While America Slept. Wednesday, January 21, 2009
Alliances ahead: The not yet wrapped-up tie-up between Fiat and Chrysler “may spur Japanese automakers to look into alliances of their own,” the Nikkei (sub) writes. Already, Nissan and Chrysler produce each other’s vehicles on an OEM basis, Suzuki teams with Fiat in environmental technologies. “While these two Japanese firms may need to rethink their strategies, the Fiat-Chrysler alliance could have broader implications,” says the Nikkei: “Budgetary constraints may force Japanese carmakers to focus on their strengths while striking partnerships in other areas. Foreign rivals are said to be looking for Japanese partners for the technologies needed to make fuel-efficient vehicles.” The Nikkei speculates that this could be”setting the stage for an industry reorganization involving domestic and foreign carmakers, including such midtier players as Suzuki, Mazda and Mitsubishi.”
Japanese carmakers have hat in hand: Mazda has appealed to the Japanese government for financial assistance to cover roughly 10,000 employees’ wages at two domestic plants where it has scaled back production, says the Nikkei (sub.) Mazda will pay 80 percent of the basic wages while output is suspended. The government subsidies are to cover a portion of these salaries. Mitsubishi has already filed for such aid, Nissan plans to do same soon.
Subaru puts CVT in larger cars: Fuji Heavy’s Subaru will introduce a continuously variable transmission in its Legacy lineup when the autos are fully remodeled in midyear, the Nikkei (sub) reports. The new models will be the first non-minicars to come equipped with a CVT in 11 years for the manufacturer of Subaru cars. The CVT supposedly helps improve fuel economy by around 1 percent. The Legacy lineup, which consists of hatchback, sedan and sport wagon versions, will be updated this year for the fist time in six years, creating the fifth generation.
See blind spot run: Clarion has created a vehicle-mounted video system that can help reduce blind spots on the sides of cars, the Nikkei (sub) writes. The system uses cameras with newly developed lenses and CMOS sensors, providing a 196-degree field of vision with minimal image distortion. The cameras are mounted on the front and back of the vehicle and can show objects that are in the driver’s blind spots. Pedestrians, bicyclists, and other objects that are detected are shown onscreen surrounded by a frame, to make it more likely for the driver to see them. The company aims to commercialize the system around.
Mitsubishi, closed for February: Mitsubishi will let the passenger car lines at its main factory in Okayama Prefecture run for only seven days in February, the Nikkei (sub) writes. The plant’s minivehicle lines will operate for only 17 days that month. The Pajero subsidiary will operate its plant for only nine days in February.
China slashes car tax, sales double (kindof: ) Jan 20, the purchase tax rate on vehicles with a displacement of up to 1.6 liters was halved to 5 percent in China. The new rate will be effective through the end of the year, Gasgoo reports. Some Chinese markets have reported a doubling of sales as the effect, however, many potential car owners in China have put off buying a new car until the new tax cut had been passed. Previously, the purchase tax on cars was 10 percent, regardless of engine size. Automakers call for more. Gasgoo: “Industry executives said that more effective measures should be taken to boost the auto sales, even by scrapping all the sales tax on more vehicles.”
Dongfeng outsells market: China’s third-largest automaker Dongfeng Motor Group sold 1.3m vehicles in 2008, up 16.12 percent year on year, Gasgoo writes. China’s automotive industry rose by 6.7 percent. As the top tier manufacturers mostly report better than average numbers, the losers must be the smaller ones. Consolidation ahead!
Ford restarts Russian pant: Ford has resumed production at its Russian plant after a steep drop in demand forced them to idle the Russian assembly lines for one month, Reuters reports. “The plant restarted production in three shifts as usual. During the winter holidays the plant managed to prepare for the launch of the Mondeo, which is expected in March,” Ford Russia spokeswomen Yekaterina Kulinenko said. The launch of the new sedan had initially been planned for the fall of 2008.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
Mr. Schmitt: I bet the other car makers are running around in Japan! I think it's because of that fabled 6 million cars a year without which, supposedly, car companies can't compete globally. I know Fiat made between 2.5 and 2.8 million cars last year (almost reaching the 3 million mark, which according to othe experts is enough to keep a semi-global presence - as Fiat does Latin America, Europe, Asia and Africa, but not NA). Chrysler mad how many? 4 million? But this alliance gets them close or above the fabled number. Same idea of Nissan Renault, although I think Nissan is trying to compete in some markets (europe) with Renault. That is bad for the alliance. As is the idea that's been flying around the press here of Nissan making a small car to gain volume in Brazil. What the heck? Isn't that what Renault is down here for?