Before Fiat snapped up Chrysler from the US taxpayers for a song, it saw the Indian firm Tata as another logical partner for a long-term alliance. After Tata bought Jaguar/Land Rover, the auto media was awash in rumors that the British brand would share components with Fiat’s Alfa-Romeo brand. When Tata came out with the Nano, there was speculation that Fiat’s dealers in Europe and Latin America could be used to sell the low-cost car, even rumors of a Fiat-branded version were floated. Fiat even tried to sell Tata on one of its notoriously nasty Italian plants. What did surface from Fiat and Tata’s flirtations: a joint venture in India that, by all accounts, is going not well at all. And now, with Fiat distracted by its Chrysler rebuilding project, Ratan Tata is expressing his displeasure with his firm’s Fiat tie-up, telling The Hindu Businessline
I have to admit that so far, the venture with Fiat has not been as active as we had thought… I think that Fiat has to launch more models into the market to keep dealers interested. It also has to look at its cost structure in terms of parts and components. So the joint venture needs to be looked at quite critically and until that happens, it’s not going to be optimised… As far as what else we can do with Fiat, I think Sergio Marchionne and I can really talk to each other. However, at the working level, it hasn’t quite been that way. We have looked at Latin America to do something together, but things haven’t moved as they should have done
So what are they saying in China about the Pangda/Youngman/Saab threeway? The blogs and message boards are full, of course. Cars are of high importance in CCC (car crazed China.) Much more important, what does China’s government say? Multiple agencies of the government will have to approve a deal with Saab. However, officials won’t utter a word before, often even after a deal is done or has been denied. But then, the government owns newspapers. Analysis of state media is a refined science in China. Let’s see some of it in action. (Read More…)
This past weekend, a young man named Lucas Ordonez finished in second place in the reasonably-well-contested LMP2 class at LeMans. The video-gaming world has taken notice, because Mr. Ordonez entered racing as the winner of the PlayStation GT Academy a few years ago.
This proves the truth of what every basement-dwelling, sunlight-allergic gamer geek has been saying for years: being fast in a racing video game makes you fast in real racing. After all, if a kid from nowhere can step from his couch into a racing program and fulfill the lifetime dream of nearly every sports-car racer in the world, surely “Gran Turismo” is a genuine, realistic training tool, right?
Naturally, the truth of the matter is not so simple.
Honda and Toyota have been valiantly holding off an all-out assault on the compact segment thus far, and Civic and Corolla still lead the C-segment’s year-to-date sales race. FOr the month of May, however, the barbarians made it inside the gate, and turned the compact market on its head. Chevrolet’s Cruze, which was one of the first of new breed of compacts to launch, took advantage of its head-start in the marketplace to tear into first place, beating the new Focus by a mere 408 units. Elantra was about 2k units behind the Focus/Cruze leaders, but finished nearly 2k units ahead of Civic, which itself beat Corolla by nearly 1,500 units. Now that the Compact Wars are well and truly joined, we can expect more of this back-and-forth each month. In any given month this can be anyone’s segment… the question now is whether Honda and Toyota can possibly hang onto their YTD lead and finish 2011 with the volume win. It’s by no means a sure thing… hit the jump for a month-by-month breakdown of “big six” compact sales.
Strap on the man-pants, Saab fans, because there’s another heaping load of bad news for the Swedish brand this morning. First off, Saab’s mysterious Russian backer Vladimir Antonov has backed out of a deal in which he was to buy property at Saab’s Trollhättan plant and lease it back to the company, stabilizing its short-term cash position. Automotive News [sub] quotes an Antonov rep as saying
The property sale is now being discussed with external investors
Apparently the Swedish real estate investor Hemfosa has stepped into the breach and sources say a deal could happen quickly. Antonov’s man added that his boss was still interested in securing a shareholding in Saab, a move that has been awaiting approval by the European Investment Bank for some time now. But despite Antonov’s insistence that he’s not going anywhere, the real estate deal pullout is troubling. After all, if Antonov were really the Saab zealot he claims to be, willing to support and revamp the brand at any cost, wouldn’t he want to own the Trollhättan plant? Wouldn’t he want deed to the factory in case Saab, as it exists now, goes into bankruptcy? This is the first indication that Antonov is treating his Saab involvement as an investment rather than a crusade, which is frankly a bad sign for what’s left of the Swedish brand. On the other hand, with Chinese firms chopping up Saab, what’s a businessman to do?
Ford has big plans for Europe. Within the next three years, 20 new or facelifted cars will be launched in Europe with the blue oval. Before that is done, Ford production all over Europe is being completely rearranged, reports Automobilwoche [sub] today. The basic strategy is called “single sourcing:” (Read More…)
The auto enthusiast world has been torn apart of late by the re-boot of the Lotus brand, which is transitioning from hard-core enthusiast niche manufacturer to mass-appeal, high-end, branded premiumness. The photo above shows the first steps towards building a Porsche or Ferrari-like brand: Lotus Originals sells leather jackets and other branded goods in order to build up the exclusive appeal that the brand needs to bank on once its new cars arrive. But in China, Lotus’s branding issues are going to require more than just some sexy young things pouting in leather jackets while artlessly assembled around a piece of Lotus’s brilliant past. China Car Times reports that Lotus parent company Proton’s China-market deal with new Saab partner Youngman has already created some issues, namely
UK’s Lotus will enter the Chinese market on June 15 this year, but its Chinese name is Lu Te Si (“路特斯” – a transliteration of Lotus) rather than the well-known Lian Hua (“莲花” – Chinese for Lotus Flower), because China’s Youngman Lotus has used the famous brand to market its cars first, and Lotus does not want consumers to get confused between the low cost products from Youngman and its own high end sports models.
Your worst nightmare. A pleasant drive along a yawning rural two-laner is met by a sudden ‘jolt!’ You quickly take your foot off the accelerator. Was it a transmission shudder? A miss in the engine? Some gravitational push from a UFO? After a couple of mini-jolts it looks like problem number one. You do what you can to not stress the tranny. But it gets worse and worse until ‘jolt!’ ‘JOLT!’ ‘Veeeee!!!!’ The engine spins over to the high rpm’s with nothing left to propel it. The tranny is toast… and now the fun begins.
As you know, the Russian government offered foreign automakers a deal: Invest heavily into the Russian auto industry, and Mother Russia will let you import parts and components at negligible or zero duty rates. Present your plans no later than July 1. Here is Volkswagen’s answer: (Read More…)
A campaign to reform or eliminate the use of red light cameras and speed cameras is heading up in Winnipeg, Canada. Earlier this month the group WiseUpWinnipeg kicked off the effort with a two-page, full-color advertisement in the Winnipeg Sun newspaper.
“Attention Winnipeg drivers, you are being deliberately deceived,” the ad warned. “The city of Winnipeg is engaged in a deliberate and dangerous campaign to induce photo enforcement violations and siphon your hard earned (cash).”
Honda joins other Japanese automakers in a delayed post-tsunami forecast. Percentage-wise, Honda expects to be much harder hit than Toyota. Honda expects a net profit of 195 billion yen ($ 2.43 billion) when the current fiscal year ends in March 2012.through March. Last year, there were 534 billion yen ($6.65 billion) left below the bottom line. That’s a decrease of 63.5 percent.
More people feel that the task of driving belongs to the driver, and do you really want to sort of hand over your safety to a machine? It’s possible the technology might one day be widely deployed. I just don’t think we’re anywhere close to that right now
NHTSA Administrator David Strickland came away from his first run-in with Google’s autonomous cars in a less-than-entirely optimistic mood [via the DetN]. You might think that Strickland, who is a central figure in Transportation Secretary Ray LaHood’s “War on Distraction,” would appreciate a driver that has no need for Twitter, Facebook or the other increasingly-common in-car distractions. Instead, he took his position to its remarkably solid core: that individuals need to think more, not less, about their responsibilities as drivers. It’s actually a fantastic message, especially given that he wasn’t kidding about the “technology isn’t ready” part, telling the DetN
There’s near misses. It’s not fool-proof. There’s a lot of work to go, [but] it’s a great piece of technology.”
OK boys and girls, we’re working on our last month of the first half of 2011… and it’s time for a gut-check. Here are the studs of the light-duty vehicle sales world, the top 25 total volume sellers in the US through May. But remember, we have no fleet sales breakouts by model (data donations accepted at our contact form)… so this isn’t necessarily a measure of the cars that are selling best with private consumers. Still, it’s an interesting list of cars, with a surprise for everyone (RAV4 barely beating Prius, for starters). We hope you enjoy it.
It’s not difficult to understand why the UAW has never contemplated agreeing to a wage rate tied to the profitability of its employer firms: simply put, it’s been a long time since big profits were the norm among the union-represented Detroit automakers. But now that Motown is back in the black and handing out record profit-sharing checks, it looks like the UAW could finally tie its own fate to that of the automakers… on certain conditions. UAW boss Bob King tells The WSJ [sub]
It would be an advantage if you can guarantee to the [Detroit] companies certain things on fixed costs so that they would remain competitive. When you’re successful, that’s good. But if you’re sharing more of the risk, you need to have more of the upside
Recent Comments