“Under current foreign exchange rates, there can be no shipments from Japan of totally new projects,” Nissan’s COO Toshiyuki Shiga said. According to the report, anything with a new chassis that is intended for foreign markets will begin its life in those foreign markets. Says The Nikkei: Read More >
Since the Tokyo Auto Show and some Scion scuttlebutt have us on something of a Daihatsu theme here, I thought I’d show a bit of what the small car specialists are up to these days. The truth: despite the brand’s futuristic showcar image projections, Daihatsu mostly plays in the rough-and-tumble entry-level segments of emerging markets, where the cars are small and the margins can be even smaller.
And it’s had better luck there than in the so-called “mature markets.” Though the third generation Charade flopped on the American market amid much popular ridicule of its name (and, according to gearhead lore, oversight of other favorable qualities), the previous generation became the FAW-Tianjin “Xiali,” one of China’s most ubiquitous cars. Now Daihatsu is ditching Europe and hustling strangely cool little mini-MPVs built in Indonesia with the taglines “it’s very cheap” and “we build them compact.” Who needs developed markets? Read More >
With a 35% import tax on new cars, Argentina is already a touch market for foreign brands seeking to bring cars into the country. But the Argentinean government has just made it little bit harder by demanding that importers export an equal amount of Argentina-made goods for every car imported. As a result, Bloomberg reports that Porsche’s importer is exporting Malbec wines and olives, Mitsubishi’s importer is getting into the peanut export game, and Subaru’s representative is shipping chicken feed to Chile. BMW, which has had recent difficulties importing into Argentina, is focusing on its core business, exporting auto parts and upholstery… and a little processed rice to make up the difference. But why are these major manufacturers getting into all kinds of strange side businesses just because Argentina wants to improve its trade balance and foreign currency reserves? Simple: Argentina is South America’s second-largest economy, and it’s been growing at over 5% per year since 2007 (i.e. when other markets were shrinking). So if the government wants imports balanced with exports, well, Porsche’s importer is just going to have to get into the wine business, isn’t he?
One of the earliest iterations of the “Low Speed Vehicle Today, World EV Domination Tomorrow” business model to emerge at the dawn of the electric car era was ZAP. But after being exposed on numerous occasions for its poor product quality, vaporware hype and stock manipulation (most infamously in this Wired story), ZAP disappeared from the EV scene in the US (the company’s official (read: sanitized) history can be found here). Last we heard, ZAP was hyping a venture with the Korean optics firm Samyang, but it seems the firm has spending the last year or so putting down roots in the Chinese market. Having merged with Jonway, the Chinese maker of scooters, ATVs and a CUV that looks suspiciously like the Toyota RAV4, ZAP came back to the US for the Automotive X-Prize, which it contested in a ZAP Alias, the three-wheeled, $38k vehicle that has not been produced in volume although the company is still accepting deposits for it. The Alias failed to finish in the X-Prize, but ZAP says that revenue from Jonway is funding the vehicle’s continued development (including a four-wheeled version)… which was supposed to debut way back in 2009.
Now Consumer Reports says the firm is focusing on selling electric RAV4 knockoffs produced by Jonway as it continues to work on the Alias. But the firm seems to have burnt too many bridges in the US, as it says it will focus on selling the EVs in China and other world markets… despite the fact that developing market EV sales are going nowhere. But ZAP has left something of a legacy in the US: Senator Mitch McConnell, a critic of government loans for Solyndra, apparently pushed for a quarter-billion dollar federal loan to ZAP, opening him to charges of hypocrisy. Now, as ever, ZAP remains a fascinating fixture at the margins of the EV scene. And though it’s an interesting company to watch, it’s best when viewed from a safe distance…
Designed to be the world’s cheapest car, the Tata Nano is supposed to compete with scooters and three-wheelers rather than full-priced, global-brand vehicles. But the Nano has already seen several price increases since the target MSRP of $2,500 was announced, and the price in India for a base-level Nano is now about $2,870. And when you talk about such low prices, even small increases can wreak havoc on expected volumes, and as a result the Nano is turning into something of a flop (helped along by its pyromaniaproblem). Read More >
Carmakers don’t want to be caught napping when the “next China” is at stake. They are setting their sights on Southeast Asia. Currently en vogue: Indonesia. The country with a population of 237 million has a bullet on the PowerPoints of most major carmakers. Toyota is already there and wants to double down. Read More >
With a massively growing population, and no Chinese-style national one-child policy in place, sterilization campaigns in India’s provinces and municipalities are far from uncommon. But now, in the Rajasthani district of Jhunjhunu, officials in charge of sterilization campigns have found a new incentive to encourage Indians to undergo the procedure: the subcontinents growing obsession with automobiles. Britain’s The Independent was the first Western news outlet to report on the scheme, which offers those undergoing sterilization
a coupon for a forthcoming raffle, with prizes including a Tata Nano car, motorbikes and electric food blenders.
Around the time of the founding of the United States, the Mexican state of Guanajuato became home to of the one of the biggest silver mines in the world, which produced as much as 2/3rds of the world’s supply of silver at its peak. Today it’s not precious metal that’s driving Guanajuato’s booming economy, but cars, as the world’s automakers flock to Central Mexico. Between 2005 and 2008, GM, Ford and Michelin dumped $1.8b into production in the state, and the expansion is still picking up steam. In the last year, Volkswagen invested $800m in engine production capacity in Silao, Pirelli built a $210m facility and Mazda just revealed it would build a new compact car plant there in June. Toyota is said to be the next to set up shop in Guanajuato, but for the moment Honda is the latest automaker to announce new operations in Guanajuato, as Automotive News [sub] reports the Japanese automaker will spend $800m on an assembly plant there. Honda, which is fleeing a strong yen which has battered Japanese exports, will start building 200k subcompacts per year in 2014. Clearly Guanajuato’s got it’s automotive mojo flowing… but are the days of new Japanese transplant factories in the US over? Is it only a matter of time before the coyotes start smuggling Detroiters into Silao, Celaya, and the Puerto Interior??
GM knows where the growth is: In the emerging markets, BRICs and beyond. GM announced today it will “invest $150 million in the reactivation of its Bekasi manufacturing facility in West Java, Indonesia.” Read More >
Within the next ten years, the car industry will change more than in the past fifty years. At least at Volkswagen, says Audi Chief Rupert Stadler. Platforms are a thing of the last century.The future of the car industry is kit cars. Or make that cars designed and built using elements of a common kit architecture. Currently, there are two families of erector kits which can be assembled into all kinds of cars at Volkswagen. They have Teutonic names like “Modularer Querbaukasten” (MQB) and “Modularer Längsbaukasten” (MLB). Porsche is developing a “MMB” (Modularer Mittelbaukasten) for Mittelmotor (mid-engined) cars. Or possibly a MSB (Modularer Standardbaukasten), which could be the Mutter of all Baukasten.
Audi is already working with the MLB architecture. This coming year, Volkswagen will start using the MQB. Says Automobilwoche [sub]:Read More >
Toyota is working on a small car based on its emerging market platform that underpins the Indian Etios, and will release it in China by 2013 – if The Nikkei [sub] is correctly informed. There is nobody working at Toyota on Thursdays and Fridays as a power saving measure, so there is nobody to ask. We expect no more than the usual “we cannot comment on future models” when people will be back to work on Saturday. With that in mind, let’s go down rumor lane. Read More >
After a lot of prototypes presented at Chinese car shows with hoods closed and long cables going to mock charging stations, EV development appears to get serious in China. Yesterday, Nissan announced that it is developing an EV for the Chinese market that will be sold under the Venucia brand by 2015. Daimler of all people could be further ahead. Read More >
A chicken could become as unreachable as caviar in many poor countries, warns a study of the OECD and the United Nations. Chicken is projected to rise in price by 30 percent in the next ten years – inflation adjusted. Other staple foods such as corn, sugar or cooking oil are seen rising in price by twenty percent. Why? On one side of the ledger is higher demand, mainly from China and India. On the other side: „Increasingly, the crop doesn’t end up in the pot, but as fuel in the tanks of cars,“ says the German magazine Der Spiegel.Read More >
China’s Gasgoo says that “Dongfeng Nissan has already begun preparations for domestic production of the Nissan Leaf pure electric hatchback.” Domestic as in Made-in-China. They quote Dongfeng Nissan CEO Fumiaki Matsumoto, who allegedly said: “We have already finished preparatory work for the Leaf. We hope that we can cooperate with the government and suppliers to bring over the Leaf as soon as possible.” That of course piqued our interest. After some calls, we can say with certainty: Instead of millions of Leafs roaming the streets of China tomorrow, we have a case of Lost In Translation with a French-Japanese-Chinese cast. Read More >
It looks like Carlos Ghosn is tired of talking about the inaction of the Japanese government with regards to the killer yen. He told his people to start packing. The Nikkei [sub] reports today that Nissan will stop making in Japan newly developed cars for export from Japan. New cars will be produced at overseas plants.
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