#CammyCorrigan

When Renault and Nissan signed an agreement to form an alliance, few expected it to work. In fact, according to the book “Shift” (or was it “Turn Around”?), Bob Lutz was quoted as saying that Renault would be better off taking the money they spent on the Nissan stake, putting it on a ship, sailing it into the middle of the ocean and sinking it. Another accurate prediction from the One of Maximum Bullsh*t. The reason that the Renault-Nissan has worked so well so far is, according to Carlos Ghosn, communication. Without communication, how can you expect your partner to understand you? Sounds simple, right? Not to Hyundai and Kia.

A few days ago, TTAC reported that Vladimir Putin issued an ultimatum to foreign car makers, “invest here or else”. 4 days later, VW announced that they were planning a new assembly line at GAZ, and more capacity at their Kaluga plant in Russia. Coincidence? Probably. But it seems like others are following suit. Pretty bloody quickly.

As Germany tumbles, so does the rest of Europe (insert your own World War II or Euro currency joke here). As France, Italy and Spain withdrew their “bangers for cash” boondoggles, so did the public’s interest in new cars. The Wall Street Journal reports that in France new car sales dropped 9.8 percent compared to last year. However, according to the French car manufacturers’ association, if you factor out the extra working day in August, sales dropped by 14 percent.

When Ford sold Aston Martin to Prodrive, Ford retained a small stake in Aston Martin. But that isn’t the only venture in which Ford and Prodrive work together. Ford Performance Vehicles (FPV) is a joint venture between Ford and Prodrive based in Melbourne Australia. And they’ve just announced a range of supercharged V8 engines. Ford? Prodrive? Australia, home of hoon-mobiles? You have our interest…

People have a lot of fears with electric cars/extended range electric cars. Will the government subsidies distort the market? Can manufacturers be able to sell them profitably? Are they really that environmentally sound? But the one which gets everyone is “range anxiety”. Will I have enough juice to get me home? It’s an issue which manufacturers are dealing with in their own ways. GM has come up with their own way of dealing with it; they’re trademarking it: With range anxiety being trademarked, someone just dreams the word, and GM’s lawyers will be on top of him, and make him surrender the illicit dream.

Ferrari is sending engineers all around to the world to investigate “thermal incidents”. Now what’s a “thermal incident” you might ask? It ain’t a mistake that happens in your long johns, that’s for sure.

It’s corporate speak for “that supercar which you lashed loads of money on may catch fire in a big way.”

The Automotive World reports that Ford has agreed to a settlement with non-union employees and retirees who incurred stock losses. The plaintiffs brought the suit against FoMoCo because they lost billions of dollars investing their 401k’s into Ford during 2000-2006; a period when Ford’s stock price plummeted. The plaintiffs argue that Ford should not have allowed them to invest huge portions of their pension plans into the company. Now Ford’s defense (which some say invokes a level of personal responsibility) is that the claimants had plenty of time and opportunity to manage their pension plans and leave if they so desired. Who’s right and who’s wrong here? I’ll leave the Bill O’Reillies and Michael Moores of this world to debate that. Or TTAC’s Best and Brightest, whoever is available sooner…

Once a new car has reached 3 years of age in the UK, it has to undergo a yearly test to make sure the key components of a car are working, and that the car is safe. It’s called an MOT. This is not the drive-it-down-to-your-friendly-gas-station-and-get-a-sticker routine. It’s pretty rigorous. It is anticipated with apprehension. Anyway, the MOT is reaching its 50th birthday after the test became mandatory in 1960. So to celebrate the MOT’s 50th anniversary, Nationwide Autocentres, a garage group that performs many MOT’s around the UK, conducted a survey (how about taking the MOT out and drinking lager until your head spins? THAT’S a good way of celebrating your birthday!). The survey consisted of the top 10 best selling cars in the UK. Then they looked at their failure rates after 3 years (some people have far too much time on their hands). Shall we have a look at the results (via the Daily Mail)? Firstly, here are the contenders:

Ford Mondeo, Ford Ka, Ford Fiesta, Ford Focus, Vauxhall Astra, Renault Megane, Vauxhall Corsa, VW Golf, Renault Clio and the BMW 3-series.

All of these cars were surveyed at their first MOT (i.e. three year old). What the surveys doesn’t take into account is how hard they’ve been driven (that pretty much equals out) and it doesen’t say what exactly has failed (it’s not a loose knob of the radio that fails the MOT, it’s usually something expensive …. T’s PASS or FAIL.)

So, who “won” this survey of the highest rate of failure at their first MOT? I’ll give you a clue. Nissan didn’t bring reliability to their alliance.

When I’m bored and have 20 minutes to burn, I always go to car manufacturers’ websites and “spec out” cars I may buy in the future. Volvos, Toyota, Hondas, Lexuses etc. Ones which would look nice on my driveway. But truth be told, nothing on the market really captures my imagination. When I look on the road, nothing really stands out. Then I made a comment to myself. “If you want to stand out on the roads you’d be better off driving a Cadillac CTS!” I chuckled at first, but then I saw some sense to it. Although I don’t like Cadillac’s styling, the CTS isn’t that bad (it grew on me), it’s not that bad a car and there’s not many on UK roads. Then I thought, why don’t I take it one step further…?

Nearly every manufacturer out there is making a cheap car for the emerging markets. Renault has the Logan, Toyota has the Etios, Tata has the Nano and Ford has the Figo. The reasoning is pretty clear. In order to grow in these markets, you need to offer something that provides a painless upgrade path from a motorcycle to something with four wheels and a roof over your head. When makers like Renault, Ford and Toyota make an offering of this nature, you get the impression that there will be a certain level of quality in the car. Maybe not up to the level more mature markets are used to, but the standards will be high. That comes with a price. Now what if I told you that a certain car maker who is globally known for producing piles of cheap junk is making their own cheap car for emerging markets? What level of quality do you think that cheap car will have?

Mad cars are what make this industry fun. The second generation Renault Megane had a polarising effect; people either hated it (me) or loved it (the others). And people did love it. Very much. Then there was the Fiat 600 Abarth, where they tweaked the engine (which was in the boot) so much, it could only stay cool with the boot lid open. When they found out the car could go faster with the boot lid open, Fiat sold the car with the boot lid permanently open! Then we come to Nissan. While quite not in the same league as the Abarth, Nissan has had some pretty wild cars. The Cube and the Juke certainly stay seared in one’s mind. And it looks like they’ll be doing it again.

A few weeks ago, I wrote about how Ford is enjoying booming sales in India for their small car, the Ford Figo. Sales of the small car purpose-built for the Indian and other emerging markets jumped 267 percent from last year. Ford is staffing up for it. Well, Ford is now going to take the plunge in India. Well, at least they’re planning on it.

Once upon a time, the Maximum one declared that bringing diesels to the United States would only be possible by the use of urea. You know, the stuff that is is the main nitrogen-containing substance in the urine of mammals. Which can also reduce the NOx from diesel exhaust. Using urea would allow diesels to meet Tier II Bin 5 standards. The Maximum one further decreed that the extra cost of this after treatment system would make diesels prohibitively expensive. (Unless the driver uses man-made urea, but let’s not even go there.) Then, he mentioned the California standards which were way tougher than Tier II Bin 5. This would effectively kill diesels in the US as they wouldn’t be 50 state compliant. Then Volkswagen introduced the TDI Jetta which was 50 state compliant. What made this extra special was that Volkswagen did it without using any urea after treatment. Something which Bob Lutz said wasn’t possible. There was a diesel hurdle that was gone. Who else could be bringing diesels to the United States?

See the picture above? It’s a lady in a white car. Nothing unusual there, right? Well, not quite. For starters, the lady is a queen. A real one.

Before I clarify the picture, let me set the scene. Spain is in the middle of economic turmoil. Its credit rating was cut to AA, it pushed through a €15b austerity plan with just one vote and is having trouble overhauling its labor market (which is considered to be one of the most inflexible in Europe). So, suffice to say, money’s too tight to mention, as someone once said. Unless …

Dearly beloved: Supposedly, capitalism is a pretty simple process. Let the market decide who lives and who dies. It worked for the ecosystems of the world for the past 6 billion years. Darwin; natural selection, survival of the fittest (or luckiest.). Trouble is, a lot of countries preach capitalism, but seldom practice it. The bailouts of banks, fiscal stimuli and other such market distorting activities don’t really help anyone in the long run. It has long been argued that there are huge overcapacity issues around the world, and something, someone has to give. Give up the ghost, preferably. The collapse of GM and Chrysler would have addressed these issues, but this post isn’t about the bailouts of GM and Chrysler and their validity. I want to know who’s next to die.