While America Slept. Friday, December 26, 2008

A short 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. For the next two weeks, WAS will be filed from Tokyo.Hyundai up for sale: According to Reuters, the 11 shareholders of Hyundai Corp, “are planning to offer a 50 percent stake plus one share” (i.e. a majority) to an interested buyer, at the paltry price of $127.6m. South Korean banks and a state agency, led by KEB and Woori Bank, own a combined 87.95 percent stake in Hyundai Corp after bailing out the former unit of the Hyundai Group in 2003. According to readily available information, Hyundai Corporation is composed of five divisions: Automobile and Electrical Equipment, Ship and Machinery, Steel, Brand and Commodities, and Natural Resources. However, the Reuters article refers to Hyundai Corp. as a “trading and resources-development company,” or an “energy developer.” Something doesn’t compute quite yet. The story bears monitoring. Nothing yet on the other wires.Mazda sends U.S. workers home: Mazda plans to place about 400 workers at its joint venture plant in the U.S. on temporary leave starting in the middle of next month as part of ongoing production cuts, the Nikkei reports. In addition, Mazda began scaling back output of the Mazda2 subcompact, known in Japan as the Demio, at its joint venture plant in the Chinese city of Nanjing this month.Bad news for steel makers (as if they don’t have enough bad news:) Japan’s Toray took a 21 percent stake in German carbon fiber parts manufacturer Advanced Composite Engineering to tap demand among European automakers, the Nikkei writes. Toray’s new German buddies have contracts with Volkswagen, Porsche, Audi, and others. The Nikkei: “Carbon fiber is considered a key material to make cars lighter, but its use is limited to such parts as power transmission shafts in some luxury vehicles. The problem is that carbon fiber composites cost dozens of times as much as steel. With costs reduced and the molding process quickened in the future, carbon fiber composites are expected to find their way into auto bodies and exterior parts.”Oh, mother: Toyota and Daihatsu announced that they have released a compact minivan that can accommodate up to seven passengers. “The new minivan is designed for mothers raising families, and the two automakers seek to capture demand among women who are switching from minicars,” writes the Nikkei (sub.) It must be targeted at the export market, because Japan has a huge shortage of moms.Uh-oh: Toyota recalls 121,930 cars in China to fix a problem that could result in loss of steering control, reports Reuters. Affected are 54,657 Reiz and 62,517 Crown sedans, made by Toyota’s joint venture with FAW Group between February 2005 and October 2006. Further affected are 4,756 Lexus models made in Japan between February 2004 and September 2006. The company denied requests to provide cost estimates for the recall.Unusual Christmas holidays at FAW-Toyota: FAW Toyota announced that its Tianjin, China, plant will halt production from Dec. 26 – Jan. 5 “for the routine mechanical overhaul” and that the facility’s staff will get ten days off. “But actually it is the sales slide and oversupply that have brought the joint venture’s production to a halt, state media said today,” writes Gasgoo. In China, routine maintenance is usually performed closer to the Chinese New Year which will fall into the end of January, beginning of February 2009 period.Give me the money, Korean style: Troubled Korean SUV maker Ssangyong has hopes that their South Korean government may lend support (and money,) Reuters says. China’s SAIC, which owns 51 percent Ssangyong, had told them SAIC would bail if the South Korean company’s labor union doesn’t accept a restructuring plan. The government support doesn’t come without fineprint: State-owned Korea Development Bank (KDB) has called on SAIC to provide fresh funding and payment guarantees worth a total of $245m to Ssangyong as a condition for new loans, Reuters says in a separate piece.Good tidings for Europe, lump of coal for U.S.: The pre-Christmas shopping behavior is a closely watched leading indicator for the next year. In most of Europe, the unfathomable happened: People shopped as much as in the year before. The German Association of the Retail Industry actually expects a slight plus, writes das Handelsblatt. Different situation in the U.S. “Price-slashing failed to rescue a bleak holiday season for beleaguered retailers, as sales plunged across most categories on shrinking consumer spending,” writes the Wall Street Journal. Total retail sales, excluding automobiles, fell 8 percent in December.