Is Polo the New Golf?
By Martin SchwoererAugust 5, 2008 - 1,464 views
When we reviewed the VW Polo, we noted that it's a good and useful car let down by staid styling and a high price. VW is addressing… the former. According to Autobild [print version of July 31], the 2009 VW Polo will finally ditch the slab sides and become more stylish. Since the Polo already has similar interior space as the MK3 Golf, this means the Polo might well become a lot more important for VW– to the detriment of the Golf, which suffers from what you could call generational bloat. For the Polo, VW plans to offer double-clutch automatic transmissions and a wide arrange of engines. Popular Mechanics reports that VW will also create a hovercraft hybrid version– just kidding. The mag reports (prays?) that VW may bring a clean-diesel, 70mpg Polo stateside. We say currency exchange rates mean VW can't make a dime on that deal unless they build the new Polo in Mexico, which they won't do because of the aforementioned cannibalism.
Posted in Diesel | Europe | New Cars | News Blog | 13 comments 
Bosch Boss Says Diesel is Here to Stay
By Martin SchwoererAugust 4, 2008 - 1,241 views
Car makers like to take the credit, but auto suppliers have invented much of contemporary car technology. So when the boss of Germany's Bosch (the world's biggest auto supplier) talks about the future of automotive technology, people listen. Here's what Bernd Bohr had to say to Auto, Motor und Sport . "For the year 2015, we expect a total world market of 80 million new cars, of which only about 2.5 to 3 million will be hybrids and 800,000 will be purely electric. So gasoline and diesel engines will continue to predominate. Actually, we calculate that the world market share of diesel cars will rise by another 5 percent, to reach 28 percent." How come? "Despite disproportionate price increases for diesel fuel, in places such as France the share of diesels has increased from 70 to 80 percent, because of a new CO2 tax. Diesels are 30 percent more efficient, too. There is a political dimension: the EU's ambitious plans to reduce CO2 emissions are only reachable if Europe stays at least 50 percent diesel." But the U.S. has shown that diesel is a no go, no? "This is mainly because of high prices for low-sulfur diesel fuel which is caused by low refinery capacities. This bottleneck should be gone around 2010. We expect a diesel market share for the U.S. of 15 percent by 2015". Are you betting the company on these predictions? "We plan to reduce our dependence on auto technology from currently 61 percent to 50 percent."
Posted in Diesel | Europe | Fuel Economy | Green | Industry | News Blog | 35 comments
The Euro-Trashed Auto Market
By Edward NiedermeyerAugust 1, 2008 - 2,156 views
After two months of declining sales, analysts are losing faith in the European market. They predict that the down cycle could last until sometime in 2009. That's bad news for everyone, but it comes at a particularly bad time for America's automakers, who are banking on overseas sales to make up for a moribund US market. The Detroit News reports that Europe accounted for nearly a quarter of GM's global sales last year at 2.2m units, while Ford's (non Jag/Landie) brands sold 2.4m vehicles in the Eurozone. And though overall European sales are down only two percent on the year, declines have been increasing, with eight percent drops in May and June. The European automakers' association predicts a 2.7 percent decline this year, though individual executives say it could be as much as four percent. "Having seen the developments in some European markets in the last six to eight weeks, I think it could be worse than that (four percent decline)," Daimler's Dieter Zetsche told analysts during a quarterly earnings conference call. Even the once-hot eastern European markets are declining, eliminating further opportunities for European sales growth. Which means the D3 have less opportunity to squeeze sales from abroad while the American market corrects itself. Not good.
Posted in Europe | News Blog | Sales | 4 comments
McLaren Vs. Mercedes Supercar Showdown
By Edward NiedermeyerJuly 30, 2008 - 79 views
With the McLaren-Mercedes SLR set to end production, McLaren wants to build a new supercar of its own (front mid-engine THIS). Auto Motor und Sport reports that Mercedes, which owns some 40 percent of McLaren, reckon the new hot rod would compete with its forthcoming Gullwing super-SL. And? Racing boss Ron Dennis and partner Mansour Ojjeh each own 15 percent of McLaren; the royal family of Bahrain own the other 30 percent. They're all hot for a new McLaren road car. Accordingly, two mid-engined prototypes are currently undergoing track testing, one of which sports a German-built V10 race engine. Mercedes is livid, threatening to cut all payments to McLaren if it doesn't halt development plans. Ultimately, Mercedes is going to have to bite the bullet and buy out the last 11 percent of McLaren if they want to call the shots (outbidding the royal family of Bahrain ain't gonna be easy). Meanwhile everyone has to make nice and work together on the F1 circuit, where McLaren-Mercedes pilot Lewis Hamilton is kicking ass and taking names. So who's writing the novel?
Posted in Europe | Future Vehicles | High Finance | News Blog | 9 comments
Mercedes To Bring A, B Class Stateside
By Edward NiedermeyerJuly 28, 2008 - 30 views
High gas prices are achieving what thousands of Euro-lusting domestic fanboys couldn't: an influx imported premium European sub-compacts. Automotive News [sub] reports that Mercedes has revived plans to bring its next gen A and B-Class stateside. Expect four-door, coupe and crossover variants to jump the puddle sometime after they make their 2011 European debut. And yes, we'll also get long-awaited, much-anticipated battery-powered versions– provided they escape development Hell. Meanwhile, Daimler's considering another U.S. price increase. "We will continue to go for pricing and lose some volume rather than see our contributions deteriorate," says CEO Dieter "Chrysler What Chrysler" Zetsche. So what's with the mass market A and B, then?
Posted in Electric Vehicles | Europe | Fuel Economy | Future Vehicles | News Blog | 15 comments
Opel/Vauxhall Insignia Is The New Saturn Aura. Only Different.
By Edward NiedermeyerJuly 23, 2008 - 61 views
Opel/Vauxhall's Insignia sedan debuted this weekend at the London Auto Show. The first Epsilon2-based car in GM's portfolio appears to be off to a great start. The biggest surprise so far: the Insignia looks stunning. Needless to say, there was some suspense when Maximum Bob Lutz was asked to confirm that the Insignia is coming stateside as the next gen Saturn Aura. Which was closely followed by stunned disappointment as the Man Of Maximum revealed that the Insignia IS the new Aura– but only under the skin. "We've researched the Insignia around the world, including the U.S., as an internationally spectacular new design, but the Saturn version will be its own car," says Lutz. So GM builds a mid-sized, front-wheel drive car that even Jeremy Clarkson likes (inside and out), and The General sends it to America to be fitted with (doubtless) tacky American couture. Why is GM spending money to redesign the looks of a perfectly desirable car?
Posted in Europe | Future Vehicles | New Cars | News Blog | 25 comments
Chinese Panda Clone Banned From Europe
By Edward NiedermeyerJuly 18, 2008 - 37 views
Automotive News [sub] reports a Turin [Italy] court has banned the Great Wall GWPeri from European sales. The court agrees with Fiat's assessment that the car "is a (Fiat) Panda with a different front end." The court ordered Great Wall to pay Fiat about $24k for the first imported model, and nearly $80k for each future import. Great Wall's lawyers say they'll appeal the decision. Fiat is also suing Great Wall in China, where the Panda isn't even sold. That case is still pending. It's been rumored that Great Wall has been interested in the U.S. market for some time, so let me be the first to say, bring the GWPeri here! The Panda's supposed to be a fun little car, and our own struggling automakers could use a captive import or two right now. Bring it as a Chevy, and let Fiat angrily nurse its $2b of GM's money. Either way, this is clearly a sign of things to come. Up next, lawsuits over this (Great Wall) Scion xB, this (SG) RX300, this (Lifan) MINI Cooper, this HUMMER, etc, etc. Hell, Great Wall even stole its GWPeri ad from an old Citroen C4 spot. Talk about incorrigible.
Posted in China | Europe | Insurance | News Blog | 11 comments
European Diesel Decline Has Begun
By Paul NiedermeyerJuly 17, 2008 - 56 views
We often get accused of diesel-bashing. But there's no getting around the fact that the decline of the diesel market penetration in Europe has begun. With diesel now costing the same as gasoline in Germany (we should be so lucky), the higher up-front costs of most diesel versions just doesn't pan out. Auto, Motor und Sport (print version only) has done an analysis of the minimum km per year required to amortize various diesel versions of popular cars. A few examples: 38k km (23k miles) for the BMW X-5; 30k km (18.3k miles) for the Opel Corsa, 25k km (15.3k miles for the MB E-class). In may, diesel's Eurozone market share dropped to 44 percent, from 47 percent in April. One study predicts that diesels will eventually lose fully half their market share. Another study shows that at least one-fourth of current German diesel drivers are seriously considering switching to a gas car with their next purchase. It looks like the party's over before the States could find the address.
Posted in Diesel | Europe | Fuel Economy | News Blog | 18 comments
BMW Cozies-Up to Daimler
By Edward NiedermeyerJuly 16, 2008 - 8 views
While its competitors were bought out (Volkswagen - Audi) or formed abortive alliances (Daimler - Benz), BMW has long been fiercely, proudly, publicly independent. So much for that, then. These days, The Boys from Bavaria are embracing global alliances, developing EVs with Magna, MINI engines with PSA, and sharing small car platforms with Fiat. Und now BMW is partnering with longtime nemesis Mercedes-Benz. Auto Motor und Sport (AM&S) reports that BMW and Daimler plans to share components across each other's car lines. BMW development boss Klaus Draeger says ja, it's a logical extension of BMW and Daimler's hydrogen fuel-cell technology development thingie (available never). At the mo, we're talking air conditioning units and brakes. Soon, it'll be hybrid technology and robot tanks [just kidding, I think]. With so much technology to share, so much brand image to protect and Daimler's history of stiffing Chrysler, this is promises to be a genuine disaster.
Posted in Europe | Industry | News Blog | Overseas | 11 comments
Volt Birth Watch 65: Damage Control
By Frank WilliamsJuly 14, 2008 - 6 views
Automotive News [sub] reports that the plug-in electric - gas hybrid Volt will be sold as a Chevrolet in the U.S. only. When they go on sale in Europe in 2012, they'll have different styling and wear Opel and Vauxhall badges– even though they'll be built on the same assembly line in Michigan. So why, with GM's push to make Chevy their "global" brand, are they rebadging the Volt for their Euro-brands? GM claims Opel and Vauxhall have larger dealer networks than Chevy. But let's face it… with Chevy's image as a bargain-basement brand in Europe and their current offerings of rebadged Daewoos, how many people would consider buying a high-tech, high-priced electric hybrid at a Chevy dealership in Europe? About as many as would consider buying a Corvette at one. Which is why Corvette is marketed in the Eurozone as a separate brand with Hummers and Cadillacs, and why Volts will become Opels and Vauxhalls. Stimt?
Posted in Branding | Electric Vehicles | Europe | Green | Hybrid | News Blog | Volt Birth Watch | 6 comments
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