China has become a world automobile producing and consuming power, but it should also be noted that the industry still lacks core technology and has weak innovative capabilities… This creates hidden dangers for public safety
The closest thing Toyota has given to an explicit accounting of its unintended acceleration woes is the admission that rapid growth detracted from the company’s previously unquestioned commitment to quality. With the Chinese auto market growing even faster than Toyota was, the Chinese Central government is anxious to prevent such nasty side-effects of rapid volume growth from manifesting themselves in the domestic auto industry. And well it should be: with Chinese automakers like BYD poised to launch overseas sales campaigns, the Chinese auto industry is at a crucial stage in developing its international image. China’s Ministry of Information and Technology has released a statement [via DetNews] urging its domestic automakers to heed Toyota’s example, and adopt “new technology, new techniques, new equipment and new materials” to master the balance between profit and quality. And hopefully move past the image of hand-assembled batteries and carbon-copy design while they’re at it. Meanwhile, Toyota is feeling the hurt. Stung by calls by the government to compensate Chinese drivers, Toyota-FAW fell from China’s top ten sales list. Toyota China reported a 30 percent rise in sales in February, but at 45,400 units the firm was still way down from its 72,000 unit January performance.
We still own the Ralliart name, and we still intend to brand our cars with it. The biggest change for us is that we won’t have to pay royalties to use the name anymore,
Mitsubishi North America spokesman Maurice Durand explains to Automotive News [sub] why the death of Mitsu-owned racing firm Ralliart is actually kind of a good thing. After all, how many Americans really watch rallying often enough to know or care whether Mitsubishi’s erstwhile rallying partner has anything to do with the cars that bear its name? The fact that the Lancer Ralliart has a two-liter turbocharged engine and AWD is what consumers will notice; using a brand name that leaves no doubt as to the inspiration for the trim level does everything it needs to from a marketing perspective. Whether a team named Ralliart actually races similar vehicles is, in the modern marketing context, almost completely irrelevant. After all, Subaru isn’t even competing in the World Rally Championship at all anymore… the old “win on Sunday, sell on Monday” adage couldn’t be more dead.
Remember Maybach? With eight years and untold millions now spent in a futile attempt to dethrone Rolls-Royce at the tope of the automotive pecking order, it seems that the monument to Daimler’s arrogance and greed will be going the way of Pontiac and HUMMER. Auto Express reports that
The firm plans to launch mildly facelifted versions of its three-model line-up – with new grilles and LED lights likely to be the only changes – before the marque is allowed to slip away.
Bosses have now privately admitted plans to wind down the brand – resurrected in 2002 – due to disappointing sales. The Maybach decision is part of Mercedes’ wider plans to take the next-generation S-Class upmarket.
Will there be any tears for the world’s most pimped-out S-Class? Of course not. Despite actively courting celebrities, and later, actually marketing the brand, Daimler was never able to break its super-luxe brand into the stratosphere of household-name luxury. At least not for more than a few months during relatively go-go economic times. As we recently noted, the experiment has conclusively failed. Maybach has nowhere to go but the ash heap of history. If we ever miss it too much, we’ll be sure to buy a brand-new, fully-loaded S-Class and take it to the least-tasteful tuner we can find.
It’s a little-known fact that nearly half of the 2,000 or so dealer franchises that GM began winding down during bankruptcy were Cadillac stores, most of them located in rural areas. The General’s plan was to focus Cadillac’s dealer network on standalone stores in major metropolitan areas, following the strategies of more premium luxury competitors like BMW and Lexus. But having marked 922 largely small-town Caddy dealers for death, GM saw 2009 sales of its luxury brand fall 15 percent, or twice the rate of Buick and Chevrolet in the same period. The lesson: small-town Cadillac dealers (like attempts to sell the brand in Europe) are worthwhile after all. Automotive News [sub] reports, the majority of those dealers being reinstated are small-town Cadillac dealers. Will Cadillac’s brand integrity suffer by having to serve the small-town American market as well as competing with the European brands? Probably, but at least Caddy dealers can take heart knowing that things could still be worse: they could be Lincoln-Mercury dealers.
These “electronic defects” apparently discriminate against the elderly, just as the sudden acceleration of Audis and GM autos did before them. (If computers are going to discriminate against anyone, they should be picking on the young, who are more likely to take up arms against the rise of the machines and future Terminators).
McArdle’s graph of incidents by location (parking, freeway, etc) after the jump. (Read More…)
Chinese battery maker and aspiring automaker BYD earned $215m in the fourth quarter of 2009, bringing its net profit for last year to $555.2m, reports Automotive News [sub]. BYD’s performance outstripped analyst estimates, which projected fourth quarter profits of $130.5m, and full-year profits of $473.2m. Though the Chinese auto market grew 46 percent to 1.6m vehicles, 47 percent of BYD’s 2009 sales came from the firm’s cell phone battery business, which is expected to give back recent gains as the global economic crisis takes its toll. Not so with BYD’s auto business: the firm has raised its 2010 car sales projections 14 percent, with sales of 800k foreseen. And as China’s car market takes off, BYD, which has one of the nation’s best-selling cars in its F3 compact, is expected to keep growing. Says one JP Morgan analyst:
BYD is a company that can’t be underestimated. If the Chinese vehicle market expands 10 percent this year BYD’s sales will grow at least 40 percent — 50 or even 60 percent is also a possibility.
Quick, want to guess what the single piece brings more traffic to TTAC than any other? Thanks to an early Korean-spec test (don’t worry, further tests of the US-spec model are forthcoming) and the blessings of good Google rankings, our 2011 Hyundai Sonata review has been our single biggest source of traffic over the last several months. But getting a review out early isn’t the only reason so many folks are finding their way to TTAC by way of the Sonata: people are researching the car like crazy. Kelly Blue Book lists the Sonata as its number four most-researched vehicle, as does Edmunds.com, indicating that it’s poised to play with the perennial chart-toppers from Honda and Toyota. Meanwhile, Kia still has yet to make the jump to mainstream prominence, although its version of the Sonata (still unfortunately named Optima) could be an important step in Korea’s bid to make inroads on the US market. Certainly its Peter Schreyer-designed lines won’t have anyone confusing the Optima with a decontented Sonata.
Based on my experience in the 1980s helping investigate unintended acceleration in the Audi 5000, I suspect that smart pedals cannot solve the problem. The trouble, unbelievable as it may seem, is that sudden acceleration is very often caused by drivers who press the gas pedal when they intend to press the brake.
Say what? UCLA professor emeritus of psychology Richard A. Schmidt seems to believe that something other than demonic possession is causing Toyotas to accelerate out of control. Research into the Audi 5000 debacle showed him that even experienced drivers can in fact screw up, and that absent any provable mechanical or electronic failure, the chances are good that most UA events are caused by driver error. And in one of the best op-eds yet penned on the Toyota unintended acceleration scandal [at the NY Times], he explains how anyone could accidentally drive a car of any make out of control.
Flirtation between Nissan and GM has a rich history, dating back to 2006, when the two firms nearly merged, in a move that would have left Nissan-Renault’s Carlos Ghosn in charge of French-Japanese-American juggernaut. GM fought off Ghosn’s advances (and a stockholder rebellion) to stay independent, but with a post-bankruptcy IPO now looming, Ghosn has once again appeared on GM’s horizon. In a bit of in-depth speculation at Dow Jones Investment Banker [via the WSJ [sub]] Jamie Miyazaki and Alessandro Pasetti break down the pros and cons of a Renault-Nissan hookup with GM. Their conclusions: although, Renault is currently playing footsie with Daimler:
Over the long haul, looking west to General Motors in the U.S. could prove more fruitful for Renault than strengthening partnerships in Europe’s saturated market. Taking an equity stake in a reborn, and eventually relisted, GM would give the Renault-Nissan alliance exposure to the U.S. auto giant’s diverse geographic presence… GM [has] shifted about 37% of its total 2009 sales in Asia, South America and Eastern Europe, according to J.D. Power & Associates data. Throw in GM’s plans to ramp up its Indian operations and its large presence in the Brazilian market, where Renault is investing to roughly double its market share to 10%, and the Detroit giant’s allure is obvious.
After three separate bailouts totaling over $17b, Congress is beginning to wonder if keeping auto-finance giant GMAC alive was worth it. Forbes reports that the Congressional Oversight Panel reckons at least $6.3b of that money could be gone forever, as GMAC flounders towards barely breaking even. And like the rest of the bailouts, the fundamental problem is that the influx of federal cash has allowed GMAC to pretend like it’s not struggling for survival. The panel report [full document in PDF format here] notes [via Automotive News [sub]]
Treasury’s previous and current support is not underpinned by a mature business plan. Although GMAC and Treasury are working to produce a business plan, Treasury has already been supporting GMAC for over a year despite the plan’s absence. Given industry skepticism about GMAC’s path to profitability and the newness of the non-captive financing company model, it is critical that Treasury be given an opportunity to review concrete plans from GMAC as soon as possible.
The GM subsidized gravy train has ended and I no longer have access to employee priced leases so I will be replacing a Saab 97 and a Saab 93, numbers 11 and 12 in a long line of Saabs over the years.
Ford’s new Taurus-based Interceptor will be available with the 3.5 liter Duratec, or the twin-turbo Ecoboost engine. Front wheel drive is standard, and AWD will be an option. But then, if you got to use other people’s tax money to buy your work ride, would you really save the few bucks by not buying the 365 hp, AWD version? Of course not. You are the law! Libraries can always have bake sales. [via Jalopnik]
The former GM-Toyota joint-venture known as New United Motor Manufacturing Inc (NUMMI) in Fremont, CA is a big plant. Its nearly 5,000 employees can churn out over 400,000 compact cars and pickups in a year when operating at full capacity, which of course it hasn’t been for some time. With GM leaving the joint venture during bankruptcy, and Toyota currently winding down the remaining operations, those 4,700-ish employees and their 5.3m square foot plant need work. Local media call their outlook “gloomy,” noting that semiconducter workers will be first in line for the few new manufacturing jobs in the area, with a solar panel firm. But, in keeping with the green revival theme, an electric vehicle startup called Aurica says it’s in negotiations to take over NUMMI, where it says it will build unspecified EVs, in a venture that currently has an “undisclosed” finance plan. Are we buying this? Let’s look at some numbers.
When Ford announced that it would be building an “all-new” Police Interceptor model, speculation was rampant. At the time, we noted:
GM went to Australia for their police-duty RWD platform, might Ford do the same with a Falcon-based interceptor? Or is this the prelude to Panther 2.0? Or, as common sense seems to dictate, is the Interceptor “all new” simply because there’s just never been an Interceptor based on this Taurus before? If Ford is really engineering a dedicated fleet vehicle for US production with no civilian counterpart, they’re as crazy as GM is.
Against all odds, common sense won out (damn you Alan Mulally!). The Detroit News reports that the new Interceptor will debut tomorrow, and that it will be based on the Taurus’ D3 platform. Which gives us less than 24 hours to speculate about which engines will be turning which wheels, and whether Ford and Chevy’s FWD-RWD cop car flip-flop will favor one automaker or the other. Oh yes, and mourn the eventual passing of the Panther platform, now that there’s no hope of a police duty-inspired update. Actually, some of us might need to take our time with that last one…
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