EU-DIGEST

Labels: Automotive Industry, Belgium, EU, GM, Layoffs

“No decision had been taken concerning the production location of the next Clio in 2013. I confirmed to the French President that we will produce the Clio 4 in Flins, with a double sourcing in Bursa, Turkey. The future of the Flins plant is guaranteed and employment will be maintained at term.”

Labels: Alternative fuels, Automotive Industry, Electric Car, EU, Renault

"Europe is five years — I don't want to say ahead of us, but every car you see" at big European auto shows trumpets low greenhouse-gas emissions, often more boldly than horsepower or price, says John Krafcik, CEO of Hyundai Moters. But perhaps no company is so committed to a salute to Europe as Ford Motor. For decades at its European headquarters on Henry Ford Street in Cologne, Ford has designed and developed models that have been rated highly by critics, valued by buyers, embraced by driving enthusiasts — and not sold in the U.S.

Ford hopes now to import some of that panache. At December's Los Angeles auto show it displayed the 2011 Fiesta, a subcompact sold in Europe and bound for the U.S. In Detroit Monday, it will unveil the 2012 Focus, due in a year in the U.S. It replaces the current U.S. model with the true "European Focus" driving enthusiasts have craved for years.

Labels: Automotive Industry, EU

Bidders in Sweden, Luxembourg and the Netherlands are making last-ditch proposals - but have yet to submit anything official to GM.

Labels: Automotive Industry, EU, Saab

the electric Karma

For the complete report from the MotorAuthority click on this link

Fisker Karma Plug-In Hybrid Launch Delayed Until Q3 2010 - by Viknesh Vijayenthiran

Originally slated to on sale in November of this year, the all-new Fisker Karma plug-in hybrid luxury sedan will now go on sale in the third quarter of 2010. Significant investments from major venture capital firms, a half-billion dollar conditional loan from the U.S. government and the establishment of a global network of independent retailers highlight Fisker’s rapid growth.

Since its founding in August 2007 the company has developed a new plug-in hybrid car, appointed a network of 42 independent U.S. retailers and three European distributors, been awarded $528.7 million in loans from the U.S. Department of Energy, and announced the development of a second, more affordable model codenamed Project Nina. As for the Karma, the luxury plug-in hybrid sedan is expected to keep its sticker price of $87,900 when it goes on sale late next year. For this money, customers will receive one of the most fuel efficient sedans on the market, with claims of up to 100 mpg in fuel economy and a healthy 408 horsepower and a monstrous 959 pound-feet of torque on tap.

Labels: Automotive Industry, Electric Car, Kama, US

If nothing derails Alfa Romeo's reentry into the U.S. market, it will bring two small cars, the highly regarded MiTo three-door hatchback and a five-door hatch that will be introduced at the Geneva Auto Show next March. According to a Fiat Group* announcement yesterday , the five-door, based on the MiTo platform, has been named Giulietta. The Giulietta, which means "little Julia" in Italian and pronounced Julie-etta, is a storied name in Alfa Romeo history, the first popularly-priced sedan in Alfa history. Debuting in 1954, it spawned other versions, including a favorite of popularly-priced Italian sports car enthusiasts, the Alfa Romeo Giulietta Spider, and a delightful coupe as well.

Labels: Alfa Romeo, Automotive Industry, EU, Italy

German officials denied Monday that they were trying to outbid other European nations in offering money to General Motors Co. to save local jobs.
GM's European executives are meeting with ministers from Germany, Britain, Belgium, Spain and Poland as well as European Union commissioners in Brussels to discuss how the company plans to cut capacity by 20 to 25 percent -- and likely shed thousands of jobs. Germany's deputy economy minister Jochen Homann said Germany "will not participate in a subsidy race" as other countries hint that they are willing to help the company pay the costs of restructuring the Adam Opel GmbH and Vauxhall units.

Labels: Automotive Industry, Economy, EU, Germany, GM, Opel

Saab Automobile AB dealers in the U.S. are running out of new cars after the Swedish carmaker cut production to conserve cash and prepare for its first new model in seven years. “We have about 10 Saabs left, and they won’t last long,” said Ivan Goodwin, sales manager at Jim Ellis Saab in Atlanta. “It’s going to be a big problem, but there is nothing we can do about it.”

Saab, which General Motors Co. is selling to an investor group led by Swedish sports-car maker Koenigsegg Automotive AB, has slowed assembly to retool its Swedish factory to build the new 9-5 sedan starting next year, spokesman Eric Geers said. The company said last week it will eliminate more than a third of its U.S. dealers. Those that have received notice that they will remain open say they may be limited by a lack of inventory.

Labels: Automotive Industry, Economy, EU

Long stuck at a red light in India, French automaker Renault has fresh plans to conquer the country's explosively growing car market with a revitalized local partnership deal and a low-cost vehicle. Renault and its Japanese partner Nissan are set to join in 2012 the crowd of manufacturers producing low-cost cars for India in a bid to challenge head-on the Tata Nano, the world's cheapest automobile. "I don?t want Renault and Nissan to be makers of very pretty cars people dream about but can't afford," Carlos Ghosn, who runs the Franco-Japanese car-making alliance Renault Nissan, said in New Delhi last week.

Labels: Automotive Industry, EU, France, India

The small German town of Ruesselheim has not been happy with General Motors. Since GM's announcement that it would restructure German subsidiary Opel itself, rather than sell it off, Ruesselheim has been home to angry protesters calling GM's behavior "totally unacceptable" and "the ugly face of turbo-capitalism." In a move that may appease some of that anger, a GM spokesman announced Saturday it will move its European headquarters from the Swiss capital Zurich to Ruesselheim, Opel's current home. All but the headquarters of the Chevrolet brand will be included in the transfer, which should be completed before the end of the year, the spokesman said.

Labels: Automotive Industry, EU, Germany, GM, Opel

A senior German government official told General Motors Co. executives Wednesday that the U.S. automaker will have to cover the cost of restructuring its troubled German carmaker Adam Opel GmbH. Economy Minister Rainer Bruederle said he reiterated the position outlined by Chancellor Angela Merkel at a meeting in Berlin with Nick Reilly, GM's head of international operations, and John Smith, the chief negotiator in the Opel bid talks. Merkel told the lower house of Parliament on Tuesday that GM would have to rely on its own resources to restructure Opel. Mrs.Merkel said: "This solution can only work if GM takes over the lion's share of the restructuring costs, which also means that it has to pay back the bridging loan."

Note EU-Digest: If GM management continues dragging their feet and keeps coming back on its word, the next step should be for Germany to consider nationalizing Opel and continue with the original plan whereby Opel would be sold to Canadian and Russian interests to guarantee continued operations of Opel and German jobs.

Labels: Automotive Industry, EU, Germany, GM, Opel, US

Ford Motor Co. named the parent company of China's Geely Automobile Holdings as the preferred bidder for its Volvo car unit this week, paving the way for China's second possible acquisition of a major overseas automaker this year. A dozen China-centered auto deals have been proposed this year, underlining the growing international clout of the world's largest and strongest car market.

Click on this link for some questions and answers about how the shake-up in the global car market is playing out, and where it may be leading the auto industry.

Labels: Automotive Industry, China, Economy

Ford Returns to U.S. Minivan Market by Adapting Car From Europe - by Keith Naughton

Ford Motor Co. will start selling a new small U.S. minivan in late 2011, five years after exiting the market for those vehicles, by adapting a model from Europe. The Grand C-Max, based on the Focus compact car, will seat seven and have minivan-style sliding rear doors, said Derrick Kuzak, Ford’s product development chief. Dearborn, Michigan- based Ford unveiled the auto today at the Frankfurt Motor Show.

Ford is targeting baby boomers’ offspring, known as Millennials or Generation Y, as they enter the child-rearing years, Kuzak said. The wedge-shaped design is a departure from the Windstar and Freestar minivans that were outsold more than 4-to-1 in 2006, their last year, by Chrysler Group LLC’s Dodge Caravan.

Labels: Automotive Industry, EU, Ford, US

A glance at Europe's 'cash-for-clunkers' programs

The popular "cash-for-clunkers" program that has encouraged consumers in Europe and the U.S. to trade in their old cars for newer and more efficient models was born in December 2008 when French President Nicolas Sarkozy unveiled a euro26 billion ($37.36 billion) stimulus plan to help the country ward off a recession.To date, 11 countries in Europe offer similar plans.*Germany offers euro2,500 to buyers of new or almost new cars who own cars that are nine years or older. * France offers euro1,000 to scrap an older car that's at least 10 years old. * Italy offers euro1,500 for a car and euro2,500 for a light commercial vehicle for buyers who agree to scrap a car that is at least 10 years old.*Spain offers euro2,000 on a purchase price of up to euro30,000; old car must be at least 10 years old. * Portugal offers euro1,250 for scrapping a car that is 8 to 12 years old, or euro1,500 for a car that is older than 12 years. * The Netherlands pays between euro750 to euro1,750 to scrap a car that is 9, 13 or 19-years-old. * Austria offers euro1,500; car must be at least 12 years old. * Romania offers euro900 to scrap a car that is at least 10 years old but limited the program to just 60,000 units. * Slovakia offers euro1,100 toward a purchase price of up to euro18,800. * Serbia offers euro1,000 on any new locally built Fiat Punto if a buyer trades in a 9-year-old car.

Labels: Automotive Industry, EU

Berlin calls for higher bids for GM Europe - by Sarah Arnott

Both suitors in the running for GM Europe will have to up their bids to win the support of the German government, economy minister Karl-Theodor zu Guttenberg said yesterday. A GM board meeting in the US this week is a key step in the battle for the group’s European arm, which includes Opel in Germany and Vauxhall in the UK. The parent company is understood to prefer the offer from RHJ International, a private equity group, to that from preferred bidder, Canadian car parts maker Magna, backed by Russia’s state-owned Sberbank. After its initial lead, the Magna deal has struggled because of disagreements over intellectual property issues and plans to seel into the Russian market. But German states and federal government - which will stump up cash to lubricate the deal and have a strong voice in the talks – lean towards Magna’s plan as less likely to cost local jobs.

Labels: Automotive Industry, EU, Germany, Opel

Britain-Fiat lands monster fleet sale

Fiat UK is to supply a world-famous driving school with a fleet of Fiat 500's over the next four years - 14 000 of them! - in the middle of the biggest slump in car sales history. Fiat managing director Andrew Humberstone said Fiat was been keen to target a youthful customer profile, starting with BSM's learner drivers, about 130 000 of whom sign up each year. He said: "We know that about 70 percent of all new drivers buy the brand of car they learned to drive in, so our deal with BSM includes a special offer for learner drivers who want to buy a new Fiat once they've passed their test.

Labels: Automotive Industry, EU, Fiat

Volkswagen has set the stage to buy out Porsche, ready to acquire the renowned sports-car company in two stages beginning this week. The price tag: $11.28 billion. The reported deal would require the deposing of Wendelin Wiedeking, Porsche CEO since 1993, who is said to be negotiating a severance package of more than $140 million. Wiedeking, who opposes the VW merger proposal, denies that any such deal is pending. Wiedeking is largely credited with turning Porsche from a struggling, nearly bankrupt automaker into a highly profitable automotive powerhouse, but he also is blamed for Porsche amassing a mountain of debt last year as it attempted an ill-advised takeover of VW.

Labels: Automotive Industry, EU, Germany, Porsche, VW

GM Europe sales slump amid uncertainty

Sales of General Motors cars slumped in Europe during June, even as the broader auto market improved for the first time in 14 months, data released on Wednesday showed. Europe-wide, auto sales rose 2% in June, the ACEA trade association reported, as incentives to scrap old cars and buy new ones have spurred demand. Car sales in Germany jumped 40% and Italian sales rose 12%, even as those two export-oriented economies are continuing to be mired in recession.

Labels: Automotive Industry, EU, GM

Beijing (AFP)BAIC plans Opel plant in China, Europe job cuts

BAIC plans Opel plant in China, Europe job cuts

Chinese auto maker BAIC, which is offering 922 million dollars for a majority stake in Opel, plans to build a plant in China and cut jobs in Europe if its bid succeeds, a report said. In a non-binding offer submitted last week for the German-based unit of General Motors, BAIC proposed to spend two billion dollars on what would become Opel's first factory in China, according to the Financial Times. The plant would come online in 2012 and make Opel models specifically geared towards the China market. In addition, BAIC would use Opel's German plants to export to China, the London-based newspaper said.

The Chinese auto maker also planned to shut down General Motors' Antwerp plant in Belgium and cut Opel's workforce across Europe, the report said, citing unnamed sources close to the matter.

Labels: Automotive Industry, China, EU, Germany, Opel

German Economy Minister says Opel deal still hangs in balance - by Sarabjit Heera

According to the German newspaper Westdeutsche Allgemeine Zeitung (WAZ), the Economy Minister of the country has said that the decision pertaining to finalizing a bid for the German carmaker Opel still hangs in balance. Going by a Monday statement in the paper, Karl-Theodor zu Guttenberg has said: “I acknowledge Magna's ambitious goal, wanting to sign a contract by mid July. However, there still seem to be some unanswered questions.” Guttenberg added that as per the phase at present, “everyone is free to place offers.” Guttenberg’s comments apparently cam in response to a statement by the General Motors’ Europe President Carl-Peter Forster, who informed another German newspaper that, very soon, he expects selling Opel to the Canadian auto parts supplier Magna.

Labels: Automotive Industry, EU, Germany, Opel

Toyota leases 150 plug-in vehicles in Europe and Obama plugs his Ford hybrid

Toyota plans to lease 150 plug-in electric hybrid vehicles to fleet customers in Europe this year, and a similar program in North America could follow. The cars can be driven for short distances on just electric power before a Prius-like full gasoline/electric hybrid system takes over, Toyota says.

Labels: Alternative Energy, Automotive Industry, EU, Toyota

China Bans Some Renault Models, Citing Safety Issues - by Laurence Frost and Steve Rothwell

China, the world’s biggest auto market, banned imports of some models of Renault SA vehicles, saying they don’t meet national safety standards. The French company said the vehicles in question were damaged in transit. Cars exported to China by the French company pose “serious potential safety risks,” the General Administration of Quality Supervision, Inspection and Quarantine said today. It said Renault should examine its quality-control measures and take steps to ensure the safety of its products. The Laguna, Scenic and Megane models are affected by the ban, which came into the effect on June 4, the statement said. Renault spokeswoman Gita Roux said China’s concerns arose from problems with the transport and storage of a limited number of cars and that there are no issues connected to manufacturing.

Labels: Automotive Industry, China, Renault

Germany blames U.S. for scuttling deal on Opel

Reuters reported that the fate of German car maker Opel hung in the balance on Thursday after marathon talks on shielding it from the looming bankruptcy of its U.S. parent General Motors ended without a deal. German ministers told reporters after more than 12 hours of negotiations in Berlin that a bidding battle for Opel had narrowed to a two-way race between Italian car maker Fiat and Canadian auto parts company Magna.

The Germans blamed GM and the U.S. Treasury for the failure to agree a plan to tide Opel over until a deal with one of those suitors can be sealed. "We have made demands on the U.S. Treasury and expect answers by Friday and we will need these answers in order to agree a plan," Economy Minister Karl-Theodor zu Guttenberg said.

Finance Minister Peer Steinbrueck said he was hopeful a deal could be reached on Friday that would save Opel. But he spoke of "surprises and disappointment" with the U.S. negotiators, saying GM had shocked participants by announcing it needed 300 million euros in additional short-term cash. Roland Koch, premier of the state of Hesse where Opel is based, added: "I think we can say clearly that a big part of the problems tonight came from the combination of new figures from General Motors and a not very helpful negotiating stance from the Americans, from the U.S. Treasury." Guttenberg said insolvency remained an option for Opel if U.S. negotiators refused to budge.

Labels: Automotive Industry, EU, Germany, GM, Opel, US

Germany Seeks to Wean Opel From GM After 80 Years - by Andreas Cremer and Tony Czuczka

The German government aims to wean General Motors Corp.’s Opel unit from its U.S. parent after an 80-year association, insulating the European carmaker from a GM bankruptcy while buying time for negotiations with investors. Talks on securing Opel’s future hosted by Chancellor Angela Merkel in Berlin later today won’t “decide everything” and may not result in a preferred bidder, government spokesman Thomas Steg said in Berlin. Efforts will focus on forging an agreement with U.S. and GM officials to place Opel in a trust that would receive 1.5 billion euros ($2.1 billion) in loans, Steg said. “Naturally it’s attractive for the investors if Opel is kept alive,” Peter Bosch, an auto analyst at Oliver Wyman Consulting in Munich, said by phone today. “And it’s attractive for the government because it allows time for negotiations that can be conducted in peace to get the best result for Opel.”

Labels: Automotive Industry, EU, Germany, Opel

Opel returning to European Ownership - Magna, Sberbank team up in Opel bidd

Canadian auto parts maker Magna International Inc. says it is joining forces with Russia's biggest lender, Sberbank, in a bid to take a majority stake in General Motors Corp.'s Opel unit.In a statement released late Friday, Aurora, Ontario-based Magna for the first time offered details of its bid, one of three from companies interested in Opel. Magna and Sberbank propose to invest a total of euro700 million ($977 million) in Opel, based in Ruesselsheim, Germany. An unspecified portion of that would be guaranteed by the German government, the statement said. A possible deal would leave Magna with 20 percent of Opel and state-controlled Sberbank with 35 percent, while parent GM would retain 35 percent and 10 percent would go to Opel employees, it added.

Labels: Automotive Industry, EU, Opel

Not Your Father's Diesel - 50% of European Cars are diesel - Hannah Elliot

For now, Europe leads the world in diesel prevalence. About 50% of the vehicles in Europe have diesel engines, according to the European Automobile Manufacturers Association. Belgium, Luxembourg and France are the most diesel-friendly countries in Europe these days, with a near-80% penetration. Diesels in Europe registered their highest levels in Europe in 2007, up 40% over their level in 1990. Part of the reason for that rapid growth is fuel-tax differentiation that favored diesel fuel. Europeans have also solidified diesel's place in their driving culture at large.Engines that run on diesel fuel use combustion to produce power, but they lack spark plugs, compress air at twice the compression ratio as a gas engine and send fuel directly into the combustion chamber, rather than using a throttle to regulate airflow.

Labels: Automotive Industry

As Detroit Crumbles, China Emerges as Auto Epicenter - by Kendra Marr

America's auto titans are dismantling their global empires. But across the Pacific, it's as if the global economic forces that have pummeled Detroit never struck. Chinese auto sales are up, and this year China is projected to displace Japan as the world's largest car producer. Buying up iconic brands such as Hummer or Saturn could supply Chinese automakers with the technological expertise to help them leapfrog past long-established competitors, said Kelly Sims Gallagher, a lecturer at Harvard University's Kennedy School of Government, who wrote a book on Chinese automakers. "That's where Chinese firms are weakest," she said. "They have world-class business and manufacturing capabilities now. What they still lack is technological know-how, systems integration, being able to design new vehicles from scratch and get them to a manufacturing line."

China still suffers from its reputation of being a copycat manufacturer. An acquisition could lend clout to some of the nation's 100 car companies that are largely unknown outside their home country.

Labels: Automotive Industry, China

The Think electric City Car from Norway

For the complete report from BusinessGreen.com click on this link

Norwegian Think gets green light for EU-wide electric car sales - by James Murray

Norwegian electric car firm Think Global is poised to accelerate the roll out of its TH!NK City electric car across Europe, after yesterday becoming the first electric car manufacturer to have its car certified as highway safe across the whole of the EU. The company was awarded a so-called homologation certificate from Dutch certification authority RDW at a ceremony in The Hague, where the Dutch government is working on plans to roll out 500 of the Th!NK City car from this summer. Think said the new certification would make it easier to enter new European markets, allowing it to operate without having to apply for fresh safety certification in each new market.In order to obtain the certificate, the TH!NK City was tested against 40 different directives, covering areas such as crash, braking, lighting and emissions performance. The certification process also involved an audit of the company's engineering and production process, designed to ensure each individual vehicle meets the same requirements.

TH!NK city is an environmental vehicle, emission free and 95 percent recyclable. It reaches a top speed of 100 km (65 miles) per hour and can drive up to 180 km (110 miles) on a single charge. TH!NK city meets all European and US federal motor vehicle safety requirements. At the Geneva Motorshow earlier this year, Think announced a strategic partnership with energy giant General Electric, also an investor in Think. At the Show, Think unveiled its future car, the TH!NK Ox, the first 4/5-seater fully electric vehicle which is slated to begin production in 2010/11. Think has also established partnerships in the US with battery suppliers A123 and EnerDel.

The initial distribution of TH!NK city will be targeted to the most `EV friendly’ cities in Europe. Due to high demand for TH!NK vehicles and finite production capacity in 2009 the Think Global company wants to make sure that they concentrate their efforts on the European cities where one will receive the maximum benefit of buying and using the TH!NK city.

Labels: Automotive Industry, Electric Car, Norway, Think

A Fiat Palia running on CNG fuel

For the complete report from, The Cutting Edge News click on this link

What Does Fiat Know about CNG that Honda and the American Media Want to Ignore? by Marc J. Rauch

"In a country and world struggling to stave off the effects of economic depression and looming environmental devastation, “There’s absolutely no reason not to (use CNG),” Fiat proclaims. So why then do the American car companies, indeed all car companies building vehicles on U.S. soil (with the minor exception of Honda’s tokenistic 1,000 to 2,000 Civic GX units per year) ignore compressed natural gas, particularly since they all have had substantial experience with CNG in outside markets? And why hasn’t the Obama Administration already mandated a national transition to North American-produced CNG as one alt fuel of choice? Fiat, a major player on the world automotive scene, has not enjoyed top-of-the-mind brand awareness in America since they withdrew the last of their primary brands and models from U.S. soil in the 1990’s. Perhaps this self-induced low profile is the reason why the Fiat CNG story has not captured the imagination of the media, let alone the public. However, given the new set of circumstances revolving around Fiat’s deal with the now bankrupt Chrysler (a deal that was in the making since at least January), it would appear that Fiat might end up forcing CNG-powered vehicles on America and our pabulum-puking knee-jerk media, ironically to our own very best interest. Among the CNG benefits highlighted by Fiat are its lower cost versus gasoline per equivalent gallon, its significantly lower polluting characteristics compared to gasoline, and the safety of driving CNG vehicles. Moreover, CNG’s abundant availability from friendly "green" sources makes the fuel preferable as it does little to support OPEC and unfriendly regimes. Maybe there’ll be a happy ending to this tale, with Americans driving domestically-built sexy CNG-powered Fiats."

Labels: Alternative fuels, Automotive Industry, Chrysler, EU, Fiat, Italy, Methane Gas, US

Marchionne to be Chrysler chief

Sergio Marchionne, the chief executive of Fiat Group, has said he will also become chief executive of Chrysler once it emerges from bankruptcy protection. The troubled US automaker filed for bankruptcy last week. Fiat is taking an initial 20% stake in Chrysler, part of Mr Marchionne's plan to create a global automotive giant. Fiat is also eyeing the foreign operations of General Motors, including its Opel and Vauxhall marques in Europe and its Latin American operations

Chrysler's current chief executive Bob Nardelli will stay in his job during the bankruptcy proceedings, which are expected to last until late June.

Labels: Automotive Industry, Chrysler, EU, Fiat

Renault Says EV Cost Will Equal Diesels

French carmaker Renault will build electric versions of three of its vehicles - and after government incentives are taken into account, all three will cost the same as their diesel equivalents, the company says. "We will launch EV van and car versions of the Kangoo in 2011," said Renault UK's fleet director, Keith Hawes. "However, the first Renault EV will be based on the Megane saloon, due in 2011.

Renault hopes that 15 percent of its global sales will be electric cars by 2015, and views the EV market across Europe expanding from tens of thousands of units by the time the Megane sedan launches to 300,000 by 2014. According to Car, Renault wants to be the de facto choice for EVs like Toyota's Prius is for hybrids. While Renault doesn't sell cars in the U.S. (yet), it has a business partner who does: Nissan. Nissan and its Infiniti luxury brand have been aggressively talking up its electric plans - and Renault's big push for EVs in Europe may very well help Nissan bring its plans for EVs in the U.S. to fruition as well.

Labels: Automotive Industry, EU, Renault

BBC "Top Gear 10" now on DVD

On April 21, BBC Video brought the world’s most popular car entertainment show to DVD for the first time in North America with the 3-disc release Top Gear 10. One of the top rated shows on BBC America and BBC Canada and broadcast in more than 100 countries. Top Gear takes extraordinary and ordinary cars to the limit and beyond to find out if they’re as good as their manufacturers claim. Full of extreme stunts, challenges and weekly features, like a car racing against the Eurofighter, worlds best fighter aircraft. Top Gear is exciting, inclusive and passionate - there are no boring stats and impenetrable conversations about camshafts and tire pressures.

Labels: Automotive Industry, Britain, Britain. EU, Top Gear 10, TV shows

U.S. tells GM to prepare for bankruptcy filing

The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported Sunday. GM (GM) is operating under emergency U.S. government loans. It has been told by the Obama administration's task force overseeing its bailout that it must cut costs and reduce its debts in order to continue to receive aid.

Labels: Automotive Industry, Economic Crises, GM, US

European markets rise, led by automakers

The European markets rose for the first time in four days on Wednesday, as automotive stocks rallied on news of the approval of plans to raise the funds available for subsidies to German car buyers and the launch of auto supplier support programs by U.S. automakers General Motors and Chrysler. German Chancellor Angela Merkel's cabinet today approved plans to raise the funds available for subsidies to buyers of new low-emission vehicles who scrap their old cars to €5 billion euros this year.

Labels: Automotive Industry, Economy, EU

Alternative energy: Electric cars charge ahead - by Mark Clayton

GM
Chevy Volt – Demo 2009, production November 2010
Saturn Vue PHEV – 2010. Note: GM has discontinued the Saturn line and the Vue’s fate in unclear.
Nissan
EV – 2010
Toyota
Plug-in Hybrid Prius – Demo 2010, production 2011
Chrysler
PHEV – 2010
EV Jeep – by 2013
EV Minivan – by 2013
EV Roadster – by 2013
Ford
Plug-in Hybrid Escape – 2012
EV Magna – 2011
BMW
e-Mini – 2009
Audi
A1 Sportback PHEV – 2011
Hyundai
PHEV Sonata – 2013
Volkswagen
PHEV Golf – 2011

Plus, there are entrepreneurial companies:
Tesla (now and 2011)
Fisker (2009)
BYD (2009)
Bright Automotive (2012)
Miles (2009)
Aptera (2009)
Persu Mobility (2011)
Myers Motors (now)

And finally, PHEV conversions from:
A123/Hymotion
Plug-in Conversions
3-Prong Power

Labels: Alternative Energy, Automotive Industry, Electric Car

How Günter Verheugen Is Winning Praise in Europe - by Hans-Jürgen Schlamp

President Barroso, who wants to be reelected, is eager not to spoil his chances with any of Europe's key politicians. And most of the 26 commissioners will be replaced by the end of the year. Verheugen would like to take advantage of this gap in leadership. He already passed something of a screening test for the role on Jan. 26 in Turin, at Italian carmaker Fiat. Not only was he able to reminisce in a refurbished version of the carmaker's classic Cinquecento model ("I used to have one of these," he said), but he also took the wheel of a state-of-the-art, 16-meter (52-foot) Iveco-40 truck. Verheugen drove the truck slowly across a big, empty parking lot, but when he took a turn too sharply, he began to perspire and said: "I told myself that I could do it: with a firm hand and a cool head!",p> When the EU economics ministers met in Brussels to discuss bailout programs for the auto industry, Verheugen announced his good news -- and promptly upped the ante. In light of the existential crisis at General Motors' European subsidiary Opel, he proposed a special meeting of all EU countries where Opel has production plants. These countries include, for example, Germany, Spain, Belgium and Poland. This, Verheugen argued, would allow the Europeans to effectively combine forces against the Americans. Of course, Günter Verheugen nominated himself as coordinator.

Labels: Automotive Industry, Economic Crises, EU, Günter Verheugen

The peppy economic Fiat 500 - Chrysler

For the complete report from Yahoo News click on this link

2010 Fiat 500C ready for the US market as a Chrysler product - by Matt deLorenzo

One of the prime candidates for product sharing between Fiat and Chrysler is the diminutive 500 city car that has taken Europe by storm. If the deal holds up, we can only hope that the 2010 Fiat 500C is part of the model mix. Like the original 1957 cabriolet it is patterned on, the 500C features fixed roof rails with a retractable soft top.

European buyers can order the new 500C with a choice of three powerplants, a 75-bhp 1.3-liter 4-cylinder turbodiesel, a 69-bhp 1.2-liter and a 100-bhp 1.4-liter gasoline engines. If the 500C is exported to the U.S. or built at Chrysler's Toluca, Mexico, assembly plant, expect that it would come with just the 1.4-liter four. A car this small undoubtedly will get excellent fuel economy—somewhere in the 35-mpg neighborhood for the U.S. 500C would not surprise us one bit.

Labels: Automotive Industry, Chrysler, EU, Fiat, Fiat 500, US

Alternative energy - 2010 Solar Roof Prius will power air conditioner system

Toyota has announced that the next redesign of their highly successful hybrid Prius automobile will include solar panels on its roof. These panels will power the air conditioning system, allowing its operation without turning on the car's main engine. The system prevents the vehicle from heating up while parked, significantly decreasing the time it takes to cool the car once it's in operation again, and limiting the use of air conditioning that would otherwise be necessary to remove the heat gathered while parked.

Labels: Alternative Energy, Automotive Industry, Electric Car

Chevy Volt

For the complete report from TFOT click on this link

Electric Cars - The 2010 Chevrolet Volt Unveiled

General Motors Corp, the world's largest automaker, has recently unveiled the production version of the Chevrolet Volt, thus creating a new class of vehicles dubbed Extended-Range Electric Vehicle (E-REV). Unlike many other hybrid cars, the Chevy Volt uses electricity to move the wheels at all times and speeds. With a 40-mile battery range, a gasoline/E85-powered engine generator which provides electricity to power the vehicle's electric drive unit and a top speed of 100mph, Chevrolet Volt might represents the beginning of a new era of automobile electrification.

Labels: Alternative Energy, Automotive Industry, Electric Car

Electric Cars - Ford's First Electric Car is a Delivery Van assembled in Turkey with a British motor

Ford confirmed today that commercial customers will have the choice of ordering their 2010 Ford Transit Connect with a battery or electric power train. The announcement also said the delivery van formerly known as the Smith Ampere will be proudly re-rebadged with a blue oval when it appears at "select Ford dealerships" sometime next year. We're thrilled to see a domestic carmaker selling a fully electric vehicle, even though this one will be assembled in Turkey with a British motor.

Global Product Development VP Derrick Kuzack said that Ford is positioning the electric Transit Connect as the "strong, silent type," perfect for customers who are interested in environmental sustainability but need a rugged work truck. According to Smith, who converts the Transit Connect for electric operation, the van will get 100 miles per charge, reach 70 mph, and can silently carry almost 1,800 pounds -- perfect for early morning deliveries.

Labels: Alternative Energy, Automotive Industry, Electric Car, EU, Ford, Turkey

The Futility of Hybrid - Steven Milloy

What about plug-in hybrid vehicles? When he was running for president, Obama pledged to put 1 million of the vehicles on the road by 2015. Aside from the question of how popular they’ll be with a projected retail price of $40,000 (as compared to $23,000 for a conventional vehicle), will they actually reduce carbon emissions? Only if the power plants they get electricity from produce little if any carbon. But since most U.S. electricity production is not carbon-free, the CRS observes that the “widespread adoption of plug-in hybrid vehicles through 2030 may have only a small effect on, and might actually increase, net CO2 emissions.” The final carbon control options addressed by the CRS are the so-called “distributed energy resources” like rooftop solar panels, fuel cells, natural gas microturbines, small scale wind turbines, and combined heat and power systems (CHP), which makes productive use of “waste” heat from electricity generation. Of these resources, only CHP is economical, accounting for nearly 9 percent of U.S. electricity generating capacity in 2007. But according to the CRS, even CHP often faces technical and utility infrastructure barriers to implementation.

Labels: Alternative Energy, Automotive Industry

Note to Fiat: Treasury may want some cash for Chrysler deal - by Douglas Mcintyre

Fiat probably hoped to get a 35% share of Chrysler without putting any skin in the game. Why would the Italian auto company expect that? May it is just naive. The US government is unlikely to let a foreign company get a piece of a US company for free, especially if the Treasury is writing the checks to keep the American company afloat. According to The Wall Street Journal, "Chrysler LLC has found an international partner in Fiat SpA but the auto maker isn't out of the woods, mainly because the deal is contingent on Chrysler getting $3 billion in additional government loans."

Why should Fiat walk in and get a piece of a firm that could be turned around using taxpayer cash? The answer is that it shouldn't. The Treasury should insist that Fiat put at least as much money into Chrysler as it is. Fiat is really not giving Chrysler much for its 35% in the US car company. It will help retool some plants and use them to build small cars that both companies will sell. Whether that helps Chrysler won't be known for some time. In essence Fiat is getting its stake almost for free.

Labels: Automotive Industry, Chrysler, EU, Fiat

Britain - The Queen's euro10.30 Million Bespoke Biofuel Bentleys - by Jared Paul Stern

The Queen of England is having her two $14 million bespoke Bentley limousines converted to run on biofuels. Bentley will replace the 400 HP twin-turbo 6.75 liter V8 engines on the unique cars (above) by way of promoting the new range of eco-efficient models the famed marque plans to introduce by 2012.

Labels: Alternative fuels, Automotive Industry, EU

Green Fuels, Cars Get Boost from Cow Pie Power, the Queen and New EV Charging Hub

The drive to green mobility got a boost into the New Year with news of heightened efforts to produce fuels from a variety of waste products, word that Queen Elizabeth's Bentleys are going green and the launch of an electric vehicle charging network in Northern California. Exploration of the power of poop, both bovine and human, made news in the U.S. and Japan. The energy chief for the state of Idaho, the third-largest milk-producer in the U.S., is looking to go big with the conversion of cow pies to natural gas that can power cars or homes, in addition to using the stuff to run turbines that would create electricity and recycling processed manure as plant bedding.

In Japan, the race toward green mobility is focusing on development of mass-produced zero-emission cars. Various firms have announced plans to have specific market launches as early as 2010 with widespread availability in 2012. Mitsubishi Motors Corp. says its iMiEV electric car is due to hit the market next year — which Nissan has also tagged as its launch year for electric cars in Japan and the United States.

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Labels: Alternative fuels, Automotive Industry, Biofuels, EU, US

UK: Motoring preview of 2009: 10 highlights

With the twin drivers of the financial crisis and reduced carbon dioxide emissions, the driving public are moving into smaller and more economical cars. Winners here are small-car specialists such as Fiat, Mercedes-Benz Smart, Toyota, the PSA Group of Citroën and Peugeot and Ford, with its brand-new Ka and Fiesta models.

Labels: Alternative fuels, Automotive Industry, EU

The carver, no bargain at euro 48.000

For the complte report from the NYTimes.com click on this link

The Netherlands: The Carver, a Truly Lean Machine, Tilts on Turns - by Nick Kurczewski

Engineered in the Netherlands and built in Germany, the Carver One is promoted as the world’s only available tilting car. Its balancing act is controlled by a high-tech hydraulic system that Carver calls Dynamic Vehicle Control. Linked to the steering, it calculates a lean angle based on vehicle speed and the cornering forces on the front wheel. The Carver One tilts to a 45-degree maximum, which could be handy for picking up dropped change at a parkway toll booth or a fast food drive-thru. The Carver doesn’t come cheap. In the Netherlands a base model costs 48,000 euros, or roughly $68,000.

Labels: Automotive Industry, EU, Netherlands, The Carver

Automakers say electric vehicles will soon become viable alternatives to gas-guzzlers - by Jeffry Steele

Choices, choices, choices. After a century of producing cars that ran solely on gasoline, the world’s automakers are working overtime to present a variety of options, including hybrids, biofuel-powered cars, and vehicles that run on hydrogen. Some of the biggest bets are riding on Americans getting charged up over the notion of mass-produced electric cars. Most eagerly anticipated is the 2010 Chevrolet Volt, which General Motors is calling an “extended range electric vehicle.” According to Rob Peterson, manager of electric vehicle technology communications with General Motors in Detroit, the Volt features a nearly 400-pound T-shaped lithium-ion battery that’s aligned down the vehicle’s center spine beneath the passenger compartment.

Note EU-Digest:The most important obstacle to making electric cars competitive is the cost of lithium battery. Every major car manufacturer is pursuing electrically-driven vehicles with lithium ion batteries as a solution to the problem of CO2 emissions and oil consumption.The presumption is that as more batteries are made in larger volumes the price will come down to a point where the cars might become profitable. It might not be, if extracting lithium from the ground becomes increasingly expensive in the same manner that oil is from older fields and other unconventional sources. There are also possibilities like silicon nano-wires or ultra capacitors that could dramatically increase energy storage density and reduce the size and requirement for materials like lithium.All this just goes to show the need for pursuing multiple parallel paths for energy diversity, because there doesn't appear that any one solution will be sufficient. Research must be stimulated and supported in these areas and we certainly are on the right track in taking the electric car from a fad to reality.

Labels: Alternative Energy, Automotive Industry, Electric Car

The Mercedes Blue-Zero concept elctric car

For the complete report from Hybrid Cars click on this link

Mercedes Takes Swiss Army Knife Approach to Electric Cars

The recently unveiled Mercedes-Benz BlueZero concept vehicles are built with the flexibility to insert electric, plug-in hybrid, and fuel-cell technologies into the same exact vehicle design. It’s easy to dismiss the BlueZero sketches as just another cool green concept car that will never see the light of day, but it could be a glimpse into a future lineup of small Mercedes cars with varying degrees of electric power.

Labels: Alternative Energy, Automotive Industry, Britain. EU, Electric Car, Germany, Hybrid Cars, Mercedes

Europe ahead of U.S. on electric cars - by Martin LaMonica

Cash-strapped U.S. auto companies are pushing into plug-in electric cars with the first models from General Motors, Chrysler, and Ford, starting in two years. But the overall environment for introducing electric cars is better in Europe, according to Kanode. "In Europe, the determination is absolute," he said. "They have had high energy costs our whole lifetime. Second, they want to decrease their reliance on foreign oil...And third, they are absolutely committed to improving their carbon footprint, both the public and the governments." He said there are already a number of hybrid electric vehicles coming to market in the form of fleets of buses and delivery trucks.

Both BMW and Mercedes are said to be developing all-electric cars. Last month, Mini unveiled the Electric Mini, which it started testing. General Motors, with its Chevy Volt, and Fisker Automotive have chosen gas-electric designs to ensure that cars have a longer driving range. Because of battery limitations, an all-electric car priced like a typical family sedan will have a shorter range.

Labels: Alternative Energy, Automotive Industry, Electric Car, EU

Putting the Gun to Detroit's Head - by Evan Newmark

Detroit, it is time to wake-up, throw some water on your face and look in the mirror. You are bankrupt, after all. It was easy to get lost in the sweet dreams concocted by Big Three management, the UAW and Washington politicians that $14 billion and a “car czar” would make everything all right. But c’mon, nobody actually believed that. You may be angry at Tennessee Sen. Bob Corker for the wake-up call. But you should thank him. He may have just saved your life. It is too early to tell how all this will play out. It looks like President Bush may throw some TARP money at Detroit. And then General Motors and Chrysler will have enough cash to make it until January and the sanctuary of an Obama administration.

Note EU-Digest: We should also put some blame on the consumers who blindly obeyed Detroit's marketing ploys for huge gas guzzling SUV's. Basically a person who buys a Humvee to drive himself to work and his family to the mall is not only wasting his money but also polluting the environment. Free choice in what you want to buy sure, but you don't have to be supid.

Labels: Automotive Industry, US

Germany:Volkswagen November Sales Plunge 17% on Recessions- by Andreas Cremer

Volkswagen AG, Europe’s largest carmaker, said deliveries fell 17 percent in November as “dramatic distortions” in global auto markets sap demand. Global sales fell to 447,000 vehicles last month, Wolfsburg, Germany-based Volkswagen said today in a statement. Eleven-month sales rose 1 percent to 5.73 million, the carmaker said.

“The slump in world markets during the fourth quarter is posing a massive challenge to us,” Detlef Wittig, Volkswagen’s sales chief, said in the statement. “We were still able to expand our market share amid declining sales.” Volkswagen extended the annual Christmas break Dec. 9 by five days at its nine German plants to reduce production as the global credit crunch and a worldwide recession plunged the auto industry into what General Motors Corp., the world’s biggest carmaker, has called the worst crisis since World War II.

Labels: Automotive Industry, EU, Germany, Volkswagen

AUTO Industry: US Big Three Promise Green Future But Spent Almost $50 Million Since 2007 Lobbying Against It - European car makers forced into frugality

Executives of the Big Three have been on Capitol Hill asking ( begging)for $34 billion in government aid, lamenting their financial straits and vowing their commitment to fuel-efficient cars - GM CEO Rick Wagoner even pulled up to the capitol in a light-blue Chevy Volt electric prototype. But during the hearings, Wagoner and his colleagues have yet to mention the millions of dollars they've spent this year lobbying Congress. In less than two years, the auto industry has spent $120 million lobbying Congress - much of which was used to fight legislative proposals to boost fuel economy requirements.

Note EU-Digest: With higher fuel prices European car makers have been forced for some time now to produce more fuel efficient cars, but are lobbying against higher emission standards to meet future European CO2 emission goals.

Labels: Automotive Industry, EU, USA

Auto Industry - Bailout baloney

Last month, the CEOs of GM, Ford and Chrysler arrived via private jets still clinging to their multi-million-dollar annual compensation packages, which didn't exactly give the impression of abject poverty they were pleading. They were sent away empty-handed amidst much public and congressional mockery. So this time, they drove to Washington in their own company vehicles and have pledged to take salaries of just $1 next year. That's better theater, but the answer from lawmakers still should be "no." The issue isn't whether the auto executives have scraped and bowed enough to earn an infusion of public cash, nor whether their new business plans have merit. Congress should not be appropriating tax dollars to prop up failing businesses under any circumstances, nor should it be engaged in shaping how those businesses restructure. Those decisions inevitably would be influenced by political, not market, forces.

Labels: Automotive Industry, USA

Poland : Solar car completes 1st ever round-the-world trip - by Vanessa Gera

The first solar-powered car to travel around the world ended its journey at the U.N. climate talks Thursday, arriving with the message that clean technologies are available now to stop global warming. The small two-seater, hauling a trailer of solar cells and carrying chief U.N. climate official Yvo de Boer, glided up to a building in Poznan, Poland, where delegates from some 190 nations are working toward a new treaty to control climate change. "This is the first time in history that a solar-powered car has traveled all the way around the world without using a single drop of petrol," said Louis Palmer, the 36-year-old Swiss schoolteacher and adventurer who made the trip.Palmer's appearance at the conference marked the end of a 32,000-mile (52,000-kilometer) journey that began 17 months ago in Lucerne, Switzerland and took him through 38 countries.

He calls his vehicle, which was developed by scientists at Swiss universities, a "solar taxi" because he has given rides to about 1,000 people – officials and regular folk alike – to convince them of the technology's viability. Passengers have included New York City Mayor Michael Bloomberg and U.N. Secretary-General Ban Ki-moon. Delegates in Poznan are seeking an ambitious new climate treaty that would replace the Kyoto Protocol, which expires in 2012 and has required that 37 countries slash emissions of heat-trapping gases by an average 5 percent from 1990 levels. The goal is for the new treaty to be finalized at the next U.N. climate meeting in December 2009 in Copenhagen, Denmark.

"Here at the conference, we are talking about reducing emissions by 10 or 20 percent," Palmer said. "I want to show that we can reduce emissions by 100 percent – and that's what we need for the future."

Labels: Alternative Energy, Automotive Industry, EU, Poland, Solar Power, UN Climate Conference

Carpocalypse Now: November Auto Sales Prove Scared People Don't Buy Cars - by Wes Siler

"November car sales numbers are coming in and they’re what you expect them to be — horrendous. Ford is down 31% month-to-month with last year. Toyota fell even further at 33.9%. That's successful compared to GM's 41% drop. Even Honda is down 31.6%. What's going on? Carpocalypse Now is going on, that's what! The entire auto industry is screwed at the moment, and it's not just the U.S. automakers. Since Toyota’s and Honda’s numbers are in the crapper it points to what we've been saying from the start. This is less an issue of a problem with our dear domestic car makers and more of a problem with a lack of desire on the part of consumers to buy from any company. People have either already lost their jobs, ot they're scared of losing their jobs — in addition to their houses and their way of life. When people are that scared, they just don't spend money. It's as simple as that." Note EU-Digest: ACEA has reported that sales of new passenger cars in Europe fell by 14.5% in October confirming earlier data issued by JD Power and reported by just-auto.Reflecting the financial and economic crisis, new car registrations have now decreased for six consecutive months, most notably since the summer. Cumulative figures over January to October show a minus of 5.4%. Markets in Western Europe registered 1,034,955 new cars in October, or 15.5% less compared to last year. With the exception of Austria (+4.0%), all markets contracted.The total for the Western European market is now expected to dip below the 14 million market by some margin, at a provisional 13.8 million. Furthermore, the severity of the crisis has caused a further revision downwards for 2009, to below 13 million units."

Labels: Automotive Industry, EU, US

To Sell Volvo, or to Say You're Selling Volvo - by Todd Lassa

Ford is in the same position with Volvo that GM is with its Hummer division. Volvo's sales in the U.S. this year have been nearly as dismal as Hummer's. And it's not doing that much better in Europe. Now that Ford has made the most of sharing the Volvo's S60/S80 platform with cars like the Taurus, Flex and Lincoln MKS, Ford is ready to return to simple, streamlined roots, concentrating on Ford, Lincoln and Mercury. That last brand will be essentially a collection of trim bits and grilles on Ford models, designed to keep Lincoln dealers happy with high-volume, low-priced models. No matter what you think of Mercury's future, its cars are cheap to build and necessary in keeping Lincoln from going further downmarket. So this is the best possible time for Ford to sell Volvo. It's also the worst, in that it won't find the kind of buyer it needs: a full-volume automaker that can build Volvos with shared parts from its low-priced lines. Rumors that BMW was interested a few years ago were nothing more than rumors; it doesn't build low-priced cars, and after nine years owning Rover almost brought BMW down, it doesn't need another semi-premium front-wheel-drive brand. Both Renault and Fiat could attract buyers with Volvo who wouldn't consider Renaults or Fiats, but Fiat already has its hands full trying to reverse the decline it brought on for the reputation of its Lancia brand. Renault/Nissan's Carlos Ghosn already has dismissed the idea of buying or merging with other automakers in the current economy.

Labels: Automotive Industry, EU, Ford, Volvo

Portugal, Renault-Nissan Set Electric-Car Plan - by Ucillia Wang

Portugal, Renault-Nissan Set Electric-Car Plan - by Ucillia Wang

Four months after signing an electric car deal with the Renault-Nissan Alliance, Portugal has come up with a more concrete plan for charging these cars when they arrive.Under the plan, 320 charging stations will be in place and ready to serve by the end of 2010, and 980 additional stations will be added by the end of 2011. Portugal plans to offer income tax credits, write-offs and parking credits to consumers and businesses to encourage electric transportation. These tax incentives will kick on by late 2010 and last at least five years, according to Renault-Nissan. Portugal also wants 20 percent of its public vehicle fleets to consist of zero-emission cars starting in 2011. Renault-Nissan plans to begin selling electric cars in Portugal and select markets in early 2011.

Labels: Automotive Industry, Electric Car, EU, US

Electric Vehicles: Fantasy or Reality? - by Lawrence Ulrich

Before you EV fans strap me to a 10,000-volt chair, let me be clear: I’m convinced that electricity will play a bigger near-term role than, say, hydrogen fuel cells. But I’ve long argued that 100 percent battery-powered cars face a psychological barrier, far beyond what hybrids face. What really scares consumers, beyond the unfamiliar technology, is the idea of being stranded miles from home and the nearest electrical outlet. General Motors has come up with a name for it: range anxiety. It’s the reason that GM and Toyota have no interest in following Tesla’s lead with a pure EV. The audience is just too limited. Are you really ready for a car that might travel 200 miles at best, and then need up to eight hours to fully recharge? Be honest. If you are, you better call grandma and tell her you’re going to be late. If you’re an urban apartment dweller, as many green-minded folks are, you probably have no convenient outlet to recharge. Parking garages and curbsides could be wired up someday, but that day isn’t now. All those New Yorkers and San Franciscans who might love an EV probably couldn’t take the plunge, lacking a handy way to charge it.

Note EU-Digest: The article- by Lawrence Ulrich shows once again how the US automotive industry is behind the times. In contrast the European Commission on Wednesday offered five billion euros (6.5 billion dollars) to help European auto makers make safer and greener cars, an initiative to be funded by the EU, industry and member states. EU commission chief Jose Manuel Barroso without explicitly citing the United States, took a swipe at US measures to boost the ailing car industry across the Atlantic. "We are not proposing an old-fashioned industrial plan for the car industry. We believe it is counterproductive to have this sort of thing. Smart investments in tomorrow's skills and technologies will accelerate Europe's drive ... to become a dynamic low-carbon economy," Barroso said.

Labels: Automotive Industry, Electric Car, EU, US

Automotive Industry: The Czechs do it with Skoda, so should Detroit - by Bernard Avishai

It has become conventional wisdom that the reeling U.S. auto industry desperately needs to innovate. The hard part for Detroit is working out how. There is hope, even for an entrenched, sprawling company such as General Motors. Take Skoda, the Czech auto manufacturer (slogan: "Simply Clever"), which in 1991 became a part of the Volkswagen Group, the largest car manufacturer in Europe. Skoda is thriving today because its elegance-minded Bohemian designers have learned to exploit the access VW management has given them to virtually the entire spectrum of the conglomerate's components. At first, Skoda also simply put a Czech skin around the German-engineered Golf. But today, the company creates original cars for low-end, low-tech markets whose boundaries are carefully negotiated with other VW Group members (it reportedly exports 80 percent of its vehicles to 92 countries). Skoda's former CEO, Detlef Wittig, told me that his firm's latest model, the adorable Roomster, would break even after selling only 60,000 units a year. He said that Skoda now accounts for about 20 percent of VW Group profits. (In case you're wondering: Yes, the Roomster may take some customers away from the VW brand, but the VW Group as a whole will be better off for it. And no, Skoda's competitive advantage is not cheap labor: Czech labor is no cheaper than South Korean.

Government — or, more precisely, governments — can help only if they grasp the way manufacturing companies work. The shakiest firms will need a tariff regime that permits an auto group to import components from the country where they are designed or most competitively produced. The European Union's trade rules were a huge help in making it possible for Skoda to acquire components from VW Group companies, including the Spanish firm SEAT. Federal and state governments should help jump-start a grid for electric cars, as Israel is doing. Most important, perhaps, Washington should move to stimulate innovation in entrepreneurial companies along the whole supply chain — companies aspiring to provide new generations of components.

Labels: Automotive Industry, Czech Republic, EU, Skoda

US Auto Industry - The Jurassic Auto and Idea Park - by P. Sainath

The logic of "too big to fail" keeps Big Auto and others of its like going. There is never any debate here of whether they should have been allowed to get as big as they did. President-elect Obama says he will aid the auto oligarchs who he calls "the backbone of American manufacturing." Sure, with that many jobs at stake, any government must worry about the consequences of letting them sink. No question about it. It's on the basis of that very fear that the Terrible Metal Lizards are able to bargain for handouts from public money. The US economy has lost close to a quarter of a million jobs in the month of October alone. So the thought of many more simply vanishing is scary. The US has already lost over 1.2 million jobs this year. Close to half of those in the past three months alone. So there is a good chance that more public money will be thrown at the auto giants, and that, without larger strategic shifts being imposed on them. Yet, everyone knows this does not mean an industry saved. They could be back soon with demands for still more. At which time, with things being even worse (quite likely) the pressure to save jobs by pouring in public money will be still greater. This is the United States. The money given out in the bailout so far has delighted the tuxedo dinosaurs -- CEOs and senior executives.

As The New York Times notes ruefully in a lead editorial: "Just weeks after the Treasury Department gave nine of the nation's top banks $125 billion in taxpayer dollars to save them from unprecedented calamity, bank executives are salting money away in billionaire bonus pools to reward themselves for their performance." Other bailout bandits have held meetings at resorts costing hundreds of thousands of dollars.

Labels: Automotive Industry, US

SolarWorld offers $1.26B for Adam Opel's assets - by George Frey

German solar energy company SolarWorld AG said Wednesday it plans to offer euro1 billion ($1.26 billion) in cash and credit for some assets of car maker Adam Opel GmbH, the German subsidiary of financially strapped General Motors Corp. GM said it wasn't selling. Bonn-based SolarWorld said in a statement it was planning to offer GM euro250 million ($350 million) in cash and another euro750 million ($945 million) in credit lines in a bid for four German production facilities and Opel's Ruesselsheim development center and headquarters, to make it Europe's first true "green" auto company.SolarWorld said it would develop a new generation of energy efficient and reduced emissions automobiles alongside successful models that Opel currently produces, should a deal work out. "With the restructuring of the product pallet, the traditional German auto builder would offer in future especially electric and hybrid automobiles and the newest technology combining extended-range electric and combustion motors highly efficiently," SolarWorld said.

Labels: Automotive Industry, EU, GM, SolarWorld

Automakers bailout: Why the Dems' Drive to Aid Detroit is Stalling Out - by Jeff Haynes

Although they have presided over the largest expansion of the U.S. government since the Johnson administration, the GOP has apparently reached its line in the sand when it comes to economic bailouts. Senate Majority Leader Harry Reid Monday introduced legislation asking that $25 billion of the $700 billion bailout fund Congress approved in September be redirected for use by General Motors, Ford and Chrysler in the hopes of helping the faltering industry avoid going under, but Republicans immediately balked at the idea. "It does no good for taxpayers to pour $25 billion into the car companies and find that a year later that money has been spent and yet nothing has changed to diminish their obligations. Where will they get the next $25 billion? And the $25 billion after that?" Senator Jon Kyl, an Arizona Republican, said on the Senate floor. "The reality is that they've got to change the way that they're doing business in order to, I think, warrant asking taxpayers for anything."

Note EU-Digest: why don't the automakers request Shell, Mobil and Exxon to bail them out? After all they were the ones who enjoyed the benefits of the gas guzzling cars Detroit produced.?

Labels: Automotive Industry, Bailout, EU, US

US Auto Industry - No to Detroit

What's good for General Motors is not, in fact, necessarily good for America. The assertion that their interests are one in the same, uttered 55 years ago by a company executive, reflected a time when U.S. automakers' dominance was in its heyday. Today, a taxpayer-funded bailout might be good for General Motors — or Ford or Chrysler — but it would not be good for America.Detroit's trouble isn't a temporary economic downturn. It's a business model that's unsustainable.

Using taxpayer money to prop up a business model that's not viable is like treating an abscessed tooth by giving the patient more potent painkillers. That may get you through the night, but the only real solution is to go in and clean out the mess. That's what bankruptcy does. It doesn't mean the company operating in bankruptcy — as Circuit City is currently doing, and as airlines and others have done before — goes out of business. Rather, it provides breathing room and an opportunity to clean out the mess that businesses have made through untenable cost structures, inefficient organizations and unappealing products. It's a back-to-boot-camp way to get lean and strong. If a lifeline needs to be thrown using public money, it should be in forms that are appropriate for government: transitional help for laid-off workers and training for new jobs.

Labels: Automotive Industry, US

US Auto industry comes with hat in hand for Government bailout after years of stubbornly lobbying against regulations to making more efficient and environmentally clean cars.

The chief executives of the Detroit's automakers and the UAW president met with House Speaker Nancy Pelosi yesterday to discuss the possibility of a second $25-billion loan to the companies, as General Motors Corp. prepares to report financial results Friday that will sound new alarms about the industry's need for aid. The Center for Automotive Research said Wednesday that if the Detroit automakers cut U.S. operations by 50%, 2.5 million jobs could be lost in 2009. Of those, 250,000 would come from automakers, 800,000 would come from suppliers, and 1.4 million other jobs from a ripple effect.

Note EU-Digest: One would only hope the US government makes sure that before any loan or handout is given to the auto industry it includes stringent regulations and deadlines for producing more efficient and environmentally clean cars.

Labels: Automotive Industry, US, US Economy

Korean Auto Sales in Europe, China Slow Down - by Ryu Jin

South Korean automakers showed poor performance in Europe and China last year amid fierce price competition, the latest report of an industry association showed Sunday.

European and American brands sold a total of 12.06 million cars to raise their combined market share from 81.4 to 81.6 percent year on year. Japanese carmakers also sold over 2 million, increasing the market share from 13.5 to 13.6 percent. Sales of South Korean-made cars in China also dropped from 405,011 units in 2006 to 332,573 last year, dragging down the market share from 7.8 percent to 5.3 percent. ``South Korean carmakers had a difficult time in Europe and China last year, as they lacked new models and lost competitiveness in terms of prices due to the unfavorable foreign exchange rates,’’ the KAMA official said.

Labels: Automotive Industry, EU, Korea

Changing automotive manufacturing in Europe - by Mike Page

Changing automotive manufacturing in Europe- by Mike Page

The European automotive manufactures face many technical and strategic changes in how and where they build cars and trucks, reports Mike Page from a recent German conference

Marc Seghers, manager of Facilities, Environment and Safety, Volvo Trucks, described how the Volvo Europa Truck plant at Ghent, Belgium, became the world's first carbon dioxide emissions-free vehicle plant in the world.

Labels: Automotive Industry

Swedish-German cooperation concerning the automotive industry

Sweden and Germany are to set up an expert group to study what must be done to create a joint European and US automotive market. Inter-ownership back and forth across the Atlantic and US problems with the car industry's lack of profitability mean that an interest should exist, writes Minister for Foreign Trade Sten Tolgfors.

Labels: Automotive Industry, EU, Germany, Sweden, US