In June, we reported about a catfight between Porsche and Audi. The bitching and eye-scratching was about who will design the kit for all future sports cars of the Volkswagen empire. The contenders: Audi and Porsche. The thinking was that the fight is just for show. And it was. If Automobilwoche [sub] has it straight, then Porsche will not just develop the mid-engined kit for all sportscars. Porsche will lead the engineering of the complete kit and kaboodle. (Read More…)

The Japanese auto industry is staring at the calendar like a rabbit at the snake. October 1, the rabbit will be dinner. October 1,  government subsidies for purchases of “environmentally friendly vehicles” (read pretty much any new vehicle that passes Japanese rules) will be no more. According to popular wisdom, come October, the Japanese new car market that had enjoyed double digits growth rates, will go poof and implode.

So what to do in a country where with the exception of flu masks, the Top 10 list of popular products ”was dominated by low-priced retail merchandise and eco-friendly products as consumers pinched pennies and took advantage of government stimulus subsidies” as Reuters put it? Simple: Local subsidies. (Read More…)

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…)

So there’s this huge metal stamping plant in Indianapolis. The current owner wants the workers to accept huge pay cuts so that the plant can be sold off to another buyer. The plant is a UAW shop. What does the UAW do? Paint picket signs? Threaten strike? Chant “solidarity forever?” Threaten to bust the rotten deal if the working stiff has to pay for it? Not this time. The plant in question is a GM plant. Through their union’s health fund, the UAW owns a good chunk of GM, and every owner of GM wants that stamping plant deal to close ASAP. There is an IPO in the works. (Read More…)

When I had business at Volkswagen, arriving at Wache Sandkamp, I was always asked whether I have a cell phone on me. “Ja,” I said. “Does it have a camera?” “Nein,” I said. The guard didn’t want to see the phone, and I could keep it.

At Chrysler’s big dealer convention, to be held in September in Orlando, they won’t be so lenient. Dealers have already been told to leave all cell phones, video equipment and cameras in their hotel rooms. To ward off the intrusion of rogue recording equipment, metal detectors will be put up at the show’s entrance. (Read More…)

Malaysia is a country of close to 30m people and Volkswagen wants a slice of the pie. They already tried, but found out that getting a slice is not a piece of cake. Playing footise with Malysia’s Proton was a perennial on again, off again affair that led to nothing. Last time, it looked like VW would set up a CKD operation in Malaysia by themselves, but now it seems that they have found a partner. Not Proton. Not again. (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…)

Remember jetgate? Imagine what congressional roasters would have said if they would have found out that their wards of the state not only own their own airline, but a sizable share of an airport? Unthinkable. In Germany, nobody bats an eye. (Read More…)

A bit more than a week ago, we reported that Geely might want to raise its stake in the London black cab builder Manganese Bronze from currently 20 percent to more than 51 percent. Ok, story, sit over there under the sign that says “Chinese stories, not happening.” (Read More…)

Remember the huge parking lots full of unsold cars? That picture was on everybody’s mind as they analyzed new Japanese inventory reports of cars and electronics. According to The Nikkei [sub], the stuff is piling up again, fueling angst about a double dip recession. (Read More…)

For the first time in recorded history, the Volkswagen Group sold (not just produced) more than 4m vehicles in the period from January to July. Actually, it’s 4.16m units. In the same period of 2009, they had moved 3.65m units. Which translates into a growth of 13.7 percent. In a communiqué, Volkswagen proudly announces that they outpaced the overall world market. Which had grown 13.4 percent in the same period. (Read More…)

We had been reporting for quite a while that estranged Ford and Mazda had filed for divorce that would annul their three-way ménage with China’s Changan. If you’ve ever been through a divorce (don’t remind me) you know that that can take a while and can drive you bonkers. Time for a celebration: (Read More…)

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…)

I know that stories about who will buy a down and out Korean carmaker called Ssangyong are not a major click-through magnet. Therefore, just for the record: Ssangyong selected India’s Mahindra & Mahindra as the preferred bidder to acquire a majority stake. And just in case, they named India’s Raghav Industries as the secondary preferred bidder, says The Nikkei [sub]. (Read More…)

If you are under water with your car, will any friendly GM dealer bail you out? Of course. If you live in what was formerly called “East Germany.” (Read More…)