Nobody dares to say it aloud, but parts of the “Buy American” contingent are secretly high-fifing when bad news from Japan is on TV or on the net. U.S. car companies themselves aren’t so sure, one missing chip, or an absent acceleration sensor can bring a whole line down. And of course they won’t be caught saying something reprehensible. Leave it to the Deutsche Bank and The Nikkei to end the (dis)grace period and to come out with their analysis of which carmaker might gain from the Tohoku tsunami. (Read More…)

The trade war that erupted between the US and China late last summer may have cooled to an angry simmer, but its effects are once again being noticed in the automotive industry. After President Obama slapped a 35% tariff on imports of Chinese-produced tires, the Chinese government started casting around for potential objects of retaliation, and, as Bertel reported, US auto exports to China made “a good tit-for-tat.” The US imported $1.8b worth of Chinese tires in 2009, while China imported $1.1b worth of US-built cars (including transplant brands) in 2008. You shoot our dog, we’ll kill your cat.”

Now, the Chinese Ministry of Commerce has concluded its “investigation” into US auto dumping and illegal subsidies  in the Chinese market, and it just so happens to single out the two automakers who are partially owned by the US. Coincidence? Not so much. [Hat Tip: Michael Banovsky]

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Steve writes:

Hi Sajeev,

For those of us who have entered the OnStar “Push On” contest that is giving away 10 GM vehicles of the winner’s choice and who feel lucky (yeah, right), we have a potential problem.  You get a GM vehicle of your choice and $25K to cover taxes, delivery, dealer prep, added dealer markup (in the spirit of the GTO, G8, Camaro…don’t put it past them), etc.

Here are the choices and my first thoughts:

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From the sounds of a story at the Freep, both GM and Ford appear to get ready for bigger losses from Europe. Led by fanfares inflated by their hometown paper, Ford and GM seem to embark on a PR campaign to soften the blow at home:

“Europe was GM’s only unprofitable global region in 2010, extending the company’s streak of years in the red there to 11, with a $1.8-billion European operating loss. GM is hoping to break even in Europe this year before restructuring charges.”

(It’s the restructuring charges that will be the humdinger. Even if kept as non-recurring items, they will hit the bottom line in a big way.)

“Ford unexpectedly lost money in the fourth quarter in Europe, losing market share because it refused to match competitors’ incentives. It made a profit on European operations for all of 2010, albeit just $182 million of its $6.6-billion companywide profit for the year.”

And who’s to blame? The customer of course. The Freep’s informers see a gaping perception gap that is widening every day: (Read More…)

In the (OMG) 7 years I have lived and worked in China by now, I have learned not to take the first two months of the year all too seriously. After all, according to the Chinese calendar, the first two months mostly belong to the old year. Chinese New Year  is some time in late January or early February, depending on the inscrutable lunar calendar. The nearly month long festivities mess up sales, and make comparisons pretty much useless. Confucius say: “Only the stupidest of men make predictions based on January sales.”

March is a different matter.  It’s the first “regular” month of the new year. Everybody is waiting for March sales results in China. We’ll have to wait at least a week or so until the CAAM is done tabulating the sales of the 60 to 120 automakers in China (even that number remains shrouded in mystery.) But there is our trusted indicator: GM China. (Read More…)

As galling as the auto bailout was for many Americans, the hidden “stealth bailouts” that occurred during the government-led industry reorganization are often even more galling. Today the final chapter of one of those “stealth bailouts” has taken place, as GM has sold its stake in its spun-off supplier Delphi for $3.8b, booking a $1.6b gain on the deal. So, how is GM divorcing its former in-house supplier a stealth bailout? Back in the dark Summer of 2009, the government organized a GM-led rescue of Delphi, which had been languishing in bankruptcy since 2005 (after GM. By buying a chunk of Delphi for $2.5b of the government’s money and selling it back for a profit, GM’s helped itself to a little extra bump of public money. Oh, and did we mention that GM dropped all kind of pensions in Delphi’s lap when it spun the supplier, including workers who had never been employed by Delphi.

But that’s not the worst part: any guesses as to why GM’s stake in Delphi is suddenly worth so much more? A recovering industry, perhaps? Wrong. Shortly after GM bought back its stake in Delphi, the supplier dumped $6.5b worth of pensions onto the government’s Pension Benefit Guarantee Company, causing huge benefit cuts and hidden government costs. What did the PBGC’s stake, given as “partial compensation” for that pension dump, yield it? A cool $594m. Meanwhile, thanks to the government ‘s arguments, GM still had to top-up UAW retiree pensions, leaving non-union retirees and members of other unions out in the cold [read all about it in a just-released GAO report in PDF here]. A shell game inside of a political payoff inside of another shell game, in other words. There’s nothing to not love here…

Who will be the world’s largest car company this year? There appears to be at least one car company that is (so far) totally unaffected by any parts malaises, supposed bursting bubbles in China and any other possible impediments to vehicular growth: Volkswagen. Veedub’s sales jefe Christian Klinger remarked at the sidelines of a press conference today that Volkswagen’s sales will hit record levels in March.

The Wall Street Journal could not believe its ears and sought confirmation. A Volkswagen spokesman said they heard right. Klingler didn’t give any further details, says the WSJ, but record levels can’t mean anything else than the best March ever in VW’s storied history. (Read More…)

Does General Motors have an unfair advantage when it comes to taking the top prize in 24 Hours of LeMons racing? The General’s LeMons soldiers have taken something like a third of all Index of Effluency wins during the course of LeMons racing’s four-year history… and today another GM marque was added to the IOE victors’ list: Opel! (Read More…)

New twist in GM’s hunt for the elusive carpart: Opel’s Eisenach plant will resume normal operations tomorrow, Tuesday. It was reported to suffer a serious shortage of Japanese parts. (Read More…)

General Motors Co. has halted all nonessential spending and travel companywide while it gets a better handle on the potential impact of Japan’s crisis on the company, the Wall Street Journal reports.

When the CEO of a large multinational sends out a companywide memo to hold off on any expenses that aren’t critical, things are dire. GM CEO Dan Akerson did just that, the Wall Street Journal says. (Read More…)

It is one of those strange twists of fate that Toyota’s arch-nemesis, GM, would be one of the first overseas automakers to experience shutdowns caused by a lack of supplies from tsunami-devastated Japan. (Read More…)

Last year, GM’s German patient, Opel, hemorrhaged $1.6 billion. It could easily have been twice than that, if Nick Reilly had fired the more than 8,000 workers that are on Opel’s endangered species list. Letting people go can get very expensive in Europe if you are a going concern. The only factory that was closed was Antwerp, to the tune of $532 million. That came to a little bit over $200,000 per worker. Reilly didn’t want to rain on the IPO roadshow, and moved the mass firings to this year. GM’s thank you: Reilly was fired. (Read More…)

We had predicted early on that “the disaster in Japan could have a major impact” not just on the Japanese auto industry, but on the auto industry worldwide. If anyone had silently hoped (you can’t say these things aloud) that the disaster over there would provide breathing room for the car industry over here, then get ready for a disappointment. First automaker to be affected over here by the Japan syndrome is GM. (Read More…)

As the former “car czar,” who led the government’s restructuring of GM and Chrysler, Steve Rattner has a considerable interest in portraying his pet projects as having turned the corner. But in a recent CNBC appearance, Rattner acknowledges that the market is “spooked” by GM’s increased reliance on incentives and the “unexpected” departure of its Chief Financial Officer. Ford, meanwhile, simply gets rapped for not communicating a slightly lower Q4 profit than Wall Street expected. And though Rattner’s not the guy to press the point home, there’s a clear distinction to be made between a much-hyped stock aligning itself with expectations (while making a tidy $6b+ profit) and a company that’s losing key personnel while leaning on incentives to recover the volume lost on brand and dealer cuts. But Rattner’s got bigger worries than short-term financial performances, or incentives or personell changes… he sees another, equally familiar problem that’s fixing to give GM (and, to a lesser extent, Ford) the fits: rising gas prices.
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As Ed asked just a couple of days ago, has the industry learned the lessons of 2008? What lessons are we talking about? In American GM’s case, Prez Dan Akerson himself said they hadn’t learned many. GM do Brazil though seems to be even more clueless. (Read More…)