Two and a half years ago, there was no way to predict the phenomenal resurgence that has occurred since General Motors and Chrysler were forced into bankruptcy and restructuring. Indeed, in the name of full disclosure, I have to admit that at the time I was in favour of bailing out General Motors, but I though it was best that Chrysler be left to flounder. The company had consistent trouble in engineering competitive products, its reliability record was incredibly spotty and its customer service was among the worst in the business. And, while I still have some questions about Chrysler's long-term viability (as does, judging from his recent press conferences, CEO Sergio Marchionne), the company's success over the last 12 months has proven me, at least for the short-term, egregiously wrong.
Both General Motors and Chrysler are beating analysts' expectations and flummoxing the competition, which seems to be driving the American Right to distraction. Supposedly the bastions of enterprise and keeping jobs in American, many in the American Republican party continue to hold on to their tired old dogma that their car makers should never have been bailed out in the first place. That their tough love was not applied to Detroit still rankles despite the companies' success and behind the scenes the auto industry has become something of a political football.
Perhaps the most distressing example of this is the hullabaloo over the fires that have been reported in Chevrolet's new Volt extended-range electric car. For the record, there have only been two, one in a car that was part of a crash test and another in a rather convoluted laboratory experiment that proved hard to simulate. The American National Highway Traffic Safety Administration has since cleared the Volt after GM made a slight modification and The General offered to buy back all cars from any unsatisfied Volt customer.
Yet the controversy drags on. Most distressing is the contention of Dan Akerson, General Motors' latest chief executive officer (it's had three since the company's 2009 bankruptcy), that the Chevrolet Volt has become a "political punching bag" for critics of the original bailouts. According to Automotive News, Akerson wrote, "the Volt seems, perhaps unfairly, to have become a surrogate for some to offer broader commentary on General Motors' business prospects and administration policy" in his testimony to the House Oversight subcommittee looking into whether the investigation of the two fires was deliberately delayed.
It is worth noting that the chairman of the subcommittee is a Republican vociferously against the original bailouts and who vows to continue pursuing his right-wing agenda. And the loser, as Akerson points out, is GM's halo vehicle, the Volt, whose sales have suffered since news of possible fire hazards were leaked.
Of course, the other side of the table is not immune to political gamesmanship. In his recent American state of the union address, Barack Obama, the US president, praised the resurgent American car makers and their job creation (he says the industry in America has added 160,000 jobs since he came to power). Of course, sceptics can grouse (with some authority, I might add) that with so few triumphs in the first two and a half years of his administration, Obama had little choice but to trumpet Detroit's (OK, Detroit's and Turin's) rather astonishingly quick return to health as one of the successes of his administration's policies.
Although if one were being scrupulously honest, you'd also have to admit that the tsunami that crippled Japan's motor industry benefited America's Big Two-And-A-Half. Nor did having former number one car maker Toyota suffer a much overblown unintended acceleration crisis hurt their cause either. One could, were one truly unkind, even note that, having hit rock bottom, there was no direction other than a Saab-like complete failure for the American manufacturers to go.
Nonetheless, by any measure, they have been resurgent since their 2009 bankruptcies and taxpayer-fuelled restructurings. Never mind that the bank loans so derided just a few years ago are being paid off faster than imagined. Or that Fiat so loves Chrysler that it is buying up its outstanding shares faster than predicted. All three domestic car makers have increased their market share since 2009 and, for the first time in many a year, Detroit's combined portion of the North American market has actually increased.
But the true measure of their success is that the domestic brands are building (mostly) better cars and, more importantly, the public is buying them. Chevrolet's Cruze may not yet be the number one compact car in North America, but considering that just a few short years ago critics decried as impossible the profitable manufacture of a small US car, the million Cruzes sold worldwide must stand as a monumental success.
And, has any brand been so comprehensively and thoroughly revised as Buick? North American consumer awareness of the once-somnolent brand's new product may still lag behind the excellent product in its showrooms, but I predict a notable resurgence in Buick sales over the next few years.
Chrysler, initially decried in Italy as a burden on parent Fiat, is now filling the company's coffers with profit as the European sales tank. The new Dodge Dart may not be as pretty as the Alfa Romeo Giulietta that it is based on, but I suspect it, too, will enjoy a modicum of success. And sales of Ram pickups remain stellar, the company's pickups now challenging the finest from both Ford and GM.
Even boring old Ford is cranking out some fine cars, the new Fusion that wowed this year's Detroit North American International Auto Show a perfect example. And, where Toyota once had sole proprietorship of the green market, Ford is challenging the Asian giant with a full range of alternative products, from more fuel-efficient EcoBoost powertrains to a fully electrified Focuses. It's simply not a good time to be a Detroit sceptic.
Ideology has no place in the pragmatic world of automobile manufacturing. The industry creates too many jobs and, yes, is too important to the American psyche to be left to the whims of political demagoguery.
That so much of the discussion about whether the car makers should or should not have been bailed out is based on partisan canon and not hard-nosed business insight is just proof of how far the political discourse in the United States has gone off the rails. Indeed, while it's easy to denigrate the American Right for having been proven so wrong in this particular case, I suspect the Democrats were only right because large-scale government intervention just happened to fit their doctrine.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
UAE currency: the story behind the money in your pockets
The%20specs
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Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Chinese Grand Prix schedule (in UAE time)
Friday: First practice - 6am; Second practice - 10am
Saturday: Final practice - 7am; Qualifying - 10am
Sunday: Chinese Grand Prix - 10.10am
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
Director: Jon Favreau
Starring: Donald Glover, Seth Rogen, John Oliver
Rating: 2 out of 5 stars
COMPANY%20PROFILE
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MATHC INFO
England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)
New Zealand 7 (Try: Savea; Con: Mo'unga)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The Year Earth Changed
Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
RESULTS
5pm: Maiden | Dh80,000 | 1,600m
Winner: AF Al Moreeb, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Handicap | Dh80,000 | 1,600m
Winner: AF Makerah, Adrie de Vries, Ernst Oertel
6pm: Handicap | Dh80,000 | 2,200m
Winner: Hazeme, Richard Mullen, Jean de Roualle
6.30pm: Handicap | Dh85,000 | 2,200m
Winner: AF Yatroq, Brett Doyle, Ernst Oertel
7pm: Shadwell Farm for Private Owners Handicap | Dh70,000 | 2,200m
Winner: Nawwaf KB, Patrick Cosgrave, Helal Al Alawi
7.30pm: Handicap (TB) | Dh100,000 | 1,600m
Winner: Treasured Times, Bernardo Pinheiro, Rashed Bouresly
BACK%20TO%20ALEXANDRIA
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'Cheb%20Khaled'
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Real Madrid 1
Ronaldo (87')
Athletic Bilbao 1
Williams (14')
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Killing of Qassem Suleimani
Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
More coverage from the Future Forum
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
