Cars: GM-Chrysler Merger Would Be A Lemon | Newsweek Voices - Keith Naughton

Detroit: Begging For Help
Keith Naughton 11/7/2008 12:00:00 AM
One intense political campaign may be over, but another one has already begun. "It is time for action," the candidate said forcefully to a nationwide television audience. "And the time is now." But that was not Obama or McCain, or Palin, or even Biden. That was General Motors chairman Rick Wagoner on CNBC on Friday exhorting Congress to give his company, and the rest of Detroit, billions—or have the nation's economy face "significant risks." The auto exec was ostensibly on the financial cable channel to discuss GM's abysmal $2.5 billion loss in the third quarter. But like a savvy political pro, he used the free air time to make his case to the American people and rebut the naysayers who contend that GM, like Lehman Brothers, deserves to collapse from its own ineptitude. "I read the pundits and I suspect these are the guys who said let Lehman Brothers go and you see the impact that had," Wagoner said. "This is a pivotal issue for the U.S."
KEITH NAUGHTON | DRIVING FORCES
Chrysler, R.I.P.
Keith Naughton 10/31/2008 12:00:00 AM
As Chrysler commemorated its first anniversary under the ownership of private-equity player Cerberus Capital Management this summer, CEO Bob Nardelli issued a five-page letter to rally the troops. After all, things hadn't really worked out as Cerberus expected when it paid $7.4 billion to take Chrysler off Daimler's hands in 2007. Rather than "restoring an American icon," as Cerberus chairman John Snow declared back then, Chrysler sunk even further into the muck as gas prices soared and showroom traffic came to a standstill. Chrysler's guzzler-heavy lineup of SUVs and trucks did worse than most, with sales plummeting 25 percent and profits nowhere to be found. Still, Nardelli, once an acolyte of GE's Jack Welch, oozed optimism when he closed his long letter with these words of encouragement: "Chrysler may be down, but we're a long way from out. It's time for us to prove the naysayers wrong with another one of our patented comebacks!"
Running on Empty
Keith Naughton 7/3/2008 12:00:00 AM
I am driving a dinosaur this week. No, I'm not Fred Flintstone working in the rock quarry. Rather, I'm test-driving a Ford F-150, Harley Davidson edition pickup truck. It's got a big supercharged V8 engine that rumbles to life like a Harley hog. It's got a cool two-tone copper and black paint job, leather captains chairs embossed with the Harley logo, satellite navigation, moon-roof and power everything. This fully loaded ride has a sticker price of $50,035 and it's wicked fun to drive. But it also gets 12.8 miles per gallon and costs $123 to fill up. It's just the sort of big rig suburban cowboys couldn't get enough of back when gas was cheaper than bottled water (as they used to say in Detroit). But these days, this model is going nowhere. And neither is Detroit.
DRIVING FORCES
Should You Pay $6 Per Gallon?
Keith Naughton 4/25/2008 12:00:00 AM
With gas prices constantly hitting new records, John McCain struck a populist chord last week with his proposal for a gas tax holiday. After all, with pump prices for regular now averaging $3.57 a gallon, who wouldn't like to lop off the 18.4-cent federal tax on each gallon you pump into your car this summer? It seemed like such a good idea Hillary Clinton jumped on the gas tax holiday bandwagon too. Only Barack Obama said he didn't like the idea because it takes funds from federal roadwork. However, Obama did vote for a similar gas tax holiday as an Illinois state senator in 2000.
PROJECT GREEN
Diesels' Fast Acceleration
3/25/2008 12:00:00 AM
Diesel-powered vehicles haven't enjoyed the best reputation in the United States, despite the well-known benefit of impressive fuel efficiency. Consumers have long been unimpressed by other traits, such as their black clouds of exhaust soot, ear-rattling racket and, ahem, let's call it "stately" acceleration.
ENTERPRISE: INNOVATION
Honey, I Shrunk The Car
Keith Naughton
When gas prices began to shoot up last summer, Millie Richardson became fed up with her minivan. So the Lawrenceville, N.J., mom traded in her Dodge Caravan for a $17,000 Nissan Versa, a subcompact that gets more than 30 miles per gallon. Richardson, 55, likes spending less at the pump, but she's most excited about how roomy her little car is. "My son is 6-foot-6, and he drove it," she marvels. "So it's small, but it's big—does that make sense?" What's even more appealing to Richardson, though, is a $2,500 car she's heard about that was introduced in India last month: the Tata Nano. Though there are no plans yet to bring it to America, Richardson is ready. "Oh, boy, would I ever love to drive one," she says. "I would look at it as a disposable car. It would be so cheap, you could always afford a new one."