Each year, the „Gesellschaft für deutsche Sprache“ (association for the German language) selects its word of the year. This year, the German WOTY is, you guessed it …
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When I did my first work for Audi in the 70s, competing with BMW or (gasp) Mercedes-Benz was considered a cruel joke. The brand was thought ideal for high school teachers or tax collectors, who kept their hats on while driving. What a difference a few decades make. Not to forget the money a rich sugar daddy called Volkswagen can sink into the brand.

Audi CFO Axel Strotbek told the German Handelsblatt that VW will pour €7.3b into Audi, from now to 2012. “80 percent is earmarked for developing new product,” Strotbek said. The money will go to a noble cause:
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VW CEO  Martin Winterkorn is a superstitious man. He doesn’t want to add a 13^th brand to his (or rather Piech’s) large collection. (Coincidentally, 12 is the number of Piech’s children. More or less. Nobody is quite sure,) “There are some who knock on our door. Some really want to come under our roof as they see we’re on a good path strategically. But we are satisfied with the current line-up,” Winterkorn said to Wirtschaftswoche.  Specifically questioned about Volvo or (gasp) Daimler, Winterkorn answered: „There are many who would like to snuggle in VW’s cozy bed. Thank you, not interested.”  Instead, he’s re-thinking the line-up of his new acquisitions:  “I could imagine a smaller Cayenne derivative. Or a Porsche below the Boxster. This is under discussion.”
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Hide the liquor, hide the women (or not): The supervisory board of Porsche and Volkswagen will get new members, all the way from Qatar. Sheikh Jassim Bin Abdulaziz Bin Jassim Al-Thani will be crowned new member of the Supervisory Board of Porsche Holding SE. Officially, this needs the votes of the stockholders meeting which will take place on January 29^th. But trust me, it’s all done.
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Last year, Porsche gave Magna an eight-year contract to build the Cayman and Boxster models from 2012 on. Then Porsche went to Volkswagen. Then Opel came. VW was miffed and said “us or Opel.” When Magna’s Opel deal went poof, VW said Magna can come home, all is forgiven. Apparently not quite. Volkswagen (or Porsche, hard to say these days…)  want to use the factories of bankrupt Karmann which Volkswagen had bought and cancelled the contract. Magna cried foul and wanted money.

Now, the matter is official, writes Automobilwoche [sub].
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Nick Reilly, head of Opel, or rather General Motors Europe, which supposedly doesn’t exist anymore, wants to be Superman.

In an interview  with the Financial Times, Reilly said that Opel should shoot for an operating profit margin of 4-5 percent within four years, if not earlier.

In the world according to Reilly, Opel will perform like this: Opel will face “another tough” year in 2010, when Europe goes on C4C withdrawal. Reilly sees Opel to break even by 2011 and make a “decent” profit from 2012.

Says Reilly: “If we are successful we should be at least 4-5 percent. Four to five per cent gives a good return on investment and capital … It shouldn’t take more than four years.”

Industry insiders think Reilly is hallucinating.
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Remember when Japan’s Nikkei said: “The latest round of partnerships is widely seen as just the beginning of a major shakeup of the auto making industry?” A kind of Japanese company, Renault (partner of Nissan) is engaged in heavy petting with yet another partner.

Reuters says French carmaker Renault is in talks with Daimler and others about partnerships. Areas covered include engines, transmission platforms, and access to new technologies, Renault COO Patrick Pelata confirmed today. He added: “We are discussing serious matters with Daimler.”
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What is the future of Opel? Here is the version of GM Europe’s interim-turned-permanent chief Nick Reilly. He gave an interview to Germany’s auto motor und sport magazine.  (Interview in the print edition, not available on-line.)

Of course, Opel according to Reilly will aggressively gain market share: “We are confident that we can not only maintain but also expand our market share in Europe.”

Opel currently holds a 6.5 percent share of Europe. Reilly wants to see that to “rise to 10 percent and beyond in the medium range.” And how will that come to pass?
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Freshly wedded Suzuki and Volkswagen are not losing any time in consummating the marriage. Joint work will start immediately, or rather on January 10, 2010 said Suzuki Chief Executive Osamu Suzuki to Reuters. With that date, Suzuki-San is already bowing to Wolfsburg’s ingrained culture. As of this coming Friday evening, everybody who is somebody at VW will be off skiing in Zermatt or soaking in the surf of the Maledives, not to return before January 10^th. No linkup with Suzuki will change that.
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First Renault and Nissan. Then VW buys a stake in Suzuki. Now Mitsubishi Motors  is in talks with PSA Peugeot-Citroen about a capital tie-up.

You’ve seen nothing yet, thinks Japan’s Nikkei. “The latest round of partnerships is widely seen as just the beginning of a major shakeup of the automaking industry,” says the paper that is usually well informed about these matters.

“Both Mitsubishi and Suzuki should take cues from Nissan Motor Co, which was rescued from the brink of bankruptcy in 1999 by French firm Renault SA.” says the Nikkei: Translation: Don’t just have small minority share and swap deals. Sell majority control to partners with deep pockets. And get ready for a serious battle for world market domination.
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From our “Gosh, the Germans take things so seriously” file, comes this video from Germany’s ADAC auto club in which a crash test facility is used to determine the best way of securing a Christmas tree to your car. Sachlich!

Yes, the world is officially crazy enough for Siemens and Ruf to consider building an electric Cayenne. Er, excuse me, eRuf Stormster. Range is about 110 miles, but the top speed is only 92 mph, presumably to prevent unseemly snickering at the prospect of running out of power after an hour of spirited driving. Let’s be fair about this: if the Stormster ever made it to production it should be good for about 90 minutes of “enthusiast” range to go with its nine second zero-to-60 time. Jerks.

GM’s new European Viceroy, Nick Reilly, surprised and astonished the participants of a Saturday conference call by saying that German aid, or no German aid to Opel, “it won’t make any difference to our restructuring plan, so it will not lead to more layoffs in Germany or less layoffs.”

Now what’s that all about? Wasn’t the line before “you either pay us, or you pay unemployment benefits, anyway, you’ll pay?”
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GM (probably with a little prodding from their buddies and new Chinese overlords at SAIC) realizes where the real value at Opel is: At the Opel Engineering Center in Rüsselsheim.

After yesterday’s press conference in which he had announced the ties with a stronger SAIC in China and India, Reilly spoke to 9,000 employees at Opel’s Rüsselsheim headquarters, Reuters reports.

The good news: 548 engineering jobs at the engineering center, formerly slated to be eliminated, will stay. The bad news?
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After writing about Spyker transferring production from the Netherlands to the United Kingdom, I thought I’d seen it all. Well, now I have. Production going OUT of Germany and into the United States. After much debating, Daimler have finally decided to switch some production from Germany to the United States. According to Reuters, roughly a fifth of Mercedes-Benz C-Class models will be built in Alabama by 2014, in hopes of protecting against currency fluctuations and maintaining profit margin. Naturally, the unions weren’t happy, in fact they downed tools in protest, claiming it was a “blatantly wrong decision.” Dr Z saw it differently, especially considering the move is said to be worth $100m in incentives from the state of Alabama.

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