What is the difference between the November U.S. car market and my wife? The answer is: None. Edmunds says the U.S. annual sales rate for new vehicles in November will be essentially flat from the prior month. Read More >

Did we say that Toyota is casting a wary eye on Hyundai? The Koreans are on a roll. They are boosting their production capacity in China to 1 million units per year. And they do that right in front of my nose, in Beijing. Read More >

There is no “all clear” at Toyota. The company is still “on a crisis footing a year after the first of a wave of recalls of more than 12m vehicles.” This is the bottom line of an article the Financial Time wrote after talking to Shinichi Sasaki, the board member responsible for quality at Toyota. What is even more interesting: The article was put on The Nikkei [sub] newswire, which brought it to worldwide attention.

Sasaki makes some alarming statements: Read More >

BG writes:

Hi Sajeev! I am a big fan of TTAC and visit it almost every day. I have a question for you, so here it is:

We’ve heard so much about the goodness of wide wheel tracks, where the wheels are pushed to its corner. And the benefit of this seem natural and easy to comprehend for me, better handling, better looks, perhaps even better interior room if the wheel wells can be made less deep. It’s the other end of the spectrum, the narrow wheel tracks, that I can’t understand. What could possibly be the benefit of having a narrow wheel tracks? For some reason it used to be so popular, nearly all cars featured them. Even after the wide tracks was popularized by Pontiac in the 1960s, most cars still came with wheels that are placed well inside its openings. The only reason for them I can think of to justify that is if you want to use wheel skirts or low, “barely there” wheel openings, the Bathtub Nash being a good example. But most of these cars with narrow tracks have full wheel openings, at least in front. Why the narrow tracks then, I wonder?

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When Autoweek asks the R&D boss at an alt-drivetrain leader like Toyota what the future of its powertrain development looks like, one tends to hope for something revelatory in his answer. Instead, we get

Toyota launched the second generation of its Ractis subcompact in Japan. Never heard of a Ractis? No wonder: The first generation Ractis, introduced in 2005, was available only in Japan (and maybe a few in Hong Kong.) This one will receive wider distribution. Also, Subaru has been itching for its release. Read More >

Ten years ago I would never have considered comparing a Lincoln to a Lexus, but times change and with Lincoln heading up market with their latest product refreshes and Lexus searching for their soul in the mass market, the stars have finally aligned. And nothing out of Detroit strikes so closely the heart of the Japanese competition as the Lincoln MKZ Hybrid. After all, reliable entry-level luxury and hybrid tech are two things the Japanese mastered long before anyone else. Is it possible for an American company to beat Lexus at their own game?
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Hyundai could have timed this announcement a bit better. Wouldn’t the following announcement have been a fine crowning of  TTAC’s Korea week? Instead, the week ended unceremoniously with a reflection on thee shitboxes. From shitbox to market leader: Hyundai has kicked Toyota from the pedestal as the largest Asian carmaker in Europe. In a way. Read More >

TTAC Commentator Halftruth writes:

Hey Sajeev, maybe this has been covered before, but as I read thru new car reviews here on TTAC I see that every car maker has left out one of my fave features: the bench seat! I see these huge, gaudy, dust collector consoles in between the two front seats taking up leg and knee room! Am I the only one that misses the bench seat? And column shift? Say it ain’t so! I know they still exist on trucks to some degree but for me, my pref is a good ol’ bench seat. I prefer the 60/40 split and do think they are quite comfy (I am reminded of my years in a 96 Intrepid). I am sure the manufacturers are simply responding to market demands but what do you think? What does the B&B think? Am I sounding like a dinosaur here?

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Have you ever wondered what would happen if a man went out in the streets, throwing money in the air? Handing money out to passer-bys? Well Nissan decided to find out and hired an actor to do just that. It has created quite a ruckus! In more ways than one … Read More >

Having ignored the first wave of EV enthusiasm, Toyota turned to Tesla in the aftermath of its recall scandal as an investment that could potentially catch it up with other EV makers, and possibly help its battered image along the way. Officially, the deal was brokered after Toyota CEO Akio Toyoda drove the Tesla Roadster, and came away impressed with its “splendid flavor.” Toyota then dropped $50m on Tesla’s stock and another $60m on the Tesla-developed RAV4 EV prototype, raising the possibility of re-starting production at the NUMMI plant, which Tesla bought from Toyota as part of the hookup. But with Toyota also developing an EV city car in-house and talking up the return of hydrogen cars, Tesla’s role in Toyota’s future is clear as mud. If the RAV4 EV makes financial sense, Tesla could contract-build them at NUMMI, adding much-needed volume to a giant factory that would otherwise be building only the Model S (at a rate of about 20k per year).  But there’s the rub: Tesla clearly needs Toyota more than the other way around; it needs Toyota’s volume, manufacturing expertise and legitimacy. But what will Toyota get out of the relationship? An expensive EV compact crossover? Goodwill from the American people? The ability to keep in-house development looking past a short-term fad for EVs?

So here’s today’s puzzle: if you were Akio Toyoda, would you A) double down on Tesla, and buy a controlling share or even roll it into the parent company, B) quietly sell the stake and move on, or C) keep Tesla around as a speculative EV offshoot of the main company? It’s a complex question, and answers should touch on the market potential of EVs, Tesla’s strategy and viability, Toyota’s relationship with EVs, the PR benefits of keeping an American EV startup alive, and much, much more. Enjoy!

We all knew that Bob Lutz wasn’t going to spend his retirement circulating between the golf course and the early bird special, and when Lotus rolled out the most ambitious re-boot of any car company since GM, we should have known Lutz would end up involved somehow. After all, Lotus’s CEO Dany Bahar has bragged at length about making Lotus the “Real Madrid” (think Miami Heat) of  the sports car industry… and if there’s one high-profile prima donna in the car industry, it’s Mr Robert Anthony Lutz.
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We’ve called Toyota’s Tesla-developed RAV4 EV an “EV insurance policy,” but it seems that Toyota is even hedging its hedges. Automotive News [sub] reports that the Japanese automaker is developing an EV version of its iQ city car in-house, the first in-house EV developed by Toyota for the mass market. If Toyota’s experiment with Tesla fails the way Tesla’s development partnership for the Smart EV with Daimler did, Toyota will be ready with an in-house developed EV. The iQ EV should have a 65 mile range when market-ready, but no date has been given for its launch. Though offering less range than the RAV4 EV, the iQ EV should be considerably cheaper for Toyota to produce… and it keeps the automaker’s engineers in the EV game. As Toyota moves towards a 2015 hydrogen car, it’s plugging EVs into the city car profile where they should remain competitive long-term. This seems to be the model for the future: EVs for short-range city commuting, hydrogen for longer distances, and continuously-improved gasoline cars for those who can’t afford either. The broad-based green car portfolio seems to be the way of the future.

We’re coming to the end of KOREA! WEEK! and we still haven’t answered the question: When did Hyundai start becoming a serious player in this market? When did the image change from Deadly Sin to default-choice affordable car? One can go back as far as the second-generation Excel, which cracked the reliability equation while still being rust-prone as all get out. Alternately, perhaps it wasn’t until the arrival of the current Sonata that the brand became worthy of being chosen by the frozen Middle American masses.

The truth probably lies somewhere in the middle, and I’d suggest that the car you see above was the true turning point. The first-generation Elantra (Lantra to the Cammy Corrigan crowd) was pleasant enough, but it didn’t even pretend to compete with Civics and Corollas. Hyundai was assumed to know its place, and that place was among the credit criminals, desperately poor, and the hopelessly stupid. Ten years ago, however, the Elantra woke up and decided that nobody was going to put it in a corner.
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As Bertel reported this morning, the debut of Toyota’s first potential mass-market pure EV has not been an occasion for the Japanese automaker to trumpet battery-electric technology as a world-beater. In fact, given the kind of rhetoric that usually accompanies concepts like this Tesla-developed electric RAV4, Toyota is still treating electric vehicles as a limited, and relatively short-term trend that poses little threat to the gas-based core of its business. And there’s strong evidence that this is the right approach. Hybrids are the mass-market face of green motoring in the here-and-now, and a wave of hydrogen vehicles scheduled for 2015 could take considerable wind out of the EV bandwagon’s sales long-term. No wonder Toyota shoved development of the RAV4 EV to its idealistic “investment,” Tesla. This car is not the future… it’s an insurance policy.