Prevailing wisdom today holds that small cars, manufactured in developed economies are some of the least profitable cars in existence. So why do companies like Peugeot, Citroen and Renault persist in producing them?
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My youth and inexperience may sometimes be a liability. Sometimes, I haven’t been on this earth long enough to place certain events and new model introductions in their proper context, ala Jack Baruth. But what I am good at, is listening to rap music. Today, the countless hours of pretending to be an inner-city drug dealer can finally be monetized, as Jeep’s Twitter account was hacked by some hip-hop loving cyber-vandals.
Are you a Fiat dealer looking for an Alfa Romeo franchise? Well, better hope you’re doing solid volumes and are making your customers happy.
The New York Times had their public editor (think ombudsman) publish a response to the whole “Dead Tesla’ fiasco (summary by our own Dan Wallach here), and it is far from kind to reporter John Broder.
One of the most enduring narratives in the past few years has been the idea that somehow, Honda has lost it’s way. The maker of affordable, high-quality and fun to drive cars had suddenly become a purveyor of bland appliances that were the furthest thing from what they built their name on.
After Toyota ended production of the Lexus LFA and closed a chapter of supercar history, National Geographic aired its documentary as part of its Megafactories series. “Up until now, no television cameras have ever been allowed inside this top secret facility,” says the film. The words were carefully chosen. You, the TTAC readers, had been there long before the film went on air.
Despite a plan for a financial turnaround by 2015, PSA projected a cash burn rate as much as 1.5 billion euros for 2013. Meanwhile, PSA’s finance arm had their bonds downgraded to junk status.
Reports by Bloomberg suggest that Fisker could sell up to an 85 percent stake to Chinese automaker Dongfeng. The automaker apparently bid $350 million for the beleaguered plug-in car maker, according to sources close to the company.
The 2013 Range Rover may be sold out, but anyone ordering the base model or the HSE may regret getting their order in. The 5.0L naturally aspirated V8 will be replaced by the more efficient and nearly-as-powerful 3.0L supercharged V6.
Carlos Ghosn’s assertion that “...electric vehicles could represent 10% of the global market in the next ten years, or 6 million vehicles…” may no longer be en vogue over at Renault, at least according to French business paper La Tribune.
For decades, big corporate profits were blasted as a sign of greed, especially by unions. GM changed all that. When a sheep dipped GM, free of legacy finance costs, and not paying taxes due to losses a normal company would not have been able to carry over after a bankruptcy, declared a record $7.6 billion profit in 2011, chests of GM boosters swelled with pride, as if the profits had been theirs. A year later, there is $2.7 billion less to be proud of. GM’s European millstone, Opel, continues to drag the company down. Opel’s operative losses more than doubled to $1.8 billion for all of 2012. Read More >
Tim Horton’s, the Canadian coffee chain that’s home to the legendary “double-double”(the local slang for two cream, two sugar in one’s coffee), has announced a pilot project to install EV charging stations in the parking lots of its coffee shops.
Stop us if you’ve heard this one before. Unlike the poorly interpreted plans for Mazda to be a “premium” brand, PSA really is planning to take Peugeot upscale, despite having zero brand equity, an upscale Citroen line and zero exposure to the profit center of the future, low-cost cars.
As a journalist, if you ask an OEM rep about any given car’s redesign or next generation, you’ll undoubtedly be met with a terse “we don’t comment on future product plans”. But if you’re an analyst? Different story.
The next generation Fiat 500 will no longer be hecho en Mexico for the North American market. Faced with a modern plant and unused capacity, Fiat will consolidate all of its 500 production to its site in Tychy, Poland, in 2015. So what does this mean for Mexico?
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