As the industry (or at least parts of it) and the federal government face off over forthcoming 2017-2025 CAFE/emissions standards, a Center for Automotive Research study is getting more play than ever from an industry that seeks to portray the high cost of fuel economy improvements as being not worth the additional costs to consumers. CAR has yet to publish its full study, but it’s clearly intended to counter an offensive from groups like the Consumer Federation of America, which uses its own study to show that CAFE regulation will actually save consumers money. This battle, over the cost to industry and consumers of passing a 62 MPG standard for 2025, has been playing out for months now, and will continue to go back and forth over the rest of this summer. And sure enough, the Union of Concerned Scientists and the National Resources Defense Council have both hit back against the CAR study, calling it “industry-advocate propaganda” in the Detroit News and arguing that it underestimates future reductions in technology costs.

Read More >

Japan’s major automakers appear to recover faster from the impact of the March 11 tsunami than previously feared (or hoped.) Nissan’s Executive Vice President Takao Katagiri said today that Nissan’s Japanese vehicle production in May was the same or greater than its output in the same month in the previous year.

“We will also probably be able to maintain a normal level in June,” Katagiri  told The Nikkei [sub].  At the annual results conference in May, Nissan CEO Carlos Ghosn had predicted that the company would be back to normal by October. This remains the official party line at Nissan. Read More >

Honda and Toyota have been valiantly holding off an all-out assault on the compact segment thus far, and Civic and Corolla still lead the C-segment’s year-to-date sales race. FOr the month of May, however, the barbarians made it inside the gate, and turned the compact market on its head. Chevrolet’s Cruze, which was one of the first of new breed of compacts to launch, took advantage of its head-start in the marketplace to tear into first place, beating the new Focus by a mere 408 units. Elantra was about 2k units behind the Focus/Cruze leaders, but finished nearly 2k units ahead of Civic, which itself beat Corolla by nearly 1,500 units. Now that the Compact Wars are well and truly joined, we can expect more of this back-and-forth each month. In any given month this can be anyone’s segment… the question now is whether Honda and Toyota can possibly hang onto their YTD lead and finish 2011 with the volume win. It’s by no means a sure thing… hit the jump for a month-by-month breakdown of “big six” compact sales.

Read More >

Honda joins other Japanese automakers in a delayed post-tsunami forecast. Percentage-wise, Honda expects to be much harder hit than Toyota. Honda expects a net profit of 195 billion yen ($ 2.43 billion) when the current fiscal year ends in March 2012.through March. Last year,  there were 534 billion yen ($6.65 billion) left below the bottom line. That’s a decrease of 63.5 percent.

Analysts are shocked. Read More >

In the market to buy a condo in Tokyo? If you buy the right one, it will come with a car. Starting in spring 2012, Toyota plans to launch a condominium-based car-sharing program in collaboration with Japanese real estate developers. Read More >

We have been to Africa already in our Round the World whirlwind adventure, in Libya, Yemen and Ivory Coast, but this weekend it is time to visit Egypt, where the ‘middle-eastern revolution’ movement has started.

Alas. the data revolution is delayed. In Egypt, we are again faced with the now familiar issue of having no official sales data. By now you would all know that this was not going to discourage me, however, this time I didn’t even need the help of my old mate YouTube because I have actually BEEN to Egypt, lucky me!

Now if you have been to Egypt too and already know all there is to know about which cars the pharaohs drive everyday, that’s ok, there are 154 more countries to explore in my blog, so either run to your mummy, or go, check out the blog. OK and now I will stop with random Egypt/pyramid/Cleopatra-related wordplays. I promise.

And as usual I will cut to the chase and tell you that if you were to remember just 3 words about the Egyptian car market they would be:

Chevrolet, Hyundai and Speranza.

Speran-what? I know.

Read More >

Back in 1989 I spent some time blasting along the unpaved roads of the Southwest in a 1988 Toyota Celica All-Trac Turbo. A frequent thought: “What this thing really needs is more ground clearance.” That same year Pontiac displayed a sports car / SUV crossover as a concept. The Stinger was never produced, but it lingered within memories at GM and eventually provided some inspiration for both the Vibe and Aztek. Neither came close to the Stinger. Both lacked the chassis dynamics to fulfill the mission I had in mind.
And so it fell to Nissan to field the first compact crossover with the spirit of a sports car. Is the JUKE worth the two-decade wait?

Read More >

Today, Toyota finally delivered its delayed outlook for this fiscal year. It usually is delivered at the annual results conference, but the tsunami had muddled the waters, so to speak. Now, Toyota has a bit more visibility. Today, Toyota did forecast a 35 percent fall in profit for the fiscal year ending March 31, 2012. Toyota expects to end the fiscal with a net income of 280 billion yen ($3.5 billion).

According to Reuters, that’s “well short of the consensus for a 434 billion yen profit in a poll of 23 forecasts by Thomson Reuters I/B/E/S.” I am proud of the optimism of the forecasters. Personally, after looking at the disaster in Japan, I hadn’t expected any profits. Read More >

TTAC Commentator wannabewannabe asks:

Sajeev and Steve,

This is one of the columns I always read on TTAC, and now it’s time for me to submit a question. I haven’t been keeping up on new (and slightly used) cars as much as I used to, so I’d love to get the advice of you guys and the b&b.

Here’s the situation. My mom just totaled her 2007 Scion tC. Don’t worry, other than a few bumps and bruises, she’s fine. But that does leave her in the position of needing a new(ish) car. Of course, I volunteered to help her come up with a list of possibilities for her to consider. The insurance company has given her an estimate of a $13k payment for the Scion, so let’s use that as a baseline. I just talked to her and got her wants and needs and possible price range. They are:

Read More >

In an (especially for Japanese tastes) strongly worded joint statement, Toshiyuki Shiga. Chairman of  Japan Automobile Manufacturers Association, and Koichiro Nishihara, President of the Confederation of Japan Automobile Workers’ Unions threw down the gauntlet to the Japanese government. Executive summary: “We are sick as hell of the high yen and we can’t take it anymore. Do something, or kiss those jobs sayonara.” Read More >

The Hyundai Accent has never been a “gotta have it” sort of car. Instead, it’s been a “what’s the cheapest thing you got?” sort of car. The 2011 started at just $9,985 (plus shipping and handling). That’s “started,” as in past tense, because the 2011 is history. The 2012, now arriving at dealers, starts at $12,445 plus $760 for destination. Add an automatic transmission, A/C, the $1,300 Premium Package (fog lights, cruise, remote keyless, Bluetooth, upgraded interior trim, 16” alloy wheels in place of 14” steelies), and floor mats, and you’re looking at a $17,350 sticker. Clearly Hyundai thinks they’ve developed a much more desirable car. Have they?

Read More >

I have always been a ‘keeper’. Even though my inventory varies these days from muscle car’s to minivan’s, my own daily driver has always been a long-term affair. It’s an addiction that goes well beyond cars. Quality, stewardship. An opportunity to make your professional work enduring. Keeping and preserving your ride usually goes well beyond the economics of the car itself. That’s why the most fervent of horse traders in any business will eventually find a personal keeper or two. And chances are it’s not always going to be something that is flashy or popular. Read More >

The Chinese government appears to be dead-set on electrifying its car fleet. And if any government usually gets what it wants, then it’s the Chinese. Generous subsidies beckon: Some cities in China match a central government subsidy of 60,000 yuan with their own 60,000 yuan largesse. That’s 120,000 yuan, or in today’s greenbacks (forget the rumor that the yuan is pegged to the $, no more) that’s $18,515. Even more intriguing: Beijing promises to do away with its license plate lottery for EVs.

Two problems: No EVs to buy, and no charging stations. Read More >

May shapes up to be an accommodating month for China watchers: There’s something for everybody. You want to see the Chinese bubble burst? May will give that to you. You want cliché-confirmation, you want to hear that Chinese hate Japanese? May gives you automotive anti-Japan pogroms. You want GM up? No problem, May has got that. You want GM down? No problem, May has got that. You want unbridled growth? May can do.

Or as the Chinese say: “May wen ti!” No problem!

First, let’s have a look at our patent-pending TTAC China sales oracle, a.k.a. GM China. Read More >

Japan’s March 11 tsunami had more destructive effects than just washing pint-sized (ok, ok, 0.6 liter sized) kei cars to the top of Japan’s sales charts. It also resulted in considerable menboku o tsubusu (literally “breaking of face”, dishonor) for Lexus. On its home-turf Japan, Toyota’s lux-brand was outsold by doitsu (German) BMW, even by Mercedes, a brand said to be popular with the yakuza. Speaking of major menboku o tsubusu: BMW did certainly not top Toyota, as Bloomberg insinuates. Read More >