First signs of the interaction between Opel and its Bochum workforce getting nasty. Today, Opel workers in Bochum stopped the lines for several hours to attend a so-called “information session” with the works council, Germany’s Automobilwoche [sub] says.

Daimler presented its new S-Class yesterday night in the airbus factory in Hamburg, and with the pomp and circumstance appropriate for a car that is supposed to bring the big turn-around at Daimler. German Spiegel magazine promptly grouched “that the most revolutionary part in the car is the fact that in large parts, it is not new at all.” Der Spiegel called an unimpeachable witness: Germany’s Kraftfahrtbundesamt, the agency that issues type approvals in Germany. It simply amended the type approval for the old W221 model.

GM won’t punish its German workforce for the uppity behavior of Bochum’s employees. Instead of moving production of the Zafira to UK’s Ellesmere Port, as some expected, production will remain in Deutschland.

BMW’s CEO Norbert Reithofer lambasted EU lawmakers for attempting to “hurt European industry in competition with the United States and China,” as Reuters reports. Said Reithofer at today’s General Meeting of Shareholders in Munich:

Our cross-cultural adviser, showing a little A-Class

Bloomberg relentlessly covers a fight very few care about: Who sells the most “luxury cars?” Never mind that the only way to win this is to sell more, what do they call them, “approachable” cars. Which Bloomberg’s latest dispatch from the upper class struggle aptly proves.

Now that Opel workers in Bochum refused a plan to keep the factory open, now that an intervention by UAW’s Bob King went exactly nowhere, the question is where to move production of the Opel Zafira when Bochum closes its doors by end of 2014.

In the running: Rüsselsheim, Germany, and Ellesmere Port, UK.

Germany’s new car sales were up 3.8 percent in April, says Germany’s Kraftfahrtbundesamt. This is the first time in nearly a year that German car sales were in plus territory. In France, an April loss of 5.2 percent already was feted as the turn-around. Has the European bottom been reached? I don’t think so.

German autoworkers want their share of the record profits announced by German carmakers last year. IG Metall labor union demanded 5.5 percent. Employers countered with 2.3 percent. Today, workers went on strike.

Porsche is looking to fill 1,400 jobs in for its expanded factory in Leipzig, where the new Macan SUVlet will be built by the end of the year. A lot of these jobs will go to current Opel workers, says Germany’s Focus.

After plans failed to sue Porsche in America, where juries are impressionable and awards are rich, the lawsuits are now in Germany, where courts are cautious, and where professional judges need to be convinced. The wheels of justice crank slowly.

Bob King’s attempts to ingratiate himself with German unions, and to make Opel’s Bochum workers reconsider their decision to turn down Opel’s restructuring plan, are being ignored. Actually, it appears as if they had the opposite effect. Days after King’s comment, Bochum plant manager Manfred Gellrich rejected new discussions, saying Opel does not want to “waste precious time,” Reuters says. Over the weekend, Opel dropped another bomb: Bochum will be closed completely. A parts depot that was supposed to stay open, will also close its doors.

“The coming months will be anything but easy,” Volkswagen CEO Martin Winterkorn told Reuters today at VW’s annual shareholders’ meeting. Nevertheless, he still plans to rule the world.

UAW boss Bob King told Opel’s Bochum workers to vote again, and to this time accept a deal that had been worked out between the German metal worker union IG Metall and GM.

Badge engineering: Kangoo, Dokker, Citan

Condition red at Daimler: Germany’s influential auto club ADAC gave the Mercedes Citan only three out of five stars in the Euro-NCAP-Crashtest. The loss of stars means “a meltdown” for the starred brand, says Automobilwoche [sub], “after all, the vehicle is supposed to excel with supreme safety.”

The American justice system has shown a large degree of overreach in the not so distant past, punishing or shaking down foreign companies for misdeeds performed on foreign soils by foreign perpetrators on foreign victims. This is not a matter of right or wrong. It is a matter of jurisdiction and sovereignty. Enough is enough, says the U.S. Supreme Court and decided to hear Daimler’s appeal against a decision by a San Francisco court that workers or relatives of workers at an Argentina-based plant operated by Mercedes-Benz, a wholly owned subsidiary of Daimler, can sue for alleged human rights abuses performed by Daimler in the 1970s in collusion with Argentina’s then military junta. Daimler had been on the receiving end of judicial overreach in the past.

At the Shanghai Auto Show, which opens to the public on April 21, and to tens of thousands of alleged members of the media the day before, the child of one of the auto industry’s oddest couples will be shown – at least in prototype form. It is the Denza EV, the product of a mésalliance between the world’s oldest and proudest automaker, Daimler, and a company that entered the annals of contemporary automotive history as the most brazen rip-off artist.

Of course we are talking of BYD, the Shenzhen, China, based maker of half the world’s cellphone batteries and a dwindling number of cars. A while ago, I visited an intrepid team of German engineers, shacked up at BYD, to jointly develop an electric car. They were friendly, hospitable, and as forthcoming as possible under the strange circumstances. For months, I could not bring it over me to put my fellow countrymen and expats in the dim light this story would project. Their job is tough enough. But in the interest of timeliness and journalistic duty, here it goes.

As the owner of a geriatric, but otherwise well maintained car, you know that getting parts can be a bitch. Depending on company policy, ex-factory supply of parts can cease after 12, or, if you are the lucky customer of a more dedicated maker, 15 years after the end of regular production. BMW now goes against that trend and offers parts for a car that went out of style 73 years ago.

Opel’s Supervisory Board, with half of its members delegates of the labor union, decided today the first closure of a German car factory in decades. According to Reuters, “Opel will end producing Zafira MPVs at its 50-year old Bochum plant by the end of next year, a move that has triggered a rare and public split within union ranks following months of tough negotiations.”

The closure will lead to the loss of 3,000 jobs in Bochum, as part of Opel’s attempt to put an end to 15 straight years of losses in Europe. It will be a while.

Red alert for armchair marketing strategists: Daimler plans what surely will be branded as an inexcusable watering down of its brand equity: The Mercedes brand is working on a series of very small (under 4 meters) and affordably priced (17,000 to 20,000 Euro) cars.

Germany’s Chancellor Angela Merkel made appreciative noises o ver the 4 billion EUR GM wants to invest into Opel through 2016, but gave no indication that she is willing to chip in.

GM CEO Dan Akerson and his dispatched-to-Europe fixer Steve Girsky emphatically denied that its loss-making Opel arm is up for sale or might be merged into a joint venture with equally loss-making Peugeot.

A few months ago, we discussed what Nissan/Renault’s Carlos Ghosn calls a “structural decline” of Europe: Missing car buyers, brought on by a sudden decline of births around 1970. A population peak that now sits smack in the middle of the prime new car buying age, which in most of Europe is between 40 and 60 years, will retire in a few years, throwing Europe’s car industry in turmoil. Daimler, which has some of the oldest buyers, is beginning to feel the pain.

Volkswagen chairman Ferdinand Piech solidifies his and the Piech-Porsche clan’s control of Europe’s largest carmaker by placing his wife in positions of power. A year after taking a seat on Volkswagen’s supervisory board, Ursula Piech will be up for certain election to Audi’s supervisory panel at the annual shareholders’ meeting on May 16, Reuters reports.

GM CEO Dan Akerson and freshly minted Opel CEO Karl-Thomas Neumann will receive a one hour audience with German Chancellor Angela Merkel this Thursday “to discuss the rejection of a plant closure timetable by workers which could speed the factory’s shutdown,” as Reuters reports.

For years, Greenpeace and Volkswagen were engaged in a low level conflict over alleged high levels of CO2 emissions. Now, both sides decided to declare victory and to go home. After announcing ambitious CO2 goals before the Geneva Motor show, Volkswagen had a sit-down with Greenpeace, where both decided to bury the hatchet.

GM has a huge problem in Bochum – or an unexpected opportunity. Workers at Opel’s Bochum plant yesterday refused a restructuring plan that would guarantee auto production in Bochum through 2016, and that would keep the plant making components after that. GM answered on the same day: ”Production of the Zafira Tourer and the waiver of enforced redundancy will end after 2014.” This would open the door to closing the doors in Bochum.

It also could become extremely costly for GM.

The head of Germany’s metal worker union IG Metall, Berthold Huber, urged workers at Volkswagen’s Chattanooga plant to join the UAW. In a letter distributed to Chattanooga workers, obtained by Reuters, Huber says:

News of Volkswagen being open to establishing a works counci l at its plant in Chattanooga are widely interpreted as the UAW getting a long-sought nose under the southern tent. It could also be a shrewd move to block the union.

No overcapacity problems at Volkswagen – at least not globally, and especially not in China. “Within the coming years, we will build at least ten more plants – seven of those in China,” Volkswagen chief Martin Winterkorn said today in Wolfsburg, with Automobilwoche taking notes. By 2016, Volkswagen will have capacity for more than four million units in China, that’s about half of VW’s current worldwide output.

Audi showed its A3 Sedan in concept form at the 2011 Geneva Auto Show. The real thing will be shown in Audi’s most important market, at the Shanghai Auto Show, end of April. The car will be sold in early 2014 in the United States and China, Reuters says.

Despite Audi CEO Rupert Stadler’s warnings that the effect of the Chinese New Year affects the usually glorious Audi numbers, Audi’s February sales still are something to be proud of.

Audi’s global deliveries were “clearly lower” than in January, Audi’s CEO Rupert Stadler told Reuters reporter Andreas Cremer in Geneva. Audi’s global sales were up 16.3 percent in January. There won’t be a minus said Stadler, even while fighting the lunar calendar, Audi will report a single digit plus.

Audi’s numbers won’t be the only ones that won’t look as good as the month before.

Bad omen for Europe: The German car market, considered one of the healthier in Europe, was down 10.5 percent in February, compared to the same month in the prior year. News from other European volume markets are worse.

I have been trying to make heads or tails out of yesterday’s contradicting news about the big deal between Opel and the unions, and so does German media. So much is clear: The truth and GM’s press release about a “successful conclusion” of the negotiations with the Opel works council are miles apart. There is no deal. Unions and Management are still in negotiations, the negotiations will continue this coming week. Then, the workers have to vote. It does not look good: Bochum’s works council is dead set against the deal. It gets worse.

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.

BMW executes on its plan to bring at least one new MINI to every show it graces. In Geneva, it is the MINI John Cooper Works Paceman, a.k.a. the MINI with the maxi name. If we believe the press release, the car “combines mouthwatering sporting flair and inimitable style to usher in a new dimension in driving fun.”

What’s more, “the new model sees the compact Sports Activity Coupé concept wrapped up in an extra layer of muscular proportions and dynamically stretched lines.”wait, there’s …

When I helped Volkswagen launch its Golf GTI in 1976, Volkswagen wanted to make only 5,000. They wanted to make even less, actually, but 5,000 were needed for homologation as a racer. Volkswagen was convinced that no mentally stable person would be nuts enough to buy a little car like that with a 110 hp engine. Boy were they ever wrong. It took well into the 80’s for the Golf GTI to come to America. When I said “Americans love muscle cars,” the answer was: “Haven’t you heard? 55 miles an hour.” Wrong again. Today, Volkswagen shows the seventh generation of the archetypical hot hatch. at the Geneva International Motor Show.

Yesterday, we wrote about Susan Docherty’s grand strategy for Cadillac: Make Cadillac great in Europe to convince the Chinese to buy Cadillac. Clever strategy. But what if it fails in Europe? Trust me, its European failure is assured. In the meantime, the story has landed in Europe. Germany’s premiere car dealer magazine Der Kfz-Betrieb runs with the story today (with a nice shout-out to TTAC, Danke.)

The experts at Der KFz-Betrieb give the grand Cadillac strategy only passing mention and recommend to check with TTAC if someone wants an assessment. What the magazine is most interested in are Docherty’s comments about the “lackluster performance of Chevrolet in Europe.”

By Thursday, GM wants to have a definite deal with the Opel unions at least that’s the deadline Steve Girsky has set. The parties are further apart than Dems and Reps over the sequester. Steve Girsky wanted the unions to agree that Opel’s toolmaking, prototype building and central production planning will be outsourced, or moved to GM’s plant in Gliwice, Poland , Der Spiegel says. The unions are rightly horrified.

“Dieter Zetsche is lucky that he can stay for three more years,” writes Der Spiegel in Germany. The labor side of Daimler’s Supervisory Board had demanded Dr. Z’s head, the magazine writes. After long debates with Daimler’s Supervisory Board Chairman Manfred Bischoff, a compromise was found.

Winterkorn gets honorary PhD. He deserves it

Despite a severe contraction of its European home market, Volkswagen today announced record earnings for 2012. The group delivered an after tax profit of €21.9 billion ($28.9 billion) up from €15.8 billion ($20.9 billion) in the preceding year.

It is unusual that the supervisory board of a large German corporation denies the dearest wishes of its Management. If the board does not like a wish, the wish usually won’t be rendered in the first place, the tight community of executive assistants will see to it. It would be most unusual that the board denies the wish of its CEO to run the company for another five years. Daimler’s board did the impossible: It denied Dieter Zetsche’s wish for another five-year contract, and gave Dr. Z. three years to get Daimler’s house in order. It’s a mission impossible. The mustachioed will sit out his career as a fall guy.

Daimler is dead set against using the new refrigerant HFO-1234yf, even if it is forced down it throat. The EU makes it a must in all news cars, but Daimler says it can fry and kill you. Now, Daimler can get burned big-time. Without HFO-1234yf, its new S-Class will be illegal, but “using HFO-1234yf is out of the question,” a Daimler spokesman told Automobilwoche [sub].

The Chinese-Israeli co-production Qoros has not sold a single car yet, but it already finds itself in the legal hot seat. Via a temporary injunction of a court in Hamburg, Germany, Audi precluded Qoros from using – the letter Q.

Kate Upton was hoped to be Michigan’s hottest export, but she sold her big-breasted soul to Mercedes. Turns out, she doesn’t like cars. She prefers a horse.

Volkswagen raced into the new year, and any silent hopes by the competition that the Wolfsburg juggernaut would finally be slowed down by the drag called Europe were dashed. Europe’s largest carmakers began the year with a 14.9 percent increase, delivering nearly 100,000 units more worldwide than in January 2012.

For those who want a topless car that can render passengerettes truly topless, Volkswagen introduces the Golf R Cabriolet. The über-powered R models never were available as a ragtop, no it is. “Tremendous propulsive power” (so the press release) is generated by a 2.0-litre turbo TSI engine that develops 265hp. Maximum torque of 350NM (258 ft lb) is available from a low 2,500 rpm all the way to 5,000 rpm.

Hackenberg and Winterkorn

TTAC has been following Volkswagen’s new building block architecture for years. Now, it finally begins to sink in what it means. Suddenly, there are media reports more effusive than we ever dared. An article by Reuters compares Ulrich Hackenberg, Volkswagen’s father of the Modularer Querbaukasten MQB, with “the likes of Henry Ford, Alfred Sloan and Taiichi Ohno in the canon of auto industry pioneers.” The architecture, says Reuters “is helping power the German company to the top of the global sales charts several years ahead of its 2018 target. It could also make VW one of the most profitable carmakers in the world.”

Legs of RenCen executives must be covered with black and blue marks from kicking themselves daily for not unloading Opel when the German government offered to take the sick patient off GM’s hands. A deal, financed with $6 billion courtesy of German tax payers and a little petty cash from Russian bankers would have given GM a little money and an immediate end of the huge losses at Opel. Frankly, nobody in Germany had much hope for an Opel under Magna and the Russians either, it was seen as a hospice where to wheel the sick patient until it dies in silence, a la Saab.

At the last minute, GM changed its mind. Who made the ill-fated decision? Was Akerson for keeping Opel, or for getting rid of it?

This was then ….

1973, the year when BS started his long career of doing propaganda for Volkswagen, is known for two equally momentous occasions: Volkswagen prepared for the initial launch of the Golf. Also, formerly staid Volkswagen became a bit risque when marketing its iconic Bug, and promptly got into hot water. 40 years later, they are doing it again. Hopefully, people have more humor than 40 years ago. I doubt it.

Opel sales chief Matthias Seidl

The rebellion of German Opel dealers against a new, complicated and – in the dealers’ views – disastrous distribution system was victorious. Opel’s sales chief Matthias Seidl withdrew the discredited and disdained design. “Dealers succeeded with their demands for a simpler system,” writes Automobilwoche [sub].

It is good to hear that bad puns have survived a decade of uptight up-positioning at Volkswagen, and are alive and well. You had me worried, friends. Under the tagline “As sun as possible”, Volkswagen starts a digital campaign that brings the new Beetle Cabriolet to the Interwebs.

Opel’s new CEO Karl-Thomas Neumann isn’t officially CEO yet, and he already is facing a rebellion of his troops. Opel dealers threaten to discontinue the brand if Opel won’t withdraw a new distribution system. The dealers say the system comes from where Neumann and Opel’s sales chief Matthias Seidl come from: From Volkswagen.

More bad news from Europe: The new car market in Germany, last year an island of stability in a sea of red, was down 8.6 percent in January. On the back of worse news from other European volume markets, this does not bode well for when ACEA will publish its European data next week.

It was one of the worst-kept secrets: Two weeks ago, Reuters reporters had picked up the scent of Daimler planning a big investment into China’s BAIC. This week, rumors started flying around in Beijing that it is true. Today, Daimler announces, as expected, that “Daimler AG is going to invest in BAIC Motor, the passenger car unit of BAIC Group, one of the leading automotive companies in China.”

Audi follows a trend set by other OEMs, notably GM, and opens an R&D Center in China. Located in Beijing’s fashionable 751 D-Park , the center will be busy doing product customization for the Asian market, especially when it comes to electronics and connectivity, along with components for new-energy vehicles and efficient powertrains.

In 2007, when Martin Winterkorn took over as CEO of Volkswagen, he said that Volkswagen wants to be better than Toyota, not just in units, but in profitability, innovation, customer satisfaction, everything. This morphed into the “Strategie 2018”, which called for world domination no later than what the name says. Today, Volkswagen changed its mind. Declaring an early victory, it wants to move on.

Not to anyone’s huge surprise, the Opel Supervisory Board today confirmed former Volkswagen exec Karl-Thomas Neumann as CEO of Opel. To make the job a little more interesting, “General Motors appointed Dr. Neumann president of GM Europe and GM vice president,” as a GM communique says. It continues that Neumann “will become a member of GM’s Executive Committee and is expected to play a key role in the global leadership of GM.”