Even though Fiat CEO Sergio Marchionne’s disparaging comments about its over-reliance on Italian manufacturing have opened the door for more US manufacturing opportunities, United Auto Workers boss Bob King wants to make it clear that he won’t be taking advantage of Fiat’s rift with its Italian unions. Fiat tells Automotive News [sub] that failure to secure Italian union agreement with its new manufacturing plan could send increased production to Serbia, Poland and even the United States. King’s response [via Michigan Public Radio]:
They (automakers) won’t be pitting one worker in one country against another. We’re going to be part of working with our global partners in other unions and building a global middle class – and rebuild the American middle class, really.
Yes, in the brutally competitive international labor market, there is a way for everyone to win… really.
No story should ever start, as this one does, with “my First Rover Metro.” The implication that there are more Metros to come is all too obvious, and could probably be best categorized as a “cry for help.” In any case, my first Rover Metro was a teal 1995 1.1L Kensington edition, purchased for £60 from a friend in Bishop-Stortford. The Kensington edition meant I got shards of carpet over the door panels, and the kind of pizzazz that only an engineer from Coventry would be able to come up with. The Metro lasted only 19 hours in my hands before a brake failure led to its demise into the back of a yellow Hyundai. My second Rover Metro was a 1997 Tahiti Blue 1.1L Ascot edition*, which meant I got full wheel covers and blue piping in the velour. This only accelerated my descent into the world of English motoring, where I found joy and fulfillment in the death rattle of a Rover K-series engine.
*astute readers will recall that both vehicles are technically Rover 100’s, but are always remembered in pop culture as the Metro.
Given that European luxury brands have generally had their way with Detroit-based competitors in the US market, it should come as no surprise that Cadillac has failed to make any appreciable headway in the European market. The brand has been launched and re-launched in Europe four times in the last twelve years, according to Autocar, and its latest relaunch was supposed to boost sales to 20,000 per year by 2010. Despite that ambitious goal, Cadillac has fallen flat with European buyers, having moved about 1,300 units this year. As a result, the latest re-launch of Cadillac has been accompanied by dramatically scaled-back expectations: 2,500 units per year within the next “several” years (Cadillac expects the new ATS to make up about 1,500 units of this volume). Only limited numbers of CTS sedans and wagons will be converted to right-hand drive for the UK, and diesel engines for the CTS range are on hold. But even with a more modest approach to Europe, Cadillac is widely expected to keep struggling in Europe. After all, Lexus spent some $2.8b attacking the European luxury market, but sales which peaked at 60k in 2007 have retreated to a mere 30k units. As Cadillac gets stuck into its fourth re-launch, analyst Ferdinand Dudenhoeffer is not optimistic
The brand Cadillac has no fascination for Europeans and no customer base. Why should I go from Audi, BMW, Volvo or Mercedes to Cadillac? Lexus has shown us how much investment is needed to do that… My forecast is, they (Cadillac) will not be in the market in Europe by 2020. Some people might buy one in the U.S. and export it to Europe. That’s it
Notice a difference between these two pictures? No, not the fact that one is a sexy press shot and the other is a bush-league amateur snap. Both pictures show the 2011 Volkswagen Jetta, but one of them has a torsion beam rear axle, the other has a variation of the Golf’s multilink setup. One has a 2.5 liter blunt instrument of an engine and a slushbox, the other has a high-tech “twincharger” engine that won the International Engine Of The Year award two years running, mated to a dual-clutch ‘box. One has a nasty, plasticky interior, the other offers “higher quality materials and trim.” By now you’ve probably guessed that the less desirable of these two Jettas is the US version, and the fancy-pants version has just been announced for the European market… (Read More…)
Editor’s Note: On Monday, TTAC’s Martin Schwoerer wrote about a planned record-breaking non-stop run of 600 KMs, from Munich to Berlin, with a car that was equipped with a “revolutionary” electric battery system. Something smells funny, he said, and vowed to donate 100 Euros in case the drive was completed. Well, it was. So, how does it feel to have pie on your face?
How about Vegetarians Against the klan? Or maybe the Tugg Speedman Foundation? No, there are probably better organisations to give my money to. Guess I’ll ask the Best & Brightest… (Read More…)
No automaker has more to gain –and lose– in the early-adopter EV game than Renault-Nissan, and CEO Carlos Ghosn knows how the game is played. Nissan is investing $4b to rollout electric cars in the US, Japan and select Western European markets at the end of this year, but despite being committed, Ghosn insists that EVs aren’t ready to stand on their own yet.He tells Automotive News [sub] that
These are mature markets where governments give incentives to consumers. Two years of government support are needed to jump-start these markets and then the products will grow on their own and take off
The Financial Times reports that Anti-trust officials in Switzerland are investigating the Bavarian car maker due to allegations made by a Swiss consumer TV show. The TV show sent undercover reporters to BMW dealerships in Germany (Swiss and Germany share a border, you know) to try and buy a car. The show claims to have found that BMW is blocking its dealerships in European countries from selling their cars to Swiss residents.
What makes this particularly egregious is that although Switzerland isn’t a member of the European Union (they like to stay neutral), it does have Bilateral trade agreements which guarantee free trade with its neighbors. Restricting trade? Under a free trade agreement? Uh oh…
We live in annoyingly ideological times, in which people get worked up about gay marriage, Christopher Bangle, or what religion their neighbor belongs to. This is foreign to me. If it works for you, then go for it, I always say. You like some wheels, you buy ’em; if you don’t, don’t.
So, it’s hard for me to understand what the fuss is about the Chevrolet Volt. It’s just a car, for Pete’s sake! On the other hand, I am a notorious gearhead and can appreciate the importance of what seems to be a totally new automotive concept. It’s new, but does it point toward the future? Let’s discuss it.
You know that something is a fad when A) it’s bubbling on the stock market or when B) snake-oil salesmen tout the newest revolution, and regular folks actually start believing them.We’re not quite there yet with “A)”, but check out what I call an exhibit for “B)”. (Read More…)
Having been handed a bankruptcy-rinsed Chrysler by the American government, Fiat’s Canadian-born CEO Sergio Marchionne is beginning to see Italy as nothing more than aging, uncompetitive factories and troublesome unions. And now he’s not just telling the Italian media that not only would Fiat be better off without the country that birthed it. According to Reuters
The CEO added that not a single euro of the 2 billion euros ($2.8 billion) of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat car passenger plants are loss-making.
The funny part: Chrysler still holds a value of precisely zero dollars on Fiat’s balance book. And with the Fiat and Alfa-Romeo brands headed to the US, Italian-ness is still an important element of Fiat’s identity. But until Marchionne’s Chrysler revival and Italian invasion take hold stateside, and as long as mother Italia is a drain on its resources, Fiat might be best described as a Brazilian company.
Italian speakers can enjoy Marhionne’s interview here.
Porsche has made much of its hybrid drivetrain development efforts, pointing out that its founder helped create the world’s first hybrid drivetrain one hundred years ago. But thus far, the talk has centered on Porsche’s “rolling hybrid laboratory,” the 911 GT3R Hybrid, and the Hybrid Cayenne, with the plug-in 918 Hypercar lurking across the horizon. But, Porsche’s development chief Wolfgang Duerheimer tells Automotive News [sub]
In the future, we will have hybrid drive in every model line
First up will be a Panamera with the Cayenne’s hybrid V6 drivetrain, arriving sometime next year. Duerheimer won’t give a timeline for hybrid versions of the 911, Boxster and Cayman, but he does admit that hybrid drivetrains aren’t the only way for a sportscar firm to shave off the 41 grams of C02 per kilometer that Porsche needs gone by 2015. (Read More…)
Launching a new car division is tough. A monumental task, you might say. And it has to be executed just right. I’ll give you an example, look at Lexus. When Lexus was launched in the United States, it was a hit. It didn’t take much to separate American drivers from their Cadillacs, Lincolns and Buicks. Now compare this to the European launch. Lexus never really took off. Why? Well, a good reason would be that when Lexus starting exporting to Europe, Germany was making luxury cars to a high standard already, so Lexus was nothing special. Hyundai knows this. (Read More…)
The European Car Manufacturers Association ACEA has released its September numbers for Europe. A quick look at the chart will tell the trained eye: Things are getting back to normal. Keep in mind, we are comparing with a totally abnormal 2009, when some countries injected amphetamines into their car sales to drive consumption to all time highs, and where other less fortunate countries saw their markets crash. Usually, it was the markets without indigenous car production that saw little sense in propping-up the economies of Germany, France, Italy and some other minor countries with car production – EU commonness notwithstanding. In September registrations of new cars decreased by 9.6 percent compared to the same month of last year. However, over the three first quarters of 2010, registrations were 4.3 percent lower compared to the same period of 2009. And that’s the not so interesting part of the story. (Read More…)
America has always been a land of extremes, and our automotive scene is no different. While current automotive debate obsesses over a high-efficiency halo car, our domestic auto industry is mounting a comeback largely on the back of pickups and large cars and crossovers. Meanwhile, we’re falling behind in the quest to make all cars more efficient with practical “bolt-on” systems like “stop-start” or “microhybrid” systems that turn off gas engines at stops. So what are we missing out on? According to a report from SeekingAlpha, stop-start systems provide
estimated fuel savings range from 5% in government mandated tests and 10% under real world city-highway driving to almost 20% in congested city traffic
Which would provide a hell of a lot more fuel savings than any high-price, limited-production eco-halo car. But, as Mazda has complained, the US EPA test cycle doesn’t provide any Monroney Sticker advantage to stop-start systems, even if they provide real-world improvements in fuel efficiency. Maybe instead of trying to keep EVs and plug-in halos on subsidy life support as long as possible, our government should be looking at ways of incentivizing across-the-board efficiency improvements like those offered by stop-start systems.
The EU has ambitious CO2 targets: Less than 130g/km by 2012, less than 95g/km by 2020. Carmakers are shaking their heads: No way! Even the most electro-agnostic firms tinker with EVs (even if they are from Japan) to bring their average down. “No problem,” says a new study. The targets are a cinch to reach. What’s more, no heavy and expensive batteries to lug around. use the existing engine! No range anxiety. What is that miracle technology? (Read More…)
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