Category: News Blog

By on March 30, 2011

As I write this, President Obama and his top environmental and auto regulators are gathering for a speech on “American energy security” at Georgetown University. In this speech, the President is expected to make the case for ramped-up CAFE standards, EV subsidies and other transportation-related energy efficiency goals, and based on his politically pragmatic framing of the issue as being about “energy security” rather than environmental prerogatives, it seems that he’s serious about creating new policy rather than merely playing to his base. But, according to the Detroit News, the automakers are not going to take increased regulation sitting down, but appear to be gearing up for the first major legislative clash over automotive regulation since the green-tinged bailout. Automakers have begun to push back on both fuel economy and stalled safety legislation, explains Alliance of Automotive Manufacturer’s spokesperson Gloria Bergquist.

Automakers have always supported legislation and regulations that are driven by data and sound science, and there have been some examples where there was more wishful thinking and targets being selected that weren’t based on the data. So we have become more outspoken on the need for data to drive policy decisions.

Of course, automakers haven’t always supported regulation of their industry… but this is clearly a change in tone from the cowed industry that collapsed into the government’s arms just a few short years ago. A battle is brewing, so let’s look at some of the flashpoints in this forthcoming conflict.

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By on March 30, 2011

Remember the story about the rotating power rationing in Japan? One for all, all for one? It appears that it is pure fantasy. On Saturday, The Nikkei [sub] wrote that Japanese automakers are considering running their factories in rotation to help cut the industry’s electricity consumption. The wire service said that “automakers are expected to hold a consultative meeting shortly at the office of the Japan Automobile Manufacturers Association to agree a rotational schedule.” The story had originated on the usually reliable and sometimes uncomfortably persistent Kyodo wire. On Monday, the story grew legs. Automotive News [sub] reported that the electronic industries don’t want to be left behind and demand rotating production holidays between the automotive and electronics industries. It now emerges that it was all wishful thinking. Read More >

By on March 30, 2011

Red light cameras continue to generate controversy in a pair of Texas towns located off Galveston Bay. Last week, Baytown responded to the lawsuit filed by photo enforcement vendor American Traffic Solutions (ATS) in Harris County court on St. Valentine’s Day alleging breach of contract. The quarrel between the two parties began when voters overruled the city council’s decision to implement automated ticketing machines by imposing a requirement that police personally witness each alleged violation. ATS decided it would not earn sufficient revenue under such an arrangement and pulled out.

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By on March 30, 2011

Last weekend, Akio Toyoda donned heavy work clothes and a hard hat to do some genchi genbutsu (Toyota-speak for “go and see for yourself”) and toured the areas hit by earthquake and tsunami. Instead of us writing about it, we let Toyoda go and write himself.

Akio Toyoda, an admitted auto otaku, has an alter ego at the Gazoo Racing blog where he writes under the nom de plume “Morizou”.  That nick is borrowed from a cactus-like character that was the mascot of the 2005 Aichi Expo, but that’s for another story and another time. In yesterday’s blog, Toyoda/Morizou wrote about the tour. Translating from Japanese to English is pretty hard, especially when condolences are involved. Frau Schmitto-san and I besto wo tsukushita – we did our best, as they say in Japanese. Read More >

By on March 30, 2011

The first waves of the Japanese tsunami are reaching consumers at American shores. Oddly, some of the cars first affected may be the ones customers already have, not the ones they cannot buy. Toyota notified its dealers across the United States to prepare for a shortage of replacement parts, due to disruptions caused by the monster earthquake and tsunami in Japan, The Nikkei [sub] writes today.

Out of 300,000 “numbers”, as they call parts items in the vernacular, 233 are in short supply and have been “placed on controlled allocation,” as a Toyota U.S.A. statement says. Dealers are being asked to “refrain from placing any orders in excess of what is critically needed to support customer emergency need and true customer demand.” Read More >

By on March 30, 2011

Japanese car production was down 5.5 percent in February on weak domestic sales (down 12.4 percent in February to 401,292 vehicles) which were (not quite) compensated by a 13.2 percent rise in exports, the Japan Automobile Manufacturers Association says. Exports were especially strong to Europe, where 73.7 percent more cars were shipped. A total of 795,632 automobiles (all kinds) were made in Japan in February. This was the good news. Read More >

By on March 29, 2011

Here’s some food for thought: if you “liked” TTAC on Facebook, your mind would already be blown by this magical tale of Panther Love. Seriously, if I didn’t “like” TTAC myself, I might never have seen it [A tip of the hat to Sajeev and Alex Nunez]. So watch the whole thing, savor the chill that will run up your spine, and then go “like” TTAC on Facebook for a steady drip of more awesomely entertaining detritus from TTAC’s internet adventures.

By on March 29, 2011

The WSJ gets a little closer to the truth about the UAW’s incredible disappearing transplant organizing campaign, reporting

On Tuesday, UAW leaders meeting here described plans to reach out to foreign unions and consumers in what would be their first major campaign since failed efforts in the last decade at Nissan Motor Co. and auto-parts supplier Denso Corp. They hope to be more successful by reaching out to foreign unions at the auto makers’ overseas plants and bringing pressure from prayer vigils, fasts or protests at dealerships.

A person familiar with the matter said the union is now planning to target one foreign auto maker and has narrowed its list to three or four companies. Inside the union, much of the talk centers on targeting the now-struggling Japanese auto maker Toyota or Korea’s Hyundai, this person said.

The UAW has set aside tens of millions of dollars from its strike fund to bankroll its campaign. International actions are to be coordinated with foreign unions and run by some three dozen student interns recruited globally, UAW officials said. When the interns return to their home countries after learning about the UAW efforts in the U.S., they’ll be expected to organize protests against the auto maker, UAW officials said.

OK, so it’s a little bit strange that the UAW is entrusting a campaign that UAW President Bob King calls “the single most important thing we can do for our members ” to a bunch of interns. Still, with “tens of millions of dollars” allocated towards the campaign, some automaker somewhere will be feeling the union’s hot breath on its neck in due course. So, which automaker will the UAW target? Which automaker should they target? And with the UAW apparently refusing to fight the two-tier wage structure, will any transplant or foreign workforce want to join up?

By on March 29, 2011

Now that the economy is recovering and Hyundai has a new generation of more upscale offerings on its dealers’ lots, the automaker’s job-loss-protection program is going away, reports Automotive News [sub]. The one-year protection will be available on Hyundais purchased through the end of this month, but as sales boss Dave Zuchowski puts it

We actually see the elimination of the job-loss program as a sign of a recovering economy and we had never anticipated that this would be an enduring program. We welcome the day when it’s really no longer as relevant in the showroom or as required in the marketplace.

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By on March 29, 2011

I hate politics. Neither side of the extremes can do math and everyone in between ends up paying for it all. I don’t care if you’re a Rep, Dem, Lib, Con, Tea, or the apathetic majority. Putting faith in political solutions when it comes to money is never worth the effort. With that said, my home state of Georgia is money crunched. They see an asset worthy of their financial portfolio and yes, it is the automobile.

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By on March 29, 2011


Nate writes:

Hello gentlemen, I need some help with an upcoming car purchase. You may have covered my situation in the past, but here it is:

My wife currently drives a 2005 Saab 9-3 with about 60k miles on it. We owe around $8500 on the car. I’m doing my best to talk her into selling or trading before we have to pony up the cash for (another) inevitable repair, which from experience is never cheap on a Saab. I know nothing in my price range will drive quite like a 9-3, but my wife would prefer something very similar, with these qualifications:

Automatic transmission
Four doors
Sporty looks
A perky or down right powerful engine
2008 or newer
Less than $25,000

I know my wife would prefer something that’s of a similar size to the 9-3, but I don’t think she would be averse to a larger sedan like a TSX or an Infinity. I would prefer something still under warranty or at least less expensive to fix. I’m leaning towards a Mazda 3, but I’m not sure she’s sold on it just yet. Is there anything else that stacks up? Thanks in advance.

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By on March 29, 2011

Every state in the union has its own laws regarding a manufacturer’s ability to sell cars, with some states banning the practice outright and others merely preventing OEMs from competing with their own dealer networks. California falls into this latter category, as the California New Motor Vehicle Board bans manufacturers from owning dealerships within ten miles of other same-make independently owned stores. But that apparently did not stop Chrysler from opening a dealership in Los Angeles which, according to a petition filed by the California New Car Dealers Association, is within ten miles of not one, but three independent Chrysler stores.

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By on March 29, 2011

The initiative effort to give voters a say in whether red light cameras and speed cameras are used has spread to a fifth city in Washington state. The group BanCams.com began circulating petitions in Redmond, kicking off an effort on Saturday to gather the 3845 signatures required to put the measure on the ballot. The referendum petition follows the language used in Bellingham, Longview, Monroe and Wenatchee where signatures have been gathered since January.

“The city of Redmond and for-profit companies contracted by the city of Redmond may not install or use automatic ticketing cameras to impose fines from camera surveillance unless such a system is approved by a majority vote of the city council and a majority vote of the people at an election,” Redmond Initiative Number One states.

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By on March 29, 2011

In the face of hysteria about radiation that drowns out the true death and destruction in Japan, Renault and Nissan CEO Carlos Ghosn toured the earthquake-damaged Nissan engine plant in Iwaki. Iwaki is some 35 miles from the stricken Fukushima power plant. Right away, Carlos Ghosn had to deny rumors that Nissan would abandon their engine plant. Instead, Ghosn “vowed to use every possible means to rebuild it,” says The Nikkei [sub].

It will be slow going. Read More >

By on March 29, 2011

After the March 11 quake, when the office buildings stopped shaking, Toyota told its 500 staffers in Purchasing to contact suppliers. Each damaged supplier received a red pin on a large map of northeastern Japan. Soon, the map was swamped by a tsunami of red pins. Some suppliers “suffered the complete destruction of their factories,” writes The Nikkei [sub], “and were unable to determine how many of their employees were still alive.”

With more than 10,000 dead, more than 16,000 missing, and whole towns razed in the Tohoku area, many shops are now believed to be at the bottom of the furious sea.

“The word ‘ordeal’ does not even convey the gravity of the situation,” Toyota President Akio Toyoda says. Read More >

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