Nick Taylor’s layman’s observations of American cars in China are a great first impression view. But first impressions can be deceiving. It is true that the Chinese auto market is very much similar to the U.S. market. They love 3 box “real cars” (trend recently shifting a bit), they love SUVs, they love big cars if they can afford them. “American” cars, mostly Buicks, Chevys and a smattering of Fords on Chinese roads are mostly made in China. Just like the “German” or “Japanese” cars that are made mostly in China.
China as an export market for U.S. cars is a whole other matter. China has a 25 percent tariff on imported cars. That pretty much limits car imports to segments where price doesn’t matter, or where a high price acts as a differentiator from the riff-raff: Luxury cars. And this is where Europe reigns supreme. Read More >
Observers who followed China’s SAIC coveting of shares in the upcoming GM IPO (only 3 days to go!), and who hoped/feared that SAIC would buy a big chunk of GM, will be disappointed/relieved to hear that SAIC is content with a more or less symbolical 1 percent share in the General.
Reuters has it on good authority (“four people familiar with the matter”) that SAIC and GM have reached an agreement in principle that cements the 1 percent deal. The deal is contingent on Chinese government approval, but this is expected to be fast tracked and should happen today before the U.S. even gets up.
So the big Chinese buy-in is just a lot of hot air? Wait until you hear what SAIC received as a deal sweetener. Read More >
I’ve always maintained that despite green noises about electric cars, Volkswagen, deep in their Wolfsburg hearts, doesn’t believe in them. Because they don’t make sense. If they are too expensive, people won’t buy them. Volkswagen has ample experience in this arena, probably more than anybody else. Ages ago, VW built a fuel-sipping 3 liter Lupo (3 liter / 100 km, 78 mpg.) The press lapped it up. The greenies creamed in their pants. Focus groups swore they’ll buy it, no matter the cost. They lied. In the showroom, the 3 Liter Lupo was a dud: Advanced materials had made it light, but also expensive. Customer reaction: “Interesting. Now how about that red GTI over there?”
Now finally, someone high up at Volkswagen has the guts to say it: Volkswagen doesn’t build electric cars because the customer wants them. Volkswagen makes EVs because the government demands them. Read More >
A few days ago the BBC reported that, officially, Russia was losing 1 trillion rubles (that’s about $32.5b to you) due to corruption. Also coming 154th on the corruption perceptions index does not help matters, either. “Gigantic sums of money are being pocketed by officials and dishonest businessmen,” said Russian President Dmitry Medvedev, “Deal with them and put them in prison – there is no other way out.” So it sounds like President Medvedev is serious about dealing with corruption. He starts with a foreign company with deep pockets: Daimler. Again? Read More >
Peugeot has been all downhill recently in Brazil. Despite a relatively good showing in the São Paulo Car Show, its Brazilians offerings have been nothing to write home about. Having carved out a solid sixth place slot in sales (and sometimes threatening Renault’s fifth place) when it first got to Brazil, it has been recently surpassed by the likes of Toyota, Honda and even Hyundai. However, with the all-new (for Brazil) 3008, which was launched in Europe in 2009, Peugeot is asking its Brazilians customers: Are you ready to give up your false-jeep pretensions and give a more minivan-looking crossover a chance? Read More >
I’ve made no secret that if I wanted one of Detroit big 3 to succeed it was Chrysler. I’m not really a Ford fan and any affection I had for GM got killed off with Bob Lutz’s insane ramblings. Chrysler was always considered the most broken. Heavily dependent on fleet sales, woeful reliability and bleeding money. Then Chapter 11 came and I thought it was game over for Chrysler. Until recently. Read More >
Germany’s auto industry has a huge problem: Way too many customers. “We have that fattest order books of all times,” said Esther Bahne of Audi to Germany’s Spiegel magazine. Result: Customers have to wait months for their cars. Sometimes longer than ever before, says Der Spiegel. Read More >
Did you know that the Volt’s most important and priciest ingredient comes from Korea? The Volt battery is made by LG Chem, the battery arm of the Korean company formerly known as Lucky Goldstar. Noises coming from Korea indicate that GM might be building more Volts than thought. How do the Koreans know that? GM ordered more batteries. Read More >
Some say, TTAC has an anti-Detroit, pro-import slant. We won’t comment on that, you mommy-fraternizing liars. All we can say is: If you harbor these notions, don’t move to Oklahoma. Oklahoma’s largest newspaper, the Oklahoman, dishes out more anti-Detroit snark in a single serving than even a Farago could have cooked-up in his TTAC lifetime. How about calling the former owners of Chrysler unqualified “idiots?” And not the former owners you think of now. Wait, there is worse. Read More >
Bob Lutz’ Cadillac Sixteen concept wasn’t the first time a revival of the classic Cadillac V12 and V16 era was considered. In the mid sixties, Cadillac was seriously mulling production of one or the other, and several versions of a SOHC V12 engine (see post here) were built. But if you think the Sixteen Concept had a long nose and was a bit over the top, check out this rendering by Cadillac Studio Chief Wayne Kady. From the size of the steering wheel and dashboard, it appears they were planning to transplant the V16 from a tug boat. This must be where the infamous bustle-back trunk of the 1980 Seville originated. Well, this is just a not-so-small taste of the creativity that was unleashed when the designers were asked to come up with ideas. Read More >
We are worried about the rate of green house emissions from transport sector. There is need for mandatory fuel efficiency standards. Big vehicles like SUVs should stay off roads
Minister Ramesh’s plan is two-fold: first, he is calling for an end to India’s subsidy of diesel fuel, arguing that diesel contributes disproportionately to India’s greenhouse gas emissions. The second portion of his plan is more controversial, but should sound familiar to American readers: get rid of those nasty SUVs. Ramesh explains
Put a penalty on the type of cars you don’t want to see on the roads, which are diesel-driven cars, SUVs… We cannot ask people to buy or not buy a particular car. But through an effective fiscal policy, we can certainly have an impact
India’s auto industry insists it’s ready for diesel prices to be cut free, but they’re fighting back against Ramesh’s suggestion of a jihad on SUVs. Read More >
Hyundai’s new Elantra is the latest C-Segment car to receive a 40 MPG highway EPA rating (29 MPG in the city) as it prepares to take on Ford’s 40 MPG 2012 Focus and the 42 MPG Chevy Cruze Eco. The Accent’s only engine is a 1.8 liter engine is expected to make 148 HP and 131 lb-ft of torque, meaning you won’t have to upgrade to a special engine and aero package (as in the Cruze) or a dual-clutch transmission (as apparently is the case with the 2012 Focus). It will be down on power compared to the 160 HP/146 lb-ft Focus and more power but less torque than the 138 HP/148 lb-ft Cruze Eco, but should undercut both on price. And by bringing the model-wide efficiency up rather than tweaking special models for high efficiency, Hyundai’s John Krafcik says that his firm will have no problem hitting a 50 MPG average by 2025 (though a CAFE calculation that gives the 40/29 MPG ELantra a 44 MPG average doesn’t hurt). Meanwhile, when was the last time you heard anyone even mention the Civic or Corolla? The times, they are a-changing…
America – the greatest country on earth. At least when it comes to Chevy Volt prices. You think its $41,000 tag is expensive? Wait until you hear what the Europeans will have to fork over for the rebadged Opel Ampera, and the Volt will look like the greatest deal on earth. Especially after subsidies. Ready? Read More >
Recent Comments