Renault already upset the European car market with its low cost Logan, which goes for around €7,700 (approx $10,000) in France. If the French newspaper La Tribune has its sources straight, then Renault could be coming out with a car that is priced like a high-end bicycle.

Renault allegedly is working on a car that will cost €2,500 ($3,350). France’s wire service Agence France Presse says it is not true, but la Tribune sticks to its guns and says that it maintains that its “proprietary information” is correct. According to TTAC’s proprietary information, AFP is wrong, and La Tribune is on the right track. (Read More…)

Reuters reporter Ben Klayman, part of their stellar Detroit team, assisted by Christiaan Hetzner in Frankfurt, did a great piece about the grim options that await Steve Girsky and his merry band of hatchet men when they go over to Europe to whip Opel in shape. It could actually be the end of Opel instead of a glorious future, the report says.

“Options for restructuring Opel range from bad to worse and could include a form of bankruptcy, analysts and bankers say. Costs will have to be slashed further, steps that could include politically charged job cuts and plant closures in Europe. Girsky, who was named chairman of Opel’s supervisory board on Monday, could look for new partners for Opel to share costs, and even return to the idea of selling the brand once it has been repaired, analysts said.”

Adam Jonas, analyst at Morgan Stanley, Girsky’s former employer, says it best:

“You can’t say the words ‘all options are on the table, we rule out nothing’ unless there’s something fundamentally changing.” (Read More…)

One of my first jobs as a rookie copywriter in 1973 was the Passat. The Passat, basically a rebadged Audi 80, was the first of the new generation (Passat, Scirocco, Golf, Polo) that saved Volkswagen from eternal damnation and laid the groundwork for Volkswagen’s success today. (See, rebadging isn’t all that bad, it just has to be done right.) Ever since, well over 15 million Passat were built in all shapes and forms. And now, the Passat goes crossover.

First, the name: Passat Alltrack. (Read More…)

Carnewschina has spotted the Chevy Volt EV at the Guangzhou Auto Show. This time, it’s not just for show. Carnewschina brings the news that the Volt “has been officially listed on the China car market as an import.” This means, it’s street legal, and it’s ready for impending sale. Buyers need to bring a lot of money: A Volt costs 498,000 yuan in China, or 78,300 US dollar. That will probably remain unsubsidized. According to (unreliable) talk in China, subsidies are for made-in China vehicles only. Or not. We’ll see.

Japanese automakers in Thailand are resuming production in the inundated country, all except Honda. (Read More…)

When I was deposed for my divorce, the other side’s lawyer wanted to know, for some unimaginable legal purpose, how many times my then and soon to be disposed-of wife rode with me on my 90 mph offshore raceboat.

“Once.”

“And why was that?”

“It mussed up her hair.”

At which point my lawyer, who also knew her way around her husband’s much more powerful supercat raceboats, chirped in and said:

“It can get worse. Sometimes, the wind is known to rip your clothes off.”

The court reporter guffawed, then hit her keys with extra energy. The other side’s straight-laced lawyer blushed and moved on to other lines of questioning.

That little episode crossed my mind when I opened the email from Porsche which announced the impending (March 3 2012) availability of the topless models of the 911 Carrera and 911 Carrera S in the new 911 design. (Read More…)

Opel workers and managers are deeply worried: It’s not just cuts that are coming. GM is sending a team of feared slashers. Says the Wall Street Journal:

“Vice Chairman Steve Girsky, GM’s second-highest-ranking executive, will become chairman of the Opel supervisory board. Tim Lee, president of GM’s international operations, and financial chief Daniel Ammann also will join the Opel board, the company said.”

Supposedly, GM was surprised and appalled that the European business hit GM’s bottom line with an operative loss of $292 million in the third quarter, despite increased sales. I am not surprised at all. I have always warned that restructuring Opel and cutting jobs is an expensive exercise. And those costs were mostly delayed into the third quarter.

Now Girsky and his team of handpicked hatchet men are coming. (Read More…)

That interview with Volkswagen CEO Martin Winterkorn is a treasure-trove of information. It also gives an insight into Volkswagen’s strategy with rambunctious Suzuki: It will be a Sitzkrieg.  Volkswagen seems to be intent on waiting things out until Osamu Suzuki passes away.

Winterkorn will be at the Tokyo Motor Show. Someone with a perverse bent made Volkswagen (booths EP06 through EP10) close neighbors of Suzuki (EP12). Only Mitsubishi (EP11) keeps the brawling couple at distance. But Winterkorn doesn’t have Osamu Suzuki on his dance card:

“A meeting is not planned. Should we run into each other, then we can talk about everything. There is one exception: Our 19.9 percent share is not for sale.”

Asked how Winterkorn intends to settle the matter, he answers: (Read More…)

Volkswagen had painted a bulls-eye on Toyota and wanted to beat the Japanese by 2018. At least in terms of production numbers, Volkswagen will have Toyota beat this year. Instead, VW has to contend with GM.

The long-term new energy strategy of Volkswagen and Toyota on the other hand could have been devised in a joint planning session. Volkswagen believes that near-term, the plug-in-hybrid has a great future, whereas Volkswagen’s CEO Martin Winterkorn won’t live long enough to witness the boom of the pure electric car.

The German newspaper Handelsblatt has an interview today with Winterkorn. It echoes in large parts the interview which I had ten days ago with Toyota’s Chief Engineer Satoshi Ogiso. The two sound amazingly similar: Bullish on plug-in hybrids. Cautious on EVs. (Read More…)

We have been following this phenomenon for a while. Joint ventures in China create faux Chinese brands. Because? Because it’s the right thing to do, at least as far as the Chinese government is concerned. Officially, the reason for those fake Chinese brands is to make cars more affordable. Off the record, automakers roll their (slanted and round) eyes at this reasoning. A new brand doesn’t miraculously make a car more affordable. In the contrary. To establish a brand costs money. To establish dealer networks costs money. To build new cars costs money, even if they are on passé platforms. But you’ve got to do what China’s bureaucrats think you’ve got to do. Possibly, all these joint venture brands, from GM’s BaoJun on out, will end up in nice statistics that prove that homegrown Chinese brands are selling, and that exports are up.

Why the rant? Nissan and Dongfeng show the first production model of the faux Chinese Venucia brand at the Guangzhou auto show. (Read More…)

Hyundai, which has a flourishing and fast-growing joint venture with Beijing’s BAIC, is jumping on the bandwagon of fake Chinese brands. Probably not on Hyundai’s own volition, and probably with a lot of gentle urging by the Chinese government which thinks that the answer to China’s cluttered market is brands, brands, and  more brands.

Carnewschina has it that the new brand of the Hyundai/BAIC JV will be called “Shouwang.” (Read More…)

Quite ironically, foreign carmakers, namely GM and now French PSA, help China kick-start its ailing export machine.

Everybody had been hysterical about cheap Chinese cars that would soon flood the market, but it didn’t happen. Quite the opposite is happening: Joint venture brands, led by General Motors, are grabbing a larger and larger share of the Chinese market. And foreigners are gearing up to get China a chunk of the world market. (Read More…)

Carnewschina finally found the reason why supercars are gobbled-up in China with ferocious appetite:  Supercar weddings. Getting married and making children is all the rage in China (2 or more children is a special sign of affluence), and don’t you dare showing up by bicycle or taxi if you are invited. You won’t be invited again. (Read More…)

Volkswagen personnel at the LA Auto Show is intently studying reactions to a Beetle with possibly 270 hp. After all, it was public reaction at the 1994 NAIAS that brought the New Beetle to life. Originally, it was meant as a lark, but enthusiasts pounded the table until the car was made. It suffered the fate of cars powered by enthusiasts: An initial pop, then declining numbers. On display in LA is what they call the “Beetle R Concept.”

Careful: This is NOT the 2012 Beetle Turbo as tested by Jack Baruth. If they ever build the Rrrrrr model (and the ooohs and aaahs in LAhhhhh will influence that), it will come with an impressive added oomph. Nothing is known about the motorization of the brawny bug, but Volkswagen’s press department offers-up enough material for educated guesses:

“At Volkswagen, the letter ‘R’ as an added identifier promises top-notch performance. Currently, this claim is being validated with turbo pressure by the Golf R with 199 kW / 270 PS of power and the Scirocco R (currently only in Europe) with 195 kW / 265 PS. As an ‘R’, the Beetle could demonstrate a performance potential similar to that of the Golf R and Scirocco R.”

Well duh, all three are based on the same platform. All it needed were extra air intakes for the blower and a rear spoiler that is “significantly larger than the one on Beetle production models with up to 200 PS in power” to generate the required “ideal downforce values.”

If you are one of those who are itching to buy a new car after years of economy-induced withdrawal, one of the many questions that may run through your mind is the exit strategy from that shiny new car. In other words: How well will the car hold its value? If you want the executive summary: Buy just about any Toyota, Lexus, or the 2012 Jeep Wrangler.

If you need more detail, hit the jump. (Read More…)