Global oil prices are on the rise as the crisis in Iraq contributes to market instability. Large chunks of Iraq’s oil production infrastructure have fallen under militant control, leading to a sharp drop in output. Meanwhile, Canadian officials are upset with the Obama administration’s handling of the Keystone pipeline. They contend that the inaction on Keystone is keeping millions of barrels of Alberta crude from reaching more profitable markets.
Weeks prior to the historic deal reached between Iran and the “P5+1″ group of nations, TTAC reported on some of the machinations going on behind the scenes regarded the United States, France and their respective auto industries ability to do business in Iran. We put forth the theory that any deal with Iran would be a boon to auto manufacturers, who would have access to a market expected to be worth 1.5 million units in a few short years, with a very young population and a standard of living that is substantially better than many highly touted emerging markets.
At the time of publication, we encountered significant dismissal, if not disagreement. But as it turned out, negotiations had been ongoing since the start of 2013, and the preliminary deal appears to make the auto industry a big winner.
A study by Edmunds on the buying habits of millennials shows that 2013 was not a particularly good year for young car buyers. Despite making good headway in 2012, 2013 saw those gains practically eroded, as a weak job market and rising home prices helped stymie any growth in market share for automotive consumers aged 18-34.
The Audi Q3 won’t be coming to the United States for a couple of years, according to Car and Driver. The issue stems from the Q3’s approach angle, which is not sufficient to be classified as a “light truck” in America. Why does this matter? Well, CAFE of course. Crossovers, as car like as they may be, are more beneficial for auto makers looking to meet CAFE standards, and Audi isn’t going to all this trouble to have the Q3 come over as a car.
The big news this past week from Nissan: lots of old iron at Pebble Beach, concept car test drives for sympathetic journalists and a pledge to have autonomous cars ready (but not on sale) for 2020. More interesting than that is news of Nissan’s booming exports from America. Some say that this is the “new normal” – Japanese OEMs expanding their manufacturing base in America as they leave Japan en masse to both insulate themselves from a volatile yen, take advantage of America’s welcoming manufacturing climate and shed a reliance on Japan’s aging and declining population. And even more interesting than that is how it was presented.
Having failed to learn from previous mistakes, Volkswagen is inexplicably bringing the Phaeton back to North America, despite being totally contradictory to their push downmarket to appeal to mainstream American car shoppers.
While we get the Chevrolet SS with a naturally aspirated small-block V8 and a two-pedal transmission, customers in the UK get a much more aggressive package.
Weaker than expected growth in the United States has led Carlos Ghosn to issue an even more ambitious goal; double Nissan’s sales by 2017.
My girlfriend and I recently vacationed in Zurich. Anyone who’s ever been to Switzerland will be surprised by this, since it’s possibly the least romantic place in human history. Seriously: instead of flowers, stuffed animals and chocolate, Swiss couples exchange presents like a well-built lamp, oddly-shaped stainless steel kitchen utensils, and … chocolate. And then they shake hands and sleep in two separate very sturdy beds.