The Euro and the UK Pound go into a tailspin. Greece requires a bailout. Spain & Portugal could be next on the default list. The economy is in tatters. The car market is shrinking. The government announces spending cuts, on top of people’s reluctance to spend. On this dire backdrop, does it surprise you that workers at the Vauxhall plants (they’re actually Opel plants re-badged “Vauxhall”) have chosen to accept a pay freeze in return for job security? The Times of the UK reports that the 3200+ workers located in the UK are close to agreeing to a 2 year pay freeze. Union officials in the UK believe that the pay freeze is an acceptable hit to take in return for job security. They also believe that when it comes to the union vote, it will be passed through with little complaints. There is of course one slight flaw in the plan…. (Read More…)

A few years ago, if I had told you that there would be a production car available with 1000 horses, you’d have probably said “Get lost, Cammy!” Well, in this age of electric cars, hybrids, clean diesels and climate change (it’s a crock of what, Mr Lutz?), what if I were to tell you that there is a production car with 1200 hp on the horizon? What would you say, then? Hold the straight-jacket … (Read More…)

The other day I heard a saying which I think is rather apt for this article:

“You can shear a sheep many times, but you can only skin it once”. Except in this article the “shear” is “fleecing” and the sheep is “Daimler.” Bah, bah, bah. Firstly, the U.S Government did a little shakedown of Daimler to the tune of $185 million. When that succeeded, our friends in Russia decided to check this gold mine for any left over deposits. Word spread of them thar gold in Sindelfingen. Incoming golddiggers! Forexyard (via Reuters) reports that Egyptian authorities are going to investigate the matter in relation to bribery in Egypt.

Yes, in Egypt. (Read More…)

Now that the Conservatives (with the help of the Liberal Democrats) have come to power in the UK, the Conservatives are going to push forward their plans for a reduction in the UK deficit (i.e savage cuts). Now, while I agree in the long term, this will be good for the UK, in the short term, it will cause higher unemployment and severe “belt tightening”. The UK isn’t the only country with this frame of thinking. Only today, the Spanish government has announced deep budget cuts in order to reduce their deficit and to prevent markets from thinking of them as the next “Greece”. So, with the UK and Spain making these budget cuts, the Euro looking unsteady and Greece still not convincing markets, what else could make Europe stare at another recession? That’s right, a possible trade war. (Read More…)

A couple of weeks ago, I wrote about how the world largest “democracy” is being built up to a global small car hub. It seems the car world has even bigger plans for the Asian tiger cub. Business Week reports that Renault is planning to double the number of parts it gets from India. Sudhir Rao, COO of Renault’s India unit says that Renault will buy about €250m ($317m) worth of parts from the Indian subsidiary. Renault isn’t the only company that is  looking to India for cost savings. Naturally, where Renault goes, Nissan follows. But Fiat and Ford are also interesting in using Indian parts.  (Read More…)

Hyundai is riding high. They’re being thought of in the same vein as Honda in terms of quality, the same as Ford in terms of value and the same as Toyota in terms of reliability. So what could be left for Hyundai to do? They want you to think of them as a … (Read More…)

Give up? The answer is that they’re giving South Korea a headache. OK, let’s go back a bit. The Korea Times reports that something funny is happening to the South Korean car market. Effectively, for years, the South Korean car market used to be closed off to foreign competition, thus, keeping domestic production and sales high. The market for foreign was only for the exclusively rich who didn’t mind paying the tariffs. But now, even the proletariat is getting in on the act. In spite of a global slump in the market, the Korea Automobile Importers and Distributors Association (KAIDA) reports that foreign imports rose, month on month, by 51.1 percent, to 7,208 units in April.  Still a drop in the water: Korea makes 3.5m cars in a good year, of which 2.5m are exported. But it’s a start. (Read More…)

To anyone who reads my articles, (that’d be Bertel and my mother) you’d know that I’m not a big fan of Ford. Mark Fields is Susan Docherty for Ford, their cars underwhelm me, and I don’t really like the company as a whole. Having said that, I am a journalist. (Don’t laugh! I am!) And I am professionally impartial. So, when I was on the train last night, I decided to do a quick rundown of Ford’s situation. Currently, they are the darlings of the North American market and Europe loves them, too. They turned a big profit in the first quarter of this year and confidence is growing in the company. But despite all of the this, the markets aren’t convinced.  (Read More…)

Within the Renault-Nissan alliance, Carlos Ghosn must have felt like he was the king. He and Louis Schweitzer were the architects of the fourth largest car making entity in the world. Then the Board of Directors chopped his legs out by vetoing his deal with Roger Penske to supply Saturn with Renault cars and, suddenly, Carlos Ghosn had a very sharp lesson. In the Renault-Nissan alliance, no-one is too big to fail. So when it came to his re-election as CEO, no-one thought it was a cut and dried affair. Well, on Thursday the 29/04/2010, Mr Ghosn received his second term at Renault. And he set out some targets to show the BoD he means business.

Reuters reports that over his next 4 year term, Ghosn envisions the following: (Read More…)

The one thing I love about the car industry it its ironic sense of humour. Remember the four dead brands of GM? Who’d have thought SAAB would be the last man standing? When Ford was trading at $1 a share and their stock was labelled “Junk” status, who’s have thought they’d be where they are now? Now, I can’t speak for the rest of the B&B, but I’m, personally, sick of this UA business with Toyota. I’ve been rather sceptical from the start and very little has happened to change my mind. However, the God of Irony is still working in the car industry and whilst I was grazing the internet today, I came across this belter: Unintended deceleration. (Read More…)

China’s  is without a shadow of a doubt one of the most exciting markets in the world (Especially for Bertel, it keeps him in Lederhosen and Japanese bar trips). Many companies are throwing their efforts into the Middle Kingdom. Buick is, to all intents and purposes, a China-only brand. Volkswagen declared China to be “Volkswagen’s second home” and Ford’s sales are rocketing there. However, while all eyes are on the fastest growing economy in the world, something fundamental in happening just across the border. (Read More…)

A few weeks ago, I wrote about how cynical I was becoming about the sudden SUA syndrome with Toyota and how I found it amazing how quite a lot of these cases involve our more “mature” members of society. I used the story of Miss Myrna Marseilles, 76, who crashed her 2009 Toyota Camry (which was fixed the under the recall program), into the wall of a YMCA.

I inferred in the article that this was simply a case of driver error and nothing more and some people agreed with me. Peregrine Falcon bet $20 that this was down to pedal confusion. 210delray reckoned it had “all the elements of pedal misapplication”. Well, Peregrine Falcon, if anyone took you up on that bet, it’s time to collect. We were right. (Read More…)

When people get married, they normally follow it up with a honeymoon and (at least traditionally) the consummation of said marriage. So, when Daimler and Renault-Nissan got hitched, how do you think they’d celebrate their first year of marriage? Build a car a together? Announce a joint venture factory? Start sharing dealerships? No. They had an argument. Just like your old polyamorous married couple. (Read More…)

You may not know that Cammy is a Chemist by trade. With a degree at college and university. If you bug me, I know enough to blow you up. That aside, in chemistry, there is a theory called “Le Chatelier’s Principle”. It states that:

“If a chemical system at equilibrium experiences a change in concentration, temperature, volume, or partial pressure, then the equilibrium shifts to counteract the imposed change and a new equilibrium is established.”

Now why am I telling you this?

The BBC reports that Daimler is deserting Iran. (Read More…)

Free market economics are a simple process. Or so they say. Dive in, and whoever survives, survives. Let the market decide. According to the pure tenets of free market economics, it’s important that the government shows no favoritism.  Yeah, right.

The Korea Times reports that President Lee Myung-Bak is showing more than just interest in Hyundai-Kia. (Read More…)