The podium was all smiles when Volkswagen reported an unheard-of profit of €18.9 billion ($24.8 billion) before tax, which turned into €15.8 billion ($20.7 billion) after the taxman got his €3.1 billion share. When Volkswagen announced this today in the annual results press conference, there was one man who grinned even more than anybody else. (Read More…)

 China has a new star. It’s the police force of Qionglai, a small city near Chengdu, Sichuan. Qionglai’s finest perform some kind of a reverse gangsta rap.

Want more? Mei wen ti! No problem. (Read More…)

Today, at 2:46 pm, Japan came to a stand-still, again. Trains and subways stopped. People did fold their hands, faced in the general direction of the northeastern coast of Tohoku, and said a silent prayer. Japan and the world marked the one year anniversary of the earthquake and tsunami that left whole towns razed, more than 19,000 people dead or missing, 344,000 people displaced, and a large area around the destroyed Fukushima Daiichi power plant off-limits for decades, if not permanently.

Writers often like to equate the power released by the quake to the nuclear bombs that had been dropped on Hiroshima and Nagasaki. Depending on who you read and believe, it was anywhere between 31,700 and 600 million Hiroshima bombs. Large parts of the coastal areas are dotted with huge, neatly stacked piles of rubble which nobody wants to take and nobody knows what to do with. The devastation was so big that it turned into an attraction on Google Earth.  Considering the immense damage, it is amazing how quickly the country did rebound. On Friday, I visited what was presented to me as an emblem of the amazing turn-around, Toyota’s plant in Kanegasaki, Iwate Prefecture. Here, 1,700 employees are working overtime to build Toyota’s Aqua / Prius c, for which everybody is screaming. (Read More…)

While Opel, Fiat, and PSA blame the European malaise for their lack of luck, Mercedes, BMW, and now Volkswagen can’t get the grins off their faces. Volkswagen reports global group sales of 642,300 for February; this is up 5.1 percent from the 557,900 sold in February 2011. Global vehicle deliveries by the Volkswagen Group in January and February 2012 rose by 7.7 percent to 1.29 million units. According to Volkswagen, the world automotive market was up by roughly 6 percent in the first two months. This indicates that Volkswagen won worldwide market share.

The following tables show why Volkswagen has reason to be happy. (Read More…)

Western media widely reported (and still reports) that the Chinese government will only allow Chinese cars to be bought by its functionaries.

Not so. The rule exists in draft form only,and has been published to elicit public feedback.However, in a disturbing development, China Daily reports that “nearly 90 percent of respondents in a survey are in favor of China’s domestic independent-brand automobiles for governmental use.” It’s not that 90 percent said so. It’s the ominous fact that it is being published in a government-owned paper.

If the survey is correct, then Chinese citizens want to look down on the car choices of their rulers. The Chinese themselves are widely in favor of foreign cars. 70 percent of all cars bought in China are foreign branded. The appetite for foreign branded cars remains high,as the following tables show. (Read More…)

China’s February new car sales are in, and they are whatever you want them to be. They are up a lot if you look at February alone. They are down if you look at the first two months of the year. They are confused for those who don’t know where to look. (Read More…)

When solar panel maker Solyndra went bankrupt last year, which cost the taxpayer $528 million in DOE loan guarantees, the end of the DOE loan program was quickly prognosticated.  The loan program is still around, but new loans have for all intents and purposes dried up. Just a week after presumptive EV maker Bright Automotive called it quits and withdrew a DOE loan application, the program claims another victim. It is Carbon Motors, the Connersville, Ind. startup that wanted to sell fuel-efficient cop cars. (Read More…)

More than one fifth of new passenger cars sold in Japan are hybrids. For the second month in a row, hybrid sales exceeded the 20 percent mark, data released by the Japan Automobile Dealer Association (see table) show. Two companies profit most from this new hybrid boom. (Read More…)

If you are anxious to hear what Opel is going to do to stop the bleeding of money (just in case you are holding GM stock,) then you need a lot of patience. GM Europe CEO Karl-Friedrich Stracke thinks he might have a plan within two to three months. He might have a plan. Setting the plan in motion may take longer. (Read More…)

For quite some time, Fiat-Chrysler CEO Sergio Marchionne has been busy lamenting the dreadful overcapacity in the European auto industry.  He’s doing I so much that slowly, people begin thinking that Marchionne is honestly concerned. “If I would be in his shoes, I would be concerned too,” said an audibly unconcerned European auto exec, who requested anonymity. My friend thinks that when Marchionne talks about the European car industry, he is talking about Fiat.

Now, Marchionne has a plan how to fix the chronic overcapacity at Fiat in Europe. (Read More…)

While carmakers in France and Italy complain about overcapacities in a declining European market, makers of German premium cars are reporting sales records. After astounding growth at Mercedes, BMW now announces its best ever February. (Read More…)

The Chinese auto press now routinely whacks the innovation by replication that  is still prevalent in the Chinese car industry. An egregious case: Zoyte copied the Suzuki Alto nearly 1:1 for the Zoyte Z100, which is expected to debut at the Beijing Auto Show in April. Nevertheless, an unrepentant Zoyte was caught by Carnewschina testing the new Z100 side-by-side with the Alto (top. The cars are not being tested on ice. It is an attempt to obscure the location where the pictures were taken.) (Read More…)

Two days ago, Volkswagen announced “ambitious new sustainability targets.” The Wolfsburg company promised “30 percent reduction in CO2 emissions during the period from 2006 to 2015,” and “emissions below the 120 gram CO2/km mark for first time in 2015.” Plants of the group are to become “25 percent more environmentally compatible by 2018.”

TTAC ignored the announcement. I know VW quite intimately, and they make these announcements on a regular basis. A lot of the above had already been announced  in 2011.

Our friends at  Hybridcars.com have a different perspective, they think Volkswagen hoisted the white flag in the war with Greenpeace: (Read More…)

It hasn’t been much of a secret that Opel is working on a small car, called the Junior, to take on BMW’s Mini, or Fiat’s 500. As a matter of fact, Opel had been working on the Junior since 1982. Way back when, the interior of the Junior had been designed by a new arrival in Rüsselsheim, a freshly graduated Chris Bangle. People who expected to see a Junior in Geneva were disappointed. Instead,”General Motors will launch its new small car, the Junior, at the Paris show next autumn,” just-auto was told in Geneva.

The bigger news: The Junior “will be strictly for Europe and unable to challenge the global success of the Mini, or take on the Fiat 500 in America, engineering head Rita Forst admitted” to just-auto.

The interesting part is the alleged why.

(Read More…)

“A stands for attack,” pronounced  Dieter Zetsche, CEO of Daimler Benz, in Geneva, With a quivering stach, Dr. Z unveiled Daimler’s new attack dog, the new A-Klasse. (Read More…)