All Entries in the "Auto News" Category
Do Auto Execs Make Too Much Money?
When Ford CEO Alan Mulally was granted $56 million in stock bonuses about a month ago, UAW President Bob King was quoted as saying “I don’t think any human being deserves that kind of money.” Whether you agree or disagree with Bob King’s statement, his sentiments tap into a fairly popular belief in modern America. Many people question the compensation of the average corporate executive, and trends in executive pay indicate that the phenomenon is more prominent than ever…the average Fortune 500 CEO earned 343 times the amount that an average worker earned in 2010.
The question of executive pay in the auto industry is especially important today, as the UAW is eager to negotiate a new contract to replace the one that expires later this year. While automakers want workers to accept profit-sharing bonuses in place of pay raises, the UAW says cutting executive pay would save enough money to give workers a pay raise.
Which side is right? Should workers be happy with a bonus tied to profits while executives earn millions?
Ford FINALLY Expands F150 Airbag Recall, But Where’s The Fine?
In February, Ford announced an F150 recall pertaining to spontaneously exploding airbags. This recall was significant because:
- NHTSA instructed Ford to recall approximately 1.5 million trucks for this problem
- Ford decided to ignore the government and recall just 150k trucks instead
- Now, two months later, Ford has finally followed NHTSA instructions and recalled 1.5 million F150s
Of course, I cried foul when Ford ignored the government recall recommendation. How could Ford blatantly disregard NHTSA safety instructions? What’s more, how could Ford ignore a government safety mandate without risking a media firestorm and a massive NHTSA fine?
Yet Ford Motor Company somehow managed to ignore a NHTSA two months ago – and then flip-flop – without any sort of outcry. Be it political influence or just plain ignorance, something stinks at NHTSA.
Tailgate Theft – A Growing Concern, and How You Can Protect Yourself
Is there anyone lower on the evolutionary chain than car and truck thieves? How about the lowlifes who steal your pickup’s tailgate right out of your driveway while you are sleeping at night?
That’s right – the latest trend in oddball vehicle component theft, after the recent run on catalytic converters (stolen for the small amounts of precious metals they contain), are tailgates. A recent report in The Detroit News chronicles the growing scourge of this type of theft that targets not just individual owners but also dealerships whose inventories contain hundreds of trucks.
Japanese Earthquake + 2008 Auto Crisis = Perfect Storm For Parts Shortages
As Japan continues to grapple with a tremendous natural disaster, the global auto industry is beginning to comprehend the impact that Japan’s crisis will have on production. Nearly every automaker on the planet – regardless of where they headquarter themselves – is beginning to learn of parts shortages caused by the quake in Japan. Some examples include:
- Chevy Colorado/GMC Canyon – Stopped production due to a (rumored) transmission shortage
- Ford F150 – Asked dealers to stop ordering black or red trucks because they’re likely to run out of a special paint pigment sourced from Japan (full story from Detroit News)
- Honda – Nearly Honda’s entire product line is effected in one way or another. They may be the hardest hit of all Japanese manufacturers.
- Hybrids of all kinds – Most hybrid vehicles use batteries, transmissions, controllers, or important electronics that are built in Japan
- Nissan – Some V6 models will be in short supply as one of Nissan’s most important engine plants has been heavily damaged
- Subaru – The Forester and Impreza will both likely be in short supply this summer.
- Toyota – As we detailed previously, the Prius, Scion xD, and Yaris will be the hardest hit, and most of the Lexus line will suffer as well.
According to Automotive News, there will also be a general shortage of microchips and circuit-board level components for the next few months in all industries as Japanese electronics manufacturers get back on their feet. While these shortages are likely to be temporary, it’s probable that the North American automotive market won’t grow quite as fast as it could have this year.
As most media outlets focus on Japan’s crisis and it’s impact on the global automotive supply chain, it’s important to recognize that GM and Chrysler are partially responsible for the current shortages (at least indirectly).
2011 F150 Scores Only 3 Stars In Government Safety Tests
Last week we published a comprehensive table of 2011 pickup truck crash test ratings, and today we’ve got updated crash test results from the National Highway and Transportation Safety Administration (NHTSA) website detailing the crash test results of the Ford F-150.
NHTSA government crash tests gave the 2011 Ford F-150 three stars in frontal crash tests. Click to see the full details.
While the 2011 F150 scored an overall crash test rating of 4 stars, the F-150 only scored 3 stars in frontal impacts, making it the second worst truck in terms of frontal impact safety among products for Chevy/GMC, Toyota, and Ram. Only the Ram 1500 scored worse – a paltry 2 stars. Fortunately for Ford, their strong performance in IIHS crash test studies seems to indicate that, overall, the F150 is comparably safe to the Tundra as well as trucks for Chevy and GMC.
Ford's 2011 F-150 crash test results rate it behind both the Tundra and the Chevy/GMC 1500 pickups.
Still, technically speaking, the F150 did not perform as well as the Tundra in the NHTSA tests the F150 had a lower front impact score, but as noted by Tim in the comments, the F150 did slightly better than the Tundra in a couple of ways (albeit small ways)…so the performance is likely closer to “equal” between the Tundra and the F150 than it is towards the Tundra.
