An 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. WAS is being filed from Beijing until further notice.

GM/Opel ready to deal: As some kind of bankruptcy for GM becomes more likely by the minute, The General has signaled its readiness to consider some kind of a third party engagement in Opel. “If it makes sense and helps to make GM Europe and Opel successful, then the management is ready to entertain partnerships with or equity engagement of third parties,” GM Europe President, Carl-Peter Forster; Opel CEO, Hans Demant; and the Chairman of Opel’s Worker Council, Klaus Franz, said in a joint announcement, Automobilwoche [sub] reports. They did not elaborate whether this means an engagement by other manufacturers or an engagement by Germany’s state and central governments. In the meantime, Chancellor Angela Merkel is still waiting for Opel and GM to do their homework and hand in a viability plan: “Right now, the government cannot act because we don’t have the necessary concepts from Opel,” Frau Merkel said.

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Ford’s Volvo has been on the block–excuse us, “strategic review”–for a while now, both unofficially and officially. So far, the flirtations with possible suitors resembled dating tours to the Philippines or Russia. A little petting, and then nothing. Now, finally, there are indications that the dalliances may enter the terminal phase: Either Ford gets a signature from a willing buyer or Volvo will be terminated. Extra urgency has no doubt been lent by the Swedish government which told GM (and by implication, Ford) not to expect a single öre, and to get on with it, or get out.

The Swedish paper Dagens Industri yesterday carried a report that there are four serious suitors for Volvo: China’s Changan, China’s Dongfeng, and–surprise–France’s Renault. As the dark horse, there is an ominously unidentified suitor. For those who have a problem understanding Swedish, Bloomberg carries a pretty good summation of Dagens Industri’s report. Ford and Volvo met with their investment bankers in London this past week, and the candidates were deemed “serious” enough to be allowed to see confidential information about future Volvo Cars models, says Dagens Industri.
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Every now and then the mainstream automotive press gets its inner TTAC on. Normally, those moments are reserved for vehicles that A) don’t advertise very heavily and B) don’t advertise very heavily. To be fair, the Nissan GT-R doesn’t advertise very heavily. So it’s fair game for USA Today carmudgeon James Healey. You may recall Healey’s previous work, in which the scribe often sounds like he’s holding a conversation with a PR flack– with Healey playing both critic and spinmeister. (Except when he actually quotes the manufacturer’s rep.) In this case, we get less prevarication, more kvetching. 

But, c’mon, for a starting price of about $77,000, shouldn’t the power-window switches and the inside door handles be easy to reach? Shouldn’t the high-falutin’ dual-clutch transmission engage more gently than a whack in the back by a Caterpillar D9? Or the shift lever move toward the words “manual” and “automatic” to choose your mode instead of going one way only? Shouldn’t the outside door handles be easier to grab and yank?

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Yesterday, we relayed a Reuters report that SAIC might buy out the Chinese part of GM, that GM might take the money and bail. Today, true to form, the denials arrived. Again according to Reuters, GM says they have no plan to sell shares in its joint venture SAIC. This according to Henry Wong, a spokesman for General Motors China. Reuters is positive that GM held talks with SAIC Motor about selling part of its 50 percent stake in the joint venture, or other assets.  As if on cue, GM’s plan to enter a joint venture with SAIC’s competitor FAW received new traction today. The plan had been on hold for a while.

In the meantime, the speed dating game between Chinese companies and desperate Detroit companies who want to swap their corporate children for cash continues. Today on the radar screen, again: Volvo.  Reuters has picked up indications that Chinese car maker Chery Automobile has held talks with several European auto brands, including Ford’s Volvo, and is interested in an acquisition. What is interesting is that Gasgoo didn’t simply reprint the Reuters report.

They added their own story, in which they quoted the man himself, Yin Tongyao, CEO of Chery as saying Chery would not rule out the possibility of buying a troubled European auto brand, and that “Volvo is believed to be one of the choices.” Now that’s something else.

Gasgoo added that Chery received a 10 billion yuan ($1.47b) loan to fund its global growth from Export-Import Bank of China last December. “We were also granted the flexibility of a credit line by the bank,” Yin added. Knowing that Gasgoo is owned by Chery is adding extra credibility to that story.

“Volvo is the most solid brand compared with other brands the Detroit automakers have put up for sale,” said Yankun Hou, industry analyst with Nomura International. “It could be a big help for Chinese automakers who lack core technology but seek to climb up the ladder.”

As for Chery’s credit line, Nomura’s Hou said: “I think Chery is able to get more money if it will indeed go ahead with a bid for Volvo.”

Chery is one of China’s most aggressive exporters. They have sold their self-developed cars to more than 50 countries, mostly in the developing world. Chery’s been seeking to tap mature markets. An established brand, especially one with a strong safety cachet, might perform miracles on Chinese offerings.

According to Reuters, “the tables have turned for Detroit’s automakers.” Earlier this decade, GM, Ford (kind of), and Chrysler (haphazardly) scoured Asia for automotive bargains, capitalizing on the region’s financial crisis to snap up assets at fire-sale prices. Lately, especially GM used China’s growth machine to make their anemic numbers look good.

Now, Detroit automakers have reached out to Asian automakers to sell their unwanted and unloved brands. “They could be the buyers of last resort, the only ones left with a good bank balance, for now,” said Larry Rinek, automotive consultant at Frost & Sullivan.

“There is also a good chance the overtures will fail,” says Reuters. “The global recession, tight credit and sinking auto sales make any auto asset an extremely tough sell, and Asian automakers have also been forced to scale back production and investment.” But it doesn’t keep them from trying. According to Reuters, Ford has reached out to several Asian companies including Hyundai, SAIC, Geely and Chongqing Changan Auto, about its Volvo brand.

Executives of Kia, led by Kia President Eui-sun Chung, have had discussions with GM over the Saab premium brand.

Last year, Chrysler talked to companies including Renault-Nissan and Hyundai about its Jeep brand or other assets before reaching a pending deal with Italy’s Fiat.

GM and Ford say they have had contact with potential bidders for Saab and Volvo, respectively, but have declined further comment.

In addition to Saab, GM is trying to sell its Hummer SUV line and is reviewing its Saturn brand. Chrysler claims it has three bids for its Viper sports car business.

Reuters: “The wide-ranging talks between Detroit automakers and their Asian counterparts show how the balance of financial power has shifted in the industry over the past decade.”

Things got so bad that Chinese companies may even get what they want for a price every Chinese company would love: “With private equity firms in retreat, analyst say the industry’s distress has opened the way for more transactions that could involve little or no cash,” says Reuters, reminding the world of the deal between Chrysler and Fiat.

Surprised? Neither are we. From the moment Chrysler execs mooted a Nissan hook-up—a moment born of Congress-appeasing desperation—we heard rumblings that it wasn’t gonna happen dot autoextremist. Our sources in The Volunteer State volunteered the information that nothing was happening, Nissan-wise. Again, no surprise. If the Nissan will build us a competitive car (’cause we don’t have a fucking clue, mate) and we’ll sell ’em Rams to rebadge as Titans deal was going down, Chrysler wouldn’t have floated il madre of trial balloons known as the great FIAT giveaway. Still, as any good Catholic automaker knows, confirmation is a big moment in a bogus story’s life. Although they were happy to repeat the propaganda without question at the time, Reuters rocks!

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With the third deadline for Detroit’s viability plans rapidly approaching, President Obama needs something, anything, to work with. “My goal, consistently has been to offer serious help once a plan is in place that ensures long-term viability and that we’re not just kicking the can down the road,” Obama tells Reuters. “What the nature of what that help ends up looking like, I think is going to depend on the plan.” And at first blush, Detroit’s task appears to be an easy one: tell the President what you need to survive and he’ll give it to you. But there’s a catch. “If a plan is presented to us premised on 20 million sales when we just know that’s not going to happen, then we’re going to have to ask them to go back to the drawing board,” says Obama. Seriously though, isn’t a plan premised on 10m sales this year a bit overoptimistic?

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An 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. WAS is being filed from Beijing until further notice.

HUMMER sold to China? General Motors Corp., working to sell assets to help keep $13.4b in US loans, has drawn interest in its HUMMER brand from a Chinese company and a private-equity firm, says Bloomberg [via Gasgoo]. The pace of negotiations has intensified in the past few weeks, said the people, who wouldn’t name the suitors and asked not to be identified because the discussions are private (so there). More meetings are scheduled this week. According to Bloomberg, “unloading the sport-utility vehicle unit would move GM closer to the goal of showing its future viability to the U.S. Treasury by Feb. 17. If the biggest US automaker can’t prove its ability to return to profit, it could be told to give up the loans or use the cash for a government-funded bankruptcy.” Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, estimates Hummer might fetch $100m or less.

Fallout in Japan: The major production cuts being implemented by Japan’s carmakers are beginning to seriously hurt the finances of their parts suppliers, the Nikkei [sub] writes. Autoparts suppliers and other firms in the industry employ a total 670k workers in Japan, nearly four times as many as those working at domestic carmakers. Says the Nikkei: “If many of them fail, the industry itself could become unsustainable.”

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An 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. WAS is being filed from Beijing until further notice.

Japanese bondage: Toyota plans to procure 100 billion yen or so by issuing about 50 billion yen each in five- and 10-year straight bonds as early as this month, the Nikkei [sub]. The issuance of straight bonds will be the automaker’s first since September 2002. The rating on Toyota’s long-term debt has been downgraded by both Moody’s Investors Service Inc. and Standard & Poor’s, each by one notch from the highest grade. This sets Toyota apart from other automakers who are treated by banks like lepers.

Nissan going for greener pastures: Nissan’s Carlos Ghosn talked up plans for mass-producing electric cars in the U.S., Europe and China, the Nikkei [sub] reports. Chief Operating Officer Toshiyuki Shiga admits that he would like to see Nissan’s electric cars made in Japan. But with the financial crisis crimping Nissan’s ability to raise capital, the US and Europe, which have introduced subsidies for environmentally friendly cars, are more attractive venues. Nissan would be the first Japanese automaker to apply for the US government’s 25 billion dollar program of low-interest loans to develop green cars.
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Nissan’s Cube goes on sale this May, and a Nissan Press Release states that a base 6-speed version (what, you wanted the CVT?) will start at $13,999. And even though only 122 hp are on offer fom the Cube’s 1.8 liter four, even a loaded CVT version will weigh less than 2,900 lbs. There’s also something about an expensive special Krõm (Krôm? Kröm? Krøm?) edition. Specifically, “for those consumers that love the cube but are looking for a little something extra, the cube Kr?m (sic) offers that and then some.” Duly noted. But the nausea-inducing corporate enthusiasm doesn’t stop there. “It’s unique, it’s fun, it’s functional, and it makes being “square” hip again,” bubbles Nissan’s Al Castignetti of the cubist wonder. Translation: the Cd rating is 0.35. More pricing, model info and well-compensated enthusiasm to come.

An 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. WAS is being filed from Beijing until further notice.

Nissan’s no-hitter: After announcing an expected loss in the current fiscal, Nissan will suspend corporate sports activities, including its standout baseball team, the Nikkei [sub] reports. Nissan’s ball club, which was founded in 1959, has won corporate championships and produced a string of professional baseball players. Also to be sidelined is Nissan’s table tennis team, which also dates back to 1959. Its most recent stint atop the winner’s podium occurred in 2007. The table tennis and track and field teams will be disbanded at the end of next month. All eyes are on Toyota and whether they will ditch their vastly more expensive F1 team. The rumor mill says they will stick with it for the now.

Nissan goes for green green: Nissan has applied for low-interest loans being offered under a US government program aimed at promoting the development of environment-friendly cars, the Nikkei [sub] says. This is the first time a Japanese carmaker has applied for the 25-billion-dollar program. One of the conditions for qualifying for the federal loan program is that the applicant has been operating facilities in the US for an extended period of time. Nissan intends to apply for similar aid programs for developing environment-friendly vehicles in Europe and China.

Cheaper hooch: One of the many problems of bio-ethanol is that it’s expensive to make. Toyota, Nippon Oil, Mitsubishi Heavy and three other firms will jointly develop technologies to produce cellulosic ethanol from nonfood plants. By bringing together their know-how in such fields as plant cultivation, glycation and fermentation, they hope to develop a comprehensive production system and bring down production costs to around 40 yen ($0.44) per liter by 2015, says the Nikkei [sub].
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An 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. WAS is being filed from Beijing until further notice.

Nissan sees red: Nissan cut its earnings outlook, saying it now expects a consolidated net loss of 265 billion yen for the year ending March 31, the Nikkei [sub] writes. The automaker earlier forecast a net profit of 160 billion yen, down 67 percent from the previous term. Nissan downgraded its sales outlook to a 23 percent fall. The carmaker also projects an operating loss of 180 billion yen, tumbling into the red for the first time in 14 years, in a sharp reversal from the 270 billion yen profit, down 66 percent. Nissan will cut 20,000 jobs in Japan and abroad by the end of March 2010, bringing the total payroll down to 215,000 employees. This is the first loss since fiscal 1999 when current President Carlos Ghosn became chief operating officer after Nissan formed an alliance with France’s Renault.

India keeps going down: India’s domestic car sales fell for the fourth straight month in January. Sales fell 3.2 percent in January, the Nikkei [sub] reports. They were down 7 percent in December, 19 percent in November, 6.6 percent in October, 4.4 percent in August, and 1.7 percent in July. Only in September 2008, sales rose 2.8 percent.
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An 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. WAS is being filed from Tokyo this week. There will be no WAS on Sunday while we re-locate to Beijing.

Isuzu sees red: Isuzu posted net losses for the October-December quarter due to weak domestic truck sales, a stronger yen and higher material costs, the Nikkei [sub] reports. Net losses were ¥11.7b in the three months ended Dec. 31, down from a profit of ¥24.4b a year earlier. Sales dropped 21 percent to ¥340.4b in the quarter, down from ¥430b a year ago. On an operating basis, Isuzu lost ¥1.6b, compared with a ¥28b profit in the quarter a year before. For the full fiscal year ending March, Isuzu lowered its outlook to a loss of ¥15b.

Yen for govt. yen: Japanese auto makers are scrambling to raise cash before the end of the fiscal year in March, the Nikkei [sub] says. Nissan is considering applying for the low-interest funds, Isuzu said Friday that it may do the same to raise several tens of billions of yen. Mitsubishi Motors is also considering tapping the Japanese government program.
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An 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. WAS is being filed from Tokyo this week.

Geely doesn’t want Volvo: China’s largest privately owned carmaker Geely has denied reports that it is acquiring the Volvo car unit from Ford Motor Co, China Daily reports. Ford has also approached Chery Automobile Co and Chongqing Changan Automobile Co. Li Chunbo, an analyst with CITIC Securities Co in Beijing, said when a Chinese enterprise attempts to acquire a foreign rival it has to consider how it will benefit from the deal and whether it is capable of dealing with the purchased unit. “When you compare the market value of Geely and Volvo, you will ask how can Geely raise enough money to buy the European car brand,” he said. If this goes on much longer, not much money may be needed.

La bella clunker culleria: Italy is hopping on the European clunker culling bandwagon. Italian consumers will be given six months to go out and buy a new car under a “strong package” of incentives that Silvio Berlusconi’s centre-right government expects to approve today, Financial Times reports. The package would provide possibly up to €1,500 a car, to exchange models at least 10 years old for new, relatively small cars. The government would also provide credit guarantees to banks to finance purchases. The incentives are not limited to Italian cars, but the conditions attached—small capacity and least polluting—“would clearly favor Fiat,” the FT says. Protectionism, with style . . . .
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An 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. WAS is being filed from Tokyo this week.

India‘s car sales up: Just like neighbor China, India reports rising cars sales for January. Most car companies registered positive sales despite the withdrawal of price rebate schemes, India’s Economic Times reports. Tata Motors continued its negative run, with its passenger vehicle sales declining by 9 percent.

Toyota losses spreading: Toyota’s parts arm Denso and four other Toyota Motor Corp. affiliates are expected to suffer group net losses for the year ending March 31 as the automaker’s drastic output reductions battered businesses along the supply chain, the Nikkei [sub] writes.

Hitachi lowers volume of auto biz: Hitachi considers cutting in half the number of 85 marketing and production sites handling automobile-related equipment, the Nikkei [sub] says. Hitachi group company Clarion has already decided to close a factory in Hitachinaka around the end of 2010 and keep just one domestic factory open. In the US, where Hitachi operates Hitachi Automotive Products (USA) Inc. in the state of Kentucky and three other production bases, two locations may be closed.

Mazda sees red: Mazda expects its first loss in eight years for this fiscal year due to damage sustained from a strong yen and a sharp downturn in consumer sentiment, the Nikkei [sub] reports. The Hiroshima-based company now expects a net loss of ¥13 billion for the current fiscal year through March, compared with its previous forecast for a ¥50 billion profit.

Ford moving to China: Ford Motor Company’s Asia Pacific and Africa region headquarters, will be moving from Bangkok to China, Gasgoo reports. Bangkok will continue to serve as Ford’s ASEAN regional headquarters. In 2004, Volkswagen AG and General Motors relocated their Asia Pacific regional headquarters to China.

Small getting bigger and bigger: Underscoring China’s move from big to small, SAIC-GM-Wuling, a Chinese venture of GM and leading manufacturer of mini-trucks and mini-vans in China, reported all-time high sales of 75,168 units in January, Gasgoo writes. The record sales were largely on the strength of Wuling Sunshine, which remained the best-selling model and saw its sales volume hit 1.4 million units by the end of January 2008.

Not a good start for Deutschland: Germans bought 14.2 percent fewer cars in January 09  than in January 08.  Saab (-60.7 percent), Chrysler (-53 percent), Land Rover (-51.9 percent), Nissan (-51.1 percent), Jaguar (-31 percent), Skoda (-30.7 percent), Mercedes (-30 percent), Porsche (-24.7 percent) and Opel (-22.7 percent) were the big January losers in Germany’s car market, Automobilwoche [sub] reports.  Ford sold 25.9 percent more. Smaller importers such as Hyundai (+50.8 percent), Mazda (+27.2 percent) and Lancia (+13.7 percent) gained. The trend goes from big to small.

Out with a Bangle: After 17 years with BMW, U.S.-born Christopher Bangle resigns as chief designer of the BMW Group. The Bavarians go Dutch with Adrian van Hooydon. According to Reuters, Chris Bangle is “one of the most well-known and controversial people in the auto industry.” Bangle was the object of multiple online petitions calling for his sacking. After his 2002 redesign of the 7 Series sedan, the vehicle was voted one of the 50 worst cars of all times by Time magazine, along with such other infamous models as the 2001 Pontiac Aztek and the 1998 Fiat Multipla.

It’s the hottest road race of the year. Who are the champs and who are the chumps of the global auto industry? Everybody who’s somebody wants to become a statistic in “world motor vehicle production by manufacturer.” Officially, that race is not over until the fat lady at OICA, the “Organisation Internationale des Constructeurs d’Automobiles” or International Organization of Motor Vehicle Manufacturers, sings. OICA still has the 2007 numbers on their website. Yet, General Motors has already conceded the top post to Toyota. All other manufacturers have already announced their numbers. While OICA is taking their good old time counting, the Nikkei [sub] performed its own tally.

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