A report about the automotive industry in the BRIC countries, released by the Boston Consulting Group, throws cold water on the low cost production story:
“In manufacturing, companies are generally paying a premium of 5 to 15 percent to manufacture in the BRIC countries, mainly because of diseconomies of scale and higher quality-assurance costs than they incur in the more developed markets; only in Brazil do they actually save money on manufacturing.”
Ooops.
Apart from this astounding revelation, the rest of the report is full of platitudes and comes 20 years too late: Read More >
The Globe and Mail reports that Toronto-based Trillium Motor World has filed a $750m class action suit on behalf of 215 culled Canadian GM dealers. The suit names General Motors and, in an interesting twist, its law firm Cassels Brock & Blackwell LLP. According to a suit’s statement of claim, Cassels Brock was representing Canada’s federal government in bailout talks with GM at the same time as it was representing the Canadian Automobile Dealers Association, a relationship it never disclosed to the dealers. Conflict of interest much? Read More >
Toyota got hammered by another big recall today, with 2.3m vehicles called back for sticking accelerator pedals. According to Toyota’s release, this recall is
separate from the on-going recall of approximately 4.2 million Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.
How much more of this can Toyota take? One thing is for certain: ToMo has got to pull its current ad campaign which emphasizes the alleged quality of Toyota products. Cognitive dissonance might work in the short term but once consumers wise up they’ll never trust you again. Just ask GM.
I’ve just returned from one of the most fruitful CC hunting trips ever; nabbed some awesome vintage finds. But I’m always scanning the road for anything of interest, increasing the likelihood that I’ll eventually rear-end someone. Would anyone else find interest in these three cars parked by the U of O? But repeated patterns like this somehow grab me: same maker, similar vintage, all of them spoiled. Am I losing it? My wife wants to know, because she has her doubts. Read More >
Chrysler/Fiat CEO Sergio Marchionne has a handful of brand management on his plate, as he aligns his two firms for the future. Merging Lancia and Chrysler was an obvious move; creating one full-line brand (albeit with different names from market to market) is a lot better than trying to keep two distinct brands, although even with their powers combined, Chrysler/Lancia is going to have an uphill struggle. With Lancia “taken care of,” the biggest problem on Fiat’s plate is Alfa Romeo, which has reportedly lost €200m-€400m per year for the last decade.
Ford’s fleet business has traditionally been in trucks and full-sized vans, a fact that explains why you’ve never seen an E-Series van in anything other than fleet white. But with residuals on the Ford Fusion staying higher than, well, the Sebring and Malibu, Ford’s recently-refreshed midsized sedan is becoming an attractive fleet option as analysts project a pickup in corporate fleet buying this year. Ford’s Jim Farley tells Automotive News [sub]:
We’re seeing a whole new group of clients come to us saying we want to buy Fusions. We’ve never had that before, at least in the recent past, and that has really grown our commercial fleet business.
Never had this before? Really? What about Crown Vic/Towncar? What about the third- and fourth-gen Taurus? What about the V6 Mustang Convertible that every rental storefront has at least one of? Besides, what happened to reducing profit-sucking fleet dependence? Oh well, something had to replace the Pontiac G6. And if anything kills a model’s resale, it’s heavy fleet sales… if that’s what is drawing the corporate interest, it won’t last long.
A recent test by Autobild sought to find the German-market vehicle that could tow the most kilos per euro. Third place (at€13.36 euros per kilo) went to the AWD 1.6 TDI Golf Variant, which is tow-rated at 1.8 tons on the German market (first and second went to the Tiguan and CR-V). Though the American-market Golf TDI has far more power than Autobild’s value-hauler podium finisher, Volkswagen continues to send tow-rating curious Americans messages like this one:
Thank you for visiting the Volkswagen website. We appreciate your
inquiry regarding the capability of using your Volkswagen for towing
purposes.
Volkswagen does not recommend a passenger vehicle be used to tow.
Bastards! Incidentally, this image is from a post on the British Caravan Club’s voting the Golf 2.0 TDI as “Overall Towcar of 2009.”
I’m in my early twenties, and I’m looking for a car that I can efficiently commute in (about 20 miles round trip) but also take to skiing and camping on the weekend. Efficiency is more important than price, but AWD is a must because I hate messing with chains. Also, I only need room for two people and gear, so no need for a big SUV.
This week saw the Volt’s price point issues return to the public eye, as GM’s Chairman and CEO made it clear that he takes the government’s $7,500 tax credit for granted. But Whitacre’s dissembling revealed once again GM’s fundamental problem with the Volt: getting people past the sticker shock. Though GM’s short-term viability doesn’t hinge on the Volt selling like gangbusters, it’s clear that the Volt’s initial success or lack thereof will be a crucial factor in GM’s ability to hold a successful IPO and extricate itself from government ownership. Which, according to The Big Money‘s Matt DeBord, is one of the reasons the government should expand the Volt’s credit of $10k. Another reason: the Volt’s competition is too good!
with the base Prius selling for just over $20,000 and the base Honda Insight hybrid for under $20,000, the feds may have to start thinking about how to enable innovative electric and gas-electric plug-ins to survive. The EPA mandate to raise fleet fuel-economy standards to average of 35.5 mpg by 2016 looms, and a component of that target should be EVs and plug-ins. Otherwise, carmakers may abandon the tech, leaving it stillborn to cynically massage their fleet numbers by importing small cars from foreign operations to North America—cars they know Americans will only grudgingly purchase and that may force the government to chuck the 35.5 requirement.
As we reported earlier, TTAC is a subscriber to Morgan and Co.’s industry sales statistics. This means that current and detailed stats going back to 1993 are available to us, and we’re going to figure out the best way to share them with you. Like most things in life, there are pros and cons. The detail and amount of information is staggering, but it’s very affordable to us. It will save us time we don’t have to pore over numbers from manufacturers and compile them. But we also have to accept the segment categories as Morgan compiles them, and as you’ll see, there are times that doesn’t always jibe with how we intuitively categorize cars. Frankly, that’s getting harder to do all the time anyway: is the Flex a mini van or a crossover? Morgan sends us Excel spreadsheets and some basic charts. They’re not exactly exciting to look at, which is why we often succumb to spicing up these sales snapshots with a bit of eye candy. We’re going to be playing with different ways to present this stuff, so please let us know what works better, or not. I know you will anyway. Read More >
The extent to which Honda has lost its mojo has been a hot topic in these pages of late. Though the big H has stumbled with Acura, hybrids, design and other crucial areas, one major positive seems to persist: the strength of the Honda name. Which is why it’s so strange to read Bloomberg report that Honda will launch a new brand in China next year. The new brand, named Li Nian meaning “ideal” or “spirit”, will be used for Honda’s new sub-Fit small car, designed to take advantage of China’s reduced tax on engines smaller than 1.6 liters. Read More >
Parts of TTAC were inaccessible due to maintenance in the morning. Our crack Canadian coder crew also found a bug that caused a lock-up after about 20-30 days of heavy use.
If you still have problems (such as pictures not showing,) please clear the cache in your browser and you should be fine. Worked for me!
In 2005, California opened its High Occupancy Vehicle (HOV) or carpool lanes to hybrid drivers, as an incentive for Californians to purchase more fuel-efficient vehicles. Without a stickered hybrid, HOV lanes are only allowed to be used by vehicles with two or more occupants. But this hybrid perk expires at the end of this year, meaning California’s hybrid owners will no longer be able to drive in the HOV lane as a single-occupancy vehicle. In their anger, a few of the estimated 85k HOV pass holders are letting their ugly hybrid superiority complexes hang out for all to see in the San Jose Mercury News’s Roadshow column. One hybrid owner writes:
Some critics had a choice in buying their vehicle. Did you choose to buy a gas hog-pig SUV or truck, BMW 300 series [sic], a Mercedes-Benz E-class or a safety-first Volvo? You knew these cars didn’t qualify for the carpool lane because they are environmentally unfriendly. You made a conscious choice to be self-centered and materialistic and now you all are projecting your selfishness upon hybrid owners
I love the smell of entitlement in the morning… Read More >
Not surprisingly, the decision to close Antwerp is not sitting too well with Opel’s European Works Council. Their reply: Forget the wage concessions you wanted from us, and which are so critical for Opel’s survival.
Management at Opel wanted employees to contribute €265m annually to the cause. The unions were ready to deal, but wanted shares. Reilly reneged on the shares, which raised union hackles. Now, the offer is off the table. And with it, an essential piece of Opel’s future. Read More >
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