Is it an Elantra? A Sonata? The answer is neither… this is the sedan version of Hyundai’s “Mr Euro” i40, which launched first as a wagon. It’s the “Korea-Passat” that hopes to show up the “Kraut-Passat,” while taking the brand into the entry-premium space that the Passat CC helped define. And it looks every bit as good as you’d hope an Elantra-Sonata mashup might. Meanwhile, Euro-phile car lovers the rest of the world over now get to deal with the strange phenomenon of having to lust over Hyundai’s forbidden European fruit.
No? Never? Well, technically this isn’t a Buick, but an Opel Astra GTC OPC (at least according to Auto Motor und Sport). And given that Buick is holding off on bringing serious power to its Regal GS (at least until a coupe comes out of Germany), it’s fairly unlikely that they would bring a 290 HP, limited-slip, six-speed hot hatch to the Buick brand any time soon. Or is it? The line for “Mr Euro”-style self-delusion forms here…
As expected, troubled Saab has been thrown a lifeline by China’s Hawtai. Spyker announced today that its Swedish unit Saab has secured €150 million ($222.5 million) in funding from Hawtai. The Chinese company will be able to produce and sell Saab cars in China.
Hawtai will invest €120 million for a 29.9 percent stake in Spyker and provide a €30 million ($44.6 million) convertible loan to Saab. If the convert is exercised (which is pretty much a given – it matures in 6 months with a 7 percent interest rate) it converts at €4.88 a share, says the Wall Street Journal. Read More >
The Swedish National Debt Office has approved Saab’s deal to sell property to its Russian backer, Vladimir Antonov, but the Swedish firm is still waiting on approval of the deal from the European Investment Bank. Saab’s production operations have been shut down for two weeks, since the automaker began having trouble paying its suppliers. The EIB says its must simply review the deal, which would include the sale of Saab’s property to an Antonov-owned bank as well as the release of the remainder of Saab’s EIB loan, although GM gets to review the deal as well before it goes through according to thelocal.se. And since GM has long opposed Antonov taking a large share of Saab, which owns rights to some of its latest technology, Saab is reportedly also talking to several Chinese firms about partnerships that could save the struggling automaker.
In March, 1,558,915 new cars were registered in the EU. That is 5.0 percent less than in March last year. For the first quarter, demand for new cars was down 2.3 percent, with 3,583,185 units registered. Read More >
Typically, when a focused, well-branded company like BMW buys storied brands and then tries to combine them, the results are less than ideal for all involved. Thus far, BMW had actually been doing a fantastic job with its MINI and Rolls-Royce franchises, expanding into new niches while revitalizing potent brands with high-quality products. But putting the two together? It’s not clear how many buyers will line up for this Rolls-fettled MINI Goodwood (price estimated as high as £50,000), but at least the thing has good historical precedent in the Peter Sellers Mini-Rolls. And compared to some of the modern attempts to create premium city cars (hello Aston Cygnet), that makes this über-priced MINI-mashup something more than a mere cynical play for profits and C02 emission average reductions. In fact, it’s something of a tribute to BMW’s stewardship of two brands that could well have been botched over the past decade or so. Hit the jump for details on the Mini Goodwood’s posh appointments.
In the grand old days of the European auto industry, rival houses would battle for supremacy in endurance, road, rally and formula racing, the results of which were treated as far more important than (or, at least the basis for) such prosaic concerns as sales volume or profitability. In the modern era, this fierce competition slacked, as racing became about brand-building and competition moved into the arenas of sales and profits. Now, however, a new competition has erupted between every brand with a presence in the European market, only this time participation is compulsory and the stakes are survival in a super-competitive, mature market. And neither speed nor endurance will win this race against time: only reaching an EU-mandated carbon emissions goal by 2015 will do.
American auto enthusiasts often bemoan the lack of diesel options offered on the US market, looking to Europe as the promised land of oil-burning efficiency. But Europe’s love affair with diesel, which has been manifested in a 50%+ diesel sales mix for years, may be coming to a close. The WSJ reports
The European Commission–which has executive powers in the European Union–will propose to levy a minimum EUR20 per metric ton of carbon dioxide emitted on products like gasoline, diesel, natural gas and coal starting in 2013. But it will also propose adjusting the existing legislation by gradually increasing a minimum levy on the energy content of diesel to bring it to the same level as that of gasoline starting in 2018
Here’s the key: in addition to basing taxes on C02 emissions, the EU tax structure shift will result in fuel taxation based on energy content rather than volume alone. Accordingly, diesel’s higher energy content means it will see a more dramatic increase in taxation levels. And this single common-sense proposal is unleashing an intense debate in Europe about energy, taxation and the future of the auto industry.
Saab ended last week with “no solution in sight,” but after a busy weekend it seems that the Swedish brand has found a way to keep rage, raging against the dying of the light. Bloomberg reports that
The Swedish government has agreed to let Saab free up collateral now used to back the EIB loan, of which Saab so far has drawn 217 million euros, the people said. The freed-up collateral allows Saab to sell property to Antonov’s company. The property to be sold would include at least parts of Saab’s factory in Trollhaettan in southwestern Sweden, where the carmaker is based.
Saab (technically still called Spyker Cars) also recently sold its Spyker sportscar business to Antonov who continues to be the only major investor involved in Saab and its ongoing rescue. And though Antonov continues to be happy to pour his money into the firm, it’s not as simple as just writing a check: Antonov keeps offering support and governments keep shooting them down. Where’s the private capital love?
A report from Automotive News Europe [sub] says that Alfa-Romeo’s return to the US market has been delayed from late 2012 to 2013, as its parent company Fiat struggles to work out a satisfying turnaround strategy for the sporting brand. According to ANE’s sources,
In a presentation to bond holders held on March 29, [Fiat CEO Sergio] Marchionne showed a slide that said the Giulia sedan and wagon, which will replace the 159 sedan and Sportwagon, would be made in the United States starting in 2013. A year ago that slide, which was part of Fiat Group’s presentation of its five-year strategic plan, showed the Giulia models being built in Italy and debuting in North America in late 2012 as part of the brand’s return there. The Fiat spokesman now says the company still needs to decide where the make the Giulia.
Once again, Fiat finds itself torn between competing government backers. Should Fiat build the Giulia, which will be closely related to the replacement for the Chrysler 200 and Dodge Avenger, in the US (as a thank-you for receiving a bailed-out Chrysler) or in Italy (to keep jealous politicians and labor unions happy)? But it turns out that this isn’t even the extent of Alfa’s problems…
Saab’s inability to pay suppliers led it to request a release of some of its debt collateral by Sweden’s National Debt Office, reports Reuters. The NDO has loaned Saab €400m, but with its Russian backer Vladimir Antonov still unable to inject cash into the company, Saab was forced to ask for some of its NDO loan collateral in order to cover its supplier debts. But, according to another Reuters report, NDO spokesfolks say
It is clear what the problem is and everyone possible is trying to solve the problem… a solution to the problem had seemed in sight, but that in the end it did not work out.
The NDO says it will keep working with Saab, and the automaker predicts a resolution by next week (without offering any further details). After a year of independence from GM, the Swedish brand could well be reaching the end of the line.
If there’s one factor that most dims enthusiasm for cars, it’s probably traffic. The frustration, misanthropy and waste engendered by traffic are such that it would come as no surprise to learn that traffic-related stress causes a number of health problems. But, according to a study by the World Health Organization [PDF here], you don’t even need to be stuck in traffic to be negatively affected by it. According to a WHO press release,
Traffic-related noise accounts for over 1 million healthy years of life lost annually to ill health, disability or early death in the western countries in the WHO European Region. This is the main conclusion of the first report assessing the burden of disease from environmental noise in Europe, released today by WHO/Europe. Noise causes or contributes to not only annoyance and sleep disturbance but also heart attacks, learning disabilities and tinnitus.
We regret that Frank Weber has quit. We thank him for what he has done and wish him the best for the future
Weber, Opel’s product boss, had previously led GM’s global midsize vehicle development and was the head of electric vehicle development (where he wetnursed the Volt) before moving to Opel. It’s not clear where he’ll be going, but he will be going to an “as-yet-unnamed competitor.”
In other industry personnel news, AN [sub] reports that Hyundai has hired GM veteran Steve Shannon to fill its head marketing position, which was opened when Joel Ewanick left for Nissan and then GM. Shannon previously held marketing positions at Saturn, Olds, Buick, Hummer, Saab and Cadillac in his more than 25 years at GM.
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