We are the German government, and we are here to help you, Opel: The German government is still waiting for Opel to hand in a solid business plan that could be the basis of financial assistance. What Opel has submitted so far has been found inadequate. Finance Minister Steinbrueck today put Opel on notice that without solid information there will be no money decision. Volker Kauder, head of the CDU faction said: “It looks like they need help to come up with a concept. We’ll help ’em.”

Saab? Volvo? Bu yao! Chinese automakers Dongfeng and Geely said that they have not held any talks over a possible bid for General Motors’ Saab brand, Gasgoo says. A Dongfeng spokesman as unaware of any interest by his company in bidding for the Saab brand. A senior Geely executive, when asked about his company’s possible acquisition of Saab or other brands, told reporters: “No, we did not. We’re not interested in Saab or the other brands out there.” Media reports have also said Geely was in preliminary talks with Ford Motor about the sale of the US automaker’s Volvo car unit. This was likewise denied by Geely. This comes on the heels of the Chinese government warning their automakers to buy overseas assets.

Chery coming to Europe: DR Motor, the European importer of China’s Chery vehicles showcased 18 re-badged Chery cars at the Geneva Motor Show, Gasgoo writes. DR Motor is a subsidiary of DR Automobiles Groupe, which sells about 8,000 vehicles a year in Italy and has annual revenues of about €250 million. Since November 2007, DR Motor has been producing a version of the Chery Tiggo medium SUV from kits shipped from China. The cars are assembled at a factory in Macchia d’Isernia, Italy. The plant has capacity to produce 12,000 units a year. DR Motor sells the SUV as the DR5 in Italy. DR Motor said it would uprate the models for local requirements. The company plans to begin selling DR1 in Europe by mid-2009 and expects to sell 10,000 units of the model a year by 2010. The is a re-badged Chery Faira NN powered by Chery’s self-developed 1.3-liter ACTECO engine, which can run on petrol (83 hp) or LPG (78 hp). Max speed is 156 kmh.

Not Seat for China—yet: Volkswagen AG will postpone its introduction of Seat brand vehicles to China, Winfried Vahland, president and CEO of Volkswagen Group China said to Beijing Times (via Gasgoo.) “Seat is a popular brand with Chinese young people according to our market survey conducted in China; however, under the influence of the financial crisis, VW will postpone the Seat introduction,” Winfried Vahland said. That doesn’t mean VW will give up Seat introduction, but actually the company has put it in the long-term program, he explained.

Parts bailout may benefit Japanese makers: Japanese autoparts makers will likely be among the beneficiaries if the US government decides to offer financial support for the U.S. autoparts industry, a high-ranking industry association official has told the Nikkei [sub]. If the US government comes through with an aid package, much of it will be shared with Japanese companies, said Dave Andrea, Vice President in charge of Industry Analysis and Economics at the Original Equipment Suppliers Association. The OESA and others asked the US government last month for up to 25.5 billion dollars in financial assistance, including 10.5 billion dollars in government guarantees for the money owed to them by the nation’s Big Three automakers.

Small is big: Minivehicles continued to be the most popular cars in Japan in February, with Suzuki’s Wagon R remaining the top seller for the third straight month, according to trade figures released to the Nikkei [sub]. The top three slots of Japanese domestic sales were dominated by mini-vehicles, underscoring consumer preference for fuel economy and environmental friendliness.

Honda warns of challenging 2009: Honda forecasts a 140 billion yen group operating profit for fiscal 2008, while domestic rivals Toyota and Nissan are bracing for losses of more than 100 billion yen each. Honda Executive Vice President Koichi Kondo, who oversees the carmaker’s financial affairs, said that the firm will not earn an operating profit next fiscal year from April 1 if global auto demand remains weak and the dollar continues trading around 90 yen, the Nikkei [sub] says.

Geely goes to Mexico: Geely, China’s largest private automaker, is pushing ahead with plans to build a factory in Mexico, Gasgoo says. The company intends to sell vehicles made at the plant in Central and South America. Founder Li Shufu said last year the plant would build cars for the US-Chinese automakers who have begun to target global markets as tumbling domestic demand and rising competition crimps margins. China FAW Group Corp., the nation’s second-largest automaker, has also announced plans for a Mexican plant.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. This column will be filed from Berlin until further notice – if & when time allows.

Forster plays the—usual—jobs card: Opel will have to slim down its workforce, says GM Europe chief Carl-Peter Forster, “hopefully not more than 3,500 jobs.” That according to Automobilwoche [sub]. How many and where exactly is unclear—and will depend on how much money which government will fork over. Forster said in Geneva that Opel has surplus capacities of 30 percent.

Sumimasen, can you spare some billions? Japanese automakers are keeping up with the Joneses, or make that Tanakas: Japanese automakers are turning to government lending to secure operational funds, the Nikkei [sub] writes. Honda is considering borrowing from the Japan Bank for International Cooperation, Toyota is negotiating a five-year loan of about 200 billion yen, also from JBIC. Mitsubishi Motors has applied for a low-interest loan from the Development Bank of Japan. Honda intends to seek tens of billions of yen in dollar-denominated loans from JBIC for its US financing arm, American Honda Finance Corp. The carmaker aims to build up more cash for auto loans and leases. Toyota Financial Services Corp. has also approached JBIC to procure funds for its US financing unit, Toyota Motor Credit Corp. Nissan is double dipping—at the very least. They applied for a roughly 50 billion yen loan with the DBJ as well as a low-interest loan from the US government. It is also considering tapping JBIC loans.

Nissan sets targets lower: Nissan has set its global auto production target for April-September at roughly 1.29 million units, down 27 percent from a year earlier and the lowest level in eight years, the Nikkei [sub] learned. Nissan did not reveal plans for the second half of fiscal 2009. And then the moment of Zen: “Anticipating a tough year, Nissan has urged autoparts makers to cut funds outflows and ensure that they have sufficient funds.”

EU Nano next year: India’s Tata will roll out its low-price Nano car in Europe as early as 2010, the Indian firm announced at the Geneva Motor Show. The Nano will be released in India later this month at a price of about 100,000 rupees (around 200,000 yen) the Nikkei [sub] writes. The Nano Europe will also be made in low-cost India, but is expected to be priced a bit higher. Even so, it will likely be the cheapest car on the European market. The Nano’s higher European price will be partly due to meeting local safety standards, and partly due to such differences as its three-cylinder 1,000cc engine. The Indian model will have a two-cylinder 630cc engine.

The return of Renault: Renault, one of the few larger brands without a Chinese presence, will restart its auto import strategy to the Middle Kingdom. They will do so with the mid-sized Laguna, Gasgoo reports. Renault is scheduled to bring to China 14 auto types in the coming three years.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. This column will be filed from Berlin until further notice—if & when time allows.

Time is money: GM Europe is running out of both, Carl-Peter Forster said to today at the Geneva Autoshow, Automobilwoche [sub] reports. GM needs the requested €3.3B “as soon as possible” Forster said. He’s not counting on private investors: “Each discussion with a private investor takes months, half a year at least, and we don’t have that kind of time.” Foster also said that GM has “three plants too many” in Europe. German Economy Minister Karl-Theodor zu Guttenberg said today he will not be pressured into making a quick decision on granting state aid to General Motors’ Opel unit, Automotive News [sub] says. Germany is considering whether to support Opel after GM Europe unveiled a plan to spin off Opel and its UK sister brand Vauxhall to try to avert job cuts and plant closures.

Volkswagen expects an endangered species: They want to make a profit this year, CEO Martin Winterkorn said. VW reported preliminary full-year results for 2008 that showed a 3 percent rise in operating profit to a record €6.33 billion ($8 billion), Automotive News [sub] writes. VW finance chief Hans Dieter Poetsch has forecast Volkswagen could post a loss in the first quarter amid what will likely be one of the worst years for the auto industry since at least the Second World War. VW said its 2008 after-tax profit rose 14 percent to €4.7 billion. The group beat the wider trend in the car industry, but with current sales “extremely weak” at the start of this year, it would be “impossible” to match those figures in 2009, the company said. Group sales last year rose 4.5 percent to €113.8 billion. VW group brands include Volkswagen, Skoda, Seat, Audi and Bentley.

Nissan to make batteries in Portugal: Nissan plans to mass-produce automotive lithium ion batteries in Portugal by 2012, when the automaker intends to be manufacturing electric vehicles globally at full clip, says the Nikkei [sub]. Nissan will be the first Japanese automotive firm to announce plans to produce next-generation batteries overseas. Nissan will supply lithium ion batteries for electric vehicles to itself and French partner Renault SA. It plans to roll out electric vehicles next year in Japan and the US, with a goal of switching to their mass production in 2012. The Japanese automaker aims to hammer out preferential terms for the battery plant in discussions with the Portuguese government.

Hmmmm: Toyota Motor Kyushu Inc. will directly hire all of its temporary employees by making them either permanent or contract workers, the Nikkei [sub] says. “The move is aimed at better preparing the firm for future output increases and improving morale.” By directly hiring temp workers, the company will not have to pay commissions to staffing agencies. It is considering using the resultant savings to increase their wages. Sumimasen, – did we read right?

Toyota borrows yen to ease US credit: Toyota Financial Services Corp., the auto financing unit of Toyota Motor Corp. is seeking the equivalent of about 200 billion yen in dollar loans from the Japan Bank for International Cooperation to secure funds for its US operations, the Nikkei [sub] says. Private-sector financial institutions are tightening lending standards amid the financial turmoil, significantly increasing the borrowing costs of their corporate customers. This has prompted the Toyota unit to seek dollar loans under the emergency program recently launched by JBIC to help Japanese firms operating abroad. No other automakers have sought loans under the program, but now that industry leader Toyota has applied, rivals might follow suit.

China hearts Land Rover: Tata Motors’ Land Rover division sold 11,108 vehicles in China in 2008, up 69 percent from 6,573 vehicles sold in 2007, says Gasgoo. This makes China the fifth largest market for the brand, following Britain, Europe, Russia and the US.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. This column will be filed from Berlin until further notice—if & when time allows.

Japan down again: Japan’s domestic sales of new cars, trucks and buses fell 32.4 percent year-on-year in February, declining for the seventh straight month, the Nikkei [sub] writes. This is the sharpest fall since May 1974, when sales were hit by the first oil shock. Sales in February totaled 218,212 vehicles, down from 322,613 a year earlier, the Japan Automobile Dealers Association said. The figures don’t include sales of mini-cars or mini-trucks. Toyota’s sales dropped 32 percent to 98,808 units, with sales of the Lexus luxury car plunging 63 percent. Nissan fell 35.2 percent to 40,694 units, while Honda sold 30,101 vehicles, 21.1 percent fewer than last year.

India coming back to life: Most Indian auto makers led by market leader Maruti Suzuki India Ltd. reported a continued rise in monthly sales, driven mainly by discounts, says the Nikkei [sub]. Analysts said if the sales continue to rise beyond March it may indicate a recovery in Asia’s third-biggest automobile market. Maruti, a unit of Suzuki, sold 79,190 cars, up 24.1 percent from 63,822 a year earlier. Total car sales at the Indian unit of Hyundai Motor Co. in February rose to 38,254 units from 29,001 units a year earlier.

Toyota guides suppliers lower: Toyota Motor told about 450 suppliers that its global production will likely drop 20 percent to roughly 6.2 million vehicles in fiscal 2009, the Nikkei [sub] writes. The Japanese fiscal runs from April to March the following year. Even with reduced output, Toyota intends to turn a profit, calling on the suppliers to join in its efforts to further reduce groupwide costs.

Honda slowly cranking up again: Honda plans to gradually relax production constraints at domestic plants from April, as inventories slowly return to appropriate levels, the Nikkei [sub] reports. Honda had reduced domestic output by 23 percent in January. Honda was stuck with global inventories of around 700,000 vehicles at the end of December, roughly 200,000 units above the optimum level. Although plant shutdowns will be relaxed from April, “it could be May or June before inventories return to normal,” warns Honda Executive Vice President Koichi Kondo. Honda is expected to slash domestic output by more than 150,000 units in fiscal 2009, pushing Japanese production below 1 million vehicles for the first time in 14 years, said the Nikkei [sub] in a separate report.

Even used car exports hurt in Japan—a lot: Japan’s exports of used vehicles plunged 65.2 percent to 26,751 units in January, the fourth straight month of decline and the sharpest drop since comparable data was first compiled in 2001, the Nikkei [sub] says. In 2008, about 40 percent of exports went to Russia, but in January 2009 shipments evaporated by 91.4 percent to 2,425 vehicles. That month, Moscow nearly doubled tariffs on used vehicles over five years old. Auto protectionism is also rising in South America. Japanese exports to Chile, which serves as a way station for shipments to nearby nations, plunged by 89.9 percent to 434 units in January.

Mitsubishi electrifies PSA: Mitsubishi Motors has agreed with PSA Peugeot Citroen Group to jointly develop an electric car for sale in Europe, writes the Nikkei [sub]. Mitsubishi has signed a memorandum of understanding under which the partners will cooperate on development of a new vehicle based on the i MiEV model under development at the Japanese carmaker. The cars will be released in Europe under both brands in late 2010 or early 2011.

Chery goes on a hybrid offensive: Not long after unveiling its first electric car called the S18, China’s Chery Auto said it plans to launch two more hybrid cars this year to tap into the growing hybrid car market, Gasgoo writes. Chery will launch an A5 hybrid car this year and an A3 hybrid in 2010. A Tiggo-based hybrid SUV and a QQ-based pure electric model are under development. All of the electric motors and hybrid systems on these future models are developed by supplier Ricardo.

Saab to pay supplier bills: GM has put aside $144 million to pay suppliers to its Saab unit, Automotive News [sub] says, citing the Swedish daily Dagens Industri. GM supply manager Bo Andersson said in an interview that the US firm would begin on Monday to pay bills left unsettled when Saab was granted protection from creditors on Feb. 20. According to Automobilwoche [sub] Saab owes tidy sums to suppliers such as the India steel maker Arcelor Mittal and Thyssen Krupp in Germany.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. Note: This week-end, BS will change his location to Berlin for a few weeks. WAS will be filed as time allows—or not, as RF fancies to say.

Daimler may buy Opel plant: Opel has contacted Daimler over plans to sell its Corsa-building Eisenach plant. The Financial Times Deutschland [via Reuters] bases its story on “government sources,” who also claim that Opel’s Astra and Zafira-producing Bochum plant is on the chopping block. Daimler management board member, Thomas Weber, said a takeover of Opel is not on the cards. “That also goes for Volvo or Saab,” Weber told Reuters. Meanwhile, Opel’s management is about to present their supervisory board with a restructuring plan. It’s expected to call for thousands of job cost and closure of one or more plants. Opel dealers have signaled a willingness to help secure their livelihoods by taking some form of equity stake in an independent company—an automaker without the excess workers and capacity, presumably.

And here comes the trade war: France’s President Nicolas Sarkozy wants the World Trade Organization to consider the legality of American aid to its domestic automakers. “We need to see if the U.S. aid is compatible with the WTO,” Sarkozy said in eastern France at a roundtable discussion on the car industry on Thursday, reported by  Automotive News [sub]. [NB: This is the same Nicolas Sarkozy who recently announced protectionist aid for French automakers and called for a coordinated European plan to help the E.U.'s car industry.]  EU competition authorities are scrutinizing car industry support from governments in France, Spain, Britain, Italy, Germany and Sweden. Separately, European Transport Commissioner, Antonio Tajani, said Europe’s lawmakers would consider appealing to the WTO if US aid made conditions unfair for European manufacturers.

No-show Nissan: Nissan will skip some major international auto shows in its new business year starting on April 1 to save cash, Automotive News [sub] reports. Nissan will be absent from the Detroit auto show next January, and skip the IAA in Frankfurt this September. Nissan said it will attend the New York, Shanghai, Tokyo and Geneva auto shows.

Japan hands out cash to buyers of cars, homes: In a desperate bid to keep their economies from deteriorating further, several Japanese municipalities started to offer subsidies to buyers of cars and homes, the Nikkei [sub] writes.

Akita Prefecture began offering subsidies for car purchases in January. People who replace their old cars that were registered in or before December 2001 with low-emission models are eligible for refunds equivalent to the amount they pay as consumption tax. The Tokyo Metropolitan Government will offer five-year exemptions from auto-related taxes to people who purchase electric cars and other next-generation vehicles. Kanagawa Prefecture will begin providing subsidies of possibly up to 700,000 yen to people buying electric vehicles. Saitama Prefecture will from April provide subsidies of up to 200,000 yen a year for five years to new homebuyers who meet certain criteria.

Nipponese hybrid bimmer: BMW will start selling the hybrid version of their 7-Series Japan, starting summer of 2010, the Nikkei [sub] reports. Despite promises of a two-mode hybrid X5 (the GM – DaimlerChrysler – BMW disaster), this will be BMW’s first hybrid offering. Daimler AG said earlier it will release the hybrid version of its Mercedes-Benz S-Class sedans in Japan this year.

Bidders for Volvo: Chinese car makers Dongfeng and Changan, as well as “a European constellation” may bid for Ford’s Volvo unit in April, Swedish business daily Dagens Industri reports via Reuters. “Indicative bids are to be expected around the Easter weekend,” the paper quoted a source as saying. Sweetening the pot; the European Investment Bank (EIB) is expected to grant Volvo a 5-billion-Swedish-crown ($568 million) loan in the near future.

Chinese numerology: China had 19.47 million private cars on its roads by the end of 2008, up 28 percent from a year earlier, according to official statistics released by National Bureau of Statistics of China. The total number of motor vehicles for civilian use reached 64.67m, which includes 14.92m tri-wheel motor vehicles and low-speed trucks, Gasgoo writes. China has many years to go and drive before it reaches anything close to saturation. At the end of 2008, the total number of Chinese population reached 1.3b, officially.

Car leasing coming to China: Mercedes Benz Auto Finance (MBAC) will become the first finance company to offer vehicle leasing on the Chinese market, after receiving the approval of the Chinese Banking Regulatory Commission. Starting in March, MBAC plans to begin its work by focusing on corporate fleet leasing to companies in Beijing, Gasgoo writes.

Leasing, in fact the whole concept of residual value, was alien to the Chinese market. This is about to change: 80 foreign-funded and 37 domestic-funded financial leasing companies received approval from the Chinese Ministry of Commerce as part of the governments stimulus package to boost new car sales.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.

And finally, the Nano: Tata’s Nano, slated to be the world’s cheapest car at under $2,000, will finally go on sale in April after months of delay caused by problems at its main production plant, Reuters reports. Tata said it would formally launch the Nano on March 23, and buyers could start ordering the model by the second week of April. “We expect only limited quantities to be produced now—maybe about 3,000 a month—so the waiting period could be long,” said Surjit Arora, auto analyst at Prabhudas Lilladher. Tata Motors’ new Nano plant in Gujarat, in western India, is not expected to be ready until the year-end. The company has said it would make the first Nanos at one of its two existing plants in Pune, about 170 km north of Mumbai, and at Pantnagar in northern India.

Aftermath: Japan’s eight passenger car manufacturers curbed their domestic output by 40 percent compared with a year earlier to 560,471 units in January as they stepped up efforts to correct inventory levels amid a sharp downturn in global demand, the Nikkei [sub] sums up yesterday’s reports. Toyota, Nissan, Mitsubishi Motors, and Mazda had embarked on their biggest cutbacks since they began releasing production data. Daihatsu was the only one to keep its domestic output reductions in the single digits, at 2.7 percent. Production cutbacks overseas also gained momentum, with carmakers lowering output by 41 percent to 602,502 units. Honda curtailed US output 50.1 percent in January. Exports sank more than 50 percent.

Yen drops: The bad news coming out of Japan have one positive effect: The yen continues to depreciate against major currencies, the Nikkei [sub] reports. Hedge funds and other speculative players are turning into major sellers. Over the past two weeks, the Japanese currency has slipped nearly 7 yen against the greenback. On Wednesday, it briefly hit 97 to the dollar during Tokyo trading, its weakest level in about three months. On Wednesday, the Finance Ministry released data showing that Japan suffered a record trade deficit of 952.6 billion yen in January due to plunging exports. With lackluster overseas demand eroding Japanese exporters’ foreign-currency income, dollar-selling driven by actual demand has declined, undermining the yen. A weaker yen will improve Japanese books closing on March 31, and will make exports more competitive. But the benefits for exporters are likely to be limited. “The earnings improvement impact resulting from a weak yen alone can’t offset steep declines in sales volumes,” says Yasuhide Yajima, a researcher at NLI Research Institute.

Can’t eat this: Honda plans to construct a bioethanol laboratory east of Tokyo, aiming to start R&D work there in November, the Nikkei [sub] says. Honda develops technology for turning nonedible plants auto fuel. They think they’ll be ready in three to four years.

Volkswagen wants to double Chinese sales—by 2018: Volkswagen AG announced in Beijing that it plans to double its annual vehicle sales in China to 2 million units by 2018, Gasgoo reports. “We are targeting to sell 2 million vehicles a year in China by 2018 with the earliest possible timeframe, from the current annual sales of 1 million,” said Winfried Vahland, executive vice-president of Volkswagen Group and president and CEO of Volkswagen’s China operations. The number of Volkswagen dealerships in China will also be doubled to 2,000 by 2018.

China bails out Jaguar, in a way: Chinese firms will agree to pay a combined $615 million for 3,000 Jaguar and 6,000 Land Rover automobiles during a government-led trip to the UK Gasgoo writes. Headed by Minister of Commerce Chen, 200 Chinese business executives will visit Germany, Switzerland, Spain and the UK. In total the delegation will agree to buy as much as $15 billion worth of machinery, automobiles and food products as Beijing seeks to cultivate goodwill and fend off protectionism.

VW crossover will cross over to China: Shanghai VW will launch a China-made Volkswagen Tiguan SUV in late 2009, Gasgoo says.

Paris backpedals after slap from Brussels: France struck a clause from its €6b bailout package. Recipients were prohibited from closing a plant in France and moving it elsewhere in Europe. Automobilwoche [sub] reports that the clause ran afoul of EU rules. Despite the cleaned-up clause, the French government claims there’s a “moral obligation” for the French to stay in France. Brussels will perform a thorough vetting of the French moral imperative.

Russian bailout: Reuters reports that Russia’s car sales have slumped by one-third. In an effort to save its nascent car industry, Russia will subsidize car loans for consumers buying any one of 30 foreign and domestic models. The car-loan subsidies, worth $55.45m, will compensate banks for charging lower rates on car loans. “The decision to help seven foreign brands along with two Russian ones is a surprise coming from a government that introduced sweeping measures in January to protect local car makers from foreign competition,” says a shocked Reuters. The Ruskies have earmarked another $347m to buy up unsold parts and commercial vehicles from local producers such as AvtoVAZ, as well as Fiat, Isuzu, and SsangYong. [For a full list of parts and vehicles eligible for the two aid programs, click on www.minprom.gov.ru] Russia began a 30 percent import duty on second-hand cars on January 1 to prop up the struggling domestic car industry. The move stirred concerns about protectionism from Russia’s trading partners, and led to large-scale protests in major Russian cities that rely on the second-hand car industry.

Anyone want a hefty share of Chrysler? Anyone? Daimler is open to any third party interested in its 19.9 percent Chrysler stake. Reuters reports the Germans are unlikely to buy back its shares in the medium term. “If an interesting offer were made to us, then we would not wait for our remaining stake to become valuable again. There is no right of first refusal for Cerberus,” Bodo Uebber told the German Boersen-Zeitung. A spokesman for Daimler said the company was currently negotiating only with the U.S. buyout firm CBS.UL and… “no one else.”

German grassroots effort to “Rescue Saab“: The German Saab Dealer Mobilforum in Dresden started a Rescue Saab initiative. Within three days of its existence, the site had 7500 registrations, mainly from Sweden, Germany and the US. As we went to net, 360 Swedish Saab-employees, 513 enthusiast clubs, 208 Saab dealers and more than 4.000 Saab-owners are members. Membership fees range from €50 to €500. If “Rescue Saab” makes a bid for the company, the memberships will be converted to shares. Rescue Saab now is courting celebrity Saab owners such as Bill Gates, Stephen King and the German TV bad boy Stefan Raab.

We’re outta here: Mitsubishi Motors and Nissan are stepping up efforts to transfer domestic manufacturing operations abroad ito bolster cost competitiveness. “By relocating production overseas, the automakers hope to take advantage of lower tariffs and counter the impact of a stronger yen,” the Nikkei [sub] says. Mitsubishi Motors plans to move some car assembly work from Japan to MMC Automotores do Brasil Ltda. in Sao Paulo in fiscal 2009.

Meanwhile, Nissan plans to move domestic production of 130k vehicles (10 percent of output) and 120k engines and transmissions overseas by the end of fiscal 2010. In the meantime, the Yen hast lost some of its unwelcome strength and traded at 97 Yen to the Dollar at the time of this typing. If it maintains the trend, the books of Japanese automakers won’t look as bad as feared when the 2008 fiscal ends on March 31.

Death more affordable: Japanese Mitsuoka Motor Co. “aims to liven up its sales with a compact hearse that is easier to drive and about 40 percent less expensive than its existing models,” the Nikkei [sub] says. The roughly 5.2-meter-long hearse is based on Toyota Corolla sedan. “Despite its size, it can accommodate even large caskets.” Despite the aging of the Japanese population, hearses are not volume sellers: “Mitsuoka expects to sell 20 or so of the custom-built funeral coaches this year and aims to capture 20 percent of the domestic market,” reports the Nikkei. Morosity is befalling the Land of the Rising Sun.

Chinese government orders consolidation: The Chinese government issued its plan to consolidate the auto sector. It includes decisions to merge the country’s major auto-making groups to from 14 to 10, and to subsidize rural buyers of new vehicles, China Securities Journal reports via Gasgoo. According to the plan, the current 14 Chinese carmakers, which together hold 90 percent market share, will be reduced to 10 or less through mergers. The government wants to see two or three big Chinese groups with annual production each exceeding 2 million vehicles, plus four or five groups making over 1 million vehicles.

Japan going down, down, down: Japan’s domestic auto sales may fall below 3 million vehicles this year, the Nikkei [sub] reports. Japan Automobile Dealers Association Chairman Yoichi Amano predicts Japanese sales could sink to the lowest level since 1971. “The projection made last year that sales would decline below 3 million vehicles some time between 2015 and 2020 might come true as early as this year,” Amano told a general meeting of association members, expressing concern that the economic downturn may further depress demand.

Honda sees flat sales: Unfazed by the dire predictions, Honda aims to sell about 550,000 vehicles domestically in fiscal 2009, roughly the same as projected for this fiscal year, by strengthening sales of hybrid and other fuel-efficient cars, company sources told the Nikkei [sub]. Although domestic demand contracted about 20 percent on the year in January, Honda aims to expand sales of its Insight hybrid and other eco-friendly vehicles on the back of their strong appeal and tax incentives for buyers.

Nissan downgraded: Standard & Poor’s downgraded Nissan Motor Co.’s long-term credit rating one notch from BBB+ to BBB, citing concerns over the automaker’s finances, the Nikkei [sub] reports.

Mitsubishi cranks up the lines: Mitsubishi Motors said its March production cutbacks at domestic factories will be smaller than those in February, as sharp output reductions this month have significantly pushed down inventory levels, the Nikkei [sub] says.

SUVs on the rise in China: Following the rapid growth its SUV market in 2008, China may see the sales of SUV models grow by nearly 20 percent this year, more than double the average auto market growth rate, xinhuanet.com said today, citing the forecast of an industry survey firm. In 2009, more than ten SUV models will be launched to the Chinese auto market

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.

Interest in Saab: Jan-Åke Jonsson, managing director of Saab Automobile AB, said other carmakers were among the investors that had shown interest in the unit, Reuters reports. The Swedish carmaker, granted protection from creditors last week, has said it must quickly restructure to deal with losses, seen at 3 billion Swedish crowns ($347 million) this year, and find new funding from either private or public sources in order to launch new and more competitive models. Germany’s Autohaus reports that Sweden’s government again denied any financial help to Saab.

Opel will hand in homework: GM Europe and Opel finally got their acts together: they will present their long-awaited business plan to the German government in the coming days, Reuters says. The German government distanced itself on Monday from any commitment to Opel’s future.

Cash4clunkers works: Germany’s cash4clunker program (€2.5K if you retire old and buy new) will result in 400K additional sales, says the industry group Verband der Automobilindustrie (VDA) [via Das Autohaus]. That would be an increase of 13 percent. German car makers take about half of the additional sales, says the VDA.

Quick denial: This morning, China Business News reported that Chinese car maker Beijing Auto had initial talks with Chrysler to buy assets and technology while seeking to expand globally through acquisitions and to build its own brand model based on a global brand. “Not so,” said the purported purchaser, according to Gasgoo. Beijing Auto, is the Chinese partner of Hyundai Motor and Daimler AG. Chrysler LLC quit a joint venture between Beijing Auto and Daimler AG in late 2008, a year after Daimler sold its control to Cerberus (a.k.a. the smartest guys in the Kremlin). Chrysler’s 300C sedan is still made at the Beijing venture.

Toyota reduces output by 20 percent: Toyota plans to produce 6.5 million vehicles this year, down 20 percent from 8.21 million in 2008, the Nikkei [sub] says. Depending on how the industry fares, Toyota may be forced to slash output even further. Its February-April output will be only half the year-earlier level. The firm aims to wrap up its inventory adjustments in May, with production to rise month-to-month but still remain 40 percent below year-earlier levels. Toyota sees production picking up in or after the summer following the release of new models, including the redesigned Prius hybrid.

New Honda CEO: Honda appointed Takanobu Ito as new president and chief executive to replace Takeo Fukui, the Nikkei [sub] reports. Fukui, 64, has served in the top position since June 2003. Ito, 55, has been recently been engaged in production and research-and-development operations at home and overseas. Honda follows Toyota Motor Corp. and Mazda Motor Co. in handing over management responsibilities to new top executives.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.

Opel needs more money: Up until now, Opel had mentioned that they may need €1.8b in loan guarantees “just in case.” Now Manager Magazin reports that Opel will definitely need twice the amount. There are mounting indications that the German government will only part with the money if Opel is spun off and totally separate from GM. States where Opel has plants have indicated that they would take a stake. Also, there is pressure from Berlin that GM finally transfers the €1b which it owes Opel. Germany’s Chancellor Angela Merkel is still waiting for a viability concept promised, but not delivered, by Opel.

Nissan’s Chinese CVT plans: Nissan plans to roll out vehicles with higher fuel economy in China, using a local venture to manufacture cars installed with continuously variable transmissions (CVT) the Nikkei [sub] writes. Nissan plans to equip (by 2012) 50 percent of the cars sold in China with a CVT. Affiliate firm Jatco Ltd. is set to open a CVT factory with an annual capacity of 140,000 units in China’s Guangzhou municipality at midyear.

Daimler imports hybrid to Japan: Daimler plans to import the hybrid version of the Mercedes S-Class to Japan, starting in October, the Nikkei [sub] reports. Daimler AG plans to release the hybrid S-Class in Europe during the first half of this year. The S-Class would become the first imported hybrid passenger car sold in Japan. It could also end up being the first imported car to take advantage of the tax breaks on eco-friendly cars coming into effect this April.

Plug-in Chery: China’s largest homegrown car maker, Chery Automobile, has rolled out its first own-brand plug-in electric car model, Gasgoo writes. Chery says the electric car can run up to 150 km (94 miles) on a single charge. The Chery S18 has a top speed of 120 kmh. It can be fully charged at a home electrical outlet within 4-6 hours and 80 percent charged in half an hour. The car uses iron-phosphate-based lithium-ion batteries. The Chery S18 electric model reportedly will come to the market within a year for less than 100,000 yuan ($14,600).

Taiwan gets cars from mainland China: As part of the cross-strait thaw, Taiwan’s Prince Motors plans to introduce cars made by China’s Chery, Gasgoo reports. As Taiwan doesn’t allow importation of completed cars from the mainland, the cars will be imported as kits and assembled in Taiwan.

Cerberus in the reds: The German Manager Magazin reports that Cerberus closed out 2008 with their first loss in history. Mostly due to Chrysler: Chrysler’s sales fell 16 percent in 2008. In previous years, investors enjoyed returns between 16 and 27 percent.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.

Increasing indications that GM plans to cut Opel loose: North Rhine-Westphalia’s Premier, Jürgen Rüttgers, had a chin wag with GM’s CEO, Automobilwoche [sub] reports. Rick Wagoner told Rüttger there are no plans to close any German plants, including the one in Bochum, which is in Rüttger’s state. ”Currently.” News flash! Wagoner expressed his interest in spinning-off Opel. Rüttgers told Rick that GM would have to keep the German plants open to qualify for German government money. How the spin-off is going to work still is anybody’s guess.

Saab may go bankrupt this week: GM’s Saab will start insolvency procedures as early as this week, das Autohaus reports, citing Swedish news reports. Sweden’s Economy Minister has already said that this would be the proper way to go.

GM China unfazed by U.S. turmoil – or so they say:  GM China says [via Gasgoo] that the mothership’s proposed $30b restructuring would not impact its China operations. GM is still profitable in China. “China is one of our most important strategic markets. It is vital to GM’s global business growth,” GM said yesterday in a statement. GM China plans to launch 13 new models this year. Shanghai GM’s product lineup—Buick, Cadillac and Chevrolet—will be among the six brands GM will focus on for the China market. More all-new or upgraded models of the Wuling, Opel and Saab brands are also scheduled to come on stream in the next few years, say GM’s boys in China. They must not have received the memo.

Honda sold 300K hybrids: Worldwide sales of Honda’s hybrid cars have topped 300k units since November 1999, when the first-generation Insight coupe was introduced in Japan, the Nikkei [sub] reports. Combined sales of the Insight, the Civic Hybrid sedan and the Accord Hybrid sedan came to 300,740 units as of Jan. 31. North America accounted for a total of 191,493 Civic Hybrid sedans, 75 percent of the sedan’s global sales tally. European consumers bought 34,757 gas – electric Hondas. Japan accounted for 22,899 units. All of the Accord Hybrid sales were in North America, which was also responsible for 14,288 Insight coupe sales. Japanese drivers purchased 2,340 Insight coupes. Honda has pledged to expand the lineup of its hybrid vehicles in the coming years with a hybrid sport car based on the CR-Z concept car to be released ”by the end of 2010.”

Dongfeng goes homegrown: Dongfeng Motor has announced that it will launch its in-house-developed passenger vehicle model in March, Gasgoo says. Dongfeng so far relied on products made in joint ventures with PSA, Honda, and Nissan.

That’s riich: China’s Chery, famous for its cheap small-car QQ series, will launch its own luxury car brand, Gasgoo reports. They start with six models aiming for the fickle Chinese affluent market. The brand is called Riich, which may be a bit too close to the target group, but who are we to decide what sells in China.

Dual fuel: China’s Harbin Hafei Automobile will mass-produce a self-developed dual-fuel sedan, Gasgoo says. The dual-fuel car will run on gasoline and compressed natural gas (CNG.) The dual-fuel Hafei Saibao sedan model is low in emission and in price—clean and cheap.

GM? Mei you: Chinese engine maker Weichai Power Co. said it has no interest in buying General Motors’ auto parts unit in France, Reuters reports. GM said in August that it intended to sell its plant in Strasbourg, and saw possible interest from Asia. French media on Wednesday named Weichai as a potential buyer. “The board would like to state that the contents of such an article have no basis in fact. The company does not have any intention to make such an acquisition,” the Chinese firm said in a statement.

GM/Opel ready to deal: As some kind of bankruptcy for GM becomes more likely by the minute, The General has signaled its readiness to consider some kind of a third party engagement in Opel. “If it makes sense and helps to make GM Europe and Opel successful, then the management is ready to entertain partnerships with or equity engagement of third parties,” GM Europe President, Carl-Peter Forster; Opel CEO, Hans Demant; and the Chairman of Opel’s Worker Council, Klaus Franz, said in a joint announcement, Automobilwoche [sub] reports. They did not elaborate whether this means an engagement by other manufacturers or an engagement by Germany’s state and central governments. In the meantime, Chancellor Angela Merkel is still waiting for Opel and GM to do their homework and hand in a viability plan: “Right now, the government cannot act because we don’t have the necessary concepts from Opel,” Frau Merkel said.

Toyota crawling back: Toyota will ramp up domestic production to around 200k units in May, up roughly 30 percent from the monthly output of the three preceding months, as its inventories are expected to drop to normal levels by then, the Nikkei [sub] says. May output will still be down around 40 percent on a year-on-year basis, with a full-scale recovery in production not expected soon. Inventories are expected to be at the desired levels, or 50-60 days, by the end of April.

Mitsubishi says sayonara to Chrysler: Mitsubishi Motors will end its original equipment manufacturer contract with Chrysler LLC in 2010, the Nikkei [sub] says. Mitsubishi said Wednesday that it won’t renew the contract under which the US car maker produces the Raider pickup truck for its Japanese partner.

China retrenching on auto exports: There are anywhere between 100 and 120 automakers in China. Most dream of export success. Dreams turned into nightmares, and 45 of them threw in the export towel in 2008, Gasgoo writes. Left standing: 21 auto companies with exports worth above $100M last year, accounting for 50.6 percent of China’s total automobile exports value in 2008. Chinese carmakers that achieved noteworthy exports in 2008 include Chery, Honda China, Sinotruk, Great Wall, China First Automobile Group, and King Long.

Let the consolidation begin: Beijing Auto will acquire Fujian Motor and Changfeng Motor, two Chinese carmakers related to Mitsubishi Motors, Gasgoo writes. The acquisitions should also help the Chinese partnerships of Daimler, Chrysler and Mitsubishi unite and focus on BAIC. BAIC wants to expand itself and become a Chinese auto giant like FAW, SAIC and Dongfeng, with annual sales revenue exceeding $14.7B.

Dongfeng down: One of the few Chinese car companies that reported lower January numbers: Dongfeng, China’s third-largest automaker. Their vehicle sales in January fell 19.46 percent from a year earlier. Dongfeng operates car manufacturing ventures with PSA Peugeot-Citroen and Honda Motor. It also makes cars and commercial vehicles with Nissan Motor.

Driving in China hazardous: China recorded 5.1 road accident deaths for every 10k motor vehicles in 2007, the highest rate in the world, Gasgoo writes. They aren’t kidding.

Capital traffic jam: Beijing has introduced regulations that take a fifth of private cars off the road according to license plate numbers each day. Despite, or because of that, Beijing’s new car registrations are booming. China’s capital has added nearly 1,500 new cars to its roads each day so far this year, Gasgoo says. Beijing registered 65,970 new vehicles in the first 45 days of the year.

Hell, no, let us go: On Monday, GM’s European labor leaders called for GM to jettison their Opel/Vauxhall brand. According to Reuters, the unions would prefer an independent Opel/Vauxhall, rather than face what they called “potentially fatal cost-cutting.” A statement on the labor force’s website left no doubt that the long knives were out. “The spin-off of Opel/Vauxhall . . . and the spin-off of (Swedish brand) Saab is the only reasonable and feasible option for General Motors which would not destroy the European operations and its European assets and could avoid lawsuits.” German state and central governments appear to be supportive of the plan.

Daimler down: Daimler’s EBITA dropped from €8.7B in 2007 to €2.7B in 2008. Net profit fell from €4B to €1.4B, das Autohaus says. Surprise! The Boys from Stuttgart predict it will be worse in 2009.

Success Insight: Honda’s ultra fuel-efficient hybrid Insight hatchback has barely been on sale for 10 days and it’s already flying out of the door, the Nikkei [sub] says. More that 10k units have been sold, double the company’s monthly sales goal. Price has something to do with it. The base Insight retails for 1,890,000 yen [approximately $20,500 as of 2/17/09], compared with 2,331,000 yen [approximately $25,300 as of 2/17/09] for the base model of Toyota Prius.

Fewer Japanese cars: The eight Japanese passenger-car manufacturers expect to sell a total of 19.4m vehicles worldwide in the current fiscal year through March 31, down 13 percent from the previous year, the Nikkei [sub] reports. Overseas sales are seen falling 17 percent, while domestic Japanese sales are projected to dip 11 percent to 4.29m.

Honda hao: Honda joins the chorus of automakers reporting good January sales in China. Honda Motor said its sales in China in January rose 16.8 percent to 38,022 units from 32,564 units a year earlier, the Nikkei [sub] says. Sales by Guangzhou Honda Automobile Co., Honda’s 50-50 joint venture with Guangzhou Automobile Group Co., rose 29.5 percent.

Ho-HUMMER: Sichuan Auto Industry Group Co, a small automaker in southwestern China, has denied a media report that it is in talks to buy General Motors’ HUMMER brand, Gasgoo reports. Bloomberg reported yesterday that Sichuan Auto was considering a $500M bid for GM’s HUMMER line. “It’s a complete rumor. We have never had discussions with GM, nor are we interested in HUMMER,” said an executive of Sichuan Auto. “We have no energy to consider making bids for foreign companies; we’re too busy running our own business,” said an assistant to the general manager of the company.

Changan at the doors: Chang’an Automobile, the Chinese carmaker that has joint ventures in China with Ford, Mazda and Suzuki, has signed an agreement in Mexico with Grupo Hispanoamericano Autopark for the manufacture and marketing of Changan cars in the region, Gasgoo says. Could come in handy for Changan’s bid for Volvo.

German governments taking over Opel? The German states of Hesse and Thuringia are mulling plans for an engagement in an Opel company that has been separated from GM, Automobilwoche [sub] reports. The states are sites of major Opel factories. Both states would neither confirm nor deny the reports. “All we are saying is that we are engaged in a good discussion with the Berlin government and the other states that have Opel factories,” the speaker of the Hesse government said, somewhat sybillinicly.

Daimler and BMW to cooperate—whether they want to or not: The boards of both Daimler and BMW have issued clear directives to their rebellious troops to cooperate in alle areas which are invisible to the customers and which don’t touch the brand, Das Autohaus says. Until now, attempts to do same had been torpedoed by feuding engineers. Now “everything short of a merger or cross holdings is thinkable,” Autohaus says. Thinkable, yes. But will the piston heads in Stuttgart and Munich bury the hatchet?

Used car market waking up: Prices and volumes of used vehicles have been rising in the US and major western European markets since the end of last year, the Nikkei [sub] reports. “The used-car market has come roaring back,” Jim Farley, Ford Motor’s head of marketing, said last week. “That shows that there is some credit availability out there.”

The trend, if it continues, would be welcomed by both carmakers suffering massive drops in demand and financially endangered dealer groups, many of which have been selling new vehicles at little or no profit, but can earn better margins on used ones. “It’s a glimmer of hope for the industry,” says Jesse Toprak, senior analyst with Edmunds.com, who’s been busy glimmer spotting for quite some time.

China snaps up Ferraris: Ferrari sold 20 percent more cars in China in 2008 than in the year before, Gasgoo reports. Chinese buyers purchased a record 212 Ferrari-brand cars. China was the fastest growing market for the brand in the Asia Pacific region. The U.S continues to be the largest market for the brand with 1007 cars sold last year, comprising 26 percent of Ferrari’s total global sales.

Sweden and GM still talking about Saab: Sweden’s government dismissed a Swedish television report that negotiations between GM and Sweden over Saab have broken down, Reuters says. GM and the Swedish government were not able to agree on the terms for $599m in loan guarantees to create an independent company of Saab, public service broadcaster SVT had said. Lisa Warn, spokeswoman for Swedish Industry Minister Maud Olofsson, denied talks with GM had been halted.

Minimizing of the MINI: BMW is cutting around 850 jobs at its MINI plant in Oxford, central England, as it scales back production in the wake of falling demand, Reuters says. BMW produced 235k cars at the plant last year—its only MINI factory worldwide. The plant will now be operating five days a week instead of seven. BMW said sales of the MINI had slumped 34.5 percent in January to just over 10,100 worldwide.

Sweden to GM: “Take a hike”: GM is asking Sweden to guarantee $600 million in European Investment Bank loans to keep the Saab Automobile unit operating until it can be restructured. All they got from Sweden was a firm nej, inte alls. (Forgetaboutit.) Sweden’s Premier, Fredrik Reinfeldt, said that “GM has to bear the responsibility,” Automobilwoche [sub] reports. Some insiders see the mounting unwillingness of foreign governments to help US automakers as a backlash against the “buy American” campaign. Non-,conspiracy-bound observers point out that the Swedish government is hoping that both GM and Ford will be successful in unloading their respective Swedish brands. Sweden wants to add extra incentive to move fast by removing any additional life support.

Chery / Volvo still in play: Usually, on the second day after a dalliance between a Chinese manufacturer and a Detroit brand is floated, a denial follows like clockwork. Instead, Chery-owned Gasgoo today runs a new story reiterating a possible bid by China’s Chery for Volvo, a brand which Ford is desperately seeking to unload. The story itself provides no new insight, but the added traffic is relevant from a SIGINT perspective.

It’s a crimson-red bloodbath: More than 460, or nearly 30 percent of publicly traded Japanese companies, are expected to report group net losses in the year ending March 31, the Nikkei [sub] reports. The bloodletting is especially severe in the automobile sector, where profits through the third quarter have been wiped out by bigger and bigger losses in the last quarter of fiscal 2008.

Cheap plastic alert: Leading chemical producer Mitsubishi Chemical Corp. will by April drop its pricing policy for plastics used in car parts in favor of one that halves the time lag for reflecting market prices of the key material naphtha, the Nikkei [sub] says. More than 200 automakers (OMG, there are still 200 alive?) and other manufacturers have agreed to the switch. Subsidiary Japan Polypropylene Corp. will be responsible for sales and pricing under the new strategy.

El bailout, ole! The Spanish auto industry, one of the hardest hit of Europe, will receive €4.1b in help from their government. The money is earmarked for automakers and parts manufacturers, Automobilwoche [sub] says.

Porsche testdriver crashes: A Porsche factory testdriver crashed his 911 Cabrio on the autobahn near Darmstadt, Germany, at high speed, and died, Der Spiegel reports. His colleague, following in a Panamera, barely avoided similar fate. The perished Porsche driver had 25 years of experience.

An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Beijing until further notice.

European Carmageddon: “What, me worry?” Europe experienced the full brunt of carmageddon in January. Europeans bought 27 percent fewer cars in January than in the same month of the prior year. Only 958,500 cars hit Europe’s highways and myways, Das Autohaus reports. The German industry group VDA expects the trend to continue. Relatively benign losses were recorded in France (down 8 percent) and Germany (down 14 percent). The European basket cases are Spain (down 42 percent), Italy (down 33 percent) and UK (down 31 percent). Romania lost half of its new car sales.

Share or retire: Toyota will introduce work-sharing arrangements at assembly plants in the US and Britain in an effort to retain jobs after sharp production cuts at these facilities, the Nikkei [sub] writes. The move is expected to involve US factories in Indiana and Texas, which roll out large vehicles, as well as plants in the UK, including a facility that assembles midsize cars and subcompacts in the county of Derbyshire. Toyota plans to propose the work-sharing arrangements to workers at these facilities by the end of the month. Those that do not accept will be allowed to apply for early retirement.

Suzuki wooed: Suzuki’s Chairman and President Osamu Suzuki has become a very sought-after executive since the automotive industry downturn intensified last fall, prompting heads of domestic and foreign automakers to look for potential partners, the Nikkei [sub] reports. While most major automakers like Toyota expect to report group operating losses this year, Suzuki projects 67 billion yen in operating profit. Its success has been built on “small cars,” which have become a growth area, in addition to the automaker’s strength in developing countries such as India. It is no wonder that behind-the-scenes entreaties to partner with Suzuki have picked up steam. The Nikkei does not name the suitors.

VeeDub powered by Toshiba: Volkswagen and Toshiba announced an agreement to jointly develop drive systems for electric and hybrid cars and related technologies, the Nikkei [sub] says. To create a rival to Toyota’s iQ ultracompact car, Volkswagen is developing small vehicles for European and emerging markets. The new drive systems will be installed in those vehicles. Toshiba also plans to develop a high-output battery system for VW’s next-generation electric cars.

Carmakers with zero cars: In 2008, China had more than 130 auto-making companies. The top 10 carmakers by sales in 2008 sold 7.82 million vehicles last year, accounting for 83 percent of China’s total auto sales in the year. The other more than 100 auto companies sold fewer than 1.6 million vehicles, and 10 of these carmakers made no car in the past two years, Gasgoo writes, citing industry figures. Chinese carmaker Youngman Auto saw the Lotus RCR model rolling off line on December 6 at its Guizhou facility, pulling Youngman out of the “zero-production” ranks.

Berlin Opel pow-wow: Berlin. Today, GM Europe honcho, Carl-Peter Forster; Opel Boss, Hans Demant; and Opel Worker’s Council Chief, Klaus Franz, will meet officials at the German Chancellery to discuss loan guarantees of up to €1.8b, Automobilwoche [sub] reports. GM Europe says it’s a precaution in case GM’s mothership goes belly-up. Decisions are not expected.

Porsche owns Scania shares—wants to sell quickly: In the course of taking over Volkswagen, Porsche had to make an offer to Swedish truck maker Scania to buy their shares. Porsche made a low-ball offer, not thinking that Scania would go for it. Scania did, collecting €396m for 8 percent, Automobilwoche [sub] reports. Porsche wants to unload the shares as quickly as possible, and, most likely, Volkswagen AG will inherit them.

HUMMER sold to China? General Motors Corp., working to sell assets to help keep $13.4b in US loans, has drawn interest in its HUMMER brand from a Chinese company and a private-equity firm, says Bloomberg [via Gasgoo]. The pace of negotiations has intensified in the past few weeks, said the people, who wouldn’t name the suitors and asked not to be identified because the discussions are private (so there). More meetings are scheduled this week. According to Bloomberg, “unloading the sport-utility vehicle unit would move GM closer to the goal of showing its future viability to the U.S. Treasury by Feb. 17. If the biggest US automaker can’t prove its ability to return to profit, it could be told to give up the loans or use the cash for a government-funded bankruptcy.” Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, estimates Hummer might fetch $100m or less.

Fallout in Japan: The major production cuts being implemented by Japan’s carmakers are beginning to seriously hurt the finances of their parts suppliers, the Nikkei [sub] writes. Autoparts suppliers and other firms in the industry employ a total 670k workers in Japan, nearly four times as many as those working at domestic carmakers. Says the Nikkei: “If many of them fail, the industry itself could become unsustainable.”

More fallout in Japan: A shed load of no good is spreading from declining automobile sales through a wide range of industries in Japan, spilling over to non-life insurance companies and consumer lenders, the Nikkei [sub] reports. Major non-life insurers rely on auto insurance for roughly half of their earnings. Their premium revenues are forecast to decrease for a second consecutive year. Meanwhile, companies offering auto loans (yes, they still give loans in Japan) are also having a tough time. Total auto loans handled last month by Toyota Finance Corp. are believed to have dropped nearly 20 percent from a year earlier.

Ghson gloomy: Renault posted a 79 percent drop in full-year net profit due to the collapse in demand for autos and offered no financial forecasts for 2009, the Nikkei [sub] says. Renault targets positive free cash flow in 2009 by cutting inventories, suspending its dividend, reducing capital expenditure and fixed costs, and wringing more synergies from its alliance with Nissan. Chief Executive Carlos Ghosn gave a gloomy outlook for global sales this year. Ghosn, who is also president of the European Automobile Manufacturers’ Association, said that if demand continued to drop at the same rate as it’s fallen so far this year the world market could end up below 50m vehicles in 2009, compared to 69m in 2007.

We don’t hire: As part of urgent workforce cuts at home and abroad, Nissan plans to hire only a few dozen graduates in spring 2010, compared with 582 this spring, the Nikkei [sub] reports. Nissan seeks to slash 12k domestic jobs by the end of fiscal 2009, including 4k full-time positions. Honda will hire only 890 new graduates in spring 2010, down 40 percent from 2009 and the first drop below 1k in four years, the Nikkei [sub] says.

All you can eat Passat: SVW, one of Volkswagen’s two Chinese ventures, will launch a new Passat in the second quarter of this year, Gasgoo reports. The revamped Passat model, code-named B6.5 inside, will share the PQ46 platform with FAW-VW’s Magotan. By lengthening the wheelbase and bodywork, the revamped Passat will be longer than the Magotan. The Magotan, based on the original new Passat B6, was introduced by FAW because SVW wanted to stick to its B5 model. SVW reportedly will launch an all-new B-class car Skoda Superb in the second half of this year. The new Superb will also be  produced on VW’s PQ46 (B6) platform, and is also expected to be longer than its European version. Welcome to VW in China.

Japanese bondage: Toyota plans to procure 100 billion yen or so by issuing about 50 billion yen each in five- and 10-year straight bonds as early as this month, the Nikkei [sub]. The issuance of straight bonds will be the automaker’s first since September 2002. The rating on Toyota’s long-term debt has been downgraded by both Moody’s Investors Service Inc. and Standard & Poor’s, each by one notch from the highest grade. This sets Toyota apart from other automakers who are treated by banks like lepers.

Nissan going for greener pastures: Nissan’s Carlos Ghosn talked up plans for mass-producing electric cars in the U.S., Europe and China, the Nikkei [sub] reports. Chief Operating Officer Toshiyuki Shiga admits that he would like to see Nissan’s electric cars made in Japan. But with the financial crisis crimping Nissan’s ability to raise capital, the US and Europe, which have introduced subsidies for environmentally friendly cars, are more attractive venues. Nissan would be the first Japanese automaker to apply for the US government’s 25 billion dollar program of low-interest loans to develop green cars.

China‘s Top Ten for January: Shanghai Volkswagen replaced FAW VW as the market leader in January with sales hitting 40,000 units, Gasgoo reports, citing data released by the China Association of Automobile Manufacturers (CAAM). The top ten Chinese carmakers in terms of sales in January were Shanghai Volkswagen (40,000), FAW Volkswagen (38,800), Shanghai GM (32,700), Beijing Hyundai (32,600), Dongfeng Nissan (26,300), Chery (25,300), Guangzhou Honda (21,600), Geely (20,400), FAW Toyota (19,200) and BYD (18,600). China’s passenger car sales came to 610,600 units in January, down 7.76 percent from a year earlier, but up 4.44 percent from December 2008, official data shows.

PSA deep in the reds: French PSA reports a loss of €343m for 2008, compared to a gain of €885b in 2007. PSA expects further losses in 2009, Automobilwoche [sub] reports.

EU puts France on notice: The EU Commission warned France to not overstep EU rules with their bailout. “If the help comes with conditions, for instance to keep production in France, then these measures would be illegal and would not be approved by us,” free trade commissar Neelie Kroes said according to Automobilwoche [sub]. The flak from Brussels does not come as a surprise. Those are strong words from Brussels which is usually a bit more diplomatic.

Nissan’s no-hitter: After announcing an expected loss in the current fiscal, Nissan will suspend corporate sports activities, including its standout baseball team, the Nikkei [sub] reports. Nissan’s ball club, which was founded in 1959, has won corporate championships and produced a string of professional baseball players. Also to be sidelined is Nissan’s table tennis team, which also dates back to 1959. Its most recent stint atop the winner’s podium occurred in 2007. The table tennis and track and field teams will be disbanded at the end of next month. All eyes are on Toyota and whether they will ditch their vastly more expensive F1 team. The rumor mill says they will stick with it for the now.

Nissan goes for green green: Nissan has applied for low-interest loans being offered under a US government program aimed at promoting the development of environment-friendly cars, the Nikkei [sub] says. This is the first time a Japanese carmaker has applied for the 25-billion-dollar program. One of the conditions for qualifying for the federal loan program is that the applicant has been operating facilities in the US for an extended period of time. Nissan intends to apply for similar aid programs for developing environment-friendly vehicles in Europe and China.

Cheaper hooch: One of the many problems of bio-ethanol is that it’s expensive to make. Toyota, Nippon Oil, Mitsubishi Heavy and three other firms will jointly develop technologies to produce cellulosic ethanol from nonfood plants. By bringing together their know-how in such fields as plant cultivation, glycation and fermentation, they hope to develop a comprehensive production system and bring down production costs to around 40 yen ($0.44) per liter by 2015, says the Nikkei [sub].

PSA China up: Dongfeng Peugeot Citroën joins the ranks of Chinese carmakers who had surprisingly good January sales. They sold more than 19,000 vehicles, including 12,414 units of the Dongfeng Citroën brand and 6,750 units of Dongfeng Peugeot, Gasgoo writes. In January, the Dongfeng Citroën series saw its retail sales reach 12,414 units, up 107 percent year on year.

Great Wall up in China: Chinese private automaker Great Wall Motor sold 15,000 vehicles in January 2009, hitting a record high. The growth of its total sales volume for the entire 2008 topped 10 percent.

Denmark first in Europe for China’s BYD: Denmark will be the first European market for BYD’s electric cars, due to be on the streets by 2011. Sales manager for BYD, Henry Z. Li said that Denmark was chosen as the first European test market because it ‘has the best tax policy among EU countries in relation to electric cars.’ BYD intends to launch its own 3F DM hybrid car and the E6 electric cars on the Danish market, together with a network of car charging stations, Gasgoo reports

PSA: “It’s going to be horrible:” PSA CEO Christian Streif is readying his company for 20 percent less sales in 2009 than in 2008, Das Autohaus reports. According to Streif, “the perspectives are horrible.” He doesn’t see a quick turnaround. 2010 will also be challenging, said Streif.

It’s official: China largest car market in January: Largely due to the plunge in American car sales, China overtook the U.S. in monthly vehicle sales in January 2009 for the first time to be the world’s No. 1 auto market for the month, according to official data released by China Association of Automobile Manufacturers (CAAM) today, Gasgoo says. According to the CAAM, 735,000 vehicles were sold in China in January. That surpasses the 656,976 vehicles sold in the U.S. the same month. If China can outpace the United States in sales for all of 2009, it will become the world’s largest vehicle market. Last week, Mike DiGiovanni, General Motors Corp.’s executive director of global market and industry analysis, projected that Chinese auto sales could hit 10.7 million vehicles in 2009, more than his estimate of 9.8 million unit sales in the U.S. this year. Autodata Corp. forecasts 2009 U.S. sales at 9.57 million.

Nissan sees red: Nissan cut its earnings outlook, saying it now expects a consolidated net loss of 265 billion yen for the year ending March 31, the Nikkei [sub] writes. The automaker earlier forecast a net profit of 160 billion yen, down 67 percent from the previous term. Nissan downgraded its sales outlook to a 23 percent fall. The carmaker also projects an operating loss of 180 billion yen, tumbling into the red for the first time in 14 years, in a sharp reversal from the 270 billion yen profit, down 66 percent. Nissan will cut 20,000 jobs in Japan and abroad by the end of March 2010, bringing the total payroll down to 215,000 employees. This is the first loss since fiscal 1999 when current President Carlos Ghosn became chief operating officer after Nissan formed an alliance with France’s Renault.

India keeps going down: India’s domestic car sales fell for the fourth straight month in January. Sales fell 3.2 percent in January, the Nikkei [sub] reports. They were down 7 percent in December, 19 percent in November, 6.6 percent in October, 4.4 percent in August, and 1.7 percent in July. Only in September 2008, sales rose 2.8 percent.

There’s good loss and bad loss: Now that it’s not embarrassing anymore to book a loss, many Japanese companies book them where they can—to save taxes and to make strategic retreats to be better positioned when the economy recovers. “Starting this week, the stock market is expected to pay close attention to the quality of loss that firms report,” the Nikkei [sub] says. The key metric is loss to equity capital. Amongst carmakers, Mitsubishi Motors definitely is in the “bad loss” corner with an 18.9 percent net loss to equity capital. The ratio for Toyota is only 2.9 percent, putting the firmly in the “good loss” camp, the Nikkei opines.

Not so fast: GM China and FAW Group have postponed announcement of their cooperation details planned for the weekend given that they still have to wait for government approval, Gasgoo says. It just so happens that GM has a big day in DC next week also. The two parties unveiled plans to establish a joint venture for producing light commercial vehicles and said details of the partnership will come out two days later. The announcement is now postponed as it has to go through the process of regulatory approval.

Ford China down: While other car companies reported a good January, Changan Automobile Co, Ford’s passenger car joint venture in China, said that its January sales fell 26.7 percent to 88,971 vehicles from 93,710 a year earlier, Gasgoo reports. Sales of the joint venture had fallen 5.88 percent in 2008.

Vive la bailout: The French government will help PSA and Renault with a €6b loan package at favorable conditions. The price: “All decision making will be the object of thorough governmental scrutiny,” says Les Echos via Das Autohaus. Automakers shall refrain from moving production abroad, from closing factories and layoffs. France wanted them to close their factories in other countries, such as the Czech Republic, instead, but this is incompatible with EU law. Czech Prime Minister Mirek Topolanek characterized the mere thought as ‘unbelievable.’

Isuzu sees red: Isuzu posted net losses for the October-December quarter due to weak domestic truck sales, a stronger yen and higher material costs, the Nikkei [sub] reports. Net losses were ¥11.7b in the three months ended Dec. 31, down from a profit of ¥24.4b a year earlier. Sales dropped 21 percent to ¥340.4b in the quarter, down from ¥430b a year ago. On an operating basis, Isuzu lost ¥1.6b, compared with a ¥28b profit in the quarter a year before. For the full fiscal year ending March, Isuzu lowered its outlook to a loss of ¥15b.

Yen for govt. yen: Japanese auto makers are scrambling to raise cash before the end of the fiscal year in March, the Nikkei [sub] says. Nissan is considering applying for the low-interest funds, Isuzu said Friday that it may do the same to raise several tens of billions of yen. Mitsubishi Motors is also considering tapping the Japanese government program.

Toyota stomping on brakes, hard: Toyota, which had announced yesterday that it is preparing for a group operating loss of 450 billion yen for the year ending March, is stepping up efforts to quickly stop the hemorrhage, the Nikkei [sub] says. Toyota is scaling back output more because of an inventory glut due to the sharp drop-off in sales. It aims to cut fixed expenses, which are estimated at 7 trillion yen, by 10 percent. Capital spending could be reined in to around 700-800 billion yen, roughly half that planned for this fiscal year. 74 production lines throughout the world will be slimmed down, especially in Japan, the U.S. and Europe.

German clunker culling better than expected: Until Friday, the German government has received 17K completed applications for the €2.5K clunker culling money. The form has been downloaded 458K times. German Minister of Economy Michael Glos says the program is working better than expected. Rumors of the program running out of money soon are exaggerated, he said according to Automobilwoche [sub]. Reacting to criticism that mostly smaller Japanese cars profit from the program, Glos said that they are full of German parts, and as export nation #1, Germany has to be on the side of free trade. Good boy.

Opel increases production. Yes, you did read right: Due to high demand for its Corsa and especially Insignia models, Opel will increase production in three factories, Eisenach, Saragossa, and Rüsselsheim, das Autohaus reports.

Black January for German carmakers: Volkswagen, which appeared to be immune from carmageddon, and actually had closed the year with a slight plus, caught a big load of the virus: Its worldwide sales dropped approximately 20 percent in January, das Autohaus reports. Audi, which looked totally unaffected in 2008, even lost 28 percent in January. Daimler’s worldwide sales were down 31 percent in January, BMW’s 24 percent, Automobilwoche [sub] reports. (Bad) surprise: BMW’s Mini lost 34.5 percent.

Forza Italia: Italy unveiled a $1.7b program to help its struggling car industry, Reuters reports. The cash is conditional on companies keeping their Italian plants open. Which may attract the ire of the EU. The plan includes cash4clunkers of up to €1.5K. In January, new car sales in Italy dropped 33 percent. Germany is offering 2,500 euros for new car purchases as part of a €1.5b package for its industry, while France has said it could pump €6b of aid to its car makers.

China sales up: China’s passenger car sales edged up in January from the previous month, helped by government policies, Gasgoo writes. A total of 647,594 cars, including sport utility vehicles, were sold in January, up 0.5 percent from 644,083 in December, data from the China Passenger Car Association showed.January sales fell 0.2 percent from a year ago, but the comparison was distorted by a week-long Lunar New Year holiday, which occurred in January this year but in February 2008.

Chery sweet: China’s Chery reported all-time high monthly sales of 3, 5000 units in January, up 36.14 percent year on year and 31.5 percent month on month respectively, Gasgoo says.

Ssangyong busted, SAIC out: Ssangyong Motor Co., South Korea’s smallest carmaker, won court approval for bankruptcy protection, ending China’s SAIC Motor Corp.’s control over its Korean unit, says Gasgoo.

Geely doesn’t want Volvo: China’s largest privately owned carmaker Geely has denied reports that it is acquiring the Volvo car unit from Ford Motor Co, China Daily reports. Ford has also approached Chery Automobile Co and Chongqing Changan Automobile Co. Li Chunbo, an analyst with CITIC Securities Co in Beijing, said when a Chinese enterprise attempts to acquire a foreign rival it has to consider how it will benefit from the deal and whether it is capable of dealing with the purchased unit. “When you compare the market value of Geely and Volvo, you will ask how can Geely raise enough money to buy the European car brand,” he said. If this goes on much longer, not much money may be needed.

La bella clunker culleria: Italy is hopping on the European clunker culling bandwagon. Italian consumers will be given six months to go out and buy a new car under a “strong package” of incentives that Silvio Berlusconi’s centre-right government expects to approve today, Financial Times reports. The package would provide possibly up to €1,500 a car, to exchange models at least 10 years old for new, relatively small cars. The government would also provide credit guarantees to banks to finance purchases. The incentives are not limited to Italian cars, but the conditions attached—small capacity and least polluting—”would clearly favor Fiat,” the FT says. Protectionism, with style . . . .

GM begs from the poor: According to Wikipedia, Thailand is a Third World country. Poverty, especially in rural areas, is rampant. This doesn’t keep GM from begging there. The Thai unit of GM seeks financial support from the Thai government and local banks to help fund the development of a $429 million pickup truck project, the Nikkei [sub] reports. Steve Carlisle, President of General Motors Southeast Asia Operations Ltd., said that during its almost 10 years of operation, GM Thailand had never sought funding from Thai banks to support its operations.

Small is beautiful: Suzuki said that the mini-vehicle maker will seek to build an earnings structure that is profitable even on annual sales of 2.5 trillion yen, 1 trillion yen less than the level projected for this fiscal year, the Nikkei [sub] writes. The company has much more room for cost-cutting than Toyota, Osamu Suzuki told a Tokyo press conference. “Toyota is like a dry towel,” he said. “We are a drenched one from which a lot of waste can be squeezed out.” Suzuki expects to post an operating profit in the current year ending March 31 despite a steep decline in car demand around the world and the yen’s appreciation. One of the major reasons for Suzuki’s relative strength is its success in the Indian market.

Green breaks: The Japanese government plans to waive taxes on hybrid cars and electric vehicles completely, the Nikkei [sub] reports. Other types of environmentally friendly cars will also receive 50-75 percent tax reductions depending on their fuel economies and exhaust emissions.

Nissan has cash, asks government for more: Nissan considers applying for government assistance, which would likely take the form of around 50 billion yen in low-interest funds raised from the state-backed Development Bank of Japan, the Nikkei [sub] says. The company says it has plenty of cash on hand but is seeking to secure its financial base by diversifying its funding options. Nissan’s cash reserves totaled roughly 510 billion yen on Sept. 30, and it has access to more than 300 billion yen in credit. The automaker “has no cash flow problems,” says a senior company official.

GM flirting with FAW: GM is holding discussions with major Chinese automaker FAW Group to form a partnership for light commercial vehicles, Reuters reports. The two parties have already registered a name with the State Administration for Industry and Commerce, which is the first step of Chinese joint venture courtship. GM already makes light commercial vehicles in China in a three-way tie-up with SAIC and Liuzhou Wuling. GM manufactures Buicks in Shanghai with SAIC, China’s largest auto maker. FAW, one China’s three biggest automakers, operates car manufacturing ventures with Volkswagen and Toyota. SAIC is also in a joint venture with VW. SAIC and FAW have been considered bitter rivals, although there are reports of a thawing. GM said its commercial vehicle venture in China sold 19.7 percent more vehicles in January than a year earlier, helped largely by sales of the Wuling Sunshine minivans.

Mitsubishi abandons Dakar: Mitsubishi Motors Corp will pull out the fabled Dakar Rally as part of steps to cope with worsening earnings, the Nikkei [sub] says. The move “is expected to cut costs by a few billion yen,” a company official said. Mitsubishi Motors won the rally 12 times, including a seven-year winning streak. Through a motor sports subsidiary, the firm will continue to support the rally by offering technological information and supplying parts to teams of individuals participating in various events.

Arigatou, but no arigatou: Mitsubishi Motors does not intend to seek government funds, the Nikkei [sub] reports. Mazda also said it “is not considering receiving public funds,” according to Nobuyoshi Tochio, general manager of the financial services division.

Honda’s new hybrid: Honda introduced an all-new Insight hybrid that the firm hopes will help it overtake rival Toyota in one of the few auto segments not yet affected by dismal sales, the Nikkei [sub] writes. Slated to hit dealerships Friday, the car will carry a starting price of 1.89 million yen, about 20 percent less than Toyota’s best-selling Prius hybrid. Honda’s proprietary new technology enabled it to make the vehicle lighter and more compact than its existing hybrids, thus pushing down production costs by about 40 percent.

Fiat tries again in China: Fiat has found new Chinese partners after its Nanjing fiasco . Its multiple tie-ups with Chery Auto, Guangzhou Auto and Changan Suzuki are awaiting the approval of China’s auto regulatory bodies, Gasgoo reports. The joint venture applications may have results next month. Changan Suzuki will make Fiat’s Sedici, a crossover model jointly developed by Fiat and Suzuki in Europe. Suzuki’s European facility has OEM operations for Fiat, and the Japanese carmaker’s Chinese venture said it could do the same job.

No foreign brands allowed: Volkswagen’s central parts depot is in Baunatal (in the district of Kassel, in Hesse, Germany). It’s a huge place. If you want to do business with them, you’d better drive a car made by VW (anything from a Seat to a Bugatti will do). If you arrive in a competing make, you will walk, Automobilwoche [sub] reports. Even if you deliver a truck full of parts.

India‘s car sales up: Just like neighbor China, India reports rising cars sales for January. Most car companies registered positive sales despite the withdrawal of price rebate schemes, India’s Economic Times reports. Tata Motors continued its negative run, with its passenger vehicle sales declining by 9 percent.

Toyota losses spreading: Toyota’s parts arm Denso and four other Toyota Motor Corp. affiliates are expected to suffer group net losses for the year ending March 31 as the automaker’s drastic output reductions battered businesses along the supply chain, the Nikkei [sub] writes.

Hitachi lowers volume of auto biz: Hitachi considers cutting in half the number of 85 marketing and production sites handling automobile-related equipment, the Nikkei [sub] says. Hitachi group company Clarion has already decided to close a factory in Hitachinaka around the end of 2010 and keep just one domestic factory open. In the US, where Hitachi operates Hitachi Automotive Products (USA) Inc. in the state of Kentucky and three other production bases, two locations may be closed.

Mazda sees red: Mazda expects its first loss in eight years for this fiscal year due to damage sustained from a strong yen and a sharp downturn in consumer sentiment, the Nikkei [sub] reports. The Hiroshima-based company now expects a net loss of ¥13 billion for the current fiscal year through March, compared with its previous forecast for a ¥50 billion profit.

Ford moving to China: Ford Motor Company’s Asia Pacific and Africa region headquarters, will be moving from Bangkok to China, Gasgoo reports. Bangkok will continue to serve as Ford’s ASEAN regional headquarters. In 2004, Volkswagen AG and General Motors relocated their Asia Pacific regional headquarters to China.

Small getting bigger and bigger: Underscoring China’s move from big to small, SAIC-GM-Wuling, a Chinese venture of GM and leading manufacturer of mini-trucks and mini-vans in China, reported all-time high sales of 75,168 units in January, Gasgoo writes. The record sales were largely on the strength of Wuling Sunshine, which remained the best-selling model and saw its sales volume hit 1.4 million units by the end of January 2008.

Not a good start for Deutschland: Germans bought 14.2 percent fewer cars in January 09  than in January 08.  Saab (-60.7 percent), Chrysler (-53 percent), Land Rover (-51.9 percent), Nissan (-51.1 percent), Jaguar (-31 percent), Skoda (-30.7 percent), Mercedes (-30 percent), Porsche (-24.7 percent) and Opel (-22.7 percent) were the big January losers in Germany’s car market, Automobilwoche [sub] reports.  Ford sold 25.9 percent more. Smaller importers such as Hyundai (+50.8 percent), Mazda (+27.2 percent) and Lancia (+13.7 percent) gained. The trend goes from big to small.

Out with a Bangle: After 17 years with BMW, U.S.-born Christopher Bangle resigns as chief designer of the BMW Group. The Bavarians go Dutch with Adrian van Hooydon. According to Reuters, Chris Bangle is “one of the most well-known and controversial people in the auto industry.” Bangle was the object of multiple online petitions calling for his sacking. After his 2002 redesign of the 7 Series sedan, the vehicle was voted one of the 50 worst cars of all times by Time magazine, along with such other infamous models as the 2001 Pontiac Aztek and the 1998 Fiat Multipla.

Here they come: China’s SAIC will sell its homegrown cars to Spain, UK, and Israel beginning in 2010, Gasgoo reports. Some of the cars will come directly from SAIC’s assembly plants in Shanghai and Nanjing, while others will come from the company’s UK assembly plants, which SAIC acquired from Rover. The UK will get domesticated Chinese. All cars will comply with EU Euro-5 emission standards.

Germany down 14 percent in January: Not quite 19 percent as feared yesterday, but close. Germany sold 14 percent fewer cars in January 2009 than in January 2007, Automobilwoche [sub] reports. If you are looking for a statistical savior: Adjusted for buying days, the drop is only 8 percent. All eyes on the clunker culling money, €2.5K. It was introduced 1/27, too late to save the first week of the year.

Sania rejects Porsche, Porsche happy: Much to the relief of Porsche, Sweden’s truckmaker, Scania, rejected a bid Porsche had to make after taking over VW, the Wall Street Journal [sub] writes.

Y’all come back now: Toyota wants to rekindle the flame with the man credited with its rapid growth in the U.S. market, Yoshimi Inaba, the Nikkei [sub] reports. Inaba is now the president of Central Japan International Airport Co. Inaba is expected to leave his current post in June, but his position at Toyota has not been determined. The highest position he held at the automaker was executive vice president.

Tata in the red: Tata Motors reported a loss of $53m in the October–December (Q3) 2008 period due to foreign exchange loss and a massive decline in sales, India Times reports. Net sales revenue for the company in Q3 fell 35 percent and sales volume dropped 32 percent.

Mitsubishi sees red: Mitsubishi Motors Corp. is likely to log a group net loss of around 20 billion yen for the year ending March 31, the Nikkei [sub] says. The red ink will be the carmaker’s first in three years. It could swell further depending on how sales in the January–March quarter pan out.

Red Maos for green cars: Consumers in 13 Chinese cities will receive a financial subsidy if they buy energy-saving and new energy cars, Gasgoo reports. No details on the subsidies were released.

Chinese profits down: Many Chinese automakers, including Changan Auto, SAIC, FAW Xiali and Jianghuai, have warned that their net profit for 2008 may have dropped by 50 to 100 percent due to sluggish demand and higher material costs, Gasgoo writes.