Tag: Germany

By on December 2, 2009

Tempting fate again? Picture courtesy avertinghumanextinction.org

Pundits had prognosticated that the withdrawal from Deutschland’s Dexedrine called Abwrackprämie would cause a serious case of dopesickness, and that the market would crash. They must be disappointed by the numbers released today by Germany’s Kraftfahrtbundesamt. Three months after the last dose of the €5b of cash-for-clunker money had officially been injected into the German market, it’s still powering ahead. In November, Germans bought 19.7 percent more cars than in November of the prior year.  In the eleven months of the year, Germans bought 3.59m new cars, that’s 25.4 percent more than in 2008.

Germany won’t close out the year with 4m cars sold, but it will be close. That’s a third more than the usual 3m cars sold a year in Germany.

Two items should be kept in mind:
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By on November 27, 2009

Chop, chop. Picture courtesy campist.com

Roland Koch, the premier of Opel’s home state Hesse is pissed. GM’s plans to cut 2,500 jobs there are “completely unacceptable.” Koch said that Nick Reilly had told him just 24 hours earlier that GM’s restructuring plan would “in principle” orient itself on job cuts agreed with Canada’s Magna.

We know what Reilly will say. The Magna plans called for 10,000 cut jobs all over Europe, GM wants to cut only 9000, so “in principle” that’s a better deal. Except for the Germans.
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By on November 25, 2009

Wennemer’s vision. Picture courtesy bild.de

European governments that are lured into propping up GM’s Opel should resist the urge, said former Continental AG Chief Executive Officer Manfred Wennemer to Bloomberg. Why? It will cost them twice.
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By on November 24, 2009

GM is no longer in hock with Germany. They paid back all of the €1.5b bridge loan Opel had received from Berlin to keep it afloat until it was taken over by Magna and Sberbank. As we all know, this didn’t happen. Berlin wanted its money back, and got it.

“I can tell you that the last funds for Opel have been paid back by General Motors,” said German Chancellor Angela Merkel. “I expect at least a thank you letter from General Motors in a few years.” There isn’t much love lost between GM and Berlin these days.
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By on November 24, 2009

Fröhlich and  Adolf’s Benz. Picture courtesy TheLocal.de

According to the German tabloid Express, Düsseldorf antique car dealer Michael Fröhlich has found Hitler’s car, a blue Mercedes 770K. Fröhlich started searching after a request by a Russian oligarch. He tracked the car to Austria, to where it had been sold for 2000 Reichsmark after the war. From there, the car went to the car museum of the Imperial Palace in Las Vegas. It was sent back to Germany into the collection of a loaded owner of a brewery in Munich. It finally ended up with a collector in Bielefeld. The collector had 5 more of the Nazi cars, one of them formerly Joachim von Ribbentrop’s daily driver.
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By on November 23, 2009

Better you than me (courtesy: The WSJ)

General Motors made one point very clear, 100 percent clear, the restructuring plan could only be achieved when European member states with Opel plants give some financial help. So the plan works only with state aid. The idea that General Motors can finance this on its own was not shared by General Motors, this possibility does unfortunately not exist

EU Industry Minister Guenter Verheugen reveals to Automotive News [sub] that GM does indeed seem to be trying to limit the amount of US taxpayer money spent on its $4.9b rescue of Opel. GM’s Opel fixer Nick Reilly explains “we have indicated that we will inject some GM funds into that requirement too. That is quite difficult because we are also going through a restructuring of our U.S. operations and other parts of the world.” We’ve already seen loans for jobs floated in the UK, where Reilly came up just short of offering to save Vauxhall jobs for government restructuring loans on a quid-pro-quo basis. And GM will have to continue walking that fine line, as EU competition rules forbid member states from offering financial support in exchange for jobs, especially if the saved jobs come at the expense of jobs in another EU member state. But Germany’s leadership was humiliated by GM’s decision to drop the sale of Opel to Magna, and has already ruled out funding an Opel restructuring that would keep the automaker under GM control. Will Belgium, Spain and the UK be able to come up with enough money to make the restructuring happen? Or will GM simply be forced to dip deeper into its taxpayer-funded escrow account? GM’s plan will be announced this week, and we’ll be watching.

By on November 22, 2009

Fiat is facing a new distraction. While Sergio Marchionne has worldwide plans with zombie Chrysler, Fiat is facing an insurrection at home. Well, close to home. The German dealer council of Fiat has unanimously decided to sue Fiat Germany.

Two actions by Fiat raised the dealers’ ire:
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By on November 19, 2009

(courtesy:ibtimes.com)

Automotive News [sub] reports that GM will rush out its $4.9b restructuring plan for Opel in December, as it seeks to ease worries on the continent about the fate of the troubled division. “Our plan is very similar to Magna’s. I don’t think it’s worse,” GM’s Nick Reilly told reporters near Opel’s largest plant in Zaragoza, Spain. Reily has said that as many as 10,000 jobs and 20 to 25 percent of Opel’s production capacity could be cut in the restructuring. Though Reilly refused to indicate where cuts could take place, he did say that GM would not transfer production from Zaragoza to Eisenach in eastern Germany, as Magna had planned to do. He also previously implied that British government loans could prevent or mitigate a planned 800-job cut at Opel’s Vauxhall operations in Britain.

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By on November 18, 2009

Possible outcome? Picture courtesy torontocat.ca

For Monday, November 23, EU Economy Commissar Günther Verheugen invited all EU Economy Ministers to come to Brussel to attend an Opel summit. GME’s new chief Nick Reilly will also attend, reports Unternehmer.de. The idea behind the meeting is anti-competitive: “The Commission is strictly against any bidding war with subsidies,” Verheugen said. Any government help for GM and Opel will be subject to intensive scrutiny from Brussels. Verheugen doesn’t want to rule out government help, as long as EU rules are not broken.

Don’t read too much into this meeting.
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By on November 14, 2009

Volkswagen showroom in Beijing. Picture courtesy guardian.co.uk

When Magna was buying Opel (along with German help and alleged Russian mobsters) Volkswagen made noises about dumping them as a supplier. Vergeben und vergessen.

“If Magna doesn’t act like a competitor, we will continue to do business as usual,” a Veedub spokesman told German tabloid BILD (via Reuters.)

Now is not the time for VW to switch suppliers anyway.
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By on November 14, 2009

The interview that shut the door on German government help. Whitacre and Merkur correspondent Friedemann Diederichs. Picture courtesy merkur-online.de

An uncouth interview, given by GM Chairman Ed Whitacre to the German newspaper Muenchner Merkur at the sidelines of an event at the Texas Lutheran University, has shut the doors on any donations Berlin may make to Opel’s cause. Aus. Vorbei.
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By on November 12, 2009

Born and bred in Deutschland

The single trim level is what tipped us off, and if we’d looked closer at its spec sheet, we’d have seen that its manufacturing location is listed as “Rüsselsheim, Germany.” Automotive News [sub] reports that Regal will be built in Germany for 15 months before production shifts to Oshawa. Which makes the Regal even more of an odd duck. In addition to being stuck into GM’s bursting lineup of Epsi-II midsize sedans, it’s also losing whatever profit it might have made on the dismal foreign exchange rate and the boat ride over from Europe. Or it will be just plain overpriced. Think of it as the love child between a Saturn Astra and a Pontiac G8. And another sign that some things never change.

By on November 11, 2009

We win.

The catalyst for all this was the EU saying you only made the money available to one investor. The board did what they should have done and revisited the issue… It’s been a confusing decision, but I don’t think it was handled badly. The circumstances changed from the time this started. The financial part of the business got better. Conditions have changed.

GM Chairman Ed Whitacre on the decision to keep Opel. Financial? Better? Because EU regulators said so? How anyone can see the Opel situation as a “sign of change” is beyond me. GM never wanted to get rid of Opel, they just didn’t want to pay the $8 bil, er, $3 billion to keep it. Too bad German Economics Minister Rainer Bruederle says it’s actually going to cost a cool $5b to restructure Opel. Which GM will just be cannibalizing with Chevwoos anyway. Is any of this not sounding like Old GM?

By on October 23, 2009

That bird is done. Picture courtesy tripcart.typepad.com

A certain website that concerns itself with facts about automobiles, had opined more than a month ago: “Once matters move to Brussels, they come to a crawl. Whoever wins the German elections has all the time they want to dispose of Opel. If it goes kaput, they can blame the Americans and Brussels.”

The Opel matter finally moved to Brussels. EU competition commissioner Neelie Kroes said, she could set aside her considerable qualms about the GM-Opel-Magna-Sperbank deal, if only all parties involved would send her a simple letter that certifies that the deal had not been reached under political pressure. All parties involved, meaning GM, the Opel Trust that officially owns Opel, and the German government. Scout’s honor. Cross your heart, and swear to … exactly.
(Read More…)

By on February 8, 2009

Rolls-Royce used to advertise the fact that their cars were so quiet that the loudest sound you heard was the [analog] clock ticking on the dash. Who said the British don’t do hyperbole? As a quiet car connoisseur, I’d have to say a Clinton-era Cadillac provided the quietest ride I’d ever experienced; if the time was one of peace and prosperity, then so was the car. Nowadays, automakers are telling us that their cars are quiet, or at least quieter than ever before. I’m not buying it. A number of recent drives have been notable for their aural uncouthness. So I set out to find the truth about automotive sonic signatures. Has nostalgia dimmed my memory (if not my hearing)? Is progress on the noise suppression front been less impressive than industry propaganda would have you believe?

The German buff book Auto, Motor und Sport recently opened its archives to tightwads. I’ve spent a few hours perusing the decibel stats. To save space, the table I’ve compiled only deals with interior noise at about 80 mph (130 km/h). It’s a civilized speed (at least here in Germany) at which one would want to be able to hold a civilized conversation, even with a back-seat passenger.

Car and model year Interior noise in dB(A) at 80.78 MPH

1995 BMW 728i 66

1995 BMW 523i 66

2003 BMW 730i 66

2009 BMW 330d 68

2009 Mercedes C350 CGI 68

2009 Renault Megane dCI 69

1996 Mercedes C280 69

2008 Mercedes C250 CDI 69

1996 Citroen XM V6 69

1995 Audi A6 2.8 69

2006 Mercedes E220 CDI 69

2006 BMW 520d 69

2000 Ford Mondeo 2.016V 69

2009 Ford Mondeo 2.5 Titanium S 70

2006 Audi A6 2.7 TDI 70

1996 Mercedes E230 T 71

2003 Toyota Camry 2.2 71

2009 Toyota Auris 2.0 D-4D 71

1995 Honda Civic 1.5i VTEC-E 72

2009 Honda Civic 2.2i-CTDi 72

2002 VW Golf 1.9 TDI 72

2009 VW Golf 2.0 TDI 72

2009 Opel Astra 1.9 CDTi 72

1996 Opel Astra 1.6 16V 73

2003 Toyota Corolla Compact 1.4 73

2009 Porsche Carrera 73

1995 VW Golf Cabrio 1.9TDI 73

1996 Ford Mondeo 1.8GT 73

1995 VW Golf CL 1.6 74

1995 Mercedes E230 74

2000 Toyota Corolla 1.6 76

2009 Ford Ka 76

1996 Renault Megane 2.0 16v 76

In some market segments (e.g., executive cars), you have to ask: where’s the progress? What, for instance, has BMW been doing since 1995? Most cars have gotten much heavier. You think that the extra heft might include some extra soundproofing. But plenty of today;s lumbering leviathans are hardly quieter than their sprightlier predecessors. What does Mercedes expect us to think about zero improvement for the C-Class in twelve years?

VW’s press release for its newest Golf calls it “the quietest Volkswagen Golf since the model series began” characterized by “first-class acoustic properties.” Yes, “a special sound-damping film in the windshield reduces driving noises, as does the newly developed seal design on the doors and side window guides.”

Significantly less wind noise is generated by the outside mirrors due to their new shape. Furthermore, special modifications were made to better isolate the engine and passenger compartments from one another acoustically. Quiet rolling tires and new engine bearings round out the noise reduction program.

Empirically, the new Golf offers an improvement of 2 dB in three car generations and thirteen years.

Small cars have gotten much better, though. Corollas and Renaults used to be noisy boxes. Intense competition in the compact field seems to be working its magic. The Auris (the more-advanced, Euro-market Corolla) is a quite soothing small car, and the Megane’s low level of noise is a marvel.

Really small cars, like the Fiat Panda or the Ford Ka, are still noisy, and are thus for me un-purchasable vehicles, since they (driven quickly) generate a clamor louder than Occupational Noise Exposure standards would allow.

A noise level of 70 dB(A) seems to be hard to crack in cars for regular folks. But this is, to my mind, a pretty tolerable loudness, unreachable a few decades ago.

You’d think with advanced computer firepower, more precise manufacturing tolerances, double-lip door seals and multi-laminate windows, cars would generally be much quieter than in the 1990s. Why aren’t they? Remember one dirty secret of the car industry: usually, each successive generation of a car is cheaper to manufacture. Cost-cutting means that progress is slow—unless the market actively demands progress.

Or unless the car maker is genuinely forward-thinking. In terms of quietness, the only revolutionary car in recent years may be the Lexus LS 600h, which claims 60db at 60MPH.

On the other hand, where are the technical advancements we’ve been waiting for? Active noise cancellation, once seen as the answer to all things cacophonous and found in Honda’s cylinder de-activating Odyssey minivan, seems to be a pipe dream. This despite the fact that BOSE et al. have been promoting its benefits for years, and Germany’s Fraunhofer Institute says it’s working on a useful system.

And what about a microphone-based, user-friendly and effective interior intercom? I’m tired of shouting at back-seat passengers (although it can be useful in the case of children, dogs and back-seat drivers). A car that used electronics to help you converse with everybody on board, without raising your voice: now, that’s something that would lead me to a showroom, and to ponder a purchase.

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