Toyota must have recalled what seems to be all its cars on the road (well, some 8m to 9m worldwide to be halfway exact.) Now it’s Chrysler’s turn. Last week’s announcement for pedals with sticktion was just the warm-up. The serious recalls are coming now.

Chrysler is recalling some 575,000 Jeeps and Dodge and Chrysler minivans, says Bloomberg. Read More >

Once again Detroit finds itself atop Edmunds’ True Cost of Incentive ranking of the top seven automakers [via earthtimes], as the domestic OEMs spent about $1.7b (or, about 60 percent) of the $2.8b paid out by the entire industry on incentives last month. Trucks were the most heavily discounted segment, with average incentives running around $4,650, or nearly 13 percent of the average segment sticker price. Saab spent the most by brand, slapping an average of $6,813 on its vehicles, with Lincoln coming in second at $4,987 per vehicle sold. Saab’s incentives equaled 17.1 percent of its average vehicle price, while Chrysler gave away about 12.2 percent of its average vehicle price last month.

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With Honda and Toyota suddenly taking hydrogen fuel cells seriously, Hyundai-Kia is jumping on the bandwagon. Byung Ki Ahn, general manager of Hyundai-Kia’s Fuel Cell Group tells Autocar

There are already agreements between car makers such as ourselves and legislators in Europe, North America and Japan to build up to the mass production of fuel cell cars by 2015. Hydrogen production capacity and refuelling infrastructure will be improved. Pilot-scale production of 1000 fuel cell cars a year will begin for us in two years. Our first cars won’t be fully commercialised [they will probably be leased , not bought outright] but they will allow us to make the final stages of development progress before we begin commercial production of around 10,000 hydrogen cars a year in 2015

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It’s out. Volkswagen’s best kept secret is out. At VW do Brasil’s website. The price for the mid-size (for Brazil) Volkswagen Amarok is out. It’s way out there. You can pre-order now. Ready? Take your checkbook out. Breathe deeply … Read More >

Chrysler is sending out recall notices to owners of 25,000 Dodge Calibers and Jeeps. The reason: Accelerator pedals could become stuck and cause unintended acceleration, Chrysler said according to a report in Reuters. Sound familiar? Wait, there is more … Read More >

The chart is the problem: VW wants to sell a million cars in the US by 2018, and if Audi’s going to account for 200k of that volume, the VW brand has to get its sales headed towards the 800k range. Ostensibly, the pictures are the solution: with the Passat and Tiguan selling like they have herpes, these updates are going to be an important element of how VW gets from where it is to where it wants to be. And though neither of these images are of the highest quality, they point to some serious dullification. Apparently VW’s bid for “mainstream relevance” mean turning its vehicles into snooze-mobiles. But is the Toyota school of styling going to put Vee-Dub over the top?

The NHTSA has definitely shut down on-line access to attachments in their Office of Defect Investigation complaint database. It’s about time, but it isn’t enough. To quote Kris Kristofferson, the database has always been “a walking contradiction, partly truth and partly fiction.” The database has been abused for political propaganda purposes. Now, that it has served its purpose, the database is being shut down. Partially. They have locked away the only content that is of real value: The evidence. We preserved some. To show you what you will be missing. Read More >

As a nameplate, Lexus is now old enough to consume alcohol in all fifty states. Make no mistake, though: the brand Lexus has become is not the brand it was perhaps originally intended to be. Toyota and Nissan each launched with a (mostly) clean-sheet big V8 sedan and a warmed-over home-market showroom filler. For Nissan, the lineup was a short-wheelbase version of the all-new “President”, badged Q45, and a long-in-the-tooth Leopard coupe, yclept M30. Toyota introduced its “F1” global flagship as the Lexus LS400. To keep the new LS from being lonely in the showrooms, a quick nose job was done on a JDM faux-hardtop midsizer, and the ES250 was born.

Perhaps the Japanese thought they could win the “D-class” battle against BMW and Mercedes-Benz as easily as they’d destroyed the British motorcycle industry or humiliated the American attempts to build subcompact cars. It didn’t quite work out that way. The Q45 badge moved to the rather dismal Nissan Cima before completely fading away. The M30 was a sales catastrophe, to put it mildly. While the current LS460 does about the same annual volume in the United States as the Mercedes-Benz S550, it does so with a base price that is almost $23,000 below that of the Benz.

It was the humblest of the original four offerings from Lexus and Infiniti that would go on to conquer, if not the world, then at least the continent of North America. Today, Lexus is one of the top-volume luxury brands in the market. Its killer Camry-derived duo of ES 350 and RX350 perennially occupy the top of their segments’ sales charts, generating over 100,000 sales per year. Lexus is one of the most famous success stories in the industry, but it began with a straight badge-engineering job of a nearly obsolete car.

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Woken up by the Tata Nano warning shot (which so far seems to be a dud), everybody agrees that the key to making India “the next China” is to start small. Why does Suzuki own more than half of India’s market? Small cars.  And motorcycles. Another key to emerging markets is to give people an easy upgrade path from two wheels to four wheels. Remember how BMW got started? Remember that the initial business plan for the Volkswagen was to offer citizens of the Third Reich a car for the price of a motor cycle?

No wonder manufacturers are scouring their line-up for cars small enough for the huge Indian market. Read More >

GM has announced pricing on its next small thing, the Cobalt-replacing Cruze compact, and the new price of entry is $16,995. That’s about a $2,000 premium over the base Cobalt (which starts at $14,990), a price hike that is justified by Chevy’s high expectations for the Cruze. As Chevy’s Jim Campbell puts it

For the price of a compact car, Cruze offers the styling, safety features, roominess, amenities, and refinement of a much more expensive car.

Base prices for the Cruze’s main competitors are $16,200 for a Corolla, $16,415 for a Civic, $16,095 for a Mazda3, $16,170 for a Sentra, $17,040 for a Focus, $178,485 for a Jetta, $14,865 for an Elantra, and $14,390 for a Forte (including typical destination fees).

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How did Tokyo digest Toyota’s lackluster U.S. May sales performance? In a market that forged ahead by 19 percent, Toyota grew only 6.7 percent. Even more embarrassing, other Japanese brands like Mazda (+ 35 percent), Subaru (+35 percent), or Nissan (+24 percent) had outpaced the market.  When Tokyo woke up to the bad news this morning, everybody ran to the phone, called their broker and … Read More >

The first numbers are out for May. Sales of new cars dropped 9.66 percent in relation to April. Why? This is the first month in which the full effect of the end of the incentive program was felt. Many dealers however kept up incentive pricing avoiding the 20% drop I had predicted. All is not lost though. Read More >

Designing a product for local tastes is a tricky affair. Just getting the name right is a hassle. Everyone remember the Toyota MR2? Not the French. They remember the Toyota MR. Why? Because “MR2” in French would have sounded like “Em-Ar-Deux” (“Deux” being French for “two”). And “Em-Ar-Deux” sounded very close to “merde” which is French for…..let’s not go into that. So, if getting the name right is a chore, you must do your car research with care  if you want to pander to local needs. I mean, get that wrong and you could end up in deep Em-Ar-Deux. But Volkswagen reckons they’ve found what the Russians want … Read More >

The Lexus LF-A is sold out. Your $375k may now resume burning a hole in your pocket, bank account, investment portfolio, Scrooge McDuck-style treasure vault. Bonus LF-A trivia point (courtesy: Automotive News [sub]): one out of every three LF-As sold in Europe went to Germany. And that’s all Toyota will say about that. Meanwhile, ToMoCo’s other, more “mission critical” sales numbers are slightly less inscrutable…

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Many people (especially on this site) worry that Toyota might become the new old GM. I beg to differ. Toyota is a well run company, it turns a profit and builds good cars (not great, but good ones). When GM was swirling around the porcelain throne, people were desperately seeking ideas to recall lost customers back to GM. One thought was the “5 year, bumper-to-bumper warranty.”

The logic was watertight. Stop saying that your cars are as good as the competition (I’m looking at you, Mr Lutz) and put your money where your mouth is. Why should a customer commit tens of thousands to a car, if you can’t commit to a measly 5 years? But GM never did it. We had a powertrain warranty, but not a bumper-to-bumper one. Now compare this to Hyundai, who where, and let’s not mince words here, a joke in the car world. A commitment to quality and a 5 year bumper-to-bumper warranty (in the UK) later and Hyundai is up there with the best of them. So, if it’s good enough for Hyundai…. Read More >