By Brendan Moore

06.23.2007

Delphi announced yesterday that it has reached a tentative agreement with both the UAW and General Motors that allows the company to substantially reduce wages and escape from bankruptcy proceedings initiated in 2005.

The deal must still be ratified by member vote by the UAW, and the deal must also be approved by the federal bankruptcy court handling the case, but it is expected that both things will happen now that agreement has been reached with the UAW and GM. The reason GM is involved is because it is Delphi’s largest customer and if Delphi goes down, it would have a very negative effect on GM’s operations. GM reportedly made a large contribution to the agreement through promised one-time payouts.

GM starts its own negotiations with the UAW next month, which promise to be extremely contentious.

Delphi employees currently make as much as an average $27 an hour. Delphi wanted to reduce that hourly wage to around $10 an hour, which is where it stated wages needed to be in order for the company to be profitable going forward. Sources say the average wage provided for in the new agreement will go up to $18.50 an hour.

The new agreement is important in that it will have profound effects across the auto industry in Detroit. Any UAW concessions will ripple across the rest of the companies in the auto industry that employ UAW workers.

Here is the official press release from Delphi:

TROY, MI, Jun 22, 2007: “Delphi Corp. announced today it reached a tentative agreement and signed a Memorandum of Understanding with the UAW and General Motors covering site plans, workforce transition as well as other comprehensive transformational issues. The agreement is subject to union ratification and approval by the U.S. Bankruptcy Court. “If ratified, we believe this agreement will be a significant milestone in our transformation and a major step towards emergence,” said John Sheehan, Delphi’s chief restructuring officer. “The Memorandum is a testament to the dedication and hard work of the UAW, Delphi and General Motors teams.” Delphi will not provide commentary on the details of the Memorandum at the current time.”

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By Bruce McCulloch

06.21.2007

Sex appeal, speed, power, entertainment and exclusivity, were once common traits of the Porsche 911. In recent years however; the 911 has lost much of its exclusivity and in the eyes of some, its appeal. With today’s market requiring the shuffling of almost everything down the production lines, Porsche’s iconic rear-engine sports car has more or less become a ‘mass-produced’ automobile. Now, there’s nothing wrong with that and I’m certainly not insinuating they are bad cars, but truth be told the 911 is no longer the ‘super-special’ car it once was (even if there still is no other car like it).

If you want an all-exclusive 911 these days, you’ll have to opt for an enticing previous generation ‘996 GT2’ or wait for the upcoming ‘997 GT2’. That being said, exclusivity is rather expensive for both of those vehicles – setting your wallet back a breathtaking $150K (USD).

Anyway, as great as today’s 911’s are, there once was a vehicle which Porsche offered which was quite unlike anything else they sold at the time. For those with the means to purchase a 911 throughout the 1980’s, they had the choice of ordering something called the ‘flat nose’ (or in German, the ‘flachbau’ which contained no hyphen in the English translation).

Tidbit fact: At times referred to as the ‘slant-nose’ in many places, including North America.

The idea for the project had been surfaced in 1980 when a man by the name of Rolf Sprenger (an employee working in Porsche’s Zuffenhausen department), created a specially designed coachwork program which he then called “Porsche Exclusiv Programme”. This program allowed each Porsche customer to completely customize their rear-engine wonder and as a result, nearly all of the 911’s which came out of Sprenger’s department were individually crafted for their owner. Rolf Sprenger was the proud father of each one of these Porsches.

In 1981 the first ‘930 Turbo SE flat nose’ left the production line. Whereas only one unit was produced in 1981, sales dramatically increased in the years that followed (averaging 30 to 40 units per year). In 1986 (due to continued interest), Porsche finally decided to offer the flachbau as an official option on the order form (under the codename of ‘M506’). Not surprisingly, this was also the year in which the most flat noses were sold – that being a total of 56 units.

Without a doubt, it was clear the flat nose was a higher-power car for a ‘higher power’ customer and with a complete price tag that asked a staggering amount of £34,000 greater (in 1980’s pound sterling!) than that of a regular 911 Turbo, it continued to stay an all-exclusive 911.

As the flat nose aimed at offering an overall package more than a few notches above the standard model, Sprenger made sure the flat nose was not only more exclusive, but differing in terms of exterior design With the premise of an exterior design meant to replicate Porsche’s own 1976 ‘935’ racer, the flat nose started by taking the 911 design to a further level by replacing the rather quirky frog-eyed front bumper for exactly what it’s name suggested: a front-end boasting a hard-edged, flat bumper and bonnet design. Further additions such as new air vents behind the headlamps (which were functional in allowing air pressure to escape from the wheel wells), a new spoiler, and a new front bumper with integrated driving lamps, the flat nose certainly paid proper homage to its racing brother. Furthermore, this special edition 911 included a new side skirt design. With the addition of new rear-wheel arch air intakes, this German supercar was looking just as exotic as any other from Italy. I personally believe Sprenger’s work is easily amongst the finest from the iconic Stuttgart firm.

Tidbit fact: The earliest of generations were actually produced with built-in headlamps, but soon enough Sprenger discarded the built-in head lamps for the pop-up versions we are now familiar with.

Unfortunately, the flachbau didn’t offer much of an interior change over the standard Turbo, which is somewhat of a disappointment giving the radical change in the exterior design. In fact, the only thing that made this vehicle’s interior anymore special than the standard model was the larger assortment of optional colours one could choose from. Technically, the SE offered an electrical sunroof, air-conditioning and driving lights standard (all of which were options on the regular Turbo).

Most would have assumed that with a price tag far greater than the standard 911, this special incarnation would have been a completely new and updated car, but truth be told, the 930 SE Flat Nose was essentially a standard Turbo in full-dress. That’s not to say Sprenger didn’t throw in a few advantages for that extra premium. Such extras included cross-drilled brake discs with four pistons and an engine boasting an extra 30bhp – courtesy of a larger turbocharger with increased boost pressure and a revised exhaust system.

According to various test drives and what-not, this fantastic car didn’t feel a whole lot different from the standard Turbo and even with the extra 30bhp, most auto journalists complained the extra ponies could not be felt. Of course, it must be noted that the standard Turbo was considered by many to be the finest sports car in the world at the time, so its not as if the flat nose owners were in any way shorted in the deal.

In its final year (1987), the 930 SE sold 37 units, bringing the total sales to only 237 units over its 7-year life span. While it was never meant to be a big sales winner, this car was intended to be the ‘ultimate Porsche enthusiast model’ – the car for the hardcore 911 fanatic who appreciated and truly understood Porsche motor sport history.

The flat-nose is one of those vehicles which has attained truly mystical proportions in my sports car consciousness and general sports car affection, and I am not unique in this regard – it resonates just as strongly with many other sports car enthusiasts.

Specifications of the 1988 Porsche 930 Turbo SE Flat Nose:

SOHC, 3.3 litre Boxer Six (7.0:1 Compression)
Turbocharged (11 PSI)
330bhp @ 5,500 rpm
318lb-ft of torque @ 4,000 rpm
RWD, 4-Speed Manual Gearbox
MSRP (1988): £93,294

If you’re looking for a deal, this could be it.

By Chris Haak

06.20.2007

I don’t live anywhere near Detroit (about 550 miles away), but I’ve heard the same stories all auto industry followers have over the past year or two of Chrysler overproducing vehicles to keep the factories running, even in the face of falling demand for their products (particularly the larger, more fuel-thirsty ones). Since they were unable to convince dealers, who still had a lot of 2006 vehicles on their lots, to take many of them, and still had a huge inventory problem, many of them were being parked in overflow parking lots at the airport in Detroit. There were acres upon acres of new 2007 Jeep Commanders, Dodge Durangos, and more.

Chrysler finally wised up a few months ago and discontinued this practice, after having at one time or another over 100,000 unsold, unordered new vehicles in the “sales bank.” Chrysler watchers (or Iacocca autobiography readers) may recall that this very thing – the sales bank – nearly bankrupted the company in the late 70s/early 80s. This time, all it did was cause a multi-billion dollar loss, the head sales & marketing guy (Joe Eberhardt) to lose his job, and lead to much of the pressure that lead Daimler to unload the Chrysler part of its name.

Meanwhile, most of the damage was done. The sales bank vehicles were already built, and there were billions of dollars in finished goods inventory that nobody wanted, sitting in the Detroit weather, with birds crapping on them and the sun, rain, wind, and snow depreciating them. Last I heard, most of them had been accepted by dealers. But, what about those previously mentioned 2006 models that a lot dealers still had? At this point, with many 2008 models hitting dealers, who wants to buy a “new” 2006 that was built almost two years ago, when 2007s are becoming heavily discounted?

Chrysler’s recent solution to this was to basically allow dealers to buy the leftovers themselves. You see, dealers who held 2006s and used them as loaners or test drivers for as little as one day could be considered used cars, transferred to the used car lot, and counted as a new car sale. So, aside from helping to clear out excess [old] new car inventory, this policy change also bumped up Chrysler’s May 2007 sales results. Under the program, a new 2006 model-year Dodge Ram pickup truck with a sticker price of $30,000 as a new vehicle could have its price slashed by as much as $11,500 next door on the used-car lot after being used (or at least labeled) as a demo for one day. Dealership personnel like this – a lot. Previously, the rule was that a vehicle had to be a loaner for 90 days before it could be considered a used car. What’s not clear is if the dealer is eating any percentage of the loss in value, but the assumption is that Chrysler is taking the pain when a vehicle priced at $30,000 suddenly becomes a $18,500 vehicle overnight.

But, regardless of where the pain ends up, if you’re in the market for a new Chrysler vehicle, particularly a vehicle where there might be new 2006 models of that vehicle still out there, it might be a really good time to go car shopping. Since these vehicles in question would still be legally new vehicles even after they went into demo service for one day, they should have the full factory warranty. According to the company, there were 9,800 2006 Chrysler Group vehicles in dealer inventory as of May 31, 2007.

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Change isn’t always good…

With a brand like Jeep, a brand that has many enthusiasts very wary of change, is a change towards the urban gas-saver or the chromed toy better than one that takes us further into the depths of the forest? These are questions that will come from the same group that held their breath when they found out their beloved inline 6cyl 4-liter engine was to be replaced. Why? Because the “Bullet Proof” reputation the 4-liter developed was emblematic of the whole Jeep line and migration towards anything that might sully that reputation is going to risk stirring up some negative feedback from the Jeep faithful.

Knowing and understanding, that, for many owners, owning a Jeep is a lifestyle as much a means of transportation makes me feel for the Jeep Nation out there. I almost want to say they are being had, and in a way they are. They now have to share their little club with groups that don’t necessarily mesh well at the local mud bog. Jeep for years had done well from a sales perspective selling the Cherokee and Grand Cherokee, two versatile vehicles that could be fluent in the city as well as the trails, but there was a balance point, they could perform both terrains well and didn’t look out of place in either situation.

I suppose I am amongst the breed that likes to see a Jeep with a little mud on the tires, a few tree scrapes, and a couple of (at least figurative) war stories. But rather, the Jeep division is branching out to accommodate those that take to 20″ chrome wheels, low profile tires, and anything BUT a little dirt. Sure a Jeep Wrangler can still be had, the doors can be taken off (now up to 4,) and the top can be dropped. And while the Jeep division may be more profitable from a bean counter’s stand point with these latest models, I’m not a bean counter, I am simply an enthusiast that likes to think a vehicle has an individual purpose and a niche brand is just that, a niche and a brand image to be jealously guarded from both external competitors and the inexorable internal pressures to dilute it.

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By Brendan Moore

06.18.2007

Here’s something a little different: Gibbs Technologies of the U.K. says it will start selling its amphibious vehicles to consumers in the U.S. in 2009. I’ve been following the development of these vehicles for a couple of years now, and it appears as if the company finally intends to sell their cars to the retail public.

Gibbs developed the Aquada in 1997, and has been doing development testing ever since. The company now has 10 models, spread across consumer, commercial and military categories, including the Aquada, and is now poised to enter the market via a yet-unknown distribution network. A company spokesman said the response so far in customer clinics has been extremely strong. The Aquada, the consumer model, will travel in excess of 110 mph on land and 33 mph on water, and cost approximately $85,000 USD.

1967 Amphicar

The only other amphibious vehicle sold to the U.S. public was the odd-looking Amphicar, made in Berlin, Germany in the 1960’s. Few cars were sold in the U.S., and are somewhat prized by collectors today, even though it’s an awful (and slow!) car and a worse (even slower!) boat. I have been in an Amphicar on the road and the water, and it is a somewhat unnerving experience in both environments. You’re in constant peril of being swamped while in the water, and in danger of being run over by any other car while you’re on the road. I will say, however, that the two Amphicar owners I’ve met were inordinately cheerful, nice guys and extremely proud of their unusual vehicles.

Humdinga – commercial model

By all accounts, the products by Gibbs are cutting-edge, modern, attractive and quite fast. Which, BTW, would make them the polar opposites of the Amphicar. Gibbs states that they not only intend to start sales in 2009, but they want to set up R&D facilities and manufacturing plants in the United States for the amphibious vehicles as soon as possible.

I, for one, cannot wait for a combined land/sea test drive.

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By Brendan Moore

06.18.2007

The Wall Street Journal is reporting today that Cerberus has had recent talks with Ford about a possible acquisition of Jaguar and Land Rover. Those talks were inconclusive and are over, the report states. Neither Ford not Cerberus issued any comment on the report.

It is expected that Ford is bundling Jaguar with Land Rover to any potential buyers as an enticement since Jaguar is not an overly attractive acquisition by itself. Cerberus, the recent acquirer of Chrysler, would have had a lot of brands and a lot of platforms to work with if it were to own Chrysler, Jaguar and Land Rover. It is possible that that they have chosen to stick to the Herculean task at hand; that is, Chrysler’s turnaround.

Ford is expected to gain around $1.5 billion USD in a sale of Jaguar and Land Rover, regardless of whomever buys both brands, which isn’t a lot considering what they’re selling, but Ford needs all the cash it can get as it tries to get their business back on solid ground. In a related matter, there has been no news about the potential sale of Volvo since the recent denials by BMW that it was interested in purchasing Volvo and Ford’s terse statement subsequently that Volvo was not for sale. Still, it is believed that Ford is also open to offers for Volvo, but is not actively shopping Volvo like Jaguar and Land Rover.

Unidentified sources at Ford were quoted as saying that the sale of Jaguar and Land Rover would probably take at least a month and probably is months away, according to the article in the Wall Street Journal.

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Pagani Zonda F

And, a long trip or urban crawling is the same in terms of sound ambiance, because being introduced into today’s supercars is excellent sound insulation and efficient yet restrictive exhausts so that these cars can actually be used in a proper capacity.

Now the Pagani Zonda is merely one example, and honestly, such usability is something that doesn’t apply to all of the supercars being produced today, but most definitely to a majority of them.

The old ‘show and display’ insurance plan (which restricts mileage to low numbers), purposely made for vehicles like the Pagani in the past is now often being thrown away as owners want full and unrestricted use of their vehicles. One practical result of the new everyday driveability and the owner’s desire to to exploit it is that these some of these wonder cars are showing up recently on exotic used car lots with upwards of 60,000 miles! Maybe there’s hope for me yet in terms of buying an exotic car someday, even if I’m still making a not-so-exotic income.

What makes this all even more impressive is the fact that despite these vehicles are now able to act like Clark Kent when needed, they have all most certainly simultaneously increased their level of superpowers. Admittedly and perhaps obviously, supercars are still a far cry from being as useable as a Toyota Camry; but the fact is these cars are no longer pieces intended for track days or the show stand.

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