Morning News: Delphi Woes, Nissan, Mazda, Mad Germans

Can It Get Worse For Delphi?
The NY Times reports (registration required): Delphi Used Sham Sales to Lift Profits, Lawsuit Says. Mercy. Doesn't sound so good for them boys at Delphi. Here's a piece of the article:

The Delphi Corporation and several former and current senior executives engaged in a series of sham sales of worthless inventory intended to improve the company's bottom line, shareholders contend in a lawsuit filed in New York.

Delphi, the auto parts maker, sold "problematic inventory" to third parties for "enormous sums of money," two state pension funds and two European funds claim in the suit. Delphi agreed to buy the material back later, while recording almost $300 million from those transactions, the complaint states.

"Delphi knowingly gave the investing public a misleadingly positive impression of its financial performance by creating the appearance of income and cash flow-generating sales that were in reality disguised loans," according to the complaint, which was filed Friday as a consolidation of several individual suits.

Can It Get Worse For Delphi Employees?
The Detroit News reports: Delphi demand: Brutal cuts. Mercy. Doesn't sound so good for them folks working at Delphi. The Detroit News has a great graphic at the top that explains pretty much what Delphi is asking it's employees to take: less money, less time off, healthcare cut... How long before Delphi/GM/Detroit starts asking the U.S. government for a bailout?

Mazda: We're Hydrogen Crazy
AutoWeek reports: Mazda focuses on hybrids, hydrogen for Tokyo show. Mazda, Mazda, Mazda... What are we going to do with you? First, you show off a sexy, new concept car and then start talking hydrogen like it's the next-generation fuel for the next generation of cars. But, really, hydrogen is far away from the car world as we know it, so quit it. Focus on making your current engines more fuel-efficient and adding some electric engine things (aka hybrids) for around-town driving. And keep making the current RX-8 'cause, damn, it's hotter than the sun.

Nissan: We Can Build A Fast Car, Too!
AutoWeek reports: It’s Almost Here.... Get ready for Japan’s Corvette, the Nissan GT-R PROTO. We hope by "Japan's Corvette" AutoWeek doesn't mean a fast but poorly built and pretty-danged-plastic-for-the-money kind of car. I guess Nissan feels they need a high-end car since the 350z can't produce the kind of speed the 'vette can, but still... Infiniti does have some sweet V-8s, so maybe they could be put to a faster use if Nissan really wanted to. It doesn't matter to us, though, since Nissan forbid us from testing their cars anymore after, you know, the incident. There is no way we were to know that that would happen if we did that. And they never, ever let us forget about it. It was three years ago, and it healed!

Uh-oh, The Germans Are Pissed
AutoWeek reports: Audi to ask for better service, snazzier stores from dealers in effort to upgrade standards.

Audi will prod dealers to improve service departments and upgrade showrooms, its North American chief says.

Johan de Nysschen, who heads Audi of America Inc., says he is working with dealers to develop service standards befitting a premium brand.

"I want to deliver service to a customer that blows his mind so beyond his expectations that it builds loyalty," he said at a press event in Detroit.

De Nysschen also said Audi will push its "hangar concept" store design, called the New World of Audi showroom. It features lots of glass and aluminum, with natural materials and warm colors inside, he said. Remodeling could cost as much as $1.5 million per store, he said.

That's a lot of "he said." Which really means he pounded his fist on the table and said, "I want action and I want it now! Don't make me grow a mustache like Dieter! A mustache like that will just take over my body and make me kick all of your asses up and down this new, lovely aluminum concept I've brought along."

Len Hunt Splits
Autoblog reports: Len Hunt Leaves VW. Our buddy, Len, has left the building. Wonder if Len will go to another car company?

Were We Wrong?
We recently said goodbye to the Saab 9-2x, but it looks as if we were a bit premature. It is going to go away (sooner than later we bet), but for now, GM/Subaru claim the thing will stay in production. Yeah, we don't really believe them either, but we wanted to clear this up. They are liars, and we are prophets. Got that?

Comments

[Julie]

I love that Saab. I just priced it around with these guys, and 3 dealers called me. Sounds like the lots are full and they are working hard on moving them out. I really suggesst using a new car price quote service and getting the lowest price.
These guys are good: http://www.buyingadvice.com/