U.S. Transport Secretary Ray LaHood is in Japan today. He’s looking at trainsets. Japan is bidding on the U.S.A.’s (long in the) future high speed rail network. So is everybody else in the world, including the Chinese. Good luck to both of them. While in Japan, LaHood personally inspected Toyota’s safety facilities in Toyota City to see whether they are up to snuff. You think Mr. “Feet to the Fire” LaHood gave Toyota a clean bill of health? Think again. (Read More…)

If you listen to the commentators, you’ll believe that tax breaks and stimulus measures are the sole reason for China’s car boom. It turned the country into the #1 car market in the world. What’s more, the boom continued unabated in 2010. Wonks are worried that the market will crash when the stimuli are withdrawn. Don’t worry. There will be new ones. This time, for electric cars. (Read More…)

The sun had long set over Tokyo on a Friday night, and the hardworking executives had ordered their last round in the Ginza hostess bars, when The Nikkei [sub] put on the ticker that Consumer Reports magazine has lifted their “do not buy” fatwa against Toyota’s 2010 Lexus GX460.

Last month, the magazine issued their damning assessment after the SUV scared the dickens out of the testers: (Read More…)

Did we say that Japanese brands have to do something to stop the erosion of market share in China? Nissan took the advice and said today that they started construction of their second factory in China’s southern Guangdong Province. According to The Nikkei [sub], the factory will open in 2012 with an annual capacity of 240,000 vehicles. (Read More…)

This car won’t have a problem with CAFE rules. Around the world, Shell is conducting Eco-Marathons. The mission: Who gets the farthest on just one liter of fuel. Team Polyjoule from France’s Nantes Polytech turned a quart of gas into 4,414 kilometers, reports Das Autoshaus. If I didn’t make a mistake in my calculation, that’s 10549 MPG. More or less. Staying the whole 4,414 km in the coffin-like contraption should receive an extra prize. (Read More…)

As if the Japanese don’t have enough problems in China, now the Chinese are beating them at their own game: Quality.

“Many Chinese automakers are focusing on improving their quality control by introducing techniques developed in Japan and elsewhere overseas.” This assessment doesn’t come from a propaganda arm of the Chinese car industry. (Read More…)

There is a major shift underway in the Chinese auto market. Cars are morphing from something exclusively owned by the rich to an everyday item. Sure, luxury cars are big in China. But the volume growth is in low cost cars. As a result, the market share of sino-foreign joint ventures is eroding. Local players, such as BYD are gaining fast. The foreigners are getting worried. (Read More…)

It’s tough to be a European car maker with a governmental sugar daddy. First you have to make nice with your sugar daddy, and commit unspeakable acts until he shakes loose a few hundred million Euro. Then, the prudes from Brussels shoot the stipend down. Your sugar daddy can say: “Darling, I tried.” He then can go on with the business of bailing out Mediterranean states. So it happened with Renault. So it might happen with Opel. (Read More…)

France’s PSA wants a bigger slice of the growing Chinese pie. They agreed to set up a joint venture with government-owned Changan. Peugeot already has a joint venture with Changan’s rival Dongfeng, while Changan has a joint venture with Ford. Nevertheless, the new JV will “not compete directly with other partnerships,” the companies said in a statement published by Bloomberg. (Read More…)

The Japanese new car market, long believed to be down, out, and a victim of the dreaded demographic bomb, remains on its steep upward trajectory. With a little help from Japan’s benevolent government. Japan’s domestic sales of new cars, trucks and buses increased 33.5 percent from a year earlier in April, the Japan Automobile Dealers Association said today as per The Nikkei [sub]. That’s up nine months in a row. One brand is especially happy. Name starts with a T. (Read More…)

One by one, European countries will scrap their scrappage incentives this year (if they haven’t already.) With predictable results: Without the governmental amphetamine, the market will be down.  How much? (Read More…)

As TTAC readers well know: There is a huge E85 flex-fuel loophole in the new federal fuel economy CAFE standards. Ford will drive right through that barn door-sized hole.

By the end of this year, Ford wants to deliver 370,000 flex fuel vehicles, a number which they can trade against fuel oinkers. Let’s review:  A flex-fuel vehicle is one that is capable of running on E-85. But it doesn’t have to. It can also run on straight gas. Or on any mixture of the two fuels. As long as it’s E85 capable, it counts at least for a Peppermint White Chocolate Mocha at the DC CAFE. (Read More…)

When German car sales exploded in 2009, fueled by government incentives, everybody knew there would be hell to pay in 2010. Sure enough, the market cratered in January and February. In March, new car registrations were down 26.6 percent, but at least, they had caught up with 2008 pre-carmageddon levels. So the thinking went: If the market continues that way, it might get back to its old normal, and the pull-forward theorists will be proven wrong. Then came awful April … (Read More…)

China’s ravenous appetite for new cars shows no signs of restraint. The Chinese news agency Xinhua quotes the China Automotive Technology and Research Center (CATRC), which says that sales of domestically made vehicles hit 1.39 million in April, up 40 percent from the same period last year. (Read More…)

Did you ever arrive in a foreign country, and the plug of your battery-depleted cell phone did not fit? Or worse, it did fit, and the charger went up in smoke? That’s nothing compared to the impending EV disaster. Buy an EV, and you will find yourself between the battle lines of plugs, voltages, and technologies. Imagine the horror: Guided by your GPS, you limp into a charging station on the last watts in your battery, and their round plug doesn’t fit your square socket. (Read More…)