Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/%SiteURL%/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/12/22/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/22/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/22/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under:

BIG THREE BAILOUT: NOW THE HARD BARGAINING BEGINS

The good news for the Detroit automakers is that they finally got part of the bridge loan they so desperately need. But if they thought getting the money was hard, now the hard part really begins.

General Motors and Chrysler face the tough task of having to bargain with all the stakeholders who must make sacrifices if these companies are going to truly restructure. And while they all may agree in principle that they have to give something up, they are going to fight like Hell to make sure everyone else gives up more than they do.

The problem with a bargaining situation like this is that if you have just one holdout the whole deal can fall apart. All it takes is one creditor to say that they want their bill paid in full, instead of taking something less than that, and then no one else will be willing to make any sacrifice.

And make no mistake about it, everyone's going to have to sacrifice: management, labor, creditors, bondholders, shareholders, dealers, and suppliers. It's going to be painful for everyone involved, but that's what it's going to take to save these two corporations.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Mon, 22 Dec 2008 19:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Mon, 22 Dec 2008 19:32:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/12/12/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/12/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/12/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under: ,

DETROIT AND OUR NATIONAL DEFENSE

In all this debate about whether we should provide the Big Three with a bridge loan, not enough attention has been devoted to their impact on our national defense. I'd hate to see this country ever get involved in a total global war again, but I especially shudder to think it might happen without the manufacturing capability that General Motors, Ford and Chrysler provide to the United States.

Some people say the Detroit 3 no longer play much of a role in making armaments for the American military. And that's true. But then again, except in time of war, they never have.

Prior to World War I, American automakers were way more interested in making cars for a booming market than they were in diverting resources to military matters. But after the United States entered the war they became intricately involved in the effort.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 12 Dec 2008 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>autoline detroitautoline on autoblogautoline-detroitAutolineDetroitAutolineOnAutoblogbailoutdetroit 3Detroit3featuredjohn mcelroyJohnMcelroymanufacturingFri, 12 Dec 2008 15:00:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/12/04/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/04/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/12/04/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under: ,

FORD REPORT: DIESEL VS. HCCI VS. STRATIFIED CHARGE

To hear Ford's CTO tell it, all these painful layoffs and budget cuts going on at the company can actually be beneficial. "It gets you really focused on what's really necessary," says Gerhard Schmidt, the Chief Technology Officer at Ford.

Ford now evaluates its R&D efforts by comparing the money it spends to the percentage of fuel economy improvements it gets. "This makes you structure your portfolio for what's really key, not just what's interesting to explore," he says.

So Ford is taking a very safe, but very sound approach to the technology it's developing. And its goal is to make that technology affordable for the masses. "Henry Ford didn't invent the combustion engine," says Schmidt, "but he made it available to everybody."

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 04 Dec 2008 12:32:00 EST. Please see our terms for use of feeds.

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Why I Still Support Those Boneheads at the Big Three

What a week it was. Or maybe I should say, I can't believe how weak it was.

The CEOs of the Big Three and the president of the UAW showed up in Washington last Tuesday to plead their case for a bailout. But by Thursday they had managed to turn most the country against them. Even their most ardent supporters were at their wits end.

In short, their testimony was a disaster. They hemmed and hawed. They mumbled and stumbled. They skirted the questions. And even when we did learn some interesting facts and figures, the Senators at the hearing had to pry it out of them with crow bars.

Worse yet, they exhibited zero leadership, no salesmanship, and were completely unpersuasive. No wonder they can't sell cars. These guys couldn't give away free ice cream cones to a kindergarten class.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Tue, 25 Nov 2008 14:28:00 EST. Please see our terms for use of feeds.

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How The Big Three Will Come Roaring Back

Way back in 1979 when Chrysler needed government help, there was a political cartoon that perfectly captured the situation. If featured an old Plymouth Fury with giant tail fins teetering halfway over a cliff, with a tow truck parked nearby. A bystander wearing a shirt labeled U.S. Taxpayer was staring at the car on the cliff. The tow truck driver was nonchalantly picking his teeth and telling the taxpayer, "I can tow it out, or push it over the cliff, but either way it's going to cost you."

And so here we are again, only this time it's not just Chrysler. Now GM and Ford need to get towed back onto solid ground, too. And while there are plenty of people saying, "Let them die," the reality is that it'll be cheaper to bail them out.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 14 Nov 2008 19:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Fri, 14 Nov 2008 19:27:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/11/07/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/11/07/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/11/07/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under: , ,

GM IS ON ITS LAST LEGS

There is only one number that really matters in today's financial report from General Motors: how much cash it has in the kitty. And the answer is, not enough. GM is now burning through its cash reserves at a rate that will run short before Christmas.

Every month GM spends $13 billion to pay all the bills that keep the company running. And it has to pay out even more on top of that to meet other obligations, like paying the UAW for the VEBA or bailing out Delphi. Like all other companies, GM keeps a reserve of cash on hand that it can dip into when it doesn't sell enough new cars to get the money to pay its bills. But that cash reserve is running out fast.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 07 Nov 2008 16:30:00 EST. Please see our terms for use of feeds.

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WHAT IF GM COLLAPSES?

Anyone watching the auto industry these days is acutely aware that General Motors is hurtling towards disaster. It's burning through cash reserves at a rate that will put it in Chapter 11 sometime next year, no matter how much management says "that's not an option." It's still being crushed by its legacy costs, yes, even after concessions from the UAW. And it just witnessed its own finance arm, GMAC, essentially pull out of the automotive lending business.

What was an emergency just a month ago has now blossomed into a full blown crisis. Unless something is done quickly, General Motors could collapse.

This is why we're hearing talks of a potential GM-Chrysler merger, and of a bailout from the Federal Government.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 30 Oct 2008 16:58:00 EST. Please see our terms for use of feeds.

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QUALITY PROBLEMS WITH QUALITY RATINGS

Pity the poor car buyer who wants to be a smart consumer and reads all the quality studies before going to the showroom. How do you know what to believe?

For example, Consumer Reports' Reliability Survey gives props to the Scion xD. But Strategic Vision's Total Quality Award gives props to the Scion xB. And J.D. Power puts Scion near the bottom of the list of its Vehicle Dependability Survey. Who do you believe?

The problem is that these studies all measure different aspects of quality. Unfortunately, the mass media doesn't have time to delve into these distinctions and so all we get is their sound-bite analysis. Their favorite is that the Detroit Three are lagging behind the "foreign automakers" in quality.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 24 Oct 2008 13:28:00 EST. Please see our terms for use of feeds.

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GM-CHRYSLER, WHAT ARE THEY THINKING?

The headlines say General Motors is feverishly putting a plan together to take over Chrysler. From my standpoint, only two theories can explain why this is happening. Either the billionaire boys from Cerberus have a master plan to revamp the American auto industry, or they are in so far over their heads that they don't know what they're doing. More on that in a minute.

If GM does take over Chrysler, then Walter P. Chrysler will be turning in his grave. After all, Walter P. quit GM back in 1919 because he didn't like the direction in which the company was going, and later went on to start the company that still bears his name.

A takeover of Chrysler will be the kiss of death for the company. The only way GM can justify taking it over will be to take an axe to its operations. You think Chrysler has shriveled to a shadow of its former self over the last two years? You ain't seen nothin' yet.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 17 Oct 2008 14:16:00 EST. Please see our terms for use of feeds.

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Chrysler's EVs are for real

When Chrysler rolled out three electric vehicle prototypes a couple of weeks ago most EV experts were skeptical. They were even more skeptical when the company claimed that it would have an EV on sale by 2010. Wait a minute, everyone wondered, how could Chrysler have caught up with GM, Nissan and other automakers who have been working on EV's for a lot longer?

Well, to hear Chrysler tell it, it's not behind at all. It is the first major automaker to actually allow members of the media and dealers to drive its production-intent EV's. The company claims it's been working on EV's for at least two and a half years-or about the same time as the other major OEM's. Its effort came out of the fuel cell program it was working on with Mercedes, back in the good 'ole DCX days. They merely pulled the fuel cell out and dropped in a battery pack.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 10 Oct 2008 18:58:00 EST. Please see our terms for use of feeds.

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I'M LOSING MY BET ON DIESELS

A few years back I made a bet with a former Director of Engineering at General Motors. I bet him five bucks that Americans would fall in love with modern diesel engines and would want them in their cars. Specifically, I predicted that diesel sales in passenger cars would reach 1 million units by 2012. He bet it wouldn't happen.

Last year I ran into him and he ruefully conceded he was probably going to lose the bet. But that was last year. Now I'm pretty sure I'm the one who's going to lose. What a difference a year makes!

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 02 Oct 2008 16:29:00 EST. Please see our terms for use of feeds.

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HOW TO KICK OUR (IMPORTED) OIL HABIT

There's a lot of talk about making the U.S. energy independent. Or getting off oil altogether. I guess anyone who believes it can easily be done has never taken the time to count how many millions of barrels of oil we import every day. Damn do we use a lot of oil!

Some say the country is in trouble because we don't have an energy policy. That's not true. We do have a policy. It doesn't have a grandiose name attached to it, but for decades now, with strong bi-partisan support, the U.S. has maintained very low gasoline taxes, has legislated cleaner fuels (which yields less fuel), and has put strict limits on drilling.

We seem to be saying that we don't want to use oil, but since we don't want to hurt the "little guy," we'll keep it as cheap as possible.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 25 Sep 2008 17:29:00 EST. Please see our terms for use of feeds.

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HOW FORD WILL SAVE MERCURY

When Alan Mulally came to the Ford Motor Company two years ago he finally forced the company to face reality. It wasn't going to go anywhere, he told his executive team, unless it put all its resources into resuscitating the Ford brand on a global basis.

So Jaguar and Land Rover were given the heave-ho, and Volvo was put "under review." The decision was made to let Mercury slowly die, and Lincoln's turn-around was put on the back burner until the Ford brand revived.

But as the company formulated its turn-around plan, it slowly dawned on everyone involved that there was a real opportunity to save Mercury. They figured out a way to give the brand a unique line-up of vehicles without breaking the bank. So in April of this year they took their ideas to Mulally, and after extensive studies they got the go-ahead in June to save it.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Sat, 20 Sep 2008 18:29:00 EST. Please see our terms for use of feeds.

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HAVE I BEEN TOO HARSH ON CHRYSLER?

Chrysler has been harshly criticized by analysts and the media. And with good reason. It's lost a ton of sales and market share. It had to bail out of leasing when its residuals plummeted. It came up $6 billion short trying to renew its credit lines. And its debt rating is pure junk.

Ever since Cerberus took Chrysler private they've only doled out dribs and drabs of information about the company. So analysts and reporters (including me!) rushed in to fill the vacuum, mostly with negative news. That woke the company up to the fact that it better start communicating with the outside world.

And that landed me an interview for Autoline with Tom LaSorda, the vice chairman of the company, who offered up a lot more information than I ever expected.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 28 Aug 2008 18:58:00 EST. Please see our terms for use of feeds.

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THE DOWN SIDE TO LITHIUM BATTERIES

John McElroyUh-oh. In the pell-mell race to develop lithium-ion batteries for plug-ins, EV's and hybrids, has any automaker taken a hard look at where all that lithium is going to come from? Guess what? Not only are global lithium supplies pretty tight, prices are about to skyrocket.

Today, the United States imports almost all of its lithium. We get most of it from Chile, then Argentina, and a little bit from Canada and Zimbabwe. The only producer in America is actually a German company, Metallgesellschaft, which has a mine in Nevada. Yet, even though we import most of our lithium, the United States is the world's largest processor of the material.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Sun, 24 Aug 2008 12:31:00 EST. Please see our terms for use of feeds.

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SIX QUARTERS TO DOOMSDAY

2010 is shaping up to be a pivotal year in the American auto industry. From a product standpoint there will be a lot of interesting hardware in showrooms, including range-extending EVs, plug-in hybrids, clean diesels, pure electrics, and flex-fuel vehicles running on cellulosic ethanol. But it's also shaping up to be the year when the domestic industry will have to deal with its greatest challenge ever.

In short, the "Big Three" are running out of money, and running out fast. At its present spending rate, General Motors will burn through almost all the cash it has in the next 6 quarters. Ford can hold out a little bit longer. And Chrysler? Well, who the hell knows what's going on there?

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 07 Aug 2008 16:28:00 EST. Please see our terms for use of feeds.

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TELL THE FEDS TO FREEZE THE REGS!

Every day Chrysler LLC builds Euro-spec versions of the Chrysler 300 at its assembly plant in Canada, bolts a V6 diesel engine into most of them, and ships them off to Europe. That diesel 300 gets better fuel economy, over 30 mpg, than all the other vehicles in Chrysler's U.S. showrooms. But it's against the law for Chrysler to sell that car in America.

Right now Ford and General Motors are trying to figure out how to bring many of their fuel-efficient European models to the U.S. and manufacture them here. They'd love to do it immediately, but it will take them several years to modify, test and validate those designs before they can meet U.S. regulations. Until they do, it's illegal to sell those cars in America.

Anybody else out there agree with me that this is crazy? Let's let automakers bring their fuel efficient European cars over here immediately. As long as a car meets the Euro 5 emission regulations and the latest European NCAP safety standards, we ought to let them build those vehicles in the U.S. with no other modifications.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Thu, 31 Jul 2008 15:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>autolineautoline detroitautoline on autoblogautoline-detroitAutolineDetroitAutolineOnAutoblogfeaturedjohn mcelroyJohnMcelroyThu, 31 Jul 2008 15:58:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/07/28/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/07/28/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/07/28/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under:

THE AMAZING SHRINKING CAR MARKET

As car sales continue to spiral downward, some product planners in the industry are beginning to ask the unthinkable: is the American car market going to shrink permanently?

They are starting to consider the possibility that the days of selling 17 million new vehicles every year are over, and that going forward the American auto market is going to be smaller.

There are a number of reasons why product planners are beginning to contemplate this possibility, but the two biggest causes are the high cost of oil and the skyrocketing costs of regulations. Amazingly, even though raw material costs are soaring at rates never seen in a century, the car companies say that pales in comparison to cost pressures they're grappling with due to CAFE, the California CO2 standard, and upcoming safety standards.

Whatever the cause, if, and I emphasize if, the U.S. car market is indeed going to be smaller in the future, that would have a drastic and painful impact on the manufacturing base in the country.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Mon, 28 Jul 2008 12:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>autolineautoline detroitautoline on autoblogautoline-detroitautolinedetroitAutolineOnAutoblogfeaturedjohn mcelroyJohnMcelroyMon, 28 Jul 2008 12:33:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/07/11/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/07/11/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/07/11/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under:

My Bone To Pick With T. Boone Pickens

Billionaire oil tycoon T. Boone Pickens rocked the automotive and energy industries this week with a bold plan to drastically reduce America's dependence on imported oil. His plan, in case you missed it, is to build massive wind farms to produce electricity, and to stop making electricity from natural gas. Then he wants to divert that natural gas to be used in cars and trucks.

Doing so, Pickens argues, would allow the U.S. to reduce its use of imported oil by 30 percent. Natural gas proponents point out that it burns far cleaner than gasoline, that we have abundant domestic reserves, and that depending on where you live, it sells at the equivalent of $1.50 for a gallon of gasoline.

Mr. Pickens may know a lot about the oil and gas industry. But getting people to buy cars that can run on natural gas may not be as easy as he thinks.

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 11 Jul 2008 13:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Fri, 11 Jul 2008 13:02:00 EST<![CDATA[Autoline on Autoblog with John McElroy]]>http://www.autoblog.com/2008/06/27/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/06/27/autoline-on-autoblog-with-john-mcelroy/http://www.autoblog.com/2008/06/27/autoline-on-autoblog-with-john-mcelroy/#commentsFiled under: , , , ,

HEY GM, BRING BACK THE EV1

A decade ago General Motors put one of the coolest cars of all time on the road, the EV1. While there were a number of hard-core EV enthusiasts who became passionately committed to the car, it never caught on with the masses. But that was then and this is now. GM should seriously consider putting the EV1 back into production.

John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.

Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 27 Jun 2008 14:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>autolineautoline detroitautoline on autoblogautoline-detroitautolinedetroitAutolineOnAutoblogev1gm ev1GmEv1john mcelroyJohnMcelroyFri, 27 Jun 2008 14:29:00 EST