#BertelSchmitt

News of Volkswagen being open to establishing a works counci l at its plant in Chattanooga are widely interpreted as the UAW getting a long-sought nose under the southern tent. It could also be a shrewd move to block the union.

The European car market goes to where it has been going for a while: To the toilet. February sales in the EU were down 10.5 percent year-on-year. Sales in February were 9.5 percent lower than an already disappointing January.

When Henrik Fisker left last week, all we knew was that he “disagreed on business strategy” with the management, code for “board-room brawl, founder leaves in a huff.” Now we know where the disagreement was. It was whether to ask Uncle Sam or Auntie Zhang for money.

It’s not just the UAW that is upset about free trade agreements. The Koreans are likewise. The offices of the Korea Automobile Importers and Distributors Association were raided by investigators of the country’s Fair Trade Commission, the Financial Times reports. The agency alleges that BMW, Mercedes-Benz, Volkswagen and Toyota Motor were involved in price collusion.

Fuel economy of vehicles sold in the U.S. is on the rise, recording the sharpest gains in almost four decades, an annual report by the EPA shows. Foreign automakers have the most efficient fleets.

The EPA report shows an average 16 percent gain in fuel efficiency for in the past five years, to 23.8 miles per gallon. The EPA’s list is led by foreign carmakers, with Detroit sharing the bottom places with purveyors of thirsty performance cars.

Volkswagen has been tinkering with hydrogen for longer than I can remember. Yesterday, CEO Martin Winterkorn said it was all for naught. Hydrogen fuel cells are unlikely to become a cost-effective way to power cars in the near future, Winterkorn told Automotive News at Volkswagen’s press conference in Wolfsburg. He said it’s not Volkswagen’s fault:

With discretionary funds increasingly decreasing, low-cost (or make that “approachable”) cars are all the rage. Before the 2014 Corvette Stingray, the first new Corvette in nine years, is going on sale in summer, there already is talk of a little less expensive model.

When I was in the automotive propaganda business, one of the most horrifying experiences were changes on the top. CEOs could come and go without drama. Changing marketing managers meant serious trouble. It’s a bit like Indian widow-burning: He goes, you go up in flames. When Joel Ewanick came to GM, he had his old buddies Goodby, Silverstein in tow. When Joel left, the funeral pyre was assembled for Goodby.

Here come the matches.

No overcapacity problems at Volkswagen – at least not globally, and especially not in China. “Within the coming years, we will build at least ten more plants – seven of those in China,” Volkswagen chief Martin Winterkorn said today in Wolfsburg, with Automobilwoche taking notes. By 2016, Volkswagen will have capacity for more than four million units in China, that’s about half of VW’s current worldwide output.

Attentive readers of TTAC have known it since the Beijing Auto Show last year that Toyota will launch a separate brand for its “new energy” (read plug-in hybrid and EV) that are produced in China. A not quite officially announced, but de facto policy wants it that way. Now we have the brand. It’s called Ranz.

Audi showed its A3 Sedan in concept form at the 2011 Geneva Auto Show. The real thing will be shown in Audi’s most important market, at the Shanghai Auto Show, end of April. The car will be sold in early 2014 in the United States and China, Reuters says.

I am coming back to China after having been away for months. My trusted sidekick of many years, a lady surnamed Zhang, seeks my advice. “Bertel, we have car problems.” Uh-oh, I think, and I mentally do a review of my accounts. This smells expensive. As it turns out, the problem is bigger than what money can solve.

Ms. Zhang explains that her mother won the lottery. The Beijing license plate lottery.

The Buick brand, long seen as kept on life support in the U.S. to appease the Chinese, shows sudden signs of stamina. One signal: More Buicks get leased, and indicator of youthful buyers.. In March 2012, Buicks were leased by 14 percent of the new owners. At the end of February, the lease rate more than doubled to 36 percent, the Detroit News says. Buick’s average customer age also has dropped to 57 from 64 over the past five years.

Pau hana means quitting time. Better Place is leaving the island state. Officially, it’s to “focus on its core markets in Israel and Denmark,” as the Star Advertiser says. Unofficially, it’s a retreat.

The Chevrolet Volt is the world’s best-selling electric vehicle, followed by Toyota’s plug-in Prius and Nissan’s Leaf, Bloomberg says.