Good morning! Two years after GM reneged on the Opel sale to Magna and Sperbank, the Times of London has the big scoop. GM cancelled the sale of Opel because the buyers wanted the right to sell its factories to a Russian state-owned car maker, says the Times, citing U.S. diplomatic cables revealed in Wikileaks. Really? You don’t say! We are shocked! (Read More…)

Today is the day when the Japanese majors announce domestic and global data for June and the half year. A little more than three months ago, a massive earthquake, followed by a devastating tsunami, paralyzed much of Japan’s infrastructure. It could not have come at a more inopportune time. The Japanese auto industry was already suffering from weak markets at home and abroad, paired with a rising yen that destroyed profits from exports.  Three months later, how big was the hit? (Read More…)

This handy pocket chart (print out and laminate), brought to you courtesy of the Freep, shows you the good and bad parts of the Detroit Metro when it comes to driving under the influence. We supply it in extra large, because- well, you know.

As you can see, in Detroit proper, the consequences of getting caught over the limit are pretty benign.

North of 8 Mile Road, matters get dicey. And the map tells only half of the story. (Read More…)

Alex Dykes will may have another chance to review  a Mercedes-Benz C 63 AMG Coupé, the 2012 model this time. Although after the last review of a “halfhearted approach to a hotly contested and prestige-generating segment,” it wouldn’t surprise me if there would be a sudden shortage of the car when Alex shows up. (Read More…)

14 millions Americans are out of work. The government is facing default. U.S. home prices are at their lowest level since 2003, and Robert Shiller, the economist who co- founded the S&P/Case-Shiller index of U.S. home prices, said a decline in property values up to 25 percent in the next five years “wouldn’t surprise me at all.” From Bernanke on down, everybody is scaling back the rhetoric that economic growth is just around the corner.  Suddenly, automakers aren’t so sure anymore about all that pent-up demand that will bring back U.S. car sales back to their old glory. Reuters asked around and didn’t come back with good news. (Read More…)

Porsche and Volkswagen are the typical German couple: Not married, with children. Formally, the two want to say “Ja” once the pending lawsuits are taken care of. In the meantime, the couple cohabitates happily. CEO Matthias Müller is made from Audi-DNA. He is a confidant of Martin Winterkorn, who is Piech’s man. Müller runs Porsche like a full-fledged Volkswagen division, down to doing his share to fulfilling Winterkorn’s grand “Strategie 2018,” the plan for world domination by Volkswagen. Under Müller, Porsche doesn’t chase Nordschleife lap times. Porsche chases volume. (Read More…)

Last week, a small Swedish parts supplier by the name of SwePart did not want to wait any longer and asked a Swedish court to declare a key Saab subsidiary, Saab Automobile Tools, bankrupt. Bankruptcy of the subsidiary would have meant the end for Saab as well.  Hectic activity ensued. On Friday afternoon, there was an announcement that the matter had been settled and the bankruptcy petition was withdrawn. Expect a run on the bankruptcy court in the coming days and weeks. (Read More…)

Automotive News Europe [sub] must have been bar-hopping with German auto execs. On the same day it unearthed secret anti-X6 plans by Daimler, ANE also heard that Opel will lauch “a new flagship model” by the end of 2016 or early 2017. Not only will it be a “big Opel”, the car “may come to market with alternative powertrains such as a fuel cell system to help boost Opel’s green image.” (Someone needs to tell Opel that in Europe, one does not need to be ashamed of big cars, just like Silverados are o.k. stateside.) (Read More…)

When BMW launched its X6 a few years ago, it was widely considered an abomination and a deviation from the true BMW way. Justin Berkowitz, while still working for TTAC, called it the BMW Xcreable X6 and claimed it was conceived while “a BMW X5 went out drinking with a Scion tC. They had way too much Jose Cuervo and yada yada yada…”

As it happened so often, the opinions of the experts were ignored by the market, and the X6 turned into a runaway success. Audi supposedly can’t stand on the sidelines. Now, Daimler is rumored to line up an X6 fighter of its own. (Read More…)

Life imitates advertising: Years after the un-pimp your Volkswagen ads with Teutonic blondes and lots of lab coats, Volkswagen at last gets a head of Advanced Design with a name to match: Luc Donckerwolke! (Read More…)

When I was a very young and very green copywriter, Dr. Carl Hahn, at the time CEO of Continental Tires and later CEO of Volkswagen, said in an agency brief: “We lose 10 Deutschmarks on every tire we sell.”

“Then we better stop advertising them,” said I.

Hahn gave me a pained look. The look was followed by real and massive pain in my left foot, because my Creative Director had kicked me viciously.

“Ouch!” I said.

“You’ve got that right,” said Hahn.

That little story crossed my mind when I read in The Nikkei [sub] that “Mitsubishi Motors Corp.’s electric vehicles and other eco-friendly offerings are expected to begin contributing to the firm’s bottom line in two years.” (Read More…)

Soon you’ll read all over Google that China has 217 million cars. Don’t believe it. It’s not true. (Read More…)

Why was Honda as much hit as Toyota by the March11 earthquake and tsunami? Doesn’t Honda have the bulk of its production outside of Japan? How could Nissan avoid most of the damage, even with an engine factory close to Fukushima?

It was a bit like a roulette game, and it involved a lot of chips.  According to industry talk in Japan, Nissan had taken a large supply of ECU chips before the quake. Honda and Toyota were waiting for their just-in-time delivery.  Honda and Toyota received most of their engine controller chips from one chipmaker, Renesas. Two weeks after the catastrophe, we had pointed out that Renesas and its damaged fab near the epicenter would turn into a major bottleneck. What’s more, Honda had no idea. (Read More…)

Say what you want about the nannyfication of cars, about gadgets that disturb the intimate relationship between man and machine. But a lot of the drastic decline of fatalities on the road goes on account of cars made safer with little electronics brains. Now, the brains think of people not even in the car. (Read More…)

Volkswagen just sold one of my inventions, and I didn’t get a dime for it. Volkswagen didn’t get rich on the sale either. After more than 20 years of trying not too hard, Volkswagen is getting out of the non-OEM service business and  sells its Stop + Go chain of quick-fit shops to the management.

“It was supposed to be an all-out assault on the non-OEM service business,” writes Automobilwoche [sub] in an eulogy. The attack ended in defeat. (Read More…)