Category Archives: news analysis

President Obama outlines Energy Independence Plan, Touting Alternative Fuels, “Safe” Nuclear Power, 33% cut in Oil Imports

The President ordered that 100% of federal fleet purchases by 2015 will be alternative fuel, hybrid or electric vehicles – in a taxpayer-fueled bonanza for some automakers. Continue reading

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Steelworkers follow UAW and Ratify Contract with Dana

The contract has implications for the United Autoworkers Union as it enters negotiations this summer with automakers since the Dana contract reduces but does not eliminate the gap in the existing two-tier wage structure with Goodyear.
The UAW is fiercely divided over the two-tier issue, which allows new hires at $12 an hour, while veterans get $28. UAW president Bob King insists that reduced wages for new workers are necessary, while opposition groups within the union are calling for its end.
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New U.S. Segment – Compressed Natural Gas Taxis?

Taxis running on compressed natural gas have been in use for decades in Japan’s cities. They are clean, quiet and to the surprise of visiting New Yorkers – meticulously maintained. Now there is a mini-movement of sorts underway in the U.S. as taxpayer subsidies and rising gasoline prices are increasing the demand for conversions of conventional gasoline engines to run on compressed natural gas. CNG is a fuel that has been in use in the U.S. for decades as well, but mostly in industrial applications. Continue reading

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EU Proposes Banning Cars from Cities. Automakers Protest

The European Commission today adopted 40 initiatives that it claims will increase mobility, dramatically reduce Europe’s dependence on imported oil and cut carbon emissions from transportation by 60% by 2050. It also requires the investment of €1.5 trillion or $2.1 trillion across the EU. Continue reading

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Japan Earthquake Causes Loss of 320,000 Vehicles. More Plant Shutdowns on Way and the Worst is yet to Come

“The Japan disaster has had a profound effect on the automotive industry,” said IHS Automotive Director Michael Robinet, noting that 13% of the global automotive industry is shut down and companies have lost 320,000 units of production since the earthquake, tsunami and power disruptions. Continue reading

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March New Vehicle Retail Sales Running at 10.9 Million SAAR

March new-vehicle sales are showing stability through the first three weeks of the month, continuing a trend of monthly double-digit year-over-year increases, according to the latest data.

New vehicle retail sales are projected to come in at 991,900 units, which represent a seasonally adjusted annualized rate (SAAR) of 10.9 million units, according to J.D. Power and Associates, which gathers transaction data from more than 8,900 franchise dealers throughout the United States. Continue reading

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Toyota Postpones Prius V Japan Launch; With Honda Expects U.S. Plant Shutdowns from Earthquake Parts Shortages

At the same time Toyota was telling workers in U.S. plants to expect shutdowns because of parts shortages resulting from Japan’s triple disasters of earthquake, tsunami, and nuclear plant meltdowns. Toyota said it did not know at this time when, where or how long the production disruptions would last, but it was likely that some would happen. Continue reading

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New Ford Ranger Debuts in Bangkok – U.S. Bound?

Ford is billing the compact pickup truck as a global entry – it will be sold throughout Europe, Asia and South America – but remains mute if the Ranger will reappear in the United States, the world’s largest pickup truck market. Continue reading

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Opel Shuts German, Spanish plants for Japanese Parts Shortage; Management Shifts as Stracke Returns as Opel CEO

There is a certain amount of friction between Opel and Chevrolet factions inside GM as both brands compete for the same customers, and Chevrolet increasingly turns to GM’s Korean subsidiary Daewoo as a source for small cars that Opel once designed exclusively. Opel’s future is clearly as a regional European brand in a market where it is struggling. Continue reading

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Is Coca-Cola Part of Japan’s Nuclear Power Problem?

The Coca-Cola statement on the Japanese triple crisis of earthquake, tsunami and nuclear power disaster is straightforward. Coca-Cola sends condolences, pledges $7.3 million in cash and products, and is running TV and radio ads to encourage energy conservation. What’s missing … Continue reading

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Sales of Fuel Efficient 4-Cylinder Engines Double at Chevrolet

There’s no better example of how rising fuel prices have changed the auto industry than the ongoing shift in demand for more efficient engines. The trend led by customer demand is also reinforced strongly by the first government increase in Corporate Average Fuel Economy in decades, which finally prompted reluctant auto executives to invest in technologies that produce significant decreases in the amount of fuel needed per mile traveled. Continue reading

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U.S. Bound Infiniti Models Damaged in Japanese Port; Nissan to Reopen Some Japanese Plants. V6 Engines a Problem

Nissan says that about 1,300 Infiniti vehicles were damaged in port in Japan due to the earthquake and tsunami. However, this equates to a few days’ supply for the luxury brand, which is heavily dependent on Japanese imports for most of its premium vehicles. Continue reading

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How Long Will U.S. Japanese Buyers Wait for Earthquake Delayed Vehicles and Where Will They Go if They Defect?

While U.S. sales executives at Japanese companies are taking an optimistic “wait and see” attitude about the effects on sales of Japanese brands of Japan’s triple tragedies – earthquakes, tsunamis, nuclear meltdowns – they also acknowledge that since Japanese imports … Continue reading

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NRC Sends more Experts on Nuclear Reactors to Japan

In what is a politically sensitive area in Japan, as a result of the U.S.’s deployment of nuclear weapons on Hiroshima, home of Mazda, and Nagasaki that ended the war in 1945, NRC said that “only if asked” would it be part of the Japanese government’s decision making process” on the reactors. Continue reading

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Renault Spy Case Executive Firings Wrong Prosecutor Says. French Government Investigations Continue into the Fraud

The board of directors of Renault met today in an unscheduled meeting after a French prosecutor said earlier that three executives dismissed by Renault are innocent of claims by Renault that industrial spying was going on and that the executives were depositing payments into bank accounts in Switzerland and Liechtenstein. Continue reading

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