CARBIZ

From the Toronto Star yesterday, Brazil is leading the world in ethanol production. Brazil will be self-sufficient in oil this year, not having to import any oil. Brazil is the world leader in ethanol. Sugar cane ethanol is more effecient: Brazil having achieve at ratio of 8.3:1 for every unit of energy expended to produce ethanol. Corn based ethanol, by comparison only achieves 1.3:1 at this time - not a very reassuring number. The U.S. currently imports nearly 60% of its oil. America is one hurricane or suitcase nuke away from gasoline rationing. On the news last week they listed where all of the U.S.' imported oil comes from. Venezuela, Nigeria? You guys are crazy. Only Canada and Mexico's imported oil is reliable. I'm all for freedom of expression, but if I had an SUV I would give is up in a New York second for a Malibu if it meant sticking it to Iran.

It is amazing how we are influenced by the cars our parents drove, or by our earliest childhood memories in certain vehicles. My father always owned big Chryslers: '66 300 and then a '69 300. My uncle had a '67 300 and his father had a '70 New Yorker. God, I loved those cars. My mother had a '67 Caprice and a '66 Pontiac wagon (navy blue!). I remember my stepfather had a crap box '64 Fairlane - duct tape and rust paint all over it! When I got my license in 1978, I drove my mothers ancient '67 Newport. It was a nice car, but on its last legs. She bought a 1980 Ford Econonoline van and had it customized. Yikes! I look at the entire era of the '60s as the peak of American car prowess. There were some amazing vehicles on the road then. I am sorry for those rice queens out there, but there is no way that my college roommate's 1973 Datsun 210 will ever stack up to a 1973 ANYHING from GM, Ford or Chrysler. Even a '73 Vega has more presence!

General Motors major weakness is its bland products. I think Lutz is slowly addressing this. As GM's models regain relevance in the market, I believe the customers will come back. Let's face it: Toyota doesn't build any "gotta have" products either. They are merely enjoying a (unjustified) sterling reputation for quality and the undying devotion of the media. The media will turn on them like a pack of dogs, once the bloom is off the rose. With all the billboards Toyota is taking out, claiming to be as American as GM, it looks like they are becoming more desperate to hold onto their reputation. With CR voting all their categories as Asian this year, there is nowhere else to go but down. Let's see: 825,000 trucks recalled because the front wheels were falling off, Toyota and Honda getting caught LYING about their horsepower numbers, Toyota claiming to outselling Chevrolet, then getting caught having added their Scion numbers to their Toyota numbers - ah, well, eventually somebody in the media will realize we've all been HAD by Japan Inc.!

The thing to remember about crap boxes like the Yaris and Fit is that there are buyers from countries (Europe, South America, South Asia, for example) who view even mid-size cars like the Malibu and Camry as being TOO LARGE. If all you have ever driven are little Corsas and Unos, then you move to Canada or the U.S., you will be inclined to drive what you are used to. I have driven the Aveo many times and view it as cute. Although I would rather own one over the Smart car, which I view as a monstrosity, I would never seriously consider buying one of these tiny cars. But, then, my first car was a 1967 Dodge Polara! My partner, on the other hand, who is Brazilian, views the Malibu as monstrous, and would rather buy an Aveo. Go figure. Besides, at $5 a gallon, all of these cars start to look awfully good.

There is no more proof of the irrelevance of Toyota and the delusional state of the American public than the ES series. While GM still gets assailed for the valiant attempt at an entry-level luxury car, Torrent and other obvious rebadges, Toyota has been pulling off this fraud for many years. Undoubtedly the ES is a nice car. But who in their right mind would pay the extra $7 grand over a similarly equipped Camry? If I buy a luxury car, I want a luxury car that looks like a luxury car - not a Camry with bulges on the headlights!

No matter which side of the issue you are on, any intelligent person will realize that these one-sided trade imbalances can't continue. China is going to own more American treasury bills than any other entity very soon. And then what? Remember one thing: China is a totalitarian state. Economists pat themselves on the back that no foreign power would dare make a run on the U.S. dollar because it would only serve to plunge the world into economic chaos. Well, that may be true of democracies that have interest groups pulling in every direction. What about a one-party state? With clarity and conviction, China could pull their entire country in one direction while the Western world plunges into chaos. The perfect storm of spiralling energy costs and the American current account deficit could really take the wind out of America's sails. Throw in the billions every month that Iraq is costing and I am very afraid for 2007. I just can't believe Washington is ignoring this issue. American manufacturers are jumping into bed with Beijing, but we know they are just going to copy our processes and then use them against us. I am all for Free Trade, but it has to be two-sided. Trade with Europe is two-sided. Trade with South America is two-sided. TRADE WITH ASIA IS NOT TWO SIDED.

I love this game of trying to guess who is who on this site. I think everyone on this site, from the 18 year old enthusiast driving his/her first used Grand Am, to the RenCen mole dropping hints and tidbits of of info, to the Toyota apologist - all of these people have something interesting and worthwhile to bring to this site. Although some of the arguments get a little tired at times, one thing this site is not is BORING. BACK TO THE TOPIC AT HAND, I find it encouraging that someone as informed as Carlos Ghoshn (or whatever his spelling is, I long ago forgot what the topic of this thread actually was!) feels that GM still has enough spark in it to be a potential threat on the market. This is what has been keeping me getting up every morning for work: the deep belief that GM does build quality, relevant products and that once GM emerges from this dark time it will maintain its crown as the world leader in automobiles.

Fault? Who said anything about fault. I merely pointed out the obvious, as has been debated to death on this site in other threads: GM and Ford employ far more people in North America, by any measurable basis than any of the Japanese manufacturers. Being the smart business that Japan Inc is (witness the total annhilation of the television and radio market in the '70s), they learned from their early forays in the early '80s, by building enough factories here (and by pretending to be humble all along) to convince the gullible public that they are as American as Chevy and apple pie. At least now the gloves are off and Toyota is no longer pretending not to be interested in wiping out Ford and GM. Whatever happened to Electrohome, Zenith, Philco, RCA...oh, I could go on

Yeah, do the math: Toyota hires 900 people in Woodstock while Ford and GM lay off 3,500 in Oshawa and Oakville. Sounds like progress to me.

Carman's right: Oldsmobile peaked in 1987, the year the Legend debuted - then it was downhill every year after that. Obviously, GM lent a helping hand in Olds and Buick's demise, but the same people who would have bought an Olds 25 years ago are now buying Hondas. I personally believe the cycle will come full circle: The old cliche about becoming a victim of your own success. I see a lot of 60 and 70 year old customers, who normally would buy GM being badgered into Toyotas and Hondas by their spawn. Our company owns a couple Toyota stores and Chevrolet. As I say to prospects all the time: the Toyota store has a much bigger service area and it is never empty!

My earlier remark about Japan and Korea being "closed" economies still stands. It is virtually impossible for an American or other non-Asian company to outright BUY or otherwise OWN a Japanese or Korean company. Toyota is 100% owned by Toyota in JAPAN. Ford may own PART of Mazda and GM may own PART of Daewoo, but nobody outside those closed economies owns OUTRIGHT any of those companies. Mercedes can walk in and buy out Chrysler because we are in an "open" market. Toys R Us was even forced into a "partnership" to get into Japan. Hardly the stuff of a free market economy.

Now is that 240 real hp., or the Honda imaginary horsepower?

Some of us don't mind the "awful" electric steering. I have it on my Malibu and I really like it. I am not one of these self-appointed car experts that believes I should feel every road bump and have to use two hands to turn a corner. I might actually want to be reaching for my parking pass while doing 180 degree turns in my underground garage. Once you are used to the electric steering, others feel heavy and dead. I think anyone who looks at the Equinox with an unbiased eye will realize that it is a decent vehicle for what it is supposed to do. I agree the seats are a little cheap looking, but in leather form much better. Its performance is more than adequate. It is no rocket, but then it wasn't intended to be. We are at 1.05 a litre (about 3.90 a U.S. gallon!, boys and girls). The Equinox gets far better gas mileage than the Blazer it replaces and equals the Tracker. My only concern is that GM lets this model drag on for 4 or 5 years before a major refresh, like it has with the Trailblazer.

See the Toronto Star today for yet another example of media bias. They harp about a 1999 Century that has 75,000 miles on it that MAY have a leaking intake gasket. The headline is huge and the article is surrounded by a Toyota and a Honda ad. COINCIDENCE? I think not. What burns my ass is that even IF the intake gasket is a problem for GM, a 1999 Toyota or Honda would have already required a new timing belt, which doesn't cost that much less to fix than an intake gasket on a Buick. However, Toyota and Honda consider that MAINTENANCE, thus avoiding the wrath of the media. Toyota and Honda get away with murder (oil coking problems, exploding transmissions) and GM gets beaten up for things that aren't even its fault (gas tank sensors in sourthern Ontario 3 years ago.)

In today's Toronto Bleeding Star, they published (with huge headlines, of course) the terrible plight of a person with a 1999 Century that has 125,000 km (75,000 miles) and he has been told the intake gasket is leaking. Huge, bold headlines, surrounded by a Toyota ad and a Honda ad. THINGS THAT MAKE ME GO HMMMMMM...... Now, my point here is that a 1999 Honda or Toyota would have needed a timing belt replacement by now, which Honda considers MAINTENANCE and, therefore, avoids the wrath of CR and other rags. Yet, when GM has an intake gasket go, because it is a repair, it warrants huge headlines and bashing from the usual media suspects. Those of you who can, should pick up a copy of the Star today. This happens far too often to be a coincidence.

There is no way in hell that a Toyota Corolla with its low torque numbers at higher RPM numbers will get REAL WORLD mpg figures as high as they claim, nor will it beat the Cobalt with its higher torque at lower RPM numbers - not unless you drive like my grandmother. That is the problem. Everybody (sheeple) rush out and buy Civics and Corollas because of their higher TESTED mpg numbers, but who is going to achieve those numbers in real life? Ever drive an underpowered Corolla on the freeway? You have to be in 3rd gear to get any power! With the standard shift it is tolerable, but with automatic it is underpowered AND noisy. Mazda is much the same way.

It is amazing that the media is willing to forgive Hyundai and Kia 20 years of building nothing but sh*t (let's face it: ALL OF THEIR VEHICLES WERE SH*T, NOT SOME OF THEM!), yet they won't give GM a break on any of their vehicles, even though only SOME of them were sh*t over the past couple decades. I mean, WTF???????????????????????????????????????? If I seen one more glowing report on the AZERA, or any other Korean POS, I will throw up! YES their vehicles have improved YES some of them are even nice enough to not be an embarassment on the road BUT REALLY????? We are witnessing two ends of the spectrum. Toyota, who we all might agree does build some pretty decent vehicles and who has managed to coat itself in Teflon so nobody (especially the media) recalls any of the blunders or lies (current horsepower wars), gets all the breaks. Toyota walks on water, but at least I would concede that some of the accolades are deserved. The other end of the spectrum, Hyundai - possibly the worst car company on the planet, has a couple good years and all is forgiven. UNBELIEVABLE. F**KING UNBELIEVABLE.

Let's face it: there absolutely must be some information that Wagoner and the Board cannot MUST not share with the media or public. Some of that information may be shared (leaked?) to certain stakeholders. The dealers certainly are one of those stakeholders. I don't know what dealer arrangements are like in the States, but it can't be easy to sell ice cream in a 50,000 sq ft facility with parking for 500 cars..............

Actually, in the GTA, GM's market share hangs on to 15%. They are talking about people who CONSIDER a GM vehicle - only 25% CONSIDER them. Even less BUY. Yet, GM claims the Toronto zone is the only zone to post sales increases so far this year. Go figure. Perhaps the success of the Aveo, Cobalt, etc. is starting to pay off.

Europe and South America have been far more successful in warding off Japan Inc., or perhaps it has only been that Japan Inc. has focused their frontal assault on North America because we are saps and would rather by anything that is made somewhere else, whether it is a car, electronics or fashion...? As Toyota marches on to its inevitable (?) ascent to #1 auto manufacturer in the world, there would appear to be cracks in the armor, yet the band keeps playing on.......

Some vehicles are getting overly complicated. Being the first kid on the block with the not new bike can be very risky. I'd like to know what will happen to the long term resale value of all these high-falutin' cars (like the Prius, for example) when the real news gets out about how expensive it is to maintain all the gadgets on these cars when they get older!!

At a GM meeting last week, GM's own figures show that fully 75% of consumers in the greater Toronto area don't even consider GM when looking for a new vehicle. Although I shouldn't be surprised, I find those numbers breathtaking! Of course, I have a number of theories to help explain those numbers, but it wouldn't be PC to discuss them................

I hate to say this, but in some areas Kia and Hyundai are strong players. I see them everywhere in the Toronto area. Little crappy Hyundai stores with only room for 4 cars in the show room are selling 200 cars a month - more than any GM stores are in this area! Part of the problem GM is facing is that GM is getting squeezed at the low end of the price scale by the Koreans and at the high end of the price scale by the Europeans. In big cities where extremes of income tend to be the case and where transient (immigrant) populations tend to be more common, GM is getting its ass kicked. 600,000 capacity is only more bad news. Too bad Korea and Japan are closed economies.

Speaking as someone who works the sales floor, I have to say that I agree with some of what Buickman has been saying. When a dizzying array of programs, rates and initiatives are unleashed on the dealers every day; when contests are announced a week after they had already started; when we are told "this program is gone at the end of the month" and then it continues; when products are promised and then take 3 years to get to market (SSR); well, it doesn't paint a pretty picture, does it? I don't envy Wagoner his job. The captain of the Titanic was not soley responsible for the ship's sinking: what about pressure from head office (Wall St.) to break Atlantic speed records? What about wireless operators that shut down for the night (then the norm - the California was only a few miles away and watched the Titanic sink!) What about a ship that was rushed through sea trials and launched? Anyway, I think you get the point. Our products are better than they have ever been. I truly believe that. We are on the right course, I believe that also. However, we also have too many product lines and too many models. That is obvious. Will Rick cancel more brands? I hope not, but I believe it is necessary. Should Buick go? I would see Saturn or Pontiac go before Buick, but what do I know? Oh, and I really laughed at the earlier suggestion that customers would gladly pay MSRP for the opportunity to buy online and avoid the dealer experience. Toyota was sued in Western Canada for doing just that. People got pissed because there was no negotiating online and considered that to be anti-competitive. Consumers will bitch and whine even when they get the vehicle for under cost. It is a good salesperson's job to convince the consumer of a good deal; otherwise, FREE isn't a good deal.

Two points really hit home for me: the remark from a former GM owner who bitches about how bad his 1980s Skylark was. Very clever in not pointing out that the car was from a very long time ago. As has been pointed out here, this is the perception problem: of course a 1995 Accord was a better car than a 1980s Skylark. Each generation of either domestic or imported vehicles is naturally better than the one before it. Secondly, it occured to me when the article quotes an (arrogant) GM executive talking about "fat assed" Americans that Toyota doesn't have this problem because, firstly, nobody here speaks Japanese and we wouldn't know what they said or thought about American consumers and, secondly, because Toyota's headquarters is in Japan where they don't have to put up with pesky American writers looking for exclusives and dirt. Surely this is an advantage for Japan Inc. And what is wrong with old geezers anyway? I've sold two Impalas in the past month to 70+ year olds and let me tell you - they have the money and they know what they want. I'd rather sell them than a snotty, know-it-all 23 year old who thinks everything Japanese is supreme and is only looking at a Cobalt because his dad is co-signing and is making him look at the Cobalt!