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By on February 24, 2010

Reuters reports that the Detroit offices of Denso, a major Japanese automotive supplier, has been raided by the FBI as part of an on-going investigation into alleged anti-trust violations. Denso spokeswoman Bridgette Gollinger said the investigation was “absolutely not” related to ongoing recalls by Toyota. Denso supplies accelerator pedals (see above) and other components to the automaker. “We are cooperating with the investigation,” Gollinger said. The FBI raid was first reported by The Wall Street Journal, which said that federal investigators had also searched the Detroit area offices of two other Toyota suppliers, Yazaki and Tokai Rika. Curious coincidence of timing as this happens while Akio Toyoda testifies on Capitol Hill.

By on February 24, 2010

Maybe the title should be “What Grates My Ears”, because there is no automotive sound that more predictably induces a spike of cortisol than the clatter of studded tires on pavement. As they steadily chew up the roads in Maritime western Washington and Oregon, where it snows once every couple of years or so, it’s also the sound of idiocy, greed and government’s inability to act on the obvious. That so few are allowed to create so much public damage, is truly mind boggling, especially as it results in little or no actual benefit to them. The conditions under which spikes offer some possible benefit (sheet ice) exist about 1% of the time. Even then, the actual improvement under those conditions is only 10%! And contrary to the popular myth, spikes offer little or no benefit on snow, and are materially worse on wet pavement, which of course is what it is most of the time on the west coast. And it’s not just the millions in dollars ($17 million per year in Washington alone) in damage alone that’s the problem; spikes make the roads much more dangerous for everyone, including the spikers. (Read More…)

By on February 24, 2010

After a big buildup by expert witnesses, and Toyota’s Jim Lentz’s evasion of any evidence that his firm’s cars are afflicted with an untraceable electronic gremlin, the House Energy Committe turned its attention to Secretary of Transportation Ray LaHood. Because LaHood’s department falls under the congress’s oversight (and carries the government’s ultimate responsibility for the safety of American motorists), LaHood might well have been the main focus of the committee’s investigation. And indeed his last-in-line billing appears to make him the event’s headliner. Or at least it would have if his testimony didn’t make the previous several hours of Ahab-ing largely unnecessary, and possibly even highly embarrassing.
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By on February 24, 2010

The benefits of gasoline engine downsizing has its latest poster child: the new Polo GTI. It’s a graphic example of why diesel market share in Europe is declining, especially in smaller cars: a 25% reduction on the European mileage standards, without any loss of performance. The GTI’s 1.4 liter TSI produces 177 hp (132kW), exactly the same as its 1.8 liter predecessor. But the combined fuel consumption is 5.9 L/100km (40 mpg US)—equivalent to CO2 emissions of 139 g/km, 25% lower than the outgoing model. Knowing that it also squirts to 100km (62 mph) in 6.9 seconds and comes standard with a 7 speed DSG transmission is only rubbing the wound of knowing it’s not coming to the US with salt. But undoubtedly, tightening CAFE standards will eventually send VW’s pioneering 1.4 and 1.6 TSI engines our way; the question is only in what body. (Read More…)

By on February 24, 2010

Everybody who’s ever worked in China knows that some things take some time. Nothing that is announced today, happens tomorrow. There are applications to be made, documents to be “chopped.” Sometimes, this process takes forever, as it seems to be the case with Hummer. Sometimes, things move a bit faster. Last December, we reported that GM would sell a crucial one percent of the 50:50 holdings of GM China to their joint venture partner SAIC to bring the shareholdings to 51 percent SAIC, 49 percent GM.

As China’s new year (that of the tiger) came around, China’s biggest automaker SAIC Motor Corp has won regulatory approval to acquire the crucial 1 percent stake in Shanghai GM, Shanghai Daily reports today via Gasgoo. The matter has been officially filed to the Shanghai Stock Exchange yesterday. It’s official now. General Motors officially has been relegated to minority shareholder in its key venture in the world’s largest auto market. SAIC is now calling the shots. (Read More…)

By on February 24, 2010

Presidential campaigns always start with books, and Mitt Romney’s ‘No Apology’ is rolling off the presses. For a guy who unapologetically strapped his dog (in a carrier) on the roof of the Family Truckster, that seems a fitting enough title. But the White House is asking for one; well, not exactly an apology, but it is firmly denying that it is “calling the shots” at GM. According to a Detroit News story, “Romney writes that that an unnamed CEO of an automotive industry corporation told him that despite what is said publicly, ‘the government is calling the shots on every major decision at GM, including which plants to expand and which to close.'” Romney also calls on the government to distribute its GM shares directly to the American people. (Read More…)

By on February 24, 2010

Toyota’s Jim Lentz (who, I’m obligated to share, bears a striking resemblance to the dad from “Teen Wolf”) spent nearly two and a half hours before a committee that by then was investigating what expert witnesses described as an unknown, untraceable electronics error of nearly limitless reach. With this white whale taking the foreground of the committee’s imagination, the committee sharpened its harpoons, licked its lips and sailed out upon uncertain seas in search of its elusive quarry.
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By on February 24, 2010


It’s been nearly a year since the automotive industry has been treated to a must-watch DC hearing. The last time around, when the executives of America’s automakers went begging to congress for multi-billion dollar bailouts, hearings were heated and combative. Though liberally sprinkled with irony and comedic ignorance, those hearings were, at their heart, a traditional partisan stand-off. But bailouts are also a relatively cut-and-dried topic: you either support them for solid political reasons, or you oppose them for equally solid, equally political reasons. But faced with a national bogeyman of legendary mystery, the lurking terror of unintended acceleration, congress’s task was more complicated than the bailout’s do-we-or-don’t-we dilemma. Tasked with uncovering the truth behind a complex technical problem, is it any wonder that yesterday’s hearings before the House Energy Committee took a turn for the strangely hilarious? [Editor’s note: full prepared statements from all witnesses are available in PDF format here full video of all of yesterday’s testimony is available at CSPAN]

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By on February 24, 2010

Growing recalls, loss of customers’ confidence, questions about their management, falling stock price and congressional hearings. 2010 hasn’t been kind to Toyota, so any good news now would be welcome. Consumer Reports is here to help. Yes, Consumer Reports. (Read More…)

By on February 24, 2010

As connoisseurs will certify, daily Hummers are good for you. The Chinese agree and keep us supplied with the delicious staple of GM (and we don’t mean genetically modified) food.

Yesterday, we announced that time may be running out for the Hummer-Tengzhong deal. Jalopnik even went as far as saying that the deal is dead.

“Not so” said Shanghai Daily in the early Chinese morning hours of Wednesday. One of their sources said that “the chances of having the deal approved had dropped to 50-50,” another source of the Shanghai paper remained defiant: “Tengzhong has not given up hope yet to win government approval.”

This (U.S.) morning, the Wall Street Journal weighed in on the matter. Their Beijing correspondent reconnected with her “person close to the situation” after the source had returned from the Chinese New Year holidays. That impeccable source reported that “Sichuan Tengzhong Heavy Industrial Machinery Co. has been told that the Chinese government won’t clear its deal to buy General Motors Co.’s Hummer unit.”

In the afternoon, Reuters did a straddle.  (Read More…)

By on February 24, 2010

If you were a company at time of recession, belt-tightening and countries on the verge of bankruptcy, you’d think that registering record profits and growing global market share at times like these would keep everyone at your company happy, right? Wrong. Members of Hyundai Motor’s union are angry. Livid. Up in arms. And as students of Asian cultures will confirm, Koreans can get, shall we say, a bit hot and bothered about causes close to their hearts.

Koreatimes reports that despite pleas from management for peaceful resolutions, their union has demanded that Hyundai stop expanding overseas and guarantee job security at home – or else. (Read More…)

By on February 24, 2010

When we reported a few days ago that Porsche would have serious trouble complying with the upcoming CAFE rules, and that the existence of Porsches on American roads may be in danger after 2016, the majority of the commentariat exploded: “Unbelievable!” (Read More…)

By on February 23, 2010

The Wall Street Journal [sub] reports that Indiana diesel engine supplier Cummins will pay $2.1m in civil penalties for violations of the Clean Air Act. The EPA and the Justice Department complaint alleges that Cummins shipped 570k heavy-duty diesel engines to OEM customers between 1998 and 2006 without the emissions-control systems that make them Clean Air Act-compliant. It’s not even clear clear that the crud-controlling gear is missing. The paperwork is.  Cummins spokesfolks admit that 405 (or about .7 percent) of those engines never received documentation that shows they were fitted with the appropriate emissions-control systems. This is particularly embarrassing for Energy Secretary Steven Chu, who recently gave Cummins $54m in Recovery Act grants intended to improve truck efficiency and emissions, and called the firm “the leader in clean-diesel manufacturing.”

By on February 23, 2010

Kicking Tires calls these “the first official photos of the production version” of the next-generation Chevrolet Aveo. They show a subcompact that’s definitely less showcar-ish than the Aveo RS concept from NAIAS, but is still in the computer-generated “uncanny valley” between the realistic and real. Or maybe I’m just getting used to the idea of a halfway-appealing Aveo.

By on February 23, 2010

It was bound to happen.  Combine the irresistible force of the Datsun 240 Z with the charming demeanor of TTAC’s “LeMons Racing Experience” (LRE) team captain, Troy Hogan, and we were bound to win something.  And that point was the February 2010 running of the 24 Hours of LeMons in Houston.

We didn’t win the race, unless in 28th place counts as winning. But this time we got a prize, the highly coveted Index of Effluency now rests on our mantle:  and it is the top prize in LeMon Land. To quote judge Murilee Martin,it is “the pinnacle of all LeMons awards….(given) to the team that accomplishes the most with the crappiest car.”  While we always had the latter, the former is the textbook definition of “added perk.” And our new paint job (fashioned from the Paul Newman-era BRE racing livery) certainly looks trophy-worthy. The $1500 worth of nickels didn’t hurt either, even if we shouldn’t put them on the roof of the car for photography.

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