Mish vs. The Auto Bailout

Stop The Auto Bailout Campaign - Phase Three. A concise list of the best reasons not to waste money on bailouts for the auto industry.

The airline industry did not stop flying when it went bankrupt and the auto companies will not stop producing cars if they go bankrupt. In fact, bankruptcies will eliminate the debt on the books decrease interest payments and make the companies more competitive, if and when they ever get around to producing autos that consumers want instead of what the manufactures want to produce.

Mitt Romney vs. an Auto Bailout

Let Detroit Go Bankrupt. I agree.

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses.

Time Magazine vs. an Auto Bailout

Is General Motors Worth Saving?

But ultimately, whether GM is dead or alive, the taxpayers are on the hook for billions, for everything from lost tax revenues to higher unemployment costs to taking over GM's pension obligations. The decision that Washington has to make is whether we pay for GM's survival or for its funeral.

Time provides an overview of what happens if GM is allowed to fail.

Friedman vs. an Auto Bailout

How to Fix a Flat

They were interviewing Bob Nardelli, the C.E.O. of Chrysler, and he was explaining why the auto industry, at that time, needed $25 billion in loan guarantees. It wasn’t a bailout, he said. It was a way to enable the car companies to retool for innovation. I could not help but shout back at the TV screen: “We have to subsidize Detroit so that it will innovate?”

Greenspun vs. GM

Let G.M. go bankrupt

The rest of America will be taking pay cuts, losing jobs, giving discounts to customers, etc. What is special about G.M. that they should be able to live as though 2008 never happened?

J.D. Power and Associates Reports 2008

2008 Vehicle Dependability Study (VDS) and 2008 Initial Quality Study

Audi Rules Le Mans

Audi wins the 2008 24 Hours of Le Mans. That's nothing new, they've been winning most of the time since 2000. What's cool this year is they won with a car penalized with a smaller fuel tank (to try and give other teams a chance) that ran on diesel from gas and garbage.

Behind Audi's Biodiesel Victory At The 24 Hours Of Le Mans

Love the XF

Attended the sneak peak of the Jaguar XF tonight. Wow, it looks even better in person. I should probably sleep on it before declaring it the best looking sedan on sale Canada*. Ian has been great for Jaguar. I'm really feeling his Aston Martin vibe.

The XF seems to cover everything I don't like about the current 5 series inside and out, and for less money. I have to say, for my taste the XF interior is just about perfect. Too bad the car is too long for my side of the garage... and double what I should spend on any car. Perhaps like the S-Type it's replacing, the XF will become a relative bargain on the used market in a few years**.

On those lines, where will Jaguar be in a few years? I hope Tata continues Ford's good work on Jaguar's dependability and initial quality. Rumor is that Tata doesn't even want Jag, just Land Rover, but Ford is only selling them as a bundle. That's OK, others will be waiting to relieve the Indians of the unwanted cat.

* Yes, Luke, even counting the S8. Heresy, I know. I'm even counting the Quattroporte, I like the XF that much.

** Even then the XF is a dream car, not a practical consideration. It's not the price per se, it's that this car is all about sporty feel, speed, and status - three emotional things I see less value in now. And if I keep repeating that maybe I'll believe it.

No Falcon For You

Ford continues to suffer massive losses yet has cars like this (and this and this) that it refuses to sell at home.

Wood Burning Car

Yugo runs by wood-gas

It takes about 15-20 min to start the car because the wood needs to be decomposed. Capacity of the firebox is 35 kg of wood or coal , which is enough to do 150 km.

Instead of 1 litre of gasoline, 2.5 kg of wood is spent. 20 kg of wood are consumed after 100 km which means that driving "on wood" is up to 10 times cheaper than the conventional driving using gasoline.

But I want one

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Because it's a great idea. It's a little flashlight that sits in your car's unused lighter so it's always charged and ready to provide emergency lighting.

Maybach Convertible

I'd get one, but with our long winters it would probably require having a second limo and I'm not ready for that yet.

Maybach 62 Landaulet

My $1000 savings arrived today

UPS just dropped off my 225/45R17 Blizzak winter tires from US online tire retailer The Tire Rack. Total charge in CAD including tax, duty, brokerage, currency exchange, VISA exchange fee, provincial tire fee, and shipping was $627.62. Delivery took 7 days. My neighborhood Tirecraft is installing them on Friday for $100 + tax.

Before my order I got a quote for Blizzak tires from a local Kal Tire. About $1,750 installed. In short, buying my tires online from the US has saved me over $1,000. The delivery man commented that he had also recently bought his tires from Tire Rack and had another order from them in his van waiting to be delivered to someone else.

The only way we will get lower prices in Canada is to buy elsewhere.

The Robot Tahoe Takes It

Champion Robot Car Declared

Carnegie Mellon's computer-laden Chevy Tahoe wins the Urban Challenge and takes home the $2 million prize.

Junior, Stanford's Passat, was second. In 2005 their robot Touareg, Stanley, was first in the off-road competition.

W12 Golf

In May VW unveiled a Golf concept with a 12 cylinder engine. The rear/mid mounted engine is twin turbocharged and generates 650hp. A couple notes:

• Claimed top speed of 325 km/h
• And 0-100 km/h (62 mph) of 3.7 seconds
• 2 seater
• Retains the production car's doors, hood and lights
• Instead of spolier, carbon-fiber roof designed to work as massive diffuser
• The Golf is the second largest-selling vehicle in the world, trailing only the Toyota Corolla
• In June VW built the 25-millionth Golf

More: Wörthersee 2007, Hot Volks Rod

Driver's Seat doesn't know the difference between a Honda and a Toyota

Canadian Automotive TV Show "Driver's Seat" shows a Toyota Yaris instead of the Honda Fit they are reviewing. Things start out OK, but watch when they switch to the exterior action shots.

Video here

So what view should I take? That an overworked, under-appreciated editor mixed up two red Japanese hatchbacks? Or that a show that claims to be the "Gold Standard in Canadian Automotive TV Journalism" showed the wrong car.

Maybe it was even on purpose, like "Oh no the camera man lost the Fit tape... I know, let's edit in the Yaris footage - no one will notice". Well they didn't count on a sharp-eyed car enthusiast with a TiVo and too much time on his hands.

What's a domestic?

The Toyota Sienna is assembled in Georgetown, Kentucky and contains 85% parts from US or Canada. The Chrysler 300C contains 72% parts from US or Canada and is assembled in Brampton, Ontario. So which one is an "American" automobile?

Foreign? American? Auto parts go global

VW redux

After just over 6 years of ownership, I dropped off my 1999 Jetta and picked up a shiny 2007 GTI on Saturday. Of course, it has DSG. It came with 18" wheels, but I swapped those out today for the more comfortable ride and subtle look of 17's. Normally I don't like white cars, however with the GTI it works for me. I would've taken dark gray and leather except they're ordering into October now, so I had to take the cancelled order that was available or wait.

What I have now:

The wheels I traded back:

Quick review: it's great. There are plenty of better reviews on the web.

What do you pay for parking?

The lot where I park is now $100 per week. That's outdoor, uncovered, with no plug-ins. Welcome to Calgary.

Why is our office downtown?

Race cars, Mobsters, and Pirates

What distracted me today:

• A driver's view video from a race car on a mountain road. By the way, that's definitely not an Audi R8 as the video is titled, it's probably a Norma M20. What a ride.
• What do a totaled million dollar Ferrari, bankrupt portable game company, exaggerated California bus police force, and the Swedish Mafia of Uppsala have in common? Apparently one Stefan Eriksson. What a story.
• And the film industry continues to blame the drop in theater revenue on pirates. What a shame.