RIP Evel Knievel
RIP Roger Smith
Motorcycle Daredevil Evel Knievel died today at age 69. Coincidentally, former GM CEO Roger Smith, the Roger of Michael Moore's Roger & Me, also died. Roger was 82.
I don't have much to say about Roger Smith, but I think I'll miss Evel. Evel was certainly one-of-a-kind. Maybe not entirely, check out all the bike ramp videos on youtube.com. At least one of these kids will make it into adulthood.
Friday, November 30, 2007
Wall Street Lawyers Laid Off Due to Mortgage Mess
4 months Severence for 1st Year Associates
According to Legalweek.com, A 350 lawyer Wall Street firm is laying off up to 50 associates due to a slow down in the mortgage security market. The portion of the laid off associates who are 1st year associates will be offered 4-months severence pay.
This is only 4 months more severence pay than laid off UAW Legal Services lawyers make during slowdowns in the auto industry.
4 months Severence for 1st Year Associates
According to Legalweek.com, A 350 lawyer Wall Street firm is laying off up to 50 associates due to a slow down in the mortgage security market. The portion of the laid off associates who are 1st year associates will be offered 4-months severence pay.
This is only 4 months more severence pay than laid off UAW Legal Services lawyers make during slowdowns in the auto industry.
Chrysler to Return to Profitability by 2010?
. . . Yeah, right . . . whatever . . .
Thetruthaboutcars.com is reporting that Chrysler LLC's VP of North American Sales, Steven Landry, stated in an informal conference that Chrysler planned to return to profitability in about two years. As a private company under Cerberus, Chrysler no longer has to report earnings publicly, so this may be the best guidance we get as to Chrysler's health. Even so, folks have a right to be sceptical. Mr. Landry suggested that Chrysler would lose about a billion dollars this year, would break even next year, and would be profitable the year after that.
The only way I can see that happening is if Cerberus-owned rental car companies start buying a whole lot more Chrysler vehicles. I definitely can't imagine the American public doing so. As far as passenger cars go, only two relatively low-volume models are set to be introduced during that time, the Dodge Challenger and Dodge Journey. As far as trucks are concerned, a new Ram pick-up will be introduced within the next year, but it will be going against relatively new trucks by GM and Toyota as well as a redesigned Ford F-Series truck. The F-Series is Ford's do or die model, so Ford isn't just going to roll over and let Chrysler take market share. The Chinese-made compact has apparently not even been fully designed yet, so it's not in the two-year time frame. As far as upgrades to new models are concerned, the Phoenix V-6 engines will at best be available in limited quantities in 2010, and plant to produce efficient dual clutch automatic transmission is still being built.
If I were running Chrysler, I'd try to initiate talks with Hyundai for some sort of combination. Despite greatly improved cars, Hyundai has not had correspondingly increased market share. The problem may lie in a dealership network that is not prepared to satisfy a larger number of customers either at the sales or service level. Hyundai's affilliate, Kia, has the same problem, but to a greater degree. Hyundai's product line complements Chrysler's. Hyundai is competitive in small cars where Chrysler has no presence. Hyundai has a fairly fresh lineup of crossover vehicles. Chrysler doesn't. Even though it uses the same 4-cylinder engine as the Chrysler Sebring, the Hyundai Sonata is a clearly superior car now, and it's set for a well-received facelift early 2008. Chrysler does not have the presence in trucks and off-road vehicles that Chrysler does, and Chrysler has a superior dealer network.
An alternative for Chrysler would be work a deal with Nissan/Renault. Renault would like to sell cars in the United States. Nissan and Renault have competitive small cars. The Atlima platform is very competitive. Although Nissan trucks have their fans, sales have been disappointing, and the same goes for sales of the Nissan Quest minivan. Nissan has top-notch engine technology on the shelf and ready to go, and as such, by combining with Nissan, Chrysler can kill the Phoenix engine project and not miss anything. The downside to a Renault/Nissan deal is that CEO Carlos Ghosn may not be interested. He's interested in a deal with a US automaker, but Ford or GM could make better partners. Both have stronger model line-ups internationally than Chrysler.
To save what's left of Chrysler in its current form, Chryslerberus needs to act quickly. Even more questionable than the notion that the company will be in the black by 2010 is the proposition that it will only lose a billion dollars in 2008. With high fuel prices expected to continue, things don't look good for Chrysler's current gas-guzzling line-up. Cerberus has already been hit hard by the subprime mortgage crisis, and since it doesn't have a lot of capital tied up in Chrysler, I don't see it having the desire to tie up a lot of other capital to cover ongoing operational losses.
. . . Yeah, right . . . whatever . . .
Thetruthaboutcars.com is reporting that Chrysler LLC's VP of North American Sales, Steven Landry, stated in an informal conference that Chrysler planned to return to profitability in about two years. As a private company under Cerberus, Chrysler no longer has to report earnings publicly, so this may be the best guidance we get as to Chrysler's health. Even so, folks have a right to be sceptical. Mr. Landry suggested that Chrysler would lose about a billion dollars this year, would break even next year, and would be profitable the year after that.
The only way I can see that happening is if Cerberus-owned rental car companies start buying a whole lot more Chrysler vehicles. I definitely can't imagine the American public doing so. As far as passenger cars go, only two relatively low-volume models are set to be introduced during that time, the Dodge Challenger and Dodge Journey. As far as trucks are concerned, a new Ram pick-up will be introduced within the next year, but it will be going against relatively new trucks by GM and Toyota as well as a redesigned Ford F-Series truck. The F-Series is Ford's do or die model, so Ford isn't just going to roll over and let Chrysler take market share. The Chinese-made compact has apparently not even been fully designed yet, so it's not in the two-year time frame. As far as upgrades to new models are concerned, the Phoenix V-6 engines will at best be available in limited quantities in 2010, and plant to produce efficient dual clutch automatic transmission is still being built.
If I were running Chrysler, I'd try to initiate talks with Hyundai for some sort of combination. Despite greatly improved cars, Hyundai has not had correspondingly increased market share. The problem may lie in a dealership network that is not prepared to satisfy a larger number of customers either at the sales or service level. Hyundai's affilliate, Kia, has the same problem, but to a greater degree. Hyundai's product line complements Chrysler's. Hyundai is competitive in small cars where Chrysler has no presence. Hyundai has a fairly fresh lineup of crossover vehicles. Chrysler doesn't. Even though it uses the same 4-cylinder engine as the Chrysler Sebring, the Hyundai Sonata is a clearly superior car now, and it's set for a well-received facelift early 2008. Chrysler does not have the presence in trucks and off-road vehicles that Chrysler does, and Chrysler has a superior dealer network.
An alternative for Chrysler would be work a deal with Nissan/Renault. Renault would like to sell cars in the United States. Nissan and Renault have competitive small cars. The Atlima platform is very competitive. Although Nissan trucks have their fans, sales have been disappointing, and the same goes for sales of the Nissan Quest minivan. Nissan has top-notch engine technology on the shelf and ready to go, and as such, by combining with Nissan, Chrysler can kill the Phoenix engine project and not miss anything. The downside to a Renault/Nissan deal is that CEO Carlos Ghosn may not be interested. He's interested in a deal with a US automaker, but Ford or GM could make better partners. Both have stronger model line-ups internationally than Chrysler.
To save what's left of Chrysler in its current form, Chryslerberus needs to act quickly. Even more questionable than the notion that the company will be in the black by 2010 is the proposition that it will only lose a billion dollars in 2008. With high fuel prices expected to continue, things don't look good for Chrysler's current gas-guzzling line-up. Cerberus has already been hit hard by the subprime mortgage crisis, and since it doesn't have a lot of capital tied up in Chrysler, I don't see it having the desire to tie up a lot of other capital to cover ongoing operational losses.
Monday, November 26, 2007
Sibling Rivalry - Round 1
2008 Chevrolet Malibu LT vs. 2008 Chevrolet Impala LT 3.9
The Chevrolet Impala is General Motors' best selling passenger car in the United States, with about 270,000 sold this year. That's about double what the outgoing Chevrolet Malibu sold.
The Impala has a lot going for it. It's roomy, comfortable, quiet, has a huge trunk, and it returns better than average fuel economy for its size, especially on the highway. These attributes make it a fleet and company car darling. At the insurance company where my sister works, the field adjusters screamed bloody murder when their Impalas were replaced by Dodge Stratuses (Stratii?), and I can't blame them.
On the other hand, the Impala's little brother, the Malibu, was known as a "get 'r done" mass transportation appliance, at least until this fall. That's when the 2008 redesigned Malibu arrived to great acclaim. The new Malibu actually has a longer wheelbase than the Impala, and comparably equipped, they weigh about the same. When equipped with V-6 engines at the LT level, the Malibu has slightly higher horsepower, but gets slightly lower fuel economy.
Which is the better deal? Take a look at Michael Karesh's excellent comparison site, truedelta.com. I ran a comparison that suggests that the $1500 rebate offered on the Impala gives the old workhorse a slight edge, but the two are close enough that intangibles could, and probably should control any buyer's decision.
2008 Chevrolet Malibu LT vs. 2008 Chevrolet Impala LT 3.9
The Chevrolet Impala is General Motors' best selling passenger car in the United States, with about 270,000 sold this year. That's about double what the outgoing Chevrolet Malibu sold.
The Impala has a lot going for it. It's roomy, comfortable, quiet, has a huge trunk, and it returns better than average fuel economy for its size, especially on the highway. These attributes make it a fleet and company car darling. At the insurance company where my sister works, the field adjusters screamed bloody murder when their Impalas were replaced by Dodge Stratuses (Stratii?), and I can't blame them.
On the other hand, the Impala's little brother, the Malibu, was known as a "get 'r done" mass transportation appliance, at least until this fall. That's when the 2008 redesigned Malibu arrived to great acclaim. The new Malibu actually has a longer wheelbase than the Impala, and comparably equipped, they weigh about the same. When equipped with V-6 engines at the LT level, the Malibu has slightly higher horsepower, but gets slightly lower fuel economy.
Which is the better deal? Take a look at Michael Karesh's excellent comparison site, truedelta.com. I ran a comparison that suggests that the $1500 rebate offered on the Impala gives the old workhorse a slight edge, but the two are close enough that intangibles could, and probably should control any buyer's decision.
Wednesday, November 21, 2007
Lessons in Doing the Impossible
Meet Bouncin' Dan, the Paddleball Man. I'm sure that people told him; "No Dan, you'll never amount to anything, bouncing that paddleball all day."
To which, he replied; "You'll see. I'm going to practice, practice, practice, until I'm the best paddleball bouncer in the world. Thousands of people will watch me and be amazed." Lo, as it turns out, Dan was right. Now he has the power to crush all the little-minded people who held him down.
Meet Valentine's Performing Pigs. People said it was daft to spend years trying to get a pig to jump through a hoop. And yet . . .
What does all this have to do with cars? I've heard a rumor that Chrysler President, Tom Lasorda heard about Valentine's success in getting pigs to move, so he asked for help selling the Chrysler Sebring.
Meet Bouncin' Dan, the Paddleball Man. I'm sure that people told him; "No Dan, you'll never amount to anything, bouncing that paddleball all day."
To which, he replied; "You'll see. I'm going to practice, practice, practice, until I'm the best paddleball bouncer in the world. Thousands of people will watch me and be amazed." Lo, as it turns out, Dan was right. Now he has the power to crush all the little-minded people who held him down.
Meet Valentine's Performing Pigs. People said it was daft to spend years trying to get a pig to jump through a hoop. And yet . . .
What does all this have to do with cars? I've heard a rumor that Chrysler President, Tom Lasorda heard about Valentine's success in getting pigs to move, so he asked for help selling the Chrysler Sebring.
Monday, November 19, 2007
Holy Fat Tom Cruise
It's been this way for several years. Every time I see Tom Cruise, it seems like he's just working that much harder to hold on to his leading man good looks and marketability. Let's face it, Tom, sooner or later, old man time will kick the shit out of you sooner or later, whether you are ready or not. Judging from this picture, Tom's time is up. Actually, if you believe Cinnematical.com, this is just make-up for a cameo in Ben Stiller's next movie, Tropic Thunder. Is it possible that just PART of it is make-up? Don't worry Tom, they'll still be macho roles for you as you age. They still have to make the movie version of Mike Myer's Middle-aged Man. Of course, there's always Captain Underpants. Tom, you probably know about Captain Underpants, if you didn't read the books to your kids, then Katie read them when she was a kid.
It's been this way for several years. Every time I see Tom Cruise, it seems like he's just working that much harder to hold on to his leading man good looks and marketability. Let's face it, Tom, sooner or later, old man time will kick the shit out of you sooner or later, whether you are ready or not. Judging from this picture, Tom's time is up. Actually, if you believe Cinnematical.com, this is just make-up for a cameo in Ben Stiller's next movie, Tropic Thunder. Is it possible that just PART of it is make-up? Don't worry Tom, they'll still be macho roles for you as you age. They still have to make the movie version of Mike Myer's Middle-aged Man. Of course, there's always Captain Underpants. Tom, you probably know about Captain Underpants, if you didn't read the books to your kids, then Katie read them when she was a kid.
Friday, November 16, 2007
From the "Never Piss off A Federal Judge" File:
Will Deutsche Bank's Mistake mean Independence Day for Borrowers?
(Spoiler warning) There's a scene toward the end of the movie Independence Day, that President Bill Pullman and his gang find a way to defeat the massive alien ships that are attacking them. They defeat the ship that is hovering over Area 51, and spread the word so that air units all over the globe can defeat alien ships worldwide. In the past couple weeks, consumer crusaders and courageous judges in Ohio have made some significant headway that could, in the long term result in fewer home foreclosures and a rationalization of the secondary mortgage market.
I always liked Federal Court. Partially it's because I never liked the "good old boy" feeling in state court, and partly it's because federal judges don't tolerate sloppy lawyering. The fact of the matter is, a lot of mortgage foreclosure law firms, work almost exclusively within the "good old boy" state court network, and they get sloppy. Now there are so many foreclosures in some areas that some mortgage firms are starting to file their foreclosures in federal court. That could be their undoing.
On October 31, 2007, Halloween, Ohio Federal District Court Judge Christopher A. Boyko must have worn his scary mask as far as lenders are concerned because he dismissed numerous foreclosure cases filed by Deutsche Bank on the grounds that the bank did not prove that they were proper assignees of the mortgage at the time the suit was filed. It's not so much what Judge Boyko did that was newsworthy, other judges have dismissed mortgages for the same reason in the past, it's the language that the judge used in dismissing the cases. One of the plaintiff's lawyers must have really pissed off the judge, because Honorable Judge Boyko pulled no punches in dressing down the lender's attorneys. Here's the text of the Judge's footnote 3, a footnote which might go down in judicial history as one of the classics of all time. Heck, it even made front page of the New York Times.
In re
Foreclosure Cases, No. 1:07CV2282, et al., slip op. (N.D. Ohio Oct. 31, 2007) (Boyko, J.)
In one fell swoop, Judge Boyko didn't just dismiss cases for failure to comply with the rule that you show you are a holder of a note or a real party at interest, he attacked the good old boy network for their acquiescence in allowing such pleadings and condoning sloppy filing by foreclosure attorneys. already there are some signs that other courts are picking up on this and taking this further. Just yesterday, in the Western District of Ohio,Dayton Division, In Re Foreclosure Cases, 3:07-cv-00286, Judge Thomas Rose, citing Judge Boyko's decision, looked at the 27 mortgage foreclosure cases filed in his district, and determined that 26 of them were facially deficient in alleging standing (based upon the plaintiff not owning the obligation upon filing.) Judge Rose gave the plaintiffs 30 days to show proof of standing at the time the case was filed. The judge also broadly threatened sanctions if the attorneys could not prove the oversight was not willful.
If you are a consumer attorney defending a foreclosure case, you should acquaint your self with your state laws regarding assignments of mortgage and demand strict compliance by the lender.
What I've been seeing in the non-foreclosure context that most of my cases are in is that lenders heretofore have been unwilling to do workouts on delinquent mortgages (usually subprime and predatory) because the ownership of the loan and the servicing are split. The servicer has no ability to negotiate the loan. The owner often can't even be determined. The mortgage securitization business may change dramatically hereafter. Hopefully, we'll be able to identify an entity who actually owns the loan and has a willingness to work something out.
For companies that buy home mortgage loans that are already in default and demand payment and bring foreclosure actions without proof of ownership, these companies may be setting themselves up to Fair Debt Collection Practices Act and Abuse of Process lawsuits, often on a class action basis.
DRAFT
Will Deutsche Bank's Mistake mean Independence Day for Borrowers?
(Spoiler warning) There's a scene toward the end of the movie Independence Day, that President Bill Pullman and his gang find a way to defeat the massive alien ships that are attacking them. They defeat the ship that is hovering over Area 51, and spread the word so that air units all over the globe can defeat alien ships worldwide. In the past couple weeks, consumer crusaders and courageous judges in Ohio have made some significant headway that could, in the long term result in fewer home foreclosures and a rationalization of the secondary mortgage market.
I always liked Federal Court. Partially it's because I never liked the "good old boy" feeling in state court, and partly it's because federal judges don't tolerate sloppy lawyering. The fact of the matter is, a lot of mortgage foreclosure law firms, work almost exclusively within the "good old boy" state court network, and they get sloppy. Now there are so many foreclosures in some areas that some mortgage firms are starting to file their foreclosures in federal court. That could be their undoing.
On October 31, 2007, Halloween, Ohio Federal District Court Judge Christopher A. Boyko must have worn his scary mask as far as lenders are concerned because he dismissed numerous foreclosure cases filed by Deutsche Bank on the grounds that the bank did not prove that they were proper assignees of the mortgage at the time the suit was filed. It's not so much what Judge Boyko did that was newsworthy, other judges have dismissed mortgages for the same reason in the past, it's the language that the judge used in dismissing the cases. One of the plaintiff's lawyers must have really pissed off the judge, because Honorable Judge Boyko pulled no punches in dressing down the lender's attorneys. Here's the text of the Judge's footnote 3, a footnote which might go down in judicial history as one of the classics of all time. Heck, it even made front page of the New York Times.
3 Plaintiff’s, “Judge, you just don’t understand how things work,” argument reveals a condescending mindset and quasi-monopolistic system where financial institutions have traditionally controlled, and still control, the foreclosure process. Typically, the homeowner who finds himself/herself in financial straits, fails to make the required mortgage payments and faces a foreclosure suit, is not interested in testing state or federal jurisdictional requirements, either pro se or through counsel. Their focus is either, “how do I save my home,” or “if I have to give it up, I’ll simply leave and find somewhere else to live.”
In the meantime, the financial institutions or successors/assignees rush to foreclose, obtain a default judgment and then sit on the deed, avoiding responsibility for maintaining the property while reaping the financial benefits of interest running on a judgment. The financial institutions know the law charges the one with title (still the homeowner) with maintaining the property.
There is no doubt every decision made by a financial institution in the foreclosure process is driven by money. And the legal work which flows from winning the financial institution’s favor is highly lucrative. There is nothing improper or wrong with financial institutions or law firms making a profit — to the contrary , they should be rewarded for sound business and legal practices. However, unchallenged by underfinanced opponents, the institutions worry less about jurisdictional requirements and more about maximizing returns. Unlike the focus of financial institutions, the federal courts must act as gatekeepers, assuring that only those who meet diversity and standing requirements are allowed to pass through.
Counsel for the institutions are not without legal argument to support their position, but their arguments fall woefully short of justifying their premature filings, and utterly fail to satisfy their standing and jurisdictional burdens. The institutions seem to adopt the attitude that since they have been doing this for so long, unchallenged, this practice equates with legal compliance. Finally put to the test, their weak legal arguments compel the Court to stop them at the gate.
The Court will illustrate in simple terms its decision: “Fluidity of the market” — “X” dollars, “contractual arrangements between institutions and counsel” — “X” dollars, “purchasing mortgages in bulk and securitizing” — “X” dollars, “rush to file, slow to record after judgment” — “X” dollars, “the jurisdictional integrity of United States District Court” —“Priceless.”
In re
Foreclosure Cases, No. 1:07CV2282, et al., slip op. (N.D. Ohio Oct. 31, 2007) (Boyko, J.)
In one fell swoop, Judge Boyko didn't just dismiss cases for failure to comply with the rule that you show you are a holder of a note or a real party at interest, he attacked the good old boy network for their acquiescence in allowing such pleadings and condoning sloppy filing by foreclosure attorneys. already there are some signs that other courts are picking up on this and taking this further. Just yesterday, in the Western District of Ohio,Dayton Division, In Re Foreclosure Cases, 3:07-cv-00286, Judge Thomas Rose, citing Judge Boyko's decision, looked at the 27 mortgage foreclosure cases filed in his district, and determined that 26 of them were facially deficient in alleging standing (based upon the plaintiff not owning the obligation upon filing.) Judge Rose gave the plaintiffs 30 days to show proof of standing at the time the case was filed. The judge also broadly threatened sanctions if the attorneys could not prove the oversight was not willful.
If you are a consumer attorney defending a foreclosure case, you should acquaint your self with your state laws regarding assignments of mortgage and demand strict compliance by the lender.
What I've been seeing in the non-foreclosure context that most of my cases are in is that lenders heretofore have been unwilling to do workouts on delinquent mortgages (usually subprime and predatory) because the ownership of the loan and the servicing are split. The servicer has no ability to negotiate the loan. The owner often can't even be determined. The mortgage securitization business may change dramatically hereafter. Hopefully, we'll be able to identify an entity who actually owns the loan and has a willingness to work something out.
For companies that buy home mortgage loans that are already in default and demand payment and bring foreclosure actions without proof of ownership, these companies may be setting themselves up to Fair Debt Collection Practices Act and Abuse of Process lawsuits, often on a class action basis.
DRAFT
Ford Contract Approved by Landslide
The Union was in a Giving Mood
Ford's UAW locals quietly and nearly uniformly approved the recently-negotiated collective bargaining agreement. About 78% of voting members approved the contract.
Surprisingly, the Ford agreement passed much more easily than recent contracts at General Motors and Chrysler even though the Ford workers are giving up significantly more than their comrades who work for the other automakers.
The Detroit News finally shook loose some of the details on the contract and posted them in Thursday's edition. Like the GM deal, the Ford contract includes a retiree healthcare VEBA (trust). The deal also includes a 2-tier wage scale. The Ford deal apparently includes UAW carrots for job creation and retention and much more flexibility on work rules and job classifications.
The VEBA: Unlike GM, Ford did not pony up a large amount of new cash to fund the plan. Ford will get rid of $23.7 billion in liabilities with a $13.6 billion trust. New money contributions will only be about $3 billion. Six billion will come from notes issued by Ford, in other words, IOUs, and the remainder will consist of assets already pegged to retiree healthcare. If the Detroit News article and my 1 AM math are correct, only $7.6 billion of the VEBA, about a third of the entire actuarial liability will be backed by real cash assets, and because the VEBA won't be fully operational until 2009, the money doesn't have to be contributed now. I think Wimpy said it best: "I will gladly repay you Tuesday for a hamburger today."
The Wage Scale: Up to 20% of Ford's workforce can be made up of lower-tier workers who start at $14.20 per hour. In addition, Ford can hire "in-sourced" workers at the lower wage without counting toward the 20% cap. UAW Workers other than the lowest 20% will not get a "baseline" wage increase. The article is silent about bonuses.
Job Security: Ford agreed to keep open 5 facilities that were scheduled to be closed in Ford's "Way Forward" plan. Also Ford agreed not to build a "low cost" North American (read that - Mexican) facility during the contract. Ford agreed to invest in flexible manufacturing for its existing facilities. The UAW is doing its part in that area by agreeing to reduce skilled labor job classifications from 350 to 22.
In summary, the UAW gave about as much as you could expect it to give. It's now up to Ford management to cure its tendency to mis-spend product development and marketing resources and stop dumping money into black holes like Jaguar.
The Union was in a Giving Mood
Ford's UAW locals quietly and nearly uniformly approved the recently-negotiated collective bargaining agreement. About 78% of voting members approved the contract.
Surprisingly, the Ford agreement passed much more easily than recent contracts at General Motors and Chrysler even though the Ford workers are giving up significantly more than their comrades who work for the other automakers.
The Detroit News finally shook loose some of the details on the contract and posted them in Thursday's edition. Like the GM deal, the Ford contract includes a retiree healthcare VEBA (trust). The deal also includes a 2-tier wage scale. The Ford deal apparently includes UAW carrots for job creation and retention and much more flexibility on work rules and job classifications.
The VEBA: Unlike GM, Ford did not pony up a large amount of new cash to fund the plan. Ford will get rid of $23.7 billion in liabilities with a $13.6 billion trust. New money contributions will only be about $3 billion. Six billion will come from notes issued by Ford, in other words, IOUs, and the remainder will consist of assets already pegged to retiree healthcare. If the Detroit News article and my 1 AM math are correct, only $7.6 billion of the VEBA, about a third of the entire actuarial liability will be backed by real cash assets, and because the VEBA won't be fully operational until 2009, the money doesn't have to be contributed now. I think Wimpy said it best: "I will gladly repay you Tuesday for a hamburger today."
The Wage Scale: Up to 20% of Ford's workforce can be made up of lower-tier workers who start at $14.20 per hour. In addition, Ford can hire "in-sourced" workers at the lower wage without counting toward the 20% cap. UAW Workers other than the lowest 20% will not get a "baseline" wage increase. The article is silent about bonuses.
Job Security: Ford agreed to keep open 5 facilities that were scheduled to be closed in Ford's "Way Forward" plan. Also Ford agreed not to build a "low cost" North American (read that - Mexican) facility during the contract. Ford agreed to invest in flexible manufacturing for its existing facilities. The UAW is doing its part in that area by agreeing to reduce skilled labor job classifications from 350 to 22.
In summary, the UAW gave about as much as you could expect it to give. It's now up to Ford management to cure its tendency to mis-spend product development and marketing resources and stop dumping money into black holes like Jaguar.
Thursday, November 15, 2007
2008 Dodge Journey
When the Lights go out in the city . . .
Dodge issued a press-release in August about a new midsized crossovever vehicle that is set to debut early next year. After I read it, I started a blog entry, but didn't have time to finish it. It's ominous that after reading the release, I couldn't remember the name of the vehicle. I few days later, I went back to blog again, and I still couldn't remember the name of the vehicle. I came back to it today, and once again - blank. It's ominous for Chrysler that even after multiple exposures, someone in their target market can't remember the name of their vehicle.
For the first vehicle released after the Cerberus buyout of Chrysler, it's appropriate that the company has picked the name "Journey" for its midsized CUV. I perused the titles of singles by the band Journey, and there are a number that you could apply to the abandonment of Chrysler by Daimler AG.
I'll be alright without you,
Separate Ways,
Still they ride. . .
My favorite: Who's crying now? That would be the Cerberus shareholders, because at first blush, the Dodge Journey seems like an also ran right out of the starting gate.
The Journey is based on a version of the platform of the Dodge Avenger, but stretched about 5 inches to leave room for a "limited use" 3rd row seat. In other words, the Journey is the station wagon version of the Avenger. The Journey apparently is designed for the slot in the Dodge line-up formerly occupied by the short-wheeelbased version of theDodge Caravan minivan. It's a family hauler shorter than and (they hope) more stylish than a minivan. In the market, the Journey directly competes with the Ford Taurus X (formerly the Freestyle) and sandwiches between the Toyota Rav4 and Highlander.
When the Lights go out in the city . . .
Dodge issued a press-release in August about a new midsized crossovever vehicle that is set to debut early next year. After I read it, I started a blog entry, but didn't have time to finish it. It's ominous that after reading the release, I couldn't remember the name of the vehicle. I few days later, I went back to blog again, and I still couldn't remember the name of the vehicle. I came back to it today, and once again - blank. It's ominous for Chrysler that even after multiple exposures, someone in their target market can't remember the name of their vehicle.
For the first vehicle released after the Cerberus buyout of Chrysler, it's appropriate that the company has picked the name "Journey" for its midsized CUV. I perused the titles of singles by the band Journey, and there are a number that you could apply to the abandonment of Chrysler by Daimler AG.
I'll be alright without you,
Separate Ways,
Still they ride. . .
My favorite: Who's crying now? That would be the Cerberus shareholders, because at first blush, the Dodge Journey seems like an also ran right out of the starting gate.
The Journey is based on a version of the platform of the Dodge Avenger, but stretched about 5 inches to leave room for a "limited use" 3rd row seat. In other words, the Journey is the station wagon version of the Avenger. The Journey apparently is designed for the slot in the Dodge line-up formerly occupied by the short-wheeelbased version of theDodge Caravan minivan. It's a family hauler shorter than and (they hope) more stylish than a minivan. In the market, the Journey directly competes with the Ford Taurus X (formerly the Freestyle) and sandwiches between the Toyota Rav4 and Highlander.
I find it interesting that Dodge did not release the curb weight of the Journey. In my experience, detailed press releases omit curb weight when the vehicle is heavy and bloated compared to its competitors. Since no Dodge vehicles are light weight, it's not a good sign. Ford did a good job keeping the weight down on its Freestyle, but even with a curb weight lower than its two-row Edge, and a performance-maximizing CVT transmission, het three-row Freestyle was criticized for its performance with a 200 horsepower 3.0 liter V-6. The Journey's two lower trim levels get by with engines that deliver less power than that of the outgoing Ford Freestyle, specifically 2.4 liter 4-cylinder and 2.7 liter 6-cylinder powerplants, both coupled to an outdated 4-speed automatic transmission. Only the 3.5 liter V-6 (six-speed auto) appears to be competitive in terms of engine-transmission pairing.
There are some nice interior touches in the Journey. There are kid-friendly middle row seats with optional integrated booster seats, and under-floor storage similar to the "stow" part of the "stow -n- go" minivan seating. The Avenger offers Chrysler's heated & cooled drink holders and Mygig(tm) entertainment system.
The Avenger will apparently be built in Mexico, initially sharing capacity with, and eventually replacing, the PT Cruiser. That means that UAW-LSP employees can't drive it to work because it is a non-uaw built vehicle.
Here's a link to more detailed information on the Chrysler buff site Allpar.com.
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