VW and Suzuki?
By Bertel SchmittJune 25, 2009
While Porsche has problems consummating the Volkswagen takeover, Volkswagen covets a smaller, but possibly juicy target: Suzuki. The German Manager Magazine has it on good authority that VW wants to get cozy with the Japanese maker of small cars. Buying, say, 10 percent of Suzuki would not be out of the question. Ulrich Hackenberg, head of VW’s R&D, had been in Hamamatsu, Japan. He came back impressed. “We are still in the sniff phase,” said a VW exec to Manager Magazine, no serious negotiations are being held—yet. Ferdinand Piech had praised Suzuki in May. Not that VW needs help building small cars. But they could need help where Suzuki is the market leader: In India, next to China the most promising growth market on the planet. Suzuki had a partnership with GM, but last year, all GM shares in Suzuki were turned into cash, so the coast is clear.
Posted in Germany | India | News Blog | 18 comments 
New Jag Roadster to Arrive with Snarl, Whine
By Edward NiedermeyerJune 16, 2009
Motor Trend has “learned” that a version of the oft-rumored Jag “XE” roadster might have more than just a supercharger whine. They say the 2011 (likely XF-based) “new age E-Type” (lots of luck) will include an extended-range electric version. But don’t worry heritage fans . . . there will still be a proper engine. With three cylinders. Motor Trend kids you not. At least until they mention that “whether the extended-range XE will make it beyond the concept stage is uncertain.” But only after hinting that the forthcoming XJ is also due for the EREV treatment, circa “late” 2011. Time, tide and CAFE standards wait for no automaker? MT figures an EREV Jag will compete with the Tesla Roadster. Which, considering the differences between the XF and the Elise as starting points, probably only means the EREV Jag soft-top will cost around $100K. Perhaps sir would rather look at a V8 model?
Posted in Future Vehicles | India | News Blog | 10 comments
Nano Inbound
By Edward NiedermeyerJune 8, 2009
Automotive News [sub] reports that Tata plans on bringing a version of its Nano subcompact to the US market “in about two years.” About? “Maybe two years and six months,” equivocated Tata chairman Ratan Tata at the Cornell Global Forum on Sustainable Enterprise. But the Indian firm faces at least one major challenge: where to sell the thing. Jaguar/Land Rover North America spokesfolks say that “Tata will not use Jaguar Land Rover’s distribution network and vice versa.” For obvious reasons. The Nano boasts none of the small-but-premium appeal of BMW’s MINI or Chrysler’s forthcoming Fiat 500. So where will it sell? Roger Penske’s Saturn World Market? Global Vehicles U.S.A.’s 330-strong Mahindra distribution network? Wal-Mart?
Posted in Branding | Future Vehicles | India | News Blog | 35 comments
Nobody Wants the World’s Cheapest Car
By Edward NiedermeyerMay 26, 2009
Who’d have thunk it? The New York Times reports that despite being designed to become the world’s cheapest car, the Tata Nano isn’t attracting as many budget buyers as you might expect. Only 20 percent of Nano orders (India market only) are currently for the base model, a $2,600 vehicle. Half of all orders are for the top-of-the-line model, which boasts such ameneties as cup holders and air conditioning but costs some 40 percent more than a base model. When the Nano was announced, its lowest possible cost was widely touted to claims that it would become “India’s Model T.” And though the low-cost-at-all-costs approach hasn’t been wildly popular, orders for the well-optioned model will help Tata stay out of a profit-draining battle on price alone. But that isn’t stopping competitors from planning ever-cheaper models. Renault/Nissan is planning a $2,500 model developed in conjunction with Bajaj Auto. Toyota is also rumored to be pursuing a low-cost car for the Indian market.
Posted in India | News Blog | 25 comments
Hyundai Abandons India For Europe
By Bertel SchmittMay 8, 2009
In the WTF dept., “Hyundai Motor India is planning to shift production of one of its premium models to Europe after a strike over unionization at its south India plant that led to the mass arrest of 750 protesters,” reports Financial Times.
The move reflects growing skepticism of international automakers about the political climate in what used to be one of the world’s most promising growth markets.
Posted in India | News Blog | 29 comments
Tata Nano PR Campaign Takes More Prisoners
By Robert FaragoMarch 25, 2009
There’s only one thing worse than realizing you’re a cynical bastard: realizing you’re a cynical bastard and the world really IS that corrupt. Oh well. The truth hurts, both giving and receiving. In this case, I had high hopes for the Tata Nano. As the son of a Romanian immigrant for whom car ownership was proof positive that America is the world’s greatest country, I believe that the motorization of the world’s largest democracy would unleash that nation’s creativity, productivity and prosperity. But when Tata “launched” the Nano two days ago, without a factory to produce it, I smelled a rat[tan]. The next day, there it was: Tata’s in not-so “secret negotiations” for a billion dollar UK bailout for their ill-advised—not to say hubristic—purchase of Jaguar and Land Rover. So, there’s your timing then. Oh, and the announcement on Autobloggreen this morning that the NSFA (Not Safe For America) Tata will export the micro-car to America (with a few mods, ’natch) in 2011 or 2012 (or 2020) is not to be taken seriously. The argument that Tata’s pie-in-the-sky promise to do the same for Europe actually weakens the case, not strengthens it. Or maybe that’s just me being cynical again. One can only hope.
Posted in Future Vehicles | High Finance | India | Media | News Blog | 16 comments
Tata Launches Nano. In Theory.
By Robert FaragoMarch 23, 2009
Autocar reports that Indian automaker Tata will spend part of its day launching their NSFA (Not Safe for America) Nano in Mumbai. In case you’d forgotten—what with all the delays—the Nano is slated to be the world’s cheapest car. “The tinny four-door will sell for 100,000 rupees or $1979 (£1366) when the company takes bookings next month.” Sorry, typo. “Tiny.” So, it’s not REALLY launching the car. And it’s only TAKING BOOKINGS next month. Autocar reveals that DELIVERY will start well after the factory’s built, which “should be up and running next year, despite delays caused by an industrial dispute, but may only have capacity to build 350,000 cars a year. Until then Tata is thought to only be able to provide 50,000 cars annually.” So less, later, maybe from Mumbai. So what’s up with that? “Despite facing huge demand for the Nano, experts estimate the car will not create enough revenue to refinance by June a $2 billion (£1.3 bn) bridging loan Tata used to buy Land Rover and Jaguar from Ford.” Spinning wheels. Got to go ’round.
Posted in India | New Cars | News Blog | 41 comments
Tata Motors. Profile of an Indian Car Company in Trouble
By John HornerFebruary 2, 2009
India’s Tata has gone from darling to dumpling in just a year. The high profile Nano People’s Car project still hasn’t gone into production, and the $2.3b purchase of Jaguar and Land Rover now seems spectacularly ill-timed. Business Week recently covered the story with these great opening notes: “What a difference a year makes.” India is in the throes of its own economic crisis; thanks to high inflation, high interest rates, tight credit markets, excessive corporate debt and a suddenly spending averse middle class. Pretty much like most places in the world, but a little different.
Posted in India | News Blog | 24 comments
UK Wants To Bail Out Jaguar. Financial Times Hates It. With A Vengeance
By Bertel SchmittDecember 19, 2008
The Financial Times (sub) is pissed. Pissed at Peter Mandelson, Britain’s business secretary, and his planned bail-out of Jaguar Land Rover. Forgetting the old school of not mixing reporting with opinion, the FT pulls out the flame thrower and blasts away: “It is hard to imagine a less deserving candidate. The luxury carmaker fails the public interest test on two key grounds. First, its products are of questionable social utility. For the government to allocate scarce funds to prop up the production of the 4.2 Litre V8 Petrol Supercharged Jaguar is a nonsense. It has a top speed of more than 150mph, emits 299g of carbon dioxide per kilometre and costs about three times the average annual wage. True, the UK car industry employs 190,000 people directly and supports several hundred thousand more once components and retailing are taken into account. But if Mr Mandelson wants the government to underwrite this £50b industry, he should harness such public funds as are available to develop the green cars of the future, not pander to vested interests.”
Hmmm. Let us remind you: This is not a rabid blog. This is the venerable Financial Times. We kid you not. Would the pink Financial Times be so ferocious if Land Rover and Jaguar still be a company that’s firmly in British hands? We guess not. The FT seems to have issues with the current owners of Land Rover and Jaguar, who happen to sit in one of Britain’s old and long departed crown colonies. After refilling the flame thrower, the FT launches an incendiary attack in the easterly direction:
(more…)
Posted in India | News Blog | 22 comments
Mahindra: “We Don’t Need No Stinkin’ Jeep Nameplate”
By Edward NiedermeyerDecember 11, 2008
..although some US dealers might be nice! Indian firm Mahindra and Mahindra showed this tasty little neo-Willys at the recent Bologna auto show. The the 12-foot long, 1.5 ton off-roader concept sports a 2.5 liter diesel four, making 108 hp and 250 Nm. And since it is just a concept, that’s about all the info that Auto Motor und Sport could dig up.
Posted in Diesel | Future Vehicles | India | News Blog | 15 comments
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