Woken up by the Tata Nano warning shot (which so far seems to be a dud), everybody agrees that the key to making India “the next China” is to start small. Why does Suzuki own more than half of India’s market? Small cars.  And motorcycles. Another key to emerging markets is to give people an easy upgrade path from two wheels to four wheels. Remember how BMW got started? Remember that the initial business plan for the Volkswagen was to offer citizens of the Third Reich a car for the price of a motor cycle?

No wonder manufacturers are scouring their line-up for cars small enough for the huge Indian market. (Read More…)

How did Tokyo digest Toyota’s lackluster U.S. May sales performance? In a market that forged ahead by 19 percent, Toyota grew only 6.7 percent. Even more embarrassing, other Japanese brands like Mazda (+ 35 percent), Subaru (+35 percent), or Nissan (+24 percent) had outpaced the market.  When Tokyo woke up to the bad news this morning, everybody ran to the phone, called their broker and … (Read More…)

Production at the Honda parts factory in Foshan, China, partially resumed this Chinese afternoon after Honda offered to increase the wages of striking workers by 366 yuan ($54) a month, company officials told The Nikkei [sub]. This reflects a pay hike of 20 percent. (Read More…)

Japanese car buyers are still auto otaku. In May, new car sales in Japan rose for the tenth straight month. Total sales of registered vehicles are up 28 percent to 228,514 units, the Japan Automobile Dealers Association told The Nikkei [sub].

Not only are the sales growing, the cars are getting bigger too. (Read More…)

A year ago I reported how Renault was using French Government money in exchange for keeping jobs in France. Then Renault landed themselves in trouble when Renault wanted to transfer production of the Clio to Turkey and the French Government made their feelings quite clear. Then they started slagging other low cost countries off. Now it appears Renault are at it again, only this time they may succeed. (Read More…)

The strike at Honda’s transmission factory in China that has led to the closure of all Honda sites in China shows no sign of resolution. Actually, there is a new twist: Management is leaning on school interns not to strike, Hong Kong’s South China Morning Post reports. Why the sudden focus on interns? (Read More…)

Toyota has released their production numbers for the first four months. So has Volkswagen. GM has not, but that doesn’t change the general picture: Toyota is still in the lead in worldwide production, Volkswagen catches up a bit, but sits solidly in the #3 position for the first four months of the year. (Read More…)

In Japan, the land of the mythical lifetime employment, peaks and valleys in demand are managed with temporary workers. As long as work is there, they work. If demand dries up: “So sorry, your temporary time is up. Ja ne!” During carmageddon times, most if not all of the temporary workers in Japan had been sent home – often to no home at all. The hiring of temporary workers is a closely watched leading indicator in Japan, signaling an uptake in business. The Nikkei [sub] reports that Toyota companies are hiring contract workers again as production is picking up. (Read More…)

Jalopnik carries today the revelation that in the Tesla/Toyota agreement, there is no “formal deal with Toyota to build a new electric vehicle yet.” Let’s overlook for a second that the report is nearly verbatim lifted from Venturebeat. If Jalopnik would have read our story about Toyota and Tesla, they could have printed the above a week earlier. (Read More…)

Car & Driver voted Toyota’s FT-86 as one of the 25 cars worth waiting for. It seems like the wait will be a little longer than anticipated. Toyota had shown their sports car concept at many motor shows, from Tokyo to Beijing (but not in New York.) Of course, this was read as an imminent launch of the little brute. 2011 model year, hopefully. Mid 2011, maybe. Wrong. Not even close. (Read More…)

Toyota announces a gut-wrenching innovation: Crash test dummies with intestines. I remember the unappetizing times when crash tests were performed with (dead) pigs, or, even more gross, with human corpses (not for public consumption.) The crash test dummy changed all this. No species developed faster than the anthropomorphic test device, a.k.a. the crash test dummy. Now, it made a big leap forward. (Read More…)

The NHTSA went through their database again and found 89 deaths possibly linked to sudden acceleration of Toyotas within the last 10 years.

From 2000 to mid-May, the NHTSA received more than 6,200 complaints about sudden acceleration in Toyota cars. The reports allege 89 deaths and 57 injuries over the same period. Previously, 52 deaths had been suspected of being connected to the problem, says Bloomberg.

With such carnage, one would assume that the NHTSA is beating down the doors of the bereaved to “get into the weeds” of the matter, as Secretary LaHood fancies to say. (Read More…)

Toyota definitely keeps us on our toes. Last week, the tete-a-tete between Toyota and Tesla had the world speculating about an electric push by the world’s largest auto maker. That was last week. This week, it’s hydrogen. (Read More…)

Nissan won’t sell their much ballyhooed pure plug-in Leaf until December. But a successful launch wants to be well planned, and Nissan thinks of everything. They won’t sell you the Leaf just yet. But you can already buy the charger. If you bank account is properly charged. (Read More…)

Yesterday’s Toyota hearing at the U.S. House of Representatives Energy and Commerce Committee was a desperate attempt to keep the Toyota issue in the headlines, and to provide flanking support for Waxman’s proposed Motor Vehicle Safety Act. The ghosts in the machine are still at large … (Read More…)