Archives for May 2014

Tuesday morning car news roundup, May 20, 2014

Tuesday - Picture courtesy blogspot.com

This map shows why Tesla will not make its 5,000 unit target in China anytime soon. Sorry, I was wrong

Spot the difference?

Spot the difference?

In what we thought as a mostly adulatory article, Tycho wrote last week that boundless demand for Tesla’s Model S fuels the grey marketing activities of Tianjin car dealers. I followed it up with the fawning prediction that, based on the high demand and on what Chinese customers are ready to pay more ($13,000 above list) just to get their Model S now, I did see no reason why Tesla can’t make its target of selling 5,000 of their electric cars this year in China. In the no good deed going unpunished dept., Tesla’s new China spokesperson Peggy Yang (she was just hired away from Volkswagen) took issue with the story. “Tesla has only one official dealer in China, in Beijing,” wrote Tycho, saying that this dealer would not make serious deliveries before June, “Bu hao,” says Peggy: “They are our stores, not our dealers.” And furthermore: “Tesla has already begun deliveries and not until June.” And then she said something that made me revise my 5,000 unit prediction. [ There is more … ]

That car-filled test track actually was empty, each time Google came checking

Sunderland, 12/31/2001: No cars

Sunderland, 12/31/2001: No cars

Zerohedge can be an insightful and though-provoking site, but since Saturday, it is hobbling around with huge self-inflicting holes in its lower extremities, courtesy of well-aimed shots into their own feet. The site ran a story titled “Where the World’s Unsold Cars Go To Die.” The story went viral, and it was bunk. In the meantime, it has been debunked by everybody from Jalopnik’s Matt Hardigree to the Dailykanban’s Ed Niedermeyer. A day after its publication, the story also landed on Snopes, where it belongs. This did not stop sundry other sites from taking the story at face value. The debacle underlines the importance of what I – mostly in vain – tried to drum into my charges during my stint at the helm of (supposedly) Thetruthaboutcars.com: Never believe anything. Always check up on the story. Always try to get as close as possible to the actual source. You will be amazed of what you can find sometimes. Or in this case, what you can’t find. [ There is more … ]

Monday morning car news roundup, May 19, 2014

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The Mystery Of The Unsold Cars

Ah, look at all the lonely automobiles...

Ah, look at all the lonely automobiles…

One of the great frustrations about writing on the internet is the constant reminder that words can never compete with images for immediate impact. The human symbol-based psyche craves simplicity in a frighteningly complex world, and images provide their impact immediately, without need for further consideration. The old chestnut that “a lie is halfway ’round the world before the truth gets its pants on” is especially true in the modern world, where ever more is shared in images that can only ever show so much.

When Zerohedge posted photos portraying huge parking lots where, allegedly, “the world’s cars go to die” it was inevitable that the photos would have a huge impact. After all, 1) ZH is very well read and 2)monstrous overflow lots stuffed with unsold vehicles were to the 2008 US auto meltdown what suburbs full of foreclosure signs were to the mortgage crisis. In my naivete, however, I believed the shocking (if not entirely accurate) imagery of the post would inspire a closer look at the current auto inventory situation around the world. Having warned of inventory buildup in the US in a recent Bloomberg View post, I thought I could busy my weekend with other issues.

Yeah, right.

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Friday morning car news roundup, May 16, 2014

Fridays - Picture courtesy franchisehelp.com

In a grey market in Tianjin, proof why Tesla will easily sell its 5,000 cars in China

tesla website

One of the hottest topic on Wall Street is whether Tesla will sell the targeted 5,000 units in China. If you want to know what cars are really hot in the world’s hottest market, there is no better place than the grey import dealers around China’s port city of Tianjin, China’s hotbed of cars that officially should not even be there. This is where the first Ford Explorers came in, and the bad boy Raptors. And while Chinese customers complain about not receiving the Tesla Model S they ordered many months ago, the car can be had for cash at a grey import dealer in said Tianjin. According to Tycho de Feijter of Carnewschina, “the dealer claims he has fourteen cars available.” Tesla has only one official dealer, in Beijing, with no cars, but a very long waiting list, and first deliveries some time in June. “That is all too slow for wealthy Chinese car buyers who want a Tesla now,” reports Tycho. In Tianjin, cash shortens the wait. Fresh off the boat from California, and still with the U.S. tag on the car, a Model S goes for a premium of $13,000 above Chinese list. And go they do. [ There is more … ]

EU April new car registrations up 4.6 percent. The shift from premium to budget accelerates

smallest-car-florence-italy Pictuere courtesy mimiandcarl.com

New car sales in the EU were up a paltry 4.6 percent in April, as statistics by Europe’s manufacturer association ACEA show. (Full table here.) When sales were up 10.6 percent in March, this was widely feted as the long-sought turn-around. A month later, there is less reason for celebration. According to the ACEA, April’s “total of 1,089,226 units registered marked the third lowest result to date for a month of April since ACEA began the series in 2003 with the enlarged EU.” From such a low level, one would think that a real rebound shows a little more vigor. [ There is more … ]

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