Recalling General Motors’ Middle Eastern misadventures.
The title of this tale is a Middle Eastern proverb, somewhat similar to our adage ‘Buyer beware’, but it expands on this in the sense that it also cautions sellers to keep an eye on proceedings at all times. On two separate occasions involving different Middle East countries, General Motors found to its cost what can happen if this advice is not heeded, dragging it into controversy and a hostile environment when the political winds changed direction.
A trade dispute between Japan and Iraq was the improbable cause of trouble for GM Canada. In 1980, Toyota was the number-one selling car in Iraq, and had been for some years. That same year, the Japanese manufacturer initiated talks with Ford about a possible joint venture. The fact that Ford operated an important assembly plant in Israel, however, did not go down well with the Iraqis, who in consequence started looking for a different supplier for the country’s official cars and taxi cabs. Continue reading “Open One Eye when you Sell, and Both Eyes when you Buy”
Saturn was General Motors’ response to the Japanese invasion of the US auto market.
The Japanese automakers’ penetration of the US market gathered momentum throughout the 1970s and ‘80s. By 1990, this was a major cause for concern, not just in Detroit, but also in Washington DC, where politicians observed the country’s ballooning trade deficit with alarm. The problem was exacerbated by the behaviour of the US automakers themselves, who were sourcing an increasing proportion of their vehicle parts from Japan.
In 1990, the US-Japan bilateral trade deficit in vehicles and automotive parts was $31.1 billion(1). This represented 28% of the total US trade deficit, and 76% of the country’s bilateral trade deficit with Japan. The deficit in vehicles was $20.6 billion, barely increased on the $19.7 billion deficit seen in 1985. The deficit in automotive parts, however, had more than doubled over the same period, from $4.4 billion to $10.5 billion.
As the Corvette became a more serious proposition after the commercially successful but softer by the year C3 Stingray, its publicity material followed suit…
When introduced for the 1968 model year, the voluptuous Corvette Stingray did not meet with the universal praise from the press that GM had hoped for. Of course, the C3 had big shoes to fill after its much loved predecessor, but embarrassing initial quality glitches as well as a perceived of loss of focus as far as the sportscar aspect was concerned did not help its plight either.
The buying public thought otherwise however, and as the seventies unfolded sales of the C3 actually went up year-on-year culminating in its best sales performance (for this particular model) in 1979. Nevertheless, those responsible for all things Corvette within Chevrolet division decided to Continue reading “Blowing Up the Mould”
Philibert Le Roy is credited with turning a backwater shooting lodge into a chateau fit for a king. Then, through a succession of architects along with an army of builders, the Sun King’s dream of the most opulent palace was made real. From small beginnings to a lavish labyrinth, the Palace of Versailles has borne witness to history.
Metaphorically and literally distanced from such overt flourishes lies an altogether different theatre of dreams. A place that too has borne change, seen careers grow to unprecedented heights, scarred many by its inner machinations and created millions of objects idolised the world over. Enter architect, Eero Saarinen (1910-61), creative inspiration for the somewhat bland sounding 1956 GM Technical Center in Warren, Michigan.
The lesser-known RK Bodyworks, based in Albany, New York was commissioned by a certain Carl Szembrot to convert this 1952 Studebaker into a LeSabre-lookalike. The top of the three taillights adorning each fin was a blue directional signal, the middle one a red stop light and the bottom one a white reversing light. The bullet nose and trim from the Studebaker were cleverly re-used to Continue reading “En Garde! Part Two”
We conclude our account of the life and career of John Zachary DeLorean.
The DeLorean Motor Company was, from January 1982, under the control of the receivers. Their job, in the first instance, is to see if a buyer can be found for the company. If none is forthcoming, they are required to dispose of the company’s assets in an orderly manner and raise as much money as possible to repay creditors in order of seniority, either fully or, more usually, in part (cents on the dollar). There is rarely anything left over for shareholders after this is done.
DeLorean’s biggest asset was its large inventory of unsold cars, which was increasing as production continued into the spring of 1982. Deep discounts offered on 1981 stock and exhortations to dealers to buy inventory failed meaningfully to improve the situation, and production at Dunmurry was halted in May 1982.
DMC filed for bankruptcy in October, although a skeleton staff completed around 100 partially built cars before the year end. Consolidated International, a US company based in Columbus, Ohio, acquired the remaining stock from the liquidators at a deep discount and attempted to Continue reading “Hero or Villain? (Part Three)”
We continue the story of John Z DeLorean and remember the car that carried his name on the fortieth anniversary of its launch.
The 1970’s was a truly miserable decade for the whole of Ireland. A sectarian conflict that had simmered in Northern Ireland since the island was partitioned in 1921 had exploded into violence and bloodshed in 1968. This unrest continued throughout the following decade, with bombings, assassinations and other terrorist atrocities perpetrated by paramilitary groups on both sides of the political and religious divide.
Daniel O’Callaghan’s digest of Bob Lutz’s 2011 book, ‘Car Guys vs Bean Counters’. In this concluding part, GM hits the buffers and goes cap in hand to the US Government.
At the start of 2008, the outlook appeared quite promising for GM. Its more recent models had been well received and the company had won North American Car of the Year for 2007 and 2008 with the Saturn Aura and Chevrolet Malibu. The company had agreed with the UAW a new wage deal and a plan to move the worker healthcare liabilities off the GM balance sheet and into a new fund that GM would set up, but would Continue reading “The Fate of Empires and Search For Survival (Part Five)”
When it came to translation a car design sketch into a tangible object, craftsmanship and even cultural background used to be of the utmost importance.
As described earlier on, the technique and style any car designer chooses to depict his ideas is highly informative.
Back in the golden era of the Italian carrozzieri, however, this did not matter as much, as most of the legendary Italian car designers didn’t much care for impressive illustrations. Viewing the sketches of the likes of Leonardo Fioravanti, Marcello Gandini or Aldo Brovarone from today’s perspective, their artistic qualities appear rather naïve, to put it mildly. Continue reading “Adding Dimensions (II)”
Another future postponed. Today we look at an engine technology from the early 1990’s which, for a short time at least, looked like a certainty.
Where do ideas go to die? Are blueprints simply rolled up and secreted away, to be dusted off by historians in decades hence or are there engineers in a quiet workshop somewhere in Australia (or Toyota City) still burning with religious fervour for what now appears to have been something of a lost cause?
Founded by engineer, Ralph Sarich, the Orbital Engine Corporation was based in Perth and during the early 1990’s attracted the interest of a number of big name manufacturers for a clever reworking of the time-honoured but somewhat flawed two-stroke engine design. For a short period of time, it sounded tantalisingly like Continue reading “Stroke of Fortune”
I know very little about the history of European automotive engines. Were I to spend five months finding out about the topic, this is how I would organise the information…
First, I would outline the principles of petrol engine design: thermodynamics, fluid dynamics and on to cylinder count, cylinder arrangement, displacement, cam design and further on. But I can’t cover it all so I would define a period to cover, say 1955 to 1995 (which is the most interesting for me). Next I would try to Continue reading “Leaping Sideways Into the Morning”
Some unlikely things turn up on the streets of my home territory, but I never expected to see a Holden WH Statesman 17,000km from Fishermans’ Bend.
It’s not even the most Brougham of the series, the bodily and mechanically similar Caprice topped it for equipment and ornamentation.
The reader will have quickly worked out that it is related to the Omega B and Cadillac Catarrh, but with a widened body and track. Unlike the German cousins, it was never blighted by the troublesome Merseyside-built 54 degree V6. A quick check of the DVLA Vehicle Enquiry website reveals that it has 300bhp from its gutsy 5667cc New Generation III V8. Continue reading “A Brougham Holden That’s Not a Holden Brougham”
It’s been confirmed the next Opel Senator will be a crossover – as indeed it appears will everything else. Are we approaching a tipping point?
When GM showed the Avenirconcept earlier this year, many viewed it as a sign Buick was serious about re-entering the full-sized luxury saloon market with something along more traditional lines. For enthusiasts here in Europe it prompted speculation as to the potential for a similarly proportioned model – a latter day Opel Senator if you will. Continue reading “Sign of the Cross”
Marchionne’s Merger Mania Examined – Again. Where Driven to Write leads, the mainstream press follow: Autocar finally gets around to examining the Marchionne plan.
Quis custodiet ipsos custodes. Recently, one of our readers took us to task over our coverage of FCA’s latest product plans, suggesting we were being unduly negative about them and about FCA’s knitwear enthusiast-in-chief. It’s easy to see why, but at least we have been applying our critical faculties to the subject – something that has (up to now) been conspicuously absent in the mainstream automotive media. Continue reading “Mega-Size Me”
Has FCA’s on-off romance with GM entered a new phase?
Last week two seemingly unrelated news items landed, which taken on face value elicited only mild interest. But to a cut-price Max Warburton such as myself, the two stories add up to something a good deal more intriguing. Continue reading “There’s Something About Mary”
At the 2008 Geneva Motor Show, Saab presented a concept that perfectly encapsulated the future direction the marque needed to take. Given the multitude of factors massed against it, its non-adoption was perhaps inevitable, but that didn’t stop enthusiasts howling in frustration and thwarted desire. Derived from earlier 9X concepts, the C-sector 9X BioHybrid concept not only looked fantastic, but also successfully imagined Saab’s entry into a sector that should have proven both lucrative and sustainable – hybrid technology or no. Continue reading “Concepts: Saab 9X BioHybrid”