When I was a young and budding Creative Director on the Volkswagen account (some time in the wild 70s,) I was told that there is only space for 10 automakers on this planet. In 2008, Marchinonne said there is room for 6. Now, the odds are there is Lebensraum for 3 to 5 automakers, depending on who you ask.

The prophets don’t seem to look around when they say that. The annual OICA list of the world’s largest automakers has 50 positions. In China alone are anywhere between 60 and 120 automakers, nobody seems to have a definitive number. Since I was a young and budding Creative Director on Volkswagen 30 years ago, the number of carmarkers worldwide has risen dramatically. It looks like the minute a country turns from a “developing country” into an “emerging country” (whatever that may be,) they want at least one of their own automakers. Even Iran has a couple of sizable automakers, they aren’t on the OICA list, and it’s not for a lack of units made.

If it would be true that one needs annual output in excess of 5m cars to survive, then our choices would be limited to Toyota, GM, and Volkswagen. Reality looks different.

The motorized mass mortality doesn’t seem to happen, and it won’t happen anytime soon. Read More >

Dearly beloved: Supposedly, capitalism is a pretty simple process. Let the market decide who lives and who dies. It worked for the ecosystems of the world for the past 6 billion years. Darwin; natural selection, survival of the fittest (or luckiest.). Trouble is, a lot of countries preach capitalism, but seldom practice it. The bailouts of banks, fiscal stimuli and other such market distorting activities don’t really help anyone in the long run. It has long been argued that there are huge overcapacity issues around the world, and something, someone has to give. Give up the ghost, preferably. The collapse of GM and Chrysler would have addressed these issues, but this post isn’t about the bailouts of GM and Chrysler and their validity. I want to know who’s next to die. Read More >

August. Whole Europe goes on vacation. TTAC’s insular correspondent Cammy Corrigan often mentioned that she would want to write the story of her first trip to The Continent. Last time we left her somewhere on the mountainous road between Nice, France and Ventimiglia, Italy. Let’s catch up with her …

As we were leaving France, my spirits started to lift. Even though I was waving goodbye to the beautiful beach, I saw the silver lining. I’d been to France many times before and was sick of it. I was sick of a country I didn’t like to begin with. But Italy was different. I’d never been to Italy. The closest I’d been to Italy was a Spaghetti Carbonara I had once. I didn’t know what to expect.

My father, if you remember, was driving. And he knew EXACTLY what to expect. You see, driving in the UK is quite a sedate affair. You may get the odd person who’ll stick 2 fingers up at you, but on the whole, it’s quite a stress-free experience. Italy, on the other hand, was its polar opposite.

Traffic lights were just seen as pretty street lamps, road signs were seen as “suggestions” and the most used part of the car was the horn. You see a friend in the street? Honk your horn. Someone cuts you up? Honk your horn. Police stop you? You scream at him and honk your horn. Football team won? You drive up and down the streets honking, you guessed it, your horn. Want to insult an Italian man? Give him the hand signal for two horns, indicating that his wife is sleeping around. If you want to completely disable an Italian car, simply disconnect the horn.

This should give you an idea of how noisy the streets of Italy were.

If the noise didn’t drive you (no pun intended) mad, then the driving would. And the only way to survive on these manic roads was to drive just as mad. And so, for the Italian leg of our trip, my father disappeared and the spirit of Ayrton Senna arrived. Read More >

It’s mid year and time to compare sizes. Who has the biggest (production) of them all? Last year came and went with no changes on the top of the list of the world’s biggest automakers. Same procedure as the year before: Toyota #1, GM #2, Volkswagen #3.

Where are we now, halfway through the race? Watch out, Toyota! Objects in your mirror are closer than they appear! That’s big bad GM riding on your … bumper. Read More >

August. Every year, one of the largest barbarian migrations is taking place: Whole Europe goes on vacation. Off to warmer climes. Off to other countries. Or off to The Continent, as they say in Great Britain. TTAC’s insular correspondent Cammy Corrigan often mentioned that she would want to write the story of her first trip to The Continent. What better time than this?

“Wake up!”

“Huh?”

“Wake up!”

“What’s going on?”

“We’re going on holiday!”

“Holiday?! Where?”

“France! Go pack your things! Quickly! We’re leaving in half an hour!”

This didn’t bode well. I hated France. I hated the food, the people, countryside, just everything. It’s not so bad now. Now, I just hate the food. And I’m still not too keen on the people, but it’s a start. In case you were wondering, that was my father. He woke me up to tell me we were going to spend two weeks in France. Read More >

Do you remember when Saturn made a last ditch attempt to bring customers back to their showrooms? It asked us to “Rethink” Saturn. Whatever our perception was of them, we almost certainly had it wrong and we had to check them out once more. Ford did a similar thing with “Have you driven a Ford lately?” It’s quite a clever strategy, convince the customer that they had it wrong about your product and invite them to try them again. Well, Toyota seems to trying a similar tactic in order to woo customers back and polish up their corporate image. Now at this point you’re expecting me to unveil some hokey advert which asks us “Try Toyota” (if Toyota is reading this, give me a call and we can work out a licensing fee for my ad slogan). Wrong. It’s not their products. They are fine.

Toyota asks us to rethink the meaning of recall. Read More >

Andy writes:

This is a perfect question for the first day of summer: I would love the readers’ input on plow trucks, specifically using a 1500 vs 2500. I will be doing some light duty plowing in Eastern MA, in a small to medium sized parking lot with plenty of obstacles. I thought of a Wrangler since it could also be a great summer toy, but it seems like it might not be suited for plowing. I know some of the readers will have some good experience to share. Thanks!

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The Nikkei [sub] reminds Toyota fanpersons and Toyota haters alike that Toyota “still faces uncertain times despite the preliminary findings of a U.S. Transportation Department investigation that indicate driver error may have been a contributing factor.” You mean, that wasn’t the fat lady? You mean, we have to wait for someone more obese? Read More >

Schadenfreude recently brought the elder Niedermeyer out of his summer semi-retirement, and for the most part, it’s a consistent inspiration for much of our content here at TTAC. But as natural and healthy as it is to laugh and learn from the mistakes of others, for some reason I’m just not feeling it today. Blame it, if you must, on a certain mellowness that settles in over the glorious course of an Oregon Summer. One Robert Farago always said that hate must come from a place of love, so in the interests of getting TTAC back in lean, mean fighting form, I’m going to indulge in the worst kind of of auto-writing love-fest: I’m going to tell you about how much I love my car. Except that it’s not a car, and it’s not actually mine…

Read More >

Editor’s Note: Legendary auto journalist and TTAC inspiration Jerry Flint died this week. Rather than write a sappy eulogy, we’ve decided to let Jerry speak for himself. What follows is a speech Flint gave to GM employees at Milford Proving Grounds in October 2000. It’s feisty, passionate and deeply insightful… the kind of speech that made Jerry famous, and paved the way for sites like TTAC. Moreover, it shows just how deep GM’s problems run, and serves as a timeless warning against the worst impulses of the business. Rest In Peace Jerry… we will always remember you at your best. [Courtesy: The Olds Zone Hat Tip: Ken Elias]

There was an auto executive, he was a very high ranking GM man.  You all know his name but I won’t mention it because it might embarrass him.  He’s not at General Motors anymore.

I once asked this man what he would do if he found himself the chief executive of General Motors.  He said, and I quote, “I would fire 1,000 executives.” End of quote.  I’m not sure whether it made any difference to him which 1,000 executives, if he had anyone in particular in mind, or any thousand would do.  I just tell you this to start things off.

Fasten your seat belts, it’s going to get bumpy.

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Now that at least partial civility has returned, with Congress having been officially notified that no ghosts were found in any Toyota machines, and that “the evidence points to a preponderance of cases where people who claimed unintended acceleration were pressing the wrong pedal,” it’s time to ratchet-down the tension on both sides.

In diplo-speak, that’s called “confidence-building measures,” or CBMs for short (not to be mistaken for ICBMs.) Toyota is performing CBMs. In a country that is suspect of  building ICBMs. Read More >

Does anyone remember when Hyundai set foot on U.S. soil? “KKK” (as in Korean Krap Kar) was one of the funnier monikers they received. Does anyone remember when Hyundai announced plans to become one of the top five automakers in the world? Rimshot. Cost-to-coast laugh track. Fast forward to the real world, and – oooops: Hyundai’s quality and reliability is now being thought of in the same vein as Toyota and Honda, Hyundai’s Alabama plant can’t make their cars fast enough and Hyundai was recently labelled the most fuel efficient automaker in the United States. It’s a long cry from the days of the Hyundai Pony, which was a load of old pony. Well guess what? Hyundai just broke another corporate milestone.

Auto Loan Daily reports Hyundai has broken into  Kelley Blue Book’s Top Five Most Considered  Automotive Brands, kicking out Nissan. The top five (in case you’re interested) goes like this: Read More >

Recently, Nissan claimed that their Leaf will have a battery production cost of $375/kWh.  A what? Anyway, this was:

1. Surprising as battery costs for an electric cars were forecast to be between $400 – $700/kWh.
2. Meaningless, as long as people thing in lease rate /month and MPG (and conveniently forget it.

But Tesla’s founding father didn’t like that at all. Read More >

This isn’t so much a news item as a “Congress finally figured it out” item. A preliminary report by the National Research Council, recently revealed to congress, shows that of 58 Toyota “black box” event data recorders from crashes which occurred during the recall scandal

35 showed that at the moment of impact, the driver hadn’t depressed the brake pedal at all. Fourteen more showed partial braking, while nine showed the brake depressed at the “last second” before the crash.

There were a handful of other results where the brake was pressed early and let go, or in which both the gas and brake pedals were pressed at the same time. There also was one case of pedal entrapment by a floor mat.

In five cases, the electronic recording device failed to work.

The WSJ [sub] notes that the investigation is ongoing, and that no official conclusions have been drawn, but that the finding vindicates an earlier report for which the WSJ had taken mysterious flack. For a complete look at the NRC-NHTSA study, and why it is highly unlikely to ever find a “ghost in the machine” in Toyota’s electronic throttles, check out TTAC’s review of the pre-study NHTSA-NRC presentation.