Spurred by increased sales in China, Kia’s second quarter profits were up 7.7% from last year, to 1.18 trillion won ($1.06 billion), exceeding analysts expectations slightly. Revenue was up 4.4% to 13.1 trillion won ($1.168 billion).

After a French court lifted that country’s ban on Mercedes-Benz cars equipped with R134a air conditioning refrigerant, saying that the French ministry for the environment must reevaluate their decision to block those cars, Daimler said that it was “very confident’ that the French government will abide by that court ruling. R134a has been banned for use in new model cars by the EU since the start of 2013.

A $9.25 billion (€7B) loan guarantee from the French national government for the Banque PSA Finance arm of PSA/Peugeot-Citroen, Europe’s second largest car company, will likely gain approval from European Union regulators next week, according to sources cited by Reuters and Bloomberg.

Once the merger he plans for Fiat and Chrysler goes through, Sergio Marchionne says that Fiat-Chrysler could be registered as a corporation in the Netherlands, not Italy or the United States. Marchionne wants to have the combined company’s primary stock listing on the New York Stock Exchange and rules for corporate governance in the Netherlands are similar to those in the States.

‘Good job, Al’, ‘Thanks Bill’

For the 16th consecutive quarter, Ford Motor Co. profits have risen, with the Dearborn automaker reporting a 2nd quarter 2013 profit of $1.23 billion, up 18.6% from 2012, working out to 45¢ per share, exceeding analysts’ projections of 37 cents a share. Pretax profit for the quarter was up 40% to $2.56 billion. The company said that it set records for pre-tax profits in both the 2nd quarter and 1st half of 2013, making $4.8 billion in the first six months of the year.

Last week, the European Union Commission’s Technical Committee on Motor Vehicles meeting affirmed France’s refusal to allow Mercedes-Benz to sell cars using R134a refrigerant, and alsom indicated that other EU countries may block the sale of those cars as well. Now, Honeywell International, which owns the rights to R1234yf, (the only refrigerant currently approved by the EU) said that Daimler’s concerns are unfounded. M-B had run tests showing that under certain circumstances, leaks in the air conditioning system could cause underhood fires, and that when it burns, R1234yf produces poisonous hydrogen flouride gas.

When we last reported on France banning some Mercedes-Benz vehicles because the company refuses to use the now mandated R1234yf refrigerant, representatives from all 28 EU member states were scheduled to meet with the EU’s Technical Committee on Motor Vehicles to discuss the matter, particularly as it regards the sale of M-B vehicles in the 27 other EU countries besides France. That meeting has since taken place and according to a memo issued by the European Commission, those representatives have confirmed that all new vehicles sold throughout the EU must use R1234yf, and that any vehicles with the now banned R134a must be withdrawn from the market in all EU states. The dispute is over the fire safety of the new refrigerant. R134a was banned because it is considered a greenhouse gas.

European SEAT sales showed new signs of life lately, but the vital stats of Volkswagen’s Mediterranean brand still are weak enough for doctors to recommend a lot of rest. SEAT recommends to have workers stay at home an extra day of each week, Reuters writes.

According to the wire, SEAT “wants to halt production for 16 days on one of its lines, between September and December, affecting 2,800 workers, and stop production for 35 days next year on another line, affecting 3,800 workers.”

Nissan and Renault co-CEO Carlos Ghosn still sees a future in the electric car, it’s the European market that doesn’t have great prospects of a turn-around as far as Ghosn is concerned.

The fight over the flammable refrigerant takes a new twist. France refused to register Mercedes A-Class, B-Class and SL cars assembled since June 12, even though German authorities have approved them, a Daimler spokesman told Reuters.

The sagging EU economy led to the worst car sales since 20 years (cause and effect could also be the other way round.) With so much riding on car sales, France’s La Lettre Auto K7 found a way to predict them with greater certainty: They simply ask car dealers how many orders they received. Most volume brands in Europe are built-to-order, and even in the worst economic climate, that takes a minimum of 4 weeks until the car is ready to be registered. That’s when usual statistics recognize the sale.

Reuters has received an advance copy of the new prediction.

Senior members of the German government are leaning heavily on EU member states, warning “that German automakers could scale back or scrap production plans in their countries unless they support weakened carbon emissions rules,” Reuters writes. Cabinet members are said to focus their strong-arming on EU countries that recently have been bailed-out, mostly with German money. “They have tried everything at the highest level to pressure member states, in particular countries in the bailout club, to support their proposals,” a diplomat told Reuters. The EU Parliament is set to finalize rules that set a 95g CO2 / km limit by 2020.

The fight however seems not so much a quest for cleaner air than an underhanded fight for more breathing room for the auto industries of some member states.

Hopes of a bottoming of the European have been frustrated, and the small April uptick turned out as a flash in the pan.

We warned in April not to read too much into car data, caused by a curious confluence of calendars. We predicted two weeks ago that the EU market will continue on its downward trajectory. And so it does.

Some folks still desperately stick to the fairy tale that the Japanese car market is closed. The same people became excited when European carmakers complained about different Japanese technical regulations – something that was sold as “proof” for Japan walling up its market against foreign imports. The same people claim the U.S. market is open wider than the happy hooker. Not if you ask European carmakers again. Said the European carmaker association ACEA:

With all the troubles in Europe, one would expect Volkswagen to hurt, but the Wolfsburg company is doing just fine, thank you. For the first five months, Volkswagen Group sales are up 5.9 percent to 3.87 million units. In May, global deliveries rose 6.9 percent to 816,500.

In China, Volkswagen could edge out perennial numbers leader GM.

An attempt of Germany to water down CO2 targets, about to be imposed by the EU, explains why automakers are eager to build EVs despite a lack of an eager market. Germany proposes that so-called supercredits can be used to off-set the limits. “Unlimited supercredits could allow the manufacture of electric cars for which there is little or no demand, while allowing just as many polluting vehicles as before on to the roads,” campaigners against supercredits told Reuters.

Despite Victor Muller’s assurances that he is innocent, that he has not been accused of any crime, and that Sweden’s Economic Crime Authority most likely only wants to invite him for a friendly chat, Sweden’s Göteborgs-Posten thinks it knows who is the target of the investigation: Victor Muller, and Saab’s board. In the end, Victor Muller was alone on board. Says the paper:

Former Saab Chairman Victor Muller “will be called in to answer questions related to a Swedish inquiry into alleged tax offenses at the bankrupt carmaker,” Sweden’s Economic Crime Authority told Reuters.

The much debated Volkswagen Law most likely will remain much debated for a while, says Automobilwoche [sub]. The matter is pending at the European Court of Justice, and no decision has been rendered, however, “an influential expert witness” (Automobilwoche) rendered the opinion that the current situation is within the law.

During better times:Kristina Geers and Victor Muller

Key members of the board of bankrupt carmaker Saab were arrested yesterday on suspicions of tax evasion. Former Saab General Counsel Kristina Geers, former CFO Karl-Gustav Lindstrom, and former CEO Jan Åke Jonsson spent the night in jail. After a serious grilling, the three were released today. At the same time, the offices of Spyker in Zeewolde, Netherlands, were searched by police at the request of Swedish authorities, Z24.NL reports.

As predicted by TTAC, European car sales were up slightly in April. Car sales in the EU rose by 1.7 percent in the month, Europe’s car manufacturer association ACEA says. We warned you before not to read too much into it, and we warn you again.

Toyota started shipping French-made Yaris compact cars to customers in North America for the first time this month . Last year, Toyota expressed intentions to do so and said it would be around 25,000 units per year.

In America, government bailouts of ailing car companies are (at least in some circles) viewed as an inalienable right. In the EU, government aid generally is forbidden by law. Ironically, Ford, the only un-bailed-out Detroit company, now is in collision with these quaint continental regulations.

While we wait on the latest round of registration data from Europe (April 2013), a look at January-March 2013 data paints a bleak picture for Alfa Romeo.

The UK new car market was up a strong 14.8 percent in April.

UK’s SMMT says that April registrations stood at 163,357 units, and that registrations in the first four months of 2013 grew 8.9 percent to 768,555 units. However, even the SMMT warns not to read too much into this.

European carmakers, faced with greenhouse gas emission targets much stricter than America’s CAFE rules, can breathe slightly easier. According to Reuters, European politicians backed a compromise deal that keeps stringent targets in place, but that also introduces a loophole: So-called supercredits, gained by making very low emission vehicles, such as electric cars, which nobody actually needs to buy. Quota cars, here we come.

If anyone is hoping for a bottom in the European car market, then it’s nowhere to be seen. In the contrary, the decline appears to be accelerating. European passenger car registrations were down 10.2 percent in March, data published by the European manufacturers association ACEA show. That would be a decline for the 18th consecutive month.

Now that the U.S. and Japan have agreed on a watered-down version of the Trans-Pacific Partnership trade negotiations (America will keep its beloved chicken tax for at least another decade, Japan will protect its rice farmers from the evils of cheap American rice,) negotiations between the EU and Japan about a trade pact are getting underway, with considerably less drama.

If you want to know in how big a trouble GM is in Europe, look at Ford. Ford’s European unit sales are similar to those of Opel. They also are likewise beleaguered. Ford’s EU sales were down 21 percent in February, Opel was down 15.8 percent. The big difference: While GM does not seem to be able to shed capacity anytime soon, Ford had taken swift action.

According to lore, it is impossible to close a factory in Europe. Not true. It’s just outrageously expensive. One company that found out is Ford. The carmaker allocated nearly $200,000 per hourly worker of its soon to be closed Genk plant in Belgium.

The European car market goes to where it has been going for a while: To the toilet. February sales in the EU were down 10.5 percent year-on-year. Sales in February were 9.5 percent lower than an already disappointing January.

The Geneva Auto Salon is a small show in a small city of a small country. The show is big because it is an annual confab of automakers where shoulders are rubbed, mergers are planned, policies are set. The cars are mostly decoration. A top topic in Geneva was how to meet rigid EU emission limits. “There is a growing awareness that conventional hybrids and slow-selling battery cars simply won’t be enough,” Reuters reports from Geneva.

In the good old days, when things were how they were supposed to, the first world got new cars first, and the third world got them three generations later. This time-tested principle is being set on its head. It started as an ugly trend in Japan, where Japanese received their new Latio ages after people in China or Thailand had already wrecked it. Subaru did a similar stunt with the XV. Now this disease is spreading to Europe, and the carrier is the Ford EcoSport.

I shall not be moved: Opel union chief Einenkel

Messy, messy, messy: Can’t even close a proper deal with the unions. GM and the unions have an agreement. It is basically as reported this morning. The deal has the signatures of management and unions. One signature is missing, reports Die Welt: That of Bochum works council chief Rainer Einenkel.

If you think that GM will get a handle on its abundant capacity problems in Europe – abandon all hope. Or rather: Postpone hope for until after 2016, or maybe later. Also, write off any expectations that Steve Girksy would successfully play hardball with German Metalworker Unions. Deadball is more likely. With the decision to move the production of Opel’s Astra volume model from Rüsselsheim to Ellesmere Port, and to shift production from Bochum to Rüsselsheim, the fate of the Bochum plant appeared to be sealed.

German unions declared war. Minutes ago, Opel works council chief Wolfgang Schäfer-Klug announced “an armistice” (Das Handelsblatt) and told German media that Opel will continue making cars in Bochum through 2016. Nobody can be fired, no plants can be closed at Opel until January 1, 2017. Even then, Bochum will remain open.

European new car sales had their worst January in recorded history. The European manufacturers organization ACEA started recording in 1990, and it had never seen a January as bad. New car registrations were down 8.7 percent to 885,159 units in the EU.

If anyone is hoping for a turn-around of the European car market, be it Opel, PSA, or Pch101, January definitely was not the month it happened. Some people, who get paid a lot of money for a very long-term vision, believe we have to wait years for the turn-around. The French car market dropped 15 percent in January, with “Volkswagen and U.S. carmakers leading the drop ,” Reuters reports. Massive sales subsidies of 2,000 euros ($2,700) per car, reintroduced in October in Spain, could not reverse the Spanish market. It dropped 9.6 percent.

Nissan-Renault CEO Carlos Ghosn said today that he does not expect any sales growth in Europe over the next three to four years. He is not giving up on growth, and said that most will come from higher demand in the United States and China, Reuters reports.

New car registrations dropped a painful 16.3 percent in Europe in an acceleration of a long, and initially slow a downward trend . The European carmaker association ACEA calls the decline ”the steepest recorded in a month of December since 2008.” For the year the EU market was down 8.2 percent to 12,053,904 units, which is the “lowest level recorded since 1995,” says the ACEA.

Not enough that people in Belgium are losing their appetite for cars (last we looked the market was down 11 percent), now people have even less reason to go to the Brussels motor show: Belgium’s equal opportunities minister Joelle Milquet asked carmakers to keep their product specialists fully dressed.

We did not believe that EU regulators would let France’s government bailout of GM’s alliance partner PSA skate through unchallenged. State aid to companies is against EU rules, and refinancing of Banque PSA Finance is state aid EU Competition Commissioner Joaquin Almunia wrote in a letter to the French government. This according to a report in the French daily Les Echos.

Car sales accelerate their decline in Europe. The market for new cars was down fourteen months in a row in November, dropping by 10.3 percent compared with November 2011, says the European manufacturers association ACEA. From January to November, 11.25 million new cars changed hands in the EU, 7.6 percent less than in the same period a year ago. Sales in Europe have not been that bad since 1993.

Despite previous calls for his ouster, Fiat’s CEO Sergio Marchionne was elected for another year as president of the influential European auto trade group ACEA, Reuters reports. In July, Volkswagen demanded Marchionne’s head after he had accused Volkswagen of exploiting the European crisis to gain market share by offering aggressive discounts.

Despite being attacked in some circles as symbols of American decadance, the compact crossover is rapidly gaining in popularity. French business outlet La Tribune reports that sales of small crossovers are up 25 percent this year, with crossovers of all sizes now accounting for 10 percent of the car market.

TTAC readers know that this site has an unhealthy fascination with low-cost cars. It’s not entirely unjustified, what with the segment booming in recession-plagued Europe and the fact that low-cost vehicles are cannibalizing the sales of larger, more conventional vehicles.

1,400 new cars, most of them Mitsubishis on their way from Japan and Thailand to Finland went to the bottom of an icy North Sea when the 485 foot car carrier Baltic Ace sunk off the coast of the southern Netherlands last night.

The European contagion claims another victim: The Amsterdam auto show, scheduled for next April, has been canceled, Reuters reports. The organizers could not find enough companies willing to show their wares – for a modest fee upwards from $ 1 million.

The battered European new car market continues its drive into the netherworld, but the speed of descent has lowered a little. According to data compiled and released by the European manufacturers association ACEA, 959,412 passenger vehicles were registered in October, 4.8% less than in October last year. It looks like the year will end with some 12 million cars sold, a level the EU 27 hasn’t seen since it existed.

GM CEO Dan Akerson re-affirmed his committment to Opel while speaking at company headquarters in Ruesselsheim, Germany.

Slovakia is part of the euro zone. While whole countries need to be bailed out or go bankrupt, the town of Zilina is peaceful – and busy. At the Kia plant, more than 253,000 cee’d, Venga and Sportage models have rolled off the assembly lines, more than the plant made all last year, Reuters says.

Renault opened negotiations on a new labor deal for France with a big squeeze, Reuters reports. Renault wants pay and working time concessions from its French workers. If Renault doesn’t get a good deal, jobs could go elsewhere.

The situation in Europe is “very volatile”, Ford CEO Alan Mulally told Reuters today in Berlin. “We don’t know whether it the European economy will stabilize or hit bottom or not because it’s continuing to decrease.”

GM told Reuters that it won’t build the next-generation Chevrolet Cruze in South Korea. Reuters says this is “raising the possibility that GM might shift the assembly to Europe to help boost efficiency at its money-losing unit there.”

Renault shows a facelifted Fluence at the Istanbul Motor Show, November 2-11, 2012. The car receives a new 1.6 16V 115 hp gasoline engine mated to a likewise new X-Tronic CVT.

As expected, Ford is closing an UK plant. Unexpectedly, Ford is closing another one right with it, bringing EU plant closings to three in two days. Ford is closing its Ford Transit plant in Southampton, and it is closing the stamping plant in Dagenham with it, says Automobilwoche [sub].

Ford is expected to announce the closure of its van factory in Southampton, England, Reuters says. British shop stewards have been summoned to an emergency meeting at Ford’s European headquarters in Basildon, Essex, today.

Europe’s second-largest automaker and GM alliance partner PSA Peugeot-Citroen is being saved from the brink for the time being. PSA is putting the final touches on an agreement with creditor banks on 11.5 billion euros ($14.9 billion) of refinancing, in addition to 7 billion euro ($9 billion) in government guarantees for its captive financing arm Banque PSA Finance, Reuters says.

Europe’s car crisis found 4,300 new victims: As expected, union representatives at Ford’s Genk plant in Belgium were told this morning that the plant will be closed. 4,300 workers will be out of a job.

The French government will provide multi-billion euro guarantees to GM’s alliance-partner PSA Peugeot-Citroen via PSA’s banking arm, Reuters says. Don’t bet on it happening: There is already opposition from Germany, and wait until Brussels officially hears of the deal.

The EU sent a warning shot across the bow of protectionist France. Brussels refused France’s request to monitor car imports from South Korea. According to the Wall Street Journal, import surveillance could have been Europe’s first step toward blocking or reversing tariff cuts instated by a free trade deal between the EU and Korea.