Tata is doing everything possible to revive the shriveled sales of the Nano. Sales of the ultra-lowpriced Nano recently crashed to ultralow levels: In November, only 509 units changed hands, reluctantly. The success of the much hyped diminutive conveyance more and more looks like a flash in the pan, literally. The Nano became infamous for going up on flames. Then, Tata had to raise the ultralow price a few times. On top of that, Nano buyers were seen as bad credit risks by Indian banks and were hit with ultrahigh interest rates. Stir, simmer, and you have a recipe for disaster. Now, Tata has decided to fight back. However, the counter-offensive appears less inspired compared to the enthusiasm when the car was launched. Read More >
Newly freed from the government’s controlling interest, GM is turning the tables back on the government by accelerating its lobbying efforts some 83 percent in the third quarter of this year. GM spent $2.72m on lobbying in the second quarter of this year, and $2.49m in the third quarter, a massive increase over the $1.36m GM spent in the third quarter of last year (Chrysler spent $846k last quarter). Bloomberg reports
The Detroit automaker had nine registered lobbyists speaking with federal agencies and Congress on free trade agreements, distracted driver legislation, tax credits for electric vehicles, pension legislation, climate change bills [as well as] Wall Street reform; fuel economy regulations; U.S.-Asia trade; pending free trade agreements with South Korea, Colombia, and Panama; funding for renewable fuel research; defense spending; emergency response privacy regulation; event data recorders; pedestrian safety and other issues
But let’s be real about something: some of these issues are just a little more important than others….
Ever since four-door coupes became a dime a dozen, the European auto industry has been looking for a new niche, and for much of the past year or so, it seemed that the next big thing would be “small premium.” Inspired by the MINI, European automakers from Alfa to Audi have been trying to get consumers to spend big money on tiny, plush cars. But with Audi’s A1 starting at €15,800 ($20,873), it seems that even the efficiency-happy Germans aren’t willing to pay the price of entry for this new niche. Audi built capacity for 100k A1s at its Brussels plant, but since introducing the car in August, Audi has sold only 20k of the pricey subcompacts. And yes, the slow sales do seem to be tied to the exorbitant pricetags.
There is considerable new construction in Bahovista, Bulgaria, in what the New York Times calls a “goat-trodden village in the foothills of the Balkans.” China’s Great Wall and Bulgarian wrestler Grisha Ganchev have teamed up to build an assembly plant which, if the NYT is right, “should begin turning out the first Chinese-branded cars in the European Union,” sometime next summer. Which ones? Wait, we’ll get there … Read More >
Class action attorneys have set their sights on a South Carolina town that set up a freeway speed camera in defiance of state law. Since August, the town of Ridgeland has allowed the private company iTraffic to operate a speed camera system to mail tickets worth $133 to $300 each to the owners of vehicles photographed as they pass through a tiny stretch of Interstate 95. The fully automated system is housed in a recreational vehicle that is usually concealed behind a bridge. When state legislators heard of the town’s plan, they unanimously enacted a law to prohibit the use of speed cameras (view law).
Forget two or three year leases. Daimler will rent you cars by the minute and “is stealing customers from Mazda and Fiat with rentals aimed at drivers ready to forgo auto ownership,” reports Businessweek.
Emboldened by the successes of Zipcar and other short term rental or car sharing ventures, Daimler is test marketing its Car2go service Austin, TX, and Ulm, Germany. Soon to follow: Hamburg, Germany, in early in 2011, and dozens more cities in Europe and North America. Car2go rents Smart cars by the minute. Other carmakers, such as BMW and PSA want to develop similar services. Read More >
Due to missing parts, GM, Ford and Chrysler had to shut down plants in the U.S. and Canda, or put them on half shifts for the second day, Reuters reports. Read More >
As the Dodge A100 Hell Project proceeds in fits and starts, I’ve been so wrapped up in making the thing streetworhy that haven’t gotten around to doing anything about the external appearance… until now! Read More >
Lotus has perplexed and antagonized a number of auto enthusiasts by announcing its intent to expand beyond niche sportscars and become a global sport-luxe brand in the vein of Porsche and Ferrari. By announcing five future cars at once, Lotus made an audacious splash in the industry, and painted a giant target on its back. At the same time, Lotus’s initial plans called for the use of Toyota V8s and hybrid systems, leading some to wonder if Lotus was even being audacious enough. After all, assuming it could play with Porsche’s and Ferraris using only mass-market customer engines was somehow cravenly conservative to the point of being obnoxiously ballsy. Surely Lotus realizes that bespoke drivetrains are crucial to building a global sportscar brand? Well, apparently the Hethel boys didn’t get it… at least until their potential customers made an issue of it.
ABC reports that GM has purchased $2.1b worth of its stock from the Treasury Department, bring the government’s stake in the bailed-out automaker to 33 percent. GM’s stock price must now reach $53/share in order for the government to recoup its remaining $16.88b investment in The General. GM’s stock currently trades at around $33.70, and recent analysis from UBS shows that the company faces significant short-term challenges as an investment.
We’ve been slacking a bit on our sales analysis over the last few months, but with the end of the year rapidly approaching we’re getting ready to look back at a year of sales, statistics and trends. To catch you up on the evolving US market sales picture, we now present the top six sellers in each of the six most important segments. Midsized and compact sedans, midsized and compact crossovers, pickups and “luxury low” (better known as “3 Series Fighters”) are all represented with today’s wide but shallow snapshot of car sales in 2010. Will the Sonata pass Malibu this year? Having beaten the Toyota Highlander, will Subaru’s Outback take down the Honda Pilot? Will the CR-V hold off the Escape? Best And Brightest, this is your cue to start prepping those year-end sales analysis talking points…
Remember the Schadenfreude when the Department of Justice shook down Daimler for $185 million for corruption allegedly perpetrated in U.S. jurisdictions such as Russia, China, Turkey, Egypt, Nigeria, Iraq, Turkmenistan, and a host of others? To add insult to imbursements, Daimler even had to endure former FBI director and Lewinsky-sperm-on-blue-dress investigator Louis Freeh as anti-corruption compliance officer. In the bargain, the NYSE lost Daimler as a listing, because no NYSE listing, no more SEC probes. Everybody knows that these inducements are quite common in the industry. As evidenced by a massive raid involving around 100 police officers. They descended today on Ford’s German plants, on an unidentified company in Leverkusen and on the private homes of Ford employees. Read More >
I have a 2000 Honda Accord Coupe EX-V6, 253k miles, original automatic transmission. I’ve had 2 motor mounts replaced, a heater core, and otherwise just standard maintenance (transmission service every 50k miles, new belts every 100k, along with new water pump; new alternator whenever I burn the old one out). Last year, the tranny started whining, giving the inevitable death wail of the Honda slushbox. But it’s still going strong, the wail has stopped, and the transmission fluid looks and smells as clean as ever. My wife and I are looking into buying a 2009 Honda Fit Sport to replace it. The question: do I sell this bad boy or keep it, and do I wait till it dies to buy the Fit (or Pontiac Vibe, or something else)? Full disclosure: my father in law is a GM mechanic, who would love it if I bought a GM.
On December 1, a B-sized sedan went on sale in India without a single car in the showroom. It is called the Etios, it is made by Toyota, and sight unseen, it already received 12,000 pre-orders as of today. Production of the Etios will start on December 20 in Toyota’s factory near Bangalore, India. Boring story so far?
While in Toyko for the rest of the year, I had a chance today to talk to Toyota’s lead engineer of the Etios, Yoshinori Noritake. And a much bigger story emerged: Toyota is engineering and building new cars, made for the special demands and targeted at the world’s new growth markets. Developed markets may not apply.
Noritake is a soft-spoken, humble man. Read More >
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