The other day I heard a saying which I think is rather apt for this article:
“You can shear a sheep many times, but you can only skin it once”. Except in this article the “shear” is “fleecing” and the sheep is “Daimler.” Bah, bah, bah. Firstly, the U.S Government did a little shakedown of Daimler to the tune of $185 million. When that succeeded, our friends in Russia decided to check this gold mine for any left over deposits. Word spread of them thar gold in Sindelfingen. Incoming golddiggers! Forexyard (via Reuters) reports that Egyptian authorities are going to investigate the matter in relation to bribery in Egypt.
One of the last vestiges of the Daimler-Chrysler union is being swept away, as Daimler has announced that it will delist from the NYSE. Daimler initially listed itself on Wall Street in 1993, as it began its “marriage made in heaven” with Chrysler. Since then, Daimler says advances in electronic trading make it easier for traders to buy and sell its Frankfurt listings, and that the low volume of NYSE trading isn’t worth all the financial regulation that comes with a Wall Street listing. According to the company, less than five percent of its trading volume comes through its US listing. This means no more SEC filings from the German firm, although it insists that the US market remains important to its business and that it wants to maintain open communication with American investors who own 17 percent of Daimler’s shares. And it definitely has nothing to do with the company’s recent settlement of a bribery investigation by the DOJ. Or the fact that Chrysler could find itself back on the exchange within another year.
Want to have bragging rights to the highest motorized street legal Porsche in Porsche’s recorded history? Don’t want to have a tuned one (Uwe Gemballa is still missing, Auto Bild has already written him off.) No problem! If you have the cash, Porsche will set you up with a 620 hp 911. But no dawdling around: If you want to be one of the 500 people who can drive to work in that brute, you better get in line right now. Read More >
As expected, the Loan Guarantee Committee decided not to decide anything in their meeting at the Economics Ministry in Berlin. Opel had requested €1.3b in state aid from Germany. They are making the rounds in Europe to collect another €500m. Countries that committed money, such as the U.K., will only pay if Germany pays. Read More >
Today could be a big day for Opel. Probably, it won’t. The Loan Guarantee Committee is meeting in the Economics Ministry in Berlin. On the agenda: Opel’s request for €1.5b in state aid. The timing is not coincidental: Last weekend, elections were held in the Opel state of North Rhine Westphalia, which ended in a mess. Coalition discussions are on-going with unsure results. So let’s move quickly while Berlin can make decisions? Not exactly … Read More >
The Chinese leader of the purchasing department of a very large Chinese car manufacturer once informed me: „Clutches? Don’t buy any Chinese clutches. They are all [expletive deleted]. We import all of our [expletive deleted] clutches.” Volkswagen is setting out to change that [expletive deleted] situation. Read More >
The long awaited Polo GTI is not long awaited anymore. Except if you live in the U.S.A. Then you can wait until the proverbial cows come home. Or until someone at VeeDub has an epiphany and sends the thing stateside. (I still remember how long it took them to introduce the original Golf GTI to the U.S. Forever. We begged them. “There is a 55 mph speed limit,” they said. “They buy Porsches,” we said. “That’s something else,” they said. “They buy muscle cars,” we said. “Stop bugging us,” they said. And how long did it take them to decide to bring a civilian version of Polo to the U.S.? What, 35 years?)
The textbook example of engine downsizing that gets 180 hp out of its twincharged (turbo and supercharger) pintsized (1.4 liter) TSI engine, while making owners of gas stations increase their anti-depression medication with a 40 mpg US rating (estimated) is being officially launched today in Germany. In style: At the Nürburgring.
Long-wheelbase Benzes have a long and proud history, having been owned by such icons of cool as John Lennon and Hugh Hefner, as well as infamous villains like Pol Pot, “Baby Doc” Duvalier and Jeremy Clarkson. And, as Auto Motor und Sport informs us, the decline of other glandular vehicles like the Suburban has not prevented a new round of six-door Benz models. In fact, something about this picture indicates that vehicular size inflation is not completely a thing of the past… can you spot it?
The predominant critique of the cash-for-clunkers programs that have proven so popular in the US and Europe is that they cause unsustainable demand bubbles which cause sales to collapse after they expire. Sure enough, a look at the German market’s Q1 performance shows that the OEMs who most benefited from the program (primarily firms who focus on low-cost cars) are seeing far more significant declines than US-market firms have seen. In the first three months of this year, firms like Hyundai (-40%), Fiat (-58%), Suzuki (-54.6%) and Kia (-49.4%) have been suffering mightily from a hangover caused by the world’s most generous cash-for-clunker program. But the big news isn’t this small-car bust: it’s the fact that these firms’ success last year have caused the percentage of cars on German roads with electronic stability programs (ESP/ESC) to fall.
When German car sales exploded in 2009, fueled by government incentives, everybody knew there would be hell to pay in 2010. Sure enough, the market cratered in January and February. In March, new car registrations were down 26.6 percent, but at least, they had caught up with 2008 pre-carmageddon levels. So the thinking went: If the market continues that way, it might get back to its old normal, and the pull-forward theorists will be proven wrong. Then came awful April … Read More >
Automotive News [sub] reports that Volkswagen has approved a plug-in electric version of its Golf hatchback for sale in the US by 2013. According to AN [sub]:
Called the Golf Blue-E-Motion, the car forms part of a broad-based electric-vehicle offensive by VW that will see similar versions of the Mexico-built Jetta and the Chinese-market Lavida also going on sale in 2013.
Powered by a 115-hp electric motor, the front-drive Golf will be VW’s higher-end EV, fitting above the Up! Blue-E-Motion subcompact “city specialist.”
The Volkswagen brand grew sales across all nameplates other than the Chrysler-rebadge Routan minivan, en route to a 42 percent overall volume increase. Audi maintained its momentum, with a 33 percent improvement over its 2009 sales, on strong sales from the A5 and Q5. The new E-Class drove the Mercedes brand to a 21 percent improvement, although Smart was down nearly 50 percent to 680 units. Despite 50+ percent drops in 5- and 6-Series volume, BMW managed to hang onto a nine percent volume increase, including a five percent improvement by the MINI brand. Ze Germans may be focused on China in the long term, but for now they’re back to methodically growing their US-market business.
To stay alive, Opel wants to scale down. The factory in Antwerp is being closed. With amazing results for Opel’s bottom line: Closing the factory costs GM around €400m ($532m) in termination benefits. GM and the unions reached an agreement on the termination benefits earlier this week, reports Reuters. There are 2,600 workers in Antwerp. Now do the math: $532m divvied up amongst 2600 workers is a little bit over $200,000 per worker. Ouch! Wait, there is more pain … Read More >
Germans are ready to buy an electric car. Under conditions: The car must come with a justifiable price, and with the performance one expects from a common ICE. In other words: Forget about it. Nein. Read More >
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