A short overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off.

Congress sends Asian stock market to crapper: When Asia heard of the Detroit debacle in Congress, everybody called their broker and placed sell orders. Hong Kong was down 5.5 percent. Tokyo stocks fell 5.56 percent. Hardest hit were autos with Toyota down 10 percent, Honda lost 12 percent, The Nikkei (sub) reports. Investors fled the dollar for the safety of the Japanese Yen. The greenback fell to a 13-year low versus the yen Friday afternoon. This doesn’t make exporters happy, as their wares get more expensive in dollar terms.

Changan stock halted, pending “unprecedented” news. Changan, Ford Motor’s China partner, said on Friday it will continue to suspend trading in its shares “pending announcement of a major issue,” Gasgoo reports. In a statement, Changan did not specify the nature of an “unprecedented” issue, which it said the company’s management was still discussing. Its A shares, traded in Shenzhen, were suspended on Oct 10, a day after news of a possible purchase of Ford’s Volvo unit hit the wire.

Sweden bails out Volvo and Saab: At least for the time being. Sweden’s government approved a care-package of $3.4b for the two formerly Swedish makers, das Autohaus reports. They also reiterate: “Both brands are for sale.” Most of the money will be loans by the European Investment Bank, guaranteed by the Swedish government. Sweden’s finance minister Borg rules out a takeover by Sweden’s government.

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A short overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off.

Volvo soap opera update: Indian farm tractor builder Mahindra & Mahindra denied media reports that they are considering to go for Volvo. Earlier, the Hindustan Times reported that the company was in discussions with private-equity players including Cerberus Capital and Texas Pacific Group to place a joint bid. TTAC didn’t believe the story. According to AFP, Mahindra & Mahindra said they “have to assess how to finance our mergers and acquisitions in times like these.” So the ball is back in China. Or outfield.

Changan expands Volvo range. Unfazed by the discussion about a possible sale of the Volvo mark, China’s Changan announced they want to widen their range of Volvo cars. They refused to comment on a newspaper report that Changan might acquire the Swedish brand. They want to build higher end cars, without naming specific cars, Gasgoo reports.

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German VeeDub dealers want Wolfsburg bail-out: Most of VW’s dealers in Germany are in dire straits. They are looking to Wolfsburg for financial help. “Others can ask for government help, we need the help of Volkswagen and the Volkswagen Bank,” said Michael Lamlé, head of the VW/Audi dealer council to Automobnilwoche (sub.)

Stimulus, Russian style: To protect the nascent Russian car production, and to lure/blackmail more manufacturers into building in Russia, the country has raised its import duty on new cars to 30 percent, reports Automobilwoche (sub.)

Chinese VW workers get German Christmas holidays: Volkswagen’s two joint ventures in China are planning to give their workers 15 working days of vacation from mid-December until the beginning of January, Gasgoo reports.  SAIC will make approximately 20,000 units less. VW’s second venture FAW-VW has similar plans. VW has already sold 931,000 cars in China through to the beginning of December this year and is determined to hit the 1m mark.

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Good morning! Slept well? Here is what happened in the meantime. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off.

Running into a BRIC wall: The emerging BRIC markets (Brazil, Russia, India, China) are running low on gas, The Nikkei (sub) reports. Passenger-car sales in China dropped 10% on the year in November. Sales in Russia declined for the first time since 2002. Sales in Brazil and India are also falling. The Nikkei: “This is bad news for automakers, which had hoped to offset slower sales in Europe and the U.S. with growth in the emerging markets.” TTAC: The BRIC countries will save the numbers of the international automakers for 2008. For 2009, BRIC will be of as much help as an empty BIC.

Japan putting the brakes on BRIC: In related news, Japanese makers are stepping on their BRIC brakes, The Nikkei (sub) says. Nissan postponed the start of operations at a joint venture factory for small commercial vehicles in India. Honda delayed by more than one year the launch of their second plant in India. Toyota is modifying its overall investment plan and may change the starting date for a plant that it is building in China. In Russia, Nissan plans to start a new factory in 2009. Suzuki wants to follow in 2010, Mitsubishi in 2011. The Nikei: “These plans could be derailed by tepid demand.” For the seven Japanese manufacturers of passenger cars, sales in emerging markets totaled approximately $150b in fiscal 2007. Better luck for the Germans …

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The BS has landed, and WAS is back. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Warning: If bad news give you heart or stomach conditions, refrain from reading.

Europe doubtful about bailout: Europe’s MSM says the fat lady hasn’t sung the aria of the bridge loan yet. Even if the Senate manages to finalize an agreement in principle on the $15b in short-term loans, it is “uncertain if it would become law,” Reuters says. “Skeptical Republicans could kill such a measure with a procedural hurdle that would need 60 votes to clear.” Germany’s Spiegel Magazine writes that bickering about the car czar is delaying a decision. The antichrist is in the details. In the meantime, the London Telegraph pours cold water on hopes of a quick turn-around. “The last recession, between 1989 and 1992, had a five-year impact on the car industry,” the Telegraph quotes Professor Garel Rhys of the Cardiff Business School.

Fiat too small to survive, enters dating game: Fiat CEO Sergio Marchionne said his company needs company. They are too small to survive alone, Reuters reports. Marchionne said that only six big players would be left following the crisis, and just one of those would be in the United States. After GM left Fiat in the dust and paid $2b to get out of their contract, there’s not much love left between Fiat and Detroit. As far as China goes, Fiat has made baby steps in joint ventures, but managed to step on toes big time with a commercial in which Richard Gere drove from Hollywood to Tibet in 30 seconds. Following that, Fiat had to “extend its apologies to the Government of the People’s Republic of China and to the Chinese people.”

European parts makers go under: Wagon, one of Britain’s largest car parts makers, “has gone into administration,” the Financial Times reports. That’s what the Brits call their bankruptcy. Wagon supplies car parts to Peugeot, Citroën, Mercedes Benz, Renault, Fiat and Audi. Meanwhile in Germany, TMD Friction went to bankruptcy court. “First large parts supplier goes bankrupt,” Manager Magazine writes. Obvious implication: First of many. As we shall see shortly …

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BS is on his way back from the Fatherland to Beijing. This Sunday will remain WAS-free. WAS will return tomorrow, after BS has returned.  We need a day to digest last week’s news anyway.

Thank God that week is over! Any bets the next will be worse? TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. The night that WAS, week-end edition.

DC turns on drip for Detroit: Congressional Democrats and the White House have reached agreement on emergency aid for US carmakers of between $15bn and $17bn, two senior congressional aides said to Financial Times. “Congressional Democrats and the White House have reached an agreement,” a senior congressional aide said. Another source said negotiators had “agreed in principle to moving ahead but details have to be worked out.” The amount is far less than the $34bn requested this week by GM, Ford, and Chrysler, but it will keep them going into next year.

Going down? BMW and Daimler plummet: Both Daimler’s Zetsche and BMW’s Reithofer definitely said “it was nice having you” to their 2008 targets, Automobilwoche (sub) reports. BMW’s worldwide November sales dropped 25.4 percent. Mercedes-Banz did even worse: 28 percent down in November. BMW had been doing O.K. for most of the year, Jan-Nov they only lost 1.8 percent. Same at Daimler: Jan-Nov minus 4 percent, then the November shock. Worst markets for Daimler are Japan (minus 46 percent,) USA (minus 30 percent,) Europe West (minus 25 percent.) Even in the Chinese growth market Daimler lost more than 10 percent. The November numbers don’t bode well for 2009.

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Too much happening around the globe to let a business trip stop me from reporting it. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Who can sleep with news like that anyway?

Lutz loose cannon, shoots foot, “too good to die:” The folks at RecCen were so busy charging up the batteries for their trip to DC that they forgot to put a muzzle on Czarevitch Bob Lutz. GM selling brands? Fohgeddaboutit, said Bobbie in an interview to the Swiss business magazine Bilanz. It’s all over today’s press in Europe. GM off-loading brands like Saturn, Saab, and Opel? LOL-Lutz had never heard of it. “It’s as trying to remove single eggs from an omelet and put them on sale,” Lutz told the Swiss who choked on their Roesti. Shutting down some brands would be thinkable, but “it would cost one or two billion per brand.” Opel?  Opel is too tightly integrated into GM, and besides, Opel “doesn’t have the critical mass to survive. The idea to separate Opel from GM is a pipe dream.” Comes from someone who said that global warming is a crock of excrement, and that the moon is made of green cheese. OK, made the last one up. The charitable assumption is that the magazine was in print while other announcements were made. On the other hand … Lutzie’s last words: “We are too good to die.”

Uh-oh. Japan to repatriate foreign investments, tax free: The Liberal Democratic Party’s tax panel decided Friday that dividends received by Japanese companies from overseas subsidiaries should be exempt from corporate taxes, “in a bid to encourage Japanese firms to repatriate more capital,” says the Nikkei (sub) this morning. It’s one of those things we usually won’t notice, but we do now.

Chrysler clueless in China. Chrysler has put most, if not all of its Chinese joint venture plans on hold, says Gasgoo. A deal with Chery has been put on ice. Which surprises nobody.

Chinese makers short on cash: Chinese auto makers Haima, Brilliance, and Changfeng said that they need cash urgently. “The listed automakers now have dropped the unrealistic hope of raising capital through the stock market; instead, they are turning to their parent companies or issuing corporate bonds to collect money,” says Gasgoo.

There is more …

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Neither rain,nor sleet,nor gloom of night, our daily round-up of the news that happened in other continents and time-zones must go through. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Note: I’m in Germany on business and will post as time allows. Last night’s news kept me sleepless, so you get WAS on time.

GM and Chrysler ready for ultimate sacrifice. GM and Chrysler executives are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multibillion-dollar government bailout, says Bloomberg. “Staff for three members of Congress have asked restructuring experts if a pre- arranged bankruptcy – negotiated with workers, creditors and lenders – could be used to reorganize the industry without liquidation.” Bloomberg quotes Lynn LoPucki, who teaches bankruptcy law at Harvard: “The Democrats’ goal of preserving a U.S. auto industry is not doable without a bankruptcy.”

China mulls GM’s default consequences: The Chinese government is also beginning to think aloud about the consequences of a possible GM default. Gasgoo quotes Xu Changming, Director of Information Resources Department under China’s State Information Center. He feels, not surprisingly, that “if a global company failed in management in its headquarters, impact will be felt by its Chinese business.” According to the Chinese, Chapter 11 would “have limited effects on Shanghai GM. The technical center built by GM and its partner SAIC will be running as usual.” However, if GM would go C7 “then Shanghai GM couldn’t produce Cadillac, Buick and Chevrolet and GM is likely to sell their 50% share in its Chinese JV.”

Volvo China unfazed, hopes for Chinese buyer: Gasgoo quotes a source at Volvo China that said that production of Volvo cars at the Chongqing plant will not be affected by the possible sale of the brand by its US parent. “Volvo Car’s Chinese partner, Changan Ford Mazda Automobile (CFMA) will start production of Volvo S80 next year, and this plan is unlikely to be affected by the change,” says Gasgoo. They also felt compelled reiterating that Bloomberg had said that an industry insider had said that Chinese automakers are among possible bidders for Volvo. Gotta read between the lines in China. And if that’s not enough …

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This week while your eyes are wide shut: Our daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Note: For all of this week, WAS will either be late, or non-existent. I’m in Germany on business and will post as time allows. They woke me up for the Chinese story, so you get WAS on time today.

It’s official: Saab for sale. Long predicted by TTAC, now confirmed by GM’s Frederick Henderson: Saab will be sold. If no buyer is found, they will be shuttered. Automobilwoche (sub) has the story.

Sweden to bail Saab and Volvo from hell: According to AFP, “Sweden will come to the rescue of its US-owned carmakers crippled by the financial crisis, Saab and Volvo, to secure the future of an automobile industry which accounts for 15 percent of exports.” Details are yet murky. There isn’t much more than a “we want to keep that here and to protect it,” announced by Frank Nilsson, a spokesman for Sweden’s enterprise and energy ministry. Anything akin of a bank rescue package is definitely being ruled out by Nilsson. But he “can guarantee that we will have car manufacturing in Sweden.” Interesting undertones: Volvo is officially up for sale, Saab is, see above, on the block also. According to the report, “no matter who ends up as the owner, the [Swedish] government is committed to supporting the industry.” How? When? For whom? Stay tuned.

Volvo doesn’t want to buy Volvo: Ford bought the Volvo brand from Swedish Volvo Group. Their chairman Finn Johnsson doesn’t want them back. He told Swedish financial daily Dagens Industri via AFP that they are not interested, and that the Swedish government shouldn’t buy Volvo either. Johnsson: “The state knows nothing about the car industry and Volvo needs an owner that can increase sales and cooperate with suppliers on components and development.” He thinks, Renault would be a fine partner. It’s Swedish for “Up urs.”
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Halt! Nothing goes there. Toyota will suspend production in Japan on Dec. 24 and 25. This sounds normal to you? Mind you: They don’t believe in Rudolph in Japan. Toyota will partially halt output of Lexus luxury cars at its Tahara plant in Aichi Prefecture and suspend all production at subsidiary Toyota Motor Kyushu Inc. “It is rare for Toyota to stop all production at a factory,” says an astounded Nikkei (sub.)

Honda submerges emerging market plans: Honda froze a project to raise capacity in Turkey and postponed the launch of its second Indian plant by at least a year, says The Nikkei (sub.) With raised eyebrows, the Nikkei notes that the “cutbacks are now spreading to emerging markets, which are seen as key battlefields for growth.”

European CO2 compromise: The EU member states agreed on a big CO2 compromise for cars, Das Autohaus reports. There will be limits. But not so fast and not so strict. Like in 2012,  only 65 percent of new cars should produce less than 120g/100km of the climate-killer. In 2014 it will be 80 percent. 100 percent in 2015. This is a big walk-back from original plans, and the greens are up in arms. The ruling still needs a formal approval.
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Ok, girls and boys, we are entering the last lap of the year. Prepare for one more month of bad news – then it will be over. The year. A lot of bad news already happened before you had your wheaties: While America Slept is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Buckle up and be safe. (If you don’t like WAS, read the last entry. You’ll find yourself delighted!)

It’s official: Nipponese share US distaste of new cars: Japan Automobile Dealers’ Association published their November domestic sales of new cars, trucks and buses. They (the sales) are ugly: Down 27.3 percent on the year, down for the fourth straight month, and nearly twice as down as in October (-13.1 percent.) According to Nikkei (sub) “auto sales will likely fall this year to the lowest volume in decades on the economic slump that has seen Japan enter a recession.” Expect more bad news “from those wonderful folks who brought you Pearl Harbor.” (Not my bad taste, Della Femina did it!) For instance: The closely watched Japanese golf club index just sunk to 1.77 million yen, down 33 percent from its 2.64 million yen peak in May 2007.

Nissan ready, set, fire! Maybe: In the flak trade, it’s called “softening the blow.” Nissan’s COO Toshiyuki Shiga said today to the Nikkei (sub) “that future sales will determine whether Nissan will need to cut more jobs.” Although Shiga-Sama said it’s too early to predict the company’s personnel strategy, we all know the likely outcome. See above. And there is more …

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Sunday. Even  while God rests, the devils at TTAC perniciously prowl the news. While America Slept is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. Don’t let it ruin your well-deserved week-end.

Deutschland’s dealers found guilty of low car sales: J.D.Power, who’s fighting an uphill battle for the attention of Germany’s auto makers, may just have found the elusive key to their hearts and budgets: “Lack of attention from the salesperson is the most frequently cited non-price-related reason for customer rejection of European premium and volume automotive brands,” Power’s 2008 Germany Automotive Shopper Study says. We see all of Germany’s auto makers write the big checks for the study, and invite J.D.Power to conduct proprietary studies to further prove what auto makers deep in their dark hearts had suspected all along: The downturn is all the dealers’ fault. All dealers need to get fired.

Buick or bust: From the U.K., the Financial Times weighs in on the Detroit debate about D.C. dollar donations: “Congressmen mulling this request might want to visit their local Buick dealership. They should have no trouble finding one, with 2,751 nationwide the last time the National Automobile Dealers Association counted, more than double those selling Toyotas. As a result, only 88 Buicks a year are sold per dealer versus 1,821 for Toyota. Barring Chapter 11, multiple brands and excess dealerships can only be remedied with billions in dealer buy-outs due to state protection, as seen with Oldsmobile.”

Recession? Never heard of it: Honda announced that their production in Japan did set an all-time record for the month of October, The Autochannel reports. Even better, October worldwide production at Honda did set an all-time record for any month. What will they do with all those cars?

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Thank God it’s the weekend-edition of While America Slept. That’s pretty much all we have reason to be thankful for. WAS is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. Or that has its wheels coming off. If you hate bad news, don’t tread it.

Japanese car market commits seppuku: Japanese domestic new car sales are likely to drop by around one-third in November, “raising the odds that the full-year tally will be the lowest since 1974,” writes The Nikkei (sub.) Folks, Japan has it worse than back home, so cheer up! Full-year sales of all types of cars, including mini vehicles, are forecast at around 5.1 million units — the lowest total in 28 years. Japan gave up its rank as the world’s second largest auto market to China in 2007, but remained the world’s second largest producing nation. It is expected to relinquish that rank also to China in 2008. That spells major itai (pain) for Nippon. Soon they’ll complain about exporting all those jobs to gaijin America.

It’s all in the brand: To add insult to injury, China’s Guangzhou Automobile Industry Group (GAIG) announced that its two subsidiaries “Guangzhou Toyota” and “Guangzhou Honda” will be renamed as “GAIG Toyota” and “GAIG Honda.” Harmless so far. Here comes the unusual part: Toyota and Honda will be required to pay for the honor of carrying the GAIG trademark, Gasgoo reports. It used to be the other way. The two brands will be sold through one “GAIG” sales channel. GAIG’s chairman Zhang Fangyou said his focus will “shift to brand marketing.” Of the GAIG brand.

GM says bondage no fun: GM is trying to talk their debt holders into exchanging bonds for stock, the WSJ (sub) says. That would help GM avoid C11. The proposal, along with the daring assumption that doubtful investors will accept it, will make its way into the business plan due in DC on Tuesday.

GM BOD to sacrifice Wagoner? The WSJ (sub) also picked up indications from GM’s BOD that the directors may be increasingly inclined to serve Wagoner’s head on a platter to mollify the angry gods of the Beltway. More than one-fourth of the automaker’s 14 directors have already privately expressed frustration with Wagoner, the WSJ says. COO Fritz Henderson is being floated as a successor.

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How was your Thanksgiving? Get ready for turkey sandwiches, turkey soup and a dose of turkey news from all over the world. While America Slept (WAS) is a daily round-up of the news that happened in other continents and time-zones. TTAC provides round-the-clock coverage of everything that has wheels. And that has its wheels coming off. Soup to nuts, all the news that would be unfit to eat on an empty stomach.

Indian market blows up. The emerging Indian auto industry hasn’t quite emerged yet. Now, it’s getting it in the shins, big-time. After Toyota’s debt rating was cut, “Indian automobile stocks were lower tracking the fall in Asian peers,” the India Times has it. “Due to lower demand, automobile companies have been forced to shut down plants.” Now, shell-shocked investors take their money and go home. “The attacks in Mumbai could accelerate the trend,” the Nikkei (sub) writes, citing Mitsushige Akino of Ichiyoshi Investment who said: “Worldwide economic downturns have historically triggered wars and political instability.” Not what they call an investor-friendly environment. The Mumbai attack is already called “India’s 9/11.” Say ta-ta to Tata for a while. Internationals have advised expats to keep indoors, or better, get out.

Hyundai declares war on Nissan: Speaking of wars, “Hyundai has made its 2009 Accent the cheapest new car on sale in America by lopping $1,100 from its MSRP, so the numbers on the screen now read $9,970“ the LA Times reports. That’s a price-war to the tune of $20 less than the $9,990 Nissan Versa 1.6 – but every penny counts these days. Wars have erupted about less. Considerable fine print applies. Check with your dealer, or the LA Times for details.

Wagoner squeezes Forster, Forster squeezes Opel: GM Europe must wants to save $750m in labor costs at Opel. Forster sent a letter to all workers and announced less work, less pay. Opel’s union boss Klaus Franz signaled to Forster to insert letter in pipe and smoke it. Or choose other dark cavities.  According to Automobilwoche (sub,) Franz asked six questions from Forster, the most salient being “what are your plans to protect the European business from an insolvency of GM?” Franz doesn’t expect any answers. The cosmopolitical Franz even paraphrases Nancy Pelosi: “If you don’t show us the plans, we won’t show you the money.” Wait, it’s getting worse …

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