analysts and the media. And with good reason. It's lost a ton of sales and market share. It had to bail out of leasing when its residuals plummeted. It came up $6 billion short trying to renew its credit lines. And its debt rating is pure junk.
Ever since Cerberus took Chrysler private they've only doled out dribs and drabs of information about the company. So analysts and reporters (including me!) rushed in to fill the vacuum, mostly with negative news. That woke the company up to the fact that it better start communicating with the outside world.
And that landed me an interview for Autoline with Tom LaSorda, the vice chairman of the company, who offered up a lot more information than I ever expected.
Uh-oh. In the pell-mell race to develop lithium-ion batteries for plug-ins, EV's and hybrids, has any automaker taken a hard look at where all that lithium is going to come from? Guess what? Not only are global lithium supplies pretty tight, prices are about to skyrocket.
Today, the United States imports almost all of its lithium. We get most of it from Chile, then Argentina, and a little bit from Canada and Zimbabwe. The only producer in America is actually a German company, Metallgesellschaft, which has a mine in Nevada. Yet, even though we import most of our lithium, the United States is the world's largest processor of the material.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
2010 is shaping up to be a pivotal year in the American auto industry. From a product standpoint there will be a lot of interesting hardware in showrooms, including range-extending EVs, plug-in hybrids, clean diesels, pure electrics, and flex-fuel vehicles running on cellulosic ethanol. But it's also shaping up to be the year when the domestic industry will have to deal with its greatest challenge ever.
In short, the "Big Three" are running out of money, and running out fast. At its present spending rate, General Motors will burn through almost all the cash it has in the next 6 quarters. Ford can hold out a little bit longer. And Chrysler? Well, who the hell knows what's going on there?
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
Every day Chrysler LLC builds Euro-spec versions of the Chrysler 300 at its assembly plant in Canada, bolts a V6 diesel engine into most of them, and ships them off to Europe. That diesel 300 gets better fuel economy, over 30 mpg, than all the other vehicles in Chrysler's U.S. showrooms. But it's against the law for Chrysler to sell that car in America.
Right now Ford and General Motors are trying to figure out how to bring many of their fuel-efficient European models to the U.S. and manufacture them here. They'd love to do it immediately, but it will take them several years to modify, test and validate those designs before they can meet U.S. regulations. Until they do, it's illegal to sell those cars in America.
Anybody else out there agree with me that this is crazy? Let's let automakers bring their fuel efficient European cars over here immediately. As long as a car meets the Euro 5 emission regulations and the latest European NCAP safety standards, we ought to let them build those vehicles in the U.S. with no other modifications.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
As car sales continue to spiral downward, some product planners in the industry are beginning to ask the unthinkable: is the American car market going to shrink permanently?
They are starting to consider the possibility that the days of selling 17 million new vehicles every year are over, and that going forward the American auto market is going to be smaller.
There are a number of reasons why product planners are beginning to contemplate this possibility, but the two biggest causes are the high cost of oil and the skyrocketing costs of regulations. Amazingly, even though raw material costs are soaring at rates never seen in a century, the car companies say that pales in comparison to cost pressures they're grappling with due to CAFE, the California CO2 standard, and upcoming safety standards.
Whatever the cause, if, and I emphasize if, the U.S. car market is indeed going to be smaller in the future, that would have a drastic and painful impact on the manufacturing base in the country.
John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.
Billionaire oil tycoon T. Boone Pickens rocked the automotive and energy industries this week with a bold plan to drastically reduce America's dependence on imported oil. His plan, in case you missed it, is to build massive wind farms to produce electricity, and to stop making electricity from natural gas. Then he wants to divert that natural gas to be used in cars and trucks.
Doing so, Pickens argues, would allow the U.S. to reduce its use of imported oil by 30 percent. Natural gas proponents point out that it burns far cleaner than gasoline, that we have abundant domestic reserves, and that depending on where you live, it sells at the equivalent of $1.50 for a gallon of gasoline.
Mr. Pickens may know a lot about the oil and gas industry. But getting people to buy cars that can run on natural gas may not be as easy as he thinks.
When Chrysler rolled out three electric vehicle prototypes a couple of weeks ago most EV experts were skeptical. They were even more skeptical when the company claimed that it would have an EV on sale by 2010. Wait a minute, everyone wondered, how could Chrysler have caught up with GM, Nissan and other automakers who have been working on EV's for a lot longer?
Chrysler has been harshly criticized by analysts and the media. And with good reason. It's lost a ton of sales and market share. It had to bail out of leasing when its residuals plummeted. It came up $6 billion short trying to renew its credit lines. And its debt rating is pure junk.
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