Plug-in diesel hybrids? Anyone? Only 50 grams of carbon dioxide per kilometer! Of course, Volvo’s plans are plagued with the usual “big plans, little company” problems. Like the fact that Volvo has no money. Ford’s Swedish division will build diesel-hybrids with about 30 miles of plug-in capacity for this latest project, while utility company Vattenfall will develop infrastructure and charging systems. In other words, like Mama Ford’s planned plug-in this puppy is only in play because of outside help. Speaking of which, there’s just one more piece to the partnership. “We do of course expect that the purchasing price will be higher,” Volvo’s Stephen Odell tells Reuters. “In this area we are keen to see further subsidies and incentives from the political arena to promote green choice among customers.” Of course.
Was there ever any doubt, really? If there was, it’s gone now, as Bloomberg reports that the German government has decided to put its taxpayers’ money behind a Magna-owned Opel. German Finance Minister Peer Steinbrueck told reporters in Berlin that Germany will provide a $2.1 billion “bridge loan” (direct translation) to keep Opel alive. “A solution has been found to keep Opel in operation,” Steinbrueck said. “You can be sure that we didn’t take the decision lightly. All the federal and state representatives are aware that there are some risks.” And there I was thinking understatement was an English thing.
Bidders for Opel need to bump up their commitments to win control of GM’s European arm, Germany’s economic minister tells Automotive News [sub]. Karl-Theodor zu Guttenberg’s announcement came shortly after meeting with Fiat CEO Sergio Marchionne in Berlin. Coincidence? Nein. Fiat has been looking at acquiring the Opel operations along the lines of its Chrysler takeover: financed by desperate governments rather than the automaker itself. “There’s no favorite,” says zu Guttenberg. “Everyone knows that improvements are still necessary.” And as incentive, zu Guttenberg is still floating the possibility of an Opel bankruptcy. If bidders don’t “make credible commitments to preserve German jobs and showed a willingness to assume greater risks,” Germany will allow Opel to fail. After all, what government would hand over an automaker being kept alive with tax money to a foreign firm with a public-money dowry on top? Only America, apparently. Still, the threat could be losing its impact as Germany is also anxious to decide on a bid offer this week. In the spirit of compromise, Fiat is now saying it would accept only €6 billion in German government loan guarantees instead of the €7 billion previously requested.
In March 2008, China’s Shuanghuan (SH) Auto presented the Noble to the Greek media. The two-door may look like Daimler’s Smart, but there are crucial differences. The three meter long Chinese vehicle can can carry up to four people; Daimler’s mini (not MINI) mobile seats two. The Noble is a front-engined, front wheel-drive car with a unibody structure; the Smart’s engine is underfloor with a rear-biased drivetrain, built around a “Tridion” safety cage. Yes, well, in April 2008, Daimler’s crack legal team moved quickly to prevent import and sales of the [alleged] Chinese Smart clone. This week, a judge struck down Daimler’s case.
The fat lady of ACEA (European Auto Manufacturers Association) has sung her aria of April auto acquisitions. If you just want the skinny (as opposed to the fat): sales in all of Europe are down 12.3 percent compared to April 2008. Four months into 2009, the market decrease amounts to 15.9 percent. Compared to the carmageddon elsewhere, this ain’t so bad. A closer look reveals a mixed bag of surprising champs and walking dead.
GM wants to dump Opel on Fiat, but Fiat has its eye on GM’s successful Latin American division. GM sees a chance to hop on Fiat’s runaway train and is considering giving the operations to Fiat for a stake in the Marchionne empire. Two anonymous sources tell The New York Times that Fiat’s CEO “has indicated a willingness to give up less than 10 percent of Fiat to General Motors.” GM is said to be asking for 30 percent. How awkward.
Earth2Tech, Earth2Tech. Come in, Tech. You may be wondering if green websites like Earth2Tech are anxious about the possibility that GM (and/or its new masters) will kill the electric/gas hybrid Chevrolet Volt. You may recall that the Presidential Task Force on Autos (PTFOA) tore the Volt a new exhaust pipe in its original GM viability slam down. And it seems like there’s a bit of a C11 thing happening over at RenCen. Anyway, to their credit, Earth2Tech’s Volt-related concerns are global. So they emailed GM for reassurance on the European Volt program. And, by jove, they got it! “The Ampera is being developed in the U.S., and GM remains firm on its plans to bring the Ampera to the EU,” blogger Josie Garthwaite reports. And now, from the horses mouth: “‘We don’t expect any disruptions to our plans,’ GM spokeswoman Natalie Johnson told us in an email today. Neither does the Opel team. Communications director Rene Kreis reiterated that Ampera production is on schedule to begin in late 2011.” Good to go is one thing. But no disruptions? Props for maximum chillaxitude. Alternatively, brickbats for the usual spinmeisterly BS. Your call.
Now that the no-money Fiatsco is (sort of) done and in the hands of the courts and armies of lawyers (what a reassuring thought), Fiat is fixing the sights of its lupara [see pic above] on another target that carries the ripe fruit of billions of government money: Opel.
“Now we have to concentrate on Opel,” Sergio Marchionne said in an interview with La Stampa. “They are our ideal partners.” (Reassuring thought #2: Chrysler must then be less than ideal . . . .) Reuters reports that “Marchionne coughed throughout the interview and admitted to being tired after months of talks leading up to the Chrysler deal,” giving rise to suspicion that Marchionne had contracted swine flu—an inherent risk when rolling with the pigs. Or it could be something worse than what a dose of Tamiflu could heal:
Fiat wants to get its hands on Opel, and the Opel workers don’t like it at all. Opel workers council chief Klaus Franz confirmed today that Fiat is in intensive negotiations to take over Opel. A memorandum of understanding may be signed as early as this coming Tuesday, reports Automobilwoche [sub]. Franz is very much against it: Read More >
Fiat, the great Italian hope for the American auto industry, has a lot of expectations to live up to right now. Not only are the Torino boyz tackling the miasma of despair that was the Chrysler corporation, but Automotive News [sub] reports that Fiat could “form an alliance with General Motors’ core operations in Europe and Latin America.” Italian-American Leyland, anyone? Fuhgeddaboutit. According to anonymous sources, talks with GM are in the “early phases,” which means that nobody has suggested that an allied Chrysler, Fiat, Opel/Vauxhall and GM Latin America might be too much concentrated fail for one corporation to handle. And Fiat’s got the usual unnamed competition for Opel to contend with. “More than six people have expressed interest, serious people,” says GM CEO Fritz Henderson of his firm’s unwanted Opel/Vauxhall operations. Why so serious? Did previous offers come from folks wearing giant shoes, tiny hats and rubber noses? More importantly, if one of these “more than six serious people” comes from Fiat, might it not be time for a reality check on that firm’s transformative power?
The United Kingdom always had been a reluctant—and sometimes recalcitrant—member of the EU. Some of Her Majesty’s subjects still refuse to fully accept the EU’s existence. This may explain why our colleagues at Autocar.uk found it worthy to note that “the unexpectedly high take-up of the German government’s scrappage scheme has led to an unexpected side effect—a boost to new car sales in Poland. The combination of the fact that the German scheme doesn’t require the new cars to be purchased within Germany, and the weakness of the Polish zloty—which has fallen by around a third against the euro in the past year—has resulted in more than 10 per cent of new cars sold in Poland being bought by Germans.” And what’s wrong with that? Read More >
It’s been the weekend of the long knives for auto execs the world around. Rick Wagoner “did the right thing” and “resigned.” Meanwhile, across the frog pond, the board of French carmaker PSA had to unceremoniously fire Chief Executive, Christian Streiff, on Sunday. They replaced him with Philippe Varin, who will take up the position on June 1, Reuters writes.
The French board definitely has less of a stomach for losses than their American colleagues. Streiff was let go “after Peugeot last month posted a €343m ($460m) net loss and said it expected to stay in the red until 2010,” says Reuters. A measly three digit million number would barely register on a Detroit Richter scale. Not so in France. They want rolling heads:
You know how the endless parade of talking heads constantly bemoans the “freezing up” of global credit markets? They’re full of it. Credit markets are just fine. Just as long as you happen to be one of the world’s most profitable automakers. According to Bloomberg, Porsche Holdings has secured a €10B (with options to expand to €12B) refinance of a credit facility from a consortium of 15 banks including Barclays, Deutsche Bank, UBS and Credit Suisse. The refinancing was for cash borrowed by Porsche to buy its majority position in Volkswagen. Porsche is seeking another €2.5B in order to up its VW stake to the 75 percent level it needs to bring VW cashflow onto its books. And though lending to Europe’s largest automaker seems like a relatively safe investment for panicky banks, Porsche has been living by the sword from a financial standpoint. “The renewal of the credit line is a relief for short- term funding concerns,” says one Credit Suisse analyst who recommends that Porsche merely maintain its current investment in VW.
“As the Nano is a city car, Tata has made low-speed acceleration a priority. The sprint from 0-60mph takes an epic 30 seconds and top speed is a mere 65 mph, but the very short first and second gears ensure it covers 0-40 mph in a much more acceptable 10 seconds.”
When France announced their bailout package to the car industry, it came with a covenant: keep jobs in France. This immediately raised the EU’s ire of the EU. Free trade commissar Neelie Kroes spat into the direction of Paris: “If the help comes with conditions, for instance to keep production in France, then these measures would be illegal and would not be approved by us.” After the whipping from mistress Kroes, the Sarkozy government France struck the clause from the bailout package—and then claimed a “moral obligation” for the French to stay in France. Brussels was displeased with the French moral imperative, especially when Renault is still 15.7 percent in government hands, considering that the government/industry relations in France can put a zaibatsu in Japan, or a company owned outright by the Chinese government, to shame. A wary eye was kept on France ever since. Yesterday, it turned into an angry stare.
Recent Comments