Bloomberg reports:

Renault SA Chief Executive Officer Carlos Ghosn agreed to make development of upscale cars for French factories a “priority” as the government steps up its influence in the wake of a botched spy investigation.

Renault, based in Boulogne-Billancourt near Paris, named Carlos Tavares as Ghosn’s deputy late yesterday. The French state, the carmaker’s biggest shareholder with a 15 percent stake, made support for the appointment conditional on strategy changes, including taking a stronger lead in its alliance with Nissan Motor Co., people familiar with the situation said.

“If it’s this hard just to get your man in place, it suggests we’ll see more, rather than less, government influence going forward,” London-based Credit Suisse analyst Erich Hauser said. France is a “relatively small shareholder with a disproportionate say over strategy, which has to be a concern for other investors.”

…Ghosn said he intends to be “more present in France from now on,” in an interview published today in French daily Le Parisien and confirmed by Renault.

In the face of such (continued) humiliation at the hands of a minority government partner, one has to admit that America’s auto bailout has been an relatively hands-off affair. Context is important after all (although to be perfectly fair, Renault did embarrass the French government with that “spy scandal”). Besides, it sounds like the brave French pols are simply out to avenge the sad death of the Vel Satis, so hey, at least the French might get the epically weird luxury sedan to end all epically weird luxury sedans out of the deal.

Sometimes honesty is the best policy…

May sales estimates are out, and the analysts are seeing slowdown in their crystal balls. Reuters reports that its survey of leading auto analysts projects a 12.6m SAAR (Seasonally Adjusted Annual Rate) for the month, while Bloomberg is projecting a 12.1m rate. Wherever the actual number lands, it is likely to be the first month this year below a 13m SAAR, as Japanese supply interruptions as well as model changeovers lower overall supply. But, reports the WSJ [sub], there’s evidence that perceptions of undersupply are possibly keeping consumers away from showrooms as much as an actual shortage of vehicles. A Honda dealer who says he has plenty of cars for sale is quoted as saying

Traffic is down and I think it’s the media effect. People think there’s no cars and they think there’s no incentives, so they’re waiting.

And that’s not all: it turns out that May’s downbeat forecasts could have an even deeper cause…

(Read More…)

With new compact and subcompact models from Ford and GM enjoying respectable sales, the mainstream media has been indulging in some “feel-good” headlines, like the New York Times’s Detroit’s Rebound Is Built on Smaller Cars, or CBS’s more equivocal Can small cars rebound U.S. auto industry? It’s an understandable instinct, as the media has long battered Detroit’s inability to build competitive compact and subcompact cars, and in the post-bailout atmosphere of redemption, these headlines definitely help reassure Americans about the value of their “investment.” Unfortunately (if unsurprisingly), however, these pieces gloss over the full truth of the situation. Yes, Ford and GM are enjoying improved sales success with small cars. The “U.S. auto industry,” on the other hand, isn’t actually getting all that much out of the situation, beyond some fluffily positive press. Here’s why:

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I love stories of American cars that take a weird journey to production in South America, preferably with a dash of European influence added during the journey’s many twists and turns. The Argentinean Renault Torino, a Rambler American with Jeep Tornado engine and Pininfarina rebody is a great example, as is the Willys Itamaraty, a limo-ized Willys Aero sold in Brazil by Ford. The list goes on, but perhaps the greatest, most convoluted tale of them all is that of the Simca Esplanada. How about a late-60s Chrysler product, based on a Dearborn-designed French Ford, with an Ardun-ized hemi Ford Flathead V8 under the hood? (Read More…)

AOL’s Translogic [via PopSci] takes a look at the LAPD’s brand-spankety new Chevy Caprice PPV, the born-again Pontiac G8 that you can’t buy at a dealership. But rather than looking at the Caprice’s cop car-creaming performance (as did the Michigan State Police), this report focuses on the LAPD’s high-tech toys… which could just make the Caprice’s V8, rear-drive abilities less necessary than ever. Still, between the Holden-powered, rear-drive performance, the footprint-spying night vision camera and the automatic license plate recognition system, the Caprice PPV will probably make you think twice about speeding the next time you’re visiting the City of Angels.

Editor’s Note: Tomorrow is the first day of June, which the National Motorists Association has deemed “Lane Courtesy Month.” What follows is a piece entitled “Lane Courtesy: A Driving Ethic,” which was originally posted at the NMA’s website. There, the NMA has dedicated a whole page to issues of lane courtesy, including studies, fact sheets and other resources for the promotion of lane courtesy. TTAC thanks the NMA for drawing attention to the perennial aggravation of “Left Lane Bandits” and encourages you, our readers, to learn more at the NMA’s website and spread the good word. With just a little more awareness of lane courtesy, a better world is indeed possible…

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Thanks in part to the help of people from TTAC, TrueDelta received a record number of responses to April’s Car Reliability Survey—over 22,000. Updated car reliability stats have been posted to the site for 559 cars, up from 534 three month ago. There are partial results for another 418. These stats include car owner experiences through the end of March 2011, making them at least eleven months ahead of other sources.

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Though the auto bailout is being widely defended in the political realm as a jobs-saving measure, the industry sees the rescue’s value in precisely the opposite light, as industry and supplier execs rate “capacity rationalization” as the most positive effect of the bailout. And, reports Automotive News [sub], Ford and GM could still end up cutting as many as six more plants over the next few years as questions linger about volume recovery in the larger market. Of the three GM plants likely to be shut down, the former Saturn plant at Spring Hill, TN, is the most likely to survive as it includes a paint shop, a small engine plant and associated parts manufacturing facilities. In contrast, analysts note that GM’s Janesville, WI, plant is the firm’s oldest and is therefore far less likely to survive, and its Shreveport, LA, compact truck plant is part of “Old GM” and will likely be liquidated. Similarly, Ford’s Ranger plant in Minnesota, as well as its Avon, OH Econoline plant and its Flat Rock, MI Mustang plant could face shutdowns. Ranger is running out of production, Econoline has been losing share to Ford’s more-efficient Transit Connect, and Mustang has been losing market share to Camaro while facing a Mazda pullout from the Flat Rock plant.

Because GM is adding jobs at other plants, the net job loss from its three likely shutdowns (two of which are currently idle) could be relatively low, but then cost savings aren’t likely to match those accrued by past shutdowns either. Ford, meanwhile, is facing a bit more disruption if Mazda pulls out of Flat Rock, but could accrue more savings than GM as only the Ranger plant is scheduled to lose its production. In any case, the UAW will have to weigh its desire to keep plants open with its desire to mitigate the inequity of the two-tier wage system… as well as its desire to gain board seats. All of which could make the UAW’s upcoming bargaining session (not to mention the political debate about the auto bailout) much more interesting…

No, this is not another installment of Steve Lang’s “Lease, Rent, Sell or Keep?” series. Wards Auto is reporting that Toyota facing a decision over whether to kill its Matrix hatchback when a new version of the Corolla on which it is based debuts sometime “before 2013.” Toyota’s Bob Carter tells Wards that

There’s no change right now on the car, (but) we haven’t made the decision yet

So, what to do? Toyota doesn’t break sales of the Matrix out from the Corolla, but according to Wards:

The hatchback reached its pinnacle in 2002, selling 66,836 units, Ward’s data shows.

Annual deliveries have declined since then, except for 2008, the second-generation model’s first full year.

However, Matrix volume plunged 47.3% to 26,121 in 2009, from 2008’s 49,567, and last year slid 44.5%, with only 14,492 deliveries.

Toyota’s Carter insists that the forthcoming “Prius C” compact hatch “attracts a different type of buyer,”  an argument he’d probably also apply to the Scion xB, another Corolla-based hatchback. So, should Toyota develop a new Matrix along the lines of its predecessors in hopes that the third iteration brings back some magic to the nameplate? Or, would a re-styled xB make a better Toyota than Scion, opening up Scion’s lineup for a version of the Verso-S? Or perhaps Toyota could offer its European Auris as a Hyundai Elantra Touring-style contrast to the very American Corolla. Or, Toyota could look to the Verso for a larger, more utilitarian alternative to a traditional Matrix.

In any case, with so many possible options, it’s no wonder Toyota hasn’t made a decision yet…

Police officers in New Mexico can take guns away from drivers who pose no threat. The state supreme court ruled on May 20 that “officer safety” is more important than any constitutional rights a gun-owning motorist might have. The ruling was handed down in deciding the fate of Gregory Ketelson who was a passenger in a vehicle pulled over on November 13, 2008.

During the stop, Hobbs Police Officer Miroslava Bleau saw a 9mm handgun on the back seat floorboard. Ketelson and the driver of the car were ordered out and away from the car while Officer Shane Blevins grabbed the gun. The officers later learned that Ketelson, as a convicted felon, could not legally possess a firearm. The court, however, only considered whether the officers acted properly in taking the gun before they had any reason to suspect Ketelson, who was entirely cooperative during the encounter, of committing a crime.

(Read More…)

How about a Volkswagen Golf with the insane, mindbending power of  235 horses under the hood? Want one? Then better stop reading. Book a flight to Klagenfurt (that’s KLU in airport-speak, your travel agent probably has never heard of it) and go like right now. There will probably be a stopover in Vienna. Then head to Reifnitz, Wörthersee and just follow the noise. From tomorrow, June 1 through June 4^th, the bucolic town in Austria will host the world’s biggest Golf GTI Meet.

There will be two anniversaries to be celebrated. The Golf GTI Meet turns 30. And the Golf GTI has just turned 35. To celebrate the double anniversary, Volkswagen lays on the Golf GTI Edition 35, at 235 hp “the most powerful GTI ever,” says Volkswagen. (Read More…)

Custom vans got big enough by 1977 that Detroit got into the business of making crypto-custom passenger vans right at the factory. While plaid upholstery with sporty STX logos doesn’t quite measure up to a mural of Zeus hurling lightning bolts at an Aztec warrior on the Mars Base (with matching four-foot airbrushed bong in a special bracket next to the driver’s seat), The General still moved a fair number of STXs during the Middle Malaise Era. (Read More…)

“Midwestern auto-industry towns that were hit hard in the recession are becoming an important backdrop for President Barack Obama and other Democrats hoping to use reinvigorated factories to paint a picture of the improving economy ahead of the 2012 elections.”

That’s how the Wall Street Journal starts off an article on how “Democrats hitch a ride on the auto-industry rebound.” As we had noted on Memorial Day, our beloved bail-out is becoming the battle cry of the 2012 presidential campaign. Says the Journal: (Read More…)