Category: News Blog

By on June 15, 2011

A group of businesses that are owed anywhere between $198 and $744,083 could force ailing Saab to declare bankruptcy.  They have turned to the Swedish Enforcement Agency, better known (and feared) in Sweden as the “Kronofogden.” That agency introduces itself as follows:

“Is there a bill you cannot pay? Or are you not getting paid by someone who owes you money? In both cases, it will be Kronofogden that you come into contact with. A debt that is not paid ends up in Kronofogden´s register. This register is open for all to consult. As a result, anyone wishing to find out how someone else manages their finances can check the register. If a person´s name appears in the register, he/she can find it difficult to buy on hire purchase, borrow money or rent an apartment.”

Currently, there are 48 entries on that list that claim that Saab owes them.  Lots of suppliers. A few bill collectors. A patent attorney. One of the world’s largest CPA firms, Pricewaterhouse-Coopers, demands $104,904.

Swedish online newspaper GT published a list of all the claims allegedly reported up to Tuesday. Here it is: Read More >

By on June 15, 2011


Reuters reports that Boston Consulting Group has revised its projections for EV market penetration downwards, concluding that plug-in electric vehicles (including EREV and PHEV models) will make up no more than five percent of the US market by 2020. And ironically, the recent increases in gas prices have actually driven the estimate downwards, as Xavier Mosquet, the global head of the group’s autos practice, tells The WSJ [sub]

Electric cars will undoubtedly play an increasingly large role in many countries’ plans in the decades ahead as energy independence and environmental concerns intensify, but they will gain only modest ground to 2020. Gas- and diesel-powered vehicles are improving faster than expected and will continue to dominate the global landscape.

Read More >

By on June 15, 2011

Having kept a relatively low profile since the disastrous “My Tank Is Full” series of ads, Ram is fighting to help keep Chrysler profitable with a new series of ads highlighting the Ram’s connection to “Wild West” values. And like nearly every bit of advertising approved by Chrysler Group ad boss Olivier Francois, it’s heavy on the hyper-sincere schlock, which makes the spots end up feeling like they’re selling a political candidate rather than a truck. And this just as it seemed like truck ads were slowly moving away from some of their previous cliches. Does doubling down on sincerity and the mythical Western ethos make sense as a way for Ram to catch back up on volume it’s lost over the last few years? Or should Ford’s stunning 50%-ish take rate on EcoBoost V6 engines in F-Series be pointing towards a more pragmatic, consumer-needs-oriented marketing campaign? Watch as many of the ads as you like and be sure to let us know where you see the Ram brand and its marketing effort heading.

By on June 15, 2011

The confrontation between modern, Western societies and deeply traditional lifestyles in Afghanistan creates a healthy supply of fascinating car stories, as we’ve already heard about such uniquely Afghan manifestations of car culture as the Taliban’s Toyota Hilux-inspired maple leaf tattoos. And now here’s another one, fresh off the Reuters wire: Afghans are reportedly in a tizzy over (get this) license plates containing the number 39. Yes, really.

Afghanistan’s booming car sales industry has been thrown into chaos by a growing aversion to the number “39”, which almost overnight has become an unlikely synonym for pimp and a mark of shame in this deeply conservative country.

Drivers of cars with number plates containing 39, bought before the once-harmless double digits took on their new meaning, are mocked and taunted across Kabul.

“Now even little kids say ‘look, there goes the 39’. This car is a bad luck, I can’t take my family out in it,” said Mohammad Ashraf who works for a United Nations project.

Other “39” owners flew into a rage or refused to speak when asked whether their car was a burden.

The Guardian adds:

I did not think it would matter when I got my car,” said Zalmay Ahmadi, a 22-year-old business student. “But when I drive around all the other cars flash their lights, beep their horns and people point at me. All my classmates now call me Colonel 39.”

We’ve heard of huge demand for certain-numbered license plates before, such as the craze in Arab countries for the lowest possible license number… but we’ve never heard of a taboo number when it comes to license plates. So what gives?

Read More >

By on June 15, 2011

Mitsubishi wants to attack one of the biggest problems of EVs: Their lofty price. Mitsu’s i-MiEV EV retails for 3.98 million yen ($49,200). Government subsidies will slash a million (yen) off that price. Converted to dollars, that $36,900, still steep.  The Nissan Leaf costs 3.76 million yen ($46,500) before subsidies and sells much better than the Mitsumobile. Now, Mitsubishi wants to lop a million yen off the i-MiEV’s sticker price. Read More >

By on June 15, 2011

As the industry (or at least parts of it) and the federal government face off over forthcoming 2017-2025 CAFE/emissions standards, a Center for Automotive Research study is getting more play than ever from an industry that seeks to portray the high cost of fuel economy improvements as being not worth the additional costs to consumers. CAR has yet to publish its full study, but it’s clearly intended to counter an offensive from groups like the Consumer Federation of America, which uses its own study to show that CAFE regulation will actually save consumers money. This battle, over the cost to industry and consumers of passing a 62 MPG standard for 2025, has been playing out for months now, and will continue to go back and forth over the rest of this summer. And sure enough, the Union of Concerned Scientists and the National Resources Defense Council have both hit back against the CAR study, calling it “industry-advocate propaganda” in the Detroit News and arguing that it underestimates future reductions in technology costs.

Read More >

By on June 15, 2011

Japanese carmakers are battling the power shortages after the March 11 tsunami. Often, they are asked why they didn’t move more of their production abroad, like to China. A lot of them did, only to face bigger power problems in China. China is heading for what Reuters calls “its worst power shortage since 2004.” While the lights stay on in Japan, cities in Southern and Eastern China have regular blackouts. Read More >

By on June 15, 2011

Blowing into a breathalyzer weakly is grounds to convict someone of the crime of refusal, according to a May 26 decision by the New Jersey Supreme Court. Refusal carries penalties nearly as severe as a conviction for driving under the influence of alcohol (DUI). On November 29, 2007 at 2:36am, Sergeant Joe Morgan of the Woolwich Township police department pulled over Aaron P. Schmidt after noticing that he was driving 10 MPH under the speed limit. Morgan administered the usual field sobriety tests and decided to bring Schmidt to headquarters for a breath test.

Read More >

By on June 15, 2011

China’s Gasgoo says that “Dongfeng Nissan has already begun preparations for domestic production of the Nissan Leaf pure electric hatchback.” Domestic as in Made-in-China. They quote Dongfeng Nissan CEO Fumiaki Matsumoto, who allegedly said: “We have already finished preparatory work for the Leaf. We hope that we can cooperate with the government and suppliers to bring over the Leaf as soon as possible.” That of course piqued our interest. After some calls, we can say with certainty: Instead of millions of Leafs roaming the streets of China tomorrow, we have a case of Lost In Translation with a French-Japanese-Chinese cast. Read More >

By on June 15, 2011

Japan’s major automakers appear to recover faster from the impact of the March 11 tsunami than previously feared (or hoped.) Nissan’s Executive Vice President Takao Katagiri said today that Nissan’s Japanese vehicle production in May was the same or greater than its output in the same month in the previous year.

“We will also probably be able to maintain a normal level in June,” Katagiri  told The Nikkei [sub].  At the annual results conference in May, Nissan CEO Carlos Ghosn had predicted that the company would be back to normal by October. This remains the official party line at Nissan. Read More >

By on June 14, 2011

Before Fiat snapped up Chrysler from the US taxpayers for a song, it saw the Indian firm Tata as another logical partner for a long-term alliance. After Tata bought Jaguar/Land Rover, the auto media was awash in rumors that the British brand would share components with Fiat’s Alfa-Romeo brand. When Tata came out with the Nano, there was speculation that Fiat’s dealers in Europe and Latin America could be used to sell the low-cost car, even rumors of a Fiat-branded version were floated. Fiat even tried to sell Tata on one of its notoriously nasty Italian plants. What did surface from Fiat and Tata’s flirtations: a joint venture in India that, by all accounts, is going not well at all. And now, with Fiat distracted by its Chrysler rebuilding project, Ratan Tata is expressing his displeasure with his firm’s Fiat tie-up, telling The Hindu Businessline

I have to admit that so far, the venture with Fiat has not been as active as we had thought… I think that Fiat has to launch more models into the market to keep dealers interested. It also has to look at its cost structure in terms of parts and components. So the joint venture needs to be looked at quite critically and until that happens, it’s not going to be optimised… As far as what else we can do with Fiat, I think Sergio Marchionne and I can really talk to each other. However, at the working level, it hasn’t quite been that way. We have looked at Latin America to do something together, but things haven’t moved as they should have done

Read More >

By on June 14, 2011

So what are they saying in China about the Pangda/Youngman/Saab threeway? The blogs and message boards are full, of course. Cars are of high importance in CCC (car crazed China.) Much more important, what does China’s government say? Multiple agencies of the government will have to approve a deal with Saab. However, officials won’t utter a word before, often even after a deal is done or has been denied. But then, the government owns newspapers. Analysis of state media is a refined science in China. Let’s see some of it in action. Read More >

By on June 14, 2011

This past weekend, a young man named Lucas Ordonez finished in second place in the reasonably-well-contested LMP2 class at LeMans. The video-gaming world has taken notice, because Mr. Ordonez entered racing as the winner of the PlayStation GT Academy a few years ago.

This proves the truth of what every basement-dwelling, sunlight-allergic gamer geek has been saying for years: being fast in a racing video game makes you fast in real racing. After all, if a kid from nowhere can step from his couch into a racing program and fulfill the lifetime dream of nearly every sports-car racer in the world, surely “Gran Turismo” is a genuine, realistic training tool, right?

Naturally, the truth of the matter is not so simple.

Read More >

By on June 14, 2011

 

 

Honda and Toyota have been valiantly holding off an all-out assault on the compact segment thus far, and Civic and Corolla still lead the C-segment’s year-to-date sales race. FOr the month of May, however, the barbarians made it inside the gate, and turned the compact market on its head. Chevrolet’s Cruze, which was one of the first of new breed of compacts to launch, took advantage of its head-start in the marketplace to tear into first place, beating the new Focus by a mere 408 units. Elantra was about 2k units behind the Focus/Cruze leaders, but finished nearly 2k units ahead of Civic, which itself beat Corolla by nearly 1,500 units. Now that the Compact Wars are well and truly joined, we can expect more of this back-and-forth each month. In any given month this can be anyone’s segment… the question now is whether Honda and Toyota can possibly hang onto their YTD lead and finish 2011 with the volume win. It’s by no means a sure thing… hit the jump for a month-by-month breakdown of “big six” compact sales.

Read More >

By on June 14, 2011

Strap on the man-pants, Saab fans, because there’s another heaping load of bad news for the Swedish brand this morning. First off, Saab’s mysterious Russian backer Vladimir Antonov has backed out of a deal in which he was to buy property at Saab’s Trollhättan plant and lease it back to the company, stabilizing its short-term cash position. Automotive News [sub] quotes an Antonov rep as saying

The property sale is now being discussed with external investors

Apparently the Swedish real estate investor Hemfosa has stepped into the breach and sources say a deal could happen quickly. Antonov’s man added that his boss was still interested in securing a shareholding in Saab, a move that has been awaiting approval by the European Investment Bank for some time now. But despite Antonov’s insistence that he’s not going anywhere, the real estate deal pullout is troubling. After all, if Antonov were really the Saab zealot he claims to be, willing to support and revamp the brand at any cost, wouldn’t he want to own the Trollhättan plant? Wouldn’t he want deed to the factory in case Saab, as it exists now, goes into bankruptcy? This is the first indication that Antonov is treating his Saab involvement as an investment rather than a crusade, which is frankly a bad sign for what’s left of the Swedish brand. On the other hand, with Chinese firms chopping up Saab, what’s a businessman to do?

Read More >

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