By on May 4, 2010

Arriving in Tokyo on a Tuesday noon, I find the Japanese delighted by the news of the rebounding U.S. auto sales.

To their utmost enjoyment, “Toyota’s sales grew at almost the same pace as Ford’s, rising 24.4 percent to 157,439 vehicles from a year earlier,” says The Nikkei [sub]. (Read More…)

By on May 2, 2010


As the Beijing motor show draws to an end on Monday, the cars on display will be rolled on car carriers and shipped back home. All except for 40 luxury cars with a combined value of $22m. They have been snapped-up at the show, they will remain in China, and their makers can save the money for the long trip home. (Read More…)

By on May 1, 2010

The Detroit News, by some regarded as the in-house organ of GM, has issues with GM. The DetN doesn’t like GM’s latest TV ad (“some future models shown”) in which Ed Whitacre proclaims that GM paid back its “loan, in full, with interest, years ahead of schedule.”

The “GM ad glosses over the reality” complains the headline of the article in which the former unofficial organ of GM rips Whitacre a new one. Says the DetN: “He’s technically correct because he clearly uses the word “loan.” Otherwise vague? Yes. Misleading? Depends on your perspective.”

Then, the sky is falling once again. (Read More…)

By on May 1, 2010

Speaking of April sales, American automakers and industry watchers are expecting a jump of nearly Chinese proportions when April sales will be announced on Monday. Easy: We are comparing with an April of 2009, when everybody assumed we’ll never buy a car again. (Read More…)

By on May 1, 2010

If anybody will again blather about a “weak yen” that has been “manipulated by the Japanese government,” then I’ll personally come visit, with the intent to insert a sock in the mouth. For reasons explicable only to forex mavens, the currency of the economic basked case Japan keeps on getting stronger. Japan’s car manufacturers think this will continue, and they are taking precautions. More precisely, they are taking production out of Japan. (Read More…)

By on April 30, 2010

Thank you, God, or make that Uzume, for keeping me alive long enough so that I can announce this: The Governator himself, that Austrian incarnate of Red, White, Blue, Mom & Apple Pie, has received a starring role in China’s Xinhua newswire:

“California Governor Arnold Schwarzenegger announced on Friday that Chinese manufacturer BYD Auto Company Limited (BYD) will locate its North American headquarters in Los Angeles.” (Read More…)

By on April 30, 2010

To stay alive, Opel wants to scale down. The factory in Antwerp is being closed. With amazing results for Opel’s bottom line: Closing the factory costs GM around €400m ($532m) in termination benefits. GM and the unions reached an agreement on the termination benefits earlier this week, reports Reuters. There are 2,600 workers in Antwerp. Now do the math: $532m divvied up amongst 2600 workers is a little bit over $200,000 per worker. Ouch! Wait, there is more pain … (Read More…)

By on April 30, 2010

Expo-nential growth

While (usually foreign) analysts are dead worried about the Chinese car bubble to pop and never to be seen again, Chinese car companies are happily raking it in. Western companies, mortgaged to the hilt, or on government life support, are developing a serious case of China-envy. (Read More…)

By on April 30, 2010

Germans are ready to buy an electric car. Under conditions: The car must come with a justifiable price, and with the performance one expects from a common ICE. In other words: Forget about it. Nein. (Read More…)

By on April 30, 2010

Japanese transport minister Seiji Maehara came to Washington and called on his U.S. counterpart Ray LaHood. Both agreed “that massive recalls of Toyota Motor Corp. vehicles should not hurt the Japan-U.S. alliance and economic relations,” Japanese officials quoted by The Nikkei [sub] said.

LaHood answered Maehara that the U.S. government is treating Toyota in a fair manner, and that Washington is handling the matter based on rules. (Rimshot.) (Read More…)

By on April 29, 2010

Ah, the amount of ingenuity electric cars trigger. They need to get charged. Cheaply. They need to get rid of the bad rap that creating electricity isn’t the environmentally friendliest endeavor on this planet. So what about wind power? Comes with its own set of problems. Mitsubishi and the Tokyo Institute of Technology got together and devised a method to use excess wind power to charge electric vehicles while saving the power company gobs of money, a.k.a. the dreaded capex problem. The result? A true wind-wind situation! (Read More…)

By on April 29, 2010

With all the tie-ups going on between Japanese and mostly European car makers, conventional wisdom had it that Honda would not take part in the nampa with the gaijin. Everybody saw them stay pure and Nipponese. Not so, said Executive Vice President Koichi Kondo yesterday to The Nikkei [sub]. They would very much like a little tete-a-tete with attractive suitors. They were the wallflower, because they were too shy and awkward. Now, Honda is ready to play. (Read More…)

By on April 29, 2010

Have you ever done serious business in Russia? Nyet? If you want to keep your conscience pure, don’t. It’s a “gotta pay to play” country. If you don’t make regular payments, the best that can happen to you is that you are out of business. In more serious cases, you pay with your life – a common currency in that country.

Behind that backdrop, it’s humorous to read that “the Russian Prosecutor-General’s Office has asked the United States to provide information about corruption that reportedly accompanied the sale of Mercedes limousines by Russian law enforcement agencies, Prosecutor-General Yuri Chaika told the Federation Council.” That according to Russia’s news agency ITAR-TASS. (It’s “sale to law enforcement agencies.” Someone with lesser English may have made a payment. See video.) (Read More…)

By on April 28, 2010

Here is one sad aspect to the inevitable consolidation of the wild and wooly Chinese car industry: It will reduce the amount of humorous material. Case in point: Zhejiang Gonow Auto, known as the creator of such memorable cars as the „Gonow Aoosed GS” will most likely not grace us with more unforgettable nameplates. True to its name, Gonow is gone. Well, not really. (Read More…)

By on April 28, 2010

When I was a kid copywriter on the Volkswagen account, grumpy but thorough VW engineers drummed one tenet of green into me: You don’t save gas with secret carburetors which the oil companies hide. You save by shedding weight. The less weight to push around, the less energy is needed to do the pushing. From the First Law of Thermodynamics to Einstein, all will agree. Like we agree on the need for a balanced diet. Then we go to the next Wendy’s, and order a triple Whopper. Despite the wisdom, cars tend to gain heft over the years like an erstwhile skinny Italian bella ragazza after the age of 30.

With tougher environmental regulations spreading across the globe, and CO2 mutating into a climate-ogre from something that used to provide the fizz in a soda, automakers remember the old engineering rule: Less weight, less gas, less crud. (Read More…)

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