BMW is playing some PR roulette  at the DC Auto Show [via Autoblog Green] with a “study” ostensibly proving that people who lease an electric MINI are “delighted” with the car. As if self-selection weren’t already an issue in a study of people who voluntarily spend $850 per month on a small hatchback, the 57 respondents (out of 450 MINI E guinea pigs) were (you guessed it) self-selected. Why the University of California Davis allows its name to appear on this blatant PR fabrication is difficult to fathom. Especially considering the MINI E rollout was a disaster, the product was compromised, and there are plenty of MINI E critics out there.

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Walking around some blocks of the student neighborhood near the University of Oregon on a gray winter’s day can be as depressing as recalling much of GM’s decline and fall products from the seventies on. It’s a sea of dull and cheap apartments already looking shabby and run-down rental houses, fronted by waves of drab colored hand-me-down Toyotas, Nissans, and the like. But every so often, a cheery sight appears, like this cherry-red 1979 Malibu coupe. It’s there to remind me that GM was still able to hit a few high notes while cranking out Vegas, Monzas and Citations; and that it hadn’t yet totally forgotten the magic formula that it first hit upon in 1955 and reprised with the ’64 Chevelle: a trim and tidy RWD coupe weighing about 3,000 pounds and powered by the SBC V8. Quite the mood elevator indeed. Read More >

It goes without saying that it’s always good news for a business to be able to raise hundreds of millions of dollars on the financial markets. Just as important as the financial boost, such capital-raising also raises the profile of the company, presenting it as a viable investment and implicitly endorsing its underlying business plan. In the case of Project Better Place’s recent $350m funding boost however, the benefits might be largely limited to the firm’s balance book. Heavy participation by HSBC, Lazard and Morgan Stanley do help raise Better Place’s profile, but HSBC and Lazard are the only new investors in this most recent round of financing: Morgan Stanley, IsraelCorp, VantagePoint and other previous investors make up the rest of the round. This speaks to a fundamental challenge underlining Project Better Place: broadening, rather than deepening its appeal and support.

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Here is an interesting facet of the “the Chinese car market is bigger than the American car market” meme:

In 2009, Japanese automakers have, for the first time, built more cars in China than in the U.S. reports the Nikkei [sub]. Says the paper: “Of the eight Japanese passenger carmakers, six manufacture vehicles in China. Their aggregate Chinese output came to roughly 2.25 million units in 2009, exceeding the 2.1 million produced in the U.S.”

Which pours cold water on the often voiced theories that people base their car choices on ethnic prejudice. Japanese people are not necessarily hugely popular in China. Japanese cars are. Read More >

The Datsun 240 was as a true revolutionary, smashing the long-stagnant sports car market of the sixties into smithereens. It was long overdue too; folks were getting cranky for the messiah: a truly modern sporty two seater with four-wheel independent suspension, a zippy OHC six engine, dazzling styling, all served up at a reasonable price; say $3500 (about $20k adjusted). The hole in the market for such a car was begging to be filled. And Datsun stepped up and delivered, with a grand-slam home run. But like most revolutionaries, the Z was anything but truly original. But then neither was Che nor Lenin; they studied Marx. And Datsun? They took their studies seriously too.

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Former Tesla PR man Daryl Siry’s Wired.com Autopia columns are always good for some interesting insights on the EV world… as long as you take them with the grain of salt that Siry’s status as “advisor” to EV startup Coda Automotive demands. This week Siry has it in for the mass-market EV frontrunner, the Nissan Leaf, accusing its makers of “cutting corners” and “overpromising” range specs. According to Siry:

First, Nissan overpromised on the realistic range by consistently quoting a number tied to the most optimistic benchmark, the LA4 cycle. Drivers who stick to stop and go traffic on city streets in temperate climates may indeed consistently see 100 miles of range, but most drivers will see significantly less in a mix of city and highway driving. Driving in California, the country’s top market for electric vehicles, involves a lot of time on highways where the 65 mph speed limit is rarely observed. The LA4 cycle Nissan quotes mostly stay below 30 mph with one two-minute “sprint” at 55 mph every 22 minute cycle.

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Denmark is keen to show the world, especially after the Copenhagen Conference, that they mean “green.” Denmark is setting up an infrastructure to support electric car recharging, however the other side to this grand scheme are throwing their toys out of the electric car. The Copenhagen Post reports that Renault are threatening to withdraw the electric cars which they were supposed to supply to “Better Place”, the company monitoring the installation of the electric car infrastructure. The reason behind this shocking behaviour (see what I did there?) is that Renault believe that the Danish government are not giving enough favourable car tax breaks to electric cars. The government’s policy is to give electric cars exemption from normal vehicle registration tax of 180%* until 2012.

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Collisionrepairmag.com reports that AzkoNobel, a chemicals company from the Netherlands, has teamed up with Toyota to create Sikkens Autoclear LV, a scratch resistant, self healing clearcoat. The product has been approved by Toyota for use on the Lexus LS range as an aftermarket clearcoat to be used at Toyota dealerships and Toyota affiliated collision repair facilities around the world. According to the article, “Sikkens Autoclear LV Exclusive is highly resistant to scratches, and holds up extremely well after repeated washings, but it truly differentiates itself from other clearcoats with its outstanding self-healing characteristics when a vehicle is nonetheless damaged. With extraordinary “re-flow” properties designed into the coating, small scratches virtually disappear in minutes when exposed to a heat source at temperatures ranging from 40-80 degrees celsius–and even exposure to the sun will initiate the healing process.”

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Optimism is a rare commodity in the auto industry these days, and nearly all of it comes from the so-called BRIC nations of Brazil, India, China and (to a lesser extent) Russia. India in particular is being targeted as one of the few growth opportunities for the industry’s global players. Nissan/Renault, Volkswagen, Honda, Ford and GM have all recently announced major initiatives to target growth in India’s entry-level market, and GM even gave up control of its Chinese operations in order to beef up its Indian presence. But, as the Hindu Business Line reports, India could be staring down the kind of overcapacity that is causing so many headaches for automakers in mature markets.

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Toyota plans to roughly double its global production of hybrid vehicles to 1 million units in 2011. On the surface, this plan doesn’t sound too ambitious. Hybrids are flying off dealer’s lots in Japan. About 350,000 hybrids were sold in Japan last year, accounting for 11.9 percent of total sales. Toyota’s Prius took the lion’s share with 209,000 units sold. Honda’s Insight made up for another 94,000 units. Less that 50,000 were “others.”

And herein lies problem number one for Japanese hybrids: Read More >

Almost exactly a year ago, we heard that Ford wouldn’t be developing a global RWD platform in Australia.  That came as sad, but obvious news back then… but check it out: Motor Trend just got a hot “scoop”!

Under the global rear-drive platform plan, the 2014 Mustang was to have shared its basic architecture with the next generation Australian Ford Falcon, and possibly a new flagship sedan for Lincoln. The Mustang would have been on the short wheelbase version of the platform, the Falcon on the mid-wheelbase, and the Lincoln on the long wheelbase. But that strategy has changed…

…By the time a new rear-drive Lincoln could appear, the Town Car will have been out of production for three to four years, and with high gas prices in Australia, no-one expects major growth in Falcon sales. These factors taken together seem to have conspired to torpedo the global rear-drive platform. “The [next generation rear-drive] Falcon is dead,” said one Ford insider bluntly, in apparent confirmation.

Shocker! The problem is that Ford’s just released a new Mustang, meaning the current model will be a bit long of tooth when the nameplate’s 50th anniversary rolls around in 2014. The good news? Motor Trend’s “scoop” isn’t that Ford will be slapping together a “very special edition” consisting of paint, wheels, badges and certificate of authenticity.

The bad news?

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Is this the most reliable car ever built? There are at least two very different but highly reliable  sources that suggest it may well be. One is of course its owner. And as we know all too well, one car does not make a proper sample size. But the other source does: ADAC: it has a virtual monopoly on responding to any and all breakdowns in Germany, sort of an Uber-AAA. Starting in 1978, in classic Germanic fashion, it fastidiously compiled Pannenstatistik on every Panne that ever stopped a car in the Vaterland. And the results? Let’s just say that at a time when Mercedes was considered the paragon of unstoppable German solidity and reliability, the Starlet smashed right through that reputation and drove the big-wigs in Stuttgart bonkers. Read More >

Japanese car manufacturers, reeling from a doubly whammy at home (down 9.3 percent) and in the U.S.A. (down 21.2 percent) are looking increasingly to growth markets such as China (up 45 percent) and India (up 18.7 percent.) Large players like Nissan, Honda and Toyota in China, and Suzuki in India, have been there for years. Now there is a virtual stampede. A collection of news from today’s Nikkei [sub]: Read More >

Remember how GM brags that they are the largest auto manufacturer in China? CAAM, the China Association of Automobile Manufacturers says otherwise (via Gasgoo.) Here is the official CAAM list of the 10 largest passenger vehicle manufacturers in China, and their units sold in 2009:

1. Shanghai Volkswagen Automotive Co: 708,100 units
2. FAW-VW Automobile Co Ltd: 669,200 units
3. Shanghai General Motors Co Ltd: 668,200 units
4. Beijing Hyundai Motor Co: 521,000 units
5. Dongfeng Nissan Ltd: 459,300 units
6. BYD Co Ltd: 448,400 units
7. Chery Automobile Co Ltd: 409,300 units
8. Guangqi Honda Automobile Co Ltd: 337,200 units
9. Tianjin FAW Toyota Motor Co Ltd: 334,700 units
10. Geely Holding Group Co Ltd: 329,100 units

Taken into account that VW makes their Chinese cars with two joint ventures, SVW and FAW-VW, Volkswagen’s  combined total rises to 1,377,300. The imported VWs bring the number well above 1.4m . Read More >