Speaking to Autmobilewoche (via just-auto), Opel CEO Hans Demant's let slip that GM's German division will not book a profit for '07. Although an Opel spinmeister later retracted the revelation on Demant's behalf, the facts speak for themselves. According to the Kraftfahrt Bundesamt government vehicle agency, Opel's domestic sales sank 14.7 percent last year. (The overall German car market fell nine percent; its lowest level since reunification.) In fact, the future's so dim, Demant's pulled the shades. He says the entire German market is no longer profitable, either for the automaker or for its dealers. Proving that RenCen doesn't have a lock on the old finger-pointing to avoid accountability routine, Demant said the "endless discussion" about a new CO2-related tax system, and the introduction of eco-zones in big cities, had led to customers going on strike. Uh-oh. Does this mean war?

TTAC is often accused of being overly-harsh on cars and the causes of cars. But we've never violated the number one rule in the info biz: don't insult the customer. In Jeremy Clarkson's latest diatribe in The Sunday Times, the British car critic catapults himself across that editorial line with his usual acerbic style and boot-in-the-ass subtlety. To wit: "There are many ways to tell if someone is a bit thick. You can sit them in a room and ask them to push various bits of plastic into a wooden box… [or you can] ask them this simple question: 'Are you wearing a Subaru rally jacket?' Because if they are, you will need to speak more slowly." And so begins his opening salvo against Subie fans. Jezza pisses on Subaru drivers ("for the majority of them, there are only eight letters in the alphabet. WRX STIR and B."), rally enthusiasts ("a sport for the terminally gormless") and their four-wheeled object of veneration ("a £25,000 car that comes with fewer toys than an Ethiopian birthday boy."). In case Subaru lovers really are stupid (which is a ridiculous slur), Clarkson's conclusion spells out his message in no uncertain terms. "I think therefore you may have to be a bit dim to buy one." 

The feds made us do it! I'm tempted to say that the Dow Jones' Marketwatch interview (via CNNMoney) with GM's Car Czar is Maximum Bob unplugged. But that assumes that Mr. Lutz was, at some point, connected with reality. Anyway, here we have Maxi Bob taking his "raised federal fuel economy standards are like forcing fat people to wear small clothes" argument to the next level. "With the federal mandates at 35 miles per gallon coupled with cheap fuel, it puts us at war with our customers. At $3 a gallon (for gas) many people still want full-sized pick up trucks (and) full-sized sport utilities with V8 engines… and we're not going to be able to sell it to 'em because we if we do we won't make (the federal mandates)," Lutz told the Dow folk, adding, "It's ridiculous." Strengthening his already bullet-proof rep for spouting Pollyanna prognostications based on sweet FA, Lutz also says he's spoken to bankers who think the worst is over for the "mortgage meltdown crisis and the liquidity crisis." Anyway, who cares? "If everything goes well in the rest of the world, we can take a couple hits in the U.S. and still be okay." And just in case you thought Bob's reality divorce papers weren't signed yet, how about this: "We are working on the electrification of the automobile because my personal theory is the best way to save fuel is to use none at all." 

In contrast to earlier reports, goauto is now reporting that GM is not bringing a Holden Commodore/Pontiac G8 wagon the U.S. of A. Fair enough? On the one hand, Maximum Bob is unusually realistic when he proclaimed "the sad truth is, as much as some of us like 'sportwagons', they just don't sell in the US." When left to their rear wheel-drive (RWD) devices, wagons don't sell stateside. The Lexus IS300 Sportcross – failure. BMW's RWD wagons  – did pretty badly until the letter "x" showed up in their names. The ugly Dodge Magnum – dead. On the other hand, there's something to be said for "doing your thing." If GM wants RWD to be its thing– especially Pontiac's– then wouldn't it make sense to go all the way with it? How much extra can the Pontiac G8 wagon cost to federalize as GM's already doing it for the sedan? Unless there's a problem with parts…

Rick Wagoner, eh? "Not specifically enamored." Classic passively constructed British understatement from an American car exec. Anyway, for those of you following the development of India's revolutionary Nano, it's probably no surprise that GM doesn't have the hots for the people's car's $2500 price point. The Financial Post reports that GM's chief executive declared that that “the magic” price for an ultra budget car is yet unknown. Meanwhile, GM will compete with the Nano by taking costs out of existing economy cars (e.g. GM's Daewoo delights). Speaking from the floor of the North American International Auto Show, Wagoner also admitted that his golden parachute provider has tried making a cheapo car from scratch before, using coloured plastic panels instead of painting the cars later on. "Overall, the effort hasn’t worked," he said. "What we ended up with was not a very good looking car that wasn’t that cheap.” I say nothing.

Chinese automaker Geely introduced a new technology today they call BMBS. The system uses tire pressure sensors to tell the brakes when and how much pressure to apply to stop the car safely when a tire blows out. So why introduce it at an auto show where they're one of the smallest fish in the pond? To prove wrong the naysayers who "don't believe that China can innovate" according to Geely chairman Li Shufu. I tried to find out just how innovative the system is. When I asked Dr Frank Zhao, Geely's VP and chief tech officer, how BMBS compares to the active suspension from other companies, he said it didn't because it's unique. When I asked about its merits over active suspension, he didn't want to discuss it and tried his best to dismiss any questions I asked. I did manage to find out he's right about one thing: it's in no way comparable to active suspension. It turns out it has no yaw sensors and can't control a skid unless a tire's circumference is changing. You have to admit that's unique!

Chang Feng Motors one is one of a few Chinese automakers who crossed the Pacific to attend the North American International Auto Show. They did so to unveil their Liebao CS7 cute ute and Kylin mini-minivan today. Chang Feng want to start importing these babies into the U.S. in two to three years time– provided they can form a partnership with an existing distributor or U.S. factory. Chang Feng is already in a joint venture partnership with Mitsubishi, and manufactures a variety of vehicles based on various Mitsu SUVs. So you have to wonder why they don't just latch onto Mitsu here too. After all, anyone who can "manufacture off-road vehicles with world-class technology" using "the top engine of Mitsubishi, six-jar motive force" producing "consummate off-road performance, allocate completely, adorn luxuriously inside, it is comfortable and honourable to enjoy" shouldn't have any problems mastering American culture, right? (Quotes taken from Chang Feng web site.)

TTAC's Samir Syed has already discussed the revolutionary nature of Tata's new Nano. Just-auto [sub] reports that Automotive News Europe [sub] is reporting that Tata Motors is looking to spread the love. At the new car's launch, Tata Motors' group chairman Ratan Tata said his company will export their "people's car" into the Eurozone. Eventually. Tata will restrict Nano sales to India for the first two years– or more– before starting exports. To Africa, Latin America and southeast Asia. After that, they'll shoehorn in some bigger engines (the base Nano has a 33hp 624cc two-cylinder powerplant) and add some more "advanced features." Hang on. Can the new "people's car" meet strict European emissions and safety regulations? "When we go to Europe, we will conform to all existing regulations," insisted Girish Wagh, head of the 500-member Nano product development team. Responding to a question, he added" "Yes, I said when."

Despite the potential (if not actual) cratering of the U.S. new car market, Toyota reckons it will rack-up seven percent more sales abroad in '08 than '07. CNNMoney reports that Toyota '07 sales rose six percent to 9.37m vehicles. Sniffing big business in the expanding Russian and Chinese markets, Toyota reiterated its previous forecast for a big boost in total global sales in 2008, heading for 9.85m new car sales. Although Toyota's doemstic (i.e. Japanese) sales fell four percent in '07, down to 2.228m vehicles, their soothsayers say the market has stabilized, and will remain flat for '08. Whether all this will be enough to (once again?) wrest the "world's largest automaker" crown from GM remains to be seen; GM is also doing land office business in China, South America and Russia. But if we're talking profitability, well, Detroiters may not want to go there… 

Money.net reports that various U.K. authorities have destroyed some 45k uninsured vehicles during the first nine months of '07. Which is OK with Nick Starling, director of general insurance at the Association of British Insurers. "These figures show that the determination of the insurance industry and the police to drive them [uninsured motorists] from our roads is beginning to bear fruit." The Manchester Evening News says their local constabulary can claim 10k of that total. "Since January 2006 we have seized more than 25,000 vehicles," boasts Sgt Mark Beales of the Greater Manchester Police's traffic section. "We will continue to ensure there is no hiding place for those who break the law." While the Association of British Drivers (ABD) doesn't dispute the police's right to confiscate uninsured motorists' vehicles, ABD Environment spokesman Ben Adams argues "This government is so venomously anti-car, that confiscated vehicles are thoughtlessly crushed out of sheer spite. They claim the environment to be their top priority yet it appears they are encouraging the mindless destruction of huge resources of used parts that could be recycled and destroying serviceable cars." Fair dues?

It's a Hell of a good question. Strangely, few Western media outlets have tackled it. While TTAC's take is forthcoming, The Liverpool Daily Post's Alastair Houghton casts his beady eye on Tata's prospects with the damaged British brand. It may be painful for Jag fans to reconsider the fate of the ill-fated X-Type and re-scan the arterial spray or red ink dogging the cat, but they'll be heartened to read Houghton's historical analysis of the Indian conglomerate's success with other British concerns. The story surrounding Tata's entry into the steel market is especially resonant. “Do you mean to say Tata proposes to make steel rails to British specifications?" Frederick Upcott, Chief Commissioner for Indian Railways reportedly remarked at the turn of the last century. "Why, I’ll eat every pound of steel rail they succeed in making.” Last year, Tata ate Corus, the company that had eaten British Steel. Equally reassuring (to "traditionalists"), the chief executive of the UK India Business Council doesn't see any branding issues. “If you look at Tetley [tea], you don’t see the Tata brand on it at all," Sharon Bamford says. “They put the interests of the brand and the community they serve at the forefront. The process we’ve seen appears to be a typical Tata deal.”

Wow, that's some kind of price jump. You might even file it under scarcely credible alarmist prognostications. But there it is. "Options to buy oil for $US200 on the New York Mercantile Exchange rose 10-fold in the past two months to 5533 contracts, a record increase on any similar period." The Sydney Morning Herald casts its journalistic net to find experts who say you ain't seen nothin' yet. "One hundred dollars a barrel is actually 14.9 cents a cup, so we're still talking about oil being remarkably cheap," said investment banker Matthew Simmons. Inventories "are tight as a drum and I don't see how we get out of this box." It's all about rising demand chasing static supply. "We haven't got to $US100 on just a whim," said Paul Horsnell, the head of commodities research at Barclays Capital in London. "This is at heart also about longer-term concerns that supply capacity investment needs higher prices to keep up with demand growth." Needless to say, if U.S. oil prices spike to $200 a barrel (29.8 a cup), truck-heavy U.S. automakers will go to the wall, double-quick. Detroit is a city of crossed fingers… [thanks to David Holzman for the link]

The U.S. isn't the only market where car sales have stumbled, tripped and hit their head on the coffee table. Japan Times reports that new vehicle sales in The Land of the Rising Sun sank to a 35-year low in 2007. The Japan Auto Dealer's Association recorded slightly fewer than 3.5m new vehicle sales.  Automobiles with engines larger than 660cc were down 7.6 percent from 2006, while sales of minicars (engines smaller than 660cc) fell 5.1 percent. Toyota took a huge hit on their home turf, dropping 6.2 percent for the year. Honda, Nissan and Mazda managed to lose less. Analysts blame rising fuel prices, a shrinking population and a decline in wages. Just like GM and Ford (and to a lesser extent, Chrysler), foreign sales are buoying the car companies' bottom lines. Even they're doing relatively well, the current U.S. sales slowdown will take their toll on the Japanese corporate motherships. 

Automobile.com reports that the brand best known for symmetrical all-wheel drive and seemingly endless aesthetic affronts is set to launch the R1e electric vehicle (EV). Subie developed the EV version of its brand faithfully ugly R1 in conjunction with the Tokyo Electric Power Company. "Its battery pack affords the car a small-ish range of 50 miles, but the car can be recharged to 80-percent capacity in just eight minutes. A full charge takes about six hours." Never mind the range; EV supporters reckon most in-city journeys are less than 40 miles. Feel the longevity! "Despite the low range, Subaru says that the car has a lifespan of 120,000 miles or ten years." So not only can you go nowhere slowly, but you can do so for a long, long time. In terms of production numbers, Automobile goes for passively constructed English understatement. "Subaru isn't being overly optimistic about the EV's take-rate either, so for its first year only 100 units will be produced." But here's the real news: "To help promote electric vehicles, the Japanese government has agreed to slash the car tax and sales tax by a whopping 90-percent, and will allow the car to park in public areas and travel on toll routes at a reduced rate." What was that commentator Stu was saying about the Japanese government encouraging long term investment?