At yesterday’s annual shareholder meeting, Volkswagen had nothing but good news: A record year 2010, a record first quarter 2011, a company that is rolling in cash. Instead of thanking management for the good numbers and the (smaller than expected) dividend, ingrate shareholders bawled Winterkorn out. Read More >
For Jefferson County, Missouri, it was not enough to force a red light camera company to pack its bags and leave the area. Commissioners last week wiped the books clean, unanimously repealing the ordinance adopted last summer that had authorized the use of automated ticketing machines in the unincorporated parts of the county.
“The old three-member county commission decided to implement a red light camera program using ATS as the vendor,” Councilman Bob Boyer told TheNewspaper. “As is typical, ATS came to Jefferson County and found their problem for them. And then decided the best solutions were red light cameras.”
Didn’t they say that you have to be a monster car company with at least 5 million units, just to survive? BMW did not get the memo. Aiming for sales of just 1.5 million units this year, BMW delivered a first quarter 2011 net profit before tax of €1.812 billion ($2.691 billion), surprising analysts that had expected something in the neighborhood of $2 billion. Read More >
China is getting a double dose of Volkswagen Passat. The new generation B7 Passat will hit China’s streets in a longer wheelbase version, to provide legroom for the boss in the back while the driver up front braves the crazy Chinese traffic. Just like the previous-gen B6, the car will be built by Volkswagen’s northern joint venture with FAW and will be sold under the Magotan name. “Passat” was already taken by Volkswagen’s southern joint venture, more on that below. Read More >
David writes:
I know that European vehicle snobbism is often frowned upon here, but I do love the look and feel of German cars better than any other. The downside seems to be maintenance costs, that they are simply not affordable to own.
I’m going to be looking for a car in about the $20-25k range, so my choice is between pretty dull new Japanese cars and a circa 2008 BMW 328i or Mercedes C300. Both of them seems to be really attractive cars, but of course the enthusiast crown always goes to the BMW.
What I’m wondering is if the Certified Pre-Owned (CPO) program might be the answer. I’m sure most of you already know this, but the general idea is that they inspect and recondition low mileage used cars, give them a comprehensive warranty and basically treat them like almost new vehicles. The Mercedes program is the best known, but BMW appears to be coming on strong with an offer of five years free maintenance. On paper that should mean nearly cost-free ownership save brakes and other wear items.
So, sales are up… but what are the automakers spending in order to get those sales? And what are they getting for their cars? Step inside our incentives and transaction price tracking center for a look at the factors that play affect how sales turn into profits (or don’t). But first, take a look at the graph above showing US-market incentive spending broken out by the regions where automakers are based. As usual, the US-based OEMs put more cash on the hood than their competitors, but more importantly notice how much money is spent on sales each month: nearly $2.5b was spent last month. And despite being a serious chunk of change, Edmunds AutoObserver says that’s the lowest overall level of incentive spending since 2005. So if you’re inclined to ignore incentives when it comes to your monthly sales education, you might want to start paying some attention…
A lot has changed in the auto industry in the three years since I started writing here at TTAC, and one of the more heartening developments has been the move towards ever greater transparency for all kinds of data, from sales breakouts to incentives to sales-weighted fuel economy. Though I’d like to think that TTAC played a role in helping push towards greater transparency and disclosure, the real heroes of this story are Hyundai (which has begun to release its sales-weighted fuel economy each month and is moving towards quarterly fleet sales breakouts) and TrueCar, which has possibly done more to put information in the hands of auto consumers than anyone else (TTAC included). TTAC thanks everyone who is helping push the industry towards ever more disclosure, and invites you to take advantage of these newly-available data points in order to better understand the ever-evolving face of the US auto industry. Here we present TrueCar’s TrueMPG data for April, which shows a .2 MPG improvement across the industry since April 2010.
One of the worst things about traffic is that it’s so unpredictable. You can be whizzing along one minute, and crawling with the snails the next. Even the real-time traffic information that a few companies, notably Google, now provide, can be obsolete by the time you’re on your way.But a small cadre of lucky San Franciscans will soon be finding out where the traffic will be before it happens, thanks to a joint project by the California Center for Innovative Transportation (CCIT) at the University of California, Berkeley (my alma mater) the California Department of Transportation, aka Caltrans, and IBM.
Japan’s carmakers are slowly returning back to normal, hobbled only by unsure supply of parts and sometimes power. It will be slow going and full of surprises. One thing is for sure: The March 11 tsunami will have an ugly effect on carmakers’ books. Combined losses for the Japan’s carmakers and suppliers could “the biggest ever,” surpassing those during 2008 to 2009 financial crisis, Noriyuki Matsushima, an analyst in Tokyo at Citigroup Inc., told Bloomberg. Read More >
One of the cool things about the SAE World Congress is that there’s always at least a couple of radical new engine designs. Scuderi was back with their split cycle compressed air hybrid, only this time with a turbo that lets them use a much smaller piston on the intake side, reducing friction. FEV showed an engine optimized for compressed natural gas, with turbocharging, long intake runners, and a piston designed to increase turbulence. Two exhibitors were at the SAE for the first time. Grail Engine Technologies was showing their atmospheric-valve-in-piston engine that routes the induction through the crankcase and up into the combustion chamber.
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It might still be a bit early to put a sub-head on this month’s sales, but if GM can serve as Bertel’s China car sales oracle, perhaps they’ll indicate the US market as well. And if they do, we’ll be seeing strong year-over-year sales increases, with much of the new volume coming from compact cars, while large trucks sit flat. If GM doesn’t indicate the market well this month, then we’ll be sure to update our headline when we update the developing sales table which you can find just after the jump.
How many Civics could a Honda make, if a Honda could make Civics? Here’s a hint: “half as many” would be too optimistic a guess. Honda has warned its dealers to expect “severe shortages” in supply of the new 2012 model, and virtually every other Honda model will have the same availability issues until later this year. Toyota’s in the same boat.
What does this mean for TTACers who want to buy a Japanese-brand car?
Nissan’s NV200-based entrant into New York City’s Taxi of Tomorrow contest has won the contract (reportedly worth over a billion dollars), reports Reuters, beating out two other finalists, one based on Ford’s Transit Connect, the other from Turkey’s Karsan Otomotiv. The decision may be taking a few New Yorkers by surprise, as Reuters reports that the Turkish entrant’s clear glass ceiling made it a crowd favorite, and that
Karsan also hoped to gain favour with city officials by promising to assemble the cars in Brooklyn, vowing to use union labour. The plant would have marked a return of auto-making to the city for first time in about a century.
Though New Yorkers may have preferred a locally-built model to take over from the 16 vehicles currently serving as NYC Taxis, the NV200 seems like a sweet little van. So congratulations, Nissan… now, are we ready to start talking about a civilian version?
Zagato’s 100 year birthday present to Alfa Romeo, the TZ3 Corsa, was originally designed around the Alfa 8C’s running gear. So when Sergio Marchionne started showing dealers a new Viper prototype that “resembled the 8C,” I suggested that the TZ3 Corsa’s long-nosed, kammback profile made it a good role model for a future Italian-influenced Viper. And now, as if to explore that very possibility, Zagato has come out with a street-going TZ3 Stradale which drops the 8C underpinnings for a Viper ACR chassis and V10. Is this a look at the high-performance future of the Fiat-Chrysler alliance?
The German car market rose only slightly in April. 266.251 units were sold, reflecting a growth of 2.6 percent compared to April 2010. This according to data released by the Kraftfahrtbundesamt. Despite rising gasoline prices, SUVs (+35.5 percent) are gaining popularity. So do cars by Opel, with +20.9 percent the domestic brand with the strongest growth. Hyundai (+38.3 percent) is the third largest import brand, behind such “imports” as Renault/Dacia and Skoda. Read More >
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