One of the most closely watched quality indicators in Europe and especially in Germany is the annual TÜV-Report. With German thoroughness, the report tells exactly which cars were naughty or nice. It’s the law:  Three years after you buy a new car in Germany, it must be inspected by the Technischer Überwachungsverein. Thereafter, every two years. This is not your run-of-the-mill drive-to-the-gas-station-get-a-sticker exercise. At the TÜV, each car undergoes a thorough and invasive physical. Fail the physical, and it’s back to the shop. Fail again: No inspection sticker, get that POS off the road. No wonder that a date with the TÜV is considered as even less attractive than a meeting with the proctologist. One out of 5 cars fail the test on the first attempt.

Once a year, the TÜV compiles its TÜV-Report, using the actual results of the check.  This is no J.D.Power CSI. This is the real world, a report compiled with screwdrivers, flashlights, emission probes, brake testers. Executives at automakers await the report with high anxiety. Bad positions on the list can be career-ending.

The TÜV-Report 2012 will be published on December 16. Some results are already dribbling out, but the list itself remains under wraps. We twisted some arms and finagled an advance copy (your Teutonic old boys network at work.) Let’s see who will be promoted and who should polish his resume. (Read More…)

With a strong November under its belt, BMW is planning the festivities for a record year. The BMW Group sold 138,978 units in November, up 7.7 percent over November 2010. For the year, global sales stand at 1,510,862  units in the first eleven months, up 14.5 percent.  (Read More…)

Toyota will still be #3 in cars made this year, but in terms of profitability, it has become an also-ran. Toyota shares that fate with their Japanese peers at Nissan and Honda. The Nikkei[sub] tabulated yen-denominated group earnings of 10 major automakers worldwide for the July-September quarter and comes to the conclusion: (Read More…)

The car business is tuning into a mutual admiration society.  Volkswagen wants to be like Toyota, Toyota wants to learn from Nissan. Now, GM wants to learn from Volkswagen. GM’s Vice Chairman Stephen Girsky says that the new benchmark for GM is Volkswagen. (Read More…)

Despite still not having been amalgamated into the sprawling Volkswagen empire (blame the lawyers,) Porsche wants to do its share for Volkswagen’s all-out assault to the top. According to Strategie 2018, sorry, make that according to “Mach 18,” the Volkswagen empire wants to be on top in all respects before the decade ends. A small sports car company with barely 100,000 units won’t bring much volume, but they will try as much as they can.  “Porsche aims to double its annual U.S. sales within seven years by dramatically expanding its product lineup — while maintaining its U.S. dealer body at almost the same size,” Automotive News Europe [sub] reports.

Porsche won’t even shy away from the unthinkable – like bringing diesels to America. (Read More…)

The German new car market appears to be unimpressed by the European tribulations. Germans bought 269.144 new cars in November, up 2.6 percent compared to November 2010. This according to registration data released by the German Kraftfahrtbundesamt.

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Yesterday, first media day at the Tokyo Motor Show, the press corps was chased from press conference to press conference in 15 minute intervals. Today, the Fourth Estate was looking forward to lazy strolls through the halls, snapping pictures of attractive ladies cars, when an urgent email, followed by urgent telephone calls disturbed the peace: Come to the Grand Pacific Le Daiba at 4pm, when Toyota and BMW will hold a joint press conference. The local gang knows: When these short notice calls come, drop everything and show up, it will be interesting.

Toyota AND BMW? Let’s go! (Read More…)

In our last installment, our Sierra was found by one of TTAC’s Best and Brightest. Now our brown-hued “Salesman’s Spaceship” gets lost in shipping space for a few weeks, crossing a very large pond.  Don’t worry little British Ford, America will be very, very kind to you.

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Which European automaker is working on this compact, front-drive MPV? It might look like a VW or Opel, but in fact it’s coming from the Roundel itself. BMW will release this five-seat, start-stop-equipped van sometime in 2014, giving its Euro-market customers an alternative to Mercedes’s B-Class van. But because this is still a BMW, a two liter turbo engine option will be offered, giving this otherwise humble little MPV a 245 HP kick. Still, this will be the most prosaic offering from a firm built around rear drive and six-cylinder engines. And though Mercedes is bringing at least one front-drive model to the US market, expect BMW to maintain its premium positioning here by keeping this MPV in the European market, where such efficient vehicles are not seen as being incompatible with a luxury brand.

In an interview with Germany’s Handelsblatt, Volkswagen’s CEO Martin Winterkorn said:

„No question, 2012 will be come much tougher, particularly in Europe, and there especially in highly indebted countries like Italy or Spain.The market will shrink in 2012, and we will suffer from that. We expect the European market to get smaller next year. Also the developments in other areas of the world need to be monitored closely.”

On December 15, Winterkorn will prepare the Volkswagen management for the tough times. At a conference in Dresden, there will be “intensive discussions.” This according to an invitation Automobilwoche [sub] could get its hands on.

In Volkswagen-typical hyperbola, the „Strategie 2018“ has been renamed to „Mach 18“. It’s up to you whether you think this means 18 times the speed of light, or (read in German) „do it in 2018.“

Afterburners may be needed, because for the first time, Winterkorn is worried that he might fail: (Read More…)

German-Nipponese alliances are not going out of style, the Volkswagen/Suzuki soap notwithstanding. Toyota and BMW cut a diesel deal – if The Nikkei [sub] is correctly informed. They ran the story very early in the Japanese Saturday morning; hence no comment from Toyota is available. We’ll ask on Sunday, when we’ll see that mysterious RWD sports car.

According to The Nikkei, BMW will supply diesel engines for Toyota’s passenger vehicles sold in Europe. When and how many is unclear. (Read More…)

Suzuki’s suit against Volkswagen had precision timing. Or was very lucky. Volkswagen is heavily distracted by another suit, namely the EU Commission against the Federal Republic of Germany. Casus belli: The VW law. As indicated last week, Brussels is dragging Germany in front of the European Court of Justice. Brussels demands that the “special treatment” for Volkswagen is to be dropped. If the suit is successful, and if Germany remains obstinate, then a penalty of at least €46.6 million ($62.2 million) is demanded. A bargain, considering the hundreds of billions which are being moved around to avoid a meltdown of Europe. The fine would have to be paid by the German government, not by Volkswagen, writes Automobilwoche [sub] (Read More…)

Suzuki has made good on its repeated threats to sue Volkswagen. The Japanese carmaker initiated arbitration procedures. This according to Reuters, The Nikkei [sub], and sundry other media that has been covering the domestic  dispute between the couple.  Suzuki originally had given Volkswagen some time to consider and was planning for a repurchase of the 19.9 percent Suzuki shares held by Volkswagen. After Volkswagen CEO Martin Winterkorn denied the offer out of hand, and implicitly said that he was waiting for Osamu Suzuki to be replaced by younger blood, Suzuki said “mo takusan desu” (enough is enough) and filed papers with the International Chamber of Commerce International Court of Arbitration in London. Don’t expect a quick end of the drama. (Read More…)

Reuters reporter Ben Klayman, part of their stellar Detroit team, assisted by Christiaan Hetzner in Frankfurt, did a great piece about the grim options that await Steve Girsky and his merry band of hatchet men when they go over to Europe to whip Opel in shape. It could actually be the end of Opel instead of a glorious future, the report says.

“Options for restructuring Opel range from bad to worse and could include a form of bankruptcy, analysts and bankers say. Costs will have to be slashed further, steps that could include politically charged job cuts and plant closures in Europe. Girsky, who was named chairman of Opel’s supervisory board on Monday, could look for new partners for Opel to share costs, and even return to the idea of selling the brand once it has been repaired, analysts said.”

Adam Jonas, analyst at Morgan Stanley, Girsky’s former employer, says it best:

“You can’t say the words ‘all options are on the table, we rule out nothing’ unless there’s something fundamentally changing.” (Read More…)

One of my first jobs as a rookie copywriter in 1973 was the Passat. The Passat, basically a rebadged Audi 80, was the first of the new generation (Passat, Scirocco, Golf, Polo) that saved Volkswagen from eternal damnation and laid the groundwork for Volkswagen’s success today. (See, rebadging isn’t all that bad, it just has to be done right.) Ever since, well over 15 million Passat were built in all shapes and forms. And now, the Passat goes crossover.

First, the name: Passat Alltrack. (Read More…)