Fiat’s Sergio Marchionne looked like a pretty shrewd operator when he was able to snag a bailed-out Chrysler from the US government without paying a penny. Between that and the booming European sales on the back of government-funded scrappage schemes, Fiat pretty much spent 2009 proving that automakers should cater to governments almost as much as consumers. But as 2009 wound down, Fiat’s government affairs winning streak came to a halt as the Italian government started asking for a little quid for its quo, and it’s been going downhill from there. Now that Fiat wants to shut down its Sicilian Termini Imerese plant, and right-size Italian production, the love affair is officially over. “We are examining the possibility of renewing [consumer incentives],” Italian Prime Minister Silvio Berlusconi told reporters from Automotive News [sub]. “But Fiat does not seem interested in them.”

(Read More…)

China’s car industry has big plans. According to the China Business Journal, cited by the Nikkei [sub], China’s top 14 automakers are planning and building for a combined output capacity of 23 million vehicles in 2012. “With other carmakers included, the total figure will likely top 25 million,” says the Nikkei.

Last year, China became the world’s largest auto market, with 13.64m vehicles sold. Demand is officially projected to grow by 10-15 percent a year, reaching 20m units in 2012. “Consequently, there is the possibility of excess capacity,“ worries the Nikkei. (They are ostensibly not worried about 20m cars being sold, an idea that makes peak oilers lose precious sleep while they are wearing out their – plastic – keyboards on the message boards.)

As far as this reporter is concerned, 5m excess capacity in 2012 would fall in the „nice problem to have“ category.

One, Chinese projections are notoriously lowballed. (Read More…)

Agressive cost-cutting and improved sales yielded $1.68b in net profit for Toyota in the three months ending December 31, reports a press release in the WSJ. Sales revenue climbed 10 percent to $58.2b in the October-December quarter, boosting operating profit to about $2b. This quarter alone though, Toyota reckons the recall could cost the company $2b in repair costs and lost sales. For the fiscal year, ending on March 31, Toyota says the final impact should be limited to about $900m in losses on an operating basis, and has revised its fiscal year net profit projection to about $900m (compared to a $2.2b loss projected in November).

(Read More…)

Hyundai sales kept on climbing in January, though Kia slowed to just 27 units over its January 2009 sales numbers. Combined, Automotive News [sub] reckons they grew 13 percent to 52,626 units. Hit the jump for numbers.

(Read More…)

Chrysler sales in January of 2009 were “Medusa class” ugly [down nearly 55 percent] in the always-apt words of one Robert Farago, which makes the Pentastar’s January 2010 sales [PDF release here] whatever 8 percent uglier than Medusa class is. The Chrysler brand was down 2 percent, with only the Sebring (+85%, 3,593) and Town & Country (+6%, 4,531) in the black. Jeep fell 8 percent despite growth in Compass (+52%, 1,244) and Grand Cherokee (+6%, 3,311) sales. Dodge was up one percent on strong growth from Avenger (+44%, 3,134), Journey (+55%, 4,790) and Caravan (+34%, 4,298), and the Ram brand fell 25 percent, with Ram pickup volume dropping below 10k units. Fugly? Heinous? Tragic? Pick the adjective you’re most comfortable with.

HUMMER is the big loser of GM’s dead brand version of “The Biggest Loser,” with an epic 2,493 vehicles left on lots after 9 months of “winding down” (not to mention the two plus years with a “for sale” sign stuck on the brand). As this table from GM’s January sales release shows, even Saab has trimmed more inventory since GM announced the cut to four brands last May. HUMMER did beat the Swedes in sales last year, barely, clocking 9,046 units to Saab’s 8,680. But Saab also sold more 9-7x Trollblazers (2,218) than HUMMER sold H2s (1,513). Figure that out. And people wonder why the Chinese government doesn’t want Sichuan Tengzhong to buy this hummer of a brand. [UPDATE: HUMMER’s Communication Director responds after the jump]

(Read More…)

Corporate fleet sales were back with a vengeance last month, as GM admitted that these lower-profit fleet sales made up a full 29 percent of its total sales in January. Those total sales, including the winding-down Pontiac, Saturn, Saab and HUMMER brands were up only 13.6 percent. Core brand sales were up 30 percent in total, but again, most of those gains were in fleet sales, as core brand retail sales gained only 3 percent over GM’s moribund performance in January 2009. Zoinks! Full release in PDF format here, details after the jump.

(Read More…)

Complete numbers for U.S. January 2010 light vehicle sales are pretty much in (subject to change.) They look mildly promising. Overall, Automotive News [sub] records a gain of 6 percent over January 2009 so far. Here are the sales reported: (Read More…)

Ford’s sales momentum continues unabated, as the Blue Oval has announced that its January sales were up 25 percent over January 2009 [full release in PDF format here]. Sales were led by a a strong performance from Ford-branded cars, which were up 54 percent as a category, with individual nameplates logging gains ranging from 33 percent (Focus, 10,389 units) to 121 percent (Taurus, 3,768 units). Ford Crossovers and SUVs were up 16.7 and 12.9 percent respectively, with most of the volume gains coming from CUVs like the Escape (+28.6%, 10,753) and Edge (+25.5%, 6,243 units). Ford truck sales were up 14.5 percent, with heavy commercial vehicles falling and the Ranger recording a strong 47.3 percent gain to 4,143 units.

(Read More…)

Germany is suffering from Abwrackprämien-withdrawal. Message to dealers: Not this month, we have a headache. January sales are down 4.3 percent compared to January 2009. Only 181,189 new cars found their way on Deutschland’s roads. 4.3 percent may not sound earth shattering. But we are comparing with an exceptionally crummy January 2009, when sales were so awful that Berlin quickly launched their German cash-for-clunkers Abwrackprämien program. This time around, Germans bought even less. It’s been the most miserable January in some 20 years. (Read More…)

Hyundai’s fourth quarter profit quadrupled over last year’s fourth quarter results, reports Bloomberg, as net income hit $822m, up from $210m in the same period last year. Operating profit rose 44 percent to $722m. This comes despite an increase in the value of the Won, which has reduced profit on Hyundais exports, which make up half the firm’s revenue. And unlike other automotive firms reaping surprise year-end profits (like Ford), Hyundai’s gains come from increased sales rather than cost-cutting. Hyundai’s overall sales rose 14 percent to 3.2 million units last year, driven by growth in the US and Indian markets. Hyundai finished 2009 with just over five percent of the world market. Hyundai expects sales to rise 11 percent in 2010, and the firm is looking to take advantage of Toyota’s weakness by offering conquest incentives like those now offered by GM, Ford and Chrysler.

It’s obvious that Suzuki isn’t surviving the global downturn on US sales. Stateside, the Japanese automaker’s sales fell over 50 percent last year, with only 38,695 vehicles sold. Globally, Suzuki sold 908,302 units, meaning fewer than one out of 20 Suzukis sold worldwide were in the US market. That’s no big surprise as Suzuki has long focused on developing markets for growth. What is surprising is that Suzuki’s Indian joint venture Maruti actually outproduced its parent company, racking up 966,399, of which about 130k were exported. Wilder still, Maruti sold 967,581 units last year, more than it could produce and more than Suzuki produced worldwide. Suzuki owns 54 percent of Maruti, the best-selling brand in the Indian market by a healthy margin. The Indian market grew by 19 percent last year, while the Japanese market fell by ten percent.

Here is a round-up of the Toyota news that is flowing furiously out of all news outlets. Everybody, from the Wall Street Journal to Al Jazeera weighs in on the issue. Grab a cup of coffee. Or something stronger.

More recalls: Toyota announced late Wednesday that it must recall another 1.1 million vehicles “to address the risk that floor mats could trap accelerator pedals and cause bursts of sudden acceleration,” says Reuters. According to Reuters, “Toyota now has recalled nearly 6m vehicles for problems with the accelerators used across its lineup.” This is not counting the 2m vehicles in Europe that will be recalled.

EU recall official: Toyota Motor said today that it definitely will be expanding the recall to Europe, says AFP via Google. “Toyota will implement a recall in Europe,” said company spokesman Paul Nolasco. “We are still not sure about the models and the number of vehicles.” Initial estimates, published by The Nikkei [sub], spoke about another 2m cars in Europe. Plants will not be closed in Europe, because different parts already are being used in new production.

Recall spreads to China: China’s quality watchdog agency said “bu hao” to Toyota and ordered  the  recall of “at least 75,000 vehicles  in China,” says London’s Times. (Read More…)

Mamma mia! Fiat’s order book looks “worse than in the beginning of 2009, when we were deep in the economic crisis,” said Sergio Marchionne. Cosa facciamo? Eccola: Fiat will close all of their Italian plants for two weeks, from February 22 to March 5, reports Das Autohaus.

That doesn’t bode well for the company. (Read More…)