It’s the software, stupid. At a press conference at 3:30 pm Japanese time, Toyota came clean and announced that it will recall 223,068 hybrid vehicles in Japan, including its latest Prius model and three other models–the Sai, the Lexus HS250h and the Prius Plug-In Hybrid, says the Nikkei [sub]. They will get a re-flash of the brake software.  Worldwide recalls of affected models will follow. This ends – for now – weeks of waffling over the latest in a series of Toyota problems.

The recall will start Wednesday. A total of 199,666 Prius vehicles manufactured between April 20, 2009 and Jan. 27 of this year will receive new ABS software. (Read More…)

Most car design is evolutionary and derivative. Rarely does a manufacturer make a complete clean break with the past, and risk everything on a fresh stylistic new beginning. Except of course, when you’re at the end of your rope, and staring death in the face. Suddenly, anything, even something boldly original, is very possible and worth risking. It happened exactly once, in the modern history of Lincoln. Frankly, it wouldn’t be a stretch to say that it in terms of an existing car make, the 1961 Continental is about as clean a break from its predecessor model as any American car in the post-war era. The only other car that comes close in creating a similarly new and lasting design language is the 1960 Corvair, and that had no predecessor. We could surely use another ‘61 Continental in these unoriginal times, but don’t hold your breath. Even near-death experiences don’t seem to have the same effect anymore. (Read More…)

GM sold a lot of compact cars in January. Gm also had a high percentage of fleet sales in January. Coincidence? We think not. [Please note: VW Rabbit sales do not include GTI]

Furious Fuschia counterpoint after the jump.

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As we’ve noted before, there are lots of ways to skin a segment. Here’s one of them. Notice that four of the top five sellers here are also available as sedans, the Honda Fit being the only exception. Interestingly, compact hatches tend to carry a premium over their sedan variants.

As the search for clues to what went wrong with Toyota’s much-vaunted quality rolls on, Automotive News [sub] has discovered that Toyota discontinued top-level quality-focused meetings shortly after Akio Toyoda took over early last year. The “Customer First” quality meetings were instituted under Toyoda’s predecessor Katsuake Watanabe as a response to Toyota’s 2005 recalls. A Toyota executive involved with quality decisions at the time tells AN [sub] that the Watanabe-headed committee simply disappeared over time:

We saw that the whole company and each division understood what they need to do in terms of Customer First operation. It became a daily activity rather than a special activity. So they didn’t need an executive to instruct them. Because Customer First is something like a philosophy, Customer First activities themselves are continuing. But we don’t have an official organization like a committee.

Ironically, Toyoda used the term “Customer First” repeatedly in his comments to the Japanese press last week. How he squares that emphasis with the decision to cut an executive-level committee named for that phrase remains very much to be seen. Meanwhile, his motivations for cutting the program couldn’t be more obvious, as the slow-and-safe approach added months to vehicle development time.

In honor of our greatest president’s birthday this Friday, it’s going to be Lincoln Week at Curbside Classic. We’ll start with a brief history of the brand to set us up for the sixties, when our featured cars begin. (Read More…)

One more obstacle to the Spyker-Saab deal has been eliminated, as BusinessWeek reports that the EU has approved the Swedish government’s guarantee of a €400m ($547m) loan to the company from the European Investment Bank. EU competition commissioner Neelie Kroes approved the loan today, saying it would not cause “any undue distortions of competition,” and that Saab had offered “adequate remuneration” and collateral. The EIB still has to give the loan final approval, a prospect that Swedish government officials say is likely, despite the fact that €320m of the package was originally intended as an environmentally-friendly car development fund. As Bertel Schmitt put it, “keeping the lights on in Trollhättan while GM delivers parts doesn’t quite fit the purpose.” Unless of course you’re willing to justify anything to get your hands on the  new 2010 9-3X “Cross-Combi,” which SaabHistory claims can now be pre-ordered from the remaining US Saab dealers. And if the sedated Swedes in this video are anything to go on, the 9-3X is sure to be, well, a Saab.

Until recently, if you wanted a semi-practical sport coupe for less than $30,000, and pony cars weren’t your thing, you had to get one based on a front-drive sedan. Chevrolet offered the Monte Carlo, Honda offered the Accord Coupe, Toyota offered the Solara, and two years ago Nissan introduced an Altima Coupe. The Nissan was the sportiest of the bunch owing to a dramatically shorter wheelbase and the company’s usual emphasis of handling over ride quality. Then, for the 2010 model year, Hyundai changed the rules of the game by tossing the rear-drive Genesis Coupe into the mix. Given this new addition, the question has to be asked: why would anyone still opt for the Nissan, when the Genesis is the same price?

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For years, TTAC has argued that General Motors suffers from a profound lack of accountability. Specific instances include the $2b “Fiatsco,” most of Roger Smith’s tenure, and cars like the Pontiac Aztek and Cadillac Cimmaron. Incidents like these helped GM along its decades-long plunge into bankruptcy, unchecked by the lax corporate governance of what came to be called its Board of Bystanders. Hyundai’s CEO may have received similarly lax treatment from South Korea’s criminal justice system, but at least the shareholders are standing up for their investment.
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