European new car sales have fallen back to crisis levels. With many of the incentive programs withdrawn or phasing out, it’s back to reality. Reality is quite rough. Basically, Europe is back where it was in the carmageddon days of early 2009. The few bright spots are caused by on-going life support measures. Without government generosity, the European market place would be a wasteland.
New passenger car registrations in the EU increased by a mere 3 percent in February. Compared to the pre-crisis levels of February 2008, new car registrations decreased by 16 percent, reports the European Automobile Manufacturers Association ACEA. Read More >
Sorry about the lateness of tonight’s clue. You Easterners are probably in bed by now, but the left coasters will take up the slack. Speaking of slack, Loser guessed the Ford cop car on the first comment. That makes you a Winner! Hopefully, it won’t go quite so quickly tonight.
Or is it the other way around? Based on the latest readings from our official TTAC losing-the-plot-ometer, Porsche is still at least ten years away from matching this spectacular achievement in short-sighted brand narcissism.
GM earned some goodwill with dealers in recent weeks by reinstating over 600 dealers, most of them rural Cadillac stores. But as always, as soon as one grating issue in GM’s relations with its dealers is resolved, another one appears. Automotive News [sub] reports that GM is seeking five- and six-figure sums from what it terms “a very small” number of dealers who allegedly violated the terms of its Standards for Excellence Incentive program. This might be a relatively normal occurrence, if it weren’t made more complicated by GM’s recent bankruptcy. Because GM audited its dealers before bankruptcy, but didn’t act on the information until now, GM says that its penalties aren’t debatable, and that the normal audit process will not be available to dealers receiving the bills. Read More >
After early versions of the 2010 Mustang Convertible were caught crushing crash dummy heads, Ford re-worked its retro cruiser for a less “mind-blowing” crash test performance. If you’ve got a 2010 ‘stangvertible in mind, you might want to make sure it was built after December of last year.
Just as Toyota has coasted in recent years on a reputation built some time ago, Audi’s latest round of interior-cheapening has gone largely unremarked-upon in the motoring press. Sitting in the new A4, I don’t find myself thinking, as Motor Trend did, that its “high-quality materials and clean, attractive design continue to live up to Audi’s stellar reputation as the industry benchmark.” In fact, the interiors of nearly every current Audi (except the A8 and TT) strike me as cheap, disappointing and monumentally uninspired. In other words, the opposite of living up to Audi’s reputation.
China has become a world automobile producing and consuming power, but it should also be noted that the industry still lacks core technology and has weak innovative capabilities… This creates hidden dangers for public safety
The closest thing Toyota has given to an explicit accounting of its unintended acceleration woes is the admission that rapid growth detracted from the company’s previously unquestioned commitment to quality. With the Chinese auto market growing even faster than Toyota was, the Chinese Central government is anxious to prevent such nasty side-effects of rapid volume growth from manifesting themselves in the domestic auto industry. And well it should be: with Chinese automakers like BYD poised to launch overseas sales campaigns, the Chinese auto industry is at a crucial stage in developing its international image. China’s Ministry of Information and Technology has released a statement [via DetNews] urging its domestic automakers to heed Toyota’s example, and adopt “new technology, new techniques, new equipment and new materials” to master the balance between profit and quality. And hopefully move past the image of hand-assembled batteries and carbon-copy design while they’re at it. Meanwhile, Toyota is feeling the hurt. Stung by calls by the government to compensate Chinese drivers, Toyota-FAW fell from China’s top ten sales list. Toyota China reported a 30 percent rise in sales in February, but at 45,400 units the firm was still way down from its 72,000 unit January performance.
We still own the Ralliart name, and we still intend to brand our cars with it. The biggest change for us is that we won’t have to pay royalties to use the name anymore,
Mitsubishi North America spokesman Maurice Durand explains to Automotive News [sub] why the death of Mitsu-owned racing firm Ralliart is actually kind of a good thing. After all, how many Americans really watch rallying often enough to know or care whether Mitsubishi’s erstwhile rallying partner has anything to do with the cars that bear its name? The fact that the Lancer Ralliart has a two-liter turbocharged engine and AWD is what consumers will notice; using a brand name that leaves no doubt as to the inspiration for the trim level does everything it needs to from a marketing perspective. Whether a team named Ralliart actually races similar vehicles is, in the modern marketing context, almost completely irrelevant. After all, Subaru isn’t even competing in the World Rally Championship at all anymore… the old “win on Sunday, sell on Monday” adage couldn’t be more dead.
Remember Maybach? With eight years and untold millions now spent in a futile attempt to dethrone Rolls-Royce at the tope of the automotive pecking order, it seems that the monument to Daimler’s arrogance and greed will be going the way of Pontiac and HUMMER. Auto Express reports that
The firm plans to launch mildly facelifted versions of its three-model line-up – with new grilles and LED lights likely to be the only changes – before the marque is allowed to slip away.
Bosses have now privately admitted plans to wind down the brand – resurrected in 2002 – due to disappointing sales. The Maybach decision is part of Mercedes’ wider plans to take the next-generation S-Class upmarket.
Will there be any tears for the world’s most pimped-out S-Class? Of course not. Despite actively courting celebrities, and later, actually marketing the brand, Daimler was never able to break its super-luxe brand into the stratosphere of household-name luxury. At least not for more than a few months during relatively go-go economic times. As we recently noted, the experiment has conclusively failed. Maybach has nowhere to go but the ash heap of history. If we ever miss it too much, we’ll be sure to buy a brand-new, fully-loaded S-Class and take it to the least-tasteful tuner we can find.
It’s a little-known fact that nearly half of the 2,000 or so dealer franchises that GM began winding down during bankruptcy were Cadillac stores, most of them located in rural areas. The General’s plan was to focus Cadillac’s dealer network on standalone stores in major metropolitan areas, following the strategies of more premium luxury competitors like BMW and Lexus. But having marked 922 largely small-town Caddy dealers for death, GM saw 2009 sales of its luxury brand fall 15 percent, or twice the rate of Buick and Chevrolet in the same period. The lesson: small-town Cadillac dealers (like attempts to sell the brand in Europe) are worthwhile after all. Automotive News [sub] reports, the majority of those dealers being reinstated are small-town Cadillac dealers. Will Cadillac’s brand integrity suffer by having to serve the small-town American market as well as competing with the European brands? Probably, but at least Caddy dealers can take heart knowing that things could still be worse: they could be Lincoln-Mercury dealers.
Hello Sajeev, I have a question along the lines of the Piston Slap article “Save Me From My X5.” I have a 2007 four door GTI with DSG that I purchased new on October 12, 2006. The car has just about 35,000 miles and the factory warranty is expiring October 12, 2010. I really like the car and would be happy to keep it for a few more years. I’m dreaming of no car payments.
These “electronic defects” apparently discriminate against the elderly, just as the sudden acceleration of Audis and GM autos did before them. (If computers are going to discriminate against anyone, they should be picking on the young, who are more likely to take up arms against the rise of the machines and future Terminators).
McArdle’s graph of incidents by location (parking, freeway, etc) after the jump. Read More >
Chinese battery maker and aspiring automaker BYD earned $215m in the fourth quarter of 2009, bringing its net profit for last year to $555.2m, reports Automotive News [sub]. BYD’s performance outstripped analyst estimates, which projected fourth quarter profits of $130.5m, and full-year profits of $473.2m. Though the Chinese auto market grew 46 percent to 1.6m vehicles, 47 percent of BYD’s 2009 sales came from the firm’s cell phone battery business, which is expected to give back recent gains as the global economic crisis takes its toll. Not so with BYD’s auto business: the firm has raised its 2010 car sales projections 14 percent, with sales of 800k foreseen. And as China’s car market takes off, BYD, which has one of the nation’s best-selling cars in its F3 compact, is expected to keep growing. Says one JP Morgan analyst:
BYD is a company that can’t be underestimated. If the Chinese vehicle market expands 10 percent this year BYD’s sales will grow at least 40 percent — 50 or even 60 percent is also a possibility.
Red light camera refunds will now reach $3.1 million in the city of South San Francisco, California. City officials decided this week that it had no choice but to refund tickets issued between January 28 and March 10 after being confronted by potential lawsuits over the city’s failure to abide by state law.
In January, the city admitted that every photo ticket that American Traffic Solutions (ATS) issued on its behalf between August 2009 and January 28, 2010 was invalid because the city council failed to ratify the contract. The council agreed to refund the tickets, nearly 3000 worth $446 each, and pay for the traffic schools motorists were forced to take. While generous, this move was not enough.
Toyota sales back home in Japan have yet to show a sign of suffering (they were up 49.9 percent in February while the Japanese market rose 35.1 percent.) However, Toyota’s reputation is taking a hit in the Land of the Rising Sun, says The Nikkei [sub]. Depends on how you look at it: 40 percent of Japanese consumers in a recent survey said Toyota’s troubles have undermined their confidence. 58.4 percent said the issues have not changed their opinion of Toyota, 1.4 percent said they now hold the firm in higher regard. Read More >
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