Psssst! Want to buy Japanese car makers below book value? Now is the time. Spooked by the strong Japanese Yen, stocks of export-heavy Japanese automakers such as Toyota and Suzuki can be had for less than the assets on the books. (Read More…)

Mercedes, BMW and Volkswagen/Audi are all moving inexorably towards a major downmarket expansion, as they develop a new generation of compact and subcompact cars based on front-wheel-drive architectures. Though Volkswagen has played in this space for some time, the move is a major cultural shift for BMW and Mercedes, which are typically associated with rear-drive luxury cars, particularly in the US market. But the truth is that the German luxury brands have always sold products in the German and other European markets that don’t match their premium overseas brand images (see, among other examples, the ubiquity of Mercedes taxis in Germany). But the strange thing about this next push towards smaller cheaper cars is that it’s not not aimed at Germany at all.

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I’ve had a long held fantasy since 1971, when GM’s mega-barges appeared: to take a cutting torch to a Caddy, and make a clean slice across the front and rear, just ahead of and behind the wheels, resulting in something like this (sorry, I don’t Photoshop). The result would be hundreds of pounds lighter, easier parking, better performance, economy, handling and braking, but without any loss from that roomy interior. Turns out that Studebaker designer Duncan McRae beat me to it, by some thirteen years. (Read More…)

Think GM has a tough sell for its coming IPO? Chinese battery/automaker BYD is preparing its own $420m stock offering, likely to be floated on the Shenzhen A-Shares exchange, in the midst of a Chinese-market downturn, and an ongoing lawsuit with electronics manufacturing giant Foxconn. And all this comes after a long run of good news for the Hong Kong-listed BYD, which had been running strong on optimism generated by Warren Buffet’s major investment in the firm nearly two years ago. So, is BYD in real trouble of having its overvalued stock burst, or is the company strong enough to weather the storm that’s swirling around it?
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TTAC has a long, proud tradition of tearing into puffy automotive journalism, so it was not without a little trepidation that I wrote in the comments section of Michael Karesh’s excellent review of Zero To Sixty that

Toothless reporters put execs at their ease… which allows them to say naive or revealing things that toothy bloggers can then rip into. In a weird way, the worse the reporter, the better the reporting (as long as the quotes are then duly digested). As time goes on, I find myself more and more at peace with this evolving media food chain… and TTAC’s place in it.

To be clear, this is not an endorsement of toothless coverage per se, it’s just a pragmatic response to the reality that auto industry coverage will continue to be dominated by PR-approved puff. And this video provides yet more proof that non-threatening journalists are actually the most effective at snagging scoops, even if they’re totally unaware of said scoop. Which is where the bloggers come in.
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I went to a public sale this past Thursday. Dozens of vehicles were sold for four figure premiums, but unfortunately virtually all of them were complete and utter trash. A repo’d 2008 Dodge Avenger SXT was riddled with 89,000 torturous miles of abuse and neglect. It shaked, rattled, and barely rolled through the block. Thanks to an owner who considered the numerous warning lights to be mere suggestions.. But it still went for $8800. How? Why? We’re talking clean book value for a rough car in every sense of the word.

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Dodge previews its 2011 Charger by showing a police version almost completely shrouded by the darkness of what appears to be a typical Detroit neighborhood. And as much as we’d like to see more of the next-gen Charger, we understand what Dodge is going for here: after all, government fleets seem far more interested in purchasing Chrysler Group products than we lowly consumers.

If you are a carmaker, you need to have a hybrid and maybe even a plugin in the program, or at least on the schedule – whether your heart is in it or not. Even avowed petrol (and diesel) heads such as BMW and Volkswagen are dabbling with electrified powertrains – officially. Where are the last holdouts? In hybrid-country Japan.

“Mazda and Fuji Heavy are pursuing unique growth strategies as they continue to bank on refinements to the international combustion engine, in stark contrast with larger automakers that are rushing to roll out hybrid and electric cars,” reports The Nikkei [sub] to an aghast readership. (Read More…)

If the German magazine Focus is informed correctly, then Dr. Z’s days at Mercedes are counted. Focus heard that Wolfgang Bernhard will run Mercedes, while Dr. Z. will run all of Daimler. „In a second step, Bernhard could succeed Zetsche 2012 as Daimler CEO,“ says FOCUS.  Currently, Bernhard is responsible for production and purchasing of Mercedes. (Read More…)

We’re hardly shocked by the idea that Chrysler won’t turn profit this year. After all, Auburn Hills has barely made its minimum monthly sales volumes (at best, and with rampant incentives and fleet mix) this year, and lost $50m+ in “industrial inefficiencies” on the Jeep Grand Cherokee launch alone [Q2 results analysis here]. With plans to close out the year with a non-stop barrage of product launches and attendant media spending, it would take a minor miracle for Chrysler to break even. But we’ve essentially known this all for some time… what’s truly shocking is that Chrysler’s CEO Sergio Marchionne actually admitted to the media that Chrysler won’t turn a profit.

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Under court order, Redwood City, California was forced to admit that the red light camera installed at Whipple Avenue and Veterans Boulevard in March 2008 have done absolutely nothing to reduce traffic collisions. San Mateo County Superior Court Judge Clifford V. Cretan instructed the city council to respond to a civil grand jury report from June that blasted municipal programs throughout the county that raised $13.8 million from ticketing despite the lack of evidence of any safety benefit (read report).

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In the wake of GM re-taking full control of  Opel, Opel’s former boss Hans Demant stepped down to make room for Nick Reilly. Demant’s new title was GM Vice President, Global Intellectual Property Rights. His job was described as being “responsible for protecting GM’s property rights globally, for example in conjunction with business alliances, partnerships and transactions.”

That job is the GM equivalent of keeping track of the Willow Ptarmigan, Common Ravens, and Snow Buntings population of Nome Alaska. It comes as no surprise that Demand quit. At age 59, he could have taken early retirement. Instead, he took a job with the competition. (Read More…)

The reason there was no Curbside Classic last Tuesday was this: our camping trip to the coast was unexpectedly extended. We take our ’77 Dodge Chinook on deserted US Forest Service roads, and find hidden camping spots miles away from the nearest person, camp ground, and cell phone coverage. Depending on the mood, we can enjoy the dead quiet, or play the Dead as loud as we like. There is a certain risk to these back road jaunts, and I always calculate how many miles I would have to walk in case Old Faithful died unexpectedly. Folks perish regularly on these back roads, mainly in the winter. On Tuesday morning, having spent a serene night at the Cummins Creek trailhead, the “Hamtramck Hummingbird” starter sang and sang, but there wasn’t even the faintest sign of an explosion. Had be an ignition problem; the 360 always starts instantly, even if it doesn’t always keep running on a cool morning. Fortunately, this time we were a short jaunt from the highway. “I’ll just hitch hike to Florence, pick up an electronic ignition module, and be back in a jiffy”. My wife said “call a tow truck”. You already know who was right. (Read More…)

From the Dayton Daily News video:
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