Category: Industry

By on July 4, 2011

In the battle for market share, Detroit is making something of a comeback. After decades of decline, the unprecedented taxpayer investment in Detroit seems to be yielding dividends in the form of solidifying signs of recovery. Of course, these firms still have a long ways to go before they’re done reversing their long declines, and the turnaround has doubtless been fueled by temporary phenomena like the Toyota recall and the Japanese tsunami. Still, these are some of the first big-picture signs of a serious change in fortunes for Detroit, and deserve the attention of market watchers (graphs can be found in the gallery after the jump, along with a graph of June and Y-T-D market share).

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By on July 1, 2011

Chevrolet cars have outsold combined sales of trucks, crossovers and utilities in April, May and June of this year – and are expected to represent 47 percent of the brand’s sales for the first half of 2011. The last time cars led Chevrolet’s sales for three consecutive months was in May, June, and July of 1991. That year, cars represented 52 percent of Chevrolet sales.

“Chevrolet has always been known for building great trucks,” said Alan Batey, U.S. vice president, Chevrolet Sales and Service. “Today, we are in the middle of transforming the brand with a strong lineup of cars that match the appeal of our trucks and crossovers.

“That transformation is clearly bringing new customers to the brand – as passenger cars and four-cylinder engines are driving Chevrolet’s growth this year,” Batey said. “We expect that momentum to accelerate as Chevrolet introduces three new cars over the next two years – the Sonic, Spark, and next-generation Malibu.”

And no, that isn’t necessarily a code-phrase for “our truck sales are in the toilet.” Sales of Chevrolet cars and trucks are up this year. The most interesting part of the PR release quoted above, however, relates to engine choice…

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By on June 30, 2011

The US market’s Seasonally Adjusted Annual Selling Rate (SAAR) hurdled the 12m mark towards the end of last year, and was cruising above the 13m mark for much of the first half of 2011, but after a rough May, June seems set to become the market’s second month back under the 12m mark.

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By on June 29, 2011

With a new Viper being readied for a 2012 auto show debut ahead of a 2013 launch, Automotive News [sub]’s Rick Kranz has discovered something of an issue in the development process: suppliers don’t want in.

Ralph Gilles, who heads Chrysler Group’s design organization and SRT, the automaker’s performance group, says many suppliers said “thanks, but no thanks” when the automaker knocked on their doors.

“It has been tough to get low-volume suppliers,” Gilles says. “We have had a few hiccups here and there as we get suppliers. That type of fringe business has really dwindled. A lot of people are looking for big accounts now, but now that is behind us.”

Kranz blames low volume (2,103 units in its best year, 392 units last year) and supplier consolidation for the “hiccups.” But as it so happens, this has been a recurring problem for the Viper since day one…

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By on June 29, 2011

When asked by thenational.ae if he preferred to drive his McLaren F1 or Mclaren-Mercedes SLR to work everyday, the man who designed both legendary hypercars, Gordon Murray demurs:

I wouldn’t say the SLR is quite an everyday car but I certainly like to drive it to work. But for me, despite all those cars and my single-seater Rocket [a car he privately designed], it’s the [eight year-old Smart Roadster] I’m most taken with. For one, it’s a great-looking car. It has a power roof, heated seats and air con, and it all weighs just 830kg. In fact, it’s got all you’d want from a car. It nips around corners and it’s fun to drive.

So, other than proving that Murray has exquisite taste (I’d kill you all for a Brabus Smart Roadster Coupe), what’s the point? That, having been there and done that in the world of high performance, Murray’s taking on a less obviously sexy but ultimately significant project that first occurred to him in a traffic jam back in 1993: the T.25 and T.27 city cars. We’ve written about Murray’s T.25 before, but the real news today is the release of specs for the T.27, an all-electric version of the tiny three-seater. And yes, it weighs 1,500 lbs on the nose (including batteries), and ekes 100 miles of range out of just 12 kWh. That beats the efficiency of competitors like the Smart EV (by 29%), the Mitsubishi iMiEV (by 36%) and MINI E (by 86%). So, how does it do it?

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By on June 28, 2011

Though it doesn’t get the play it deserves in the auto media, Project Better Place is one of the most ambitious, potentially disruptive plays anywhere in the world of cars, uniquely positioning itself to eliminate the biggest shortcomings of electric vehicles. TTAC was on hand when the “end-to-end” EV services firm opened its first battery swap station in Israel, and now the firm has launched its first European swap station in Denmark. Better Place’s single model, the Renault Fluence Z.E won’t be widely available in either of the two initial launch markets until later this year, but having sold over 70,000 of its initial order of 100k units from Renault, Better Place is keeping its foot on the gas… er, juice.
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By on June 28, 2011

According to Wards Auto, global auto sales through May hit 32.62 million units, up 6.0% from the year-ago number. But as the chart above shows, the rate of growth in global deliveries has slowed dramatically over the past year-and-a-half, falling below five percent the last several months. So what’s the problem? At this point, what isn’t the problem? The US and Japan have been hit hard by the Japanese tsunami, while the once-blistering-hot markets of China and India are shrinking and growing more slowly respectively.

Collectively, markets in the Asia/Pacific region accounted for 2.35 million vehicle deliveries, equating to 37% of world sales, the region’s lowest global market share since May 2009.

In the U.S. and Canada, sales of Japanese vehicles slipped precipitously below the rest of the market in May due to supply shortages, pulling North America’s year-over-year performance 2.3% below like-2010 on a volume basis, despite an 11.7% increase in Mexico.

So where’s the good news? After a forgettable few years, Europe is back… and South America is staying strong.

Overall deliveries in Europe rose 14.2% in May, to 1.85 million units. The resulting 29.2% share of world sales was the region’s highest take since June of last year…

Double-digit growth in many of South America’s smaller markets lifted regional sales in May 27.6%, compared with year-ago, for a 7.9% share of global deliveries – a 9-month high.

By on June 28, 2011

 

Talk about bad associations! Bloomberg reports that

General Motors Co.’s European Opel unit is introducing models with advanced options typically sold on luxury cars, seeking to revive a business that’s lost $14.5 billion since 1999.

The GM unit is working with AlixPartners LLP on how to tweak options packages or production plans to spur higher prices, said two people familiar with the matter. They are also studying ways to reduce engineering and manufacturing costs, said the people, who asked not to be identified disclosing private plans. Some new features include headlights tuned to high-speed driving on the Autobahn.

Which leads to one damning conclusion:

“They can’t price their cars like Audi or BMW,” said Thomas Stallkamp, principal of Collaborative Management LLC, a Naples, Florida-based consulting firm. Stallkamp, a former Chrysler Corp. president, was a partner at private-equity firm Ripplewood Holdings Inc. when it tried to buy Opel in 2009. “They’re like the Chrysler of Europe.”

Keep in mind, this isn’t just any old analyst… this is a guy who tried to buy Opel back when it was officially for sale. And though pricing issues in the face of rising costs are one Chrysler-like problem facing Opel, there’s another issue that may even be more troubling…

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By on June 27, 2011

Every June cars.com trolls the protectionist elements of the car guy world by trotting out its “American Made Index,” which has been topped by the Toyota Camry for the third year running. So what’s cars.com’s criteria for the American Made Index? According to a presser

Cars.com’s annual American-Made Index ranks the most-American vehicles based on percentage of their parts that are made domestically, where they are assembled and how many are sold to U.S. buyers.

That last bit goes a long way towards explaining the Camry/Accord dominance: this is not just a measure of assembly and “domestic parts content” (which NHTSA strangely counts as parts made in the US or Canada), but popularity with Americans as well. If, on the other hand, you just look at the raw 2011 “domestic” parts content percentages… well, it tells a slightly different story.

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By on June 27, 2011

Eight percent global market share. Eight percent operating profit. And all of that by 2016 – two times eight, get it? In Nissan’s glitzy waterfront headquarters in Yokohama, CEO Carlos Ghosn today presented a six year plan, called “Power 88.” The plan is audacious and auspicious at the same time.

Let’s do the auspicious part first. Read More >

By on June 26, 2011

Victor Muller will no longer have a problem reaching a quorum or a unanimous decision at Saab board meetings. Muller is the sole remaining director. The rest of the board bailed. Read More >

By on June 24, 2011

Typically we try to accompany our book reviews here at TTAC with an author livechat, giving you, our readers, a firsthand opportunity to engage influential thinkers in TTAC’s trademark frank, open discussion of the most important automotive issues of the day. Today, however, is something of an exception. As I noted in my review of Car Guys vs Bean Counters: The Battle For The Soul Of American Business, Bob Lutz’s call-out of myself led to an opportunity for me to exchange words with the former GM “car czar,” which in turn led to his graciously agreeing to meet me for a face-to-face interview. Because Lutz is in the middle of a book launch media blitz (not to mention my own fairly well-laden to-do list), that will have to happen later this summer… but I assure you, it will be worth the wait. Meanwhile, I thought that we should at least honor the spirit of our author livechats by giving you the opportunity to submit your own burning questions for “Maximum Bob.” I can’t guarantee that I’ll be able to get answers to all of them, but I’ll certainly do my best to make sure that the most germane queries at least get an airing. After all, if I’m going to tangle with one of the more formidable figures in the auto industry, I’ll need the full weight of TTAC’s inquisitiveness and savvy at my disposal.

By on June 24, 2011

I can’t say that I was completely surprised when, about two thirds of the way through Bob Lutz’s new book Car Guys vs Bean Counters, I caught a sideswipe at myself and The Truth About Cars, which the retired Vice-Chairman of GM describes as

a Web site that often offers anything but.

After all, TTAC and “Maximum Bob” have long been sparring partners, and were indirectly debating the fate and fortunes of General Motors well before I ever started writing about cars. What was surprising was that this passing shot at TTAC’s credibility would actually help bring us, two presumptive arch-enemies in the world of automotive ideas, to a better understanding of each other. The exchange that a single paragraph prompted taught me that, against all odds, Bob and I share a fundamental character trait: we are at our best when we’ve been goaded into action by a no-holds-barred call-out. In celebration of this shared value, let’s take off the gloves and give Car Guys the unflinching look it deserves.

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By on June 22, 2011

Doing less with more: it’s been the strategy of American print magazines since Baxter, Setright, and the other legends wandered off into the sunset. It’s hard not to be envious. Consider our friends and roamin’ countrymen of AutoWeek. Charged with the task of assembling thirty pages’ worth of content — equivalent to a few days of TTAC articles — they had no fewer than eleven manufacturer-and-owner-provided cars and motorcycles to review, plus a couple of all-expenses-paid junkets to far-off places.

What did they produce? Three full-sized stories, a couple of hasty paragraphs tossed off at the other cars to justify their continued “long-term-test” status, a two-page “Father’s Day Gift Guide” full of worthless garbage, and, of course, a bizarre rant about how fat and stupid Americans are.

Let’s talk about that last item, shall we?

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By on June 20, 2011

Toyota Motor Corporation (Toyota, Daihatsu, and Hino) is expected to land with a thud on place 3 in the global ranking of automakers in 2011. I came to this conclusion after several telephone calls and a flurry of emails. In the end, Toyota spokesman Paul Nolasco gave it to me (as requested) in writing:

“When it comes to the current CALENDAR YEAR, on a consolidated basis (TMC, Daihatsu and Hino combined), TMC is now (as of June 10) forecasting production of 6.8 million units.”

The avalanche of telephone calls and emails was triggered by an article in The Nikkei [sub] today, that had left the opposite impression.  We’ll get to that article in a minute. First, the table: Read More >

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