Canadian auto talks move closer to union strike deadline

By macleans.ca - Monday, September 17, 2012 at 5:22 AM - 0 Comments

TORONTO – Negotiations between the Big Three North American automakers and their Canadian workers are drawing closer to a line in the sand drawn by the union.

The Canadian Auto Workers has threatened job action, possibly against all three companies, if there is no agreement by midnight eastern time.

The CAW indicated Sunday it would focus its energies on negotiations with Ford.

CAW president Ken Lewenza told a Toronto news conference that Ford has shown a “clear willingness” to reach a new contract and the union will work around the clock to achieve that, hoping to use a Ford agreement as leverage with General Motors and Chrysler.

Though Lewenza did not say if Ford has agreed to a union proposal that would lower wages for new hires but still allow them to progress to full pay over time, he suggested the company isn’t dead set against the idea.

“Ford isn’t philosophically opposed to anything other than to say, ‘Folks, keep your costs down, keep it manageable,’ and (then) we can share in the success with the company together.’”

He said Ford “hasn’t promised anything” but added the company has indicated it agrees in principle to some of the union’s issues, which he said are being reviewed for possible “tweaking.”

Chrysler appeared miffed by the union’s move, a spokeswoman saying the company was “very concerned.” G.M. and Ford had little comment.

Lewenza expressed confidence a deal could be reached by the union’s strike deadline and said the union would ignore its deadline if a breakthrough was close.

“If we see light at the end of the tunnel then we’re going to keep working until it shines on an agreement,” he said.

But he said if that tunnel ends with a brick wall then the CAW will put its near-21,000 members on strike at one or all of the automakers’ plants.

“That is the last tool in the bargaining toolbox,” he said.

The automakers entered the bargaining round seeking a permanent wage reduction for fresh employees, similar to a deal the companies reached in the U.S.

But the CAW has been adamant it will never agree to a pay structure that creates “two tiers” of employees.

CAW pushing for deal with Ford in contract talks with automakers

By The Canadian Press - Sunday, September 16, 2012 at 7:27 PM - 0 Comments

TORONTO – The head of the Canadian Auto Workers says the union is going to focus its negotiations with the Big Three automakers on reaching a deal with Ford.

Ken Lewenza told a Toronto news conference Sunday that Ford has shown a “clear willingness” to reach a new contract and the union will work around the clock to achieve that, hoping to use a Ford agreement as leverage with General Motors and Chrysler.

Though Lewenza did not say if Ford has agreed to a union proposal that would lower wages for new hires but still allow them to progress to full pay over time, he suggested the company isn’t set against the idea.

“Ford isn’t philosophically opposed to anything other than to say, ‘Folks, keep your costs down, keep it manageable,’ and (then) we can share in the success with the company together.’”

He said Ford “hasn’t promised anything” but added the company has indicated it agrees in principle to some of the union’s issues, which he said are being reviewed for possible “tweaking.”

The union has threatened strike action if there is no agreement by 11:59 p.m. eastern time Monday. Lewenza said talks are “fluid” and he is confident a deal can be reached before then.

The automakers entered the bargaining round seeking a permanent wage reduction for fresh employees, similar to a deal the companies reached in the U.S.

But the CAW has been adamant it will never agree to a pay structure that creates “two tiers” of employees.

Though talks with G.M. and Chrysler continue, Lewenza said the CAW is putting all its available resources into talks with Ford as it hopes a contract breakthrough is in sight.

If a Ford agreement is completed then the union will take it as a blueprint to the other companies in the “final hours” of negotiations to try to nail down two additional contracts, he said.

Lewenza said the union is open to keeping talks going past the Monday deadline if they’re productive.

“If we see light at the end of the tunnel then we’re going to keep working until it shines on an agreement,” he said.

But he said if that tunnel ends with a brick wall then the CAW will put its near-21,000 members on strike at one or all of the automakers’ plants.

“That is the last tool in the bargaining toolbox,” he said.

There have been hundreds of meetings with the three automobile giants since negotiations started 3 1/2 weeks ago, but talks didn’t begin in earnest until Labour Day, Lewenza said.

Chrysler spokeswoman LouAnn Gosselin said in an email the company is “very concerned” the CAW is focusing its efforts on talks with Ford, while G.M. said only it continues to bargain with the union.

Ford did not immediately respond to request for comment Sunday night.

Progress being made with one of Big 3 automakers in contract talks: union

By The Canadian Press - Sunday, September 16, 2012 at 6:12 AM - 0 Comments

TORONTO – The Canadian Auto Workers says it’s making good progress with one of the three big North American automakers on a wage proposal it hopes could be a turning point in contract talks.

CAW national secretary-treasurer Peter Kennedy says one of the companies, which the union won’t name, is reviewing the plan following discussions Saturday morning in Toronto.

The proposal would see new employees earn less when they are hired and take longer to reach the top end of the wage scale.

Kennedy says the offer is key since once the wage issue is settled then the rest of the deal should be easy to nail down.

He says the union expects negotiations with the two other companies to move more quickly once one of the trio signs off on an agreement with the CAW.

The CAW has threatened job action if there is no deal by midnight on Monday, but has indicated it might hold off if progress is being made.

Ford, Chrysler and General Motors were not immediately available for comment.

Kennedy said the wage proposal is “the key that unlocks the door — once we get that confirmed with one of the three then we can go to town on all of the other issues.”

“There’s still a lot of big issues but that’s been kind of the major hurdle we’ve had to get our arms around,” he said, adding the union disagrees with proposals by the automakers that their Canadian employees accept a permanent “two-tier” wage structure adopted in their U.S. plants.

Canadian Auto Workers plan to bargain all weekend, calling the talks the most difficult they’ve had in 20 years

By The Canadian Press - Friday, September 14, 2012 at 11:34 AM - 0 Comments

TORONTO – It’s likely going to be a long weekend for both sides in the Canadian auto talks.

The Canadian Auto Workers warned Thursday may target more than one of the Big Three North American automakers if negotiations fall through.

It says talks have intensified in an effort to avoid a work stoppage when the current contracts run out at the end of Monday but there’s been no progress.

“Today we are without an agreement on all major issues,” the union said Friday in a message to its members at Ford, General Motors and Chrysler.

“Our committees are frustrated, but remain intent on finding a solution.”

CAW spokesman Peter Kennedy said Thursday a decision about who to target will be made closer to Monday night when the current contracts expire at 11:59 p.m..

“We urge members to stay on the job and stay tuned for further information and instruction. Your bargaining committees are working very hard, guided by our shared goal of winning the best agreement possible while minimizing the sacrifice to our members,” the union said in a message distributed Friday to the media.

The three automakers have taken a low-profile approach during the talks but industry observers have noted they’re looking for lower labour and pension costs in line with an agreement with the United Auto Workers in the United States.

The CAW, which is independent of the UAW, has historically been able to prove its members had an economic cost-advantage over their American counterparts but that leverage has dwindled or disappeared due to a Canadian dollar now worth more than the U.S. currency as well as contract concessions at the UAW.

The CAW has said it’s prepared to allow a plan that would see new employees earn less when they are hired and take longer to reach the top end of the wage scale.

CAW president Ken Lewenza has said the union opposes a permanent two-tier system — such as one accepted by the United Auto Workers union for employees at the automakers’ U.S. plants.

Kennedy described the talks as the most difficult he’s seen in more than 20 years, including the restructuring in 2009 to save GM and Chrysler from bankruptcy.

GM to make changes for salaried employees

By Scaachi Koul - Monday, August 20, 2012 at 8:43 AM - 0 Comments

General Motors of Canada Ltd. is making some big changes to the pension plans and health-care benefits of its salaried employees. This comes just as the company starts wage negotiations with its unionized workers.

From The Globe and Mail:

A defined-benefit pension plan for the company’s salaried employees will be converted to a less-expensive defined-contribution plan beginning Jan. 1. Salaried employees who retire after 2014 will receive lump-sum payments for health care instead of the traditional plan that had given them coverage for vision, dental and other expenses.

The move also shows that three years after its parent company was restructured under bankruptcy protection, the Canadian unit of GM is trying to reduce or eliminate “legacy costs” from its decades of market domination.

GM, Peugeot mulling European alliance

By Gabriela Perdomo - Wednesday, February 22, 2012 at 10:00 AM - 0 Comments

With General Motors Canada Ltd. reportedly facing a $2.2 billion shortfall to meet pension obligations, its parent company, General Motors Co., is considering a merger with Peugeot in Europe to save money on manufacturing. PSA Peugeot Citroen is Europe’s second largest auto maker, while GM is the world’s largest. The two behemoths are considering a manufacturing alliance, reports The Globe and Mail, to save money by sharing vehicles and parts. The deal would be part of Peugeot’s “globalization strategy.” Like GM, Peugeot is also suffering steep losses in Europe, where consumer demand is sluggish. The company’s stock has dived by 50 per cent in only 12 months.

GM’s betting big on Chevy

By Chris Sorensen - Monday, November 7, 2011 at 9:40 AM - 3 Comments

GM; Car Culture/Getty Images; Photo illustration by Lauren Cattermole

Late-autumn baseball is a nostalgia-filled time for Americans. So it makes sense that General Motors would wait until Game 1 of this year’s World Series to roll out a patriotic TV ad celebrating the 100th birthday of its flagship Chevrolet brand. The 60-second spot shows people holding up historic photographs of Chevrolet vehicles and their owners in front of the same stirring American backdrops—windswept plains, craggy mountain peaks, idyllic suburban homes and gritty roadside gas bars—as they appear today. And, just in case a few heartstrings were left untugged, Ray Charles sings America the Beautiful in the background.

It’s well-worn marketing territory for Chevrolet, but it represents only part of GM’s aspirations for its bestselling nameplate. Though the bow tie has historically been synonymous with burly pickup trucks and throaty muscle cars, these days a “Chevy” is just as likely to refer to a Sonic subcompact or its sleek Cruze small car—vehicles that are designed to be sold all over the world, including fast-growing markets like China and Russia.

Through Chevrolet, GM is rebuilding its global footprint after going through a painful restructuring under bankruptcy protection two years ago. “Ford has been much more of the global player of the American carmakers in recent years,” says Alan Middleton, a marketing professor at York University’s Schulich School of Business. “I think GM is not only looking for cost savings, but is shifting its positioning to become more of a global brand.” So far, it appears to be paying off—in its third quarter, Chevrolet reported sales of 1.2 million vehicles globally, a best-ever performance for the brand. It was also the only major automaker to grow its global market share this year, with 60 per cent of sales now coming from outside the U.S.

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On the road to recession

By Kate Lunau - Monday, October 3, 2011 at 10:20 AM - 0 Comments

Canadian retail sales were down 0.6 per cent in July, largely dragged down by sluggish sales at car dealerships, which fell 3.4 per cent in that month. That’s bad news for an industry that had been relatively stable over the past year—but still relatively minor compared to the auto crisis now unfolding south of the border. “The problem is in the U.S.,” where the vehicle sector looks headed for a double-dip recession, says automotive consultant Dennis DesRosiers.

With “dismal sales” from May through September, the U.S. auto industry will soon have experienced two consecutive quarters of negative growth, DesRosiers says, the hallmark of a recession. Canada certainly isn’t immune to the difficulties either. Vehicles and auto parts made here are mostly sold to American consumers. And as recent data shows, Canadian consumers are already spooked: retail sales are up 3.9 per cent year over year, down from a pace of six per cent at the end of 2010.

As for what’s bogging down the American auto industry, it’s everything from financial panic in Europe to the debt crisis and high unemployment in the U.S. “There’s a saying that if you have a job, you need a car,” DesRosiers says. “The opposite is also true.”

Old brand, new carmaker

By Patricia Treble - Wednesday, September 7, 2011 at 11:05 AM - 1 Comment

Mark Elias/Bloomberg/Getty Images; TD Economics

General Motors may be able to trace its roots back to 1908, but in court it is trying hard to forget its past. The automaker, which went through bankruptcy in 2009, is being sued in U.S. District Court over alleged suspension problems for more than 400,000 Chevy Impalas from 2007 and 2008. Plaintiff Donna Trusky contends the rear spindle rods are faulty, resulting in premature rear tire wear.

However, GM’s lawyer, Benjamin Jeffers, wants the case rejected for a simple reason: she’s suing the wrong firm. “There are no specific factual allegations that New GM—as opposed to Old GM—did anything at all in relation to her vehicle,” he wrote in a recent filing, referring to the new firm that emerged from bankruptcy. “Plaintiff here is trying to saddle New GM with the alleged liability and conduct of Old GM.” He goes on to say, “New GM did not assume responsibility for Old GM’s design choices, conduct or alleged breaches of liability under the warranty.” In essence, the firm says the suit should be directed at Old GM because it’s their design flaw, not a warranty issue that New GM would cover. Experts believe GM could prevail. In January, a judge ruled for the firm in a case involving a pre-2009 OnStar system.

How Kia and Hyundai became cool

By Chris Sorensen - Tuesday, August 16, 2011 at 12:30 PM - 10 Comments

Reuters/Valentin Flauraud

Hyundai’s entry into the North American car market in the 1980s was an inauspicious one. Though low-priced models like the Excel and the Pony attracted frugal buyers, the South Korean company’s name quickly became synonymous with unreliable cars, and even found itself the butt of comedians’ jokes. But these days, Hyundai and its sister brand Kia have become the biggest growth stories in the automotive world—so much so that some are talking about the possibility of South Korea one day rivalling Japan’s industry clout. Continue…

Carmaker comeback

By Jason Kirby - Monday, July 11, 2011 at 9:05 AM - 0 Comments

Jim R. Bounds/Bloomberg/Getty Images

In 2009, when there seemed no bottom to how far the economy might fall, a series of photographs circulated online showing thousands of unsold cars piling up around the world. With consumers paralyzed by the credit crisis, automakers filled docks, vast meadows and even abandoned airport runways with the vehicular glut. The striking yet surreal aerial photos could have hung on a gallery wall were it not for the economic devastation they represented. Today, some economists are once again warning the world is on the cusp of another crisis as Greece burns, gas prices remain high and America’s job market stagnates. Only this time instead of pulling down the global economy, the auto sector is seen as the best hope of jump-starting the recovery.

Call it Cars 2—not the animated big-budget sequel making its way through theatres, but the return of cars and trucks as key drivers of the critical U.S. economic machine. “Americans still love their cars,” says Michael Burt, who tracks industrial economic trends for the Conference Board of Canada. “The types of vehicles they may purchase will change, but they’re continuing to buy.” The question now is, how long can America’s love affair with metal and rubber overcome the economic headwinds?

On the surface, the auto sector’s performance in June seemed disappointing. When American sales for the month were tallied, the results fell short of analysts’ forecasts. Sales growth came in at 7.1 per cent, according to Autodata Corp. That was less than the eight to 10 per cent analysts had predicted, and slower than the growth registered in May, which was already a sluggish month.

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Photo gallery: New York International Auto Show

By Zoran Milich - Friday, May 20, 2011 at 2:30 PM - 0 Comments

Detroit: crumbling—but more so

By Chris Sorensen - Tuesday, April 5, 2011 at 3:56 PM - 0 Comments

Beaten up and left for dead, the city of Detroit finally appeared to be climbing back to its feet earlier this year. The auto industry was off life-support and a Super Bowl commercial, courtesy of Chrysler, created national buzz by favourably depicting Motown as the gritty, down-but-never-out heartbeat of America. And then reality set in. Recent U.S. census data showed that Detroit’s population had plummeted to 713,777 residents, down 25 per cent from a decade ago and its lowest level in 100 years, as families—both black and white—fled the city’s poverty and urban blight for affluent suburbs.

For city hall, the new numbers mean even more abandoned houses and vacant buildings to maintain on a dwindling tax base. Worse, there may now be less money coming from state and federal assistance programs, many of which use a population of 750,000 as a cut-off, which is why Mayor Dave Bing is demanding a recount. Others argue it’s time for Detroit to begin the tough slog of reinventing itself, consolidating some neighbourhoods and razing others. “It is time for all of us to realign our expectations so that they reflect today’s realities,” Michigan Gov. Rick Snyder told ABC News. “We cannot cling to the old ways of doing business.”

How now, brown car?

By Jason Kirby - Tuesday, December 14, 2010 at 12:40 PM - 9 Comments

Motoring Picture Library/Alamy

Brown cars. For the better part of three decades those two words elicited rolled eyes, conjured images of gas-guzzling boats, and spelled certain failure for any carmaker that dared go there. No more. “Brown is the new black,” says Michelle Killen, head of external paint design at GM North America. This year, brown-coloured vehicles will account for eight per cent of all sales in North America, says Killen, up from 5.5 per cent last year, and virtually nothing three years ago. The reigning colours of the car industry—white, silver and black—are at no risk of being knocked off the podium, but brown’s popularity is rising fast.

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Second life

By Jaime Weinman - Thursday, December 9, 2010 at 12:00 PM - 0 Comments

Jennifer Grey, Fidel Castro, Betty White | Alberto E. Rodriguez/Sven Creutzmann/Mambo Photo/Getty Images

ELIOT SPITZER
Spitzer’s political career collapsed in 2008 when he resigned the governorship of New York after a prostitution scandal. But even bad publicity was good publicity for the struggling CNN, which seized on his name value and hired him to co-host a show with columnist Kathleen Parker. Parker Spitzer debuted to terrible ratings, but that’s CNN’s disgrace, not Spitzer’s.

GORDON LIGHTFOOT
When a media outlet reported that singer-songwriter Gordon Lightfoot had died, there was an outpouring of grief on blogs and Twitter. It turned out that the report was based on a hoax; when reached for comment, Lightfoot said that he was “quite surprised to hear it” and that his death had caused his music to be played much more often on the radio.

GEORGE WASHINGTON’S LIBRARY BOOK
In 1789, George Washington took out the book The Law of Nations from the New York Society Library and never returned it. In 2010, after the library confirmed the book was still missing, the caretakers of Washington’s home sent over “a copy of the same edition” to replace it. But they said nothing about paying 221 years’ worth of overdue fees.

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America's company

By Jason Kirby - Thursday, December 2, 2010 at 11:20 AM - 5 Comments

GM CEO Dan Akerson sits in a 2011 Chevy Camaro outside the New York Stock Exchange last week; GM’s collapse last year fit squarely with the narrative of America in decline | Rebecca Cook/Reuters; Mark Lennihan/AP

When Robert Mulcahy, a financial adviser in the Detroit suburb of Wyandotte, first learned General Motors planned to take itself public again, he was sure it would end badly. Many of his clients had once worked for GM or owned shares in the company before its spectacular bankruptcy and bailout last year, and even if they didn’t, their fortunes were inextricably linked to the automaker since it dominated every aspect of the region’s shattered economy. GM’s collapse, and its subsequent incarnation as “Government Motors,” spawned bitterness and resentment, leaving Mulcahy convinced local investors would never go near GM again.

Then, as GM’s stock market revival approached, all that changed. “It was absolutely the opposite of what I expected,” he says. “Most of my clients may not have bought on the IPO but they’re all sniffing it out, ready to get back in. There’s a sense of pride and excitement here that has not existed for quite a while.”

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Losing Civic pride

By Colin Campbell - Thursday, December 2, 2010 at 9:20 AM - 1 Comment

Vijay Mathur/Reuters

In 1972, Honda Motor Co. launched the Civic, a small, rust-prone hatchback that would eventually help define the company and launch it into the ranks of major global automakers. But after more than three decades that saw millions of Civics put on the road, Honda will stop selling the sedan in its home market this month as demand for the iconic car has all but dried up in Japan.

In the mid-1970s, the Civic accounted for over 70 per cent of all Honda sales in Japan, or over 175,000 vehicles annually. Last year, the company sold just 9,000 Civics as Japanese buyers turned to smaller vehicles. Despite plummeting sales in its home market, however, North American sales of the Civic—a car that now resembles more of a beefy, mid-size sedan than the original three-door econobox—remain strong. The car is still built in 13 factories around the world.

The battle of Bavaria

By Jason Kirby - Wednesday, November 17, 2010 at 3:00 PM - 2 Comments

GORAN GAJANIN/ACTION PRESS/CP

As corporate brand battles go, Coke vs. Pepsi and Nike vs. Adidas are fine for the masses, but among the amply-lucred, nothing beats the raucous showdown between Audi and BMW for the hearts, minds—and wallets—of luxury car buyers. In the past few years, the two German automakers have stepped up their ad campaigns, calling each other out in TV spots and on billboards. But after months of red-hot sales, Audi clearly has the momentum.

In almost every month this year, the company has broken its previous worldwide sales records. In Canada, Audi is leading almost every other brand so far this year in growing its sales, up 33.3 per cent to roughly 12,700 vehicles, compared to the first 10 months of last year. And thanks to the fat margins on every new A4 sedan, Q5 crossover and spaceship-like R8 sports car, Audi fuelled half of parent company Volkswagen’s profits last quarter.

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The hardest sell

By Chris Sorensen - Thursday, November 11, 2010 at 8:40 AM - 7 Comments

SUV sales in Canada are now up 20 per cent | GM; Mark Elias/Bloomberg/Getty Images

On a windswept airfield near Niagara-on-the-Lake, Ont., dozens of automotive scribes spent last week putting a new crop of 2011 vehicles through their paces as part of a consumer-oriented annual testing event. And, for the first time in years, the excitement wasn’t limited to pricey “prestige” vehicles with nameplates like Porsche, BMW and Jaguar. Instead, it was in the unassuming compact and subcompact categories—the so-called “econobox” segment that has been historically associated with puny engines, bland styling and hard plastic interiors.

After soaring gas prices and the recession exposed Detroit’s penchant for focusing on big gas guzzlers as an epic folly, the North American auto industry has been forced to get serious about the small car market and heed government demands for better fuel economy. That’s particularly the case at General Motors and Chrysler, which were bailed out with billions of taxpayer dollars.

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Running on air

By Josh Dehaas - Thursday, October 28, 2010 at 9:00 AM - 0 Comments

Anja Niedringhaus/AP

It may not have the sleek style of the Chevrolet Volt or the provenance of the Toyota Prius, but the new AirPod may have them both beat on enviro cred and price. The bug-like little three-seater, made by the Swiss company Catecar, runs on nothing but thin air. (Thin air that has been highly compressed by an electric motor, to be exact.) The car can go 200 km on a four-hour charge from a 240-volt outlet. The Volt, by comparison, only goes 64 km on a similar charge. Then it must also burn gas. Compared to mass-market hybrids and electrics, the AirPod is also astonishingly cheap. At $9,500, it will cost less than any Canadian subcompact on the market and is a fraction of the Volt’s $41,000 price tag.

The AirPod is the culmination of more than a decade of engineering and testing, but European regulators have only recently given it a green light for safety and roadworthiness. Catecar says the first 150 AirPods will roll off a Swiss assembly line in March, and a new plant will be able to produce 700 per month by 2012.

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The real mad men

By Jaime Weinman - Thursday, October 14, 2010 at 8:00 AM - 0 Comments

Getty Images

Want more proof that the U.S. auto industry is starting to recover? There are more celebrities than ever lending their voices to car commercials. Jon Hamm, the star of Mad Men, recently lent his perfect advertising-man voice to a commercial for a Mercedes-Benz hybrid vehicle, which he assured us would lead to a “cleaner, safer future.” Not to be outdone, Ford hired Hamm’s Mad Men supporting player, silver-haired John Slattery, to do a commercial for its Lincoln line of cars. Last month, General Motors announced that Tim Allen will be “the new voice of Chevrolet,” while Jeff Bridges continues to do voice-overs for Hyundai, though an arcane Academy rule forced them to pull his voice from a commercial the night he won an Oscar.

Which stars are picked for which cars? That depends on whom the company is trying to reach. Mad Men, which has a small viewership but an older and more affluent one, is perfect for selling expensive luxury vehicles. Ford marketing director Matt VanDyke told the New York Times that his company picked Slattery because he “represents the potential customer” they’re seeking—men in their 40s and 50s with a lot of money to spend. Chevrolet’s Cruze, a compact car, needs a star with broader appeal: Allen, whose voice is recognizable all over the English-speaking world thanks to Toy Story, is the perfect choice to tell us that we should spend what little money we have on a car.

What we’re not seeing much of, yet, are commercials where the actors appear in the flesh, like Ricardo Montalban selling “Corinthian leather.” Slattery is the only one of these celebrities who does his selling on-camera, wearing glasses and looking pensively at us while he drives. This may be not in spite of the fact that he’s less of a star than Hamm, Allen or Bridges, but because of it: car companies worry that people, as opposed to voices, may be too associated with their characters, whereas with Slattery, VanDyke said, “Whether you know him from Mad Men or not, it doesn’t really matter.”

Clash of the cruisers

By Chris Sorensen - Thursday, October 7, 2010 at 10:40 AM - 0 Comments

Chrysler Group LLC/ Mike Segar/Reuters/ Ford Motor Co.

For the first time in more than a decade, Dennis Simcoe won’t be able to simply pick up the phone and call Ford Motor Co. when it’s time to replace one of Edmonton’s 230 Crown Victoria police cruisers. That’s because Ford, which currently boasts 70 per cent of the North American police car market, is finally retiring the aging, tank-like police car next year, creating unease among police departments and an opportunity for competitors to step in. “It’s a very well-performing police vehicle,” says Simcoe, who oversees fleet operations for the city of Edmonton and already sounds a touch nostalgic for the Crown Victoria. “You can pound on them and they still keep ticking.”

For Ford, though, the “Crown Vic” lost its commercial appeal a long time ago. Built in St. Thomas, Ont., the car has been relegated to police and taxi fleets since 2007 after Ford decided the consumer market for big, rear-wheel-drive sedans had all but disappeared, save for a handful of Florida retirees. Even taxi companies are moving away to smaller and more fuel-efficient cars. And police departments, although important and high-profile customers, only buy about 60,000 of the roughly $30,000 vehicles a year in total—not enough to justify a dedicated assembly line.

Ford is now attempting to convince police to move to a car based on its front- and all-wheel-drive Taurus platform, as well as a sport utility vehicle, promising performance benefits that stem from modern vehicle stability systems and the improved fuel economy of a smaller but still powerful V6 engine. “We can add that advanced technology and maybe change the way people think about police cars,” says Marisa Bradley, a Ford spokesperson.

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Another bump in the road

By Jason Kirby - Thursday, September 16, 2010 at 10:40 AM - 0 Comments

Getty Images

All hangovers are bad. Delayed hangovers are diabolical. Anyone who’s woken up feeling surprisingly fine after a late night on the town, only to crumple in agony later on, knows that. Now, so too does everyone who thought the strong rebound in America’s auto sector could continue unabated.

After months of improving sales, U.S. car buyers stayed home in August. Dealers unloaded roughly 997,000 cars and trucks, down five per cent from July and a whopping 21 per cent decline from a year ago. Not since 1983 did Americans buy fewer vehicles in August. A year ago, of course, was the peak of Washington’s Cash for Clunkers stimulus plan, which saw the government offer up to US$4,500 to people who traded in gas guzzlers for new cars. And for a while the shot of adrenalin had the desired effect on the broader economy. Manufacturing levels finally began to rise, shell-shocked consumers rediscovered some of their confidence, and overall retail sales seemed to benefit.

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Dude, take my car

By Tom Henheffer - Thursday, September 9, 2010 at 11:20 AM - 0 Comments

COMMUNAUTO

If the grease spot on your driveway is perpetually growing because your car is idle 95 per cent of the time, Quebec car-sharing company Communauto wants to pay to take it off your hands. The company is in the middle of launching a pilot project it calls “peer-to-peer car sharing,” where it adds private vehicles to its fleet and reimburses drivers with about $20 each day the car is used, on top of covering their auto insurance for as long as they’re part of the service. Owners can sign up online and list which days their cars are available. Renters choose a listing in their area, and then pick up cars from owners’ driveways, returning them later refuelled. Both parties will be able to blacklist the other if one shows up or returns a vehicle late, or if a car is in bad condition or returned with damage.

If the project proves feasible, it will allow the company to expand its fleet of 1,100 vehicles without the huge costs of purchasing new cars and parking spaces. “This will be a first step in developing markets in the suburbs and less populated areas,” says Communauto CEO Benoît Robert. Most car-sharing companies, which have become increasingly popular in big cities in recent years, have yet to break into those potentially lucrative regions.

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