With BMW feeling very small in a big fish’s pond, you’d think that BMW would be scrambling to make friends with bigger fish in order to survive. Well you’d be right. Canadian Business report that BMW have reaffirmed their co-operation with Peugeot-Citroen in order to develop an engine which will help both parties meet Europe’s “EU 6” emission standards, whereby a car’s nitrogen oxide level cannot be more than 80mg/km. In a joint statement, BMW and Peugeot-Citroen said they want to build a four cylinder petrol engine to meet this standard, which is due in 2014. The current engine can be found in some MINI models, Peugeot’s 207 & 308 and Citroen’s C3 Picasso, while a new generation would likely help power BMW’s forthcoming sub-1-Series models.
Opel’s turnaround negotiations with German unions have gone pear-shaped again, as top labour rep Klaus Franz left talks denouncing GM’s decision to cut 9972 jobs instead of the promised 8300, according to The Wall Street Journal. “Fundamental questions have not been answered,” fretted Franz. “Management’s plans seem to change on a daily basis.” Rudi Kennes, a labour representative from Antwerp, concurred, saying the atmosphere between management and the unions “has never been as bad as now.” He added ominously that “(Mr Reilly) needs to answer our questions.”
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Having re-birthed themselves at the taxpayers’ expense, one of Chrysler’s top priorities is restoring the brand equity that has bled out since the Daimler takeover. First up was the move to spin “Ram” off as its own brand, and now it seems that no-one is safe from “re-birth,” as UPI.com reports that Chrysler are rethinking their strongest brand, Jeep. Unfortunately, one man’s brand rebirth is another man’s brand betrayal. Chrysler want to replace all of Jeep’s products, except for the Wrangler and Grand Cherokee, and the idea is to utilise Fiat’s experience of fuel efficient engines as the basis for it. That means Jeep is likely to become smaller, more fuel-efficient and less off-road capable [rumors of a Fiat Panda 4×4-based Jeep (rendered above) date back to the earliest days of the Fiat-Chrysler alliance]. If you had to boil the proposed shift into a single word, UPI figures it would be “soft.” And the markets have reacted to this news in pretty much the same way you’ve probably just reacted: they think the idea is bad. Very bad.
Honda’s half-hearted approach to hybrids is about to be shaken up, possibly leading to the development of a hybrid system that goes beyond Honda’s traditional integrated motor assist (IMA) system. Automotive News [sub] reports that Honda CEO, Takanobu Ito has told his Research and Development staff to develop a hybrid which beats the Toyota Prius in fuel economy. Or else. This development probably has something to do the failure of the Honda Insight (Prius sales in 2009 were 139,682. Insight sales for the same period: 20,572); as Honda Executive VP, John Mendel said “Are we happy with how sales are going? No, we’re not happy.” Mr Ito made it clear that Honda’s hybrid line up is a top priority. “We want to develop and expand our hybrids,” said Ito. “We made some major sacrifices to shift people and resources to do that.”
GM and VW are the undoubted leaders in the biggest car market in the world, and despite challenges from homegrown upstarts like BYD, analysts say that the two global majors are best positioned to take advantage of their leadership in China. But now strategies they are a-changing. Recently, TTAC reported that VW seemed to be getting cold feet about expanding their capacity, but GM seem to have come to the opposite conclusion. Reuters reports that GM expects that they will need to build a new manufacturing plant to allow the growth of their Chinese division to continue. “We expect to sell more than 2 million units this year,” Kevin Wale, managing director of GM China, said. “We have enough capacity to build the cars we need to sell this year and we need to continue to look for ways of increasing our capacity. That will mean we will have to add a new plant some time in the near future.” The plant won’t be built this year because, according to Mr Wale it would be “physically impossible” to move so quickly, but with current GM China plants adding new shifts and expanding current production lines, it seems like their current facilities are just about tapped out. Maybe they could use some of their excess capacity in the United States? Er, maybe not.
Denmark is keen to show the world, especially after the Copenhagen Conference, that they mean “green.” Denmark is setting up an infrastructure to support electric car recharging, however the other side to this grand scheme are throwing their toys out of the electric car. The Copenhagen Post reports that Renault are threatening to withdraw the electric cars which they were supposed to supply to “Better Place”, the company monitoring the installation of the electric car infrastructure. The reason behind this shocking behaviour (see what I did there?) is that Renault believe that the Danish government are not giving enough favourable car tax breaks to electric cars. The government’s policy is to give electric cars exemption from normal vehicle registration tax of 180%* until 2012.
The Chevrolet Volt dancing debacle was pretty embarrassing. So embarrassing that GM felt inclined to step in. Fox News reports that Maria Rohrer, the marketing manager responsible for the “dancing on taxpayers’ money” débâcle has been reassigned to become director of Chevrolet truck advertising. David Darovitz, GM’s PR spokesperson (the poor sod who had to explain the dancing spectacle to the public), confirmed that Maria Rohrer had been transferred but added that “The move had nothing to do with recent events in LA”. Which brings a couple of interesting scenarios. 1: Did GM think she did a good job and promoted her to director of Chevrolet Truck advertising? or 2: Or do GM value the Volt so much, they place it above their lucrative truck business? The Tweet by GM’s VP for Global Communication pictured above certainly indicates the latter. Either way, I’m filing this along with “Cadillac Cimarron”, “Saturn division” and “An American Revolution”, under “GM marketing disasters”.
Collisionrepairmag.com reports that AzkoNobel, a chemicals company from the Netherlands, has teamed up with Toyota to create Sikkens Autoclear LV, a scratch resistant, self healing clearcoat. The product has been approved by Toyota for use on the Lexus LS range as an aftermarket clearcoat to be used at Toyota dealerships and Toyota affiliated collision repair facilities around the world. According to the article, “Sikkens Autoclear LV Exclusive is highly resistant to scratches, and holds up extremely well after repeated washings, but it truly differentiates itself from other clearcoats with its outstanding self-healing characteristics when a vehicle is nonetheless damaged. With extraordinary “re-flow” properties designed into the coating, small scratches virtually disappear in minutes when exposed to a heat source at temperatures ranging from 40-80 degrees celsius–and even exposure to the sun will initiate the healing process.”
After years of spurning lithium ion batteries in favor of Nickel metal hydride cells, it seems Toyota might changing their mind. The Wall Street Journal reports that Toyota Tsusho Corp, which is 21.8% owned by Toyota Motor Corp., has secured the loans it needed from the Japanese government to buy a stake in a lithium project in Northern Argentina. The article states that “people with knowledge of the matter” (read in to that what you will), values Toyota Tsusho’s investment somewhere between $100 million and $200 million.
A strong team is only as good as its weakest link, particularly in the automotive industry. Treat your suppliers well and they’ll play fair by you. Try to screw them and they’ll collapse leaving you with serious production problems. Detroit (Chrysler in particular) had the worst reputation for treating their suppliers badly, but the Pentastar brand now claims to be trying to change all that.
Despite what you think of Toyota, it’s a company you should respect. They brought reliability to cars when others couldn’t. They popularised lean manufacturing techniques that others are still trying to copy. And they introduced green technologies at a time when petrol was cheap and still made a success of it. In short, when Toyota put their mind to it, they can make a good success of just about anything… except for the European market. For some reason, Toyota cannot make in-roads in the European sales no matter how hard they try, and the latest set of data suggests that that trend is continuing.
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