Category: Overseas

By on July 30, 2018

2017 Buick Encore - Image: Buick

The second quarter of 2018 returned pleasing sales figures for General Motors, but there were no champagne corks popping over Buick’s performance. While GM’s sales rose 4.6 percent compared to Q2 2017 (and 4.2 percent year-to-date), Buick sales headed in the opposite direction — down 12 percent in the quarter, and roughly six-tenths of one percent over the first half of the year.

Swirling menacingly in the background of all of this is a threat from President Trump to levy a 25 percent tariff on all automotive imports, a move that would leave Buick especially exposed. As numbers crunched by Automotive News show, the only thing sparing the brand from an emergency overhaul, should such a scenario come to pass, is a subcompact crossover — one which may or may not be exempt from the proposed tariffs. Read More >

By on July 27, 2018

Ford badge emblem logo

In an earlier analysis of Ford’s lackluster share price, we noted that Europe and China posed a significant problem for the automaker’s bottom line. Europe, which was previously pretty good to the brand, has gradually lost its share of the market since 1994. While Ford still moves a lot of metal in the region, something’s definitely wrong.

On Wednesday, Ford announced that its European operations had endured a $73 million second-quarter loss. It’s anticipating a full-year loss in the region after earning $234 million last year. “We’re extremely dissatisfied with our performance in Europe,” said CEO Jim Hackett.

Something has to be done to avoid further setbacks. According to Jim Farley, Ford’s head of global markets, the clear remedy is concentrating on vans and crossovers because that’s where the money is. It’s a similar strategy to what’s being done in the United States, where Ford eventually aims to cull the lineup to a point where the Mustang is the only vehicle that qualifies as a traditional car. But is it the correct one, considering how we’ve arrived at this point?  Read More >

By on July 25, 2018

Image: FCA

Former Jeep and Ram boss Mike Manley was a top choice among the candidates competing to succeed Sergio Marchionne, but no one could have expected his ascension to the CEO’s chair would occur in such a sudden, tragic manner.

During his first earning call, Manley was forced to address not just his predecessor’s death — which occurred mere hours before investors, analysts, and journalists picked up the phone — but also the automaker’s slipping grasp on the Chinese market. FCA’s revenue and net income took a haircut in the second quarter of 2018. The company’s share price plunged in the wake of news of Marchionne’s death. And, last but not least, there’s tariffs flying left and right, cutting into the automaker’s earnings — indeed, the company has already readjusted its earnings forecast downward.

Some first week on the job. Read More >

By on July 24, 2018

Image: 2017 GAC Trumpchi GS8

Nah, that’s completely false. You know exactly which car buyers would turn up their noses at the prospect of bringing home a brand new Geely or GAC. (Aren’t these brand names inspiring?)

After becoming familiar names in Europe, new tariffs have made the imminent influx of Chinese-branded vehicles into the U.S. less than certain. Suddenly, the 2018 Detroit auto show, with its big display of shiny new GACs (including a luxurious minivan with La-Z-Boy-like rear seats), seems so long ago.

But pretend for a second that the new tariffs don’t exist, and that Chinese automakers are poised to open up American showrooms tomorrow. Who’s likely to consider one? Who isn’t? A recent study will almost certainly not surprise you. Read More >

By on July 20, 2018

Citroen C4 Cactus, Image: PSA Group

PSA Group has a North American headquarters in Atlanta and it wants to use it. The French automaker also has a reentry plan that’s already underway. By the middle of the coming decade, we could all be behind the wheel of a French car (presumably after trading our Dodge Grand Caravans for the Citroën SpaceTourer Rip Curl).

Well, that might not happen — not if the U.S. imposes tariffs on the European Union, anyway. PSA North America Larry Dominique seems pretty worried that President Trump’s eagerness for tariffs could kibosh the company’s return, leaving mournful American francophiles gazing lustily over the Canadian border as PSA goes wild in Quebec. Read More >

By on July 19, 2018

2018 Volvo XC60, Image: Volvo Cars

Unlike Volvo’s S90 sedan, which is built half a world away from its V90 wagon stablemate, the Chinese-owned Swedish automaker has some flexibility in where it sources its XC60 crossover. Two plants — one in China, one in Torslanda, Sweden — crank out the second-generation utility vehicle, but the U.S. market gets its full share from the Orient.

After the Trump administration imposed a tariff of 25 percent on Chinese-built vehicles, Volvo’s XC60 suddenly found itself dragging a financial anchor. Hardly a great situation for a model that outsold all other Volvos in the U.S. last month. To side-step the tariff, Volvo’s already making changes.

Say goodbye to the Chinese XC60. Read More >

By on July 13, 2018

Think back to the very early days of the previous decade and memories of awful mainstream rock compete with visions of the first-generation Ford Focus sedan. It was everywhere, and quite a few people has quite a few problems with theirs. By the end of the decade, however, those issues were mainly in the rear-view, as Ford was busy preparing to heap dual-clutch transmission woes onto its customers.

Now, the Focus sedan’s officially dead as the Blue Oval embarks on a nearly car-free voyage to the future. Only the faux crossover “Active” version of the next-gen 2019 Focus stands to see any customers in North America, but it’s a privilege reserved only for citizens of the United States. Canucks need not apply.

Too bad, as the next-gen Focus sedan’s a looker. Its designers aren’t exactly thrilled that so many countries have taken a pass. Read More >

By on July 11, 2018

Image: Tata Motors

While our Ace of Base series delights in revealing just how bargain basement a mainstream vehicle can get, none of those rides hold a candle to the spartan purgatory that was the Tata Nano.

Billed as the world’s cheapest car upon its release in 2008, the Indian-market four-door was tailor-made to lure that country’s growing market of would-be vehicle owners off motorcycles and into a car with two cylinders, 37 horsepower, and a rear hatch that didn’t open.

Not unexpectedly, the vehicle quickly developed a stigma. Read More >

By on July 10, 2018

Tesla’s sole assembly plant in Fremont, California won’t be lonely for long. A preliminary deal reached between the automaker and the government of Shanghai could see a new assembly plant start production in about three years’ time. The Chinese plant would most likely build Model 3s and upcoming Model Y crossovers, Bloomberg reports.

Assuming Tesla can scrounge up the $4 to $5 billion needed to complete construction of the facility (a Goldman Sachs estimate), the plant could produce up to 500,000 vehicles per year. And it just so happens that Shanghai has a free trade zone. Read More >

By on July 3, 2018

Image: VW Group

Following Volkswagen’s disastrous, reputation-fouling diesel scandal, the brand quickly pivoted to utility vehicles in a bid to recapture lost U.S. sales. So far, so good on that front. The Atlas is a strong contender in the midsize field and the new-generation Tiguan saw a surge of buyers after VW added a third row and piles of length.

Still, the lineup isn’t fully fleshed out. While the old-generation Tiguan (called the Tiguan Limited) remains as a small crossover offering, that model disappears for the 2019 model year. VW hasn’t even named its compact successor, a model initially geared solely for the North American market.

Meanwhile, overseas buyers already have two small VW crossovers to think about — the T-Roc, already on sale, and now the T-Cross. Read More >

By on June 28, 2018

2017 Jeep® Renegade Limited

Jeeps smallest U.S. offering stands to be hit hard by proposed import tariffs, according to calculations from an investment advisory firm, and the volume of vehicles Fiat Chrysler brings in from outside U.S. borders would see the automaker take it on the chin.

With the Trump administration mulling a range of tariffs, the firm tabulated just how much the import duties could cost FCA. If the tariffs come to pass, expect to see fewer Jeep Renegades on your local dealer lot. Read More >

By on June 25, 2018

Image: Steph Willems/TTAC

Ugh, you say. Wagons. A painfully uncool body type you swore off during childhood and haven’t reneged on since. A body type drooled over and feted by journalists who never put their meagre income where their mouth is. Yes, wagons. They remain part of our our automotive landscape, just a vanishingly small part of it.

But who’s buying them, and where? We have the answers. Read More >

By on June 22, 2018

Image: Audi

The organizers of televised U.S. awards shows, who annually serve up a night of lectures, sermons, hypocrisy, and guilt for an increasingly small audience, should realize that the show doesn’t necessarily have to go on.

It’s certainly not going on in Germany. Axel Springer, a top publishing house for numerous German media sources, including AutoBild, has now wrestled the prestigious Golden Steering Wheel award out of everyone’s hands. There’ll be no thanking of grade school teachers by auto execs this year. Blame, well, the auto industry. Read More >

By on June 21, 2018

Image: Steph Willems/TTAC

The Toyota Camry holds the remarkable distinction of being a midsize sedan with U.S. sales that actually increased over the first five months of 2018. Impossible, you say. It can’t be. You’d trade your kids for a crossover, but wouldn’t stoop to pick up a “free sedan” voucher if you passed one on the sidewalk.

Well, it’s true. Year to date, Camry sales are up 2.1 percent in the United States. Last year’s introduction of an eight-generation midsizer seemed to halt the sedan’s sales decline, though we’d be fools to think it’s anything other than a temporary lift. Camry volume sunk 7.9 percent in May. June could send the model into the negative.

Toyota seems aware of this, too. Maybe that’s behind the decision to send the Camry somewhere it hasn’t been in years. Read More >

By on June 15, 2018

Image: GM China

Just in time for the weekend, an escalation in the ongoing trade wars has seen the Trump administration announce a 25 percent tariff on $50 billion worth of goods imported from China. These tariffs include automobiles. For its part, China retaliated by applying a further 25 percent tariff on a similar amount of American goods, including automobiles.

The move comes less than a month after China announced a plan that would lower import duties and eventually allow foreign automakers to set up shop without a joint Chinese partner. Of course, that was then, and this is now. Read More >

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