Now, it is beginning to hurt: The European new car market crashed in February. According to data released by the European manufacturers’ association ACEA, new car sales were down 9.7 percent in February. Two months into the year, car sales in the EU are down 8.3 percent from the same period a year earlier. (Read More…)

For quite some time, Fiat-Chrysler CEO Sergio Marchionne has been busy lamenting the dreadful overcapacity in the European auto industry.  He’s doing I so much that slowly, people begin thinking that Marchionne is honestly concerned. “If I would be in his shoes, I would be concerned too,” said an audibly unconcerned European auto exec, who requested anonymity. My friend thinks that when Marchionne talks about the European car industry, he is talking about Fiat.

Now, Marchionne has a plan how to fix the chronic overcapacity at Fiat in Europe. (Read More…)

When the stock markets close in Europe today, PSA Peugeot Citroen and GM should announce that they are going ahead with the plan of GM buying seven percent of PSA. That according to “sources with knowledge of the discussions” that talked to Reuters. (Read More…)

As dark clouds bunch up over Europe the less healthy of the many European carmakers frantically look for friends that help them get through the hard times ahead. Fiat-Chrysler is “talking to everyone,” CEO Sergio Marchionne told Reuters. Marchionne isn’t picky when it comes to corralling companions: “We can be an active partner everywhere around the world.”

“Roughly, we’re looking at a number in the neighborhood of 20 percent of installed capacity that may be viewed in terms of being structurally redundant,” Marchionne said. I guess he wants (but does not dare) to say that every fifth car plant in Europe should be closed and its workers fired.

How does Marchionne want to do this? The American way: (Read More…)

Hear that chafing sound? It is analysts scratching their heads. They wonder why in the world would GM buy 7 percent of France’s PSA Peugeot Citroen. Bloomberg says this is about to happen. Neither GM nor PSA wants to confirm the deal. However, Bloomberg already has intricate details of the planned transaction, someone seems to be talking on deep dark background. Sounds like the odd couple is about to do it.

The question remains: Why? (Read More…)

GM and PSA Peugeot Citroen have a mutual problem: Losses in Europe. Now, the two want to share the burden. General Motors and PSA are discussing a broad manufacturing alliance, if today’s media reports from Europe are to be believed.

PSA and GM? (Read More…)

Toyota plans to more than double its exports to South Korea to 20,700 vehicles this year, says The Nikkei [sub]. The cars come from places that used to be import nations for Toyota: The U.S. and Europe. After announcing plans to export U.S.-built cars to South Korea, Toyota now is looking to bringing made-in-Europe cars back to Asia. (Read More…)

Volkswagen keeps dominating Europe’s Top Ten list (as compiled by Jato) in January.  An 11.3 percent decrease of the Polo did not cost it its number two place, thanks to the number three Ford Fiesta dropping even more. (Read More…)

Analysts predicted a down year for the European new car market, and the market complied. 968,769 cars changed hands in the EU, down 7.1 percent from January 2011. This according to data released today by the manufacturers association ACEA. (Read More…)

It used to be that “produce where you sell” is the answer to the rising yen. Amongst Japanese car manufacturers, Japan’s Godzilla currency is regarded as a bigger threat than any natural disasters. Mitsubishi is opposing this trend. It announced today that it will stop making cars in Western Europe. On closer inspection, this fits the “produce where you sell” strategy quite nicely. Mitsubishi is not doing so well in the Old Country. The Nikkei [sub] penned press-release worthy material when it wrote: (Read More…)

Renault and Nissan chief Carlos Ghosn continues to prepare the battlefield of world opinion for a drop in Europe. According to Ghosn, Automobile sales in Europe could decline two to three percent. For Renault’s home market, he expects a drop of five to six percent, Ghosn said in an interview with France Inter radio: (Read More…)

Allegedly a basket case, Europe finished the year without major losses, at least as far as new car sales go. 13.1 million cars were registered in the EU last year for aslight 1.74 percent loss compared to 2010. That according to data released today by the European auto manufacturer’s association ACEA. If the common market EU would count as one common car market, then Europe would rank second, after  China with 18.5 million, and before the U.S.A. with 12.8 million (excl. heavy trucks & buses.) But fear not, the EU does not count as one market, at least not as far as heavy metal is concerned. (Read More…)

Editor’s Note: Be aware that photos are larger than the usual format.

When I told friends that my European vacation would give me the opportunity to test a few European cars, their reactions fit a certain pattern: “So you’re going to be running around Europe in Porsches and Audis?” they asked. “Can I have your job?”

“No such luck,” I replied. “I’ve got a Hyundai station wagon and a VW minivan lined up.”

And though my friends may have been disappointed, I certainly wasn’t. After all, I expected great things from the Hyundai i40 I had during my first week, and I was actually quite excited to have secured a VW Sharan for week two. After all, I have something of a history with minivans (I drove a Grand Caravan in High School, the only vehicle I’ve ever crashed), and I was looking forward to comparing VW’s new Euro-MPV to its US “counterpart,” the Chrysler-rebadge VW Routan. If VW would rather sell a rebadged Town & Country than the slick little MPV I received straight from Wolfsburg with only 3,500 km on the clock, surely there was a reason. And I was determined to find it out.

(Read More…)

A pair of senior police officers in Brindisi, Italy were arrested Tuesday in a speed camera bribery scheme. The owner of a BMW X6 blew the whistle on officers Giuseppe Manca and Antonio Briganti after a speed camera accused him of driving 160km/h (99 MPH) on state route 16, where the limit is 110km/h (68 MPH).

The driver faced a fine of between 500 to 2000 euros (US $650 to $2615) plus license points. The officers offered to make the conviction disappear for payment of 250 euros (US $327) in cash. The officers were able to erase the conviction from the speed camera logs to prevent detection of their tactics.

(Read More…)

Editor’s note: be aware that the images are extremely large, in order to show off TTAC’s rare opportunity for amazing photo shoot locations.

What makes a flagship? It’s a question that gets to the heart of one’s philosophy as a car reviewer, and no better example exists to explore the issue than Hyundai. Here in the US, Hyundai’s unquestionable flagships are the large, rear-drive Genesis and Equus, well-equipped traditional luxury bruisers at a value price. And though these plush-but-understated cars sell well enough in these economically uncertain times (and they certainly help Hyundai embarrass the likes of Cadillac, which still lacks a true, large, rear-drive flagship barge), they don’t completely fit with the brand values that Hyundai has ridden to prominence across the globe. They’re not wildly efficient, they lack Hyundai’s dramatic “fluidic sculpture” design language, and they’re dreadfully conventional in light of Hyundai’s professed mission to promote “New Thinking, New Possibilities” in the automotive space. Indeed, they’re almost the last throwbacks to Hyundai’s old image of slightly stodgy cars that simply beat the competition hollow on value.

But if we look past the undeniable market logic to offering the Genesis and Equus in the US, it becomes clear that Hyundai has another flagship that almost perfectly captures the reasons the Korean brand has become such a force in the global car business in recent years. Though it might not be the right flagship for the US market, the Hyundai i40cw is far closer to representing the platonic ideal of Hyundai’s brand than any other car the brand offers. And as such it’s also just a damn good car.
(Read More…)