Green Car of the Year finalists

October 30, 2007

Nissan Altima HybridThe L.A. Auto Show has named its five finalists for the Green Car of the Year Award established by Green Car Journal:

  • Chevrolet Malibu Hybrid
  • Chevrolet Tahoe Hybrid
  • Mazda Tribute Hybrid
  • Nissan Altima Hybrid
  • Saturn Aura Hybrid

"The fact that all five Green Car of the Year nominees are hybrids this year is a clear indication that the auto industry’s significant investment of time and resources into gasoline-electric hybrid technology is paying off," said Ron Cogan, editor and publisher of the Green Car Journal.

"Hybrids were not a specific focus during our nomination process. There are many pathways to achieving efficiency and emissions goals, and hybrids, while popular, represent just one of these."

Among the jurors: Carl Pope, executive director of the Sierra Club; Christopher Flavin, president of Worldwatch Institute; Jean-Michel Cousteau, president of Ocean Futures Society; and Jonathan Lash, President of the World Resources Institute.

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Best commercial ever: Honda cog

October 29, 2007

Honda cog commercial, best commercial everI’m no fan of TV commercials, but in my humble opinion there’s one that stands head and shoulders above the rest (along with Apple’s "1984", my second favorite), and that’s the Honda "cog" commercial they made in 2003 for the Accord.

Basically, the star is a "Rube Goldberg machine" (a very complex apparatus that does a simple task in an indirect and very convoluted way) made out of countless car parts.

If you’ve seen it you’ll appreciate (or maybe won’t believe) that no CGI trickery was used. And it took over 600 takes to complete!

And the final tagline is just perfect "Isn’t it nice when things just work?")

If you’ve never seen it, it’s definitely a must-see… you can watch it here in very good quality , or in low quality at Google video.

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Talk about overpaying!

October 26, 2007
Brooklyn bridgeWhat if you bought something "in a flurry of excitement", only to learn a few months later that you had overpaid by almost 100%. Ouch, right?

What if that something cost you $2.6 billion dollars?

That’s what eBay is saying regarding their 2005 purchase of Internet telephony company Skype. They’ve now written down the value of Skype by $900 million, and they’re setting aside $530 million towards future obligations with Skype shareholders.

Add that up for a total of $1.43 billion dollars.

Despite Skype’s worldwide success, these are the problems cited: lower than expected revenue, outages, and the habitual crackling lines and time delays.

The fallout… Skype’s founder, Niklas Zennstrom, is stepping down as Skype’s CEO; no permanent successor has been named yet. Bonuses to the ex-CEO and others have been cut by 60 percent. And they’re telling shareholders that they valued Skype too highly when they bought it.

Says eBay,

“Skype has not performed as well as we would have hoped. And we are disappointed about the impairment charge. But we still believe Skype to be an extremely valuable asset.”

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Renault-Nissan still wants U.S. partner

October 24, 2007

Carlos Ghosn CEOLast year there were talks of a possible alliance between current partners Renault-Nissan and General Motors, but nothing came of that.

But the flame looks to still alive… Carlos Ghosn, CEO of Renault and Nissan, recently stated at a Nikkei automotive conference that “if I have the opportunity to make it happen, I will do it.”

Ghosn also said that the Renault-Nissan alliance is “the only automotive alliance which works… when something works, you have a tendency to want to expand it.”

So reports Automotive News.

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Top automakers in China

October 23, 2007

Shanghai Volkswagen plantWho are the top automakers in China?

As you may know, all of the major manufacturers have joint ventures with local Chinese car companies, with varying results.

Currently, the big winners are Volkswagen on the foreign side, and Shanghai Auto on the local side. Both have stakes in two of the top three performers in China. Of note is Chery, the only Chinese car company to make the list as an independent automaker, i.e. without a joint venture.

Here are the top eight, based on August 2007 passenger car sales as reported by the National Passenger Cars Association:

  1. Shanghai Volkswagen, 42,518 units
  2. FAW-Volkswagen, 42,460 units (FAW is First Auto Works)
  3. Shanghai General Motors, 39,662 units
  4. FAW Toyota, 27,500 units
  5. Chery Automobile, 26,446 units
  6. Dongfeng Nissan, 24,712 units
  7. Guangzhou Honda, 20,626 units
  8. Beijing Hyundai, 17,414 units

Shanghai Volkswagen logoThe top three are on track to become the top sellers for the entire year, all reaching the 400,000 to 500,000 mark.

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Service improvements (Part 2): Key indicators

October 18, 2007

Here’s part two of a conversation I recently had with expert Peter Daniel of ADC-Automotive Dealer Consulting about the importance of the Service Advisor, and key indicators to measure his/her performance.

In the first part of the interview, Peter and I talked about the key indicators for measuring service shop sales, and we went into detail regarding Hours per Repair Order.

Today we’ll discuss other indicators that can tell us if the Service Advisor is doing a good job

ADC, a consultancy with offices in the U.S. and in Puerto Rico, provides consulting and training services to auto manufactures and dealers, focusing mainly on process and profit improvement for service, parts and body shops.

Peter Daniel: There are other factors that could be underlying or behind the scenes…

Crowd in storeIt can be an indicator that maybe there are process and procedures problems.

For example, maybe there are ten customers that show up at one time at 7:30 in the morning and there’s only one Advisor there. So you can imagine what would happen, the Advisor is more like an order taker than really being a Service Advisor or service consultant, as we like to call them sometimes.

So what would happen in that instance, the dealer would not be staffed correctly at the peak times of their business, so therefore the Service Advisor really can’t be at fault because he really has not been provided the process and procedure support to really do his job and do a correct sales presentation, consulting with the customer on their maintenance needs or their repair needs.

I think another factor when you look at Hours per Repair Order, if they are low, if they are under 2 hours per repair order, could be a lack of selling tools.

I think the two main tools any Advisor in any country needs to have is a printed maintenance schedule according to what the factory requirements are for severe service.

Besides that printed maintenance schedule they should also be using what’s called an inspection form, whether it is a 20 point, or 25 point, or 15 point general visual inspection that would be performed on every vehicle that comes in the shop free of charge for each customer.

And these two tools used by the Advisor, presenting the maintenance menu at time of write up and the technicians performing a visual inspection of these 20 items in the shop, give the customer a chance to buy, and this also informs the customer of the condition of the car, it gives the customer an opportunity to get it repaired while the vehicle is in the shop.

What we find is probably, and I hate to use numbers, but I’m going to say that probably nine out of ten dealers in the world do not have this combination of a correct printed maintenance schedule along with an inspection form.

Al McClymont: 90%, that’s a terribly high number.

Peter Daniel: You know, everybody I think in every position, as well as your company and ours, we all have a benchmark or job expectations, job requirements. So the Service Advisor certainly is the key issue and I think in numbers it is great to say 2 hours per repair order but I think every dealer has to look at the big picture.

(to be continued…)

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Top 10 countries for doing business

October 16, 2007

Coconut cream pieThe Doing Business project is a World Bank initiative that publishes a yearly ranking of the best countries to do business in. They also report what regions and countries have implemented the most business-friendly reforms.

As the Financial Times bluntly points out,

"… poor countries tend to stifle their economies with impossibly burdensome regulations, while most rich countries let entrepreneurs start businesses, buy and sell property, and ship goods through customs. In Brazil, it takes 152 days to satisfy the authorities that you are fit to establish and register a legal business. That process takes just two days in Australia; and yet somehow, despite this indecent haste, the fabric of Australian society has not yet fallen apart.

"… It is a shame that more governments in poor countries cannot find the time to snip a few strands of red tape. Workable regulations will not alone produce wealth, but they certainly help. And unlike building new roads or extending an electricity grid, simplifying regulations is cheap."

The best country in this year’s study? Singapore. The worst? The Democratic Republic of Congo.

Here are the top ten countries in which to do business:

  1. SingaporeSingapore

  2. New Zealand

  3. United States

  4. Hong Kong, China

  5. Denmark

  6. United Kingdom

  7. Canada

  8. Ireland

  9. Australia

  10. Iceland

The best overall region for doing business is Eastern Europe & Central Asia.

And here are the top ten reformers, those countries that are making the greatest effort to make it easier to do business:

  1. EgyptEgypt sphinx great pyramid
  2. Croatia
  3. Ghana
  4. FYR Macedonia
  5. Georgia
  6. Colombia
  7. Saudi Arabia
  8. Kenya
  9. China
  10. Bulgaria

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Best movies: September 2007

October 12, 2007

Some great movies this past month… here they are in order of preference…

Book of the month: Thunderstruck (Erik Larson)

CD of the month: Haunted (Poe)

Disappointing movie of the month: Premonition.

Other Best Movie posts:

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China to invade Detroit

October 10, 2007

LA Auto Show preview

October 8, 2007

The 2007 Los Angeles Auto Show is coming up, and we’ve just received some interesting preview information that I’d like to share.

The event will be held November 16 through 25, and will include some 14 world debuts and 30 North American debuts.

A few manufacturers have already announced their intentions:

  • Hyundai will world premiere a new sports car concept
  • Nissan will showcase an all-new, mid-size Murano crossover
  • Volkswagen will show a new mini-car concept design. 

Several manufactuers will be highlighting vehicles that are making their first appearance in the U.S.:

In addition, these are the luxury cars making their debut in the U.S.:

The show will also have a special award for their "Green Car of the Year".

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