First-quarter earnings just released by Volkswagen Group show a massive hit to the company’s namesake brand, all thanks to fallout from the diesel emissions scandal.

Profit at Volkswagen passenger cars fell 86 percent to 73 million euros ($81 million), down from 514 million euros last year. That plunge leaves the brand with a nano particle-thin operating margin of 0.3 percent.

Still, the scandal isn’t a killing blow for the company. Why? Investment advisers aren’t lying when they say diversity is key to weathering shocks. (Read More…)

Subaru didn’t always enjoy the recession-beating success it’s famous for today. In the ’90s, sales at Subaru were in the tank, and marketers in the company needed to do something different.

After identifying core groups interested in its cars, Subaru found something curious: lesbians, for whatever reason, loved Subaru. For our edutainment, Priceonomics has detailed the history of Subaru loving those lesbians right back.

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It’s easy to understand Toyota’s enthusiasm for selling 9 million hybrids worldwide since 1997. (Well, 9.014 million, but who’s counting?)

After all, have you sold 9.014 million hybrids? Don’t lie. You haven’t.

Toyota’s announcement comes as the world’s largest automaker accepts a challenge (from itself) to bring the total number of hybrid models sold to 15 million by 2020. It will do that by introducing more hybrid versions of its vehicles, then selling — it hopes — 1.5 million of them each year. (Read More…)

Rarer than an albino squirrel, the slow-selling Cadillac ELR was apparently shuffled into the afterlife three months ago.

Cadillac confirmed to Automotive News that the Chevrolet Volt-based luxury coupe ended production at GM’s Hamtramck facility earlier this year, with remaining units now dwindling from dealer lots.

Tell this news to any random person on the street, and you’ll very likely hear back, “What’s a Cadillac ELR?” (Read More…)

Decades of feel-good corporate outreach and a hug-worthy relationships with buyers didn’t stop potential customers and veedub diehards from fleeing Volkswagen after the diesel stink bomb went off in Wolfsburg.

Like a husband of 50 years caught cheating with his wife’s sister, the intentional deception behind the diesel emissions scandal shattered the hard-earned trust between the company and its consumers. Thanks to that, Volkswagen’s sales trajectory now mimics that of a very leaky submarine.

Could Volkswagen have managed the scandal better, and can the company rebuild that lost trust?

According to the consumer opinion-tracking Reputation Institute, the answers to those questions are “you bet” and “yeah … it’s gonna take a loooong time.” (Read More…)

Yesterday’s news that Nissan will buy a 34-percent controlling stake in Mitsubishi for $2.2 billion was the latest win for Carlos Ghosn, the man behind the Renault-Nissan Alliance of 1999 and possessor of many fingers in many pies.

Ghosn, CEO of both Nissan and Renault, inked the agreement with Mitsubishi as the other automaker battles a misleading gas-mileage scandal. At a price of 468.52 yen/share, Ghosn’s purchase of new shares was a smoking deal. Mitsubishi shares traded for 1,100 yen just last December.

What becomes of the two companies now? And how will Ghosn’s world-straddling empire benefit by snapping up beleaguered Mitsubishi? (Read More…)

The newest luxury marque is already pursuing an electrification strategy to compete with the Germans.

Genesis, the upstart luxury division of Hyundai, rolls out its first vehicles this year, and plug-in hybrid models will soon follow, reports Automotive News.

The effort is all about battling competitors BMW, Mercedes-Benz and Porsche on their own turf. Those luxury automakers are planning to increase their hybrid offerings in a market seen as more receptive to plug-ins. (Read More…)

The official launch of the first-generation Chevrolet Spark played out like a detective in a comedy film who has to go undercover in a high school, all the while clumsily pretending to be hip.  It was an awkward pander to the Millennial first-time car buyer, set to too-carefully chosen music.

With refreshed and updated small car models on their way (or already here), General Motors wants young people to rediscover their often overlooked bottom-rung vehicles, so it left the marketing to experts. (Read More…)

BMW went on a mad rager last year as it did everything it possibly could to claim the U.S. luxury sales crown from Mercedes and Lexus — and now katzenjammer is in full effect.

The premium German brand is looking at piled-up stocks of cars sitting on dealer lots. Predictably, those dealers aren’t happy, and BMW is trying to inject some saline to recover.

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On the heels of America’s auto industry growing by over 3% in April 2016, a report from the University of Michigan Transportation Research Institute says the average fuel economy of those vehicles dipped slightly from the month of March.

Given the rise in sales of SUV and trucks, this should surprise no one except amoebas living under a rock. (Read More…)

The Ford Mustang is currently the best-selling sports car in Germany and in many other European countries. Sales are so strong that allotments for official importers are usually sold out for the rest of the year and customers are flocking to gray importers, who offer cars at higher prices and without factory warranty.

What made Europeans go crazy for a pony car all of a sudden? Is something changing in European tastes, or is the new Mustang just that good? And why can’t other American cars make it in Europe? (Read More…)

BMW’s electric car sub-brand is growing, thanks to new and upgraded models, but its management ranks are shrinking as executives flee to a Chinese startup.

Three top names, including the program’s head, were lured to China’s Future Mobility Corp. this year, Automotive News Europe reports, while sales dropped by nearly a quarter in the first three months of 2016.

Call it a case of “i” gotta go. (Read More…)

Sergio Marchionne added another CEO title to his résumé yesterday, taking control of Ferrari, where the Fiat-Chrysler head already served as chairman.

He replaces former CEO Amedeo Felisa, who retired after 26 years with the company. Felisa remains on the independent automaker’s board of directors, where he will serve as a technical advisor.

Marchionne now has full control of the company he spun off from Fiat Chrysler Automobiles at the beginning of the year. Two years ago, he succeeded former chairman Luca di Montezemolo, who stepped down in protest of Marchionne’s plans for the brand’s future. (Read More…)

TTAC commenter Piston Slap Yo Mamma has given us a great gift.

While perusing used cars on his local Craigslist site, he noticed a trend occurring in the vehicle images. Fingers. Lots of them. Obscuring license plates. Possibly, revealing more about the driver than the plate itself.

So numerous were these crooked appendages, often topped with purple or naturally yellow nails, that he felt the need to share them. So, this Tumblr page was born. (Read More…)

They’re on a little break right now, but Volkswagen plans to saunter back to America’s door, flowers and chocolates in hand.

As the diesel emissions scandal plods along to its buyback conclusion, the automaker plans to woo U.S. buyers with desirable products and a less confusing brand strategy, Automotive News reports.

Volkswagen brand chief Herbert Diess told reporters in Germany last week that the U.S. was still a target market primed for growth, but first the company must convince those buyers that it has changed its ways, and that it’s ready for commitment. (Read More…)