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 >

When Volkswagen bought 20 percent (well, 19.9) of Suzuki, everybody assumed it would be one of Volkswagen’s favorite “win-win-win” deals: Volkswagen gets better access to India, where Suzuki owns half the market. Suzuki gets better access to China, where Volkswagen is the largest passenger car brand. Both will work happily together to rule the world by 2018. Now Suzuki Chairman Osamu Suzuki says at least the Indian part is not true. Read More >

The following is a “Confidential” memo from the US embassy in Berlin, leaked in the latest Wikileaks dump, describing German reaction to GM’s flip-flop decision to not sell its German subsidiary, Opel. The memo reveals that Germany saw GM as a “unreliable partner” and that at least one German government official believed that “if the U.S. Government had GM under better control, this would not have happened.” The document also confirms that GM scuttled the deal largely over concerns about Russian access to its intellectual property, and that Opel may well have been happy to see the deal fall apart rather than face losing its entire BMW supply business. Though none of this information is completely new, the leaked document provides a fascinating insight into the muddled mess that was the Opel rescue.

BERLIN 00001395 001.2 OF 002

Classified By: ECONMIN Robert A. Pollard for reasons 1.4 (b,d).

1. (C) Summary: Just hours after Chancellor Merkel’s historic November 3 address to a joint session of Congress, General Motors (GM) canceled its sale of Opel to Canadian auto parts manufacturer Magna. The decision, which followed repeated assurances from GM that it was a done deal, came as a complete shock in Germany and dominated media coverage throughout the day. Merkel herself was reportedly highly upset over GM’s flip flop. Ulrich Wilhelm, the Chancellor’s spokesman on Opel said the German government “regretted” the decision, and reminded GM that it must now repay Berlin’s 1.5 billion bridge loan to Opel by the end of the month, while FDP Economics Minister Rainer Bruederle described GM’s action as “totally unacceptable.” The cabinet was expected to discuss the GM move on November 4. Opel’s labor unions, which had strongly backed the Magna sale because of its promise to save jobs and keep plants open, announced that workers would withdraw all concessions made under the terms of the Magna deal and start a general strike at Opel plants on November 5. While anger is widespread, there are already some voices outside the government advocating acceptance of GM’s announcement as the only viable alternative to a total collapse of Opel. End Summary.

Read More >

Major players in the industry think that EVs are a stopgap measure at best. Volkswagen declared that nobody wants EVs, except governments. In Japan, Toyota and Honda are talking louder and louder about hydrogen. There must be something better than plugins: A revolutionary technology that powers the car from a renewable energy source in an environmentally responsible fashion.

BMW just found what the world needs. Read More >

China sold more cars last year than Volkswagen built Bugs in nearly 30 years. This year, China will make, sell and buy probably more than 17m cars, and Volkswagen owns a good chunk of that market.

Sou Weiming, vice president of Volkswagen Group China (and himself an import from Singapore) said VW sold 1.6 million units in China in the first ten months and unless the sky will drop, they will have sold 2 million by the end of the year. Read More >

Although it did what it needed to do, it looks awful

Peter Birtwhistle, designer of the legendary short-wheelbase Audi Sport Quattro (above), tells Autocar what he really thinks about its design… and just in time for Audi to announce that its Ur Quattro-inspired Quattro Concept will be built in limited numbers. Birtwhistle explains that the real cause for Ur-ugliness was “stretching the Quattro look over [the shorter Audi 80 platform],” a challenge that also echoes with the Quattro Concept, which slaps retro design elements on a short-wheelbase version of the handsome RS5. As a result, the Quattro Concept looks every bit as awkward and disjointed as the Sport Quattro, with just a touch of Camaro-esque retro-self-consciousness. But as Birtwhistle’s line reminds us, sometimes ugly is the best way to emphasize purpose.

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 >

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 >

Last Friday, production of the Volkswagen Passat was stopped in Emden, Germany. Not because there aren’t enough customers for the car. There are too many. Read More >

Ready to buy some GM share tomorrow? A consummate insider who sits on the board of an important GM company says: Don’t.

Klaus-Franz, Chair of the Opel works council and Vice Chairman of the Opel supervisory board warns:  “The IPO is premature. Sure, GM has delivered three good quarters. But he restructuring in Europe must be finished to give investors the visibility they need.”

Franz knows the skeletons hidden in Opel’s closet. In an interview with Germany’s Focus Magazine, Franz gives valuable investment advice to potential GM shareholders. To repeat: “Don’t.” Read More >

A veteran district court judge in Herford, Germany earlier this month dismissed 42 speed camera citations on the grounds that they were not issued for any legitimate safety purpose. Judge Helmut Knoner blasted the use of cameras that has turned into a multi-billion-dollar worldwide industry.

“Speed cameras are often a big rip-off,” Knoner said. “There is no law that regulates when, where and how measurements are made. For me, the reasonable suspicion is that cities, counties and police authorities only want to make money.”

Read More >

Nick Taylor’s layman’s observations of American cars in China are a great first impression view.  But first impressions can be deceiving. It is true that the Chinese auto market is very much similar to the U.S. market. They love 3 box “real cars” (trend recently shifting a bit), they love SUVs, they love big cars if they can afford them.  “American” cars, mostly Buicks, Chevys and a smattering of Fords on Chinese roads are mostly made in China.  Just like the “German” or “Japanese” cars that are made mostly in China.

China as an export market for U.S. cars is a whole other matter. China has a 25 percent tariff on imported cars. That pretty much limits car imports to segments where price doesn’t matter, or where a high price acts as a differentiator from the riff-raff: Luxury cars. And this is where Europe reigns supreme. Read More >

I’ve always maintained that despite green noises about electric cars, Volkswagen, deep in their Wolfsburg hearts, doesn’t believe in them. Because they don’t make sense. If they are too expensive, people won’t buy them. Volkswagen has ample experience in this arena, probably more than anybody else. Ages ago, VW built a fuel-sipping 3 liter Lupo (3 liter / 100 km, 78 mpg.) The press lapped it up. The greenies creamed in their pants. Focus groups swore they’ll buy it, no matter the cost. They lied. In the showroom, the 3 Liter Lupo was a dud: Advanced materials had made it light, but also expensive. Customer reaction: “Interesting. Now how about that red GTI over there?”

Now finally, someone high up at Volkswagen has the guts to say it: Volkswagen doesn’t build electric cars because the customer wants them. Volkswagen makes EVs because the government demands them. Read More >