May shapes up to be an accommodating month for China watchers: There’s something for everybody. You want to see the Chinese bubble burst? May will give that to you. You want cliché-confirmation, you want to hear that Chinese hate Japanese? May gives you automotive anti-Japan pogroms. You want GM up? No problem, May has got that. You want GM down? No problem, May has got that. You want unbridled growth? May can do.

Or as the Chinese say: “May wen ti!” No problem!

First, let’s have a look at our patent-pending TTAC China sales oracle, a.k.a. GM China. (Read More…)

American Traffic Solutions files federal lawsuit accusing former VP of stealing company clients.

Photo enforcement vendor American Traffic Solutions last month filed a federal lawsuit against one of its own top employees. Michael J. Lenza worked for ATS as senior vice president for financial services from September 30, 2006 to May 13, 2011. Lenza’s job was to solicit business, but ATS now charges the former executive with secretly building a client base of his own on company time. (Read More…)

Japan’s March 11 tsunami had more destructive effects than just washing pint-sized (ok, ok, 0.6 liter sized) kei cars to the top of Japan’s sales charts. It also resulted in considerable menboku o tsubusu (literally “breaking of face”, dishonor) for Lexus. On its home-turf Japan, Toyota’s lux-brand was outsold by doitsu (German) BMW, even by Mercedes, a brand said to be popular with the yakuza. Speaking of major menboku o tsubusu: BMW did certainly not top Toyota, as Bloomberg insinuates. (Read More…)

The National High-Speed Train Network seems to go nowhere, fast. But wait, here’s the next big thing: (Read More…)

In his Detroit News interview, GM CEO Dan Akerson revealed a minor mystery, which I present for your consideration and discussion:

In a recent meeting with engineers, for example, Akerson pressed them to explain the logic behind putting a big 6.2-liter engine in an unspecified car whose competitor has a 4.4-liter turbocharged engine. The engineers replied: “Well, we want to be able to beat the other guy.”

Akerson responded: “I don’t think the average buyer is going to buy an eight-cylinder, 530-horsepower (car).” His point: Decisions must be supported by a solid business case, and not just for bragging rights or as a marketing tool.

The Cadillac ATS-V seems like the most likely candidate, but then there’s also this to consider:

Akerson, who became CEO Sept. 1 and board chairman Jan. 1, already is weighing in on new vehicles. He recently greenlighted the next generation of the compact Chevrolet Cruze, but vetoed a new engine for a sports car set for production in 18 months.

The ATS is a sedan, not a sports car… so is this a different cancelation, or what? Over to you, B&B…

The Detroit News snagged a lengthy interview with GM CEO Dan Akerson, giving observers one of the first in-depth looks at the man who will be leading The General for the next three to four years. The interview is to lengthy to summarize here, but there are a few items that are worth noting…

(Read More…)

The U.S. jobless rate just rose to 9.1 percent. Employers added the fewest workers in eight months during May. The housing market is double-dipping. Only 16 month to go until the next presidential election. It’s the economy, stupid.  The President has to do something. What does he do?

“President Obama’s visit to a Chrysler plant in Toledo, Ohio, on Friday was the culmination of a campaign to portray the auto bailouts as a brilliant success with no unpleasant side effects. “The industry is back on its feet,” the president said, “repaying its debt, gaining ground.”

If the government hadn’t stepped in and dictated the terms of the restructuring, the story goes, General Motors and Chrysler would have collapsed, and at least a million jobs would have been lost. The bailouts averted disaster, and they did so at remarkably little cost.”

He’s wrong, writes David Skeel, a professor of law at the University of Pennsylvania, in his op-ed piece in the Wall Street Journal.  (Read More…)

Beijingers who are lucky enough to win the license plate lottery may be punished severely – if they don’t buy a car. In the beginning of the year, China’s capital instated a rule by which new car owners must enter a lottery for a license plate. Only 17,600 plates are available per month. In the latest draw, some 530,000 people did compete for the 17,600 plates. Only one out of 30 applicants could win. And what are the lucky winners doing? Most of them do nothing. In April, only 3,700 exercised their hard-won right and bought a car. At least that’s up from 2,000 in January.  Now, the city is thinking about meting out harsh punishment. (Read More…)

The best way to show you love a topic isn’t to write it a love letter but to treat it in an uncompromising manner.

Time Magazine nails the core of  TTAC’s philosophy, while naming us one of its 25 “best blogs of 2011.” Excuse us while we pat ourselves on the back…

Napa, California has suspended all court action on red light camera tickets until June 13 at the earliest. The city is scrambling after a May 26 ruling by the Superior Court’s appellate division in Napa County that found the city violated state law by paying Redflex Traffic Systems based on the number of red light camera tickets the Australian company issued. The city is asking for a rehearing of the case, but if that is denied the suspension will last until June 28 while the city files an appeal.

(Read More…)

The March 11 earthquake and tsunami didn’t just destroy more than 410,000 cars in Japan. It also totally mangled the list of top selling cars in Japan. After a two year absence, two minivehicles took the top spot of the chart. Suzuki’s WagonR mini vehicle was the best-selling new car in May, Daihatsu’s Move mini vehicle took second. The first regular car was the Honda Fit in the 3^rd position. Perennial leader Toyota Prius is in the 6th position, despite an early re-start of production.  Full list after the jump …. (Read More…)

„When you run out of battery with your EV, no AAA will help you – except with a tow.”

This line is a favorite weapon in the low-level propaganda war between gas and electric. Now Nissan, purveyor of the Leaf, goes on the counter-attack. Nissan deployed its first roadside service vehicle equipped with a charger to assist EVs that ran out of juice. (Read More…)

Brady Writes:

Dear Steve/Sajeev,

I’m a 35 year old physician with wife and 2 kids, who has happily made do with a succession of automatic VW Passat wagons, first a chipped 2000 and now a 2010 I use to reverse commute out of my large metro region. We’ll be moving to the oceanfront suburb of a small New England city this summer and I’ve got to select car #2. My commute will by short and pokey–7 miles each way, some of it along beautiful marshland and ocean, some of it not. Long haul family trips can be done in the Passat, but the second car should safely carry the kids in a pinch. Budget is 30-35k max. I’ve been thinking new v6 mustang convertible, but then again, is it time to invest in the future and, say, lease a volt? Or practical, comfortable fun in a new GTI/Golf TDI? Revisit a heavily depreciated bug convertible we used to love despite it’s crude underpinnings and tight back seat? Or take advantage of some older interesting vehicles–S4 cabriolet, 3 series convertible, or something I’m too boring to have considered?

Steve Answers: (Read More…)

TTAC Commentator talkstoanimals writes:

Sajeev,

Much to my dismay, in less than a year my job will move from downtown Washington, DC to suburban Maryland. This means I will be forced to drive to work every day rather than being able to rely on the Metro system for the work commute. Currently, my main ride is a 2011 BMW 135i with the M Sport package and some Dinan tweaks. However, since it does occasionally snow and sleet around here, and since I’m unwilling to sell the 135 or swap the summer treads for all season rubber (I regularly flog the car out in the twisties of VA/WV and prefer the feel of summers out there), I’m presented with a twist on the new or used question. Should I:

1. Invest in a set of winter tires, perhaps in a minus 1 size on dedicated wheels? This would require that I rent storage for the wheels/tires not in use or move out of my apartment to someplace with dirty item storage space. I could maybe beg a friend with a garage to loan me a dark corner, but it would make me feel guilty.

2. Buy some sort of cheap – $3500 to $5000ish – but reliable winter car? I wouldn’t mind having a second vehicle for hauling stuff around – maybe a small pickup or a wagon/SUV. Also, since most of my social life still revolves around downtown, I wouldn’t mind having something I could park on the street without a care whether it gets doored, dinged or scraped.

If the answer is two, what car or truck should I look for? The only caveat is that, after the fiasco with my 2010 lemon-lawed Mustang [can’t find the link to the Piston Slap on the issue], I won’t buy a FoMoCo product. (Sorry, Sajeev. But Ford ticked me off so much in negotiations over the Mustang that I refuse to give them my money anymore, even in used car form. I don’t want them making a nickel off of me on parts or anything else.) The ideal would be something small enough for city life, durable, utile and easy to insure.

Sajeev Answers: (Read More…)

With a Mercedes-Benz taking the overall win, it only seemed fitting for another Mercedes-Benz to get the top prize: the Index of Effluency. (Read More…)