When Renault released their second generation Megane, people’s reaction pretty revolved around three words. “Whisky”, “Tango” and “Foxtrot”, if you know what I mean. I remember when I first saw it my first thoughts were “My goodness! It looks like someone’s made a massive dent in the back with a cricket bat.” But what did I know? It was voted European Car of the Year in 2003, was the first small family car to achieve a 5 star Euro NCAP rating, and went on to become a sales success. Now let’s look at Renault’s partner, Nissan. When the Juke came out, the reaction was pretty much the same to the Renault Megane. “What in the name of all that is holy is that?!” And now. the Renault-Nissan alliance has done it again. (Read More…)

With GM repositioning its IPO to target US retail investors, we find ourselves motivated to once again sound the alarm about one of the major drains facing The General’s taxpayer-provided cash pile: the restructuring of its European Opel division. Opel slated its Antwerp, elgium plant for closure earlier this year, but at the time GM was trying to find a buyer for the plant. In May we noted that automotive overcapacity on the continent made finding a buyer for Opel Antwerp a tall order, and sure enough, Bloomberg reports that a buyer has not been found. What Bloomberg leaves out of its write-up: GM is now stuck with the €400m ($530m+) bill to pay off all those unemployed workers. A half-billion here, a half-billion there… soon you’re talking about real money.

I used to play poker a lot. So I’m perfectly aware of the old adage “Strong is weak and weak is strong“. If someone is acting weak, chances are, they’ve got a good hand and are trying to lull you into a false sense of security. Likewise, if someone is acting bold, then there’s a good chance they’ve got “rags” and are trying to scare you off to collect the pot for themselves. Like when Cerberus purchased Chrysler. It was an open secret in the industry that Chrysler was ready for the knacker’s yard…again. But Cerberus still pushed ahead with the purchase. Eventually, Chrysler failed and Cerberus lost money. Which made everyone wonder “What were you thinking?” I have a suspicion people will start asking the same question about Toyota soon. (Read More…)

The government of Sweden’s Västra Götaland County has referred Saab to the Swedish Enforcement Service (Kronofogdemyndigheten) over nonpayment of a $16.2m loan, reports thelocal.se. The bill is for repayment of a portion of a roughly $45m in aid extended by the county to Saab during its first weeks of bankruptcy. Because the $16.2m portion was used specifically to guarantee employee salaries, the County is arguing that it is not covered by Saab’s 75% writedown agreement with creditors. Saab insists that the salary guarantee portion is covered by the cramdown, and says it has paid its 25 percent of the total loan.

(Read More…)

As The Wall Street Journal‘s Dan Neil explains, pedestrians aren’t just annoying, they’re also responsible (in part) for some of the most astonishingly dull designs in all of autodom… like the 2011 VW Jetta. Trends towards rising beltlines, strangely high hoods, reduced visibility, and general carved-from-cheese-ishness in automotive design can all be tied to European pedestrian crash test standards. With a little help from unimaginative designers, global product strategies and consumer apathy, of course.

Now we know why ACEA took a vacation last month: To spare Europe the drama involved in an 18.6 percent drop in the month of July.  Compared to that, the 12.9 percent drop in August looks like an improvement.  Back from vacation, Europe’s (Automobile Manufacturers’ Association  ACEA reported numbers for both months today, and at first glance, they look horrible. (Read More…)

This is the Hyundai ix20, a a European-style subcompact MPV in the style of Honda’s Fit. Or, more precisely, in the style of Kia’s Venga. In fact, the similarities between the new Hyundai and its Kia-branded predecessor are strong enough to hint at a future of GM-style brand differentiation issues for the Korean concern.  And here’s the real irony: both cars share a platform with the Kia Soul, an American-style B-Segment MPV (possibly the only car to fit that description). Couldn’t Kia have rocked the Soul and left the ix20/Venga segment to Hyundai? Or was the Venga simply too good-looking to die? Either way, these two taught twins are a bit close for comfort.

Remember the Saturn Vue? It’s back, baby, and more cannibalistic than ever. Starting in 2011, the refreshed Chevrolet Captiva will be undercutting Opel’s Antara, itself a rebadge of the same Daewoo Winstorm. Because what Opel needs right now is to prove that sometimes it’s worth paying a little extra for a German brand on your rebadged Korean Crossover. That’s what you call giving a brand a sense of purpose. Meanwhile, does anyone out there actually miss the Vue?

Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report

The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.

Barclays analyst Brian Johnson explains

This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t

(Read More…)

Via Autocar come these pictures of a jacked-up Fiesta variant undergoing development testing. Rumors of a Fiesta-based MPV have been rampant, as European competitors have been bombarding the B-segment with bigger, and/or butched-up new models like Kia’s Venga (and it’s forthcoming sibling, the Hyundai ix20), Opel’s suicide-doored Meriva, Toyota’s Verso S,and VW’s PoloCross. Ford’s Fiesta-based entry could resemble the brand’s Iosis-Max concept, and it will probably be built in Romania. Based on the dearth of camouflage, we’d also guess it’s going for the “butch” more than the “big” section of the B segment. Needless to say, it’s unlikely to ever arrive in the US, where the idea of taking a B-segment hatch into the dirt occurs only to the desperately  unwell.

As Germany tumbles, so does the rest of Europe (insert your own World War II or Euro currency joke here). As France, Italy and Spain withdrew their “bangers for cash” boondoggles, so did the public’s interest in new cars. The Wall Street Journal reports that in France new car sales dropped 9.8 percent compared to last year. However, according to the French car manufacturers’ association, if you factor out the extra working day in August, sales dropped by 14 percent. (Read More…)

When Opel needed a a low-cost subcompact for the European market, it did what all good car companies do: rebadged a Suzuki. And thus, the Opel Agila was born. For the latest version of the Agila, which debuted in 2008, Opel opted to let Suzuki build the car itself at its Hungarian plant (alongside the Suzuki SX4 and Fiat Seidici). It also tasked its Managing Director, a man known around the office as “Mr Opel,” with developing the new micro-MPV in partnership with Suzuki. For his trouble, Mr Opel (aka Hans Demant) was then shunted aside by GM, and ended up being poached by VW to head up “international project coordination.” Quite by coincidence (or not), VW’s biggest international project is in building new low-cost small cars with… Suzuki. Automotive News [sub]’s Paul McVeigh notes that

Neither GM or Opel has commented publicly on Demant’s defection to archrivals VW. But executives are said to be very angry in private.

But then, GM could hardly have expected Demant to stick around after having been shuffled off to “intellectual property protection” after nearly 40 years of service to Opel at some of the highest levels. The fact that he’d just been demoted at a time when Opel’s owners in the RenCen were enjoying record-low popularity in Germany made the move all the more likely. And because it’s happened at a time that Opel is struggling for its life makes the move just as damaging to GM as it is a windfall for VW.

Toyota’s Verso S will debut at the forthcoming Paris Auto Show, and these first pictures show that iQ-inspired styling is starting to creep across the Toyota small-car lineup. So does the edgier (by Toyota standards) iQ-inspired design language mean the shortest micro-MPV in Europe (at under 4 meters) might make it stateside as a Scion-branded van? Anything’s possible, but Toyota ain’t saying… for now.

When Spyker bought Saab from GM, they bit off too much than they can chew.  Spyker is upside down, under water, or whatever you call it when you have negative equity. They just announced that their debt exceeds their capital. And it looks like they have been dipped by GM: “The negative equity is due to the preferred shares that were issued to GM.” (Read More…)

Every month, at around the 15^th, the European Automobile Manufacturers Association (ACEA), sends out car sales numbers for the preceding month for all of Europe. It’s a regular TTAC fare. This month, you will have to do without. (Read More…)