With more than 30 years of advertising under my belt, I’m no stranger to spin. Once in a while, I’m impressed by the gumption of some spinmeisters. This is one of those times.
So I read at Reuters that Jaguar is “ready to leap back to pre-crisis sales.” Reuters quotes Jaguar Land Rover’s head David Smith, who said: “In the past, Jaguar built more than 100,000 vehicles per year. We can return to such levels once the crisis is over.” Reuters says Smith gave those optimistic remarks to Germany’s Wirtschaftswoche.
So over to Wirtschaftswoche I go. At first, I think I found the wrong article. Read More >
The world’s supposedly cheapest car ($2,500 apiece) will cost $220,000 when Mumbai-based D.C. Design is through with it. They will keep the car’s snub-nosed shape, everything else has to go.
The standard two-cylinder 624cc, 33-horsepower engine will be replaced by a 1600cc engine. To make room for the motor, the back seats will be removed. The car will get new brakes, new suspension, and bigger 20-inch wheels to allow for the top speed of 200 kilometers per hour (124 mph). Read More >
The news coming out of India has been dominated by talk of the booming small car market, there’s another development which deserves some attention. The Economic Times of India reports that after two years of testing, India’s government is about to roll out a star rating system for (get this) fuel efficiency. The star rating system is voluntary for the first year, but starting next year the system becomes mandatory. The ET explains:
The proposed label will not only suggest the new car’s ideal mileage but also tell the buyer how the car performs compared to other models in the same category. The categories would be created on the basis of the vehicle’s weight. The best performer would be given 5 stars and the others would get fewer stars depending on their mileage. At the moment, sources in the government suggest not many cars are able to hit the top category.
Quick, someone bring me the forms I need to fill out to register my displeasure!
Honda, Toyota, Ford, Chevy, Tata, Renault and Volkswagen are all gunning for India’s small car market, with a number of new models unveiled or featured at today’s India Auto Expo. Some, like the Renault ULC, or “Ultra Low Cost” car still haven’t been revealed. For a look at some of the competitors that are on the road or have just been unveiled, check out our gallery below. With Toyota and Volkswagen publicly aiming for ten percent market share (and others surely hoping for a similar performance), the competition couldn’t be more cutthroat.
We also recognize there is a market (for the Nano) not only in developing countries, but possibly in the developed countries. For the United States we need a car which has a larger engine and we need additional crash test modifications and we are in the process of doing it.
Ratan Tata at today’s India Auto Expo [via Automotive News [sub]], suggesting that the world’s cheapest car could eventually be sold in the US. Fiat is already partnering with Tata to jointly sell the Nano in Latin American markets, so there’s a chance that the Indian city car could eventually show up at Chrysler dealerships.
Business Week reports that Toyota are planning to capture 10% of the Indian market. “India will play a pivotal role in Toyota’s global expansion plans,” Vice Chairman Kazuo Okamoto said today at the Delhi Auto Show. “The time has come for us to strategically accelerate our growth here.” Toyota is using the Delhi Auto show to showcase the cars which will lead the assault for 10% of the Indian market, the most important of which is Toyota Etios (which will also be produced in Brazil). Autocar.co.uk reports that Etios is 90% production ready and that it will go on sale in India at the end of 2010 (with first-year sales projected at 70k units). Because of the price (around $10000) it’ll go head to head with the Maruti Swift, the very boys who hold a huge chunk of the Indian car market. To help combat Maruti, a larger and better quality interior is key to the Etios. Autocar also reports that in order to keep costs under control, Toyota went on a cost cutting exercise. Measures taken include, limited sound proofing, a hard, but durable, interior and one windscreen wiper. But before you cry “Toyota are turning into GM”, don’t be fooled. Toyota tried the same thing with the Aygo in Europe and the end result was a good car which sells very well.
If you hear a loud screeching noise coming from the Stuttgart area, that’ll probably be Dieter Zetsche berating his Asian management team. The Economic Times of India reported that the Mercedes-Benz marque has lost its leadership of the luxury car segment in India to BMW after nearly ten years on top. Daimler also posted a 10.43% decline in sales in India, as volume fell to 3,247 units (if that doesn’t seem like much, consider that Mercedes also trails BMW in China by about 60k units to about 90k). And just like that, out come the excuses: “We are behind BMW in 2009 because of limited availability of our E-Class car … I don’t want to focus on leadership. We want to have a profitable growth,” Mercedes Benz India Managing Director and CEO Wilfried Aulbur told reporters. “We see a very strong growth in 2009 and it will be a blockbuster year for us. We are very bullish and we expect, it will be a high double-digit growth.” Read More >
Not long ago we wondered what the hell Mahindra was up to, as the Indian firm had delayed its US launch seemingly indefinitely. Thanks to Pickuptrucks.com, we’ve learned that Mahindra still has yet to file paperwork for federal standards compliance, and that the launch date for its diesel Pickup has been pushed back to the nebulous date of “middle spring 2010.” Federal testing is complete, but Mahindra won’t submit compliance paperwork to the feds until January. The company reckons this bureaucratic hurdle will be complete by February, clearing the way for a product launch sometime around April. According to pickuptrucks.com, Mahindra will be offering two-door and four-door versions of its pickup at launch, both powered by a 2.2 liter diesel engine. Mahindra intends for its trucks to achieve 30 mpgs and 1.3 ton hauling capacity.
In a delightfully surreal bit of news out of India, a man sued GM for claiming one of its SUVs had mountain goat-like capabilities when it couldn’t in fact navigate one foot-deep water. What, you might ask, is the SUV in question? The answer is just another amusing twist to this hilarious tale of marketing claims meeting cold, wet reality. Here’s a hint: it’s sold in the US, but not as a Chevrolet…
When Ford let Jaguar-Land Rover go, the betting odds on Tata’s prospects with the perpetually-mired firm were not exactly in its favour. Now it seems that Tata might have bought low, as JLR starts to turn a corner. The Liverpool Daily Post reports that the Jaguar-Land Rover group, owned by Tata Motors, had worldwide sales rise 30% last month. Wholesale and retail sales both showed strong growth. A spokesman said: “Despite the continuing economic uncertainty, we are seeing improved economic stability in most markets, especially the UK and China.” Read More >
GM Chairman and CEO Ed Whitacre has made his first real media availability today, answering questions on a number of issues including the deal that sent control of GM’s most important Chinese joint venture to its partner, SAIC. According to Whitacre, the deal was put in place by former CEO Fritz Henderson. “It was sort of done before I got here,” Whitacre tells Reuters. Not to worry though, Whitacre has met with his counterpart at SAIC and was assured that “the nature of the partnership would not change.” Meanwhile, Gasgoo all but confirms that the rationale behind the deal is competition in India’s small-car sweepstakes, as a $3,500 sub-Spark model is apparently being planned to compliment the GM-SAIC-Wuling commercial vans that will spearhead the effort. Given how crowded India’s small car market is shaping up to be, it’s interesting that Whitacre didn’t cancel the agreement as he did with Henderson’s deal to sell Opel to Magna. And as for Henderson’s departure? “There was just a common agreement that what you want to do is not what I want to do,” says Whitacre.
Let’s get small: The new 50:50 joint venture between China’s SAIC and GM may plan to launch an entry-level low-cost car for the Indian market, say’s India’s Wheels Unplugged. Read More >
The Tata Nano is sprouting new variants in its global ambitions and to fend off the competition. Even before the little Basmati burner ramps up to large-scale production in its new dedicated factory, and possible franchise manufacturers take the bait, news of its offshoots never ends. Tata is managing the Nano brand’s exposure just fine. Lets start with the ultimate in mixed metaphors, the Darth Vader helmet-inspired “Design”: Read More >
Das Autohaus [sub] has it from India’s Economic Times that VW and Suzuki are planning a low-priced mini-car which could give Tata’s Nano some problems. Read More >
In my editorial on GM’s plant to take on the Indian market in partnership with SAIC, I wrote that Maruti Suzuki’s monstrous market share indicated the possibilities for GM. Well, the Indian market leader isn’t going to just sit on that lead. In 2007, Osamu Suzuki said that his firm’s Indian passenger car market share would never drop below 50 percent, an assertion that took two years to prove untrue. The WSJ reports that although the overall Indian market will probably grow 16 percent this year, Maruti’s share of that market has fallen over the last year from 45 percent to about 40 percent (with passenger car share down from 55 percent to 48 percent).
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