The first few months after the launch of a new product is seen as critical by car makers. This is the time they take the pulse of the market and determine whether or not the product struck a chord and is going to be a hit or not. Well, venturing bravely into new territory in Brazil, you would not be wrong if you said that Peugeot and VW swung and missed. Peugeot’s Hoggar and Volkwagen’s Amarok are going nowhere fast and are making their makers feel the blues. Read More >

Later this month at the upcoming Paris auto show, Lotus will be revealing the first car that reflects their new strategic vision, a vision of going upmarket and luxurious to compete directly with the likes of Porsche, Ferrari and Aston Martin. The car, originally slotted to fill the role of the much beloved Esprit, will now be “something more” than the Esprit. The midengine supercar is rumored to be powered by the V10 engine that powers the Lexus LF-A. Toyota currently supplies Lotus with all of its production car engines. The LF-A’s announced production run of 500 units probably won’t cover that engine’s development costs, so the rumor makes sense.

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While Japanese automakers are digging in for the big sales drop at home, caused by the evaporating government stimulus money, all eyes are across the China Sea. A large share of this year’s profits will come from China, says The Nikkei [sub]. Read More >

Yes, despite the ever-present dangers of distracted driving and demonically-possessed Toyotas, US highways are safer than ever [full PDF report here]. Overall deaths in 2009 were at their lowest levels since 1950, even as vehicle miles traveled increased. Highway fatalities have been falling for the past four years, and in 2009 even motorcycle fatalities decreased for the first time in 11 years. At 1.13 deaths per 100 million vehicle miles traveled in 2009, fatalities per VMT fell to another all-time low. Why? It could be the market-fueled arms race to stuff ever more standard safety equipment into cars, or incessant pressure on OEMs from the IIHS (and its ilk)… or, if you’re Transportation Secretary Ray LaHood, you might think that

the weak economy was a contributing factor as many Americans chose not to go out to bars and restaurants after work or on the weekend.

Yes, the man tasked with keeping our highway safe believes that his ongoing success is the product of Americans moping around the house because of a down economy. Even though VMT actually increased by .2 percent over 2008. In other words, despite “talking about safety more than anyone in Washington,” Ray LaHood is both clueless about the data, and convinced that a weak economy helps his crusade. Which makes you wonder what the man means when he says

While we’ve come a long way, we have a long distance yet to travel.

Sometimes we forget that Toyota Motor Corp. is a member of a huge keiretsu (conglomerate). Well, The Nikkei [sub] reminds us that a “Toyota Motor Corp. affiliated trading house will obtain artificially raised juvenile fish about 6cm long from the university’s fishery lab in Wakayama Prefecture.” Juvenile fish? Read More >

Ray LaHood is great, isn’t he? When that big nasty corporation, Toyota, was building those awful machines that were murdering people and their children in their sleep in the middle of the night, he urged everyone to “stop driving your Toyotas” (Ford also had a problem with unintended acceleration, but LaHood couldn’t go after them with the same vigor as he was busy dealing holding “Toyota’s feet to the fire” at the time). His useful piece of advice led to a calm and controlled recall and gave people the courage to come forward and give their horror stories of how their Toyotas went all “HAL” on them. Then came allegations that Ray and the NHTSA were suppressing a report that confirmed it wasn’t the cars but driver error. Well, Ray knew he was being stabbed in the back but you can’t keep a good man quiet for long… Read More >

Throwing caution of top government officials in the wind, the China Association of Automobile Manufacturers (CAAM) expects car production in China to reach 30 million by 2015, with 5 million units earmarked for exports, China’s Global Times reports.

The CAAM calls the estimate “conservative.” China’s 21st Century Business Herald cited sources that are betting on 34 million annually in five years. The surprising part is not the total. 25m sold domestically by 2015 is lowballed. At the rate the world’s second largest economy is growing, anywhere between 30 to 40m units annually is doable.

What is surprising is the export number they have in  mind. Read More >

The things you find on the Internet. FFOG (ever heard of them?) reports that the Iran has an electric vehicle that goes 300 kilometers (186 miles), “with the recharging battery in only six minutes.“ Read More >

A few weeks ago TTAC reported how BMW and Daimler revived a long-ago formed  joint purchasing venture in order to help drive down costs for the 2 independent car makers who can’t achieve high volumes of scale. This was seen as quite a big step in a direction few expected. As our resident German put it, “If you think South Korea and North Korea have communication problems, then you should be in a meeting between Daimler and BMW engineers.” He does have a way with words, doesn’t he? But he wasn’t wrong. It’s been a bit of joke to in the industry how Daimler and BMW view each other. As the mustachioed one put it, “Daimler engineers view their colleagues as boorish Bavarian upstarts. BMW engineers think Daimler is a congregation of has-beens.” And you thought relations between GM and Toyota were frosty! At least they had a plant together. Well, it seems that relations maybe thawing between the boys in Munich and the lads in Stuttgart. Kind of… Read More >

[In addition to the the Mitsubishi, here’s another vanup for all you fans of the genre, and a domestic brand at that]

The auto market prides itself on niche marketing. New body styles that we never imagined that there was a need for spring forth from the ever-fertile minds of the industry marketing boffins, and appear out of nowhere, like the “Sports Activity Vehicle” (BMW X6). But there’s one that’s been long overlooked: the van-up. Combining the best of two highly popular segments, the van-up offers unparalleled space utilization and utility. Well, if the manufacturers aren’t going to build one, a person just needs to roll up his sleeves and set to it. It’s the American way: Read More >

After 13 months of rising car sales, Japan is looking into a deep, dark abyss. A government subsidy program will end any minute. Officially, the program runs through the end of September, but the funds have dried up. As of Monday, around 10.2 billion yen ($122m) were in the kitty. That’s about a day’s worth of subsidies. Read More >

Jay writes:

I’m spoiled.

I’ve been blessed to drive three BMW 3-Series over the past several years (BMW employee leases). I’ve been spoiled by their comfort, performance, and quality. Now I’m out of the car industry and my lease is going up. I’m looking to buy a car for $17K or less and build up my investment portfolio. I plan on driving the wheels off this car, so I would like to like it at least a little.

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Hyundai plans to raise its worldwide production capacity (including Kia) to 6.5 million a year by 2012, company sources told The Nikkei [sub]. To put that into perspective: In 2009, the Hyundai/Kia chaebol sold 4,645,776  cars. To put it further into perspective: GM sold 6.5m cars worldwide in 2009. Here is the expansion blueprint: Read More >

I hate to get all “workers of the world unite”, but management seems to get away with a hell of a lot more than the rank and file. Take Prudential’s bid to take over AIG’s Asian arm. The bid failed and the whole exercise cost Prudential £377m (about $579.5m). Digest that figure for a second, then digest the next fact. The CEO, Tidjane Thiam, refuses to stand down over this mistake. Now consider this, if you, as a rank and file member, would cost the company you work for just 1 percent of that previous figure, could you honestly expect to keep your job? Now let’s look at the FIATsco incident. The whole affair cost GM $2b. Again, had you have cost the company you work for just 1 percent of that figure, could you keep you job? After writing this paragraph, I find the next story almost heartwarming. Read More >

When you buy a car new, depreciation is a risk you have to take. So like with any risk, one tries to minimize it. That’s why Toyota and Honda are such perennial favourites. low depreciation. But what cars should you avoid if you don’t want to suffer depreciation that could make you depressed? Read More >