In an earlier analysis of Ford’s lackluster share price, we noted that Europe and China posed a significant problem for the automaker’s bottom line. Europe, which was previously pretty good to the brand, has gradually lost its share of the market since 1994. While Ford still moves a lot of metal in the region, something’s definitely wrong.

On Wednesday, Ford announced that its European operations had endured a $73 million second-quarter loss. It’s anticipating a full-year loss in the region after earning $234 million last year. “We’re extremely dissatisfied with our performance in Europe,” said CEO Jim Hackett.

Something has to be done to avoid further setbacks. According to Jim Farley, Ford’s head of global markets, the clear remedy is concentrating on vans and crossovers because that’s where the money is. It’s a similar strategy to what’s being done in the United States, where Ford eventually aims to cull the lineup to a point where the Mustang is the only vehicle that qualifies as a traditional car. But is it the correct one, considering how we’ve arrived at this point?  (Read More…)

The Rare Rides series will always have space for unique French cars. It’s featured several Renault vehicles and a couple of Citroëns to date, but only one Peugeot, to my recollection. That one, a 106 GTI, was an import to Canada by an enthusiastic second-hand buyer. Today we feature a second Peugeot: one actually sold by a dealer, brand new, in America.

It’s the hottest 405 sold in the U.S. — the excellently named Mi16.

(Read More…)

In what’s bound to be one of the most obscure editions of Rare Rides yet, today’s ride is very limited-production in nature. So limited, in fact, that only one was produced. And it’s so limited in its exposure that the Internet can’t seem to decide the year it was actually built.

It’s hard to know where to start with this thing.

(Read More…)

As the United States considers imposing new tariffs of up to 25 percent on imported automobiles and parts, the industry has rallied together to stand against the proposal. Manufacturers already made individual cases for themselves and are now dropping very bleak-sounding industry projections on the U.S. Commerce Department in the hopes of changing the administration’s mind.

However, President Donald Trump continues to promote the imposition of tariffs to force a sort of economic justice. For years, China’s protectionist policies regarding automobiles forced American manufacturers to build inside its borders and partner with Chinese firms for years. That’s something Trump claims could be a national security risk. China also recently upped its tax on American-made autos to 40 percent, shortly after promising to lower them. Meanwhile, Europe still holds a consistently higher tariffs on imported cars than the U.S., except for light trucks.

Commerce Secretary Wilbur Ross seems aware that China may have gamed the system in its favor, but appears less convinced that it’s a matter of national security. On Thursday, during a hearing on the probe into the industry, he said it was “too early” to say what the United States would do. Meanwhile, auto groups continue to make their terrifying case. (There’s also quite a bit of rolling PR in downtown D.C. today, as you’ll see below.) (Read More…)

We recently featured a little red Renault Fuego in this Rare Rides series. Though the sporty hatchback was successful in Europe, its fortunes were more bearish in North America. Renault intended to create a Fuego II with styling based on another sporty Renault offering, though money troubles at the company meant the project never came to fruition.

The car set to provide styling for the ill-fated Fuego II is right here — the Alpine GTA.

(Read More…)

The organizers of televised U.S. awards shows, who annually serve up a night of lectures, sermons, hypocrisy, and guilt for an increasingly small audience, should realize that the show doesn’t necessarily have to go on.

It’s certainly not going on in Germany. Axel Springer, a top publishing house for numerous German media sources, including AutoBild, has now wrestled the prestigious Golden Steering Wheel award out of everyone’s hands. There’ll be no thanking of grade school teachers by auto execs this year. Blame, well, the auto industry. (Read More…)

The ground beneath the factory Volvo Cars opened Wednesday in South Carolina grew shakier after company executives warned that the U.S.-China trade dispute could undo plans to create up to 4,000 auto jobs in the state.

As you probably know, Volvo is currently owned by Chinese automaker Geely — which has a lot to lose if trade relations break down. Geely intends to export Volvo’s American-built cars to markets outside the United States. The situation’s a problematic one, as Volvo also imports the bulk of its U.S. market vehicles and any economic hurdles would surely gum up the works. (Read More…)

The Toyota Camry holds the remarkable distinction of being a midsize sedan with U.S. sales that actually increased over the first five months of 2018. Impossible, you say. It can’t be. You’d trade your kids for a crossover, but wouldn’t stoop to pick up a “free sedan” voucher if you passed one on the sidewalk.

Well, it’s true. Year to date, Camry sales are up 2.1 percent in the United States. Last year’s introduction of an eight-generation midsizer seemed to halt the sedan’s sales decline, though we’d be fools to think it’s anything other than a temporary lift. Camry volume sunk 7.9 percent in May. June could send the model into the negative.

Toyota seems aware of this, too. Maybe that’s behind the decision to send the Camry somewhere it hasn’t been in years. (Read More…)

Even though General Motors gleefully offloaded its European division to the French, it still maintains a slight presence in the region. A powertrain engineering center in Turin, Italy remains in the GM fold, which gave the automaker an opportunity to dish on a much-maligned propulsion source: diesel fuel.

Hey, this stuff’s still useful, the automaker’s CEO of global diesel development, Pierpaolo Antonioli, told an uncertain European crowd this week. (Read More…)

Despite recent claims from Bosch that it’s prepared to save the diesel engine from becoming outlawed in Europe (which is like a prettier and less-free version of America), Nissan has announced its intent to withdraw sparkless motors from the market. Thanks to dwindling demand, the automaker claims it’s going to begin a gradual retreat until it no longer sells diesel vehicles in the region.

The announcement follows a similar plan unveiled by Toyota in March of this year and calls into question what the remaining Japanese manufacturers will decide in the months to come. Nissan said Monday that it will shift its focus to electrified vehicles, hoping the emerging technology can fill the void. But European manufacturers have the most to lose as the market changes.  (Read More…)

Today’s Rare Ride hails from beyond the normal reaches of even astute car enthusiasts’ knowledge base. It was the brainchild of some British executives who were convinced there was a market for the classic London Taxi in the United States. In addition to standard taxis, the company offered one that was thoroughly luxed and broughamed.

I’m just not sure.

(Read More…)

Today’s Rare Ride is a reader submission by one Eric T. Perusing Craigslist in Frasier Crane’s hometown of Seattle, he came upon this quite uncommon Volkswagen Passat wagon. It’s a variant never sold by American dealers, but available on the Canadian side of the border in very limited quantities.

It’s all-wheel drive, has a manual transmission, and is supercharged.

(Read More…)

Ford Motor Company has a lot invested in Europe. While the continent spent decades operating facilities under the lose leadership of Ford of Britain, Detroit acquired direct ownership in 1950. From there it extended its influence dramatically, buying up established European manufacturers near the close of the 20th century. But things haven’t always been good; economic hardships have been par for the course and things haven’t been easy in a long time.

Presently, Ford makes around $75,000 in profit for each of its employees in the United States. In Europe, that number is about $4,300 per worker. While we’re sure that makes domestic line workers feel entitled to a small pay increase, the point is that the profit margins across the pond are pretty slim for Ford.

However, unlike General Motors, the company doesn’t want to abandon the region. The automaker says it’s taking a renewed interesting in figuring how to keep profits up and is avoiding any speculation that it might duck out of Europe entirely. But let’s revisit its hardships over the last decade so we can establish a framework for why Ford is having a rough go of it.  (Read More…)

Two years ago, Fiat Chrysler CEO Sergio Marchionne could barely contain his enthusiasm for the Jeep brand and its barely-tapped global appeal. A sales juggernaut in America, the rugged, go-anywhere brand had a stable of models ripe for the global picking. All it needed was more local production, more new models, and voila — world-straddling dominance.

Two years later, and the brand’s growth predictions are starting to look less than plausible. Marchionne hoped for worldwide Jeep sales of 2 million vehicles in 2018, but last year’s sales may well have been a glass of cold water in the face. While the brand’s strategy could still pay off, it’s going to take longer than expected to reach Marchionne’s target.

Forget the minor markets — Europe needs to learn to love Jeep, America needs to pick up the pace, and China can’t back off now. (Read More…)

It has six cylinders, it’s front-wheel drive, and it carries cloth seats and an automatic transmission.

No, we’re not talking about your grandmother’s 1995 Buick LeSabre — today we’re discussing the stylish and French five-door liftback known as the Citroën XM.

(Read More…)