Ever since four-door coupes became a dime a dozen, the European auto industry has been looking for a new niche, and for much of the past year or so, it seemed that the next big thing would be “small premium.” Inspired by the MINI, European automakers from Alfa to Audi have been trying to get consumers to spend big money on tiny, plush cars. But with Audi’s A1 starting at €15,800 ($20,873), it seems that even the efficiency-happy Germans aren’t willing to pay the price of entry for this new niche. Audi built capacity for 100k A1s at its Brussels plant, but since introducing the car in August, Audi has sold only 20k of the pricey subcompacts. And yes, the slow sales do seem to be tied to the exorbitant pricetags.
Category: Europe
There is considerable new construction in Bahovista, Bulgaria, in what the New York Times calls a “goat-trodden village in the foothills of the Balkans.” China’s Great Wall and Bulgarian wrestler Grisha Ganchev have teamed up to build an assembly plant which, if the NYT is right, “should begin turning out the first Chinese-branded cars in the European Union,” sometime next summer. Which ones? Wait, we’ll get there … Read More >
With the effects of the various scrapping incentives across Europe slowly working themselves out of the system, the worst appears to be over in Europe. According to the official numbers of the ACEA, registrations of new cars across the EU27 fell by 7.1 percent to 1,069,268 units in November. However, this November is above the 904,577 units sold in November 2008. From January to November, a total of 12,349,743 new cars were registered, or 5.7 percent less than over the same period of 2009. All in all, Europe seems to have weathered the carpocalypse much better than the New Country. Read More >
The “News. Any way you want it” syndrome is no longer an exclusive of China. You can have it from Ford as well. Looking for Ford success? No problem! Looking for Ford market disasters? We can deliver! Would you like the good news or the bad news? Read More >
While I was working for the German auto industry (and that wasn’t that long ago), I used to call it the last outpost of unabashed male chauvinism. From dealers (where female customers are treated with disdain) to the boardroom (where women serve coffee), the business remains a man’s world. BMW wants to do something about it. Come on, BMW? Read More >
The relationship between automakers and automotive journalists can be extremely difficult, as automakers often hold access to cars hostage based on a journalist’s coverage of them. If, as an automotive journalist, you like every car you drive, the world is your oyster. Automakers invite you to every launch, PR guys gaze longingly into your eyes, and all is right with the world. If, on the other hand, you write negatively about a car, you can find yourself watching the gravy train pull out of the station without you… or, as it turns out, you could even be sued. At least in Italy.
Carscoop reports that Fiat is suing the Italian TV show AnnoZero for “defamatory” remarks about the Alfa Romeo MiTo Quadrifoglio, after the program asserted “the overall technical inferiority of the Alfa Romeo MiTo” in comparison to the MINI Cooper S and Citroen DS3 THP. The details of the case are sketchy, but you can find Fiat’s press release on the matter after the jump.
Whenever I talk to Chinese carmakers, they dream of going to Europe and the U.S.A. I tell them that GM, Volkswagen, Daimler, BMW et al would be dead, would they not have gone to China. “Why do you want to go to markets that are not going anywhere?” They still want to go. “Why to you want to enter a cage of wounded lions?” They still want to go. And here they go again: Chery shows its DR3, a four-door hatchback, known in China as the Fulwin2, at the Bologna Auto Show from December 4 to 12. They want to take it to the European market in June next year. Read More >
Did you hear that sound? That was a sigh of relief coming from Germany. Germans are buying cars again. In November, they bought more cars than in October 2010, and even more than in November 2008. What’s more, November 2010 is only 6.2 percent below the Abwrackprämien-exaggerated November of the prior year. The usually very conservative Kraftfahrtbundesamt that released the official registration data even dares to prognosticate that “year and sales are expected to be 2.9 million cars.” Translation: Read More >
As documented here, German carmakers mostly talk about EVs, but build very few. Volkswagen’s Christian Klingler even said that customers don’t want EVs, only governments do. He’s sure right about the government part. The German government prods its carmakers to get on with the building of EVs. Germany’s Economy Minister Brüderle (the very same that said no to Opel help) demanded “more tempo” in the EV department. The German government wants to see a million EVs by 2020. The government is worried that the Germans are missing the (electric) train. Just like the automakers, the government is a lot of talk, and little action. Read More >
Japanese carmakers are becoming increasingly worried about the Korean competition.
Everything looks good for South Korea:
- The Korean currency, the Won, is low
- Quality is improving
- Korea hammers out trade deal after trade deal, making Korean exports even cheaper
Japan on the other hand: Read More >
The rescue of Chrysler is making great strides. Sergio Marchionne today presented union officials an audacious plan. Powered by an investment of $1.3b, Chrysler and Fiat will build Alfa Romeos and Jeeps under one huge roof. The roof is in Mirafiori, Italy. Also known as the Fiat factory in Torino. And who will pay for all that? Fiat will pay 60 percent. Chrysler will pay 40 percent. Read More >
While everybody is dreaming (or shuddering at the thought) of masses of electric vehicles hanging off the grid at night, while that last ICE is donated to the Smithsonian, Volkswagen is taking a completely different tack. Forget the grid. Get your very own power plant. And guess what: It’s ICE powered. Read More >
Hyundai could have timed this announcement a bit better. Wouldn’t the following announcement have been a fine crowning of TTAC’s Korea week? Instead, the week ended unceremoniously with a reflection on thee shitboxes. From shitbox to market leader: Hyundai has kicked Toyota from the pedestal as the largest Asian carmaker in Europe. In a way. Read More >
Did you buy the GM share? If the answer is in the affirmative, then you should stop reading immediately. There are great new stories my Murilee Martin, just as a for instance.
Are we entre nous? Ok, here are the bad news: GM’s black hole in Germany, called Opel, turns out to be more humungous and more financial-matter sucking than ever imagined. Read More >
Isn’t it great to have the government as your biggest shareholder? Makes for good photo-ops. For the second time, Barack Obama went behind the wheels of a Chevy Volt, with the world press in attendance. Actually, it was the Volt’s European twin, the Ampera.
The Prez. had to weigh national security and time at the NATO summit in Lisbon against checking out the range extended Opel, and the Opel won. Read More >














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