Alien Bugs

is first job in the industry was with GM, which he joined after obtaining a degree from Purdue University.  He signed on in 1964. In 1975, Dauch was the plant manager of the Chevy Detroit Gear & Axle plant on Holbrook Avenue in Detroit—in the city of Detroit.  As Dauch observes, if the Detroit River is where the city starts and 8 Mile Road is its northern limit, then the facility is at 4 Mile.  Detroit Gear & Axle is truly one of the places to which the term “historic” can be applied: GM started on the site in 1917. As time went on, Dauch recalls, GM thought about closing the facility.  It didn’t get a whole lot of attention.  It didn’t get a whole lot of investment.  While Dauch believes that the axle, gears, and other elements of the driveline are one of three major systems that make a vehicle what it really is from the sense of getting from A to B, with the other two being the engine and transmission, he also acknowledges that this is an area that tends to be neglected from the manufacturing side and is something that end consumers really don’t pay a whole lot of attention to—in fact, it is probably better in some ways if they don’t know it exists, it just needs to work.  Reliably.  Dependably.  Which means that it needs to be designed, engineered, and produced with precision.  (And if Dick Dauch has anything to do with it: Passion.) GM put Detroit Gear & Axle on the block.  In March, 1994, Dauch and a private investment group bought five manufacturing facilities from GM, including Detroit Gear & Axle (and Detroit Forging: forging is a process that Dauch points out many companies have stopped doing, something that is certainly vital for driveline performance).  Dauch--the co-founder, chairman of the board, and CEO of American Axle & Manufacturing—did what other’s dream of: He and the team that he assembled (know well that Dauch is a man who firmly believes in teamwork) were about to show the world how it really ought to be done.  Since the company’s establishment, it has become the 12th largest automotive supplier in North America.  It now has 14 locations in the U.S. and operations in Brazil, England, Germany, Japan, Mexico, and Scotland.  When it started, the company had two customers: GM and, way secondarily, Ford.  Today the company has in excess of 75 customers; in many cases, the company has won lifetime contracts for projects (e.g., the new Dodge Ram).  (GM is still the major customer, accounting for about 76% of the company’s business.) How has the company done since it has started?  One metric pretty much tells the whole story: In 1994, the number of discrepant parts per million (PPM) was 13,441.  This year, the number is 49.  And while the manufacture of axles (daily production is 16,500) and forgings is a shop-floor intensive undertaking, and although Dauch is exceedingly zealous about the importance of manufacturing (he authored a book titled Passion for Manufacturing), he emphasizes that design and engineering are vital to the creation of the products that AAM delivers (delivers, by the way, on time and in sequence). One of the interesting—and laudable—things about what Dauch has spearheaded is maintaining manufacturing in an urban area, in what is undoubtedly a “Rust Belt.”  The land and facilities that AAM acquired were eyesores—to put it mildly.  As Dauch puts it, “Many of America’s corporations have, or are giving up on manufacturing, displacing the manufacturing hubs such as Detroit.  I was determined not to let it happen here.  Detroit needs value-added engineering and manufacturing to generate jobs, decent wages, and adequate profits.”  Today, there is a 174-acre industrial campus including a greenbelt.  The place is meticulous.  But don’t mistake Dauch for someone who lets his heart drive his wallet; he points out that he has a fiduciary responsibility to investors (AAM went public on the New York Stock Exchange in January, 1999).  Performance counts.  And the people at AAM in Detroit are delivering. This year, Dauch and his colleagues had to make another decision: Where to establish a new world headquarters, a building that would allow it to bring together management, designers, engineers, manufacturing, people, marketing people, and others in a way analogous to the Chrysler Technology Center that Dauch had helped plan back in the ‘80s.  There were several states considered.  Numbers were crunched. The decision announced on August 29: Michigan.  Detroit, Michigan.  “Detroit has proven to be an excellent home base for our worldwide operations.  Our global growth has brought new business and new jobs to AAM’s worldwide facilities, the state of Michigan and the city of Detroit.  Now, with the cooperation and assistance of the state of Michigan and the city of Detroit, we are proud to build our world headquarters in the city and state that are synonymous with the automotive industry.”  And when he says “in the city” he means it: the new headquarters, which is to be fully occupied by the fourth quarter of 2003 (Dauch describes the way they work at AAM on projects, whether it’s for a driveline or a new office building: “Lay it out, think it through, then it’s execution time.”), will be on the corner of Holbrook and I-75, nearby the manufacturing campus that was Detroit Gear & Axle. Some people are skeptical about the ability of people in the U.S. to compete globally in manufacturing, especially people in cities like Detroit.  I pity the person who might try to tell Dick Dauch that. /As the Baby Boomer bulge moves inexorably closer to the exit end of the snake, automakers are increasing efforts to engineer vehicles for their increasingly superannuated customers.  The latest example is a body suit developed by Ford that simulates the problems associated with advanced decrepitude.  The so-called Third Age Suit (a reference to the famous riddle of the Sphinx?) is a cross between a beekeeper’s protective gear and a spacesuit and restricts movement in areas like the elbows, knees and back.  It even comes with goggles that simulate vision with cataracts. _For those of you who like their car names to be both meaningless and hard to pronoun correctly, it is a dark time because Kia has announced that the Sephia sedan will become the hard-to-mispronounce Spectra.  As an extra added bonus, the word spectra actually has a meaning (and no, it’s not the international crime organization James Bond battled.) ž Kia’s CEO acknowledged that the name change was partially because people were not sure how Sephia should be pronounced.  Unfortunately, he offered no guidance on the matter. Bonus for those hardy souls who actually clicked on "View More": the organization that Bond fought was S.P.E.C.T.R.E. or Special Executive for Counterintelligence, Terrorism, Revenge, and Extortion.  Now, that's a name. j Volvo will present a concept car at the Frankfurt Auto Show that features a Continuously Controlled Chassis Concept. In addition to having one heck of an alliterative name, the CCCC has a microprocessor that monitors the precise position of each wheel every alternate millisecond and adjusts the chassis’ damping accordingly. ¥The Newsmonger says that if Volvo wants his car-buying dollar they better get a chip that is working every millisecond and not slacking off half of the time. Á By Gary S. Vasilash, Editor-in-Chief After his “resignation” as chief executive of the Jaguar Racing Formula One Team, Bobby Rahal talked to AutoWeek magazine.  It seems that Rahal found himself in a bit of a political tussle with long-time F1 stalwart Niki Lauda.  Rahal, who was brought in by Jacques Nasser, began in his position December 1, 2000.  Lauda was brought in by Wolfgang Reitzle, head of the Ford Premier Automotive Group, as the chairman of the Ford Premier Performance division this past February. It seems that “chairman” trumps “chief executive.” In the AutoWeek interview (September 3, 2001), Rahal is quoted as saying, “Formula One is a club.  If you haven’t been here a long time your chances aren’t that great at succeeding.  It’s very incestuous.  There is a definite dichotomy between the [new] manufacturers’ teams and the blue bloods such as McLaren and Williams, the ones who built F1. . . . The club rules Formula One.  Lauda is a part of that club and in many respects, that might be good for Jaguar.” It will be particularly good if Lauda benefits form the changes that Rahal made during his short tenure. The performance of Jaguar Racing (and Stewart Racing before it) has been less than whelming.  Many people figured that Rahal, a successful CART owner and a storied championship driver in his own right, would be able to help turn things around.  This season things didn’t turn.  One can only think that Rahal probably could have used a little more time.  If you’ve followed his career you know that he has always been a patient driver and a patient owner.  I have had the opportunity to speak to Rahal a few times, and it is clear to me that not only does the man understand driving, he understands engineering, which is certainly critical in modern motor racing. But the Old Guard won. An argument could be made that there is no place for patience in an endeavor that’s all about going fast.  But let’s face it: Even Schumacher didn’t bring the championship to Ferrari his first season with the team. While this might be a stretch for some people, it seems to me that this is the same sort of Old Boy attitude that still prevails in the auto business.  You’ll note how companies work to bring people over from some other company to their own.  Reitzle from BMW, for example. The move of Robert Lutz from Exide to General Motors has been uniformly and universally hailed.  When I’ve brought up my misgivings about the move to fellow auto writers, I am looked at as though I am overdue for my medication.  It seems that I don’t understand that he is the über Car Guy, the Man Who Knows What Cars Should Be. I try to point out that, perhaps, his day is passed, that the Viper was certainly a sharp poke in the a---, er, eye for many people, but the Viper was, well, more than a few years ago.  Maybe, I suggest, what GM needs is a leader more of this century, not the last.  I don’t want to come off sounding ageist here, but it seems to me that what GM needs to do is to attract people to its brands who are literally one-half century younger than Lutz.  Not even Einstein was with “new ideas” like quantum mechanics as he got on in years.  He may have been the Physics Guy, but times change and not always with it people. But no, the GM brass opted for the tried-and-true, for a “blue blood,” “part of the club” that drove Chrysler forward in the last part of the last century.  (Have you noticed how no one seems to talk about Exide’s fortunes of late?) Maybe the Old Guard is right.  (At least they’re right so far as their rules go.)  And maybe there will be disinterest from consumers across the land. NDCX wants to be loved.  It has just unveiled its new ad campaign for the Chrysler brand with the theme “Drive=Love.”  Not content with friendship, or even heavy petting, DCX is demanding the big “L” from it customers.  What’s wrong with saying, “This is a well-engineered car, it’s reliable, nicely-styled and priced competitively.  bIf you’re in the market for a car why don’t you take a look at this one?” According to Chrysler, their customers want vehicles they can “fall in love with.” My question: What about all those potential customers who are afraid of commitment?” The campaign launched on September 10. You can adore it on a TV screen or in a magazine near you. WDelphi announced that it has developed a fuel injector for large diesel engines, creatively named the Electronic Unit Injector, that is compact, improves peak injection pressure and shave 6.6 kg off the weight of previous models used on six-cylinder engines. The company estimates this unit puts them two years ahead of the competition. r By Christopher A. Sawyer MG will return to the U.S. market with the 2003 X80, a 2+2 sport coupe (a convertible will follow) built in Modena, Italy, and first shown at the Frankfurt Motor Show. Sources say it will be the first of many MG-badged automobiles to be sold in North America. Parent company MG Rover got the ball rolling when it bought Qvale Automotive Group’s production facility in Modena in June. This 120,000 ft2 facility built fewer than 500 Mangustas since the start of production in November 1999. The X80 will use the Mangusta’s box-section steel monocoque chassis. Built by Vacari & Bosi – a small Modenese firm that also provides chassis for Ferrari, Lamborghini, and Maserati – it is exceedingly strong, and meets all U.S. crash standards. What will not be carried over are the Mangusta’s composite body panels. The X80’s body, drawn by MG Rover design director Peter Stevens, will be made from superplastic formed aluminum panels. Superforming is a hot stretching process that forces a specially formulated alloy panel onto or over a single-surface tool via air pressure. Superform Aluminum of Blackpole, England, is the likely source for these panels. The company currently provides body panels for the Morgan Aero 8 and Panoz Esperante, among others. Because the Modena facility does not have a paint area, the panels will be finished off site. The powertrain is based around versions of Ford’s proven 4.6-liter Mustang motor mated to either an automatic or manual transmission. Engine choices include the standard 260-hp Mustang engine, a 385-hp supercharged version of this motor, and the 32-valve Mustang Cobra powerplant. It won’t be the only MG to use these engines, however. MG Rover also is looking at importing its ZT sedan. This rear-drive luxury vehicle is based on the front-drive Rover 75 platform, and powered by the same 385-hp supercharged 4.6-liter V8 found in the X80. A six-speed manual transmission will be the only unit offered, though MG sources suggest that a version with the 260-hp V8 and an automatic will be offered in the U.S. @Nissan is taking their dealerships to a virtual day spa and giving them a makeover. Over the next seven to nine years Nissan will implement a globally uniform design look based on the theme, “One World. One Brand.” The company says that the new dealership designs will bespeak “comfort, control and visibility.” ÈPerhaps the enhanced visibility will let the customer see if his salesman is actually taking every new negotiation point to his manager as he claims or just killing time at the coffee machine. ÷ About America By Gary S. Vasilash, Editor-in-Chief Millions of Americans have read books by Tom Clancy and those who write on the same subjects that he has in his Jack Ryan-based best sellers.  Consequently, the events on September 11 aren’t wholly unthinkable by us.  But there is a tremendous gulf between fiction and the all-too-real deaths of those who perished in the World Trade Center, in the Pentagon, and on commercial airliners.  The thinkable is unthinkable. But there are differences in the real world.  Usually, in the fiction there is a visible lack of will by many people, be they government officials or the general public.  That is certainly not the case right now.  There is evident understanding of and support for the efforts that must be taken to protect free people whether they are in the United States or elsewhere in the world. One thing that is tremendously impressive is the outpouring of support from individuals and corporations for both the rescue efforts in New York and Washington and for the well being of those families who have lost loved ones.  I don’t think there is a single person in this country who hasn’t felt sadness for what has happened to innocent men, women and children. Many companies have organized charitable programs specifically to address what has happened.  What you may not realize is that the global automotive industry is making efforts that should make all of us who work in this industry proud.  OEMs and suppliers alike are making significant contributions.  OEMs are providing not only money, but also vehicles and resources.  And the suppliers are doing the same.  In addition to emails and faxes that we have received in the days following the attacks that explain what the companies are donating, we have even had calls from company PR people who want to assure us that their company is putting together its program. One thing that is impressive and encouraging is that it doesn’t matter where the company is “owned”—Europe, Asia, the U.S.  Companies are giving.  The United States has always been there with aid and assistance for other countries around the world.  We are witnessing a positive payback. The U.S. is a country that is made up of an array of disparate peoples, many of whom came to this country to escape religious, ethnic or political persecution.  Here those people find a place that is characterized by tolerance.  The U.S. is a country that allows companies from around the world to set up shop and to compete for the U.S. market; many other countries are not as open and willing to allow market competition to exist. Sometimes we fail to take into account just what it is that makes this country great.  We fail to recognize that while not perfect, ours is a nation where there is freedom.  Its history is not written in sweetness and light; there were black marks on it from the very start, when the native peoples on this land found themselves displaced or worse, all the way through the struggles for civil rights for people of all colors.  Yet while there are those black marks, there is an owning up to them, a recognition that they are there.  In many countries such blemishes are hidden or denied to exist.  The level of revisionist history elsewhere far exceeds anything here. There are bigots in the United States, but we are not a bigoted people.  There are racists, but there are far more people who deplore racism.  There are people who hate, but those who care and even love their fellow people are greater in number. The auto industry is part of the fabric of this country.  While some may dispute who really invented the automobile, there is no question that Henry Ford is the man who put the ordinary person on wheels, and that other automotive greats like Alfred Sloan understood the importance of building products “for every purse and purpose.”  That’s a great thing about America, a great thing that despots and dictators don’t understand: While they want to restrict the access to things, be they ideas or automobiles, in America we believe that opportunity must exist for all. It is likely that in the days to come that the automobile industry is going to have a tough time.  Many people are losing their jobs in this country from the ripple effects caused by the terrorist attack.  Consequently, they won’t be buying new cars.  Other people are going to be concerned with what will happen as a result of our declared war on terrorism, so they won’t be buying cars and trucks, either. Some of us are too young to remember World War II, to remember the sacrifices that were made by people throughout this country—to say nothing of the brave men and women who sacrificed on the fields of battle.  The auto industry is one that helped maintain democracy and freedom, that helped defeat fascism. And when the war was over, the industry came back.  It came back strong. If the resolve that the people who are running and working at the great OEM and supplier companies have shown in their outpouring of support for those who have lost their lives and loved ones in the first attack of this war is any example, then there should be no doubt that the industry will be resilient in the days ahead. VAmerican Axle and Manufacturing will make net-shape differential gears for automatic transmissions for a selection of Ford front-wheel-drive vehicles. The gears were originally developed for AAM’s own axles, but the company has been able to transfer the technology to transmissions. The gears feature forged rather than machined teeth. VAmerican Axle and Manufacturing will make net-shape differential gears for automatic transmissions for a selection of Ford front-wheel-drive vehicles. The gears were originally developed for AAM’s own axles, but the company has been able to transfer the technology to transmissions. The gears feature forged rather than machined teeth. =A recent survey by the Insurance Research Council found that 65% of respondents favored the idea of putting cameras at traffic lights to catch lawbreakers. Studies indicate that cameras can reduce red light running by 40%. However, only 52% of respondents wanted cameras recording highway speeding violations. VAmerican Axle and Manufacturing will make net-shape differential gears for automatic transmissions for a selection of Ford front-wheel-drive vehicles. The gears were originally developed for AAM’s own axles, but the company has been able to transfer the technology to transmissions. The gears feature forged rather than machined teeth. For most men, Saturdays are spent cutting the lawn, watching sports, or sleeping on the couch. Not so for the group of collectors and enthusiasts, car company executives and civilians that has met every Saturday for more than 30 years with ring leader Connie Bouchard. Connie is a former Ford chief engineer, and one of the most engaging and engaged 88-year olds you will ever meet. He greets first time participants with the same warmth as those who’ve been sitting around the floor of his garage shooting the bull for years, and places everyone immediately at ease. As one of the invited, you are among friends. It doesn’t take much prodding from the assembled multitude to get Bouchard to provide a guided tour of his clock collection. These aren’t timepieces he’s bought, but ones that he’s built over the years. Each is made of brass, and sports an intricate set of gears built up from brass plate. There’s the one with a push-pull gear set, another with a ball bearing that races across a tilting brass sheet twice each minute, and others too numerous – and beautiful – to mention. In the window of one room sits the first of two trophy pieces: a bulldozer made for his kids out of aluminum that’s a bit larger than the Tonka toys I used to play with in the mid-1960s. Powered by two motors, the dozer has tracks built from individual aluminum sheets bent in a “T” with a curved lip at either end. The raised lip at the end of one tread section fits over the lowered lip of the previous piece, and meshes with micrometer accuracy along its length. “You see those treads?” he asks. “Those SOBs took forever to make and fit together. What a pain in the…” You soon discover that Connie’s language can be as colorful – and pleasant – as his personality. The second trophy item is even more impressive, if that’s possible. Built in 1931 with a jackknife and a set of instructions, it’s a scale representation of the Fisher Body coach that was long the logo for the defunct GM division. Spiral columns rise at each corner to support the roof. The body has the same outward and fore-aft curvature as the original. Plus, opening the door reveals a drop-down step and rich upholstery. “General Motors used to hold a design competition each year,” he recalls, “and they’d send the contestants blueprints for the Fisher Body coach. You had to build it, and they’d judge the craftsmanship and adherence to the design of each one before choosing a winner. Not long after I built this,” he smiles, “they changed the rules and had the kids carve a car out of flat blocks of wood. It just wasn’t the same.” On the way back to the garage, Bouchard picks up a photo of a pristine supercharged Mercedes-Benz 540K, one of only three in the world. “That was my car,” he says proudly. “I should never have sold it,” he laments. Is that because it recently changed hands for more than $1.2 million? “Nah,” he scoffs. “It was gorgeous, and when you put your foot to the floor it engaged the Roots-type supercharger Man, what a howl that car would make! And talk about fast!” With that, it’s time to return to the group gathered in the garage near the Bridgeport lathe and other tools Bouchard has used over the years to restore vehicles, build clocks, and tinker with heat engines. His age may be working against him these days, but the words of one participant nevertheless ring true. “Connie has built things most mortals would never attempt in their dreams, and forgotten more than we’ll ever know.” How very true. This industry could use more craftsmen like Connie Bouchard in its ranks. People intimate with the product, passionate about its design and execution, and engaged in the preservation of its past – and its future. NThe Patent and License Exchange, which for those of you who don’t keep up monetization products, claims to be the leading provider of financially-oriented intellectual property (IP) valuation, marketing and monetization products, has named the top ten automotive technologies as calculated by IP valuation. And the winners are: a1. Fuel Cell Technology 2. Automotive Metal Fabrication Technology 3. Electrical System Technology 4. Mirror Technology 5. Glass and Glass Coating Technology 6. Battery Technology 7. Filter Technology 8. Electric Motor Technology 9. Security and Lock Technology 10. Exhaust System Technology øGM is modestly adjusting its estimate of U.S. vehicle sales for 2001 to around 16.5 million units, which means the industry is still on track to turn in one of its best years ever.  GM estimates 2002 sales to be between 15.5 and 16 million units. NPPG has developed a new way to make custom paint colors which adds pigment to the coating materials at the atomizer. The Dynamic FlexColors system (pretty sexy name for paint, eh?) works on the same principle as an ink jet printer and requires no messy flushing or purging. PPG expects the system to be commercialized by 2003. 8It used to be that motorcycles were just fun, economical transportation and Las Vegas was a good place to gamble. Alas, both are now involved in the art world and things will never be the same. The Guggenheim Las Vegas recently opened with the exhibition “The Art of the Motorcycle” sponsored by BMW. ­Now, instead of just being a fun ride, BMW is self-importantly describing the motorcycle as “a cohesive evolution of technology and society, to be celebrated and revered…” iReuters reports that three American economists have won this year’s Nobel prize for economics for studying used car dealers…well, ah, sort of. Actually they studied how economic decisions are affected when one person has information that another doesn’t. The classic example of this is what Honest Joe knows about that creampuff on his lot that you don’t. Press releases from major corporations are usually so full of meaningless happy talk that they put you to sleep.  So, it came as a surprise when Honda announced it would leave the CART racing series after the 2002 season (because of major new engine requirements) by saying things like, «“…Honda cannot work in an environment where the sanctioning body has such little regard for its engine manufacturers.” They’re hacked off and don’t care who knows about. mFord and the Environmental Protection Agency are working together to develop a hybrid high-efficiency vehicle that uses hydraulic energy to store and provide energy for light trucks.  Given the blinding speed of both massive corporations and government bureaucracies, the first prototypes should be ready about the time we are all commuting by anti-gravity boots. ‹In an earlier post to this site, I expressed—or at least alluded to--some misgivings that I have regarding the appointment of Bob Lutz to the putative “car czar” position at General Motors.  My impressions are that although the General needs a kick in the pants so far as product goes, I am not so sure that a man of Lutz’s, er, maturity is the type of person that is really needed to take the vehicle manufacturer into the 21st century. Don’t get me wrong.  I am not an ageist.  I tell myself that every day when I pull my bones out of bed. But it simply seems to me that the bona fide Car Guy of the last quarter of the 20th century, which Lutz most certainly is, with his godfathering many of the vehicles that made, and continue to make, people sit up and pay attention to Chrysler, is, perhaps, not the Right Guy for the days ahead. It may be something of a Catch-22: I would submit that there aren’t as many teenagers today who care as much about cars as in previous generations.  The reasons are manifold, from the increased importance of things like computers (let’s face it: people can spend more on a solid setup for playing Doom on a PC than they can for a used car) to even a more-than-nascent environmental concern.  One bigger reason may be that there aren’t all that many cars that have been built during the past several years that have caught the attention and imagination of young people (with the notable exception, of course, of the slammers who have taken the Civic to places that undoubtedly mystify its Japanese designers). So is it that there is no interest because there are competing interests, or is it simply that there is no interest because there are no cars to be interested in? Either way, something needs to be done. Enter Lutz. Does he know who Weezer is?  [Not some old dude who makes wheezing noises when he gets winded by adjusting is La-Z-Boy.]  Does he know what Tony Hawk’s epic accomplishment was at the X-Games?  [No, Hawk is not a porno actor.]  To be sure, he can find out answers to those questions—if he knows that those questions are the sorts of things to be asked.  (And I should acknowledge at this point that some 22-year-old would crack me for using those two examples, indicating that they evince a lack of understanding of what really matters right now.) I don’t know the man.  I do know plenty of journalists who know and admire the man.  In fact, I know no journalists—at least those that cover the car industry—who don’t know and admire the man.  The guy almost sounds like a variant of Superman. My skepticism about Lutz was diminished when I read the memo that was “given” to Jerry Flint of Forbes “by well-placed friends within General Motors.”  Maybe a well-placed friend with the initials “R.L.”  It is Lutz’s 11-point manifesto about product development.  Anyone who has read any of the last few books of Tom Peters or even Gary Hamel’s Leading the Revolution might find the points to be not particularly earth shattering.  But for many people in this industry, it is a kick in the pants with a pair of Doc Martens—no, that would be Johnson & Murphy’s, perhaps. Lutz says, in my interpretation: Controversy within companies breeds more than heat: it can lead to better performance and shareholder value. Product planning in terms of portfolio creation has its uses—but if you want to hit a homerun, you’ve got to generate new ideas, not just reams of data. People are too concerned with delineating “consumer needs,” when they ought to be trying to create “turn-ons.” Vehicle Line Executives must be ruthless in their defense of cost targets. People should spend less time worrying about things like navigation systems and DVD players for cars and more on creating the cars that people actually desire. Designers are hired to design.  Let them. Complexity reduction can be taken too far; there needs to be a balance between content and value for the customer. Customer focus should be paramount. A goal shouldn’t be to achieve low build hours in Manufacturing if what is built is something no one wants to buy. A bulletproof car isn’t necessarily what’s needed if it is as exciting as a brick. And the final two lines simply must be quoted: “In our business, taking no risk is to accept the certainty of long-term failure.  (Even Aztek, in this sense, is noble!)” If Bob Lutz does nothing else at GM than to make it possible for people within that organization to act within the context of those points, then his tenure at the corporation will be an immeasurably important contribution. But I am still cautious.  Let me quote from the prepared text for a by presentation by Lutz on January 16, 2001, at the Automotive News World Congress: “As a sort of ‘elder statesman’ in this business, I feel almost an obligation to the industry [to] say that I’m concerned over a lot of the concept cars we’re seeing lately, including at this year’s [North American Auto] show.  Many of them are all-out weird.  It’s as if the designers are no longer designing for the public, but rather for each other, trying to be evermore off-the-wall than the competition. “It reminds me of the height of the abstract-art boom in the ‘60s and ‘70s, when you viewed one blue circle and one line on a canvas, and then had to read a two-page description of what the artist meant.  There are concepts over across the street that look like a whole family of angry kitchen appliances: demented toasters, furious bread machines, and vengeful trash compactors (or even compactees).  Then there are the assemblages of mere steel tubes, leather, and plastic—they look like exercise machines.” Is this guy the forward-looking freethinker that many people make him out to be or a variant of the crabby next-door neighbor who is always bitching about what “those damn kids” are up to? aAfter a 12-year absence Dodge will once again offer a police package – this time on its 2002 Intrepid.  Special perp-hauling features include: vinyl rear seat for quick clean up, door locks and windows that are inoperative from the rear seat and no dome light switch (note to parents of young children: only police departments can order this package). ìSpecial trivia question for those brave souls who actually clicked on the “View More” button: Which DCX vehicle was featured both in Adam 12 and in a song by the B-52s? (Hint: It ostensibly traveled faster than the speed of light.) 9Reuters reports that Nippon Telegraph and Telephone and Honda are developing a navigation system that includes a voice feature that will allow a driver to send and receive emails while driving. The system will be test launched next year. So, customers can soon enjoy spam on the road as well as at home. YIn what may be the most elaborate effort to anthropomorphize the automobile since Herbie the Love Bug, Toyota and Sony have designed a car dubbed the “pod” that aims to be more your buddy than your mode of transportation. The car is equipped with some features that exude puppy-dog warmth and others that smack of the passenger from hell. ‡Headlights are designed to look like eyes, side-mirrors like ears and lighted panels are programmed to show emotion. Blue light accompanies sad events like a flat tire, red glows when the driver is aggressive and orange-yellow means the “pod” is happy to see its owner. There is even a wagging-tail-like antenna. But the dark side of the pod is a feature that compares your driving skills with those of a pre-programmed expert’s and then offers comments on your performance. (Mario would have never taken the turn like that, you wimp.) So, now you can experience the joy of listening to a backseat driver even when you are alone. (After a hiatus that has lasted over half a century, GM is once again making cars in Japan.  Actually, partner Suzuki is making them, but they are badged as Chevys (except for the ones that are badged as Suzukis).  But, a few things have changed in Japan since the last time GM made cars there.  †Perhaps most notably was the rise of the most efficient and fiercely competitive vehicle making industry on the planet. Regardless, Japanese customers who have been subjected to decades of Hondas and Toyotas can now breath a sigh of relief and plop down their hard-earned yen for Chevrolets that are made in Japan. The comeback model is a compact hatchback called the Cruze. WThe Associated Press reports that Ford is discontinuing its Model E program that provided employees worldwide with free computers, printers and cheap Internet access.  Widely reported as a smart way to teach employees computer literacy skills when it began a year and a half ago, Model E in now an expendable luxury at the beleaguered maker. 'The president of Hyundai Motor Co. said the company is revising its 2001 U.S. sales forecast up from 320,000 to 335,000 units.  The next step is to make cars in the U.S.  Hyundai will announce where it will locate its U.S. plant some time in the first half of next year, according to Reuters.  5Seven sites in five states are under consideration. S Driven: Lexus 2002 ES 300 By Gary S. Vasilash, Editor-in-Chief There are two things that I don’t like about the 2002 Lexus ES 300: The width of the B-pillar combined with the width of the driver’s side headrest makes it difficult to look back over your shoulder to see if there is another car in the lane next to you when making a lane change. The gas cap requires some simple trick to undo—simple, that is, if one knows what it is; I quite nearly had to drive away from a service station with embarrassment due to what seemed like it would be a complete inability to release the cap (I managed to get it off—luck, not understanding, did the trick). As that is the list of complaints that I have about this vehicle, all I can say is that this is one of the best cars I’ve ever spent time driving. The driving experience is, indeed, precise, comfortable and safe.  There are such things as ABS and Electronic Brake Force Distribution; four-wheel independent suspension mounted to anti-vibration sub frames; Adaptive Variable Suspension (which allows the driver to adjust the shock absorber damping rate so that the car is setup in Sport, Comfort or Intermediate Modes); whiplash-lessening front seats.  The car is sufficiently powerful (all-aluminum 210-hp, 3.0-liter V6 engine mated to a five-speed electronic automatic transmission) and comparatively gas thrifty (rated at 21/29 mpg).  Because Lexus is now in the pursuit of passion (or so its advertising tells us, the styling is attractive and the vehicle appears to be much more substantial than it really is).  There are features like automatic rain sensors, interior wood trim, HID headlamps, and more, a list that is like a Henry James sentence in its length.  Yet the ES 300 is so remarkable two aspects that you don’t even need to drive it. That is, the leather seats are living-room comfortable and the Mark Levinson audio system (CD/cassette/receiver/seven speakers) is so good that one could be inclined just to sit in one’s car, listening to music. The base price for the all-new ES 300 is $32,080 (including delivery, handling, processing).  Which is the same price as the previous-generation ES 300.  How the clever Lexus people can do that is remarkable (sure, I imagine that there is something about the exchange rate involved—but I know that there is a lot about the Toyota Production System involved). I just thought of a third thing I don’t like about this well-built, fantastically featured, quiet car: I only got to test it; I didn’t get to keep it. øIt seems like every other day GM has a press release announcing another initiative having to do with fuel cells. The project du jour is an agreement with ChevronTexaco to research reformulating gasoline to optimize it for use with fuel cells. ØThe two corporate behemoths will try to come up with the best gasoline formulation for use in gasoline-fed fuel cells, which GM sees as a transition technology until a hydrogen infrastructure can be put in place. dDCX will use Bluetooth technology to allow customers to take a common, everyday household cell phone and make hands-free calls while in the car. The cell phone interacts with a built-in system in the car wirelessly and then plays through the cars speakers, overriding the radio. The system will start out as an aftermarket accessory in spring 2002. aFord is fielding a new diesel-powered research vehicle that will meet California’s ULEV II standards by spraying a solution of urea on the catalyst to reduce NOx emissions. The Newsmonger’s dictionary says that urea can be synthetically produced but also appears naturally in the, ahem, bodily fluids of mammals, so supply shouldn’t be a problem. óFord further explains, “To ensure that urea is always added to the vehicle, a process called co-fueling is employed. Co-fueling fills the diesel and urea tanks at the same time, so the operation is seamless for the customer.” No indication was given on whether a national urea infrastructure would have to be established. Note to Ford marketing department: even if this technology catches on, the Ford Urea would not be a wise choice for a vehicle name. Use it and you’re in trouble. PFord announced that it set a national record for fuel cell endurance with it’s P2000 fuel cell vehicle. The car traveled 1,391 miles in a 24-hour period, stopping only for fueling. The previous record was a mere 862 miles. Average on-track speed for the P2000 was 65 mph. It is powered by direct hydrogen and is emission-free. §Additional note to Ford marketing department: P2000 would be an appropriate name for a urea-catalyzed car. Indeed, a whole “P-“ series of vehicles could be justified. NFord has begun production of the electric-powered Th!ink Neighbor at the TruMack Assembly Detroit Chassis Plant. The zero emission car has a top speed of 25 mph and a range of 30 miles. It is designed for use at resorts, golf courses, etc. Production was tooled up in only 10 months. Plans call for up to 10,000 units a year. �Beyond Human (Resources) Inc., a small executive recruitment firm based in the Carpathian mountains region of Europe, today announced that it is close to perfecting the use of zombies as automotive executives. Frank Enstein, CEO of Beyond Human, says that the zombies his company has developed are “virtually indistinguishable” from current auto execs, “except they don’t play golf.” íEnstein says that Beyond Human is in the final testing phase of what he hopes will be a new and better generation of automotive leadership. But, problems remain. “We have not quite overcome the zombies’ insatiable desire to consume human flesh. But our tests with flesh-flavored tofu are yielding promising results.” Enstein says that by replacing current executives with zombies automotive companies can save millions, since the “formerly dead” do not require salaries, vacation or even sleep. “And they can be quickly trained to nod approvingly at whatever new initiative the CEO has just come up with, regardless of its merit.” Before focusing on zombies, Beyond Human did extensive testing on vampires and werewolves, but found they were not suited for the boardroom. “Vampires and werewolves are complicated creatures with their own agendas,” remarks Enstein, “Zombies, on the other hand, can be programmed to do anything—ribbon-cutting ceremonies, speeches to automotive conferences, you name it.” OBMW announced that Magna’s Steyr Fahrzeugtechnik unit in Austria will be tapped to build its upcoming 3-series platform based X3 SUV. Reuters reports that production is slated to begin in 2004 and that Magna has the capacity to build 300 units a day. Magna Steyr currently assembles DCX’s Grand Cherokee and M and G class SUVs. XRemember that tired mother-in-law joke about the new car and the cliff? That must be the general feeling among Detroit’s OEMs. The Big Three all broke sales records in October while bleeding money due to 0% financing. Come to think of it, maybe the joke about losing money on each unit but making it up on volume is more appropriate. YWhen my brother Bill was looking for a car to replace his BMW 328, Acura’s 3.2 TL Type-S never popped up on his radar screen. He looked at the Jaguar S-Type, another 3 Series, and many other cars, but never the Acura. Then one day, after much prodding from me, he stopped into his Acura dealer to convince himself that his decision to not consider this car was the right one. One test drive later, he bought the car. Did he do it because the car was perfect? Well, that depends upon your definition of the word. From the critic’s chair, it would be very easy to pick nits: the column stalks date back to late-‘80s Hondas, the navigation system eliminates the manual override for the HVAC unit and makes it just another touch-screen function, the power brakes aren’t as firm or direct as you would expect from a car with sporting overtones, and the steering wheel could be a bit thicker. That’s about it. Granted, the 2002 model TL is jarringly similar to it immediate predecessor, but Acura made sure it lost none of the earlier model’s intimacy. Four adults can ride in comfort, listening to the Bose audio system, and appreciating the quiet – not silence – of the cabin without having to surrender their claim on youth, or suffering the ride degradation normally found with a ‘sport tuned’ suspension. The TL won’t be the most memorable vehicle you’ll ever own, but it will be well-equipped. For $33,710 you get a 260-hp V6 that easily returns 30 mpg on the highway, Xenon high intensity discharge headlamps, memory seats and mirrors, side airbags, vehicle stability control, a five-speed automatic transmission, heated outside mirrors, an in-dash navigation system, and plenty more – including Honda quality and reliability. This compares very well with some of the TL’s more famous – and more expensive – European competitors. Need proof? Just ask my brother Bill. YWhen my brother Bill was looking for a car to replace his BMW 328, Acura’s 3.2 TL Type-S never popped up on his radar screen. He looked at the Jaguar S-Type, another 3 Series, and many other cars, but never the Acura. Then one day, after much prodding from me, he stopped into his Acura dealer to convince himself that his decision to not consider this car was the right one. One test drive later, he bought the car. Did he do it because the car was perfect? Well, that depends upon your definition of the word. From the critic’s chair, it would be very easy to pick nits: the column stalks date back to late-‘80s Hondas, the navigation system eliminates the manual override for the HVAC unit and makes it just another touch-screen function, the power brakes aren’t as firm or direct as you would expect from a car with sporting overtones, and the steering wheel could be a bit thicker. That’s about it. Granted, the 2002 model TL is jarringly similar to it immediate predecessor, but Acura made sure it lost none of the earlier model’s intimacy. Four adults can ride in comfort, listening to the Bose audio system, and appreciating the quiet – not silence – of the cabin without having to surrender their claim on youth, or suffering the ride degradation normally found with a ‘sport tuned’ suspension. The TL won’t be the most memorable vehicle you’ll ever own, but it will be well-equipped. For $33,710 you get a 260-hp V6 that easily returns 30 mpg on the highway, Xenon high intensity discharge headlamps, memory seats and mirrors, side airbags, vehicle stability control, a five-speed automatic transmission, heated outside mirrors, an in-dash navigation system, and plenty more – including Honda quality and reliability. This compares very well with some of the TL’s more famous – and more expensive – European competitors. Need proof? Just ask my brother Bill. ¼ Adieu, Jacques A friend of mine went from auto journalism to PR at one of the auto companies.  Shortly after he’d started there, he and I were talking about the industry.  Perhaps it was because he was still fresh on the job, but he noted of the car business, “None of this is hard.  It’s really just about finding out what the customers want and then giving it to them—time after time.” He’s right about the second part.  Those companies in any industry that provide products that people want are the companies that are known as the “success stories.”  But he was wrong about the first part, because if it were so easy, then the non-successful companies would be the exceptions, not the rules. I suspect, however, that the level of difficulty of pulling off the trick of providing desirable products is a direct correlation between the size of the bureaucracy that exists in the organization: The bigger and more entrenched the bureaucracy, the tougher it is to (1) find out what people want and (2) deliver. I thought about this in the context of the so-called “retirement” of Jacques Nasser from Ford.  The public face on the separation says that Nasser was let go because of (1) the Firestone debacle and (2) the diminution of quality at a company that once proclaimed that “Quality Is Job One.” As for the Firestone mess, I would like to know who really thinks that an automotive CEO is an expert on tires—or any other component of a vehicle, for that matter.  This is not to say that there weren’t some absolutely serious problems—people died, after all—related to the situation, but it is to ask whether or not Nasser was to “blame” for that or whether that is just a convenient excuse: a fall guy needed to be found.  I think that what could be construed as his biggest failing in the mess was listening to what is clearly some bad PR advice: the spin just didn’t get the job done. As for the Quality problem, there is more direct responsibility there.  I’ve heard on some good authority that because of some “downsizing” pressures, many Ford engineers were (and presumably still are) tasked with too many things.  While we all know people who are only working at a fractional percent of full effort, the people who are good tend to be working upwards of 80-90%.  It is beyond unrealistic to think that those people can take on another 50% workload and be expected to provide 100% quality in their work. But let’s face it: there are a lot of people in any organization who are responsible for quality.  But in corporate America, when things go wrong, heads must roll.  Sometimes those heads are at the top. What I think may be Nasser’s undoing was not that he was trying to turn Ford into a “consumer products company”—as if cars are anything but consumer products: after all, we’re not talking about transfer lines or industrial robots or even road graders here—or that he tried to push things forward on the Internet (I’d like someone to name an executive who wasn’t pre-dot.com bomb). No, I think his undoing was in the showroom.  Yes, the F150 still sells.  Yes, the Explorer’s sales have remained robust.  But what else?  Where are the exciting products?  Where are the things that people really want with a blue oval? If you’re running a car company and you don’t have cars, then that’s what really makes all the difference. My friend was right: It is easy. ¼ Adieu, Jacques A friend of mine went from auto journalism to PR at one of the auto companies.  Shortly after he’d started there, he and I were talking about the industry.  Perhaps it was because he was still fresh on the job, but he noted of the car business, “None of this is hard.  It’s really just about finding out what the customers want and then giving it to them—time after time.” He’s right about the second part.  Those companies in any industry that provide products that people want are the companies that are known as the “success stories.”  But he was wrong about the first part, because if it were so easy, then the non-successful companies would be the exceptions, not the rules. I suspect, however, that the level of difficulty of pulling off the trick of providing desirable products is a direct correlation between the size of the bureaucracy that exists in the organization: The bigger and more entrenched the bureaucracy, the tougher it is to (1) find out what people want and (2) deliver. I thought about this in the context of the so-called “retirement” of Jacques Nasser from Ford.  The public face on the separation says that Nasser was let go because of (1) the Firestone debacle and (2) the diminution of quality at a company that once proclaimed that “Quality Is Job One.” As for the Firestone mess, I would like to know who really thinks that an automotive CEO is an expert on tires—or any other component of a vehicle, for that matter.  This is not to say that there weren’t some absolutely serious problems—people died, after all—related to the situation, but it is to ask whether or not Nasser was to “blame” for that or whether that is just a convenient excuse: a fall guy needed to be found.  I think that what could be construed as his biggest failing in the mess was listening to what is clearly some bad PR advice: the spin just didn’t get the job done. As for the Quality problem, there is more direct responsibility there.  I’ve heard on some good authority that because of some “downsizing” pressures, many Ford engineers were (and presumably still are) tasked with too many things.  While we all know people who are only working at a fractional percent of full effort, the people who are good tend to be working upwards of 80-90%.  It is beyond unrealistic to think that those people can take on another 50% workload and be expected to provide 100% quality in their work. But let’s face it: there are a lot of people in any organization who are responsible for quality.  But in corporate America, when things go wrong, heads must roll.  Sometimes those heads are at the top. What I think may be Nasser’s undoing was not that he was trying to turn Ford into a “consumer products company”—as if cars are anything but consumer products: after all, we’re not talking about transfer lines or industrial robots or even road graders here—or that he tried to push things forward on the Internet (I’d like someone to name an executive who wasn’t pre-dot.com bomb). No, I think his undoing was in the showroom.  Yes, the F150 still sells.  Yes, the Explorer’s sales have remained robust.  But what else?  Where are the exciting products?  Where are the things that people really want with a blue oval? If you’re running a car company and you don’t have cars, then that’s what really makes all the difference. My friend was right: It is easy. nIsuzu has announced that is will be replacing its flagship Trooper model with something called the Ascender. The company seems to be aiming at a new upscale clientele by scuttling a likeably simple name with lots of industry recognition for a silly, pretentious one. The Newsmonger prefers his vehicles to remain stubbornly earthbound, thank you very much. +Cadillac has begun installing XM Satellite radio systems as options on 2002 Sevilles and DeVilles.  These systems will allow those who pony up ten bucks a month to, that’s right, listen to the radio. The service will only be worth it if drive-time DJs are denied access to the satellite stations.  gHonda and Hoover’s are hawking Accords via an on-line “advergame” (whose “viral aspect is an added plus” says the release ) that is supposed to make fun of the overuse of jargon in the workplace. Players select stereotypical jargon-spouting characters and choose the least jargon-ridden response to a question in order to drive off in a virtual Accord. ÓChoosing the jargon-laden response consigns the character to a somewhat less comfortable ride like a skateboard. One can only assume that the marketing guy who coined “advergame” is hanging ten right now. ^ An e-mail from the folks at MG Rover had me scratching my head, and wondering whether some of the people in the U.K. have too much time on their hands. It seems that a person – yes, just one – has been able to get the British advertising standards authorities to force the company to pull its ‘Full Fat, High Caffeine and Maximum Strength’ ads promoting the new MG ZR, MG ZS and MG ZT. What was the problem with the ads, you might ask? To quote the MG Rover release: “The complainant felt that the abstract background, bold headline and ‘Life’s too short not to’ strap line conveyed ‘a car traveling fast, [and] objected that they placed an undue emphasis on speed and encouraged irresponsible driving.’” As if anyone could get away with that in the U.K.! Each day more areas in England are beset by Gatsos, radar-equipped cameras that snap photos of speeders and send scofflaws a healthy ticket. In-city speed limits have been reduced in the name of safety, but – suspiciously — not before the speed cameras appeared. Apparently increased revenues and safety are interchangeable concepts to some. Rather than duck for cover, MG Rover has taken a stand; a revelation in these politically correct days in which we live. To quote from its press release once more: “We make no apology for the fact that the new MG range is faithful to the MG tradition of producing genuine sports cars….The MG brand is dynamic, exciting and for individuals who like to ‘live life to the full’. The advertising campaign does not talk about speed; it is designed to appeal to people who like the freedom to make their own choices and not be dictated to by the current obsession with denying oneself the pleasures of life.” (Emphasis added.) Hear! Hear! All too often the answer, divined through intensive legal and PR consultation, is to fund programs aimed at reducing the offending behavior. This non-committal mea culpa is said to serve the needs of the c