The Truth About Cars » Export http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 23 Apr 2014 16:58:35 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Export http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/export-news-blog/ Subaru: No WRX Hatch For U.S. Market http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/ http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/#comments Wed, 23 Apr 2014 13:00:39 +0000 http://www.thetruthaboutcars.com/?p=808482 Subaru Impreza WRX STi Hatchback

For those who want a Subaru WRX or WRX STi, but prefer the utility of the previous hatchback over the current sedan offerings, they should start breathing again, as Subaru will not be bringing such a beast to the United States after all.

Motor Trend reports that last month, WRX project manager Masuo Takatsu informed Motoring.com.au that Subaru “received strong interest from the US” for a hatchback variant, citing the 50 percent uptake by the U.S. market for the previous hatch. The statement came as a surprise to Subaru of America, who weren’t expecting anything more than the sedans:

We do not know about, nor do we have, any plans for a WRX hatch. Takatsu San is the product general manager of the WRX, but this is not something he has discussed with us.

One exchange between Subaru of America and Subaru of Japan later gave the final word: No WRX hatch will be forthcoming to the U.S. market, citing cost issues against producing both sedan and hatchback models.

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Musk: Tesla Will Build Cars In China Within Next Few Years http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/ http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/#comments Tue, 22 Apr 2014 13:00:56 +0000 http://www.thetruthaboutcars.com/?p=807330 Model S - Tesla Motors China

Though Tesla is now just delivering new vehicles to China, CEO Elon Musk predicts his company will build luxury electric vehicles in the burgeoning market within the next three to four years.

Bloomberg reports the move to localized production would allow the automaker to sell their wares while also avoiding China’s 25 percent import tariff. Right now, a new Model S retails for $118,000 in Beijing due to VAT, shipping and import duties, compared to $71,000 in Los Angeles. Musk hopes to qualify the Model S for local subsidies to help offset costs in much the same way the luxury EV sedan receives federal tax credits back in the United States.

In addition, Tesla is expanding its Supercharger network to China, with Beijing and Shanghai among the first cities to join. No word yet as to how much the automaker is investing in the expansion.

A number of challenges lay ahead for Tesla’s move into the market, including slow adoption of electric vehicles among Chinese consumers and lack of a robust infrastructure, as well the loss of China general manager of operations Kingston Chang prior to the automaker’s entry. That said, Tesla plans to increase overall global sales 56 percent this year, moving 35,000 EVs out of the showroom in so doing.

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Honda Pursues 70k Annual US Fit Sales http://www.thetruthaboutcars.com/2014/04/honda-pursues-70k-annual-us-fit-sales/ http://www.thetruthaboutcars.com/2014/04/honda-pursues-70k-annual-us-fit-sales/#comments Mon, 14 Apr 2014 13:30:26 +0000 http://www.thetruthaboutcars.com/?p=797498 2014-honda-jazz-2015-honda-fit-photo-gallery-medium_17

In 2008, Honda sold nearly 80,000 Fit subcompacts to the United States, and is preparing to move 70,000 annually from the lot to the driveways of America thanks to its new Celaya, Mexico plant.

Ward’s Auto reports the automaker had a difficult time hitting the milestone set in 2008 due to production constraints at home and fervent demand abroad. With the new plant, however, Honda will be able to make 200,000 Fits annually, as well as the Fit-based crossover set to begin production later this year.

As for who Honda expects will buy the 70,000+ Fits aimed for the U.S. market — aside from lifestyle bloggers — product planner Hiroaki Hamaya says the subcompact is already “capturing the highest household income and percentage of college grads.” Data from J.D. Power bears this out: Fit buyers hold an average income of $75,000 while 64 percent of them have graduated college. However, median age and percentage of buyers under 35 currently lag behind competitors such as the Ford Fiesta and Chevrolet Sonic.

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Mitsubishi Buys Laguna Ford Assembly Plant http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/ http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/#comments Tue, 01 Apr 2014 17:06:25 +0000 http://www.thetruthaboutcars.com/?p=785649 Mitsubishi_L300_front_20081009

In a push to expand Southeast Asia sales, Mitsubishi has purchased a Ford assembly plant in Laguna, Philippines for an undisclosed amount.

Automotive News reports the plant, which last saw production in 2012, will start back up in 2015 with an initial capacity of 50,000 units per year, expanding to 100,000 annually. The plant will produce both the Adventure and L300 vans.

The second plant in the automaker’s Philippine portfolio, Laguna is key to underpinning Mitsubishi’s strength in the Southeast Asia market, especially in the emerging local auto market where the automaker is second to Toyota in annual sales.

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Fushou: Donfeng’s Dragon Won’t Eat PSA’s Lion http://www.thetruthaboutcars.com/2014/03/fushou-donfengs-dragon-wont-eat-psas-lion/ http://www.thetruthaboutcars.com/2014/03/fushou-donfengs-dragon-wont-eat-psas-lion/#comments Mon, 17 Mar 2014 12:08:15 +0000 http://www.thetruthaboutcars.com/?p=773753 Peugeot Display in China Circa 2013

In light of fears regarding the three-way deal between Dongfeng, PSA Peugeot Citroen and the French government leading toward a time where Dongfeng would take the reins of the ailing automaker, CEO Zhu Fushou assured his company would not do so.

Automotive News Europe reports in an interview between Fushou and French newspaper L’Alsace, the 14 percent stake in PSA is a “win-win cooperation, not a purchase deal but a way to help PSA return to growth.”

In return for a capital increase of 3 billion euro — made up of 800 million euro contributions from both the Chinese automaker and the French government in exchange for 14 percent of PSA — the two automakers will begin work on conquering the Asia-Pacific automotive market with an aim of 1.5 million units annually, as well as helping Dongfeng better compete against local rivals.

As for Europe, the deal will help PSA reduce its share of vehicle sales in its local market from 62 percent to 50 percent as focus turns toward emerging markets, including Russia and South America. In turn, 10,000 jobs will be cut in the next three years as part of the recovery plan for the French automaker.

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Ellinghaus: Cadillac Could “Easily Flourish” In Australian Market http://www.thetruthaboutcars.com/2014/03/ellinghaus-cadillac-could-easily-flourish-in-australian-market/ http://www.thetruthaboutcars.com/2014/03/ellinghaus-cadillac-could-easily-flourish-in-australian-market/#comments Fri, 14 Mar 2014 10:05:57 +0000 http://www.thetruthaboutcars.com/?p=771210 2015 Cadillac ATS Coupe

Sometime in the future, Cadillac global marketing boss Uwe Ellinghaus believes Cadillac could enter the Australian market, being able to “easily flourish” under the proper conditions established on top of the goodwill the brand already has in the country.

Auto Advice reports however the main goal for Cadillac is to go after what Ellinghaus calls “low-hanging fruit” markets:

We see the opportunity [in Australia] and we want to expand into as many markets as we can afford, but it’s also fair to say we have so much growth potential unexploited in China, even in the US, Canada, Russia, Dubai, Mexico… This is the lower-hanging fruit.

We have limited resources and great opportunities elsewhere that we need to make a very careful plan when to enter which market.

Regarding where Cadillac could enter the Australian market, he says the space soon to be vacated by the Holden Commodore would be the perfect point of entry. Offering the brand for Commodore prices, though, would be easier said than done as far as a business case is concerned, pointing toward both the BMW M Series and Mercedes AMG as to where pricing would occur for Cadillac’s high-performance lineup. He also had high hopes for the CTS, and the SRX and Escalade, with the latter two finding huge success in Australian burgeoning SUV marketplace.

As for when Cadillac would enter the scene, Ellinghaus says an introduction would occur near the end of the 2010s at the earliest, and would be headed by one or two models converted to right-hand drive. This follows an near-entry into the market back in 2008 before turning back at the last moment, though not before exporting a few vehicles and appointing dealers to sell them.

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Tesla Hires Renault-Nissan Communications Director http://www.thetruthaboutcars.com/2014/03/tesla-hires-renault-nissan-communications-director/ http://www.thetruthaboutcars.com/2014/03/tesla-hires-renault-nissan-communications-director/#comments Thu, 13 Mar 2014 12:35:00 +0000 http://www.thetruthaboutcars.com/?p=770985 tesla-model-s-10

In preparation to enter the Chinese market while battling state governments of direct sales, Tesla has hired Renault-Nissan communications director Simon Sproule to the role of vice president of communications and marketing for the EV automaker.

Bloomberg reports Sproule’s experience gained from stints with Microsoft, Jaguar, Ford and Renault-Nissan may be of benefit to Tesla, according to AutoTrends Inc. principal Joe Phillippi:

In many respects he’s got the perfect background. He’s been on the tech side, he’s been on the international auto side and he works for a CEO with peripatetic qualities who runs more than one company.

Sproule will be responsible for marketing Tesla to Europe and China — who aim to increase sales of its Model S 55 percent through exports to the two markets this year — while aiding in the fight with various state regulators over direct sales to customers, including this week’s blow-up between the automaker and New Jersey.

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Japanese Automakers Find New Export Base, Opportunity In Mexico http://www.thetruthaboutcars.com/2014/03/japanese-automakers-find-new-export-base-opportunity-in-mexico/ http://www.thetruthaboutcars.com/2014/03/japanese-automakers-find-new-export-base-opportunity-in-mexico/#comments Tue, 11 Mar 2014 14:45:26 +0000 http://www.thetruthaboutcars.com/?p=769626 Mazda3s Loading Onto Three-Tiered Train Car

Within four months of each other, Honda, Mazda and Nissan have opened new factories in Mexico, taking advantage of the opportunities within the nation’s automotive industry to grow a new export base into the United States, Latin America and Europe while also gaining ground in the rapidly expanding local market, all in direct challenge to the Detroit Three and other automakers on both sides of the border.

Automotive News reports Mexico will become the No. 1 exporting nation to the U.S. by 2015 at the earliest in large part due to the 605,000 units per year added by the three Japanese automakers. Meanwhile, Toyota will begin production in 2015 at Mazda’s newly opened Salamanca plant prior to deciding whether or not to build a new factory of their own. Nissan’s premium brand, Infiniti, may also set-up shop in Mexico.

In turn, the Japanese will see benefits from the move, from mitigating losses from a weaker yen in exports from home and greater profit due to cheap labor, to no tariffs on exports to the U.S. due to the North American Free Trade Agreement and improved product availability resulting from shorter distances between markets.

Speaking of free-trade agreements, Japanese automakers will also have access to some 44 countries and up to 40 million sales annually as a result of Mexico’s many agreements, allowing them to take on competitors in Latin America and Europe.

Finally, the Japanese have taken market share away from the Detroit Three in Mexico’s own automotive market, holding a collective 42 percent over Detroit’s 35 percent in 2013, when just four years earlier Detroit dominated with 57 percent of the market over Japan’s 23 percent.

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Winterkorn: T-ROC Will Be Built If Customers Want It http://www.thetruthaboutcars.com/2014/03/winterkorn-t-roc-will-be-built-if-customers-want-it/ http://www.thetruthaboutcars.com/2014/03/winterkorn-t-roc-will-be-built-if-customers-want-it/#comments Sat, 08 Mar 2014 14:00:10 +0000 http://www.thetruthaboutcars.com/?p=767265 Volkswagen-T-ROC-Concept-02

Volkswagen Group CEO Martin Winterkorn is optimistic for the future of the T-ROC, with the automaker willing to build the crossover if the customers want it.

Automotive News Europe reports the production version of the concept crossover — based upon the MQB architecture found in the Audi A3 and Volkswagen Golf — would slot between the compact Tiguan and VW’s planned Taigun subcompact SUV.

Winterkorn believes the concept will have a mass appeal for the automaker’s customer base — especially as sales of crossovers and small SUVs rise in Europe and the United States. VW brand head of development Dr. Heinz-Jakob Neusser concurred, dubbing the T-ROC a logical evolution of the Golf.

The three-door T-ROC seats four, comes with a removable tablet infotainment display, and is powered by a 2-liter diesel found in the Golf GTD, pushing 182 horses through all four wheels.

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Manley: Renegade Will Appeal To U.S. Customers Despite Italian Roots http://www.thetruthaboutcars.com/2014/03/manley-renegade-will-appeal-to-u-s-customers-despite-italian-roots/ http://www.thetruthaboutcars.com/2014/03/manley-renegade-will-appeal-to-u-s-customers-despite-italian-roots/#comments Fri, 07 Mar 2014 20:30:39 +0000 http://www.thetruthaboutcars.com/?p=767217 2015 Jeep Renegade Trailhawk

According to Jeep boss Mike Manley, the Italian-built Renegade will appeal to the off-road brand’s United States customer base despite its Italian roots, especially in Trailhawk form.

Automotive News Europe reports the main concern regarding the Renegade is its off-road capability, which Manley believes will be resolved once the trail-rated Trailhawk arrives in showrooms in 2015 along with the rest of the Renegade family. He also noted the design language expressed by the entry-level Jeep, as well as its footprint, echo that of the CJ family:

The Renegade’s footprint is similar to one of the CJs. It’s much more Wrangler. We’re very pleased, and I think it will work well in the United States.

Though Manley remained silent on the subject of sales figures for the Renegade and platform sibling Fiat 500X, supplier sources expect a total of 280,000 units annually between the two, with Jeep moving 150,000 units and Fiat accounting for 130,000. Price of admission will be announced by Jeep in Q4 2014 for the U.S., Q2 2014 for the European market.

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Volvo, Geely Aiming For BMW, Mercedes With A-Segment Lineup http://www.thetruthaboutcars.com/2014/03/volvo-geely-aiming-for-bmw-mercedes-with-a-segment-lineup/ http://www.thetruthaboutcars.com/2014/03/volvo-geely-aiming-for-bmw-mercedes-with-a-segment-lineup/#comments Fri, 07 Mar 2014 17:52:49 +0000 http://www.thetruthaboutcars.com/?p=767329 2015 Volvo V60 T5 Sport Wagon Exterior-005

Volvo, with parent company Geely, is developing a lineup of premium A-segment vehicles aimed at the BMW 1 Series and Mercedes A-Class.

Edmunds reports the upcoming lineup will include a five-door crossover, a sedan and a hatchback, and will also offer the opportunity for Geely to sell their wares in the United States while offering a similar lineup in its home market.

Under the bonnet will be a range of engines driving either the front or all four wheels, including gasoline, diesel and their respective hybrid pairings, all based upon Volvo’s current four-cylinder engine family.

The A-segment joint venture will be based upon the upcoming Compact Modular Architecture developed in their China Euro Vehicle Technology research and development center, with the first cars due in 2017 at the earliest.

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GM Korea May Increase Exports To Australia http://www.thetruthaboutcars.com/2014/03/gm-korea-may-increase-exports-to-australia/ http://www.thetruthaboutcars.com/2014/03/gm-korea-may-increase-exports-to-australia/#comments Fri, 07 Mar 2014 17:52:32 +0000 http://www.thetruthaboutcars.com/?p=767345 Holden Cruze

As Chevrolet slowly exits from the European market while Holden exits the production line altogether, General Motors is mulling over increasing exports to Australia out of South Korea.

Bloomberg reports the increase in exports is compensation for GM Korea losing as much as 15 percent to 20 percent of its production volume when Chevrolet closes the door on Europe at the end of 2015, and is roughly the same volume needed to fill the showroom floors in Australia while Holden winds down local production — and possibly itself — by 2017.

The Chevrolet experiment ultimately lost General Motors “millions” of dollars according to GM Korea CEO Sergio Rocha, though he expects the Australian market will more than make up for it:

With this money that we call ‘loss avoidance,’ I’m going to have a lot of money in the next couple of years that we can invest in new products to be competitive in the local market and for exports as well.

Meanwhile, GM will focus on Vauxhall and Opel vehicles in their native markets, with Opel also providing select vehicles to the Australian market, beginning with the Cascada convertible.

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Opel Cascada Leading Brand’s Return To Australia http://www.thetruthaboutcars.com/2014/03/opel-cascada-leading-brands-return-to-australia/ http://www.thetruthaboutcars.com/2014/03/opel-cascada-leading-brands-return-to-australia/#comments Thu, 06 Mar 2014 13:30:41 +0000 http://www.thetruthaboutcars.com/?p=766153 Opel_Cascada_Innovation_2.0_BiTurbo_CDTI

Though the local auto industry in Australia is slowly drawing to a close, a few Opels will soon be found in Holden showrooms, beginning with the Cascada convertible.

Carsguide reports Holden dealers were told in a briefing to make room for the convertible on their sales floors, as well as to expect more Opels to arrive in the future. Though nothing more was said about which Opels were to follow, News Corp Australia believes the Astra could be the next in line, sold alongside the locally produced Cruze until the end of all local production in 2017.

The Cascada’s arrival to the Australian market comes after Opel as a brand left the continent in August 2013, where 20 dealerships were folded and 15 office staff based in Melbourne were dismissed due to poor sales; prior to the experiment, Opel sold their cars with Holden badges in the 1990s through the early 2000s.

Opel’s return is part of a strategy by General Motors president and New Zealand native Dan Ammann to reaffirm his employer’s commitment to the Australian market, and to Holden, as he told reporters at the 2014 Geneva Auto Show this week:

We’re going to make sure we bring the product portfolio to the market that the customers really want. The Australian market has evolved a lot… it’s going to come back to how do we best meet their needs.

The Cascada will be sold for $50,000 AUD by the end of 2014.

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Fiat, Abarth Likely To Receive Mazda-Based Roadster Over Alfa http://www.thetruthaboutcars.com/2014/03/fiat-abarth-likely-to-receive-mazda-based-roadster-over-alfa/ http://www.thetruthaboutcars.com/2014/03/fiat-abarth-likely-to-receive-mazda-based-roadster-over-alfa/#comments Tue, 04 Mar 2014 19:19:50 +0000 http://www.thetruthaboutcars.com/?p=764089 2011_Mazda_MX-5_PRHT_--_04-28-2011

Long rumored to wear the Alfa Romeo badge, the next-generation Mazda MX-5 may instead don a Fiat or Abarth necklace in 2015 if Fiat Chrysler Automobiles CEO Sergio Marchionne has the last word.

Automotive News reports sources close to the project stated product planners from Mazda and Fiat met recently to discuss a roadster based upon the MX-5. Fiat’s planners are looking for a way to maintain the supply partnership deal with the Japanese automaker, lest the break-up leave Fiat in the red through 2016, when they hope to return to the black in their native Europe.

As for why, Marchionne has proclaimed that no Alfa will be made outside of Italy so long as he is CEO, a statement reinforced as recently as the 2014 Detroit Auto Show; Marchionne plans to head FCA until 2017 at the earliest.

The so-called heir to the throne abdicated by the Fiat Duetto Spider made famous by the film “The Graduate,” the Italo-Japanese roadster may find a home with Fiat or Abarth, too underpowered be paired with Ferrari or Maserati, while Lancia retreats into its home market as a one-model brand by the end of 2014.

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VW Budget Brand Hitting Budget Wall, Still Under Consideration http://www.thetruthaboutcars.com/2014/03/vw-budget-brand-hitting-budget-wall-still-under-consideration/ http://www.thetruthaboutcars.com/2014/03/vw-budget-brand-hitting-budget-wall-still-under-consideration/#comments Mon, 03 Mar 2014 14:47:21 +0000 http://www.thetruthaboutcars.com/?p=760145 2013 Volkswagen Up

In 2012, Volkswagen began research into starting a budget brand in the vein of Datsun and intended rival Dacia, with the aim of having a full lineup ready for sale by 2015. Two years later, the budget brand has hit a budget wall, and that’s only the start.

Autoblog and Autocar report VW is having issues hitting safety and quality targets while maintaining the low-cost pricing — aimed between 6,000 and 8,000 euro; the Up above begins at nearly 10,000 euro — the automaker expects for the unnamed budget brand.

Though no business case has been found thus far, VW’s project is still under consideration as technicians pour over how similar rivals — including one-time partner Suzuki and considered partner Proton — are able to build low-cost vehicles without compromising on quality or price. Even though Renault-Nissan manages to be profitable with Dacia, VW is concerned that a low-cost car would erode their own margins.

Last year, Volkswagen announced they would work in a joint venture with Chinese automaker FAW to bring a budget vehicle to China by 2016; cost issues are affecting this effort, as well.

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Yamanouchi: Mazda’s Mexico Factory Key To Global Strategy http://www.thetruthaboutcars.com/2014/02/yamanouchi-mazdas-mexico-factory-key-to-global-strategy/ http://www.thetruthaboutcars.com/2014/02/yamanouchi-mazdas-mexico-factory-key-to-global-strategy/#comments Fri, 28 Feb 2014 16:15:21 +0000 http://www.thetruthaboutcars.com/?p=757201 Takashi Yamanouchi

Mazda Chairman Takashi Yamanouchi opened his company’s sole North American factory in Salamanca, Mexico, proclaiming the new factory the key to a global strategy “upon which the very future of [the] company hinges.”

Automotive News reports the strategy with the factory — Mazda’s Structural Reform Plan — follows a three-pronged approach: a hedge against currency exchange disruptions, provide Mazda with a low-cost manufacturing base, and give the automaker access to new markets. The factory’s location allows the automaker to gain more profit for the Mazda3s destined for the United States, than those exported from Japan, while also providing an export base to Europe and access to new markets in Latin America. In turn, Mazda’s new access through Mexico’s free trade pacts provides to markers worth a combined 35 million to 40 million vehicle sales annually.

Though the yen is weakening against the dollar at the moment, Yamanouchi said the factory will act as a hedge against unpredictable currency fluctuations that could bring down profits for his company at any time:

When the yen becomes stronger, we have the Mexican plant, therefore we will never again go into the lost position. But when the yen gets weaker, we will further cost reduce the Mexican plants so it will contribute to our total profitability. Our philosophy is that we will strike the balance of business so that we won’t go into the very difficult times of the past that we have experienced. Never.

The factory is expected to employ 4,600 workers once at full capacity of 230,000 units/annually. Currently, 3,000 employees assemble Mazda3s for the North American market, which will be joined by the Mazda2 and a Mazda2-based vehicle for Toyota. An engine machining plant will also set up shop in the factory by October 2014.

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Hyundai To Challenge BMW, Mercedes With Genesis Sedan In Europe http://www.thetruthaboutcars.com/2014/02/hyundai-to-challenge-bmw-mercedes-with-genesis-sedan-in-europe/ http://www.thetruthaboutcars.com/2014/02/hyundai-to-challenge-bmw-mercedes-with-genesis-sedan-in-europe/#comments Thu, 27 Feb 2014 13:55:32 +0000 http://www.thetruthaboutcars.com/?p=756313 2015 Hyundai Genesis

Set to be introduced to the European premium market at the Geneva Auto Show next week, the Hyundai Genesis will be aimed at establishing a foothold for the automaker in the market against BMW and Mercedes upon arrival in showrooms in June, particularly in Southern Europe, Slovakia and the Czech Republic.

Automotive News Europe reports Hyundai expects to sell 1,000 of the premium sedans to a targeted group of customers who are familiar with the brand, especially those ready to attach diplomat plates to their new purchase. No price has been announced thus far, though the automaker has pegged the BMW 5 Series and Mercedes E-Class as rivals to their Genesis.

Overall, Hyundai aims to increase their market share on the continent from 3.4 percent currently to 5 percent by 2020. Though sales fell 5.5 percent last month, there are already 6 million vehicles on the road, with 70 percent under seven years of age. Customer retention also increased, moving from 36 percent in 2010 to 50 percent in the present, which benefits Hyundai in Europe according to regional head Allan Rushforth:

Working on loyalty is really fundamental to the economics of our business, and the success of our business in Europe. We’ve been a conquest brand to get to this point, but we’ve got to evolve and mature to balance retention and conquest in the future.

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Opel Adam Entering Chinese Market As A Buick http://www.thetruthaboutcars.com/2014/02/opel-adam-entering-chinese-market-as-a-buick/ http://www.thetruthaboutcars.com/2014/02/opel-adam-entering-chinese-market-as-a-buick/#comments Thu, 27 Feb 2014 13:55:15 +0000 http://www.thetruthaboutcars.com/?p=756345 2013-Opel-ADAM-Models

When the Opel Adam enters the Chinese auto market in 2015, it will do so with a Buick badge as General Motors’ first high-end city car.

CarNewsChina reports the Adam will sell for somewhere between 169,800 yuan and 268,800 yuan, the same price range as that of the city car’s main competitor, the Fiat 500. Buick will import the Adam at first, though local production could come to fruition further down the road.

Under the hood, two engines will be available to future Adam owners, including a 1.2-liter engine driving 69 horses through the front wheels, and a larger 1.4-liter with 100 horsepower. Both engines are gasoline-powered.

The customer base for the Adam are those seeking a trendsetting lifestyle machine that has little to do with their parents’ Regal or other sedans.

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Only Select Fiat Dealers Will Get Alfa Romeo Franchises http://www.thetruthaboutcars.com/2014/02/only-select-fiat-dealers-will-get-alfa-romeo-franchises/ http://www.thetruthaboutcars.com/2014/02/only-select-fiat-dealers-will-get-alfa-romeo-franchises/#comments Tue, 25 Feb 2014 12:00:32 +0000 http://www.thetruthaboutcars.com/?p=753569 Alfa Romeo 4C

Fiat Chrysler Automobiles is set to bring Alfa Romeo back into the United States market after a two-decade absence with the 4C, but only the best-performing Fiat dealerships will be selected to sell the first new Alfas when the lighweight $60,000 sports car rolls off the dock in June.

The Detroit News reports the majority of Fiat dealerships who were promised an Alfa wing will not be along for the ride in 2014. FCA CEO Sergio Marchionne stated that his company would only allow “the best-performing Fiat dealers to participate” based on “simple dealer metrics” and efficacy in representing Fiat. Though he also added that said dealers knew who they were, FCA spokesman Rick Deneau countered his boss’s statement, saying that those dealers “have not been identified yet.”

While the 4C will be the only Alfa offering available this year, it will be joined in 2015 by the Giulia, Giulietta and a new Spider co-developed with Mazda, which will also underpin the latter’s new MX-5 roadster. The 4C is motivated by a turbocharged four-pot driving 240 horses out of the back gate, pushing the 1875-pound sports car from naught to 60 in 4.5 seconds.

However, follow-through hasn’t been FCA’s strong suit regarding Alfa’s return, with the brand originally promised to Fiat dealers in 2012, then last year before settling upon June 2014. The return was also promised to come with a full lineup to display in showrooms, but only the 4C will be setting the pace this year as it goes up against the Porsche Cayman and Chevrolet Corvette Stingray.

According to IHS Automotive, selected Fiat dealers will move 500 4Cs in 2014, with 8,400 more in 2015 once more dealers join the fray. IHS also expects Alfa to move 28,000 units in the U.S. by the end of 2016.

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Mexico Besting Japan, Canada In Auto Exports To The U.S. http://www.thetruthaboutcars.com/2014/02/mexico-besting-japan-canada-in-auto-exports-to-the-u-s/ http://www.thetruthaboutcars.com/2014/02/mexico-besting-japan-canada-in-auto-exports-to-the-u-s/#comments Mon, 24 Feb 2014 13:38:27 +0000 http://www.thetruthaboutcars.com/?p=752601 2015 Honda Fit

Mexico’s auto industry is set to ship more product north to the United States than Japan and Canada by the end of 2015, in part due to the effects the North American Free Trade Agreement has had on the country since its signing two decades ago.

USA Today reports that with operations at Honda’s new $800 million plant in Guanajuato now online, the 200,000 Fits destined annually for the U.S. will push total Mexican exports to 1.7 million units this year, just 200,000 more than Japan’s exports from their home market. Mazda’s newest plant 25 miles away, when open this week, will add 230,000 units annually to the total, pushing Mexico past Canada by the end of 2015 to become the No. 1 exporter to the U.S.

At the time of NAFTA’s signing, the auto industry in Mexico produced 6 percent of the total output in North America. Twenty years later, that figure is now 19 percent, with 3 million units leaving the factory floor. Total valuation of the nation’s exports surged to $70.6 billion from $40 billion in 2007. The industry is now Mexico’s primary source of foreign currency, surpassing oil exports and remittances from migrant labor along the way.

This growth is driven by low wages — $16/day on average for Mexico’s 580,000 auto workers — which critics attribute to maintaining Mexico’s poverty rate between 40 percent and 50 percent two decades on. Meanwhile, the nation hasn’t fared any better as a whole, with overall economic growth at 1.1 percent in 2013, the worst rate of growth since the beginning of the Great Recession.

For Eduardo Solis, president of the Mexican Automotive Industry Association, the boom is about more than low wages, citing a new generation of local engineers and increases in automotive research as positive outcomes:

It’s not only about lower salaries. That’s short-sighted. It is a component of a larger equation that has to do with the expertise we are developing.

Aside from NAFTA opening the floodgates, the lack of tariffs has allowed Japanese manufacturers — the main driver behind new production in Mexico — to set up shop easily. Incentives from local governments, such as employee training, tax exemptions and infrastructure improvements, have helped to draw new factories to their cities.

Correction: an earlier iteration mistakenly quoted Mexican auto ages at $16 per hour.

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Toyota Australia Engine Plant Moving To Thailand After 2017 http://www.thetruthaboutcars.com/2014/02/toyota-australia-engine-plant-moving-to-thailand-after-2017/ http://www.thetruthaboutcars.com/2014/02/toyota-australia-engine-plant-moving-to-thailand-after-2017/#comments Fri, 21 Feb 2014 16:30:37 +0000 http://www.thetruthaboutcars.com/?p=751065 Toyota Altona Engine Plant

Sources close to Toyota say the engine plant in Altona, Australia will likely be relocated to Siam Toyota Manufacturing in Thailand once the automaker ceases Australian manufacturing operations in 2017.

GoAuto reports that while the company hasn’t officially announced what will happen to the $331 million AUD engine plant thus far, executives inside Toyota Australia have Thailand in mind as a potential new home for some of the tooling currently in use. The factory exports 16 percent of its 2.5-liter four-cylinder engines to Thailand and Malaysia for fitment in Camry and Camry Hybrid models.

Another reason for the move to Thailand? While Toyota Australia builds 100,000 Camry, Camry Hybrid and Aurion models annualy — 70 percent for export markets, such as the Middle East — Toyota Thailand builds 880,000 units annually, exporting a wide range of vehicles to Australia and Association of Southeast Asian Nations — or ASEAN — member states. Furthermore, a free trade agreement between the two countries means vehicles, such as the HiLux and the Corolla, from Thailand enter Australian ports duty-free.

The plant, partially funded by a $63 million AUD contribution from Australia’s Green Car Innovation Fund and opened at this time last year, will close halfway through its expected lifespan of 10 years in 2017, shedding 2,500 jobs with thousands more down the local supply chain in the process.

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Tavares-Led Peugeot Gains 5.27 Billion Euro Makeover http://www.thetruthaboutcars.com/2014/02/tavares-led-peugeot-gains-5-27-billion-euro-makeover/ http://www.thetruthaboutcars.com/2014/02/tavares-led-peugeot-gains-5-27-billion-euro-makeover/#comments Thu, 20 Feb 2014 17:00:10 +0000 http://www.thetruthaboutcars.com/?p=749857 Carlos Tavares

Former Renault executive and incoming PSA Peugeot Citroen CEO Carlos Tavares aims to use the 3 billion euro investment made in the three-way pact between the automaker, the French government and Dongfeng as part of a 5.27 billion euro makeover of the automaker’s line of vehicles over the long-term.

Bloomberg reports Tavares is directing Peugeot to use the funds gained from the deal — as well as capital provided by Banco Santander via the automaker’s lending arm — to boost R&D funding, and to focus model expansion on the most profitable units.

Though the plan will focus on fewer models in the present with future works released down the road along the way to becoming “a global car company,” Tavares said his plan will not fix everything immediately; growing the DS line from a subbrand to a full line to compete against Audi, as one case in point, would take the better part of two decades to accomplish.

The plan will also decrease the number of models sold in unprofitable markets such as Russia while expanding into potential goldmines such as China with the help of partner Dongfeng, both of whom aim to move 1.5 million units annually by 2020.

Complete details of the plan — aimed at ending the steady decline experienced by Peugeot in their sales fight with regional leader Volkswagen AG, as well its six-year slide in overall sales in Europe — will be unveiled in mid-April, weeks after Tavares takes the helm from current Peugeot CEO Philippe Varin.

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Farley: Ford’s Global Growth Driven By Crossovers http://www.thetruthaboutcars.com/2014/02/farley-fords-global-growth-driven-by-crossovers/ http://www.thetruthaboutcars.com/2014/02/farley-fords-global-growth-driven-by-crossovers/#comments Fri, 14 Feb 2014 12:00:35 +0000 http://www.thetruthaboutcars.com/?p=741409 2015-ford-edge-concept-live-08

Though the F-150 rules over Truck Mountain and North America with an aluminium fist, Ford marketing boss Jim Farley told reporters in a meeting that crossovers are driving his employer’s sales growth all over the globe.

Automotive News reports Ford’s shifting focus to crossovers is thanks in part to the popularity among the automaker’s global audience for the particular body style, as Farley notes:

“Most people think the F series drove our top line unit growth. The No. 1 vehicle was the Escape/Kuga. No. 2 was EcoSport. Together they had about half-million-unit growth for us. The F series was a distant third.”

Farley expects global crossover sales to reach 20 million units by 2018, with 90 percent of the sales — led by the massive hit EcoSport — to be gained outside of the North American market. The aforementioned EcoSport was developed for Brazil, only to see sales jump 220 percent in 2013 upon launch in Europe, India and China.

Speaking of China, the nation is the biggest driver of the global growth now being experienced by Ford, where not only are subcompact crossovers are doing well as are exported North American mainstays Edge and Explorer. The Blue Oval aims to continue the trend when Lincoln’s MKC luxury compact crossover takes the global stage in June against the likes of the Audi Q5, BMW X3 and Land Rover Evoque.

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Hyundai Ready To Add Capacity After Two-Year Break http://www.thetruthaboutcars.com/2014/02/hyundai-ready-to-add-capacity-after-two-year-break/ http://www.thetruthaboutcars.com/2014/02/hyundai-ready-to-add-capacity-after-two-year-break/#comments Tue, 11 Feb 2014 17:00:59 +0000 http://www.thetruthaboutcars.com/?p=739417 Hyundai production line Alabama plant

After a two-year break in expansion mandated by Hyundai Motor Company Chairman Chung Mong-koo in order to avoid quality issues experienced by Toyota during their aggressive growing spurt in the 2000s, Hyundai and Kia are both looking through feasibilities studies to determine where to invest in expanding their manufacturing footprint.

Though the mandate is still in place, the expansion freeze is putting the pressure on both brands’ existing factories to produce more vehicles as it is. In 2013, Hyundai and Kia utilized 105 percent capacity of their factories around the globe, with those in the Southeastern United States running flat-out between 125 percent and 135 percent on two shifts per day.

Sources closes to the expansion plans noted the current ban, though highly beneficial to the parent automaker’s bottom line, is ultimately unsustainable for future success; Hyundai aims to sell nearly 8 million units globally in 2014, and expansion into Mexico and China — and possibly the U.S., though through a cautious approach due to tougher competition in a tight market — would help move the goal post past 8 million

The renewed interest in expansion comes as costs in labor and languid growth prospects in the automaker’s home market are prompting competitors — such as General Motors — to cut back on manufacturing and export, something Hyundai refuses to contemplate. Thus, the search for “investment opportunities” outside of a local market set to peak at 1.6 million sales annually through 2020 beginning in 2016, including three sites in China, whose local market could see 33 million to 38 million sales annually by 2020.

If approved, the fourth Chinese factory would be Hyundai’s first major manufacturing capacity investment since opening their third plant in 2012 alongside one in Brazil, both announced prior to the expansion ban in 2010 and 2008, respectively.

That said, Chung could veto any new expansion investment should such plans be presented.

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Nissan Outsold By Honda In Home, U.S. Markets http://www.thetruthaboutcars.com/2014/01/nissan-outsold-by-honda-in-home-u-s-markets/ http://www.thetruthaboutcars.com/2014/01/nissan-outsold-by-honda-in-home-u-s-markets/#comments Thu, 30 Jan 2014 18:30:23 +0000 http://www.thetruthaboutcars.com/?p=727946 Nissan-Sport-Sedan-Concept-01

Though Nissan remains Japan’s second-biggest automaker with a wide gap ahead of Honda, the latter continues to outsell the former in the United States and at home, much to Nissan’s dismay

According Automotive News, Nissan’s global sales for 2013 increased 3 percent to 5.1 million units, while Honda’s rapid 12 percent growth in sales only managed 4.3 million units in the same period. Further, Nissan sold 86 percent of its 5.1 million vehicles — 4.4 million, to be exact — outside Japan, Honda doing as well by selling 3.5 million of its 4.3 million overseas. Overall, Nissan beat Honda in Europe, Mexico, China and most of Asia, yet lost to Honda in Japan and the U.S.

At home, the reason is due to Honda’s popular line of kei cars (all made in house), and all having undergone a total revamping as of late. Meanwhile, Nissan has partnered with Mitsubishi to make kei cars after years of farming out the practice to the former’s rivals. Though things appear to be looking up for Nissan, they will be looking up at Honda for a good while: Honda sold just over 400,000 kei cars in 2013 to Nissan’s 186,000, while also growing 27 percent in kei car sales against the latter’s 21 percent.

Across the Pacific, Nissan is gaining on Honda’s other home turf, selling 1.2 million units for a 9 percent increase in sales against their rival’s 7 percent increase and 1.5 million units in 2013. Market share in the U.S. held at 9.8 percent for Honda while Nissan took a tenth of a percentage for an even 8 percent in the same period.

Though Honda has done well for itself since becoming the first Japanese auto manufacturer to build a factory in the United States back in 1982 for the Honda Accord — such as exporting more cars around the world from the U.S. than from Japan in 2013 for the first time ever — Nissan aims to turn up the heat through the tandem of new production coming from Mexico, and aggressive tactics devised by Nissan North America’s new chairman Jose Munoz, who is under standing orders to boost his employer’s share of the U.S. market to 10 percent.

Either way, both Honda and Nissan still have a ways to go to take on Toyota; the No. 1 Japanese and global automaker moved 9.98 million units worldwide in 2013.

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