Today’s Nikkei [sub] agrees with the TTAC commentariat that Suzuki is overripe for a takeover. “Now that Suzuki has dissolved its joint venture assembly plant with General Motors Co. in Canada, the Japanese automaker, with its long presence in emerging markets and strength in subcompacts, appears an attractive partner for an alliance.”
No kidding. As it has been pointed out by TTAC’s Best & Brightest, Suzuki has what other makers need, and Suzuki needs what other makers have.
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SAIC halted trading of its stock today due to a “major asset reorganization.” According to Dow Jones Newswire, SAIC’s board will hold a meeting before Dec. 9 to discuss the asset reorganization plan. SAIC said its shares will resume trading on the Shanghai Stock Exchange after it announces a detailed plan on the reorganization. While SAIC is tightlipped, Chinese media is abuzz with speculations.
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The Brazilian-American Chamber of Commerce reports that Volkswagen AG has announced it plans to build (cue “Dr Evil” voice) 1 million vehicles in Brazil by 2014. To help this grand notion become a reality Volkswagen will invest €2.3 billion (about $3.5b) into the endeavour benefiting its two assembly plants in Anchieta & Taubate and its engine plant in Sao Carlos. Volkswagen aren’t far off this target; this year Volkswagen expects to manufacture 800,000 vehicles in Brazil. Brazil is also Volkswagen’s third largest market after China and Germany, respectively, so there’s plenty of demand for the Wolfsburg Warriors’ offerings, with deliveries to customers up 70% since 2005. If Volkswagen cars are suffering from alleged reliability issues, it doesn’t seem to be bothering our Brazilian friends.
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Invasive species can impart devastating effects when the indigenous species haven’t evolved the proper defenses. Two Beetles stowed away on a ship bound for the US in 1949. There wasn’t anything remarkable about them that would suggest their future impact on revolutionizing the largest automobile market in the world. But like a pair of termites, they multiplied and steadily chewed their way through the framework of an industry that thought itself invincible. Eventually, the Bugs got forced out by other small foreign critters, but when the hollowed-out Fortress Detroit finally crashed into smithereens, the Beetles’ teeth marks could be seen everywhere. (Read More…)
Nine months ago, German Karmann declared bankruptcy. The maker of the venerable Ghia, and until recently contract manufacturer and specialist for ragtops, fell victim to the sad fact that Fahrvergnügen doesn’t agree with carmageddon.
Now, Volkswagen, one of Karmann’s main customers, picked up the core pieces of the maker. Volkswagen isn’t taking over Karmann (that would mean assuming the liabilities.) Volkswagen is buying assets: Plants, machinery, real estate. Production in Osnabrück will go on. At a much smaller scale than before.
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One of the most overlooked arguments during last year’s bailout debates was the fact that America’s automotive industry was not under threat. Sure, a few companies based in Detroit were panhandling at death’s door, but so-called “import brands” have been closing the gap in terms of Americans employed for years. And America’s transplant auto industry is continuing to grow. Even as the Detroit firms have slimmed down their North American manufacturing footprints, foreign firms are moving ahead with American and NAFTA-area plants despite the economic downturn. Not only do these moves signify possible new jobs, they also represent a long-term bet on the fundamental strength of the US economy.
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Cars are not a mere means of mobility. They respond to the driver’s will; they turn, speed up, slow down. Naturally, there’s a need for excitement…Of course, eco-friendly cars are a prerequisite for the future, but there must be more than that. Morizo cannot afford to lose. I will tackle the challenge of creating a car with even more splendid flavor than the Scirocco.
Toyota CEO Akio Toyoda blogging at his company’s Japanese marketing website Gazoo.com, as reported by Automotive News [sub]. Toyoda’s Scirocco killer? That has to be the FT-86 “Toyobaru” coupe. Interestingly, Inside Line reports that the Subaru version will have about 250 hp, AWD and will cost about $30k. In contrast, the $25k Toyota will be smaller, RWD and only 200 hp. Smaller, lighter and RWD? Sounds like Toyota beat Subaru to the splendid flavor. [Hat Tip: Cammy Corrigan]
Volkswagen will continue its pioneering work testing the boundaries between platform-sharing and brand-engineering, reports Autocar, with a new platform destined to underpin some 60 models globally. The modularen querbaukasten (modular transverse engine, or MQB) architecture will form the basis of models ranging from the sub-Golf Lupo to the Sharan MPV, starting with the next-gen Audi A3 which debuts in Europe in 2011. The key to the platform’s versatility is its adaptiveness to different wheelbases, tracks and wheel sizes. Says VW R&D Boss Ulrich Hackenberg:
It gives us the possibility to produce models from different segments and in varying sizes using the same basic front-end architectur. We can go from a typical hatchback to a saloon, cabriolet and SUV with only detailed changes to the size of the wheel carriers.
The new architecture will allow VW to replace some 18 engine-mounting architectures to a mere two, reportedly providing about 60 to 70 per cent parts commonality between Volkswagen’s biggest-selling models.
When we reported Chinese rumors that Veedub might open a factory in Southern China to make up for its lack of exposure and market share down south, we wondered “which of their two Chinese joint venture partners will get the new plant.” If the latest rumors are true, all options are wide open. It might even be a new joint venture partner. According to Guangzhou Daily (via Gasgoo) Volkswagen could bring its ill-fated SEAT brand to China.
We’ll know more when VW will announce its “South Strategy” at the 2009 Guangzhou auto show next week. If they do.
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We weren’t the only outlet to note Volkswagen’s apparent 2010 production volume win over Toyota a few days ago. Not so fast, Toyota tells Automotive News [sub]. Volkswagen’s total included production by joint ventures in which it does not hold a majority stake, Toyota’s didn’t. On an apples-to-apples basis (with minority stake affiliates included) Toyota built 4.9m vehicles in the first three quarters of 2009, to Volkswagen’s 4.4m. And because Toyota cut so much production early this year, while VW rode the European (particularly the German) cash-for-clunker wave, Toyota will continue to gain ground over the rest of the year. And the gap could widen in 2010: VW should see a certain amount of downturn in its core German market now that the abwrackprämie has expired, while improvements in the US and Asian markets should help Toyota. Not that Toyota cares about being number one. “Toyota’s goal is to focus on the customer, so we’re not focused on being No. 1,” ooze the spokesfolks. Well thanks for correcting us anyway.
While other brands are busy closing down dealers, Volkswagen is buying them. They buy the big ones, to be exact. The smaller ones have been eliminated ever since yours truly has been working for VW.
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The Guardian reports that in the first 9 months of 2009, Volkswagen/Porsche made 4.4 million cars whereas Toyota made 4 million. Naturally, the majority of VW’s growth has come from the area which is growing even faster than VW, China. But the lads from the Middle Kingdom weren’t the only modes of growth for Volkswagen. The Wolfsburg warriors were also beneficiaries of European stimulus packages (A.K.A: Cash for Clunkers) where Volkswagen have large market share (Germany, UK, etc). Charity really does begin at home!
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Ford’s announcement today that the new global Ranger won’t be coming to the US sure seems like a head-scratcher. Though Automotive News [sub] quotes Ford’s Alan Mulally as saying the Ford Ka won’t be sold stateside because “our view is that Fiesta is about the smallest vehicle that we think will be a real success in the United States,” there’s no similar reason given for the absence of a modern compact pickup from Ford’s lineup. Or anyone else’s lineup, for that matter. The Canyon/Colorado are going out of production since the Shreveport, LA, plant is part of Old GM liquidation Corp. The Dodge, er, make that Ram Dakota will die next year according to the new plans at Chrysler. The Tacoma is no longer properly compact, and Volkswagen’s Brazilian “Robust” won’t be coming here either. Hell, even the latter-day El Camino was stillborn. But if my flu-addled memory serves me correctly, didn’t compact pickups help pull the US market out of one of its last great downturns? Why is it that nobody is giving this segment the time of day?
Car and Driver scoops the inside poop on the latest über-Golf headed to The Land of the Free. According the Csere-free buff book, the Golf R will offer the GTI’s four cylinder engine tuned to “an impressive” 270 hp with all wheel-drive to tame all those ponies. The R’s lighter, cheaper 2.0-liter turbo four may help the new top spec Golf sell more prolifically than the last top shelf Golf, which featured a heavier and more expensive 3.2-liter six, clocking in at $32,990 (msrp). Well, it couldn’t do any worse; you can still buy new ’07s. Car and Driver reckons VW will call the new car an R20 Turbo. As always, we reckon it all comes down to price/performance. The GTI is a stunner. The R20T would have to offer significantly better thrust and handling for a reasonable premium to make it. What are the odds? Meanwhile, if you haven’t driven the original R32, you should. Oh, yes.
Brussels just ratcheted up the thumbscrews they placed on Berlin: “Either drop that VW-Gesetz now, or we’ll see you in Europe’s High Court. You’ve go two months.” Automobilwoche (sub) has the story in German. In case you don’t know: The VW-Gesetz (VW-law) was written to give the state of Lower Saxony veto power. Lower Saxony holds 20.1 percent of Volkswagen. According to German law, a minority shareholder must have 25 percent to exercise veto power. Lower Saxony didn’t want to spend the extra money for the extra shares. A law was passed instead. For a long time, this law was seen as a weapon to ward off foreign raiders and other riff-raff: Who wants to take over a company they can’t boss around? Now, the law bothers two parties:
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