As FCA holds their first annual general shareholders meeting in Amsterdam (after 114 such meetings in Turin), Pirelli has been sold to the Chinese. Pininfarina negotiates its sale to Mahindra. The Italian automotive industry as a whole is in a sad state. The reasons for this are many, but the process of “de-Italianization” of the country’s auto industry continues. In the end, all there could be left is a memory and many homeless ghosts.
Among the first to come to Brazil when the market was opened up again in the 1990s – after a hiatus of almost 50 years when this country closed itself off to the world – Renault has seemingly reached a limit in Brazil. Its market participation has hovered around 6 percent for years. Now, hungry for more, the French company is showing its new plans that will deeply affect their operations in Latin America at large and shake up their manufacturing base in South America, most especially Mercosur (namely Brazil and Argentina).
“That’s not going to happen…Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars. Or you have to drop the price and continue to transact at the prices where you were historically. I think the logical conclusion is that it’s better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes.”
That quote was from Cadillac boss John De Nysschen in response to questions about cutting the prices of Cadillac models, which some dealers complained has risen too quickly. How quickly that’s changed.
Buried in a Reuters article on Hyundai’s new Prius-fighter was talk of Hyundai’s new Aslan sedan. The Aslan is intended to take on the growing sales of imported sedans in South Korea, namely the VW Passat, BMW 3-Series and Audi A4. Based on a front-drive architecture, the Aslan seems to occupy a slot between the Sonata and the Grandeur (aka our Azera) – which made it all the more surprising when Reuters reported that “The automaker is also looking at introducing the Aslan in China, the United States and Middle Eastern countries.”
In the hagiography of automobiles beloved by enthusiasts, the Volkswagen Phaeton is revered as an icon of technological brilliance, rejected in America by a marketplace of Philistines too self-conscious to appreciate its technological brilliance or unmatched discretion. For once, it’s an estimation not entirely divorced from reality.
But given the disastrous results that resulted in a brief, two-year stint for the Phaeton, one would expect that VW of America, which is desperately trying to rebuild their fortunes in the American marketplace, would be gun shy about reviving the Phaeton in America.
Instead, the Volkswagen Group’s terminal insecurity about the Volkswagen brand’s standing in the marketplace has led it to launch a two-pronged attack, with two luxury sedans planned for both China and the United States.
2014 has been a good year for the rental car industry. A recovering economy has meant more car rentals and more miles traveled by consumers. Volume alone isn’t responsible for the rental companies’ recent success, though. Each of the big three rental chains has been able to raise prices, thanks to the consolidation of an industry that they now collectively control 98% of.
While we’re fortunate to be treated to a weekly look at American auto auctions courtesy of TTAC’s Steve Lang and his Hammer Time series, today we’re getting a glimpse of an auction on the other side of the world.
While our own Ronnie Schreiber may have taken Zero Hedge to task for its inaccurate story on unsold cars, Australia is facing a situation where rising inventories have created a buyers market, just as local production of automobiles is winding down.