Chinese Military Dictatorship Bans Car Pollution, Manages New Car Market
By Robert FaragoJuly 1, 2008 -
Ah, to be the head of a "managed" economy! Let's say you want to clean-up Bejing's foul air for the Olympics, so athletes don't retch, collapse and die of asphyxiation in front of billions of international onlookers. Simple. First, ban 300k cars in a single stroke. Sorry, your car is illegal. Drive it between now and September 1 and we'll confiscate your car and throw your ass in jail. "The next stage," ABC News [AUS] reports. "Will be for all private cars to be banned on alternate days using an 'odds and evens' number plate system. This will start on July 20 and is expected to take 45 per cent of cars off the streets." That's 45 percent of the 50 percent of Beijing traffic that remains after the first ban. Next? "Factory closures and a halt to major construction will also occur during the same period." Anything else? Raise gas prices. "State-owned oil companies, now subsidizing fuel prices, have been losing hundreds of million of dollars," The Detroit News reports. "Today, Chinese drivers pay $2.85 for a gallon of gas versus $4 in the U.S." Tomorrow, more. China's leaders will work on kicking-out foreign automakers eventually. But that's enough for today, yes?
Posted in Politics | Overseas | Crime & Punishment | News Blog | 14 comments 
France Introduces Annual Carbon Tax on Cars, Etc.
By Frank WilliamsJuly 1, 2008 -
Last year, France introduced a system known as "bonus-malus." Under the scheme, people who buy gas guzzlers have to pay a €200 - €2600 penalty. Consumers option for something more "environmentally friendly" get a €200 - €1,000 bonus. Automotive News [sub] reports Environment Minister Jean-Louis Borloo plans to "amplify" the program. Car buyers who purchase "extremely polluting" vehicles will soon pay an additional annual fee. As in carbon tax. Borloo didn't say when he plans to start the extortion new program. But here's the best part: "Borloo has said in the past that the system of penalties and rewards applied to vehicles could be extended to other products such as electronic goods." Liberté, Egalité, Fraternité!
Posted in Europe | Green | Overseas | Fuel Economy | News Blog | 18 comments
Dan Neil: Just Think What Ford Could’ve Done with EVs
By Robert FaragoJune 28, 2008 -
To bring you up-to-speed (so to speak) on Norway's homegrown EV maker: "In 1999, Think [was] bought by the Yankee giant Ford Motor Co.," LA Times writer Dan Neil relates. "which was scrambling at the time to comply with California's Zero Emission Vehicle mandate, essentially requiring automakers to build fleets of electric vehicles. Ford renamed the company Think Nordic and began a complete redesign of the car. When, in 2003, the American automakers succeeded in modifying California's mandate, Detroit's flirtation with electronic vehicles ended. General Motors Corp. famously killed the EV1 program, and Ford sold Think to a Swiss electronics firm." So Dan flew over to Aurskog to have think about the recently resurrected Think (and avoid using the word "think" until the summation). Once again, range. "Now, after several course corrections that added perhaps 20Still the Think City — a 2,449-pound runabout with plastic body panels and an official range of 112 miles on full charge — hums along." AND [allegedly] meets federal crash and safety standards, thanks to FoMoCo development. While Think has yet to think-up a suitable anything plan for the U.S. market, Dan thinks Think proves that EVs are viable. I think. "Is a safe, practical electric car possible? The answer seems to be yes."
Posted in Electric Vehicles | Overseas | Media | News Blog | 21 comments
The Honda Accord Station Wagon You Can’t Have
By Robert FaragoJune 28, 2008 -
Presuming, of course, you're reading this in North America, rather than, say, New Zealand. NZ's Otago Daily Times claims to be surprised (surprised I tell you) by the new Euro-Accord station wagon. "Its arrival comes as part of this month's rollout of an all-new Accord Euro, and completes a freshening of the Accord range that started when a new iteration of the larger, softer V6 was introduced earlier in the year." Not only was scribe David Thompson caught unawares by the Accord wagon, but his efforts to put the wagon through its paces were thwarted. "My plan to preview the new Accord Euro with an extended drive in the upper South Island was thwarted when fog disrupted early flights out of Dunedin at the start of last week. By way of partial compensation, I managed a short drive around Dunedin in one of the first new Accord Euro sedans to arrive here." And Davey was… unsurprised! "Not surprisingly, the car I sampled still felt a little tight mechanically." What exactly does that mean? Your imagination will have to fill in the blanks. Meanwhile, should Honda build an Accord wagon stateside?
Posted in New Cars | Overseas | Marketing | News Blog | 41 comments
FIAT Kowtows to Cockamamie Chinese Clamor
By Martin SchwoererJune 26, 2008 -
Does it sound like a good idea to advertise the new Lancia Delta in the U.K. by showing Richard Gere frolicking with some Buddhist monks from Tibet? Odd? Certainly. Cute? Maybe. Problematic? Well yes, if you dislike the kind of lefty vegetarian sanctimonious Hollywood type Gere represents (which I don't). But could this spot really be a reason to apologize? Just-Auto [sub] reports that upon hearing of cockamamie protests from Beijing, Fiat kowtowed to the dictators in the People's Republic. "Fiat Group reiterates its neutrality in connection with any political matter, be it on a national or international basis. To the extent that the Lancia Delta advertising may give rise to misinterpretations of its well established position of neutrality, Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people." Yes, it hurts the Chinese Government's feelings that the pro-Tibet Gere is shown in some vaguely positive way in Tibet, or something. And it dismays us that Fiat, a car maker on the ascent, apparently didn't know what it was doing when it OK'd this ad, and obviously doesn't have a pair.
Posted in China | Politics | Overseas | Media | Marketing | News Blog | 16 comments
Banking Crisis Guts Successful Supplier
By Martin SchwoererJune 25, 2008 -
Does anybody need a reminder that the credit crisis is hurting our economies? Case in point: German car-industry supplier Schenk Plastic Solutions. Schenk is a small but basically healthy company that relies on Daimler for 60 percent of sales. They have a patented new product named SkinForm which was developed for premium car interiors. It's been reported that SkinForm is unique and has no real competition, since it offers superior quality at a super-low price. Mercedes wants Schenk to supply SkinForm for one million cars per year. In 2005, Schenk sold a majority interest to a private equity company named Argantis to finance their expansion plans. Surprise! Argantis is connected to IKB, a German bank which is basically bankrupt after investments in subprime U.S. real estate. So IKB pulls the plus on Argantis, which subsequently pulls the plug on Schenk. A great company with good products and healthy customers is forced to declare its insolvency. As these things go these days, the Indians come to the "rescue." Automobilwoche reports that the Ashok Minda Group, based in Uttar Pradesh, will be buying Schenk. Globalism wins, Daimler is happy and the West's industrial base is eroded a little bit more.
Posted in Suppliers | Insurance | High Finance | Overseas | News Blog | 18 comments
Volkswagen to Make it Simple Stupid!
By Justin BerkowitzJune 25, 2008 -
Parlare con CAR, VW design guru Walt de'Silva admits he isn't exactly thrilled about VeeDub's current design direction. Pensare? The Jetta looks like a Corolla and the Passat looks like a bar of soap. So VW’s styling will "return to simple design language that’s easy to understand - a clear hierarchy of grilles and rear-end treatment." Scribe Adam Towler says "Expect the next generation of VWs to have spiritually more in common with the late 1990s range of cars rather than the current set." For those of us that have long lamented the descent of VW into aspirations of ascent, this is fantastic news. The biggest question: where will this makeover leave the Volkswagen brand in the European market? When Ferdinand Piech decided to take VW into Mercedes territory, matching the Mercs models for model, Skoda and Seat filled VW's cheap and cheerful, honest and robust, everyday car remit. Maledetto! It sounds like someone has too many brands.
Posted in Branding | Design | Future Vehicles | Overseas | News Blog | 22 comments
Ford Bribe for Journos: Drive One, Sell Two
By Martin SchwoererJune 25, 2008 -
The things car makers do for love… Car companies in Germany traditionally offer journalists discounts of about 20 percent on new vehicles. Until now, this offer's been restricted to one car per year. Ford's cutting that clause: Automobilwoche reports journalists can now buy as many popular models for a bargain price as they want, and enjoy. Or, more to the point, flip 'em on the market for a few percent profit, and repeat. Other makers are expected to follow suit. Historically, journalists are considered a small but influential group– "opinion leaders" in the marketing argot. "Just like taxi drivers: not a large audience, but they are important, so they are worth some special consideration," says a German VW dealer. How much consideration? VW's generosity is worth 15 percent for new cars and 10 percent for pre-owned. The quoted dealer thinks VW's vig may soon reach Ford's levels: up to 25 percent, depending on model. Mercedes-Benz also grants 15 percent for journos. Porsche is parsimonious, offering no more than 10 percent. Most makes are (for the time being) stricter than Ford: Mercedes requires a minimum holding time of six months, and allows no more than two purchases per year. We're looking into the situation stateside, but we know Ford offers scribes the Ford employee discount…
Posted in Overseas | Media | Marketing | News Blog | 21 comments
It Sucks to be a Chrysler Dealer Anywhere
By Frank WilliamsJune 23, 2008 -
With inflation around 30 percent, interest rates over 20 percent and fuel at all-time highs, auto dealers in Sri Lanka are facing worse times than their American counterparts. (And that's saying something; ChyrCo's U.S. sales are down 19.3% year-to-date, 25.4% in May.) One dealer is trying a time-honored tactic to move the metal: a buy-one-get-one-free promotion. Lanka Business Online (LBO) reports that Diesel and Motor Engineering company (DIMO) is offering a free Tata Xeta when you buy a new Jeep 4×4 or Chrysler Grand Voyager van. Chryslers aren't selling in Sri Lanka because of "their high prices and maintenance costs and consumer preference for cheaper rival brands." LBO also points out they have lower fuel economy ratings than other cars, because "Chrysler is a US firm, where fuel has been lightly taxed compared to the rest of the world." DIMO said the promotion should also "help liquidate the stock of older models of the Xeta." Perhaps U.S. Chrysler dealers should try a reverse tactic: buy a Caliber, Sebring or Compass and get a Durango, Aspen or Commander free.
Posted in Overseas | Incentives | Sales | News Blog | 16 comments
National Labor Committee Alleges Toyota Supplier Sweatshops
By Robert FaragoJune 20, 2008 -
First of all, the National Labor Committee says that less than 15 percent of its money comes from labor unions. So this is not a United Auto Workers' front organization. Second, in a phone call [below] Director Charles Kernaghan was clear that Toyota's Japanese factories adhere to the country's labor laws (even though you may be surprised to learn that ToMoCo's been on a two-tier wage system for decades). Kernaghan's beef is with the automaker's suppliers. "Toyota's much admired 'Just in Time' auto parts supply chain is riddled with sweatshop abuse," he insists. "Including the trafficking of foreign guest workers, mostly from China and Vietnam to Japan. They're stripped of their passports and often forced to work– including at subcontract plants supplying Toyota– 16 hours a day, seven days a week, while being paid less than half the legal minimum wage. Guest workers who complain about abusive conditions are deported." The organization's report is low on stats, big on anecdotes and focused on pious Prius celebs. And yet, it's a point we've brought up before. International automakers'– and their customers'– willingness to turn a blind eye to their suppliers' working conditions is a black eye for the business– albeit one cleverly covered by makeup.
Posted in Overseas | Union News | News Blog | Editorial Podcasts | Podcasts | 14 comments
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