If you think Toyota has problems, you sure can’t see them on their monthly report.  Toyota just released sales and production numbers for July,  and they look beauteous: (Read More…)

A press release, issued last night by Edmunds, had a devastating effect on Toyota. As the Tokyo bourse opened, the TMC share sunk to a fresh year-to-date low of 2,890 yen. In the afternoon session, it recovered a bit, but not much, to close at 2,941 yen. Ooops. In the beginning of the year, the ToMoCo share traded above 4000. What were the horrible news? (Read More…)

Mad cars are what make this industry fun. The second generation Renault Megane had a polarising effect; people either hated it (me) or loved it (the others). And people did love it. Very much. Then there was the Fiat 600 Abarth, where they tweaked the engine (which was in the boot) so much, it could only stay cool with the boot lid open. When they found out the car could go faster with the boot lid open, Fiat sold the car with the boot lid permanently open! Then we come to Nissan. While quite not in the same league as the Abarth, Nissan has had some pretty wild cars. The Cube and the Juke certainly stay seared in one’s mind. And it looks like they’ll be doing it again. (Read More…)

A few weeks ago, I wrote about how Ford is enjoying booming sales in India for their small car, the Ford Figo. Sales of the small car purpose-built for the Indian and other emerging markets jumped 267 percent from last year. Ford is staffing up for it. Well, Ford is now going to take the plunge in India. Well, at least they’re planning on it. (Read More…)

Nature abhors a vacuum, and so does journalism. GM has been trumpeting the Volt’s 40 mile target AER (all electric range) since it was first announced on January 7, 2007. From that very day three years and eight months ago, journalists and enthusiasts have been asking The Big Volt Question: what is its fuel economy in CSM (charge sustaining mode)? There has never been an answer, except that at the 2007 announcement Bob Lutz “reasoned that…(after the battery was depleted) the engine sipping fuel at a rate of 50 m.p.g.” An early target or a Lutzian wild speculation that GM soon refused to verify or qualify. Ever.

Fast forward to August 24, 2010: gm-volt announces that an astute reader has made a screen capture of an Aol Volt test drive promo video, that indicated that the Volt traveled 16.1 miles after the battery depleted and used .59 gallons, equaling 27.3 mpg. Did anyone really think that was a truly representative fuel economy for the Volt, not knowing precisely the conditions under which it occurred? Note the word “Hints” prominently in TTAC’s story. So far, it’s been the only shred of evidence to The Big Volt Question. But rather than use this fantastic PR opportunity to state a target CSM mileage figure, which could only (presumably) look good compared to that 27 mpg number; GM’s Volt Communications person Phil Colley (pictured above) states it delicately:

Yours (plugincars,com) and the other stories yesterday and today show a complete lack of understanding of the process and are quite frankly, lazy reporting.

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Since Mahindra doesn’t seem to be giving its self-destructed US distribution channel much attention, we couldn’t help but wonder what exactly is more important to the Indian firm than a little PR the world’s second [sigh] largest car market in the world. The answer, of course, is its acquisition of Ssangyong, a South Korean automaker known only to Americans as the maker of the legendarily ugly Rodius (to be fair, regular TTAC readers may also recall Ssangyong’s bid for world’s ugliest bankruptcy declaration). But the meeting point between Ssangyong and Mahindra isn’t styling, it’s diesel and four-wheel-drive.

Despite the fact that Ssangyong is still technically in receivership, there are still 25 dealers selling its products in Australia on the strength of the motto “We Live Diesel,” while Mahindra has 40 diesel-only Australian dealers. Recently Ssangyong revived the nameplate given to its original product, Korando, for a new model that reportedly launches in Australia later this year. Looking at the evolution of the Korando, from original CJ7 clone to the forthcoming model (which reportedly boasts a 174 hp, 337 lb-ft “German-designed” diesel engine, and available FWD or AWD), one can’t help but wonder where Mahindra sees itself going.

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Just days after Mahindra’s diesel-powered compact pickups were approved by the EPA for sale in the US, the Indian automaker apparently canceled its distributor agreement with Global Vehicles according to the message above that was posted to Mahindra’s Media site. Global Vehicles has had a deal to distribute Mahindra pickup and SUV models in the US since 2006, and has signed up 350 dealers to sell the Indian imports. Recently cracks in the relationship surfaced when GV sued Mahindra alleging that the manufacturer was delaying homologation for the US market. GV claims to have spent $35m preparing for Mahindra’s US launch, and dealers were said to have paid $200k apiece to obtain franchises. Meanwhile, Automotive News [sub] notes

The statement by Mahindra hangs a question mark over the 300 to 350 U.S. retailers who have signed franchise agreements directly with Global Vehicles, if the Alpharetta, Ga., company no longer is the distributor.

Nor is it clear that Mahindra has the power to terminate the agreement without a court fight.

Edmunds is tracking an $1,800 average increase in the price of used cars, as new-car sales have faltered with the shaky economy. But the increase in prices isn’t solely due to Americans tightening their belts and buying used instead of new. The biggest price increases by nameplate appear to be for large SUVs and vans like the Cadillac Escalade, Chevy Suburban, Dodge Grand Caravan, BMW X5 and Acura MDX. Edmunds senior analyst Joe Spina explains

So many economic factors affect automobile sales and prices. It’s believed that the program delayed purchases prior to the program and also pulled sales forward while in place. The program also eliminated inventory of older vehicles that were traded and then scrapped… Now, those who need trucks and large SUVs are buying them and in many cases are turning to used vehicles as a way to save money. Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.

Edmunds’ “Large SUV” segment shows prices up by nearly $7k per vehicle (over July 2009), compared to increases of less than $500 per vehicle for midsize and compact cars over the same period. Gas prices, meanwhile, are nearly unchanged from July of last year. Clearly something is affecting the price of used SUVs… if it’s not Cash-For-Clunkers, what is it?

Nissan was the fifth best-selling brand in the first half of 2010, but with nine new model rollouts planned for the next two years it’s looking for something its marketing team calls “breaking the mold” improvement. To do that, Nissan is leading its product blitz with distinctive products like the Leaf EV and the Juke “sportcross,” but it’s also working to bring more attention to its brand as well as its vehicles. Marketing boss Jon Brancheau explains the problem to AdAge

If you look back over the course of the last 18 months at our creative, a lot of it has been focused on individual models and there hasn’t been an overarching idea that held everything together, laddering to Nissan. That’s what’s different about this work. It’s focused on the vehicle lines supporting the Nissan brand rather than just focusing on individual launch activity. The Leaf is the most recent example to believe that Nissan is an innovative company and that’s how we want to transmit our message to consumers, we want to turn it around a little bit — Nissan is the brand, and here’s the reason you should believe in it.

Unfortunately, the vehicle for Nissan’s latest bid at brand awareness is based on the tagline “Innovation For All,” a bon mot that is unfortunately reminiscent of the ill-fated Chevrolet tagline “Excellence For Everyone.” For a brand that is respected by many but loved by few, that’s a dangerously vague approach to a marketing push, and it hardly seems like the message to propel Nissan out of its perennial also-ran status. On the other hand, it’s tough to put a finger on what exactly Nissan should stand for because it’s brand has almost always been poorly differentiated in this market. So we’re curious: what does the Nissan brand mean to you, and what are the strengths it should build on as it seeks to improve brand awareness? Or are they on the right track already?

Opposition to the Ethanol industry’s push to allow gasoline blends with up to 15 percent ethanol is coming together this week, as a massive coalition of interest groups calls for congressional hearings on the EPA’s pending E15 decision [via PRNewswire]. The Alliance of Automobile Manufacturers and Association of International Automobile Manufacturers joined 37 other groups, ranging from the National Resources Defense Council to the Outdoor Power Equipment and Engine Service Association, in calling on congressional energy committees to take up the issue.

(Read More…)

For the last two years, more Americans have seen the auto industry in a negative light than positive, as layoffs, bankruptcies, bailouts and energy price volatility have piled on the bad news. Now, according to the latest Gallup polling, those perceptions are starting to swing back around. The industry once again scores more favorable impressions than negative, although its 39 percent favorable is only as good as its 2006 level. Meanwhile, negative impressions are up four points from ’06, at 36 percent, and the industry is perceived less positively than industries like “Sports,” Publishing and Accounting . This indicates that, although the worst PR of the bailout-era is behind the industry, it’s still battling a long-term erosion in favorable impressions, as well as significantly higher unfavorable ratings. The momentum may have turned, but automakers still aren’t winning the PR war.

Wrestling fans and auto enthusiasts have a lot in common. They can be sickeningly loyal to their favorites. Even when it’s obvious their one and only favorite is well past their prime. They also have a bit of a dopamine problem. Adrenalin, excitement, the thrill of seeing ‘their guy’ win the battles. It’s all there. Even for the boring ones. Whether it’s a Camry climbing up the sales chart. Or a 1988 Toyota MR2 carving up a modern day competitor over a mountain overpass. It’s a rush to see ‘your choice’ be the best choice. But then there’s the Piper Principle.

(Read More…)

When Spyker bought Saab from GM, they bit off too much than they can chew.  Spyker is upside down, under water, or whatever you call it when you have negative equity. They just announced that their debt exceeds their capital. And it looks like they have been dipped by GM: “The negative equity is due to the preferred shares that were issued to GM.” (Read More…)

Today’s Curbside Classic is a precautionary tale; a lesson in how difficult it is to predict the future, and how humbling it can be to bet on the wrong pony (car). (Read More…)

In Europe, Volkswagen is a full service operation. You can buy your car at a Volkswagen (Audi, Seat etc.) dealer. You can finance it at the Volkswagen Bank. (They give you a credit card, and higher interest for your savings.) You can insure it with the Volkswagen Versicherungs Dienst VVD.  Both are subsidiaries of Volkswagen Financial Services. The VVD is not a real insurance, they act as an agent for Europe’s insurance giant Allianz. Put that in the past tense. After 62 years with Allianz, Volkswagen does its first baby steps into the insurance business itself. (Read More…)