Amazing quote in today’s Nikkei [sub]:

“Shares in Toyota Motor Corp. gained further ground Tuesday afternoon, after Moody’s Investors Service Inc. said during the lunch break it may downgrade Japan’s sovereign debt ratings.”

Welcome to the wicked world of global economics. (Read More…)

Hit by the March 11 earthquake and tsunami, exports of Japanese motor vehicles plummeted 67.8 percent from a year earlier in April.This according to data released today by the Japan Automobile Manufacturers Association. The quake hit all companies, although not equally hard … (Read More…)

When Chrysler celebrated its payback of “every penny that had been loaned less than two years ago” last week, I noted that CEO Sergio Marchionne’s triumphant line was technically correct, but hardly represented the whole truth of the story. I pointed to $1.5b in supplier aid that helped keep Chrysler afloat, as well $1.9b worth of the Bush Administration’s “bridge loan” to “Old Chrysler,” prior to its government-guided bankruptcy and sale to Fiat. Apparently my more-inclusive accounting of the price of Chrysler’s rescue (which was picked up elsewhere in the online media) caused Mr Gualberto Ranieri, Chrysler VP of Communication, to spend some part of his Memorial Day Weekend writing a response of sorts, outlining Chrysler Group LLC’s perspective on the situation. Hit the jump for Ranieri’s statement, and my brief answer to the headline’s question.
(Read More…)

Does your Memorial Day barbecue feature a blown alcohol-burning dragster roaring to life in the driveway as your guests chow down on burgers and dogs? (Read More…)

Once upon a time Japanese cars came to our shores promising high fuel economy and despite feeling small and cheap, buyers flocked to the dealers. Over time however, the Japanese auto industry grew up. “Small and flimsy” are qualities that modern Japanese imports do not possess but as is the way with the world, better […]

The Development Bank of Japan is planning a bailout found for Japan’s hard-hit auto parts industry. The parts industry took the brunt of the March 11 earthquake and tsunami, and it is parts shortages that hold up a speedy recovery of Japan’s largest industry sector. According to the Yomiuri Shimbun, the DBJ plans to raise 50 billion yen for the fund. (Read More…)

Ladies and gentlemen, today is a historic day for the Aston-Martin brand. Never in the rich and storied history of the British sportscar maker has there ever been a vehicle, and therefore a review, quite like this one. Autocar handles the burden of history with the soft touch that defines nearly every “first drive” review, demeaning its own readers’ inability to purchase this exclusive Aston rather than daring to question its point, purpose, performance or purchase price. So read on, dear reader… because what we have here is a piece of automotive history. And since you’ll never own one of these proud and noble machines, you might as well use this opportunity to bask in its reflected glory. To wit:

The 97bhp four-cylinder engine feels and sounds energetic up to 50-60 mph. The optional CVT transmission gives easy step-off at traffic lights. In this car it it’s a much better option in a city car than any fiddly five-speeder.

The [Aston-Martin] can produce a quite refined cruising performance on motorways if necessary, though passing performance isn’t its forte.

The steering is feather-light and nicely accurate. If you haven’t sampled [this Aston-Martin] you’ll be surprised by the sheer pleasure that flows from using its scooter-like turning circle, especially when it’s a viable three-seater, that can occasionally cope with four if you don’t mind having no boot space.

But wait… that’s not all! Hit the jump for the answer to the question you’re doubtless asking yourself at precisely this moment: Should I buy one?
(Read More…)

Willys MA, Willys’ entrant in the jeep competition

General Motors was the largest supplier of war materiel to the American armed forces. Ford famously built B-24 Liberators that rolled off the Willow Run assembly line at a rate of one per hour. Chrysler alone built as many tanks as all the German tank manufacturers combined. With those high profile contributions to the war effort made by the big three automakers, it’s easy to forget that the independent automakers (and automotive suppliers as well) also switched over completely to military production.

(Read More…)

A lengthy Automotive News [sub] story on Scion concludes with Scion VP Jack Hollis restating the brand’s basic myth:

Scion was not created for Scion’s sake. Scion was created for Toyota’s sake. It is an investment in Toyota’s collective future.

Hollis’s argument is bolstered by the scenario in which a youngster is attracted to a Scion store by the brand’s youth-oriented marketing, only to leave in a Corolla. Hollis argues that this model means Scion doesn’t have to worry about its sales volume… which is a good thing, considering the brand’s steady sales decline over the past four years. Hollis explains:

We still don’t go with a set [volume] number. Scion wants to be more influential. We want to talk to more people. We’re getting the right people, so the real question is: How do we get more of them?

I don’t know about you, but creating a brand to be “influential” and to “talk to more people” sounds like some vintage, dry-aged, old-school GM branding nonsense. And given that Scion’s sales decline coincided with the rollout of less-distinctive, more Toyota-like products, Scion’s apparent comfort with its recent declines smack of Old GM-style apathy as well (Scion execs respond with the old “but we gave customers what they wanted” chestnut). But don’t worry… Scion has a plan!

(Read More…)

It took a bit of research to fully parse the California New Car Dealer Association’s complaint against Chrysler and its partially company-owned store in Los Angeles, and our finding is that the CNCDA is actually gunning for Chrysler with gusto. But, argued some of the B&B, surely Chrysler doesn’t want to be kicked out of California? Surely Chrysler’s California dealers don’t want to see their manufacturer banned from selling vehicles in the state? Well, it turns out we were missing a little context that seems to indicate why Chrysler’s California dealers are willing to go to war over a single dealership: Chrysler is overhauling its California retail presence with the help of Wall Street hedge funds. Having used the bailout to wipe out 789 dealerships across the country, Chrysler appears to be working around franchise law to exert more control over its retail network in the Golden State. No wonder then that California’s dealers are standing together to attack Motor Village, the most egregious example of Chrysler’s new retail model. And there’s no knowing where the conflict could end…

(Read More…)

Supposedly, the Chinese car market is doomed and has crashed into its Limits of Growth. Not so, says Audi. China has turned into Audi’s largest single market, says Automobilwoche [sub], bigger than Germany. By the end of April, Audi had sold 78,487 Audis in Germany. How many were sold in China? (Read More…)

A lawsuit will be filed tomorrow in Longview, Washington seeking to force city officials to abide by the statutory filing requirement for an initiative that would give residents a say in whether or not red light cameras and speed cameras can be used in the community. On May 23, initiative co-sponsors Josh Sutinen and Mike Wallin handed 3628 signatures on a petition for a ballot measure to the city clerk — exceeding the legally required amount. The city council chose to make up its own procedure.

(Read More…)

On June 29, Nissan will hold its annual stockholders meeting. Usually, there is a party after the meeting where stockholders and media are being fed a light meal. This time, they better bring a sandwich. (Read More…)