While America Slept. Friday, January 9, 2009

by Bertel Schmitt

Published: January 9th, 2009

while america slept friday january 9 2009

An 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. WAS is being filed from Beijing this week, from Berlin next week.

Volkswagen makes its million in China: When Winfried Vahland, VW’s honcho in China, stuck to his guns and a 1m sales target months ago, people rolled their eyes. Well, he made it, Automobilwoche (sub) reports. VW sold 844,491 units in China, Audi contributed119,598, newcomer Skoda sold 59,284 – a total of 1,023,373 units. Growth for 2008 was 12.5 percent, above market trend. With this result, and the slight plus in the home market, VW could be the overall winner for 2008.

Audi sells a million worldwide: Audi defied gravity, motor malaise, and assorted other ailments, and closed out the year 2008 with a plus of 4.1 percent worldwide, for a total of 1,003,400 four-ringed units sold throughout the world. In Asia/Pacific, Audi sold 15.6 percent more for the year. Outlook for 2009 is even better, because in the disastrous December 2008, Audi sold 17.4 percent more than in the same month a year before.

SAIC lets Ssangyong fail: Ssangyong Motor Co. has filed for court receivership after if had failed to secure necessary funds to continue operations, the Nikkei (sub) reports. Ssangyong Motor is 51.3 percent owned by China’s SAIC. They only wanted to help if the unions would make significant concessions. Now they may have to. Ssangyong Motor’s board Friday called on management and the company’s union to closely cooperate on voluntary retirement, paid leave, wage cuts and a halt to certain benefits. Commenting on the filing, Ssangyong union spokesman Choi Hyung-gil said: “The decision is very disappointing. We will discuss how to react.”

Super rice racer: Nissan said that its limited-production sports car, the GT-R SpecV, which offers enhanced performance and modifications from the original model, will go on sale Feb. 2, the Nikkei (sub) reports. The $172K model will be targeted at drivers “who desire race-car-level performance in a street-legal vehicle,” according to Nissan. It is the highest-priced vehicle sold in the domestic market by a major Japanese automaker. Nissan will only sell the vehicle at seven dealerships nationwide, targeting monthly sales of 10 units.

Nissan cuts UK workforce: Nissan will eliminate 1.2K U.K. factory jobs, bringing its worldwide cutbacks to roughly 7.7K, the Nikkei (sub) writes. Nissan will not renew contracts with 400 nonpermanent employees at the end of this month, and is expected to shed 800 permanent jobs through an early retirement program.

Japan imports less: The strong Yen notwithstanding, Japan’s auto imports plunged 17.3 percent to a 15-year low of 219,231 vehicles in 2008, reports the Nikkei (sub.) This is the first decline in two years.

Family business: Executive Vice President Akio Toyoda will be Toyota’s President in June. This is the first time in 14 years that a member of the automaker’s founding family will hold the top job, the Nikkei (sub) writes. “The automaker’s decision to proceed with the appointment of founder Kiichiro Toyoda’s grandson to president is seen as an attempt to heighten a sense of crisis among group employees. The firm also aims to show those inside and outside the company that it intends to take such basic steps as cost reductions more seriously,” says the Nikkei.

China‘s car market alive and kicking: China’s passenger car sales rose 8.1 percent in December 2008 after seeing a big fall in November, Gasgoo reports, citing an announcement from the China Passenger Car Association. Full-year sales of passenger vehicles in China, excluding exports, rose 7.4 percent to 6.43m units in 2008. A significant fall from the double-digit growth rates seen in recent years, but other markets would trade-in their firstborns for these numbers.

China’s luxury segment unfazed: Mercedes-Benz China Ltd said that sales of their cars in China soared almost 45 percent in 2008 to 3,870 units, Gasgoo writes. China’s luxury car segment grew at a rate of 17 percent on average in 2008, while the market as a whole was rising by less than 10 percent.

Chinese hybrid: China’s SAIC will launch its first own-brand hybrid passenger car in 2010, Gasgoo writes. The vehicle will use a lithium-ion battery and cut fuel consumption by 20%.

BMW gets black eye: For the first time in 15 years, Germany’s BMW is closing out the year with a reduction in global sales. They sold 4.7 percent less Bimmers, MINIs and Rollers than in the prior year, Automobilwoche (sub) reports. It might get worse in 2009. In December, they sold 26.4 percent less.

GM Europe loses in Europe: General Motors Europe sold 140K less units in 2008 for a total of 2.04M. Opel/Vauxhall lost 10.5 percent for a total of 1.46M units sold, Autohaus writes.

Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments

Join the conversation

2 of 3 comments

Strippo on Jan 09, 2009
For the first time in 15 years, Germany’s BMW is closing out the year with a reduction in global sales. They sold 4.7 percent less Bimmers, MINIs and Rollers than in the prior year, Automobilwoche (sub) reports. It might get worse in 2009. In December, they sold 26.4 percent less. Since value for the dollar is paramount now, and since BMW doesn't build vehicles that are meant to be driven for more than four years without: a) losing their value as status symbols, and; b) becoming insatiable money pits, I'd say a bad 2009 for BMW is a pretty safe bet. Lexus may well have a "bad" year, too, but it's all relative.

Like Reply
No_slushbox on Jan 09, 2009

The South Koreans let their smallest, worst automaker, that just happens to be partially foreign owned, fail. Maybe we can learn something from them.

Like Reply

Recent Comments

Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.