Posts By: Bertel Schmitt

By on January 18, 2010

Doubling of hybrids, taken way too literally. Picture courtesy howbits.com

Toyota plans to roughly double its global production of hybrid vehicles to 1 million units in 2011, The Nikkei writes. Toyota alerted parts suppliers that it intends to roll out about 800,000 hybrids domestically in 2010, around 900,000 in 2011 and roughly 1.1 million in 2012. (Read More…)

By on January 18, 2010

Yes, it is. No, it isn’t. Picture courtesy markstivers.com

A lot of what we have written in the last few days, even what we have not yet written, is utterly wrong, say the objects of our writings. Here are the denials of the day. (Read More…)

By on January 17, 2010

Axela-break. Picture courtesy motortrend.com

Divorce Sunday: Mazda and Ford will dissolve their joint venture partnership in China by 2012, The Nikkei [sub] writes.

The Chang’an Ford Mazda Automobile Co. has been producing cars since 2006. The JV is 50 percent owned by Chang’an, 35 percent by Ford and 15 percent by Mazda. (Read More…)

By on January 17, 2010

Dead tête-à-tête? Picture courtesy bmwblog.com

More than a year ago, TTAC reported top-level attempts of a cooperation between BMW and Daimler. At the time, we didn’t give the cooperation big odds. Our educated prediction: As much as the heads of the automakers may desire mutual aid, middle management and especially the engineers will torpedo any tête-à-tête. “If you think South Korea and North Korea have communication problems, then you should be in a meeting between Daimler and BMW engineers,” was our analysis (based on input of people who have been in those meetings.) And we wrote: “Currently, Daimler and BMW don’t share much more than common pain.”

Supposedly, they kept talking. They could agree to joint purchasing of parts, but even that didn’t progress beyond less than lofty goals. Projects which promised savings of hundreds of millions, such as the joint production of transmissions and engines, went absolutely nowhere.

Now, Der Spiegel reports that all talks about possible jointness between Daimler and BMW have been called off. “There are no new meetings,” said a top manager to Der Spiegel. “There is nothing to talk about.” (Read More…)

By on January 16, 2010

Nice couple: Suzuki and Winterkorn. Picture courtesy dawn.com

Yesterday, Volkswagen became the Suzuki’s top shareholder. VW transferred $2.4b in return for a 19.9 percent stake in Suzuki. Suzuki turned around immediately and used $1b of the money received to buy stock in Volkswagen. Consider the couple as intertwined.

With the marriage sealed, both companies went right to work. (Read More…)

By on January 15, 2010

Rich uncle in America. Picture courtesy blogcdn.com

GM sent Opel “an additional $930m in temporary aid until more permanent financing can be found” (good luck with that,) GM disclosed in a filing with the SEC. The total financing GM has provided to Opel now stands at $1.83 b, writes the DetN. It’s not that GM sent the money out of the kindness of their hearts. (Read More…)

By on January 15, 2010

Buried hopes. Picture courtesy izismile.com

Remember the BRIC countries, saviors of the auto industry? Brazil, Russia, India, China.  Brazil (+11.35 percent,) India (+18.7 percent) and especially China (+45 percent) performed as advertised. But Russia? Russia’s car 2009 car sales are such a disaster that BRIC will stay BIC for the foreseeable future.

Russia’s new car sales tanked by 49 percent in 2009 to just 1,465,917 units, according to data of the Association of European Businesses in the Russian Federation. (Read More…)

By on January 15, 2010

Drive time in Beijing. Picture courtesy chinadaily.com.cn

Did we say that the auto industry has to deal with severe capacity problems? China has capacity problems alright. It looks like the biggest impediment to further sales growth in China is a shortage of cars.

China’s car makers are running three shifts and still cannot keep up with the demand, Bloomberg reports. Nissan’s factory in central China is making cars almost 24 hours a day, yet customers are faced with three month waits for their new car. Other companies, such as Ford and Honda, are running their Chinese factories at full capacity, with overtime and weekend shifts, and still can’t deliver enough cars. (Read More…)

By on January 15, 2010

European passenger car registrations 2009. Picture courtesy ACEA.be

Europe avoided the worst of carmageddon. While the U.S.A. was down 21.2 percent in 2009 and China was up 45 percent, Europe as a whole ended 2009 with the same sales as in 2008, more or less. According to data released by ACEA, the European Union survived 2009 with a slight drop of 1.6 percent. (Read More…)

By on January 14, 2010

S-classy Chinese cruiser. Picture courtesy Thetycho.com

People have a refound appetite for luxury vehicles, decided Daimler. Their workforce in Sindelfingen is working full-time. Wonders of wonders: They even brought temporary workers back. All this as per the Frankfurter Allgemeine Zeitung [sub] in Germany. Reason for the sudden Benz boom? (Read More…)

By on January 14, 2010

It’s not that hey don’t like Hummers in China. Picture courtesy thetycho.com

And another Wale of a story: Just as production of the Hummer H3 and H3T is c oming to an end in Shreveport, LA, Kevin Wale, Prez. of GM China, says he hopes Chinese regulators will finally approve the sale of Hummer to Tengzhong.

“I’m optimistic that it’s going to happen,” Wale told the Freep reporters on the sidelines of the Automotive News World Congress in Detroit. “Tengzhong is not an established manufacturer and that’s an issue that needs to be addressed with the Chinese regulators.” Uh-oh. (Read More…)

By on January 14, 2010

Why is this man smiling? Kevin Wale. Picture courtesy astroman.com

Kevin Wale, president of GM China, is convinced that China has passed the U.S. for good as the world’s largest auto sales market. He expects China’s growth to continue, creating a gap that will be too large for the U.S. to close, says AP.

As reported ad nauseam, vehicle sales in China last year rose 46.2 percent to 13.64m units. For this year, cautious industry association projections expect somewhere between 15m and 16m units to change hands.

Wale thinks Chinese auto sales will be anywhere between 14.5m to 15.5m by the end of this year. For the U.S., analysts predict 11.5m to 12m.

Very optimistic analysts reckon the two countries could be trading places until 2015 when China firmly takes the lead. Wale isn’t one of them.  He doesn’t think the U.S. will ever regain the lead. (Read More…)

By on January 14, 2010

Ho Chi Minh City (formerly Saigon.) Picture courtesy lookatvietnam.com

The U.S.A. dispatches its Secretary of State to complain to Japan about less than 8000 vehicles exported from the U.S. not benefiting from the Japanese cash-o for clunker-u. At the same time, a new car market is starting to explode, without anybody noticing: Vietnam.

Vietnam imported 76,300 units in 2009, nearly 10 times the U.S. exports to Japan. The increase was 51 percent on the year, an all-time high, the Nikkei [sub] reports. Sales of domestically manufactured vehicles were 115,000 units in 2009, up only 3 percent, but still a record. A total market of some 200,000 units is not much compared to neighbor China, but it’s a strong start. (Read More…)

By on January 13, 2010

They all qualify. Picture courtesy japanesenostalgiccar.com

The nerve, the nerve: U.S. Secretary of State Hillary Clinton told Japanese Foreign Minister Katsuya Okada when they met – halfway in Hawaii, so that both had to travel – on Tuesday “that concerns are rising in the U.S. Congress” about Japan’s cash for clunkers incentive scheme, Reuters reports.

As if there aren’t other pressing problems. Such as the economy, global warming, saving the whales, or saving the Marines on Okinawa. (Well, they discussed the Marines. Inconclusively.)

Under the belated Japanese C4C scheme, consumers get up to $2,800 if they trade in their 13 year or older car for new vehicle that meets the 2010 fuel economy standard of 35.5 mpg.  So far, so good. (Read More…)

By on January 13, 2010

Zetsche, hiding the injured left shoulder. Picture courtesy BILD.de

Daimler’s Dieter Zetsche arrived at NAIAS with his left arm in a sling. What happened? Too much arm wrestling with unions or suppliers? Nah, that would be the right arm. Turns out, Dr. Z was injured by a woman. On the ski slopes in Austria, a female snowboarder had crashed into Zetsche. Left shoulder fractured. Dr. Z wore a helmet, which avoided more serious damage.

Germany’s BILD Zeitung reports that doctors at the Austrian hospital prescribed at least 6 weeks of strict convalescence. Says BILD: “Daimler’s boss ignored them. He popped some pain killers, flew to Detroit with shoulder and arm bandaged. Courageously, he presented the new Mercedes products.”

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