Management changes at Porsche. CEO Macht will be disempowered, or “entmachtet”, as the Germans say. „It becomes clear that Winterkorn will change out the top management at Porsche and will replace it step by step with confidantes from his inner circle,” writes Automobilwoche [sub]. (Read More…)

In another case of unthought-through consequences, the cheered-on push for a stronger Chinese currency and higher wages strengthens the competitiveness and quality of Chinese products through increased automation of assembly lines.

Bloomberg reports that Nissan, together with the joint venture partner Dongfeng, is building a 5 billion yuan ($732m) plant in Guangzhou with the newest in automation. The factory is scheduled to open in 2012. In addition, Nissan spent about 1 billion yuan ($147m) on a second production line with the latest equipment at their Zhengzhou factory.

This is not an isolated incident. “The automation rate in China is on the rise,” said Nissan spokesman Mitsuru Yonekawa.  “We need to boost productivity in China,” COO Toshiyuki Shiga said. “Just because labor costs are higher in China, we won’t be leaving.”

It stands to reason that Japanese car makers would rejoice over rising wages in competing China and over an appreciating Chinese currency. Rising wages make production there more expensive, a rising Yuan makes exports more expensive. Both should give the Japanese more breathing room. That reasoning is falling by the wayside. The Nikkei [sub] reports that these developments pose ”serious threats to Toyota’s profitability in China, strategic challenges that other Japanese companies must also deal with.” Just goes to show that you need to be careful what you wish for. And wait who else should worry. (Read More…)

42-year-old Toshiaki Hikiji, who says he was fired by Mazda as a temporary worker, allegedly hit 11 Mazda employees with a Mazda Familia at Mazda’s plant in Hiroshima, Japan. Hiroshima Police says he managed to kill one. (Read More…)

Remember GM’s Heated Windshield Washer Fire Fiasco? The one where the “Hotshot” unit got so hot that cars went up in flames? It sounded like it was a dispute between GM and the now defunct Microheat. Our friends at Carquestions did a little investigative reporting. Result? (Read More…)

I’m afraid our friends over at Gasgoo need a little parental oversight. Or the good folks at China’s premiere auto business site shouldn’t been drinking while posting. Today, they report that the Chinese government invested 5 billion yuan ($736m) in the “cash for clunkers” program last year. As of May 31, only 1.7 billion yuan ($250m) were handed out, with 3.3 billon yuan ($486m) left. No surprise to us. We never thought much of the program. In January, we said: “Due to the relatively young fleet in China, the impact of the cash for clunkers program on sales is expected to be small.” So far so good.

Now for a huge leap of logic:

“Therefore, the country’s automobile consumption in the next seven months will certainly be doubled,” say our friends at Gasgoo.

Shenme? (Say what????) (Read More…)

Japan’s boutique car builder Mitsuoka may be more known for the retro-classic cars depicted above – if Mitsuoka is known at all beyond the realm of Nippon. Now, the folks at Toyama’s most famous car manufacturer can’t help themselves any longer, and must join Japan’s current fad … (Read More…)

Give it a little while and the snickering about uninspired, or foreign-inspired Chinese car design can end. Carrozzeria Bertone has signed a partnership agreement with the Raffles CU International College, an affiliate of the Changchun University in northeastern China. Next to Shanghai, Changchun is the second-most important auto manufacturing center in China. It is dominated by FAW and its joint ventures with Volkswagen and Toyota. (Read More…)

Toyota was (after Honda) the second Japanese car company that came down with the current Chinese strike bug. Toyota is gladly taking a back seat on this. They solved their problems much quicker than Honda. Toyota said today that their largest plant in China will definitely be open for business on Monday. (Read More…)

“Flirtation between Nissan and GM has a rich history,” said our Dear Leader. Here we go again. This time, with the whole cabal. Renault’s Ghosn has put an entry in the Match.com of the auto trade. Reuters says that Renault could work closely with a U.S. partner if the occasion arose, but it is not crucial. Not only is Renault flirtatious, they make it sound like it’s a no strings attached kind of a thing. It never is … (Read More…)

A strike at two Toyota-affiliated parts makers brought Toyota’s largest assembly plant in China to a halt. No parts, no cars. Toyota’s factory in the port city of Tianjin near Beijing stopped production on Friday. A day later, it is unclear if production would resume on Monday, Reuters says.

The strike at a small plastic maker stops production at Toyota’s most important plant in China. (Read More…)

The car was the champ of the German Abwrackprämien-mania of 2009: Retire your clunker, collect €2000, and for just €5000 of pocket-change, you get a real car with a real trunk and 4 doors: The Dacia Logan. The car, built in Renault’s Romanian subsidiary  sold more than 150,000 units ion Germany since its introduction. It drove car executives bonkers, and engineers to their workstations to design low-cost cars. Now, it’s being pulled off the market. The reason? (Read More…)

In the first nine months of the current fiscal year Porsche sold slighty fewer cars than in the same period of the previous year. But they made more money: They are looking at operating profits of €0.6b  on sales of €5.2b. That’s a double digit operating profit, ladies and gentlemen, and none of the put and call hanky-panky is included. Now what do you think is the catalyst for the wunderbar numbers? Are you sitting down? (Read More…)

Now here is the perfect place for  electric vehicles: Hong Kong. Range anxiety? Not here.  Hong Kong is a city where no trip is more than 20 miles or so one way. Driving into the hinterlands is blocked by a border and by the necessity for secondary mainland Chinese license plates. Registration taxes on cars are high, they vary from 35% to over 100%, based on the size and value of the car.  Gasoline prices are high, about half of the price is tax. Fertile grounds for EVs. (Read More…)

The Honda strikes have been settled – more or less. Now it’s Toyota’s turn. Workers at an auto parts factory in Tianjin, China, run by a Chinese subsidiary of Toyoda Gosei,  42 percent owned by Toyota, went on strike Thursday and had not returned to their jobs today, a Toyoda Gosei spokesman confirmed to the New York Times. The factory makes plastic parts for a FAW-Toyota joint venture assembly plant in Tianjin. It’s not the only strike that affects Toyota. (Read More…)