Two days after General Motors Co. announced a partnership with Amazon.com Inc. to deliver the online retailer’s packages to more than seven million GM vehicles, CEO Mary Barra fielded a question from a prominent Wall Street analyst. “You have 100 million cars on the road, more or less,” said Adam Jonas of Morgan Stanley & Co. “Amazon is going to spend about $60 billion this year on shipping and fulfillment, and you can really help them solve a major pain point for them in their customers and logistics. “First, is this not just the tip of the iceberg in the ways that GM can work with Amazon on logistics and customer experience? I mean, this can be a lot more than just Amazon putting their junk in GM’s trunk, right, Mary?” The consummate diplomat parried the “junk in the trunk” riff before delivering her money quote: “There’s much more opportunity with Amazon and others,” Barra said, according to a transcript of … [Read more...] about Howes: A glimpse of GM’s future – Amazon junk in trunk
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Why Ferrari’s shareholders won’t let them leave Formula 1
Recently Formula 1’s new management has revealed their proposals for the future of the sport, including a new engine specification from 2021 onwards. Several of the current and potential future manufacturers have voiced their opinions. Not surprisingly Ferrari has been very vocal, and have – once again – threatened to leave the sport entirely. In a conference call with analysts, the Chairman and CEO of Ferrari Sergio Marchionne said he was unimpressed with some of the changes that Liberty is proposing. Marchionne apparently said that walking away from Formula 1 would be a good thing for Ferrari’s shareholders. “It would be totally beneficial to the P&L”, he said. “We would be celebrating here until the cows come home.” This isn’t the first time Ferrari has threatened to leave the sport, in fact it’s become something of a regular cycle that Formula 1 finds itself in. Almost anytime changes are proposed in the sport that … [Read more...] about Why Ferrari’s shareholders won’t let them leave Formula 1
Kia Stinger GT-S vs BMW 440i and Jaguar XE S – can it handle the heat?
Even from the cabin of the BMW, handsome Estoril Blue, the attention slathered on the leader of our small convoy isn’t difficult to see. It could be that car’s own rich hue, which is suspiciously similar to Alfa’s Competizione Red, or the strangely discreet quad exhausts, or the fact that its prominent haunches flow rearwards to meet a tapering fastback and form an eye-pleasing Kamm-tail of sorts. All warrant a closer look. Or those enjoying the delights of the M4 westbound on this overcast weekday morn could simply be leaning over to make sure they’ve read the badge on the boot-lid correctly. So we’re all on the same page, it says ‘Kia’. By now you’ll be aware of the Stinger, seen here in top-spec, establishment-bating, eyebrow-raising GT-S trim. You may have also heard that it’s better than expected, with plenty of go and a chassis that’s, not to beat around the bush, rather lively. But good enough to be regarded as a … [Read more...] about Kia Stinger GT-S vs BMW 440i and Jaguar XE S – can it handle the heat?
Elon Musk has a secret weapon to increase Model S demand
Tesla Motors has a bit of a reputation for not being as transparent as some would like. So, when the end of the fiscal quarter arrives, there's always a lot of interest in the financial statements the company is obligated to release. But the info and insights don't just flow from its official 8K filing. The automaker also holds a conference call that sees CEO Elon Musk, CTO JB Straubel and Chief Financial Officer Deepak Ahuja taking questions from assorted financial analysts for an hour or so. It's here that we often learn interesting details behind the numbers, as well as hints of what's to come, sandwiched between quotable quotes from Musk.This week's call, following the release of 2014 fourth quarter financial results, certainly didn't disappoint. When asked by a Barclay's representative how much money Tesla will put towards capital expenditures over the next several years, for example, the irrepressible Musk said the company was "going to spend staggering amounts."This, of course, … [Read more...] about Elon Musk has a secret weapon to increase Model S demand
Quote Of The Day: The Autoextremist Gets His Bash Back Edition
It probably won’t come as too huge of a surprise to many of TTAC’s regular readers that the first car blog I ever read was Pete DeLorenzo’s Autoextremist.com. This was years ago, years before I ever imagined that I would get pulled into the crazy world of the auto industry, and at the time I was deeply impressed. Here was a guy who, having seen the Detroit machine from the inside, was documenting the self-destruction of an industry with an unmistakable bravado and flair for storytelling. In retrospect, it’s strange to realize that my tastes for automotive coverage were well-defined before I ever considered entering the profession.In any case, writers are forever challenged when the stories they grow to love take a turn for the unexpected, and DeLorenzo seemingly abandoned his caustic style by the time the auto bailout hit. But cheerleading never quite sounded right coming from the man peddling “bare-knuckled, unvarnished, high-octane truth,” and TTAC … [Read more...] about Quote Of The Day: The Autoextremist Gets His Bash Back Edition
Jerry Flint (R.I.P) Lays Into GM, October 2000
Editor’s Note: Legendary auto journalist and TTAC inspiration Jerry Flint died this week. Rather than write a sappy eulogy, we’ve decided to let Jerry speak for himself. What follows is a speech Flint gave to GM employees at Milford Proving Grounds in October 2000. It’s feisty, passionate and deeply insightful… the kind of speech that made Jerry famous, and paved the way for sites like TTAC. Moreover, it shows just how deep GM’s problems run, and serves as a timeless warning against the worst impulses of the business. Rest In Peace Jerry… we will always remember you at your best. [Courtesy: The Olds Zone Hat Tip: Ken Elias]There was an auto executive, he was a very high ranking GM man. You all know his name but I won’t mention it because it might embarrass him. He’s not at General Motors anymore.I once asked this man what he would do if he found himself the chief executive of General Motors. He said, and I … [Read more...] about Jerry Flint (R.I.P) Lays Into GM, October 2000
Marchionne Is The Man In North America, As Fiat And Chrysler Align Management
[UPDATE: Fiat press release outlining the complete new management structure added]The awaited consolidation of Fiat and Chrysler operations is complete, reports Bloomberg, and CEO Sergio Marchionne is taking the North American job for himself. Joining Marchionne at the top of the company’s new regionally-based divisions, are Gianni Coda, former head of purchasing at Fiat and now the boss of European, African and Middle East operation; Cledorvino Belini, erstwhile head of Fiat in Brazil is now in charge of all of South America; Michael Manley, previously boss of the Jeep brand, will be leading the firm’s effort Asia. These four regional bosses will be part of a 22-member “group executive council” which will manage all of Fiat and Chrysler’s operations. The details of the council’s makeup still haven’t been released, but the big news is well encapsulated by a quote from Gianluca Spina, chairman of the business … [Read more...] about Marchionne Is The Man In North America, As Fiat And Chrysler Align Management
Fiat and Chrysler Announce Strategic Alliance
Fiat S.p.A. and Chrysler LLC (backed by its majority stakeholder Cerberus Capital Management) today announced an alliance that will see the two automakers share vehicle platforms, distribution channels, and technology. Fiat will take a 35-percent stake in Chrysler, although no money will change hands, as Chrysler gives up a chunk of itself in return for viable future product development. (Chrysler’s been broke for long enough that virtually all meaningful product development has been halted for some time.) The current agreement is nonbinding but should become a finalized partnership by April, according to Chrysler. Fiat Group includes the bread-and-butter brands of Fiat, Lancia, and Alfa Romeo, with luxury and performance marques Maserati and Ferrari perched at the top of the empire. We would expect most of any platform sharing to come courtesy of the lesser three Italian companies, although a rundown on the alliance by Chrysler chairman and CEO Bob Nardelli states that … [Read more...] about Fiat and Chrysler Announce Strategic Alliance
VW’s Karmann Ghia Was a 5/8ths Scale Chrysler
With a German-Italian name like Karmann Ghia it may surprise you that the little coupe/roadster built on the Volkwagen Type I (aka Beetle) chassis had its origins not on the continent but rather a few thousand miles west of Europe, in Detroit, of all places. By the early 1950s, the postwar Volkswagen company was getting on its feet and had expanded their lineup to include the Ben Pons inspired Type II aka Transporter aka Bus and a cabriolet version of the Beetle, built by the German coachbuilder Karmann. That company’s director, Dr. Wilhelm Karmann, had tried to increase his business with VW but management in Wolfsburg was less than receptive to his suggestions for variants of the Beetle. Karmann turned to Ghia to see if a collaboration would be more successful. Corrozzeria Ghia’s Mario Boano and Luigi Segre had already done some consulting for VW, though the company was about as accepting of their ideas as it was with Karmann’s.Not much earlier, Boano’s son, … [Read more...] about VW’s Karmann Ghia Was a 5/8ths Scale Chrysler
Sports-Car Racing’s Brave New World
"Stone Age technology," some boo. "Bog slow!" others bray. "Ugly!" jeer all as one. Our own Brock Yates said they look like "pumpkin seeds." And they do. Now in its third season, Daytona Prototype, the marquee attraction of the Grand American Road Racing Association's Rolex Sports Car Series, has been received with booming skepticism. The brainchild of Jim France (of the you-know-who NASCAR Frances), Daytona Prototype is a jab in the eye to traditionalists. The cars are revolutionary in their way, but purists may prefer a shorter form of the word—revolting. Yet at Daytona's Rolex 24 in February, these pumpkin seeds delivered some of the best American sports-car racing ever. But we're getting ahead of ourselves. First, a little history. American professional sports-car racing is the guest that never came to dinner. Open-wheel racing—despite its periodic, graceless disarray—has eaten hearty often, and stock-car racing has been face down in the … [Read more...] about Sports-Car Racing’s Brave New World