Porsche’s Wolfsburg-raised Porsche CEO Matthias Müller knows how to fan the flames. He’s not afraid of playing China against the U.S.A. A month ago, he dropped a hint to German media that Porsche could start production in China, or if that doesn’t work out, somewhere in “North America”. Chinese press went monkeyexcrement over the possibility of a Made in China Porsche. When they were all hot and bothered, tease Müller told China’s First Financial Daily that “Porsche currently has no such plans.” How do they put it so succinctly in China? “Aiya!”

Don’t cry for Porsche, China, Müller is at it again. Read More >

If you only get excited by the sausage of a car and not by the sausage making of a car factory, hop on to the next article, because this will utterly bore you. Everybody gone? Alright, talking to myself again. We’ve always said, not really in jest, that two industries profit the most from just in time manufacturing: The real estate industry and the trucking industry. Honda wants some of that money. Read More >

They say blogging doesn’t pay, but in this case, it pays. When the incomparable Bertel Schmitt wrote his Toyota exoneration story, none of us knew that he was just one quick sex-change operation away from scoring a $10 Amazon gift card. It’s true. A marketing organization with no connection to Toyota (chuckle) has decided to comp “mommybloggers” free gift cards for getting the word out about Toyota’s exoneration.

Details, and a photo of the mommyblogger who blew the whistle on the whole sordid operation, after the jump.

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Today, I saw a new, and so far the finest specimen of Japan’s new export products: A car factory. Remember when the Nikkei wrote about a new Toyota factory in the Miyagi Prefecture with a U-shaped assembly line where the assembly time is cut down to a third? Not only did they get it wrong. They missed the best part of the story: Budget car factories, ready for export. Of course, that’s not how it was sold to the natives.

Ohira is a little village near Sendai. Sendai is a town two Shinkansen hours north of Tokyo. The area is famous for its beef tongue, not the hottest export item. Ohira was known for exactly nothing until Toyota decided in 2007 to relocate their factory from Sagamihara, in the outskirts of Tokyo, up into the woods of Ohira.

A year later, the whole region went into shock: Read More >

Despite launching a frothy IPO, EV maker Tesla’s net loss nearly tripled last year, losing more than $154m compared to a $55.7m loss in 2009. Total revenues were up nearly $5m, but only due to a nearly $20m bump in “development services” income. Revenue from “automotive sales” was down by around $15m. R&D costs skyrocketed from $19.3m to nearly $93m, while “selling, general and administrative” costs doubled to $84m. Still, CEO Elon Musk is all optimism in the firm’s press release, crowing

We are very pleased to report continued revenue growth, improving margins and a steady progression in our Roadster and powertrain activities,. Our powertrain team delivered solid results, with an increase in orders and record deliveries of battery packs and chargers for the Daimler Smart fortwo electric drive, the completion of our development program for the Daimler A-Class, and the commencement of the phase 1 development program for the Toyota RAV4 EV.

Musk noted that the firm is on-track to start delivery of its forthcoming Model S sports sedan in mid-2012. It had better be, because Tesla’s clearly not going to sustain itself on Roadsters.

Let’s face it: the Lincoln Town Car is the best car in the world, and that’s why at least two TTAC staffers are Panther owners. Unfortunately for Ford, however, production of new Town Cars is completely dependent on a rare earth. Well, it’s actually dependent upon Rare Earth, the band, which generates a mineral known as “awesomtonium” every time they play “I Just Wanna Celebrate” in public. A dearth of recent appearances by the band, the members of which are now all over one hundred and ten years old, means that Ford has been forced to schedule the end of Town Car production for this fall.

What can Lincoln do in a circumstance like that? The honorable thing to do would be for every employee of the brand to publicly apologize to America right before committing ritual suicide. I’m told, however, that an internal vote regarding that topic ended up strongly on the side of “seeing our children again”. In that case, the only thing left to do is to make a new Town Car, lest the Manhattanite Masters of the Universe be forced to ride the subway.

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While we were focused on the U.S. market in 2010 and were happy that it awoke from the dead and went above 10 million, the world quietly left carmageddon behind itself and set a new record: 72 million light-vehicles were sold worldwide in 2010, a number never seen before, says J.D. Power. For this year, the Westlake Village research group expects another world record. However, most of this record was not and will not be produced where most of our readership lives. Read More >

Volkswagen had unannounced visitors last week. German police raided eight offices in four German cities to secure evidence in a big corruption scandal, the Munich newspaper Sueddeutsche Zeitung reports. According to the paper, managers of  Deutsche Telekom had attempted to land a several hundred million Euro contract from Volkswagen by extending the sponsorship contract for the Wolfsburg soccer club VFL Wolfsburg. Read More >

Quoth the release:

The official Porsche Facebook fan page reached a social media landmark, when it welcomed its one-millionth fan recently. Especially for its one million devotees Porsche invited them to sign-up via Facebook to have their name inscribed on a special Porsche model. More than 27.000 Fans decided to have their signature on a real Porsche. This vehicle, the 911 GT3 R Hybrid, will be displayed as part of a unique exhibit at the Porsche Museum in February 2011. Enjoy a special Porsche model with a personal touch.

For a look at the car, and for a special photo-illustration of what a Panamera signed by all its “fans” might look like, click the jump.

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Chrysler and Fiat CEO Sergio Marchionne has given Forbes’ Joann Muller what I believe to be one of his best interviews since arriving on the US scene. In it, Sergio dishes on everything from the bailout (“I risked everything – I got 35 percent of something that was worth nothing”), to Chrysler’s 2011 sales target (“a very, very tough uphill battle”), to its new product

I couldn’t have done more from a product standpoint than I’ve done. I mean you know, I tried every trick in the book that I knew and I invented some, but you know, 16 products in 12 months – at least that part of it was a record. The rest of it is to be proven.

But the strangest revelation from Sergio is that Alfa Romeo’s future success will be, in a manner of speaking, “Imported from Detroit.” Read the whole thing over at Forbes, or hit the jump for Sergio’s vision for his red-blooded Italian brand.

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The WSJ reports that Mexico is emerging as one of the big winners the the automotive sector recovery, as Edward Solis, President of the Mexican Automobile Industry Association crows

We have a number that historically we’ve never had before. Fourteen of every 100 vehicles sold in the U.S. are Mexican-made in the month of January. Obviously, we can’t say that it marks a trend, that it’s going to continue like that, but it is very interesting that in our principal market we are growing in such a dynamic way.

Full-year US market share for Mexican-assembled vehicles was 11 percent for 2010, but with Hecho-en-Mexico cars like the Fiesta and new Jetta coming on strong, expect that to keep growing. Just don’t tell the hosts of Top Gear!

Is the auto industry headed for a price war? Hyundai Motor USA CEO John Krafcik seems to think so, telling Reuters

I think we can officially say that a price war broke out in the industry. There is apparently a lot of pressure to deliver sales results. I would call this a step backward for the industry. This is short-term thinking in a long-term process that hurts manufacturers and consumers.

Krafcik says GM kicked off the rush for increased volume by cutting prices in January, and that Toyota (which  has increased its incentives by 37.5% since last January, according to TrueCar) “quickly” responded by matching The General’s price cuts. Honda, Nissan and Chrysler have also kept their incentives high, and Chrysler has told Automotive News [sub] that it plans on increasing sales by 45% this year. Says Krafcik

We’ll see if others decide to follow. It’s certainly not in our plan right now.

Krafcik has a point: though sales have recovered over the last year as the economy has come back from the depths of recession, industry-wide incentive spending is up 1.3% in the last 12 months. Rather than taking advantage of the economic recovery to bring incentives down and transaction prices up, automakers appear to be focused entirely on volume. That’s certainly the message GM has sent by announcing that it would no longer release its incentive data. And, as Krafcik points out, the industry has already suffered mightily from such short-term, unsustainable thinking… but not everyone shares his concern.

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No war of words, no strikes, no hard feelings: After only two rounds of negotiations, Volkswagen and the metalworkers union IG Metall had a deal late last night. There will be a 3.2 percent increase in base pay effective May 1, 2011, and each employee will also receive a one-time payment corresponding to one percent of his or her annual pay but no less than €500. Read More >

Toyota’s Senior Managing Director Takahiko Ijichi had a surprise for the press that congregated today in the windowless basement conference room of Toyota’s downtown Tokyo office. They were invited to hear the results of the 9 month period from April to December. The scribes had prepared for the worst. As the numbers were released, some furiously begun retyping the prepared stories in which they had planned to insert the expected bad numbers before hitting SEND. Instead, Reuters reports: “The world’s top automaker posted a smaller-than-expected fall in third quarter profits and hiked its sales forecast for the year to March 31 by 70,000 vehicles to 7.48 million, thanks to better than expected sales in Asia, Japan and Russia.” Read More >

Fiat/Chrysler CEO Sergio Marchionne has earned our last several quotes of the day with recent controversial statements, so today we present him with the honor for a few choice words that have nothing to do with the United States government. Volkswagen has been sniffing around Fiat’s Alfa-Romeo brand for some time, as Herr Piech reportedly has the hots for the Italian brand. VW CEO Martin Winterkorn even said recently that

Alfa’s a beautiful brand but there are quality issues with the engines and suspension systems for example. I’m quite sure we could make a beautiful brand out of Alfa again.

For a while it looked like Fiat might be playing along with the interest, but recently Marchionne shot down talk of selling Alfa to VW. And he did so with the kind of acid-edged verbal shanking that makes TTAC smile and nod approvingly, saying

As long as I am CEO of Chrysler and Fiat, Mr [Ferdinand] Piech will never have Alfa Romeo. It’s hands-off. I told him. I will call him and I will email him. I’m not the one who bought Seat. He’s the one who bought it. I don’t know if he can [fix it], but he needs to try.

What do you do when a much larger firm comes sniffing around your prized (if troubled) brand? Kick them right in their own struggling brand, and in this case, Marchionne went straight for VW’s “Spanish Pontiac.” The jury is still very much out on Fiat’s grand Chrysler alliance experiment, but if it fails, it won’t be because Sergio Marchionne was scared of a fight.The guy’s talent for confrontation couldn’t be more obvious.