While Toyota has recall troubles in one of their largest markets, elsewhere in the world, another carmaker has serious recall troubles in one of their biggest markets. We usually don’t comment on each and every recall everywhere, but this one warrants mention: Brazil’s Justice Ministry has fined Fiat’s Brazilian subsidiary 3 million Reais (about $1.7 million) for failing to comply with four recall orders. Fiat had been asked to recall Stilo models to fix a wheel problem that may (note the key word “may”) have caused 8 deaths since 2004, says Business Week. No recall followed. (Read More…)

BMW and Daimler don’t really like each other. As Herr Baron Schmitt put it, “Daimler engineers view their colleagues as boorish Bavarian upstarts. BMW engineers think Daimler is a congregation of has-beens”. Bluntly speaking, there’s no love lost between them. Which makes the following news that much sweeter to the “Bavarian upstarts”. And which makes the has-beens gnash their teeth. (Read More…)

When the automotive historians look back at GM they will point to many factors as to why they fell. Some might point to the Unions, some may point to their lack of reliable products, others may even point to their shoddy dealer service. But one factor which undeniably led to GM’s bankruptcy is lack of brand management. If anyone questions the harm poor brand management can do, then, may I point you in the direction of the Cadillac Cimarron? Muddled brands leave people confused and wondering why should I stay loyal to this brand? Your brand is your stamp of a promise to your customer. Safe cars? Volvo or Renault. Reliability? Toyota or Honda. Driving dynamics? BMW. Now I raise this point, because people said that this problem was endemic to GM only. It was a GM-centric problem. But is it, really? Was it really a GM-only problem? Or did GM suffer from “big company” syndrome?  Well it seem there’s evidence that poor brand management isn’t just for American auto companies.

Der Spiegel reports that Volkswagen CEO, Martin Winterkorn, is utterly fuming at Skoda. What could the reason be? Profits? Well, they are down, but we’ll come to that later. No, the main reason why Herr Winterkorn is seething at Skoda is because Skoda is doing well. So, well, in fact, that their cars are now creating problems for VW cars, their main brand. (Read More…)

The U.S. has its hypermiling. Europe has its hyperkilometreing. In a European orderly fashion, of course. Germany has its Sprit-Spar-Meisterschaft, formerly sponsored and dominated by Volkswagen, now sponsored and dominated by Toyota. France has the Peugeot Eco Cup.

This is a competition in which different Peugeot (surprise, surprise) models are driven by everyday drivers to see if they can meet or beat official fuel consumption figures. The cars were driven 1000km on French and Swiss roads in wintery conditions (that must have been a picturesque drive). The results of the 2010 Peugeot Eco Cup are in (via The Auto Channel). (Read More…)

India is going to be an economic powerhouse, just like China. With 1.1 billion people, that’s a lot of potential customers for your goods. Suzuki knew this, which is why they pushed hard in India. Suzuki is the undisputed market leader in India. Whenever there are developments in that market, we should probably listen. Listen up: (Read More…)

With the Chinese planning an electrical assault on Europe, with Nissan preparing their Leaf and with Renault charging-up Zoe, Peugeot-Citroen (PSA) is probably feeling a little exposed right now. Bad enough PSA failed to work out an agreement with Mitsubishi. Now they’re deficient in the no carbs category. But don’t worry, a white knight is coming to the rescue and offering them a ready-made electric vehicle. That’s right, they couldn’t work out a capital tie-up, but PSA and Mitsubishi Motors worked out an agreement on electric cars. (Read More…)

Even since Landwind crash test, and the Brilliance crash test, the reputation of Chinese cars in Europe has been a little, shall we say, challenging. Watching the bonnet of a car crumble like Professor Gilbert’s theory on Toyota’s UA tofu does have its effect on prospective customers.

But none of this seems to worry BYD. Europe is their next target. Autocar reports that BYD, the maker of China’s biggest selling car, the F3, will be coming to Europe in 2011. Not with their bestselling F3, but with a pure electric E6. The car was introduced at the Geneva Motor Show. (Read More…)

A couple of weeks ago, TTAC reported how Dieter Zetsche was re-elected as CEO of Daimler for another 3 years. In that article we mentioned the many challenges that face him. Mainly, how to make Daimler sustainably profitable. Size matters in the auto business. An unattached Daimler has a hard time achieving the economies of scale someone like say Audi or Lexus can. So unless Daimler fancies being taken over (and we all know Daimler likes to be on top in any tie-up) it’ll have to form partnerships and joint ventures to get those cost savings Daimler needs. The big arranged wedding between BMW and Daimler isn’t going anywhere. Instead, Daimler announced that it had formed a partnership with Renault to produce the new generation Smart car. Then, Daimler announced it had formed a partnership with BYD to develop an electric car for the Chinese market. Now Daimler is trying to form a new partnership to achieve massive cost savings: A partnership with the tax payer. (Read More…)

When Toyota stumbled there were (muted) shouts of glee around the car producing world. “Yay! They fell flat on their face! Let’s pick up the pieces.” Well, nobody said it openly, but action speaks louder than words: Ford and Hyundai revved up their “quality” aspects (wink, wink) GM and Chrysler fired up their incentives (it’s all on the taxpayers, so who cares?) Ford and  Hyundai said “to hell with subliminal messages” and followed with the money. Even Nissan couldn’t help themselves and offered a bounty to deserting Toyotaphiles. February came and went and Toyota only registered a 9 percent drop (year on year after the carpocalypse). This was quite confusing. Especially given the fact that production had been halted and dealer stock was quarantined until fixed. Analysts had predicted double digit drops and were surprised themselves. Everyone had expected something out of a George Romero film to happen to Toyota. So, suddenly, this turns into an Agatha Christie story. “Who benefited from Toyota’s stumble”? (Read More…)

While Toyota is trying to convince the American public that they’re as American as losing at hockey Wal-Mart, Hyundai is pulling the same stunt over at the other side of the pond. Forbes reports that Hyundai wants to become a card carrying member of the European Automobile Manufacturers’ Association (ACEA). (Read More…)

In order to save Nissan from certain death in 1999, Renault dispatched Carlos Ghosn to Japan to take over as COO. The French-Lebanese Brazilian was promoted President of the Nipponese carmaker, and CEO in June 2001. In Japan, he had shocked the conservatives, later he became a cult figure, a gaijin shogun. He was even immortalised in a manga. In 2005, Ghosn was crowned King of the Realm and became CEO of Renault.

So, you’d think by now that Monsieur Ghosn-sama is sick to death of the Franco-Nipponese alliance? And that the 55 year old will retire to the South of France?  (Read More…)

When the Romans invaded England, they didn’t last long. The Romanians are getting ready for another try.

Marketing Magazine reports that Renault UK will bring their Romanian-built Dacia brand to the UK by 2012. Amazing. They’re bringing a marque which is positioned LOWER than a Renault. The article goes on to say that Renault wants to emulate the success of low cost brands like Kia. Yes, but will the Dacia come with a 7 year warranty? Renault UK MD, Roland Bouchara said “With value-for-money, downsizing, fuel economy and emissions all becoming increasingly important, we want to show that Dacia can appeal to the head, the heart and the wallet.”. I’m reminded of that famous engineering expression “On time, well built and in budget. Pick two.”  Does Dacia reckon they can defy this saying? Will the Dacia stand toe to toe with the likes of Skoda, Kia and Suzuki? I’m guessing non.

Renault is using their Dacia subsidiary to produce cheap cars for Eastern Europe and other emerging markets (such as Germany, where Dacias had been snapped up during the Abwrackprämien-orgy.) Meanwhile, Renault’s Japanese twin Nissan is starting to feel a little left out. Yes, they have the Nissan Pixo, which is a rebadge of the Suzuki A-Star, which is built in India (and was recalled recently), but Nissan seems to want something of their own and they want the Indian truck manufacturer Ashok Leyland to help. Sounds easy enough … (Read More…)

When we reported that unintended acceleration in general and Toyota in particular are not a big topic in Europe and Japan, the answer was: “What do they know? They use their excellent public transport system and drive less.” (A myth, by the way. Unless there are mandatory annual odometer readings, nobody knows for sure. But the generally accepted average number of miles driven by year and car is 12,000 in the U.S.A. In Germany, the industry works with a 20,000 km average. Which is 12,427 miles.) The only countries halfway accepted as comparisons were Australia and Canada. Well, their numbers are in. (Read More…)

We at TTAC, (well, me, only) have said that since everyone is raining a storm down on Toyota other recalls are slipping by without equal scrutiny. So when I read this article, I thought it fair, in the interests of journalism, to blog it. Not because of who it is, but the reasoning around it.

(Read More…)