We expect to be in profit in the market by 2013… I’m sure those statements were based on some sound analysis.

Volkswagen’s new US boss Jonathan Browning gives his company’s forecast of its future performance (which previously elicited TTAC’s coveted “flying pigs illustration award”)… before totally blowing his credibility by admitting he knows nothing about the matter [via MSNBC]. In front of the National Press Club, no less. Then, for good measure, the former GM and Ford man added

Not many people of my generation don’t have fond memories of the VW Beetle and the VW Microbus.

Which is not unlike saying that not many Americans don’t fail to remember whether Volkswagen has produced cars that may or may not have come up short of not failing in the marketplace. The irony of all this: English is Browning’s first language. The big lesson: German execs are far more endearing when they come across as out-of-touch and incomprehensible.

Once upon a time I wanted a Pontiac Fiero. Then the original Honda CRX awakened me to the joys of driving a small car sideways. It was what the Fiero, similarly pitched as an economical commuter, should have been. In comparison, even the second-generation CRX seemed too large, too refined, and disappointingly dull. Fast forward a quarter century, and the Honda Insight is perhaps the most disappointing car I’ve driven in recent years. So when Honda announced that it would base a new two-seater on the Insight, and call it the CR-Z, I fearfully predicted that it would look like the CRX, but drive like the Insight. And?

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The heavy handed attempts to put the Japanese car industry in its place were totally unnecessary. Japan is perfectly capable of doing this all by themselves, with the help of the Godzilla-strength yen.  Over the last issues, we have been chronicling the exodus of Japanese carmakers to lower cost countries with softer currencies. A trend even today’s yen intervention by the BOJ won’t stop. The last one we would have suspected of hopping on that bandwagon to cheaper shores was boutique carmaker Mitsuoka. But the purveyor of fine retro romance is also outta here. Read More >

Scion brand manager Jack Hollis tells the WSJ [sub] that

The sales are nowhere where they should be and they will never be this low again

And with only 29,672 units sold through 2010, he ain’t kidding either (well, except for maybe the last part). Meanwhile, with the Yen headed up, profits on Scion’s small, Japanese-built offerings aren’t in great shape either. In short, it is with good reason that Scion is the subject of the most-recent TTAC Deathwatch. Meanwhile, Scion’s bid for renewed relevance hangs on the success of two cars: the neo-Corolla Coupe tC, and the A-Segment Scion iQ three-seater. TTAC will have an early review of the tC before the end of the week, but before we get into the specifics of that vehicle, let’s ponder the wider question of Scion’s viability. Will these two cars bring back Scion’s sales to their previous levels? Let’s take a look at Scion’s historical sales for answers…

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Who is the most sustainable car maker? And by “sustainable” I mean everything, like fuel-saving ideas, green practices, etc. It’s bound to be a Japanese car maker, right? Toyota, with their hybrid technologies, Nissan and their electric cars or Honda and their Hydrogen FCX Clarity? Nope. Maybe it’s General Motors and their Volt? The answer lies in Munich. Read More >

Lawyers would have to do pro bono work, or subsist on doing divorces and writing wills, would it not be for Toyota. Toyota’s contribution to the world of jurisprudence is immeasurable. They are in a drawn-out lawsuit against their own (former) lawyer. And they are named in more than 300 federal and state lawsuits including proposed class actions over allegations that the vehicles suddenly accelerated and couldn’t be stopped. Toyota is trying to put the brakes on that. Read More >

In the second bit of bad news for Toyota to break today, Corporate Counsel reports that former Toyota lawyer Dimitrios Biller has been cleared by an arbitrator to present evidence that Toyota claimed was protected by attorney-client privilege. That evidence reportedly proves that Toyota concealed safety information, although its value has been hotly debated. The evidence will be presented in Biller’s civil RICO suit against Toyota now that the arbitrator in that case has ruled that hey are not protected by attorney-client privilege. Biller tells CC

Attorney-client privileged information almost never gets to the finder of fact to determine the merits of the case. I am halfway there. The burden is now on Toyota to prove me wrong

But for full context, a retired federal judge clarifies that

The Arbitrator does not rule that a crime or a fraud has taken place. The ruling is simply that a prima facia showing has been made, so otherwise-privileged materials may be used in discovery and arbitration.

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EVs are also called “Yes but cars.” As in “Yes, but the power needs to come from somewhere. Usually from a dirty plant with a huge smokestack..” Several companies don’t want to hear that anymore and develop a smart grid that powers houses and cars entirely from renewable energy sources. At least that’s the plan. Read More >

Toyota turned into a fast breeder for hybrids. They will  introduce six new hybrid models worldwide by 2012, says The Nikkei [sub]

Furthermore, they will display an electric car at the Los Angeles auto show in November that is being developed jointly with Tesla.

Meter maids employed by a for-profit, foreign company are confronting motorists and seizing disabled parking permits at the direction of the city of West Hollywood, California. Earlier this month, officials announced a “crack down” on the abuse of restricted-use parking spaces by having meter maids determine whether the users of disabled parking permits are legitimately handicapped.

“Under a program initiated by the city of West Hollywood’s Parking Division, drivers displaying disabled placards may be randomly approached to provide proof of placard ownership,” a city press release explained. “Failure to provide the required identification card will result in the confiscation of the disabled placard and a parking citation for misuse, which carries a $500 fine.”

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Just weeks ago, Amp Electric Vehicles CEO Steve Burns told the New York Times

G.M. doesn’t know if we are friend or foe… They’re trying to figure it out.

What The General was trying to figure out was whether allowing Amp to sell $50k electrified versions of its Chevrolet Equinox is a good or bad thing. After all, if BMW can charge $800 per month for EV-anxious consumers to test its disappointing MINI E, why shouldn’t GM get in on the early adopter-scalping game? Two weeks ago, GM spokesfolks said

We’re pro-E.V., and it’s a good thing that there others out there moving the electric vehicle market forward.

Today, Amp is announcing that it has signed an agreement with “a major OEM” to electrify one of its SUVs… within  60 days, no less. Though the press release doesn’t specify which OEM is sponsoring the project, the fact that AMP exclusively electrifies GM products and hires former GM consultants should speak for itself. And with Tesla prepping an EV RAV-4 for Toyota, would it be shocking to find out that GM is playing the me-too game by commissioning an EV Equinox? On the other hand, maybe we should take the “SUV” label seriously and consider the possibility that Amp is electrifying a full-size GM ute? Either way, the trend towards rapid outsourced development of EVs is seriously starting to take hold…

One by one, Japanese automakers are turning their back on Nippon and establish production in low cost countries. Can’t blame them: The high yen makes exports prohibitively expensive. On the other hand, a higher and higher yen buys more and more production capacity abroad. Nissan has been on the forefront of this movement, maybe because its CEO isn’t Japanese. Now, Nissan bolsters its presence in Indonesia. Read More >

I can’t speak for the US market, but in the UK car market there is one segment which I can never see dying. The small, luxury car segment (A.K.A The luxury entry level). This is the area reserved for your Audi A3’s, BMW 1 series’ and, to lesser extents, Volvo S40’s and Mercedes-Benz A-Classes. The reason I believe this segment is more robust than other is because it revolves around one factor which has been around for a very long time. Vanity. In the UK, you have many (and I mean “many”) mid-20’s to early 30 men, who’ve got a half-decent paying job and want to lash out on a car with a luxury make. Very few will go with cars like the Audi A4, BMW 3 series and Mercedes-Benz C-Class, because they either scream “rep-mobile” or “old man”. They won’t go any higher up the ladder because that’ll be too costly. So the small, luxury car segment is perfect for them. The least amount of money for the most amount of badge-snobbery. This is why the BMW 1-series is so successful in the UK, despite being quite a poor car. “I can get a BMW for the price of a Golf? Sign me up!” Well, it seems a new boy is coming to the market. Only this one has a trick up his sleeve… Read More >

Contrary to English, “azul” or blue has positive connotations in Portuguese (yes Brazilians speak Portuguese not Spanish – close, but no potatoes). “Tudo azul” means everything is fine, the road is clear. Maybe a close equivalent would be that line in that old song, nothing but blue sky. According to the giant Brazilian web providers UOL’s site, August has again recorded record car sales in Brazil. The market was up 3.99 percent on the month (good for a total of more than 296 thousand), but better yet, it was up 19.82 percent on August of 2009. Year-to-date, the market is up an even more impressive 27.68 percent!

As you’ve been reading my columns, you all know we’ve been watching closely the Gol versus Uno fight for first place. Can you guess who came out on top? Read More >