In January, the Chinese government had warned its (mostly government-owned) car companies to go easy on capacity expansion. Car sales in China were expected to show more sedate numbers than last year’s torrid growth rate of 45 percent. Sales did not follow government orders. In the first four months of 2010, Chinese car sales grew 60.51 percent. Now finally, the government can say “we told you so.” China’s car dealers sit on a mountain of unsold cars. Read More >
Nissan won’t sell their much ballyhooed pure plug-in Leaf until December. But a successful launch wants to be well planned, and Nissan thinks of everything. They won’t sell you the Leaf just yet. But you can already buy the charger. If you bank account is properly charged. Read More >
After exhaustive study of the U.S. economy and buying patters, J.D. Power raised their U.S. sales outlook. From previously forecasted 11.7m units to 11.8m units. Rental car lots are seen to absorb a good chunk of the total. True retail sales are projected to be 9.7m units when the year is over. “Much of this is due to the increased fleet mix,” says Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. In May, J.D. Power is “looking for fleet sales to account for 24 percent of total sales.” Read More >
Why does it drive you nuts when other people around you are yakking away on their cell phones? It’s not the noise that distracts you. It’s hearing only one half on the conversation that is driving you mad. That according to a study by scientists at Cornell University, to be published in the journal Psychological Science. It could seriously impair your driving … Read More >
A lot of people have been shaking their heads at the Toyota/Tesla deal. Was it just an elegant way to unload the NUMMI plant? As in “here are $50m, please buy my plant with it?” Or is it part of a grand strategy, the beginning of Toyota’s foray into an all-electric future? As usual, the truth is stranger than business plans. Read More >
Yesterday’s Toyota hearing at the U.S. House of Representatives Energy and Commerce Committee was a desperate attempt to keep the Toyota issue in the headlines, and to provide flanking support for Waxman’s proposed Motor Vehicle Safety Act. The ghosts in the machine are still at large … Read More >
Akio Toyoda has often warned his company of the risks of “big company syndrome,” doubtless with the GM’s spectacular decades-long fall from dominance in mind. Today, he framed Toyota’s announcement of a partnership with EV startup Tesla as way to reconnect with a lost underdog mentality, saying
By partnering with Tesla, my hope is that all Toyota employees will recall that venture business spirit
Of course, he also said that only a recent return to profitability allowed Toyota to even consider this deal in the first place. And what of the deal? Toyota will buy $50m worth of Tesla shares “in a private placement to close immediately subsequent to the closing of Tesla’s currently planned initial public offering,” as a Tesla presser puts it. In exchange, Tesla is buying “site two” of the NUMMI plant for what Tesla CEO Elon Musk terms “a great price.” NUMMI will be the production site for Tesla’s Model S, a $30k Tesla, and a jointly-developed sub-$30k vehicle. The two firms also intend to cooperate on the development of EV components as well as production system and engineering support
Rep Henry Waxman’s version of the Motor Vehicle Safety Act passed the House Subcommittee on Commerce, Trade and Consumer Protection today, and will go before the full Committee On Energy And Congress. The subcommittee markup [in PDF format here] includes a number of provisions that the industry and others had argued against, such as a $9 fee on each new vehicle sale, and mandatory event data recorders (EDRs) which would “continuously record vehicle operational data” and store all data from 60 seconds before, and 15 seconds after a crash. According to Automotive News [sub], Rep John Dingell is in negotiations with committee chairman Waxman to mitigate two key proposals: the removal of a cap on NHTSA fines, and the granting of so-called “imminent hazard” authority.
The San Francisco Chronicle is reporting that California Governor Arnold Schwarzenegger has said that Toyota will team up with Tesla to “build electric cars in California.” The governor made this shocking revelation at Google’s I/O Conference today, and told reporters [via the Sacramento Bee]
Today is a very exciting day for me because … I am also going over to the Bay Area to talk about Tesla and Toyota forming a partnership, where they take one of the Toyota cars and make them electric. And again, they’re going to do that here in California.
The obvious scenarios involve joint manufacturing at Toyota’s former GM joint-venture plant NUMMI in Fremont, CA, although there has been no confirmation of these or any other details yet. [UPDATE: According to insidebayarea.com, a Downey, CA city councilman
confirms that Tesla will build the Model S at NUMMI. The Downey City Council had planned to approve a lease deal for a Tesla factory site, but Tesla CEO Elon Musk called to announce that his firm would be setting up shop at NUMMI]
Colin writes:
Sajeev and Steve: I’m a Brit currently on expat in the US. For several years now I’d loved the idea of buying a cool American only car and taking it back with me, have something fun to drive for a while and then selling it in the UK (or Europe) for more than its total cost. I have 18 months left before my return, however to avoid import duties and VAT I need to own the car for a minimum 12 months in the US and 6 months in the UK.
What is it about former (or ostensible) communist leaders and retro limousines? China’s Hu Jintao got a tip of the hat from us last October for stepping out in style at the country’s National Day celebrations in a retro-fabulous Hongqi HQE. Now, The Guardian reports that
President Dmitry Medvedev has decided to trade in his Mercedes and bring back the ZiL, in what appears to be the latest attempt by Russia’s nostalgic leadership to turn the country into a Soviet theme park. Medvedev has asked aides to examine whether the austere and enduringly sinister limousine can be brought back into production.
And why not? After all, what’s more authentically Russian than being ferried through Red Square in an “enduringly sinister” vehicle made by a company that was at one time known as “Stalin’s Factory”? Is it too soon to ask about American-market availability?
The auto enthusiast community is far too fragmented to ever achieve real consensus on any issue, but if there’s a single authority on performance-oriented cars, it’s Britain’s enthusiast bible evo Magazine. So when evo bashes an enthusiast-targeted model, it’s usually worth taking note of. The latest print issue of evo includes a Chris Harris review of Audi’s range-topping RS5 coupe [online summary here], the 444 hp, V8-powered flagship of its A5 lineup, and from line one the reader can tell that something is rotten in the state of Quattro GMBH. Harris describes an attempt to blow the doors off a 328 hp S4 camera car, only to find that, three gears later, his $15k more expensive coupe had barely gained any ground on the supercharged V6-powered S4. So, what gives?
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Yesterday’s Senate Committee On Commerce, Science and Transportation hearing on the proposed Motor Vehicle Safety Act [full text of proposed Senate version S.3302 in PDF format here] was a surprisingly low-key affair. Discussion didn’t seem to move much beyond the battle lines drawn at House hearings two weeks ago. NHTSA Administrator David Strickland continued to argue passionately in favor of so-called “imminent hazard” powers, which are included in Henry Waxman’s House version of the bill, but not the Jay Rockefeller-sponsored Senate version. Meanwhile, debates over nearly every proposal in the legislation rage on, as the industry seeks to mitigate what it considers the bill’s most onerous and intrusive measures. But Strickland framed NHTSA’s mission in zero-tolerance terms: if one American dies on the road, he argued, NHTSA should be doing more to prevent it. This philosophy is underlined by the presence of hard-core safety advocates Joan Claybrook and Clarence Ditlow at nearly every DC hearing on auto safety since the Toyota recall. The flip side to this position is the argument that cars have literally never been safer, and that deaths per vehicle mile traveled are at all time lows. This yawning divide in perspectives towards automotive safety is begging for discussion, so let’s have it. Are cars safe enough? Which new regulations make sense, and which are more onerous than they’re worth? Where should the government define an acceptable number of roadway deaths? And are cars the problem, or are people?
Because this is a political topic, please make the extra effort to make your comment constructive. Complete prepared testimony from yesterday’s hearing can be found here.
Nearly a month after ditching Chevy’s longtime ad agency Campbell-Ewald in favor of Publicis, GM management is said to be eying another change in strategy for its most important brand, as new Marketing boss Joel Ewanick begins making his presence felt. Sources tell AdAge that Ewanick is considering moving creative responsibilities for the $600m Chevy account from Publicis to Omnicom Group’s Goodby, Silverstein & Partners, although GM has not yet confirmed any such move. Anonymous GM execs tell AdAge:
They told him he could have virtual carte blanche in decision-making, and he’s already exercising his power to do so. He’s surrounding himself with people he feels most comfortable with and trusts… He didn’t pick Publicis, he inherited it.
Focusing on Chevy, and not being afraid to shake things up are two very encouraging signs from Ewanick. Having inherited former Marketing boss Susan Docherty’s gestating campaign centered around the line “Excellence for Everyone” and some intensely unmemorable Publicis ads, Ewanick clearly needs to bring the thunder, and according to AdAge, all of GM’s agencies are in a tizzy over the shake-up.
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