Chinese automaker SAIC has concluded its deal to assume control over its joint venture with GM [via the WSJ [sub]], and to keep its momentum going, it will be releasing its first hybrid vehicle this year. Reuters reports that the Roewe 750 Hybrid will be released this year, making SAIC the second Chinese firm to offer a hybrid drivetrain after BYD. SAIC may even deliver … (Read More…)
Chandler, Arizona, NBC affiliate Channel 12 has the harrowing story of a runaway Toyota that nearly killed a boy.
Driver Chuck Schmeiser pulled his 2008 Prius into a grassy parking lot. A boy helped the driver ease up the car to a berm and park the Prius. Then, says Schmeiser, “The car just accelerated, went over the berm, and at that time we did hit that young man.” (Read More…)
Everyone wants a showhorse car at a workhorse price. When folks find out about my work,they automatically assume that the auction lanes are paved in pure gold. A late-model Honda that’s high in demand? They think I can get one for $5000 under retail when the truth the few I can actually get are already selling at retail. The finance game changes the cost of popular late model cars dramatically as do tax refunds. An unpopular car or one with a minor accident history? Now that’s a different story.
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Just as certain celebrities reach a critical mass of surgical alterations, where a new nose or chin can go completely unnoticed, the 2011 update to the Audi TT barely registers. And like any aging celeb, it looks remarkably good… until you put it next to a photo of an original. Compared to Peter Schreyer’s timeless bauhaus lines, the TT is showing the wear and tear of Hollywood living, with its heavy eyeliner and tacked-on curves. Not that we’d turn down a date, mind you…
Underpinning further indications that the luxury segment is climbing off its death bed, Audi just announced amazing numbers for the first quarter of 2010. Audi just had the best quarter in recorded Audi history. Audi’s worldwide sales climbed by 26 percent in the first three months of 2010, writes Das Autohaus [sub]. In March, the four-ringed daughter of Volkswagen sold 110.400 – never had Audi sold so many cars in a single month. And who’s buying all those Audis? (Read More…)
A while ago, we predicted that China’s March new car sales might exceed expectations. We came to that conclusion by reading the usually reliable tea-leaves of the March GM sales. They came in at 68 percent above March 2009. Using them as an indicator, growth of overall March sales in China could be in the 50 to 60 percent range. Analysts polled by Reuters think the number will be 30 – 40 percent. It looks like they are wrong. (Read More…)
TTAC Commentator Shane Rimmer writes:
I have a 2002 Ford ZX2 5-speed with about 80,000 miles on the odometer. For peace of mind, I plan to change the transmission fluid soon. The book calls for Mercon automatic transmission fluid, but I have read that synchromesh is the better choice. I’d like to get the thoughts of the best and brightest on which I should use or if I should just leave it as is since there are no problems.
The Arizona Court of Appeals ruled last week that asserting one’s constitutional rights does not give police sufficient cause for detention and search. The ruling treated a January 8, 2008 incident in which Alvin J. Sweeney was pulled over for allegedly following a car too closely. Arizona state police Officer Mace Craft claimed that he had timed the gap between Sweeney’s car and the vehicle in front of him at 0.88 seconds. Sweeney had a Canadian driver’s license and was driving a rental car with the appropriate paperwork. This, and Sweeney’s nervousness, aroused Craft’s suspicion.
The Detroit News has just published a quote that allegedly comes from a January 16 email from Toyota Motor Sales USA group vice president for environmental and public affairs Irv Miller to “company officials in Japan.” Miller’s quote reads:
I hate to break this to you but WE HAVE a tendency for MECHANICAL failure in accelerator pedals of a certain manufacturer on certain models. We are not protecting our customers by keeping this quiet. The time to hide on this one is over. We better just hope that they can get NHTSA to work with us in coming with a workable solution that does not put us out of business.
With about $34.4b in debt and a selling rate that’s being propped up by incentives and fleet sales, Ford ain’t out of the woods yet by a long shot. But compared to the ongoing debacles in the RenCen and Auburn Hills, things are looking downright sunny under the sign of the Blue Oval. Most of the credit for that tends to go to CEO Alan Mulally, who left Boeing to assume control at Ford in 2006. There are people who want him gone. (Read More…)
Nearly everything ever written about BYD in the Western press has focused on the Chinese automaker’s hybrid or electric drivetrains, or the firms and investors who have bought into their future promise. It’s an understandable state of affairs: after all, the firm started life as a cell phone battery maker, providing OEM cells for firms like Nokia. Meanwhile, BYD sold nearly a half-million cars in China last year, all gas powered, doubling both sales and profit over 2008 levels. And with plans for a pure EV now on hold, BYD is going back to basics, readying a range of new, allegedly more upscale, gas-powered cars for the Beijing Auto Show later this month. (Read More…)
As analyst comments on the freshly-announced Renault-Nissan-Daimler deal come in [via Automotive News [sub]], a consensus seems to be building around the notion that the tie-up offers few real advantages to the three firms outside the real of small-car development. The financial impact and opportunities for luxury-segment component sharing are constrained by the deal’s structure, meaning the stock-swap and attendant hoopla are little more than window-dressing for the real project: developing compact and subcompact cars for tomorrow’s C02 standards. As Bertel noted, rumors of a Daimler-Renault tie-up have always centered around the Smart brand, and today Daimler’s Dieter Zetsche told Automotive News [sub] that
We could not have found a feasible basis alone for the next-generation Smart family… Of course, we could do a next-generation Smart alone, but we would lose a lot of money
As if to confirm that GM’s benefit obligation situation could actually be worse than today’s GAO report lets on, Automotive News [sub] is reporting that the UAW has sued GM over $450m in unfunded healthcare obligations for Delphi retirees. GM promised to fund a $450m Voluntary Employee Benefit Association for Delphi retirees in 2007, and Delphi’s bankruptcy court confirmed the commitment in last October. But, according to the UAW suit:
the UAW made a written demand that the company honor its contractual obligation to make the foregoing payment [last October… but] that UAW demand was rejected and since that time the company has failed and refused to make the contractually required payment.
That obligation apparently was not voided by GM’s bankruptcy, although The General’s spokesfolks have yet to officially comment on the UAW’s suit.
Chrysler is celebrating the Ram’s continued sales slide (relative to last year’s pathetic numbers) by plastering a 100 foot-wide Ram Heavy Duty on its headquarters, along with a final confirmation that Motor Trend really does serve as Detroit’s marketing department of last resort (as if such confirmation were needed). But hey, at least they gussied up the Auburn Hills digs to celebrate something other than the promise to continue foisting sub-par products on the buying public through the year 2107.
My first day back at the helm of TTAC has been accompanied by an embarrassment of riches, in the form of both a GAO report on GM and Chrysler’s pension obligations, and the release of GM’s first post-bankruptcy, GAAP-approved financial results. We will continue to mine these documents for the most revealing quotes and statistics, but for now let’s take a moment to consider the political tensions caused by the auto industry bailout. TTAC has long held that political conflicts over the government’s stewardship of GM and Chrysler is a pressing concern, nearly on par with the financial ramifications of the auto bailout, and today’s GAO report confirms our concerns. As the following quote reveals, Treasury is under constant pressure to accommodate political concerns over the management of its stakes in GM and Chrysler, and has received no fewer than 300 official letters from congressional representatives, eager to subordinate the long-term health of the bailed-out automakers to their local concerns.
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