During the courtship stage between Geely and Volvo, and after their recent nuptials in Gothenburg, Sweden, we often raised the matter of Chang’an. Chang’an has had a joint venture with Ford since 2001. Under the JV, they also make Volvos in China, the S40 and S80, to be exact. They don’t make them in large numbers. 22,405 Volvos were sold in China last year, up nearly 80 percent compared to 2008. The S40 has been on the Chinese market since 2006. The S80L, a long version of the S80, was introduced last year. Chang’an had been in play as a suitor for Volvo, but bowed out.
What will happen to Chang’an’s Volvos? Read More >
When all this SUA happened to Toyota, many predicted that Toyota was on a downward spiral to assured destruction. Well, turns out rumours of their death were a bit premature. In February, Toyota achieved record sales in Australia and Canada and their decline in the United States, was a lot less than many had predicted. In March, Toyota’s sales (with the help of some incentives, which were below industry average) grew. Now Toyota can add the UK to the mix. Read More >
So today, Renault, Daimler, and Nissan did what we said they would do and announced a three-way tie-up. Which is good, because we are running out of inappropriate pictures. The marriage goes far beyond the exchange of symbolical stock holdings. Read More >
Don’t you just hate it when a band or stand up comedian you like is doing a show in your area but the second tickets go on sale, they’ve sold out? Then, if you’re really desperate, you enter the world of the ticket tout, where you could pay exorbitant prices for tickets which might not be genuine. Then, if that fails, you fall back on the “Oh, I’ll wait till it comes out on CD/DVD.” train of thought. Then, when you do get it, you’ll always listen/watch it with a sense of emptiness, knowing you missed out on that live performance. Are you feeling depressed now? Well, think how the people of Europe are feeling. At least those who yearn for a certain Ford Focus. Read More >
Dang! Daimler thinks of “moving several key divisions from Berlin to its headquarters in Stuttgart to cut costs,” reports Bloomberg. There goes another source of inside intelligence: One just had to hang out at the bar of the Hyatt next to the Daimler Quartier at the Potsdamer Platz, and when there was absolutely no info to be written for TTAC, a few drinks later, we had some. The flip charts in the conference rooms of the Hyatt also were fertile grounds: They always forgot to remove their scribblings. Where will we get future sales strategies from now on? Ah, the good old times …. Read More >
Unheard-of news are emanating from Rüsselsheim. So unheard-of that Automobilwochefound it necessary to send out an Extra! Extra! Lesen Sie all about it e-mail to its subscribers: GM’s Opel, the very same company that wants to shed 8,000 of its 48,000 jobs in Europe, is short of people. They are hiring! One reason: Jobs are being exported from the U.S.A. to Europe. Read More >
Inspired by the Volvo-Geely deal, Automotive News Europe [sub]’s Luca Ciferri contemplates the unthinkable:
Back in 1986 Ford offered to buy nearly 20 percent of Alfa with its stake rising to 100 percent if a turnaround plan for the struggling government-owned brand succeeded…. But the venerable sports car maker is still European. Its destiny is decided in Turin. If Ford had bought Alfa, the brand probably would be now owned by a Chinese automaker…. I wonder how the Alfisti would react to the prospect of decisions on future Alfa cars being taken near Beijing. I wonder what the unions would say if they had to learn Chinese?
Well Luca, infamous Italian xenophobia aside, perhaps the better question would be could Alfa really be any worse off than it currently is? If the brand manages to survive the year under its blessedly Italian leadership, it will be lumped into a GM-style “brand channel” and its new products will be based on Chrysler’s leftovers. Oh, and there’s no guarantee that it will survive its “strategic review” at all, as Fiat has said there’s a chance that Alfa won’t survive past another year. So who knows, maybe the Chinese will end up with Alfa sooner than Ciferri might imagine.
Here’s some encouragement for the folks freaking out about BMW’s front wheel drive heresy. Ford has found a way to make 345 horsepower work in an FWD chassis, shattering the conventional wisdom that 250 hp marks the reasonable limit for front-drive performance. Well, at least until the 500 lucky owners of this limited-edition mega-hatch start adding up their tire bills in a few years. According to Ford, the RS500 should be looking at a 5.6 second 0-60 time and a top speed of 163 mph. And no, you can’t order one at your Ford dealer in the US.
Last week, we shared with you an ingenious method of the U.S. Department of Justice to contribute to the deficit-afflicted holdings of the U.S. Treasury. The method involves shaking down foreign companies who grease the wheels to get deals in even more foreign lands. Or who even think about greasing the wheels. Caught between European laws and U.S. laws, these companies pay and promise to sin no more. Read More >
In America, certain European cars ostensibly set their drivers apart as willfully unique characters. Cars like the Volvo C30, or just about any Saab indicate that the driver’s desire to be seen as quirky iconoclasts outweighs any of the more rational metrics that might guide the car-buying process. And while in the US, compact size and European pedigree are the keys to stepping out of the automotive mainstream, making an automotive statement in Europe requires the opposite approach. Pickup trucks, muscle cars and American SUVs are the signifiers of choice for the Europeans who find themselves marching out of step with their efficient hatchback-driving fellow citizens. As a result, European advertisements for motorized guilty pleasures, like the one above, play on the perception that big V8s are downright antisocial. By refined European standards, no one should drive a brutish Camaro… but what’s more fun than blowing a supercharged raspberry at social niceties? And though the marketing for American muscle cars in Europe practically writes itself, global brands like Chevrolet don’t necessarily want the Ameri-barbarian associations… which might explain why Chevrolet has canceled plans to build a right hand drive Camaro.
In June 2009, Fiat was handed 20 percent of a washed and rinsed Chrysler for no cash, and despite protests, the deal was rammed through. The UAW was given 55 percent, the U.S. and Canadian governments controlled 8 and 2 percent, respectively. Often overlooked, or forgotten, the deal came with an option for Fiat to raise its stake to 35 and eventually as high as 51 percent if it meets some rather vague financial and developmental goals, hashed out with the U.S. government.
Sergio Marchionne thinks the goals are met. He plans to increase Fiat’s holdings in Chrysler to 35 percent within two years, says Reuters. Read More >
In the world of automobiles, it appears that China isn’t the only fruit ripe for the plucking. Brazil is buzzing. They’re weathering the current economic fragility very well, and companies are looking to invest in there. Down in Brazil, economically speaking, it’s car-naval time! Read More >
I’m running out of gratuitous tie-up pictures, so let’s celebrate the good news with a video: The Nikkei [sub] sends us the news that Nissan and Daimler “are in the final stages of negotiations to obtain stakes of less than 5 percent in each other.” This comes on the heels of yesterday’s news that Daimler and Renault will exchange shares. With Nissan joining the couple, the tripartite axis will be perfect. No Italians this time. Read More >
Ah, the tangled web of automotive high finance. Victor Muller, CEO and largest shareholder of Dutch automaker Spyker Cars said “oops” (or Dutch words to that effect) and reduced his voting interest is Spyker from 34.3 percent to 26.8 percent.
Why? It just dawned on Muller (or his CPAs) that with more than 30 percent he would have had to make a buyout offer for the rest of the shares. After having gobbled up Saab through complex dealings involving Russian money of dubious provenance, being forced to buy out the whole company because of some silly law wasn’t a high priority for Muller.
Rules are rules, so what’s a newly minted tycoon to do? Read More >
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