In February 1991, Volkswagen signed its second Chinese joint venture deal with First Automobile Works (FAW) in frigid Changchun in Northern China. This deal, and the older JV with SAIC turned into the cornerstone of Volkswagen’s world domination plans. In no country does Volkswagen sell more cars than in China – and it wants to double the current number in a few years. Written for a 25 year term, the joint venture with FAW would end in 2016. It won’t. It has been extended for another 25 years.
The old contract is still good for a few years, so why the rush? Well, there was that other matter. (Read More…)
A few weeks ago, Toyota’s CFO Satoshi Ozawa told an astounded press corps (and I paraphrase for brevity): “Sure, the riots in China have an effect, but we’ll make it up elsewhere in the world.” Today, we have the data that prove Ozawa-san right. What’s more, he could have spoken for all his Japanese peers. Yes, the boycott of Japanese cars in China caused drastic cutbacks at large Japanese automakers. However, all are doing so gulpingly well elsewhere that a buyer strike in the world’s largest car market turns into nothing more than a hiccup. (Read More…)
A China-made Cadillac XTS was announced and expected for “this fall, just months after the car’s North American launch.” It has not appeared yet. But they are working on it hard, as the picture by Carnewschina attests.(Read More…)
BMW will enter marketing history by bringing McDonalds to the automotive industry. Just like McD took one food platform as the basis of a panoply of products (Hamburger, Cheeseburger, Double Cheseburger, McDouble, Daily Double) BMW’s MINI perfects the art and science of mass customization. The latest iteration: The long awaited Mini Paceman, debuting for North America at the Los Angeles Auto Show. (Read More…)
Smart asked fashion designer Jeremy Scott to come up with a special version of the smart fortwo electric car. Much to the horror of Daimler engineers who were used to fashion designers submitting patches of interior materials and color schemes, Jeremy Scott did put his trademark on the car: Wings, sprouting on both sides, and likely wreaking havoc with the CW coefficient. (Read More…)
Driven by a rebounding economy and an after-Sandy pop, auto sales in November will be be “highest since February 2008,” expects Jesse Toprak, senior analyst at TrueCar.com. Sales chiefs at major automakers agree. (Read More…)
In-car entertainment and navigation systems bamboozle customers and ruin the out-of-the-box experience.”You see a lot of people get into the vehicle, and they can’t figure out the damned system,” Mark Harland, manager of GM’s connected customer team, told Reuters. “They get frustrated, and they get online and bash it, and that ends up on J.D. Power and Associates.” GM decided to do something about it. Will it make the damned systems more intuitive? No, it throws 25 people into the fight against technological ignorance. It has been tried before … (Read More…)
Shai Agassi thought Better Place was the secret sauce to spice up electric vehicle sales: Swappable batteries as a service, the answer to high battery prices (hidden in a pay-as-you-go model,) range anxiety and long charge times. Instead, Better Place emerges as a novel way to destroy money. Better Place posted third-quarter loss of $71.2 million, greater than $65.8 million a year earlier. The total loss for the January to September period stands at $203 million, Reuters says. Better Place accumulated losses of $561.5 million. (Read More…)
Mumbai tractor moguls Mahindra & Mahindra hope to emerge as owners of Aston Martin by the end of the week, but Italy’s InvestIndustrial shares the same aspirations, reports Reuters from the sidelines of the bidding war for the British sports car maker. While the world waits for the hammer to come down, scientists make a perplexing discovery. (Read More…)
Reuters calls it “one of the more bizarre joint ventures in car-making,” and it is coming to an end. South Korea’s Unification Church, better known as the Moonies, is giving up its investment in the one and only carmaker in North Korea, Pyeonghwa Motors. “Giving up” is carefully chosen: The church will walk away from the business, and donate its 70 percent stake to North Korea. (Read More…)
Ford and TTAC think alike. A few days ago, we told you that “the Chinese government wants its joint ventures to venture into China-only brands, and even a Ford won’t succeed in resisting governmental charms.” And a few days thereafter, Carnewschina reports that Ford has succumbed: No longer One Ford adds a new brand to its stable. It is called ‘Jia yue’, which Carnewschina translates as ‘Good Leap’. (Read More…)
Joel Ewanick is not on a good trajectory. The former rock star marketing chief of Hyundai, and later defenestrated global marketing chief of GM, hired on as “Chief Commercial Officer” at Fisker. Not even that. He will be interim Chief Commercial Officer until Fisker has found a suitable replacement for allegedly retiring Richard Beattie. Beattie had signed on last December. (Read More…)
Nissan’s Infiniti is joining high-powered nameplates such as Ferrari, Lotus and Mercedes and becomes title sponsor of a Formula One racing team. Under a four year contract, the highly successful Red Bull Racing team will change its name to Infiniti Red Bull Racing starting with the 2013 season. (Read More…)
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