Category: News Blog

By on May 10, 2011

Mazda may be free from its less-than-entirely-successful relationship with Ford, but when it comes to US production, Mazda is still very much stuck in its Ford-dependent past. B-Series pickup production has ended in St Paul, but Tribute is still built alongside Escape in Kansas City (for the moment), and the majority of Mazda’s US production is still accounted for by Mazda6, which is also built alongside Fords at the shared Flat Rock “Auto Alliance” plant. But AutoWeek‘s Hans Greiml reports that the Nikkan Kogyo newspaper believes Mazda could be looking to pull out from Flat Rock.

the Mazda6 is a big reason Mazda can’t turn a regional operating profit in North America–one of its most important markets.

The company planned to produce 100,000 Mazda6 units annually at the Flat Rock, Mich., plant, when the redesigned sedan was launched there in mid-2008. Then the financial crisis hit.

Last year the plant built only 45,168 units.

Mazda is cagey about what options it is mulling. If it quits producing the Mazda6, it could bring in another vehicle–or Mazda could quit the plant completely. Speculation abounds in Japan that Mazda is eyeing a new, lower cost North American production base in Mexico.

With the Tribute going out of production by the end of the year, Flat Rock would be Mazda’s last remaining US production facility. But while moving production from Flat Rock to Mexico might be a solid strategic move, it won’t change the Mazda6’s underperformance in the market. That’s going to take at least a “Mazda-rati” redesign. Hit the jump for a graph of Mazda’s midsized sales performance since 1995.
By on May 10, 2011

 

Honda revealed prices for their „Chinese Brand“  Everus S1.  As reported before, these “Chinese brands” are brands created by joint ventures, based on (usually not the latest) foreign platforms, filled with parts of foreign pedigree, and as much Chinese manufacture as possible. Supposedly, these brands are targeted at the lower income brackets. They better start saving. When the concept was launched, the target price for the cars was under $10,000, but what is going on sale is consistently over that. Read More >

By on May 10, 2011

Speaking your mind to a police officer during a traffic stop is not free speech, according to the Tenth Circuit US Court of Appeals. A three-judge panel ruled Thursday that Colorado Springs, Colorado Police Officer Duaine Peters did nothing wrong in having Miriam Leverington fired from her job as a nurse at Memorial Health System for talking back after he wrote her a speeding citation.

Read More >

By on May 10, 2011

 

Our patent pending GM China sales oracle saw it coming: GM China was down in April, therefore, the whole Chinese market had to be down in April. And so it was – by a hair: April new vehicle sales in China were down 0.25 percent, the China Association of Automobile Manufacturers announced at a press conference on Tuesday afternoon. This is the first decline in 27 months. Read More >

By on May 10, 2011

 

Remember the first auto part that had been in short supply after the March 11 tsunami? It was car paint. Certain car paint that uses a shiny pigment called Xirallic, to be exact. That will also be one of the first Japanese parts that will move elsewhere as a result of the disaster. Germany’s  Merck said today it will shift production of Xirallic pigments from Japan to Germany. Read More >

By on May 10, 2011

‘Tis the season when Japanese companies publish annual results. They all work on a fiscal year that runs from April 1 through March 31. Then, they need a good month to count the beans, to be ready in mid May. Suzuki was first to announce, and the announcement was good: Read More >

By on May 10, 2011

While Michigan Senators, aided by the Detroit News, are chasing their own tails complaining about Chinese EV draft regulations that only exist in rumor form, a major European manufacturer practices Realpolitik and covers all possible bases: Volkswagen appears to launch an indigenous, all-electric brand for China, and (at least for the time being), for China only. Read More >

By on May 9, 2011

In TTAC’s early years, we spilled much digital ink over GM’s bloated brand portfolio, wondering again and again what brands should be cut, which should move upmarket and which should move downmarket. It’s a fun exercise, but one that history has largely passed by. Not only did GM cut Saab, Hummer and Pontiac in its bankruptcy, but Chrysler has more than doubled the potential number of brands to be sold through its distribution channels, shifting the brand-clutter center of gravity towards Auburn Hills. But GM isn’t done struggling with the legacy of the Sloan system, as GM North America boss Mark Reuss tells Automotive News [sub] that GM still has at least one major branding battle on its hands: Chevy versus GMC.

We need to make sure that we drive the differentiation in the product and the price to create that separation that we know we can on GMC and Chevrolet. I don’t think we have the margin opportunity set up quite right with GMC.

Read More >

By on May 9, 2011

The king is dead! After years of dominating the subcompact charts, the Nissan Versa was toppled from its top spot by not one but three upstart nameplates. Kia’s Soul, the Versa’s most consistent competition since it launched, has finally arrived as a legitimate slow-wave hit, topping 10k units and running away with the segment even as an updated model was announced at the NY Auto Show. Fiesta finally came into its own as well, racking up a thoroughly legit 9,147 sales over the month, and the lagging Fit staged something of a comeback with sales rising to 8,116 units. Versa’s fourth place finish was enough to handily beat Chevy’s aged Aveo, which itself nearly slipped below the equally aged Hyundai Accent for the month. Meanwhile, Yaris held off a solid-ish performance by Mazda2 and creamed its Scion xD cousin. With the Versa’s fall from grace (and the Cube’s non-impact) we have what may be an interesting peek at what the segment could look like when Nissan replaces its roomy Versa with its underwhelming Versa (Sunny) sedan. Of course, with new Soul, Aveo (Sonic), Accent and Rio models coming soon, there’s no telling where this segment could end up by the end of this year.

By on May 9, 2011

Mazda’s CX-7 and CX-9 are masterpieces of scaled design, distinguishable largely by proportion or badging rather than any real differences in design cues. And, by the looks of this camo’d test mule, Mazda’s forthcoming CX-5 will be yet another CX… just, you know, smaller. But don’t be fooled: the production CX-5 should be one of the first applications of Mazda’s Kodo design language first shown on the Shinari concept. In fact, the Minagi concept has already previewed the CX-5’s use of the new “Japanese Alfa Romeo” aesthetic, but as this hypnotic video proves, the language can go a lot of different directions. At least it will definitely be different… and not in the Cheshire Cat-meets-Pokemon way, either.

By on May 9, 2011

Just over one week ago, a Detroit News piece pointed me towards a letter written by Senators Carl Levin and Debbie Stabenow, which took China to task for considering draft legislation that might possibly require more technology transfers to Chinese companies as a precondition to market access. Having chased down both the letter and the US National Trade Estimate it was based on, as well as several reports on the draft legislation itself, I wrote a lengthy piece about how Senators Levin and Stabenow were rattling the saber about what appeared to be a complete non-issue. In that piece, I not only debunked the senators’ concerns, but I also pointed out that China’s local consumer EV subsidies were the far more worrying potential trade barrier, as we have been hearing that they require that all qualifying EVs be built in China and sold with Chinese brands (a condition at odds with at least the 2004 version of China’s Auto Industry Development Plan, which stated “local governments should encourage fair competition among motor vehicles made by different places on the local market. They are not allowed to carry out any discriminative policy or measure which may lead to discrimination against non-locally manufactured automobile products.”). And it turns out that my 2,000+ words didn’t put everyone to sleep, as a new DetNews piece re-reports the Stabenow/Levin letter with the inclusion of a new motivation never mentioned in their actual letter, to wit:

For electric or plug-in vehicles to qualify for incentives under the proposed rules, they must be produced in China — by a Chinese carmaker or in a joint venture with a Chinese company

Ignoring for a moment that this wasn’t explicitly mentioned in the letter, there’s another issue here: subsidies aside, building any car in China requires a joint-venture. More importantly, China need not establish any barriers to the sale of imported plug-in or hybrid cars for the simple fact that the Toyota Prius’s epically weak sales there prove that imported NEVs can’t compete in the market. Of course subsidies may change that, but even more important is the issue of registration limits: if China requires EVs to be locally-made in order to waive Beijing’s registration restrictions, that could create more of a barrier than any cash subsidy. Meanwhile, neither Daimler nor Toyota nor VW nor BMW seems to have a problem with building EVs locally under a JV (cost and supply chain make Chinese production the logical choice anyway, necessitating a JV). The DetNews (and presumably Senators Levin and Stabenow) are getting closer to understanding the problems with China’s New Energy Vehicle Plan, but it seems they may yet have some more TTAC reading to do.

By on May 9, 2011

Of all the barriers standing in the way of commercial success for electric cars, the “image issue” is perhaps one of the least understood. Most EV firms have embraced the distinctively Western “green consumption” trend, in which a kind of environmental asceticism drives consumer values of downsizing and ultimately self-denial. But making a conscious choice to not use gasoline and accepting whatever the market happens to offer is not a phenomenon that automakers can expect to sustain itself. If they ever want to achieve mass acceptance, EVs need an image context that goes beyond graywater recycling, “freeganism” and other highly conscious but ultimately self-denying lifestyle choices.

Racing is one obvious way to broaden EV appeal, as it highlights the positive performance aspects of EV drivetrains, but sadly no major OEM will commit to an EV racing series. Besides, racing hardly builds on the existing (if limited) green appeal of EVs. Enter the EV as disaster response vehicle. The NYT has a fantastic story about the use of EVs in rescue efforts after the Japanese quake/tsunami, when gas was largely unavailable. The story proves that EVs, far from being mere lifestyle accessories, can be hugely useful in the right circumstances. And because so many green lifestyle choices stem from a perspective of apocalyptic expectation, this story both broadens and builds on the EV’s existing appeal. Most importantly of all, pictures like the one above will do more to banish the limp-wristed, “anti-luxury” image that curses EVs than just about anything else. Just as SUV buyers would swell with pride seeing an ad image of their Explorer in off-road conditions they would never visit themselves, the image of EVs running first-responder missions in a quake-torn Japan could be of lasting significance.

By on May 9, 2011

TTAC reader Tiburon Guy writes:

Hey Sajeev,

Long time I know: I still have the Hyundai, fixed up and kicking butt. I ditched my 2000 Ford Mustang v6 and bought a 2010 Ranger XLT. No regrets at all: 24 MPG city…come on!

The real reason why i’m responding is I have a question: I always wanted a car from my birth year. (1982) Thing is, the early 80’s weren’t too kind aesthetically on domestics. With a budget of 8-10k, what would you guys suggest that I should get from 82 that looks good, rides better, and won’t leave me broke from maintenance and repairs?

Read More >

By on May 9, 2011

Electronics retailer Best Buy raised a few eyebrows when it began selling Brammo electric motorcycles alongside its flatscreens and Xboxes a few years back. Two years after that agreement was announced, however, Brammos are sold at only three West Coats Best Buys (one here in Portland, OR, two in California) and Brammo is expanding its own dealership network independently of the big box chain. Was Best Buy’s Brammo experiment a disappointment? If so, it’s not stopping the retailer from pursuing other electric vehicle opportunities, as Best Buy’s mobility and transportation honcho Chad Bell tells Automotive News [sub] that it’s talking to electric car firms about a possible retail deal.

We are having conversations with some of the startups. I would say the conversations are going well. We are very excited about several partnerships that we can’t talk about yet. We probably get more traffic in a weekend than some of these dealers do in a month. The benefits for a small automaker trying to cobble together a sales and service network are obvious.

And despite the emphasis on startups and his use of the term “cobble together,” Bell insists that electric mobility is a long-term strategy for Best Buy.
By on May 9, 2011

Australian investors in the photo enforcement firm Redflex Traffic Systems voted down a buyout offer from toll road giant Macquarie Bank and the asset management firm Carlyle Group at a general meeting in Melbourne today. The recently sweetened deal would have paid A$2.75 per share, or $305 million total, to take over the speed camera and red light camera business.

“Your directors unanimously recommend that shareholders vote in favor of the improved scheme proposal, in the absence of a superior proposal,” Redflex Chairman Max Findlay told assembled shareholders. “I can confirm that no superior proposal has been received.”

Read More >

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