The Nissan name was first used in 1933, but the company's history goes back much further. Originally known as Kwaishinsha Motorcar Works, the company produced its first automobile, the DAT, in 1914. DAT later became Datsun (son of DAT) in 1931 and Datsuns went on to become the first mass-produced vehicles in Japan. Americans got their first look at the Datsun in 1958 - the 1200 Sedan. The Datsun 240Z was released as a 1970 model and it became the best selling sports car in the world, selling 500,000 units in less than 10 years.
Not long after Fortune’s long time auto writer Alex Taylor III finished his apology to Ford he went on to write a love letter to Sergio Marchionne. Taylor starts with parallels to Ghosn’s myth making success at Nissan, then ups the ante: “The other day in Auburn Hills, Mich., Fiat CEO Sergio Marchionne took a page out of the Ghosn playbook — and then improved upon it.” The impetus for Taylor’s piece was the legendary Power Point Rumble in the Detroit Jungle TTAC’s Edward Niedermeyer reported on with, um, slightly less enthusiasm last week .
Reuters reports that Japanese manufacturers are running scared from Hyundai-Kia. A combination of a rising Yen and South Korea sealing more and more free trade agreements with other countries has helped Hyundai-Kia immensely. Of course, copying Toyota’s business model of building reliable cars at affordable prices has helped greatly, too. All this momentum from South Korea is getting Japanese car executives a little bit nervous. “I think there’s a sense of crisis in the whole (Japanese) industry,” Toshiyuki Shiga, chief operating officer at Nissan Motor. “Whether you take the Free Trade Agreements or foreign exchange policy, I get the impression that South Korea is tackling things well.”
There’s no shortage of analysis hailing Ford’s last-man-standing status, but there’s plenty of buried truth that’s not being brought to light. For example, Ford’s version of Delphi, bankrupt spun-off supplier Visteon. The firm’s non-European and Asian operations have been in Chapter 11 bankruptcy since May, and according to Automotive News [sub], it’s running out of DIP financing. Ford financed the supplier’s first month in bankruptcy, after which Visteon began burning through cash it was holding as collateral for its borrowings. And now that money is set to run out in March, forcing the firm to go hunting for $150m in further DIP financing. Unsecured creditors are objecting, calling the move a power grab by senior, secured lenders who seem willing to lend more money in order to edge out unsecured claims. And while that battle rages on, other OEMs are bailing on Visteon. Chrysler will come up with some $31m to buy back its supply business from the weakened supplier, Nissan is buying its Visteon-run North American interior plants back for $11m, while GM shifted its Visteon business to competitors at a cost of $22m. Ford, Visteon’s biggest customer and former owner is making no such move to abandon its most crucial supplier. If DIP funding comes up short, or if more bumps appear in Visteon’s bankruptcy (or if things continue as normal… Visteon lost $38m last quarter), Ford will face the brunt of the fallout. And with $30b in debt, and no government escrow account to draw on, Ford won’t be able to help out Visteon the way GM rescued Delphi earlier this year.
Oregonians have long treasured the random little collectable objects that Japan’s artisans inadvertently send our way. Usually that takes the form of beautiful hand-blown glass fishing floats that spend years or decades bobbing in the Pacific before a storm washes them on our shores. But occasionally another form of distinctly Japanese objet d’art finds its way ashore, like this Nissan Pao. Read More >
With Tata unable to produce enough Nanos to keep up with demand, more automakers are gunning for its entry-level segment. Renault-Nissan is teaming up with its Indian-market partner Bajaj to produce a car that’s even cheaper to produce than the Nano. “I can tell you the cost of this car would be lower than any car today made in India,” Renault-Nissan CEO Carlos Ghosn tells Gasgoo, adding that a lower production cost wouldn’t guarantee that the new car would be priced lower than Nano. The Renault ULC, as the low-cost car is being called during development, will be available in India in 2012, by which time GM and Toyota could have competing models on the market. Ford’s recently-announced Indian market low-cost car, based on the discontinued previous-generation European Fiesta, will be positioned above the Nano. And that strategy also appeals to Honda. The Motor Company tells the WSJ that rather than competing directly with the lowest-cost segment, a sub-Fit (Jazz, as it’s known globally) hatchback will be introduced around 2012 to compete with Ford’s model. The Jazz/Fit currently sells for about $15,000 in India, leaving a huge window between there and the Nano’s approximately $3,000 price price tag.
Hybrid sales in October outpaced the market, increasing 11.4% over October 2008. The heavy lifter as usual, was Toyota, up 15%; Toyota’s hybrids now represent 77% of the total US hybrid market, which is 2.9% of the total market. The Prius continues to dominate the whole hybrid sector, with a 55% market share, and sales of 13,496 units. Prius outsold the Honda Insight by an 8 to 1 margin. Read More >
Thanks largely to stimulus programs in the US and Europe, Toyota announced that it has eked out an operating profit of 58 billion yen instead of the average estimated loss of 63 billion yen from five analysts. Toyota now is forecasting a lower operating loss of 350 billion yen ($3.9 billion) for the year through March 31, and is presumably on track to a profitable following year. But with the stimulus programs’ end, Toyota continues to hunt desperately for cost savings, like its recently announced elimination of the F1 program, which cost a tidy $300 million per year. Read More >
Edmunds, the site that’s so not going to be sleeping in Lincoln’s bedroom, has revealed their estimates for October sales incentives. Not surprisingly, the automaker that’s been hogging Honest Abe’s pallet and has been missing saying, “we’re number one [globally],” can claim this number one spot. GM spent $4,277 of somebody else’s dollars per unit to move the metal and help buy that 4% sales increase. Hey, don’t complain—they can afford it unlike those wimpy little guys at Honda, who could only cough up $508 per unit. What’s wrong with them anyway? Oh, they’re actually profitable. OK. Moving right along, let’s check in with the rest of the gang: Read More >
We’re a little short-staffed right now (always?), the boss is on the road, and I’m a little bleary from my first day at the helm, so instead of staying up all night building spreadsheets,I’m going to give all you number junkies the links to the various companies’ press releases and their own detail tables and charts. Please share your thoughtful analysis with the rest of us lazy bums.
A TTAC reader who wishes to remain anonymous writes:
I have to buy a 2nd car to be used mostly in the city with short highway trips, my problem is that I have a budget of $7,500.00 since a car payment is not an option at this time.
Clear title, no accident, reasonable mileage and low maintenance cost are high priority, after 2 weeks of detailed search over the internet, I’m down to three cars that I never thought I would be thinking about: 2007 Ford Focus Sedan, 2007 Nissan Sentra and (believe it or not) a 2007/8 Dodge Caliber. The mileage I have seen on this budget varies from 18,000 up to 45,000 miles. By the way, some cars don’t have power windows, which was a shock for me and almost a deal breaker, however, some of these cars have the best mileage and lowest price.
We’ll give you the quick top-line October ’09 vs. ’08 results, and get the details as soon as I catch my breath:
Toyota and Honda sales were both less than 1% changed. Nissan had a 6% boost. Mazda slid 8%. Suzuki was off 50% (in the middle of major product cycle changes).
Stabilization is the word of the day but at still low levels.
[Update]: Mitsubishi joins its other co-declining Japanese soul-mate, Suzuki, with a 48% drop in October.
Comments to last Tuesday’s Curbside Classic pointed out the lasting stylistic influence of the BMW 6 Series on such cars as the Acura Legend coupe. That reminded me of this out-of-focus shot I took of a 1990 Infiniti M30 last winter. I try to stick to cars 25 years and older anyway, but this is a car that has really fallen off the radar, as well as my camera’s auto-focus function. The M30 was a left-steering version of the Nissan Leopard, which in turn shared its platform and basic configuration with the legendary Nissan Skyline R31. Performance was quite another story: the M30 had a 162 hp version of the Nissan 3 liter V6, and came only with an automatic. Given its weight of 3330 lbs, performance was modest. But with the availability and interchangeability of Skyline and Nissan 300Z turbo components, the M30 is the easiest way to end up with that unique JDM-Skyline look on these shores.
President Obama started a trade war by slapping a 35 percent punitive tariff on imported tires as a big “Thank you” to his friends at the United Steelworkers. Most industry observers think this was mentally challenged exercise: Production of cheap tires will be shifted to other countries. Not a single US job will be created. Jobs will be lost and consumers will have to pay more.
The war is not going away. As a matter of fact, it is heating up. Not only did China lodge a formal complaint to the WTO. China has told the United States it is launching a trade investigation that could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors, a U.S. industry official confirmed to Reuters.
The action will leave no happy faces with U.S. Commerce Secretary Gary Locke, Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack, who are in China right now for high-level talks aimed at resolving trade disputes between the two countries. Read More >
Because of an unusual concentration of radio and television broadcast antennae in and around the Detroit suburb where I live, just about every car company and automotive electronics vendor that does business in North America tests their cars for resistance to radio frequency interference in my neighborhood. Ford in particular seems to like the testing location – it’s only 20 minutes from Ford facilities in Dearborn and convenient to do worst case real world testing.
The Chinese car maker Great Wall Motor, a Hong Kong-listed Chinese car company, is suing Fiat in China for industrial espionage. According to the Financial Times, this in “an apparent response to an Italian court ruling that Great Wall copied a Fiat car model.”
Last year, Fiat sued Great Wall both in Italy and in China for copying the Fiat Panda, which Great Wall sells as the Peri. Read More >
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