On the back of a 45 percent growth that propelled Chinese car sales to 13.6m in 2009, and faced with a shortage of cars that doesn’t allow them to feed China’s ravenous appetite for even more cars, Chinese automakers are racing to build more plants. The combined capacity of the 10 largest players is expected to balloon from around 12 million units in 2009 to a breathtaking 21 million in 2012, today’s Nikkei [sub] reports.

Some examples: Read More >

Today’s Nikkei [sub] says that the latest Toyota recall “is seen as a major dent in the side of the leading Japanese automaker’s reputation as a builder of reliable automobiles.” Read More >

Denmark is keen to show the world, especially after the Copenhagen Conference, that they mean “green.” Denmark is setting up an infrastructure to support electric car recharging, however the other side to this grand scheme are throwing their toys out of the electric car. The Copenhagen Post reports that Renault are threatening to withdraw the electric cars which they were supposed to supply to “Better Place”, the company monitoring the installation of the electric car infrastructure. The reason behind this shocking behaviour (see what I did there?) is that Renault believe that the Danish government are not giving enough favourable car tax breaks to electric cars. The government’s policy is to give electric cars exemption from normal vehicle registration tax of 180%* until 2012.

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At the end of an excellent comment on the recent 1989 Camaro RS Curbside Classic, commenter carnick noted:

I remember reading an article at the time which interviewed both Roger Smith, and Toyoda-san, the head of Toyota at the time. Each was asked, ‘is your company in business to make cars, or to make money’? Smith answered, ‘of course, we are in business to make money’. Toyoda answered, ‘we are in business to make cars, and by making the best cars in the world, we will make money’. While Toyota has had its problems lately (they caught some GM virus), I think the general path both of those companies have taken over the past 30 years shows which strategy works best.

This is fantastic encapsulation of the different directions GM and Toyota have been heading over the past several decades, but it’s also a warning sign for Toyota. The company that rose to the top of the global auto industry by virtue of a laser-like focus on cars themselves is facing a flood of recalls and perceptions of declining quality… and it’s just come out with a PR website called “Toyota Beyond Cars.” Coincidence?

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Collisionrepairmag.com reports that AzkoNobel, a chemicals company from the Netherlands, has teamed up with Toyota to create Sikkens Autoclear LV, a scratch resistant, self healing clearcoat. The product has been approved by Toyota for use on the Lexus LS range as an aftermarket clearcoat to be used at Toyota dealerships and Toyota affiliated collision repair facilities around the world. According to the article, “Sikkens Autoclear LV Exclusive is highly resistant to scratches, and holds up extremely well after repeated washings, but it truly differentiates itself from other clearcoats with its outstanding self-healing characteristics when a vehicle is nonetheless damaged. With extraordinary “re-flow” properties designed into the coating, small scratches virtually disappear in minutes when exposed to a heat source at temperatures ranging from 40-80 degrees celsius–and even exposure to the sun will initiate the healing process.”

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What is the purpose of the Crosstour? I asked as I waited for my test car to be readied. Pause. Finally an answer, The Crosstour is now the high-end Accord. It is designed to compete with the Toyota Venza. Ah, I get it: monkey see monkey do. What better way to give the marque a kick in the shorts than to pinch an idea from the market leader. And so they did. Almost. Partly. Sort of.

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A lot of bandwidth is wasted in the blogosphere about how closed the Japanese car market supposedly is to foreign imports. Which of course is baloney. Paul Niedermeyer debunked the propaganda, and said: “Want to import cars to Japan? It’s one of the easiest countries to do so.“

In case people have not really gotten it, The Nikkei [sub] has drawn them a picture. It painstakingly lists how many cars were made by Japanese manufacturers at home and abroad. It shows how many cars were exported, and how many were imported. Read More >

Toyota got hammered by another big recall today, with 2.3m vehicles called back for sticking accelerator pedals. According to Toyota’s release, this recall is

separate from the on-going recall of approximately 4.2 million Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.

How much more of this can Toyota take? One thing is for certain: ToMo has got to pull its current ad campaign which emphasizes the alleged quality of Toyota products. Cognitive dissonance might work in the short term but once consumers wise up they’ll never trust you again. Just ask GM.

Anonymous writes:

I’m in my early twenties, and I’m looking for a car that I can efficiently commute in (about 20 miles round trip) but also take to skiing and camping on the weekend. Efficiency is more important than price, but AWD is a must because I hate messing with chains. Also, I only need room for two people and gear, so no need for a big SUV.

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This week saw the Volt’s price point issues return to the public eye, as GM’s Chairman and CEO made it clear that he takes the government’s $7,500 tax credit for granted. But Whitacre’s dissembling revealed once again GM’s fundamental problem with the Volt: getting people past the sticker shock. Though GM’s short-term viability doesn’t hinge on the Volt selling like gangbusters, it’s clear that the Volt’s initial success or lack thereof will be a crucial factor in GM’s ability to hold a successful IPO and extricate itself from government ownership. Which, according to The Big Money‘s Matt DeBord, is one of the reasons the government should expand the Volt’s credit of $10k. Another reason: the Volt’s competition is too good!

with the base Prius selling for just over $20,000 and the base Honda Insight hybrid for under $20,000, the feds may have to start thinking about how to enable innovative electric and gas-electric plug-ins to survive. The EPA mandate to raise fleet fuel-economy standards to average of 35.5 mpg by 2016 looms, and a component of that target should be EVs and plug-ins. Otherwise, carmakers may abandon the tech, leaving it stillborn to cynically massage their fleet numbers by importing small cars from foreign operations to North America—cars they know Americans will only grudgingly purchase and that may force the government to chuck the 35.5 requirement.

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Toyota plans to roughly double its global production of hybrid vehicles to 1 million units in 2011. On the surface, this plan doesn’t sound too ambitious. Hybrids are flying off dealer’s lots in Japan. About 350,000 hybrids were sold in Japan last year, accounting for 11.9 percent of total sales. Toyota’s Prius took the lion’s share with 209,000 units sold. Honda’s Insight made up for another 94,000 units. Less that 50,000 were “others.”

And herein lies problem number one for Japanese hybrids: Read More >

ADAC is who responds to essentially every automotive Panne (breakdown) in Germany. And with the Germanic proclivity for thorough record keeping, they have kept them all, and analyzed them more thoroughly than any of Freud’s patients ever were. Did your mother have a flat in 1983? ADAC knows. And they’ve been using it to publish annual best and worst reliability rankings since 1978. If you caught the Toyota Starlet CC, you’ll know that it was the queen of the ADAC numbers, and the bane of Mercedes and the other (once) proud builders of  the world’s most presumably durable iron. Since ADAC doesn’t have an easy way to see all thirty year’s worth of the good and naughty, my Germanic side kicked in and I spent a chunk of last night transcribing them unto a spreadsheet, because…well, that’s just how Germanic I am. Read More >

Is this the most reliable car ever built? There are at least two very different but highly reliable  sources that suggest it may well be. One is of course its owner. And as we know all too well, one car does not make a proper sample size. But the other source does: ADAC: it has a virtual monopoly on responding to any and all breakdowns in Germany, sort of an Uber-AAA. Starting in 1978, in classic Germanic fashion, it fastidiously compiled Pannenstatistik on every Panne that ever stopped a car in the Vaterland. And the results? Let’s just say that at a time when Mercedes was considered the paragon of unstoppable German solidity and reliability, the Starlet smashed right through that reputation and drove the big-wigs in Stuttgart bonkers. Read More >

After years of spurning lithium ion batteries in favor of Nickel metal hydride cells, it seems Toyota might changing their mind. The Wall Street Journal reports that Toyota Tsusho Corp, which is 21.8% owned by Toyota Motor Corp., has secured the loans it needed from the Japanese government to buy a stake in a lithium project in Northern Argentina. The article states that “people with knowledge of the matter” (read in to that what you will), values Toyota Tsusho’s investment somewhere between $100 million and $200 million.

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Cross a car and a truck, you get an SUV. Cross a SUV with a car and you get a CUV. Cross that CUV with a car and you get a Crossover Sedan, the term used by Toyota marketing mavens for their Camry-based Venza. With this step the evolution comes full circle, as the Venza is really just a good ole station wagon. Not to be outdone, this year Honda released a Crossover Sedan of their own, only they don’t call it a Crossover Sedan. Instead, Honda says their new Accord “blends sporty, low-profile contours with CUV functionality.” Get the picture? Actually, the new Honda should be called the Accord hatchback. So it is that I evaluate these two new Crossover Sedans wrought from the DNA of two of the top selling cars in North America. First up, second place: the Toyota Venza.

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