Category Archives: news analysis

Food Fight over Ethanol as Special Interest Groups Trade Charges

Two special interest groups are sparing in public over the cost implications of a long-standing federal energy policy that mandates the use of ethanol and ever increasing amounts of bio-fuels in an attempt to free the United States from importing oil sold by terrorist supporting nations. In 2012 about 9% of all transportation fuel used will be from so-called renewable sources. Continue reading

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Chevrolet Volt Leads New Owner Satisfaction Report. Again

For the second straight year, virtually all owners of the Chevrolet Volt hybrid said they would buy one again. Fully 92% of respondents who own GM’s Volt – much decried by anti-government extremists – said they would definitely buy it again. This earned the $40,000 four-seat car the distinction of being the top-scoring model in the latest Consumer Reports Owner Satisfaction Survey. Continue reading

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Lexus and Mini Lead in New U.S. Sales Satisfaction Survey

Whether it is possible to draw meaningful conclusions from closely ranked sales satisfaction numbers remains an open question among industry marketing executives and observers. Power maintains, not without considerable economic self-interest, that its study is a “comprehensive analysis” of the new-vehicle purchase experience. Continue reading

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GM to Increase Electric Vehicle Development in China

General Motors is increasing the development of electrified vehicles in China, the company’s senior technology leader said during a speech at the FISITA 2012 World Automotive Congress in Beijing. In September 2011, GM China opened the Advanced Materials Lab in Shanghai. The facility, which is part of the GM China’s sprawling Advanced Technical Center, is engaged in research on battery technology and lightweight materials.

This is the result of a deal between SAIC Motor Corporation and GM for the co-development of a new electric vehicle architecture in China. Communist Chinese industrial policy requires local partners as a condition of access to the market. Continue reading

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GM Buys Overseas Finance Business from Ally for $4.2 Billion

GM said that with addition of Ally’s international operations, GM Financial will be able to provide credit for customers and dealers in markets that make up about 80% of GM’s global sales. In essence, GM is recreating GMAC. Continue reading

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Toyota Recalls 150,000 Tacoma Pickups for Rust and Corrosion

Toyota Motor Sales, U.S.A. is recalling 150,000 Tacoma pickup trucks from the 2011 to 2004 model years because corrosion can suddenly jettison the spare tire from under the bed. While U.S. Tacoma sales for those years are much higher, only vehicles originally sold or currently registered in 20 cold climate states and the District of Columbia will be inspected and have the spare tire carrier assembly replaced if need be. Critics of such limited actions maintain they do not fix all the potentially unsafe vehicles. Automakers use them to cut down on the costs of a full recall. Continue reading

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Mazda Atenza on Sale in Japan, Comes to U.S. Next Year as Mazda6

The Mazda6 is due in the U.S. next year where the family car market is much larger and much more competitive. Year-to-date Mazda sold 31,000 of the older 6 sedan in a segment dominated by the newly revised Toyota Camry, Honda Accord models, both of which are now selling almost 30,000 units a month and the Nissan Altima at 26,000 a month. Two Japanese variations of the new Mazda6 present additional sales opportunities for the U.S. subsidiary. Continue reading

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EU Car Sales Continue to Evaporate in October – Off -5%

The economic decline of the European Union continued in October as sales of new passenger cars contracted by 5% to 959,412 compared to October of 2011. It was the thirteenth straight month of sales declines across the economically embattled Eurozone as the trade bloc comprised of 27 bickering nations is unable to move out of the economic doldrums. Continue reading

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Bailout Benefits Multiply as Chrysler adds 1,250 Detroit Area Jobs

Chrysler Group will invest nearly $240 million to increase engine capacity and add about 1,250 new jobs at several southeastern Michigan plants. In the latest example of the ongoing wealth creation, that was a direct result of the Obama Administration’s forced bankruptcy reorganization of Chrysler and General Motors, CEO Sergio Marchionne said, “All of these investments are the direct result of a lot of people who have battled courageously to bring Chrysler back to a state of growth. Continue reading

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Ford China Sales Grow in October as Focus Dominates Results

Ford Motor and its communist government dictated partners set a sales record during October in China as the firms sold 60,518 cars and light trucks. Market leader General Motors sold more than 250,000 vehicles during the same period in the world’s largest car market. Continue reading

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Spark Plug-in EV to Debut in La-La Land at Los Angeles Show

Chevrolet will unveil the electric version of the Spark minicar at the Los Angeles Auto Show later this month. No technical details for the EV were released. The South Korean-made Spark EV will be sold in limited quantities in some U.S. and global markets, starting in 2013 in California. Continue reading

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54.5 in 2025 Subject of Critical CAR CAFE Seminar

The Center for Automotive Research will examine the implications for product development of the 54.5 mpg CAFE fuel mandate that is now a federal regulation. Currently, estimates for the cost of compliance range from zero to $10,000 per vehicle for what is a difficult engineering task that has become – once again and as always – an ideological battleground, with posturing from automakers, regulators and pressure groups. The ability of product development engineers and their auto companies to meet the new standards and/or garner credits to offset some vehicle shortfalls will determine the type of vehicle you can buy, and how much you will pay for it. With safety regulations already on the books potentially adding thousands to the cost of a new vehicle, the social implications for automobility are serious; Moreover, if the implementation of CAFE regulations goes badly it could damage one of the U.S.’s best wealth and job creating industries at a time when growth is desperately needed. Continue reading

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Mazda to Make a Tiny Toyota in Mexico for Sale in North America

Mazda Motor Corporation today announced that a plant in Mexico, currently under construction, would produce a Toyota-brand vehicle for sale in North America. The sub-compact will be based on the new Mazda2, and will enter production during the summer of 2015. Toyota Motor Corporation is requesting 50,000 units per year for a Yaris-sized car that will be sold through Toyota dealerships. Continue reading

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Green Talk from EV Makers Ignores Key Buyer Concern – Cost

While existing buyers of electric vehicles are true EV believers, the vast majority of car shoppers are not. In a new study, nearly half of current EV buyers claim the best benefit of their ac/dc wheels is lower emissions when compared with emissions from gasoline- or diesel-powered vehicles, and it’s not clear if they know how their electricity is generated. However, when you get past this “puddle” of EV buyers – they don’t even form a “pool” since they comprise only about 2.5 % of the U.S. new vehicle market of 14 million – and that’s if you include hybrids as EVs; pure EVs have less than a 1% share – other people need to be brought into the clan. This assumes auto manufacturers are interested in recouping the billions invested so far in electric modes of transportation, prompted almost entirely by government regulations. Continue reading

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Qorus, New Chinese Brand Coming to China, Europe, Mid-East

China-based Qoros Auto Company will debut a new compact or C-class sedan at next year’s Geneva Motor Show as part of what it claims will be a series of vehicles aimed at buyers in China, Europe and the Middle East. This business plan, of course is easily done by press release. However, the design, development, manufacturing and wholesaling of actual cars and light trucks sometimes is more difficult, occasionally thwarting even the best of established automakers. Continue reading

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