The folks at the F1 circus are getting desperate. Car makers are evacuating F1 as if it’s about to be wiped out by a hurricane. Honda gone. BMW gone. Toyota gone. Hyundai said “are you kidding us?” (Or Korean words to that effect.) And now someone, obviously on serious mind altering substances, thought they could get Volkswagen to come and play. Read More >
Germany’s new car market continues to be anemic. In September, sales for the first nine months were down 27.5 percent. Official October data are expected later in the day, or tomorrow. Nobody expects sudden growth. (The whisper number is -20 percent.) Nevertheless, the German car industry runs extra shifts and out of cars.
Why? Read More >
The Sixth Sense. The “Saw” movies. The Vanishing (Original Dutch version). The Fight Club. What do all these films have in common? They are like the “Porsche-Volkswagen” saga. Always an unexpected twist. Let’s start at the beginning. When Porsche tried to takeover Volkswagen, it really was a case of the mouse biting the lion. The reality set in, the credit markets collapsed, and Volkswagen went from being the takeovee to the takeover…er (how I managed to pass English is a complete mystery to me). [ED. Takeoveror?] But like any good saga, there’s got to be a final bite and there’s a 30 percent chance this one will happen. Read More >
German media calls it the “second economic miracle.” The German industry is hitting on all cylinders, a lot driven by exports. Europe’s biggest economy is officially forecast to expand by 3.4 percent this year, equal to the rate of 2006 and the highest since German reunification in 1990. When the recession/credit crunch hit a couple of years ago, the mantra from management to the unions was quite clear. “We need concessions to keep the company competitive and prevent going under.” Unions gave the concessions and life went on. But now, the climate is different. Volkswagen announced massive profits and Ford are also rolling in it. Well, if things are that good… ? Read More >
We’ve hosted our fair share of diesel skepticism over the years here at TTAC, but the latest data on diesel take rates indicate that oil-burners are more popular than you might think. Dieseldriver.com broke down sales of every passenger vehicle with a diesel option, and found an overall take rate of 32 percent over the first three quarters of 2010, and trending upwards. In the third quarter, over half of the two Audis with diesel drivetrains optional were ordered as oil burners, and the vast majority of Jetta Sportwagons sold are diesel-powered. And no wonder. Modern diesel engines can be glorious things, offering gobs of torque, shocking levels of refinement and great fuel economy. Diesel prices may have climbed somewhat in the last year or so (it’s no longer cheaper than gas), but they’re close enough to make diesel a real option. Well, at least for buyers of German cars.
Mention the word Tempo to a German car nut, and something very different than the Ford Tempo will likely come to mind. It’s easy to forget that in the fifties, much of Germany was in a very different state of development. And the Tempo played a role of motorizing the lowest level of transport still used by small farmers, tradesmen and business owners: the horse and wagon. With between 10 and 15 hp on tap, it was faster than the one horsepower wagon. But why would Tempo take one to the Avus high speed track to set a world endurance speed record? I guess it’s all in the name. Read More >
Herr Winterkorn is not backing off from the ambitious Strategie 2018. In eight years, Volkswagen wants to be the king of the hill, in all disciplines from making the most cars on earth to making the most money, from having the most satisfied customers to having the most brilliant ideas. Haughty hubris, you say? Winterkorn disagrees with you. “We are well-positioned to achieve the goals laid down in our Strategy 2018”, said Winterkorn as he presented the nine month interim report of Volkswagen today. Read More >
Editor’s Note: On Monday, TTAC’s Martin Schwoerer wrote about a planned record-breaking non-stop run of 600 KMs, from Munich to Berlin, with a car that was equipped with a “revolutionary” electric battery system. Something smells funny, he said, and vowed to donate 100 Euros in case the drive was completed. Well, it was. So, how does it feel to have pie on your face?
How about Vegetarians Against the klan? Or maybe the Tugg Speedman Foundation? No, there are probably better organisations to give my money to. Guess I’ll ask the Best & Brightest… Read More >
The Financial Times reports that Anti-trust officials in Switzerland are investigating the Bavarian car maker due to allegations made by a Swiss consumer TV show. The TV show sent undercover reporters to BMW dealerships in Germany (Swiss and Germany share a border, you know) to try and buy a car. The show claims to have found that BMW is blocking its dealerships in European countries from selling their cars to Swiss residents.
What makes this particularly egregious is that although Switzerland isn’t a member of the European Union (they like to stay neutral), it does have Bilateral trade agreements which guarantee free trade with its neighbors. Restricting trade? Under a free trade agreement? Uh oh…
Since Sunday, a story made the news in Germany that a Ford Fiesta and a Peugeot 308 had been crashed by Germany’s auto club ADAC, with horrific results. Both cars come with a five star Euro NCAP rating. Hence, everybody wanted to know which of the cars failed badly. Now the auto club says: It’s not the cars that are bad. It’s the crash standards. Read More >
Daimler wants to drastically increase Chinese production, at the expense of their booming imports. Dr. Z. told China’s National Business Daily (via Gasgoo) that their joint venture with BAIC, Beijing Benz Automotive Co, will expand its production capacity to 200,000 units a year. What won’t make people back home happy: Daimler wants to reduce the proportion of imported Mercedes-Benz models in the Chinese market to 30 percent from 70 percent. Read More >
When people talk about red hot car markets, the usually mean BRIC: Brazil, Russia, India, China. Nobody ever mentions Indonesia. Indonesia? That island nation has some 235m people, three quarters the population of the U.S.A. But it’s very under-motorized. Last year, Indonesians bought only 486,000 cars, 20 percent less than in the year before. Indonesia’s car production is not much to write home about either. According to OICA, Indonesia produced 464,816 motor vehicles last year. In 2005, they made 500,710. So let’s forget about them, right? Not so fast. Read More >
You know that something is a fad when A) it’s bubbling on the stock market or when B) snake-oil salesmen tout the newest revolution, and regular folks actually start believing them.We’re not quite there yet with “A)”, but check out what I call an exhibit for “B)”. Read More >
Volkswagen is rolling in money. In the first nine months, VW registered an after tax profit of more than €4b ($5.57b). No funky EBITA, no “gains before restructuring charges,” straight bankable after tax profit. That’s six times the €655m the company reported in the same period of the prior year. (While most other car makers reported hefty losses.) Read More >
It’s a bit hard to sell millions of units with a luxury brand. But with the help of a country that has more than 1.3b people, and where an A6 (long!) is a sign of “here comes a party hotshot, get out of the way,” Audi can perform the rare fusion of volume and luxury. Read More >
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