Last Friday, production of the Volkswagen Passat was stopped in Emden, Germany. Not because there aren’t enough customers for the car. There are too many. Read More >

It’s been some time since since we had a “Trade War Watch” on mounting trade tensions in the auto industry, and thank goodness for that. In this economic climate of cuts, currency swings and bankruptcies, what we need are things which will make the situation worse, right? In May I reported about how the EU put a 20.6 percent tariff on aluminium wheels from China. The EU did this in response to complaints from domestic manufacturers. Naturally, this left a sour taste in China’s mouth. Well, over 5 months later, you’d think that the EU would have calmed down and this nasty business would be swept under the carpet, right? Erm, not quite….

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For all its size and big talk about technical excellence, Daimler doesn’t seem to be doing much of its advanced powertrain R&D itself. News that the firm’s future hybrids will be Toyota-developed is joined by the revelation that Mercedes, not GM, is the mystery OEM which has hired Amp Electric Vehicles to develop an EV SUV prototype. AutoSpies reports that

It seems when Mercedes representatives  visited AMP a while back they were so impressed with the [Amp-electrified Chevy Equinox], that they quickly commissioned a ML-350 test mule for further evaluation.   Our exclusive spy photos reveal that a previously unregistered 2009 Pearl White ML-350 bearing manufacturer plates has arrived at AMP’s facility and is currently in the process of electrification by their engineers.  Upon completion this now all electric ML is slated to undergo testing later in the month.

Which is an interesting turn of events for Daimler’s EV partnership strategy. With a $50m stake in Tesla, one might assume that Daimler would turn to the California firm to electrify its ML. After all, Toyota also has also invested $50m in Tesla as well, and Tesla is electrifying a RAV-4 prototype for Toyota. On the other hand, Daimler has not had much luck with its Tesla-powered Smart EV, so perhaps the Germans are diversifying away from the hype-driven Silicon Valley startup. If so, that’s not a good sign for Tesla or Toyota. Watch this space…

Just weeks ago, Amp Electric Vehicles CEO Steve Burns told the New York Times

G.M. doesn’t know if we are friend or foe… They’re trying to figure it out.

What The General was trying to figure out was whether allowing Amp to sell $50k electrified versions of its Chevrolet Equinox is a good or bad thing. After all, if BMW can charge $800 per month for EV-anxious consumers to test its disappointing MINI E, why shouldn’t GM get in on the early adopter-scalping game? Two weeks ago, GM spokesfolks said

We’re pro-E.V., and it’s a good thing that there others out there moving the electric vehicle market forward.

Today, Amp is announcing that it has signed an agreement with “a major OEM” to electrify one of its SUVs… within  60 days, no less. Though the press release doesn’t specify which OEM is sponsoring the project, the fact that AMP exclusively electrifies GM products and hires former GM consultants should speak for itself. And with Tesla prepping an EV RAV-4 for Toyota, would it be shocking to find out that GM is playing the me-too game by commissioning an EV Equinox? On the other hand, maybe we should take the “SUV” label seriously and consider the possibility that Amp is electrifying a full-size GM ute? Either way, the trend towards rapid outsourced development of EVs is seriously starting to take hold…

A few weeks ago TTAC reported how BMW and Daimler revived a long-ago formed  joint purchasing venture in order to help drive down costs for the 2 independent car makers who can’t achieve high volumes of scale. This was seen as quite a big step in a direction few expected. As our resident German put it, “If you think South Korea and North Korea have communication problems, then you should be in a meeting between Daimler and BMW engineers.” He does have a way with words, doesn’t he? But he wasn’t wrong. It’s been a bit of joke to in the industry how Daimler and BMW view each other. As the mustachioed one put it, “Daimler engineers view their colleagues as boorish Bavarian upstarts. BMW engineers think Daimler is a congregation of has-beens.” And you thought relations between GM and Toyota were frosty! At least they had a plant together. Well, it seems that relations maybe thawing between the boys in Munich and the lads in Stuttgart. Kind of… Read More >

DNA India reports that Tata is making a concerted effort to source parts for Jaguar and Land Rover from low cost countries like China, India (duh!) and Poland. DNA’s source for this claim said: “Earlier, Ford used to procure 17 percent from low-cost countries like Poland, China and India, whereas Tata Motors is planning to increase it to 35 percent.” Tata has buys more than just cheap parts. They outsourced low-end design and development work to lower-wage countries. But before you start the “If you thought JLR reliability was bad now…” don’t get too carried away. Read More >

Edmund’ Bill Visnic takes on the latest Harbour report, which finds North American auto plants running at an average of 58 percent capacity (even Europe, the global whipping boy for intractable auto overcapacity operates at an average 81 percent). Despite the recent downsizings across North America, the Harbour Report still estimates that 3.5m units of annual overcapacity remains in the US and Canadian auto manufacturing footprint, equivalent to 14 unneeded assembly plants. A rise in sales levels to the previous 15-16m mark could help the situation according to the report, but increased plant flexibility will be the factor that automakers can actually control. Even so, if 15-16m annual units don’t come soon, North America could be looking at more plant closures and job losses.

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Since taking office in June, UAW President Bob King has ramped up the rhetoric level at Solidarity Hall considerably, as he seeks to portray the union as a defender of the American middle class. But, as the old adage goes, actions speak louder than words… and King’s actions this week couldn’t paint a clearer picture of the UAW’s priorities.
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Just weeks before Chrysler filed for bankruptcy last year, it announced a battery partnership with A123 Systems, which would have provided Lithium-ion batteries for Chrysler’s ENVI lineup of EV vapor. Needless to say, the ENVI program disappeared after bankruptcy, but A123 stuck around and was rewarded with the supply contract for Chrysler’s only prospective EV project, th Fiat 500 EV. Now, the Freep reports that A123 has withdrawn from the Fiat 500 EV project, and its CEO tells Bloomberg that

a competing vendor had been willing to take the business at a lower price and that the program had been “significantly diminished.”

It’s not clear if A123 was upset with a reduction in  planned Fiat 500 EV volume, or if the partnership’s downgrade from a “full line” of ENVI EVs to the 500 EV project represented the unwanted volume reduction. In any case, Chrysler CEO still planns on selling 56k EVs per year by 2014, and it’s strange that A123 would give up that long-term volume opportunity. But, according to A123, another automaker has more serious plans to grow EV volume, and A123 will be concentrating on that partnership. What program is that? Where does this leave the Fiat 500 EV? Is A123 in even more trouble than Chrysler? As usual with EV programs, there are more questions here than answers…

Good news for Chinese parts makers: Volkswagen, by far the biggest brand in China, wants to gradually achieve full localization in China. In regular English: Volkswagen’s Chinese joint ventures plan to locally source all auto parts and components needed to make cars in China, and will stop importing them. Read More >

Legislation aimed at improving the transparency of Technical Service Bulletins (TSBs) has passed the Massachusetts state House of Representatives, and awaits approval by the Senate. If approved, Bill 2517 [full text in PDF format here] would require that

The  manufacturer of a motor vehicle sold in the commonwealth shall  make available for purchase to independent motor vehicle repair facilities and  motor vehicle owners in  a non­discriminatory  basis and cost as compared to the terms and costs charged to an authorized dealer or authorized motor vehicle repair facility all diagnostic, service and repair information that the manufacturer makes available to its authorized dealers and authorized motor vehicle repair facilities in the same form and the same  manner as it is made available to authorized dealers or an authorized motor vehicle repair  facility of the  motor vehicle.

The Alliance of Automobile Manufacturers is opposing the bill, according to the DetN, because it believes the bill is motivated by parts manufacturers who want access to parts in order to reverse engineer and sell them. Literally. And yes, it is China’s fault.

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We finally know who’s responsible for shutting down Nissan assembly lines in Japan and the U.S.A. The shortage of a critical computer chip stopped Hitachi from making ECUs, which in turn stopped Nissan from making cars. For days, the identity of the lackadaisical chipmaker had been kept under wraps. Now, the culprit has been unmasked. Read More >

The shortage of a critical computer chip that Hitachi desperately needs to supply Nissan with ECUs  now threatens to affect U.S. production. Yesterday, Nissan warned that they will close down Japanese assembly lines. Today, Nissan COO Officer Toshiyuki Shiga said that production in the U.S. may be halted until the chip shortage is solved. Read More >

So far, it had been striking workers at Chinese parts suppliers that brought Japanese car makers to their knees, praying for parts needed to re-start the lines. Here is a new  twist: Japan’s Hitachi ran out of chips for ECUs (commonly called “car computers”). And Japanese carmakers are shutting down the lines. Read More >

In a deal to prop up their books, GM is selling more assets to the Chinese. GM sold its Nexteer Automotive steering-parts unit to China’s Pacific Century Motors, a company formed by China’s Tempo Group and the Beijing government’s investment arm E-Town. Read More >