Detroit Bureau on Twitter

Posts Tagged ‘Mike Jackson’

VW Scandal a “Black Eye” for US Diesel Market

Sales likely to collapse; long-term revival uncertain.

by on Sep.24, 2015

The 2015 Golf TDI is one of the diesels VW has temporarily stopped selling in the US.

For motorists looking for sporty but environmentally friendly alternatives to sluggish hybrids, diesels like the Volkswagen Jetta TDI has been a welcome addition to the U.S. market. The ability to deliver real performance along with high mileage is one reason why diesel sales have continued to grow even as demand for gas-electric models has plunged in the face of cheap gas.

But that growth spurt is likely to sputter out, industry insiders warn, in the wake of the Volkswagen cheating scandal. Last week, the Environmental Protection Agency ordered the recall of 482,000 VW diesel models, revealing that the maker had used software to scam the government’s emissions tests.

Subscribe for Free!

In real world situations, vehicles like the Jetta TDI actually produce up to 40 times the permissible level of noxious emissions.

“This is another black eye for diesels,” said Mike Jackson, CEO of Florida-based AutoNation, the country’s largest automotive retailer. “You now have a passionate constituency that feels betrayed.”

(more…)

VW Cheating Scandal Reveals “Systemic” Problem

Crisis could pull the plug on US diesel sales, warns AutoNation CEO.

by on Sep.23, 2015

AutoNation CEO Mike Jackson sees the scandal as a "systemic" issue inside VW.

Less than a week after the EPA revealed that Volkswagen had cheated on emissions tests involving its popular diesel models, the automaker has been taking a beating. Its stock price has collapsed; authorities around the world are launching probes; and potential buyers appear to be steering clear of its showroom.

The situation has been growing worse by the day, CEO Martin Winterkorn resigning on Wednesday, with VW indicating a broader personnel shake-up likely. That’s no surprise, says Michael Jackson, CEO of the country’s largest auto retailer, Auto Nation. The crisis, he says, could not have been triggered by just a “few bad apples,” but reveals “systemic” corruption at Germany’s Volkswagen AG

Subscribe and Stay on Top!

Meanwhile, the impact is likely to extend beyond VW itself, Among other things, it could short-circuit the nascent revival of the American diesel car market. “This is another black eye for diesel,” Jackson told TheDetroitBureau.com.

(more…)

AutoNation Won’t Sell Recalled Cars

Move could pressure other retailers, lawmakers to follow.

by on Sep.09, 2015

AutoNation CEO Mike Jackson.

The nation’s largest automotive dealer network has announced it will no longer sell either new or used vehicles subject to a recall until they have been repaired.

The announcement by Ft. Lauderdale-based AutoNation comes as the number of safety-related recalls has been surging to record levels. But while the U.S. Senate recently passed a measure that would force rental companies to pull recalled vehicles out of their fleets pending repairs, dealers were not required to take similar actions before selling such vehicles. And the House has yet to take action on its own version of the bill.

Your Reliable Source!

“There’s no way to expect that customers would or should know of every safety recall on every vehicle they might purchase, so we will ensure that our vehicles have all recalls completed,” said AutoNation CEO Mike Jackson. “We make it our responsibility as a retailer to identify those vehicles and remove them from the market until their safety issues have been addressed.”

(more…)

Tax-and-drive Republicans

In a "post-partisan" era, who will lead the political fight for stiff new gas taxes?

by on Jan.21, 2009

Is it time to raise the federal fuel tax?

Is it time to raise the federal fuel tax?

So, when did so many Republicans start sounding like Democrats? I know, I know, President Obama is all about a “post-partisan” America, and it’s not uncommon to hear even the most vociferous political opponents making nicey-nice with each other in the first weeks after an inauguration. But what I’m talking about is a serious, seemingly heartfelt transformation by some of the auto industry’s most traditional members of the Grand Old Party. Like Bob Lutz, GM’s Vice Chairman. Like Michael Jackson, the CEO of retail giant AutoNation.

No, they’re not going off on gay marriage, or national day care. But they are touching upon one of the traditional “third rails” of American politics, something even the most hard-core “tax-and-spend” Democrats have largely chosen to sidestep, in recent years. And that’s the idea of a stiff, new gas tax.

Go to Europe and a good 80% of what you pay at the pump is tax, as much as $8 a gallon – at the current exchange rate – in some countries, or about 40 times what Americans pay in the federal fuel tax. And the number hasn’t changed in two decades, here at home, even though much of the world has consciously increased fuel taxes in order to discourage demand, promote the sale of fuel-efficient vehicles and, of course, balance their budgets.

There are, of course, plenty of environmentalists who’d like to see the U.S. catch up. But the Sierra Club and the World Wildlife Federation aren’t going to move the political needle. If anything, it may take the loyal opposition, and the industrial side of the Republican Party seems to be rushing in to fill that gap.

(more…)