“Scion is pretty much a North American brand, so that is why it is very natural to think more development, more design work, should be done in North America,” Yoshi Inaba, president of Toyota Motor North America tells Automotive News [sub]. In other words, fans of Scion’s first generation of JDM confections who railed against second-gen bloat are probably out of luck. Sure, model four in the Scion lineup will be the iQ minicar, which is small and weird enough to have been a member of the Scion invasion team, but after that? It’s all bloat and bigger blind spots from here on out. It’s what America wants.
Money Control reports that the French government threatened to increase its stake in Renault from 15.01% to 20%. Not because it believes in the company and its products (would you trust a Renault Megane over a Honda Civic or Toyota Auris?), but to further exert control over Renault. Why would it want to do that? Well, that could probably have something to do with the French government’s invite to Carlos Ghosn for a little “sitdown” over the rumours that Renault may produce its new generation of Clio in Turkey, rather than its plant in Flins, France, where the current generation is built.
The TARP bailout of GM finance partner GMAC is being criticized by a congressional oversight panel [full report in PDF format here], reports the Detroit Free Press. The panel alleges that the Treasury
has not yet articulated a specific and convincing reason to support the company… It has never stated that a GMAC failure would result in substantial negative consequences for the national economy. If Treasury has made such a determination, then it should say so publicly.
Mercedes sold only 2,825 R Class “Grand Sport Tourer” models in the US last year, confirming once and for all that the eigenwillig CUV is a bonafide flop in this country. So much so that a GL-inspired restyling is already under development, possibly with a GL-inspired name as well: GLR.
GM sent Opel “an additional $930m in temporary aid until more permanent financing can be found” (good luck with that,) GM disclosed in a filing with the SEC. The total financing GM has provided to Opel now stands at $1.83 b, writes the DetN. It’s not that GM sent the money out of the kindness of their hearts. (Read More…)
Remember the ’86 Acura Legend Coupe, the definition of elegant muscle? Or how about the ’97 Integra Type R, the weekend racer you couldn’t break? These were Acuras that inspired passion, joy, and a special place burned into my long-term memory. Even though it’s been 24 and 12 years ago respectively since I drove these […]
The Detroit News reports that the UAW has put its infamous Black Lake retreat on the market, as the “symbol of the union’s success” has become a financial liability. The money-losing retreat and golf resort became a symbol of UAW profligacy during last year’s lead-up to the auto industry bailout. Even within the union, the club had become seen as a white elephant, sucking down an estimated $23m over the last five years, while being kept alive on interest from the union’s strike fund. All during a period in which UAW membership has declined and the union has been forced into concessions. With the UAW’s financial solvency dependent on GM and Chrysler IPOs, perks like Black Lake had to go. The UAW has not yet publicized an asking price.
I love this column, great advice every time. That’s why I decided to ask for your opinion on something that’s been bothering me for a while. I have a ’07 Mazda3 hatchback with a 5-speed manual. Currently I’ve crested 23,000 miles and the car is still under warranty.
Ever since I bought the car (brand new), the shifter has been a bit notchy going from 1st to 2nd. It could also be smoother from 3rd to 2nd. Another thing that bugs me is that during our cold Chicago winters, until the car/transmission warms up, the shifter is very mushy and stiff. Otherwise, the car is a blast to drive.
When we first saw the slide pictured above at Chrysler’s five-year plan, we jumped on it as the only seemingly positive bit of news coming out of that deeply depressing 7-hour presentation. We should have known better. Today Chrysler is reminding us why it always pays to be cynical about everything that comes out of the mouths and powerpoint slides of our friends in the industry: buying into the hype always makes you look like an idiot down the road. Jeep CEO Michael Manley brings the inevitable letdown to the Toledo Blade.
We have no plans at the moment for diesel Jeeps in North America, although one of the things I’ve learned in this business is to never say never. I wouldn’t rule it out, but specifically on Nov. 4, we were commenting on diesel in Europe.
Battery firm Ener1/EnerDel, which recently brought the EV firm Th!ink back from bankruptcy, has lost the battery contract for Fisker’s Karma luxury EV. According to Schaeffersresearch, Ener1 “decided it would be better pursuing higher-volume battery supply deals when larger automakers begin rolling out their versions of electric cars.” Says Ener1 CEO Charles Gassenheimer, “we have some capacity constraints on our side. We’re interested in high volume programs in the future.” The public story is that due to Ener1’s Th!nk tie-up, Fisker’s October sales roll-out was too much, too soon. The real story illustrates the complicated relationships emerging between EV firms and battery suppliers.
US Transportation Secretary Ray LaHood announced on Wednesday that he would re-write funding guidelines to dispense with rigid cost-benefit analysis when deciding which transit programs should receive funds. Under the previous system, because motorists provided the majority of the funding through the gas tax, money was allocated to cost-effective transit programs that promised the greatest overall reduction in traffic congestion. In remarks at the Transportation Research Board annual meeting, LaHood explained that the objective criteria will be replaced by a set of goals.
Remember the BRIC countries, saviors of the auto industry? Brazil, Russia, India, China. Brazil (+11.35 percent,) India (+18.7 percent) and especially China (+45 percent) performed as advertised. But Russia? Russia’s car 2009 car sales are such a disaster that BRIC will stay BIC for the foreseeable future.
Did we say that the auto industry has to deal with severe capacity problems? China has capacity problems alright. It looks like the biggest impediment to further sales growth in China is a shortage of cars.
China’s car makers are running three shifts and still cannot keep up with the demand, Bloomberg reports. Nissan’s factory in central China is making cars almost 24 hours a day, yet customers are faced with three month waits for their new car. Other companies, such as Ford and Honda, are running their Chinese factories at full capacity, with overtime and weekend shifts, and still can’t deliver enough cars. (Read More…)
Europe avoided the worst of carmageddon. While the U.S.A. was down 21.2 percent in 2009 and China was up 45 percent, Europe as a whole ended 2009 with the same sales as in 2008, more or less. According to data released by ACEA, the European Union survived 2009 with a slight drop of 1.6 percent. (Read More…)
My commitment is to the American taxpayer. My commitment is to recover every single dime the American people are owed… We want our money back and we’re going to get it.
Without even getting into the politics of President Obama’s proposed “financial crisis responsibility fee,” it’s easy to see that the initiative holds a wealth of implications for America’s TARP-recipient automakers. In Obama’s new rhetoric, taking TARP money put businesses in a new category of special obligation to the taxpayers. Though the fee is targeted at financial institutions, the principle applies just as much to Detroit.
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