With California and the Trump administration squabbling over vehicle emissions, it’s easy to assume that Europe’s green initiatives are progressing trouble free. In truth, things are a little more complicated. Europe has come together to endorse tougher emissions rules but one of its member states appears to be reaching its breaking point. Unsurprisingly, it’s the one that builds the most automobiles.

Earlier in the week, EU environment ministers announced a need for countries to decide on reduction targets for the foreseeable future. Germany has endorsed a proposed target for a 30-percent reduction by 2030, compared to 2021 levels. However, France and several other nations are pushing for a stricter 40-percent limit while Austria wants to see 35-percent reductions. Although, the most interesting thing about this is how closely Deutschland’s arguments for softer standards are to America’s.  Read More >

It’s looking increasingly like the compression ignition engine won’t get an opportunity to redeem itself at Cadillac. After making diesel a dirty word in the early 1980s with the help of Oldsmobile’s cantankerous, oil-burning 5.7-liter V8, GM’s luxury arm dived back into diesel development towards the end of the last decade. A recession and bankruptcy put the kibosh on those outsourced plans.

Then, in 2014, happier economic times brought about a renewed interest in the pursuit of diesel. Cadillac hoped to woo MPG-loving Europeans by outfitting new sedan models with diesel powerplants developed in-house. Americans would get a taste, too.

Scratch that, says Cadillac president Steve Carlisle.  Read More >

Nissan is ending sales of its last two compact cars in Europe and Russia, citing a the growing demand for crossover vehicles as the reason. The automaker stopped producing the Pulsar hatchback for Europe in June and says it will end production of the Almera sedan in Russia later this year. Both models are the sister car to our own Nissan Sentra.

The Pulsar was launched in 2014 to give Nissan a fighter for the competitive compact-featherweight category and fill a gap left in the brand’s European range in the wake of the discontinued N16 Almera. Unfortunately, it hasn’t been the sales success Nissan hoped for. The Pulsar never quite managed to match the N16’s volume. Nissan’s decision to abandon it leaves the Leaf EV as the only non-utility compact sold by the manufacturer in the region.  Read More >

The continent that spawned microscopic postwar bubble cars and made the “city car” segment a thing is moving ever further away from its automotive past. European buyers, perhaps influenced by their American counterparts, are beginning to realize they truly can have it all, adjusting their buying habits accordingly.

Of course, by “all,” we mean all the cargo space. Read More >

In an earlier analysis of Ford’s lackluster share price, we noted that Europe and China posed a significant problem for the automaker’s bottom line. Europe, which was previously pretty good to the brand, has gradually lost its share of the market since 1994. While Ford still moves a lot of metal in the region, something’s definitely wrong.

On Wednesday, Ford announced that its European operations had endured a $73 million second-quarter loss. It’s anticipating a full-year loss in the region after earning $234 million last year. “We’re extremely dissatisfied with our performance in Europe,” said CEO Jim Hackett.

Something has to be done to avoid further setbacks. According to Jim Farley, Ford’s head of global markets, the clear remedy is concentrating on vans and crossovers because that’s where the money is. It’s a similar strategy to what’s being done in the United States, where Ford eventually aims to cull the lineup to a point where the Mustang is the only vehicle that qualifies as a traditional car. But is it the correct one, considering how we’ve arrived at this point?  Read More >

The Toyota Camry holds the remarkable distinction of being a midsize sedan with U.S. sales that actually increased over the first five months of 2018. Impossible, you say. It can’t be. You’d trade your kids for a crossover, but wouldn’t stoop to pick up a “free sedan” voucher if you passed one on the sidewalk.

Well, it’s true. Year to date, Camry sales are up 2.1 percent in the United States. Last year’s introduction of an eight-generation midsizer seemed to halt the sedan’s sales decline, though we’d be fools to think it’s anything other than a temporary lift. Camry volume sunk 7.9 percent in May. June could send the model into the negative.

Toyota seems aware of this, too. Maybe that’s behind the decision to send the Camry somewhere it hasn’t been in years. Read More >

Even though General Motors gleefully offloaded its European division to the French, it still maintains a slight presence in the region. A powertrain engineering center in Turin, Italy remains in the GM fold, which gave the automaker an opportunity to dish on a much-maligned propulsion source: diesel fuel.

Hey, this stuff’s still useful, the automaker’s CEO of global diesel development, Pierpaolo Antonioli, told an uncertain European crowd this week. Read More >

Despite recent claims from Bosch that it’s prepared to save the diesel engine from becoming outlawed in Europe (which is like a prettier and less-free version of America), Nissan has announced its intent to withdraw sparkless motors from the market. Thanks to dwindling demand, the automaker claims it’s going to begin a gradual retreat until it no longer sells diesel vehicles in the region.

The announcement follows a similar plan unveiled by Toyota in March of this year and calls into question what the remaining Japanese manufacturers will decide in the months to come. Nissan said Monday that it will shift its focus to electrified vehicles, hoping the emerging technology can fill the void. But European manufacturers have the most to lose as the market changes.  Read More >

We’re always surprised with what counts as a van in Europe. For example, Ford just showcased a new one based on the Fiesta at the Birmingham Commercial Vehicle Show — and it’s kind of wonderful. However, we’re unlikely to see it on our roads. A vehicle like this makes almost no sense for the North American market.

In fact, I can only think of a handful of applications for such an automobile: high-volume pizza delivery, flower delivery, amateur plumber, organ transport, and pet grooming for a business that only takes modestly sized animals. But they would all have to take place in an extremely-dense urban environment to rationalize the use of such a small vehicle. Otherwise, business owners are going to splurge on a proper small van like the Transit Connect.  Read More >

Ford Motor Company has a lot invested in Europe. While the continent spent decades operating facilities under the lose leadership of Ford of Britain, Detroit acquired direct ownership in 1950. From there it extended its influence dramatically, buying up established European manufacturers near the close of the 20th century. But things haven’t always been good; economic hardships have been par for the course and things haven’t been easy in a long time.

Presently, Ford makes around $75,000 in profit for each of its employees in the United States. In Europe, that number is about $4,300 per worker. While we’re sure that makes domestic line workers feel entitled to a small pay increase, the point is that the profit margins across the pond are pretty slim for Ford.

However, unlike General Motors, the company doesn’t want to abandon the region. The automaker says it’s taking a renewed interesting in figuring how to keep profits up and is avoiding any speculation that it might duck out of Europe entirely. But let’s revisit its hardships over the last decade so we can establish a framework for why Ford is having a rough go of it.  Read More >

The Ford Mustang grabbed its passport and went overseas in 2015, crossing border after border as its parent company followed through on a plan to plunder (and grow) the right-hand-drive sports car market. Customers in Europe and China finally got a taste of pony car action as Mustang sales expanded to over 140 countries.

At home, the Mustang remains a strong seller, but the market’s growing distaste for passenger cars means even rear-drive coupes and convertibles with a storied heritage aren’t immune to volume loss. After reaching a post-recession U.S. sales high of 122,349 cars in 2015, Mustang sales fell to 81,866 units last year. Volume over the first two months of 2018 is down 21.1 percent over the same period last year.

Not to worry — the Mustang’s European popularity is keeping executives in Dearborn happy, right? Well, European customers help, but they’re far from the model’s savior. Especially if they stop buying. Read More >

Despite a multi-billion-dollar emissions scandal, a massive corporate black eye, and all signs pointing towards a future devoid of diesel passenger cars, Volkswagen Group CEO Matthias Müller isn’t willing to let go of the past.

While addressing media at the the Geneva Motor Show, the VW boss — perhaps angered by all the newfangled electric cars in attendance, one of which is a Volkswagen — predicted the public would soon realize the error of its ways and return to the comforting arms of diesel propulsion. There’s a renaissance on the way, he said.

However, the fly in Müller’s soothing ointment appears in the form the The Government and the industry’s (and public’s) inclination to go where the incentives are. Read More >

Electric vehicles. Yawn, right? It’s easy to be cynical about the high-flying production promises tossed about by practically every automaker, but if the real-life version of Honda’s Urban EV Concept looks half as quirky as the show car, the big H might have a bonafide green hit on its hands.

As the Geneva Motor Show opens to journalists, Honda has announced a production version of the retro-styled hatchback. It turns out CEO Takahiro Hachigo wasn’t lying when he said the Urban EV wasn’t just auto show eye candy. Read More >

You’ve no doubt read about how demand for the defunct Nissan Murano Crosscabriolet will surely fund the retirements of those willing to let go of their beloved vehicles. In the wake of that model’s cancellation, only a single drop-top crossover remained: the Range Rover Evoque Cabriolet.

Well, not for long. Volkswagen has announced its newest crossover, the Golf-based T-Roc, will give fans of this peculiar segment a cheaper option. The T-Roc, which sported a targa top and two-door layout when it first appeared in concept form in 2014, converted to a typical four-door hardtop when launched last year. Now, there’ll be a two-door soft-top arriving for 2020.

Arriving, we should point out, an ocean away. VW has different plans for North American consumers, and you can bet on it not having an open-air option. Read More >

The popular thing among automakers last year, besides the incessant preaching of “mobility,” was the pledging of allegiance to an electrified future. This year, it seems diesel fuel is the bogeyman all automakers must reject. We’ve already told you about Porsche’s abandonment of the blacklisted power source. Now, it’s Fiat Chrysler’s turn.

Though unconfirmed at this time, the Financial Times (subscription required) reports that FCA’s mid-term plan, due out this June, will announce the dropping of diesel across its lineup by 2022. If you’re currently wondering how you’ll tow a horse trailer using a battery, don’t get too upset just yet. Read More >