If the German magazine Focus is informed correctly, then Dr. Z’s days at Mercedes are counted. Focus heard that Wolfgang Bernhard will run Mercedes, while Dr. Z. will run all of Daimler. „In a second step, Bernhard could succeed Zetsche 2012 as Daimler CEO,“ says FOCUS.  Currently, Bernhard is responsible for production and purchasing of Mercedes. (Read More…)

In the wake of GM re-taking full control of  Opel, Opel’s former boss Hans Demant stepped down to make room for Nick Reilly. Demant’s new title was GM Vice President, Global Intellectual Property Rights. His job was described as being “responsible for protecting GM’s property rights globally, for example in conjunction with business alliances, partnerships and transactions.”

That job is the GM equivalent of keeping track of the Willow Ptarmigan, Common Ravens, and Snow Buntings population of Nome Alaska. It comes as no surprise that Demand quit. At age 59, he could have taken early retirement. Instead, he took a job with the competition. (Read More…)

Chinese motorists are spared the joy of ethanol. In China, corn will continue to be eaten, not driven. China’s state news agency Xinhua reports that agricultural experts decided that it is “too early for China to adopt corn-based ethanol fuel to feed automobiles, given the expensive production costs and the country’s large population.” The short version is: “Ethanol? Bu yao!” (No want.) (Read More…)

What is the fastest sedan under the sun? Up until a few days ago, it was a Mercedes E-Class, tuned by Brabus. That car can kiss the world record good-bye. (Read More…)

Automobilwoche [sub] picked up strong signals that Volkswagen is interested in adding Alfa Romeo to their growing roster of brands. Last December, Marchionne had put Alfa on strategic review, and gave the brand, as Ed Niedermeyer put it so delicately, “a year to get its proverbial shit together.” They popped some Imodium, and  in April, Marchionne was “determined” to build the brand into a “full-line premium carmaker.” Nevertheless, here and there whispers had popped up that Alfa could be sold if the right buyer would show. (Read More…)

Did we mention that Hyundai is doing well in the U.S.? Sales up 21 percent for the year. Hyundai cars sold in the U.S. average about 30 miles per gallon, the best fuel efficiency in the industry. Jack Baruth loves his 2005 Hyundai Accent so much that major portions had to be redacted such as not to conflict with indecency laws. Can Hyundai do much better than that? They think they can. How? No idea. (Read More…)

China’s Chery started selling cars in Brazil last year. They were shipped from a Chery factory in Uruguay. The Brazilians like the cars so much, especially the TIGGO SUV, that Chery decided to drop $700m on the Brazilian market, and to have an assembly plant up and running in Sao Paulo by 2013. (Read More…)

After the onset of carmageddon, premium and luxury cars were considered as unsalable. According to mutual agreement, the future of the automobile was small ecoboxes. If there was any future at all.

Fast forward to Germany … (Read More…)

Stefan Jacoby, formerly chief of Volkswagen of America, took over the wheel at now Geely-owned Volvo. That answers the question raised a few weeks ago whether he still has the job. He does.

Jacoby moved with his whole family to the Hissingen district of Göteborg, Sweden. close to Volvo’s headquarters. That answers the lingering question whether Volvo will be dismantled and moved to some city in China nobody has ever heard of and nobody can spell.  Not going to happen. At least not for the moment. Volvo will be managed from Sweden by a German who answers to Chinese owners. And who daydreams of a Bentley … (Read More…)

In June, we reported about a catfight between Porsche and Audi. The bitching and eye-scratching was about who will design the kit for all future sports cars of the Volkswagen empire. The contenders: Audi and Porsche. The thinking was that the fight is just for show. And it was. If Automobilwoche [sub] has it straight, then Porsche will not just develop the mid-engined kit for all sportscars. Porsche will lead the engineering of the complete kit and kaboodle. (Read More…)

The Japanese auto industry is staring at the calendar like a rabbit at the snake. October 1, the rabbit will be dinner. October 1,  government subsidies for purchases of “environmentally friendly vehicles” (read pretty much any new vehicle that passes Japanese rules) will be no more. According to popular wisdom, come October, the Japanese new car market that had enjoyed double digits growth rates, will go poof and implode.

So what to do in a country where with the exception of flu masks, the Top 10 list of popular products ”was dominated by low-priced retail merchandise and eco-friendly products as consumers pinched pennies and took advantage of government stimulus subsidies” as Reuters put it? Simple: Local subsidies. (Read More…)

When I was a young and budding Creative Director on the Volkswagen account (some time in the wild 70s,) I was told that there is only space for 10 automakers on this planet. In 2008, Marchinonne said there is room for 6. Now, the odds are there is Lebensraum for 3 to 5 automakers, depending on who you ask.

The prophets don’t seem to look around when they say that. The annual OICA list of the world’s largest automakers has 50 positions. In China alone are anywhere between 60 and 120 automakers, nobody seems to have a definitive number. Since I was a young and budding Creative Director on Volkswagen 30 years ago, the number of carmarkers worldwide has risen dramatically. It looks like the minute a country turns from a “developing country” into an “emerging country” (whatever that may be,) they want at least one of their own automakers. Even Iran has a couple of sizable automakers, they aren’t on the OICA list, and it’s not for a lack of units made.

If it would be true that one needs annual output in excess of 5m cars to survive, then our choices would be limited to Toyota, GM, and Volkswagen. Reality looks different.

The motorized mass mortality doesn’t seem to happen, and it won’t happen anytime soon. (Read More…)

So there’s this huge metal stamping plant in Indianapolis. The current owner wants the workers to accept huge pay cuts so that the plant can be sold off to another buyer. The plant is a UAW shop. What does the UAW do? Paint picket signs? Threaten strike? Chant “solidarity forever?” Threaten to bust the rotten deal if the working stiff has to pay for it? Not this time. The plant in question is a GM plant. Through their union’s health fund, the UAW owns a good chunk of GM, and every owner of GM wants that stamping plant deal to close ASAP. There is an IPO in the works. (Read More…)

When I had business at Volkswagen, arriving at Wache Sandkamp, I was always asked whether I have a cell phone on me. “Ja,” I said. “Does it have a camera?” “Nein,” I said. The guard didn’t want to see the phone, and I could keep it.

At Chrysler’s big dealer convention, to be held in September in Orlando, they won’t be so lenient. Dealers have already been told to leave all cell phones, video equipment and cameras in their hotel rooms. To ward off the intrusion of rogue recording equipment, metal detectors will be put up at the show’s entrance. (Read More…)

Malaysia is a country of close to 30m people and Volkswagen wants a slice of the pie. They already tried, but found out that getting a slice is not a piece of cake. Playing footise with Malysia’s Proton was a perennial on again, off again affair that led to nothing. Last time, it looked like VW would set up a CKD operation in Malaysia by themselves, but now it seems that they have found a partner. Not Proton. Not again. (Read More…)