A few days ago the BBC reported that, officially, Russia was losing 1 trillion rubles (that’s about $32.5b to you) due to corruption. Also coming 154th on the corruption perceptions index does not help matters, either. “Gigantic sums of money are being pocketed by officials and dishonest businessmen,” said Russian President Dmitry Medvedev, “Deal with them and put them in prison – there is no other way out.” So it sounds like President Medvedev is serious about dealing with corruption. He starts with a foreign company with deep pockets: Daimler. Again? Read More >

Carmageddon? What carmageddon?

Germany’s auto industry has a huge problem: Way too many customers. “We have that fattest order books of all times,” said Esther Bahne of Audi to Germany’s Spiegel magazine. Result: Customers have to wait months for their cars. Sometimes longer than ever before, says Der Spiegel. Read More >

America – the greatest country on earth. At least when it comes to Chevy Volt prices. You think its $41,000 tag is expensive? Wait until you hear what the Europeans will have to fork over for the rebadged Opel Ampera, and the Volt will look like the greatest deal on earth. Especially after subsidies. Ready? Read More >

Say what you want against Volkswagen, but they are moving the metal. In the first 10 months of 2010, Volkswagen delivered just shy of 6m cars to customers. 5.98m to be exact. In the same period of 2009, they had sold 5.32m, so that’s a plus of 12.4 percent. According to a message from Volkswagen HQ, the world market only rose 4.5 percent in October, the Volkswagen Group increased sales by 9.8 percent in the same month. That’s market share, baby! Read More >

Did you know that all drivers in Germany are potentially subject to an Idiotentest? Well, “Idiot Test” is the popular term; technically it’s called the Medizinisch-Psychologische Untersuchungen (Medical-Psychological Test) and it’s administered to some 100,000 Germans each year by the Bundesanstalt für Straßenwesen (Federal Highway Research Institute). The point is, if a German driver does something colossally stupid, like run a red light, wreck while racing, or get caught driving drunk,  the Bundesanstalt makes him or her take a test to determine that they are medically and psychologically capable of driving safely. If you fail, either get sent back to (mandatory) driving school, or you lose your license (and gain the sneaking suspicion that your high school counselor was right, and you really are an idiot). Anyway, while you’re pondering the pros and cons of this system compared to America’s lassez-idiot approach, consider this: the number of idiot tests administered to German drivers was up three percent last year, the first time in years that the number went up. Apparently you can’t keep automotive idiocy down. Read More >

The Germans were always a bit sceptic or downright hostile when it came to the great car electrification. Now they get jolted. Better late than never, says Audi and announces their first Plug-In Hybrid for 2014. Of course, the announcement can’t be done without the usual Volkswagen/Audi brand of heavy hubris. Read More >

Oh, to be a fly on the wall of the GM boardroom:

“Did you see the latest Opel numbers?”

“Jeez! Horrible!”

“What are these clowns thinking? We have an IPO to close.”

“Talk about timing. We should have sold them to the Russians. Who was the moron that cancelled that deal?”

“Whitacre.”

“I hope the next rattlesnake wins.”

Indeed, the news from Rüsselsheim aren’t good, and with the IPO closing this coming week, they could not have come at a more inopportune time. Read More >

With all the intrigue around the Porsche-takes-over-Volkswagen and Volkswagen-takes-over-Porsche, there are the expected ups and downs. Recently, there have been voices it might not happen. Reason given: The lawsuits. I believe, this is just propaganda to demoralize the opposition and to force them to settle. In the meantime, facts are being created. And here is another fact: Volkswagen officially acquired the auto trading business of the Porsche Holding in Salzburg, Austria. The company changes hands for €3.3b ($4.5b), a sign that this is not your ordinary car dealership. Read More >

The worldwide auto industry is officially on the mend. Carmageddon is behind us. The future is bright and shiny. How do I know this? If Rolls Royce can have higher annual sales than in any of the 30 years before, life must be good again. And there still are 2 months to go, with some possible Rollers under some possible Christmas trees. Read More >

Audi’s sales in Japan went down 20 percent in October. The macro-oriented crowd points at the fact that the domestic Japanese market was down 26.7 percent in October, and that Audi or its dealers have no reason to complain. And what are Japanese Audi dealers doing? They are complaining. They say that they have enough buyers, but not enough cars to meet the demand.

They all go to China. Read More >

One by one, automakers announce that China either is or will be their largest market in the world. First and foremost, there’s  GM. The General officially sells more cars in China than back home (some nitpicking caveats remain.) Volkswagen’s Audi said its China sales are expected to exceed German sales next year. If you want to sell luxury cars, you need to ship them to China. China already is the world’s largest market for the Mercedes-Benz S-Class , and China might soon outclass the Germans in all Mercedes classes. Nobody buys more Porsche Cayennes than the Chinese. With all these records by other makers, BMW can’t possibly remain on the sidelines. Read More >

Except for a lot of green talk, my German compatriots are not known for enthusiastically embracing the EV idea. Japan, even China is way ahead of them. Despite high gasoline costs (taxes, taxes), even hybrids are everything but runaway successes in the Fatherland. If Germans want to save, they buy a Diesel, or take the train. But even the train isn’t the bargain it used to be. One car company bets big on Electric Vehicles. So big, that they built a whole new factory for them. You won’t believe who. Read More >

BMW is on a roll at the moment. They’ve booted Mercedes-Benz (their most hated rival) off the number one slot in India, they’re making big steps in China and their profit is rising fast. That last point is the fulcrum of this article. You see, profit is where BMW is forecast to have problems. Not lack of profits, but the size of them. Read More >

Worried about the Chinese grabbing a piece of GM while it’s cheap? Don’t feel like the lone ranger. China is joining  an illustrious circle of investors from Kuwait, Abu Dhabi and around the world and grabbed a “notable” stake in Daimler. An unnamed Chinese institutional investor has bought a chunk of Daimler, as their CFO Bodo Uebber told the Frankfurter Allgemeine Zeitung (FAZ), which sent an advance copy to Reuters. Read More >

After the Abwrackprämien-high in 2009 (which saved the auto industry from damnation and got rid of a lot of old cars), and the short hangover that followed, Germany is definitely back to normal. For the second month in a row, German new car sales are at 2008 levels. According to the official data of the German Kraftfahrtbundesamt, October sales were 20 percent below October 2009, but only 0.8 percent below October 2008. The graph above tells a better story. Read More >