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Variance

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Posts posted by Variance

  1. Link: http://www.autoweek.com/news.cms?newsId=103079

    Chinese Dreaming: Another U.S. entrepreneur signs deal, aims to import cars to U.S.
    AUTOMOTIVE NEWS
    Posted Date: 9/1/05


    Hap Hirsh, who distributed rustproofing to auto dealers in the 1980s, is the latest entrepreneur to dream of selling Chinese vehicles in the United States.

    Hirsh has signed a deal to distribute vehicles assembled by a small north China automaker, Hebei Zhongxing Automobile Co. The company, which produces SUVs and pickups, sold just 28,114 vehicles in 2004, down 2 percent from 2003, says consultant Global Insight of London.

    Chen Zhenhua, an executive at Hebei Zhongxing, confirms the company has an agreement with Hirsh, but adds: "It will be one year or more before we can even think of exporting to the U.S. There are a lot of things we have to resolve - not just making sure our engines meet U.S. emissions standards, but also safety standards and many other things.

    "He (Hirsh) didn't think it would be any problem, but I think it will be pretty difficult."

    The first exports would be pickups, he says.

    Thermo-Guard Inc., Hirsh's rustproofing company, closed in 1989 and later filed for Chapter 11 bankruptcy protection. Hirsh also helped sign up dealers for Malcolm Bricklin's Electric Bicycle Co., which failed in 1997.

    Bricklin says he plans to sell Chinese cars in the United States starting in 2007. And David Shelburg Sr. of Scottsdale, Ariz., a former Bricklin associate at Subaru, also is trying to distribute Chinese vehicles in the United States.

  2. Link: http://www.autoweek.com/news.cms?newsId=103080

    Infiniti to toot own horn with ad campaign designed to build brand recognition
    KATHY JACKSON | Automotive News
    Posted Date: 9/1/05


    SAN FRANCISCO - Infiniti is ready to toot its horn a little louder.

    With sales up 6.9 percent this year, and after a successful launch of its M car, Nissan's luxury division will begin a media brand campaign in mid-September.

    Scott Fessenden, director of Infiniti marketing, says the campaign will tout the brand's attributes, such as good design and technology including all-wheel-drive and lane-departure warnings.

    "We want people to understand more about the Infiniti brand," Fessenden says. "We want people to say, 'I want to drive an Infiniti,' and then come in a pick out a nameplate. You can't honestly tout a brand unless you have a legitimate stable of vehicles under it."

    Infiniti sold 130,986 vehicles in 2004, up 10.4 percent from 2003. In 2001, Infiniti sold 71,365 vehicles. With sales of 79,819 through July, the division is on track to beat last year's sales.

    But Infiniti is looking at more than sales numbers. It wants to sell vehicles costing more than $40,000 in respectable numbers so the brand can legitimately challenge other luxury brands.

    The redesigned Infiniti M cars, which went on sale in January, are a solid step forward. The company hoped to sell 20,000 this year. Through July, dealers sold 12,261, compared with 1,315 during the year-ago period.

    "The perception that they're the fire-sale brand has been laid to rest," says Dan Gorrell, vice president of Strategic Vision in Tustin, Calif. "But one area that still needs work is the flagship, and sales reflect that."

    Infiniti's top-of-the-line nameplate, the Q45, had only 768 sales in the first seven months of the year, compared with 1,169 in the same period last year. Infiniti's best seller, the G35, sold 41,165 units through July 2005 versus 41,863 in the same period of 2004.

    Fessenden said the brand campaign will consist of 30- and 60-second TV commercials. There also will be newspaper, Web site and outdoor ads. He would not disclose the budget for the campaign.

  3. Link: http://www.autoweek.com/news.cms?newsId=103100

    Waiting Impatiently: BMW M3 spied; 400-plus hp V8 expected for new model
    AUTOWEEK
    Posted Date: 9/1/05

    Expect V8 magic when BMW unveils its E90-series M3, though that won’t happen until 2007. We hear BMW plans 400-plus hp transmitted through a seven-speed sequential manual gearbox. BMW will offer a six-speed manual and possibly an automatic as an option. We also hear rumblings of the return of the four-door M3—absent from the E46 range—to complement the coupe and convertible lineup.

    Posted ImagePosted Image

  4. Link: http://biz.yahoo.com/prnews/050901/nyth186.html?.v=12

    BMW Group In the U.S. Reports Best Month Ever for BMW Brand
    Thursday September 1, 2:27 pm ET 
    BMW Group Sales up 18 Percent for August; Year-to-Date Sales Rise 4.3 Percent


    WOODCLIFF LAKE, N.J., Sept. 1 /PRNewswire/ -- The BMW Group in the U.S. (BMW and MINI brands combined) reported impressive August sales of 28,879, an increase of 18 percent over the 24,501 vehicles sold the same month last year, for its second best month ever. The BMW Group also reported year-to-date sales of 200,562 vehicles, up 4 percent over the 192,233 vehicles sold in the first eight months of 2004.


    BMW Brand

    BMW reported its best sales month ever, with 25,537 vehicles sold, an increase of 15 percent over the 22,167 sold in August 2004. Previously, the best month for the BMW brand was December 2004, when sales of 25,482 BMWs were reported.

    Year-to-date, BMW brand sales were up 1.2 percent, to 171,579 compared to 169,480 in the same period last year.

    "Strong sales across all models, including BMW's new 3 Series and 7 Series automobiles, contributed to this record-breaking month for the BMW brand," according to Tom Purves, chairman and CEO of BMW (US) Holding Corp.

    BMW Automobile Sales

    August sales of BMW automobiles were up 13 percent, to 17,254 cars, compared to 15,305 sold in the same month a year ago. Year-to-date, sales in this category were down 2 percent, to 124,406 automobiles compared to 126,885 in the same period a year ago.

    BMW Sports Activity Vehicle Sales

    SAV sales were up 21 percent for the month to 8,283 vehicles, compared to 6,862 vehicles sold in August 2004. Year-to-date, sales of BMW's two SAV models are up 11 percent, to 47,173 vehicles compared to 42,595 in the same period of 2004.

    Certified Pre-owned

    BMW also reported its best August ever for sales of Certified Pre-owned BMWs. Monthly sales of Certified Pre-owned vehicles were 6,470, up 15 percent over the 5,637 vehicles sold in the same month last year. Year-to-date, BMW CPO sales were up 3.3 percent, to 49,620 vehicles over 48,042 for the same period a year ago.



    MINI Brand


    MINI Automobiles

    MINI USA continued to experience strong demand, with August sales up 43 percent, to 3,342 cars versus the 2,334 sold in that month in 2004. The division reported sales of 28,983 cars year-to-date, up 27 percent compared to 22,753 sold in first eight months of 2004.

    BMW Group In America

    BMW of North America, LLC has been present in the United States since 1975. ROLLS-ROYCE Motor Cars NA, LLC began distributing vehicles in 2003. The BMW Group in the United States has grown to include marketing, sales, and financial service organizations for the BMW brand, the MINI brand, and the ROLLS-ROYCE brand of Motor Cars; DesignworksUSA, an industrial design firm in California; a technology office in Silicon Valley and various other operations throughout the country. BMW Manufacturing Co., LLC in South Carolina is part of BMW Group's global manufacturing network and is the exclusive manufacturing plant for all Z4 Roadster and X5 Sports Activity Vehicles. The BMW Group sales organization is represented in the U.S. through networks of 340 BMW passenger car centers, 327 BMW Sports Activity Vehicle centers, 148 BMW motorcycle retailers, 80 MINI passenger car dealers, and 25 ROLLS-ROYCE Motor Car dealers. BMW (US) Holding Corp., the BMW Group's sales headquarters for North, Central and South America, is located in Woodcliff Lake, New Jersey.

    Information about BMW Group products is available to consumers via the Internet at:

    http://www.bmwusa.com
    http://www.bmwmotorradusa.com
    http://www.miniusa.com
    http://www.rolls-roycemotorcars.com

  5. Bodies are lying in the street and floating about. The flood waters are now a brackish mix of saltwater, gasoline, solid waste, chemicals, and human corpses among other things. Imagine the sickness this will spawn in the region and for the world.


    Sounds a lot like the Ganges River in India.

    It sounds like it's turned into a third-world country down there. This is a dark time for America and Americans. :mellow:
  6. Link (p/w req'd): http://cgmedia.daimlerchrysler.com/newsrel...d=1779&roomid=1

    Chrysler Group Reports 17th Consecutive Month of Sales Increases


    * Jeep® brand sales lead Chrysler Group performance; Sales rise 16 percent year-over-year
    * Sports Tourer segment sales perform well; Sales increase 6 percent over last year
    * Truck segment sales volume improves; Dodge Ram pickup sales continue as volume leader for the Company
    * 2006 Dodge Ram 1500 goes on sale today; First pickup to offer best-in-class HEMI® power with fuel-saving Multi-Displacement System (MDS)
    * DaimlerChrysler Fund to provide matching funds by Chrysler Group dealers and employees to assist Hurricane Katrina relief efforts


    Auburn Hills, Mich., Sep 1, 2005 -

    Made possible by the strong foundation of desirable products and competitive value, Chrysler Group today reports its 17th consecutive monthly sales increase. Sales increased 1 percent adjusted (5 percent increase unadjusted) to 187,085 units sold during August 2005. All other sales are reported on an adjusted basis unless otherwise indicated.

    "August sales results validate our approach of combining eye-catching, desirable products with a clear, competitive value message," said Gary Dilts, Chrysler Group, Senior Vice President - Sales. "The devastation brought by Hurricane Katrina had some impact on our sales during the final stretch of August. Our thoughts and prayers are with the families in that region as they begin the long process towards rebuilding their lives."

    Chrysler Group saw sales strength in several key segments during August, including the Sports Tourer, SUV and Truck segments.

    Sport Utility Vehicles
    Chrysler Group's SUV segment sales were led by the historic Jeep® brand which posted sales of 40,659 units, an increase of 16 percent over August 2004 sales. Sales were fueled by gains in each of the three nameplates in the Jeep lineup.

    Sales of Jeep Grand Cherokee surged 27 percent to 17,931 units compared to August 2004 sales of 13,563 units, while sales of the original SUV descendant, Jeep Wrangler, increased 11 percent to 7,079 units. Previous year sales of the Jeep Wranger totaled 6,123 units. Jeep Liberty posted sales of 15,649 units, an increase of 8 percent year-over-year compared to August 2004 when 13,874 units were sold.

    The all-new Jeep Liberty Common Rail Diesel (CRD) posted year-to-date sales of 5,096 units, exceeding full-year sales projections of 5,000 units while delivering 25 percent improved fuel economy for their enthusiastic new owners.

    The Jeep lineup of vehicles will expand by one row to accommodate the all-new Jeep Commander, the first Jeep with three rows of seats. Excitement for the Jeep Commander is high as orders for the vehicle exceed 40,000 units. Arriving at dealerships daily, the Jeep Commander is a fully capable Jeep while delivering the refinement expected by customers.

    Trucks
    Sales in the truck segment for Chrysler Group were led by the Dodge Ram pickup, which posted sales of 38,681 units, an increase of 1 percent year-over-year. Sales for August 2004 totaled 36,677 units. Overall sales for the truck segment increased to 49,427 units sold compared to last year's total of 47,317.

    Beginning today, the new 2006 Dodge Ram 1500 pickup is available for sale at Dodge dealerships nationwide. The 2006 Dodge Ram 1500 has been completely re-engineered, and is the first truck to include the availability of the Multi-Displacement System along with best-in-class HEMI® power, which provides up to 20 percent fuel economy improvement. Also included in the enhanced features are an all-new frame and suspension, all-new interior, bold exterior styling and a truckload of value.

    Sports Tourer
    The Sports Tourer segment was led by sales of the Chrysler Pacifica and the Chrysler PT Cruiser as the Sports Tourer segment saw sales increase 6 percent to 20,142 units compared to August 2004 sales of 18,312 for the segment.

    The Chrysler Pacifica posted sales of 6,804 units, an increase of 14 percent over August 2004 sales of 5,747 units. The Chrysler PT Cruiser improved 12 percent to 9,812 units sold. Previous year sales of the PT Cruiser were 8,407 units.

    "Economic indicators are showing stronger signs of improvement, but customers are still looking for a deal on cars and trucks," said Dilts. "We will continue to offer our Employee Pricing Plus program to customers as we aggressively work to sell down 2005 model year inventory. The Employee Pricing Plus program will end on October 3, 2005. This is absolutely the best deal you are going to see this year on Chrysler Group products"

    Chrysler Group finished the month with 495,786 units of inventory, or a 69-day supply.

  7. How expensive will this PS3 be? Also, what all features does it have. I can't imagine it having anything useful for me. But, damn... I just got a PS2 about 2 years ago. And I just got GT4 a few months ago...

    [post="7886"]<{POST_SNAPBACK}>[/post]


    I don't think a firm price has been set but it may be over $300.
  8. Link: http://biz.yahoo.com/prnews/050901/lath084.html?.v=23

    Kia Motors America Announces August Sales
    Thursday September 1, 2:21 pm ET 
    Sales Up 12.7% for the Month of August, 6.8% Year-to-Date


    IRVINE, Calif., Sept. 1 /PRNewswire/ -- Kia Motors America (KMA) today announced monthly sales of 23,820 units for August 2005. Kia's year-to-date sales of 192,958 were 6.8-percent ahead of the record number achieved in 2004.
    Kia's August sales were highlighted by a 54.4-percent increase in sales of the Spectra nameplate, as well as a 34.5-percent increase for the Amanti large premium sedan.

    This month also marked the on-sale date of the all-new 2006 Rio subcompact sedan and Rio5 five-door, which both went on sale in late August. With a starting MSRP of $10,570, the new Rio offers six standard airbags, best-in- class interior room and horsepower, and delivers 38 miles-per-gallon (highway) at a time when gasoline prices are at record highs.

    "The Spectra has proven to be a strong seller throughout the year and this month was no exception," said Peter M. Butterfield, Kia Motors America's president and chief executive officer. "Now that the all-new subcompact Rio sedan and Rio5 five-door have arrived in showrooms, we are confident that we'll continue to attract new customers to our dealerships."

    Kia Motors America is the sales, marketing and distribution arm of Kia Motors Corp. in Seoul, South Korea. For more information, including photography, visit www.kiamedia.com.

  9. Link: http://toyota.com/about/news/corporate/200...01-1-sales.html

    Toyota Reports Best-Ever August Sales

    Torrance CA., September 1, 2005 - Toyota Motor Sales (TMS), U.S.A., Inc., today reported its best-ever August sales of 205,362 vehicles, an increase of 9.5 percent. Calendar-year-to-date (CYTD) sales total 1,535,849, up 11.4 percent over the same period last year.

    "Even as the impact of employee pricing wanes and pump prices climb, the industry presses ahead on the strength of new products and hybrid technology," said Jim Press, TMS president and COO.

    The Toyota Division posted best-ever August sales of 177,237, up 10.0 percent. The Lexus Division reported best-ever August sales with 28,125 units sold, an increase of 6.5 percent.

    Toyota Division passenger cars recorded best-ever August sales of 105,572, up 18.2 percent over the same period last year. The all-new 2005 Avalon full-size sedan recorded August sales of 9,020, up 200.7 percent. The Prius gas-electric hybrid mid-size sedan enjoyed best-ever August sales of 9,850, an increase of 115.6 percent. Camry sales rose 7.7 percent with 39,896 units sold, while Corolla sales were at 31,369 units, up 2.3 percent.

    Toyota Division light truck sales totaled 71,665 units for the month. Light truck sales were led by the Tacoma pickup truck with sales of 16,140, up 17.7 percent over the same period last year. Sienna van sales rose 14.8 percent for a best-ever August, with 14,479 units sold, while RAV4 compact SUV sales were at 7,380, up 11.2 percent. The Highlander Hybrid gas-electric mid-size SUV, which launched in early June, reported sales of 2,925 units in August. The Highlander and Highlander Hybrid posted combined August sales of 13,042, up 7.6 percent.

    Scion reported best-ever August sales with 15,228 units sold. The tC sports coupe, which debuted last summer, led the way with best-ever sales of 7,464 units, an increase of 40.2 percent over last August. The xA recorded sales of 2,805 units for the month, up 10.8 percent.

    Lexus passenger cars posted August sales with 14,626 units, an increase of 19.3 percent. Sales momentum remained strong with best-ever August sales of the GS 300, which posted sales of 2,811 units and an increase of 304.0 percent, while the GS 430 posted sales of 524 units, an increase of 342.0 percent. The ES 330 luxury sedan enjoyed sales of 7,345 units, an increase of 6.5 percent over the same period last year.

    Lexus Division light truck sales totaled 13,499 units for the month. The LX 470 full-size luxury utility vehicle sales rose 22.3 percent in August for a total of 889 units, while the GX 470 recorded August sales totaling 2,966. The 2006 RX 400h, launched in April as the world's first luxury hybrid vehicle, reported sales of 2,607 units for the month. The RX 330 and RX 400h posted combined August sales of 9,644 units.

    Sales of North American-built vehicles accounted for 59.7 percent of total August sales. There were 26 selling days this sales month compared to 25 last August.

  10. Link: http://media.ford.com/article_display.cfm?...8&make_id=trust

    FORD'S U.S. SALES ROSE 6 PERCENT IN AUGUST


    Overall, Ford Motor Company's U.S. sales totaled 288,429, up 6 percent compared with a year ago.

    Car sales up 22 percent as Ford Mustang, Ford Five Hundred and Mercury Montego continue to pace car revival.

    Truck sales equal to a year ago as record F-Series and crossover utility sales are neutralized by lower sales of traditional sport utility models.

    Land Rover dealers report record August sales as new LR3 and Range Rover Sport boost sales 78 percent

    Ford announces fourth quarter North American production plans.

    DEARBORN, Mich., September 1 - Ford Motor Company reported higher vehicle sales in August, benefiting from its strengthened lineup of cars and crossover utilities and continued strong sales of its F-Series truck. It was the third month in a row the company posted higher sales.

    Overall, U.S. consumers purchased 288,429 new vehicles from Ford, Lincoln, Mercury, Jaguar, Land Rover and Volvo dealers in August, up 6 percent compared with a year ago. Car sales surged 22 percent reflecting strong sales of the new Ford Mustang, Ford Five Hundred, and Mercury Montego as well as the Ford Focus. August truck sales were equal to a year ago as record sales of the F-Series truck (90,388) and higher sales of crossover utilities (up 52 percent) were neutralized by lower sales of traditional sport utility models.

    On a year-to-date basis, Ford sales are up 1 percent with cars up 5 percent and trucks down 1 percent.

    "In 2005, new products have helped us achieve significant inroads among car buyers and in the growing crossover utility market," said Steve Lyons, Ford group vice president North America Marketing, Sales and Service. "These segments likely will continue to attract buyers in an environment where gasoline prices are rising. We're optimistic we can achieve further gains with the introduction of three all-new mid-size cars - the Ford Fusion, Mercury Milan, and Lincoln Zephyr - and the Mercury Mariner hybrid utility vehicle."

    All of these products are set to debut in October. In addition, the redesigned Ford Explorer and Mercury Mountaineer will be introduced in October.

    "There's no question that demand for traditional sport utility vehicles has been affected by rising gas prices as well as significant changes in buyer demographics and product offerings," said Lyons. "Still, the traditional utility segment is large and we have a strong reputation and share in this segment. The features and value incorporated in the new Explorer and Mountaineer will strengthen our position."

    Overall, sales of traditional sport utility vehicles declined 33 percent in August. Land Rover was a notable exception as the all-new LR3 and Range Rover Sport models resulted in record sales and a 78 percent increase compared with a year ago.

    Ford's F-Series truck continued its record setting pace. August sales for America's best-selling vehicle were 90,388 - a record for the month. Year-to-date, F-Series' sales total 625,047, up 5 percent from a year ago.

    North American Production
    The company plans to build 830,000 vehicles (245,000 cars and 585,000 trucks) in its North American assembly plants in the fourth quarter 2005. In the fourth quarter 2004, the company produced 829,000 vehicles (225,000 cars and 604,000 trucks).

    In the third quarter of 2005, the company plans to build 730,000 vehicles (210,000 cars and 520,000 trucks), unchanged from the previously announced plan.

  11. Link: http://nissannews.com/corporate/news/curre...901095412.shtml

    Nissan North America Announces August Sales [Sept. 1, 05]

    NNA Achieves More than 10% Increase in August Sales Over 2004

    GARDENA, Calif. (September 1, 2005) – Nissan North America, Inc. (NNA) continues record breaking sales by reporting 92,365 total sales in August, posting a 10.6% increase over last year.  This month marks the best August sales in the history of NNA as well as its Nissan division.  Strong sales of Nissan models such as the Altima as well as the all-new Infiniti M achieved their best ever August sales.

    NISSAN HIGHLIGHTS
    · Best August ever for Nissan Division
    · August sales for Nissan-brand vehicles of 80,026 units were up 11.5 percent when compared to last year with 69,029 units sold
    · Altima (23,362 units sold) had its best August, with sales up 11.3 percent
    · Pathfinder (6,396 units sold) posted strong sales since its launch, up 146.2 percent
    · Calendar year-to-date sales are up 16.6 percent with 650,228 units sold

    INFINITI HIGHLIGHTS
    · Sales for Infiniti, the luxury division of NNA, were up 5.1 percent from last August with 12,339 units sold
    · The all-new M continued its strong sales momentum with 2,623 units sold
    · Calendar year-to-date sales are up 7.7 percent with 92,158 units sold

    NNA INFORMATION
    · It was the best August in NNA history with 92,365 units sold when compared to last year with 80,314 units sold
    · Calendar year-to-date sales are up 15.4 percent with 742,386 units sold

    In North America, NNA’s operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing.  More information on NNA and the complete line of Nissan and Infiniti vehicles can be found online at www.nissannews.com or by contacting the corporate media line at 310/771-5631.

  12. Link: http://media.vw.com/article_display.cfm?article_id=9680

    VOLKSWAGEN REPORTS AUGUST SALES INCREASE

    NEW JETTA AND NEW 2006 PASSAT LEAD THE WAY
    AUBURN HILLS, Mich. – Volkswagen of America, Inc. reported August sales of 23,083, representing a 1.6% increase when compared to August 2004 sales of 22,724.  August 2005 sales represent the best U.S. sales month in the past year.

    Significant in the overall results were the sales of the all-new Jetta.  With the introduction of the Jetta 2.0T and GLI models late in the month, customers could now select from the complete line of Jetta models and options.

    The all-new Passat availability continues to improve as reflected in the sale of 2,982 units of the new model. The New Beetle convertible sales of 1, 869, representing a 19.4% increase over August 2004, continue to reflect the popularity of the model. Volkswagen said the sell-down of prior generation New Beetle, New Beetle convertible, Golf, GTI and 2005 Passat models continues as planned.

  13. Race factors in because sports are supposed to be universal, and all white drivers, all white crews and all white fans just screams of Alabama in the 50's.

    [post="7683"]<{POST_SNAPBACK}>[/post]


    It could just be that minorities don't give a damn about NASCAR. I know I don't. :P

    Having said that, I wouldn't hesitate to wager some of the fans of NASCAR would be less than pleased to see a minority NASCAR driver.
  14. Link: http://news.yahoo.com/s/ap/20050831/ap_on_...HNlYwMlJVRPUCUl

    KUALA LUMPUR, Malaysia - Facing intense competition from foreign carmakers, Malaysia's national auto company Proton reported a net loss of 12.4 million ringgit, or $3.3 million, for April-June quarter, its worst quarterly financial results in a year and a half.

    Proton Holdings Bhd. said in a statement late Tuesday the poor showing was because of lower sales volume, higher components costs and allowances for doubtful debts. It didn't specify how many cars were sold in the quarter.

    The company, Southeast Asia's largest car maker by vehicles produced, posted a net profit of 166.5 ringgit in the same quarter of 2004.

    First-quarter revenue rose 6.9 percent on year to 2.05 billion ringgit ($539 million).

    The dismal results come as Proton faces new foreign competition as the government lifts protective tariffs on foreign-made cars due to a regional fair trade agreement, Proton domestic market share has dropped to around 44 percent in 2004 from 60 percent in 2002.

    The company and its controlling shareholder, government investment company Khazanah Nasional Bhd., are currently considering whether to offer German automaker Volkswagen AG a financial stake and possible management role in Proton.

    Proton said the quarterly loss would have been worse if not for $5.9 million in unrealized foreign exchange gains due to the revaluation of a $85.5 million loan.

    Proton expressed pessimism about prospects for the financial year ending March 2006, saying late Tuesday it "expects the higher component costs arising from higher steel and oil prices to have an adverse impact."

  15. Link: http://news.yahoo.com/s/nm/20050831/pl_nm/...HNlYwMlJVRPUCUl

    By Leonard Anderson
    Tue Aug 30, 8:41 PM ET



    BERKELEY, California (Reuters) - Automakers outlined plans on Tuesday to introduce hydrogen-powered cars in California but said they had a long road ahead, despite strong support from Gov.  Arnold Schwarzenegger who dreams of a "hydrogen highway."

    General Motors Corp, Japan's Honda Motor and Germany's BMW are pursuing competing technologies to introduce new "zero emission" cars that run on fuel cells and do not pollute, said engineering and marketing managers for the three automakers.

    BMW, however, may have a leg up to market a new car in California and Europe powered by a gasoline engine and a hydrogen fuel cell system. The German automaker plans to offer a limited number of the new model in its 7 Series in 2010, Wilhelm Hall, general manager of environmental engineering at BMW North America.

    He spoke at a briefing for reporters on California's efforts to persuade automakers to manufacture more environmentally friendly cars for California's "hydrogen highway."

    BMW plans a production run of the new car "in the hundreds" in five years with sales aimed at fleet operators and individuals in Europe and the U.S., Hall told Reuters.

    California drivers, battered by soaring prices at the gas pump, are snapping up new cars like Toyota's gasoline-electric Prius hybrid combining smart looks and high miles-per-gallon.

    PRIUS VS HUMMER

    Hollywood celebrities have adopted the quiet Prius as a kind of environmental badge of honor, while plenty of gas-guzzling Hummers continue to roar over the state's freeways where they are the object of envy and scorn.

    California, which has paced the U.S. in implementing regulations to reduce greenhouse gas emissions linked to global warming, aims to promote the use of hydrogen fuel to reduce its dependence on oil while improving the environment.

    The state's "hydrogen blueprint," one of Schwarzenegger's favorite programs, calls for up to 2,000 hydrogen vehicles and 100 refueling stations by 2010 at an estimated cost of $54 million.

    The fuel outlets would be concentrated in San Diego, Los Angeles, the San Francisco Bay area and Sacramento.

    Depending on the results of the first phase, California would aim for 20,000 hydrogen vehicles and 250 fuel stations.

    GM is developing a demonstration car called the Sequel powered by a compressed hydrogen engine, said Al Weverstad, executive director of GM's Public Policy Center.

    Weverstad said GM will complete its engineering analysis on hydrogen vehicles by 2010, but no timetable has been set for production and marketing programs. GM is concerned about development costs, he said, but added: "We are confident we will get there."

    Honda has developed a hydrogen fuel cell demonstration car and also a car running on compressed natural gas that can be refueled at home.

    Steve Ellis, manager of fuel cell marketing for Honda in California, said the company's strategy for lower-emission cars moves from high gasoline fuel economy to gasoline-electric hybrids to compressed gas to hydrogen fuel cell models.

  16. Link: http://www.autoindex.org/news.plt?no=1200

    Daihatsu Motor Co., Ltd. today announced that it will exhibit a compact SUV, the D-Compact 4X4, and a hybrid sports car, the HVS, along with a number of other new models at the 61st Frankfurt Motor Show.

    D-Compact 4X4 (concept car world premier)
    The D-Compact 4X4 is Daihatsu's proposal for a new compact SUV that's more powerful, more dynamic and more handsome. Its dynamic and sophisticated styling is an expression of the car's pure SUV performance and ease of use in the city. The newly developed 1.5-litre engine supports nimble acceleration in all speed ranges and delivers the powerful driving performance you'd expect of an SUV.

    HVS (concept car world premiere)
    A new lightweight sports car that reconciles environmentally friendly performance with the joy of driving at an unprecedented high level, the HVS combines a 1.5-litre engine and an advanced electrically operated 4WD hybrid system to draw out the full potential of hybrid technology. The result is a powerful and exhilarating drive reminiscent of a 2-litre car but with fuel economy exceeding that of a conventional 1-litre car. The rear electric motor transmits power via a drive-control mechanism that drives the left and right wheels separately for increased stability during high-speed cornering.

    Posted ImagePosted Image

  17. Link: http://autos.msn.com/research/vip/job.aspx...S&src=reviewers

    Ann Job's Rating:
    8 out of 10. 


    Bottom Line:
    Cadillac's big sedan, the DeVille, is restyled and renamed for 2006. Like its predecessor, the new DTS is front-wheel drive. But this is one comfortably-riding Caddie whose edgy styling on the outside and new, upgraded interior are mostly done right. 

    Pros:
    New, lower price
    Edgy styling done right
    Comfortable ride

    Cons:
    Some features not available
    Unattractive views of exhaust system
    Weird window detail


    Expert Review
    The 2006 version of the Cadillac DeVille is an elegant-looking car. But how can that be?

    It's the latest Cadillac to wear the brand's edgy design, which I have never warmed to. Yet, I like the formal, impressive style of this large sedan. I'm not the only one. On congested Los Angeles freeways, I noticed a number of other drivers—none of them looking to be anywhere near the DeVille buyer's median age of 68—giving this new car a good look.

    Maybe practice makes perfect. After all, Cadillac officials have been working at their edgy styling since 2001, when it debuted in showrooms on the Cadillac CTS entry luxury car. In the ensuing years, they've put it on the Cadillac XLR convertible and the STS sedan.

    Maybe by the time they got to the refreshed DeVille, they got it right. They sure seemed to take a milder approach. Sheet metal angles are less pronounced. And while the modern, vertical headlights and prominent Cadillac grille are there in a familiar presence, the combination this time is upscale, not jarring.

    The back of this new car also is nicely done. There's a long, formal rear uncluttered by the license plate, which has moved below, to the bumper. The overall style here reminds me of an earlier Cadillac Eldorado, which I had liked, too.

    What else is new?
    Of course, there's more to Cadillac's largest car than the new look.

    There are new, more ergonomic seats, upscale, clean interior, updated suspension tuning and the first-ever 18-inch factory wheels.

    There's a new name, too: DTS.

    It follows the nomenclature that Cadillac started to adopt some four years ago when it introduced its CTS entry luxury sedan. So the DeVille name is gone. By the way, DTS may sound familiar. It was the name of one of the trim levels of the DeVille in the 2005 model year.

    Also noteworthy: Starting manufacturer's suggested retail price for the 2006 DTS is $41,195. This is $4,850 less than the base, 2005 DeVille and makes the base DTS less pricey than many full-size, luxury sedan competitors such as the 2006 Lexus LS 430, which starts at more than $50,000.

    At introduction, the DTS even had a lower starting MSRP than the Lincoln Town Car—by some $800. The DTS will be available in dealerships this fall.

    Still front-wheel drive
    Unlike the major competitors, Cadillac's big car remains front-wheel drive, even as new rear-wheel-drive sedans such as Chrysler's 300C have become strong sellers. Some drivers prefer rear-wheel drive for its predictable, sporty character and feel it belongs in large-sized cars.

    Still, Cadillac's DTS offers the cushioned, quiet ride that buyers in this segment seek.

    Even in the test DTS with performance package and new 18-inch wheels, the car sort of bobbed up and down over sizable highway expansion cracks, but I was never jolted. The DTS seemed to absorb much of the impact from potholes, too, and there was no roughness conveyed to passengers.

    Long straight stretches of road were delightful, because the 4,000-plus-pound DTS sometimes seemed to skim the road surface lightly, rather than heave itself along.

    But in mountain twisties, I readily noticed the back-and-forth weight transfer going on as this more than 17-foot-long auto took a left-hand curve, then a right-hand curve. The tires didn't seem to be particularly performance-oriented, as they chirped easily in these maneuvers.

    Front suspension is an independent MacPherson strut design with sizable stabilizer bar, while the rear uses an independent multi-link design and stabilizer bar.

    Overall, the ride is quiet. Even with semi-trailers driving nearby on a freeway, I could talk in conversational tones to passengers. I didn't notice much road noise, even with the larger tires, and wind noise seemed mild.

    Cadillac retains the two versions of Northstar V8 for this car that were in the 2005 DeVille, and power has been subtly tuned.

    The base, 4.6-liter, double overhead cam engine generates 275 horsepower at a lower, 5200 rpm now, rather than the 5600 rpm of last year. Torque is a healthy 292 lb-ft at 4400 rpm for noticeably quick get up and go.

    But the uplevel V8 that comes with the performance package has more horsepower—291. Peak torque is 286 lb-ft at 4400 rpm and came on smartly—and always smoothly. The engine sounds had a satisfying, big-engine quality to them but didn't deter from the comfortable, luxurious ride.

    Note the DTS powertrains compare with the 239 horses and 287 lb-ft at 4100 rpm in the Lincoln Town Car with 4.6-liter V8. The Lexus LS 430's 290-horsepower 4.3-liter V8 provides 320 lb-ft of torque at a low, 3400 rpm.

    Fuel economy isn't great in this big-sedan segment, and the DTS is estimated to carry a rating of 17 miles a gallon in city driving and 27 mpg on the highway. This is a bit less than the 18/25 mpg of the LS 430.

    I wish the DTS came with something other than its 4-speed automatic transmission. It dates back to the early 1990s, and while it has shown to be durable, it doesn't include a shift-it-yourself manumatic feature, much less a higher number of gears that could improve fuel economy and responsiveness.

    The Lexus, for example, has a 6-speed automatic. The long-running Town Car retains its four speed.

    Seats for five or six
    The DTS is one of the few cars on the market where you can get six seats.

    And of course, the back seat is a highlight. There's good room for three adults to sit back there without them having to squeeze tightly against each other. The middle passenger, however, has a slight hump to contend with in the middle of the rear floor and also doesn't have a height adjustable head restraint.

    Note that the Town Car still is wider than this car, so hip and shoulder room in the Town Car's back seat are a bit more.

    Dimensions for the new DTS are pretty close to that of the 2005 DeVille. Overall length of more than 17 feet, for example, has grown just 0.6 inch. And while the DTS is nearly an inch taller than its predecessor, front-seat headroom remains the same and back-seat headroom is reduced 0.3 inch.

    Cadillac officials said they provided about an inch greater track for the front seats to go forward and back, but measured back-seat legroom is 41.6 inches now compared with 43.2 inches in the 2005 car.

    I expected the DTS trunk to be larger than 18.8 cubic feet. The trunk opening is nice and wide, but the trunk seems a bit shallow and total cargo room is less than the 21 cubic feet in the Town Car.

    Also, I wasn't quite sure why a couple exterior items on the DTS were sloppily done. For one thing, when I drove behind a DTS, I had an unsightly view of the car's exhaust system—specifically where the pipe comes back from the front of the car and splits into two to route to two mufflers and four tailpipes. I kept wondering why all this wasn't tucked up under the car. Alternatively, I wondered why the rear bumper didn't descend a bit lower to reduce this view.

    And the window details were odd in the DTS. As I walked up to the car from the outside, I could see window sealing and other trim items in one corner of every door window. This cluttered area was all under the glass, and it was something I hadn't noticed in other luxury cars.

    About those features
    Night Vision, an option that helped drivers see obstacles at night and in foggy conditions, is no longer offered. Officials said few consumers—only 5 percent or so—bought it.

    I liked the high-grade Tehama leather on the DTS seats for more than just its quality looks and seeming durability. The test car with this leather didn't have quite the pungently sweet leather smell as many other Cadillacs I've been in, and I appreciated that this smell was toned down. The Tehama leather, by the way, was a DTS exclusive when the car was introduced.

    I also appreciated that Cadillac officials got rid of front-seat shoulder belts that used to be attached to the seats. They never felt like they fit me as well as those that are anchored on the car body pillar between the front and rear doors. This now is the anchoring point used in the DTS. Still, Cadillac might want to adjust it some because in the test cars, it didn't adjust high enough to comfortably accommodate my 6-foot-4 driving partner.

    Other standard DTS safety equipment includes anti-lock brakes, stability control, six airbags and improved structural reinforcements. But some safety items available on other luxury cars aren't on the DTS, even as options. For example, BMW is adding an automatic brake drying system to its sedans to help ensure good brake performance in wet weather, and Mercedes-Benz and Lexus have pre-collision safety systems that help prepare passengers and the vehicle for impact during an impending crash.

    Indeed, the DTS arrives in showrooms without a factory-installed rear entertainment system. Officials said they're still studying their choices for this feature.

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  18. Link: http://www.edmunds.com/insideline/do/News/articleId=107058

    SHANGHAI — Two Ferrari 612 Scaglietti models took off this week covered in confetti and surrounded by drummers and dragons as part of the Ferrari 15,000 Red Miles.

    The Ferraris, driven by teams of Chinese and international journalists, will spend the next month driving to the far corners of China, returning to Shanghai on October 30.

    The Italian automaker claims the event is the first ever tour of China sponsored by a car manufacturer. The tour celebrates 2006 Italian Year in China and promotes the upcoming 2006 Winter Olympics in Torino, Italy, via stickers on the cars' windshields. The tour is supported by the China National Tourism Administration and Fiat China.

    The event also promotes Ferrari in China. The automaker has 10 Chinese dealers and expects to sell 80 vehicles there this year. However, in the next couple of years, as wealth continues to grow in China, Ferrari expects the country to be its fifth or sixth most important market.

    What this means to you: First we send our cars to China, and now we spread our showmanship and public relations antics throughout the country.

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  19. Link: http://www.edmunds.com/insideline/do/News/articleId=107063

    LUTON, England — You know that sinking feeling when you scrape your expensive alloy wheel along the curb while parking? Now there's a clever alternative from General Motors' U.K. Vauxhall arm that won't burn such a hole in your wallet.

    Vauxhall has introduced an innovative "fake alloy" that looks like an expensive aluminum wheel but costs a fraction of the price to fix. That's because the "alloy" is in fact a five-spoke steel wheel, finished with an easy-to-replace plastic cover that looks just like an alloy wheel. It's called the Structure wheel and is fitted as standard to the Exclusiv trim line in the Vectra model line, the car that forms the basis of the new Saturn Aura.

    Vauxhall says the cost of replacing the wheel cover after a curb crunch is less than $30 — about a quarter the cost of having a scratched alloy wheel refurbished by a specialist and a tiny fraction of the cost of a new alloy if the wheel is too badly smashed to be repaired.

    "Wheel covers are much easier and cheaper to replace, of course, but all style-conscious drivers lust after the sleek looks of alloy wheels," the company said in a statement.

    The entire wheel assembly is only marginally heavier than the equivalent 16-inch alloy wheel.

    What this means to you: A sensible alternative to alloys, but are alloys aimed at people who are sensible? You do the math.

  20. Link: http://www.detnews.com/2005/autosinsider/0.../E04-298488.htm

    GM scales back outlook for big SUVs

    Company says gas prices, changing tastes will reduce demand for such vehicles.

    By Christine Tierney / The Detroit News


    General Motors Corp. tamped down expectations for its next-generation large sport utility vehicles coming out early next year, saying high gas prices and changing tastes were eroding demand for vehicles in that segment.

    "We're not anticipating that the market will reach or exceed its prior peak," Paul Ballew, GM's executive director for industry analysis, told analysts Tuesday. "Given all the alternatives out there, given the uncertainty on gas prices, given some image factors, we think it's appropriate to plan in a more conservative manner and to assess the market potential for us in volume levels that don't take us to our prior peak."

    But he said GM would continue to dominate the large SUV segment and benefit from sustained demand for large luxury SUVs, such as its Cadillac Escalade.

    Despite high gas prices, demand has held up for full-size pickups, which account for more than two-thirds of GM's large SUV and pickup volumes. New competitors are crowding the field, but growing sales of four-door pickups have bolstered prices, Ballew said.

    GM has portrayed the new SUVs and pickups as central to its turnaround effort in North America, where the automaker has lost $2.5 billion in the first half of the year.

    CEO Rick Wagoner said the company is making progress turning around its money-losing North American operations and some key new cars are selling well.

    GM officials attributed weakening demand for large SUVs to the fact that its own models, such as the Chevrolet Suburban, were aging and about to be replaced.

    "It's a concession to reality by Paul Ballew that this sector has seen its peak," said auto analyst David Healy at Burnham Securities. "Ford has been talking about this for some time, but GM has been in denial on the subject up until now."

    GM says the typical large SUV buyer can afford the increase in gas prices. But some customers may be less comfortable with gas guzzlers.

    GM's large SUV sales peaked at 505,000 units in 2001 and 2002, but have slipped to around 435,000 on an annual basis this year. Its large pickup sales have risen steadily from about 845,000 in 1999 and are on track this year to top 1.1 million.

    You can reach Christine Tierney at (313) 222-1463 or [email protected].

  21. Link: http://www.autoindex.org/news.plt?no=1199

    Ford has unveiled the striking iosis concept car – a vehicle that defines an exciting new design direction for Ford of Europe. Building on the style of the Ford SAV Concept shown at the Geneva Motor Show earlier this year, iosis demonstrates Ford's new 'kinetic design' philosophy. The car will debut at the 2005 Frankfurt Motor Show.

    "iosis is more than just a show car, it is sending a message about how Ford of Europe's future design will be defined,” says Martin Smith, Ford of Europe's Executive Design Director. "It sends a bold message because our future products will be bold."

    (Iosis: An alchemic term referring to the final stage of the transformation of base metal into gold)

    Energy in motion
    With 'kinetic design', the Ford of Europe design team has embraced the marque’s core values in an expressive, new design language. iosis expresses this language in its ultimate form. Kinetic design visualises Ford's acclaimed driving quality – it expresses energy in motion.

    The foundation for this new design language is modern vehicle architectures derived from Ford's 'shared technologies' strategy. Designers now have the freedom to develop very different models and designs from these shared component sets. 'iosis' demonstrates how the same component set used for the SAV Concept shown at Geneva can be applied to an entirely different type of vehicle.

    In the case of iosis this language is applied in its most muscular form as expressed by the full surfaces spanning taut, dynamic feature lines. Strong shoulders supported by sharply defined undercut lines further support this muscular stance.

    To emphasise the athletic proportions of the body the principal surfaces are precisely sculptured, which is most evident from above when a clearly defined three plane plan view can be identified. At the front this elimination of imprecise rounded forms has the effect of visually shortening the front overhang.

    Overlaid on these well defined sculptural forms are clearly recognisable graphic elements. Prominent among these is the distinctive daylight opening area with its characteristic upward tick at the rear. On iosis the new face of Ford is represented by the familiar Ford graphic of an inverted trapezoid air intake, in this case placed below a bold, chromed grille.

    Strongly drawn lamp graphics at front and rear are further identifiable elements with the headlamps also echoing the upward tick seen in the DLO. The precise detailing of the rear lamps and the chamfered lower corners of the rear glass combine to form another clearly identifiable graphic that defines the rear of the car.

    This complex surfacing and careful attention to graphic forms contributes to the tense, muscular stance of iosis. This is enhanced by precise detailing that is evident in the jewel-like featuring in the lamps and the wide, strong rocker panels. Exciting, new wheel designs with design cues drawn from the graphic elements seen elsewhere on the car are a final, vital element of the overall 'kinetic design' story. On 'iosis' this feature is expressed in a typically strong way with 20-inch wheels, milled from solid aluminium billets, featuring a contrasting polished and anodised finish that accentuates their three dimensional design.

    The strong sculptural forms, clearly recognisable graphic elements and fine detailing that are defined so strongly on iosis will be applied in varying ways on all future Ford of Europe models.

    Dramatic inside
    The interior design of iosis follows the dramatic themes of the exterior, while retaining an inviting ambience. The unique angled pivoting door arrangement gives complete, uninterrupted access to the interior, and ensures there is an instant visual link between the interior and exterior.

    All the sections from the instrument panel through to the centre stack and through to the console reflect the dramatic forms of the exterior. The instrument panel itself is a slim and complex form that sweeps around the front occupants of the vehicle.

    These forms are complemented by a selection of trim materials and colours that interprets the dynamic sporty exterior in a particularly modern way. By combining futuristic materials such as rubber and aluminium with luxurious materials, like leather, an ambience has been created that matches a technical character with sophistication.

    An ultra modern steering wheel fashioned from solid aluminium with contrasting orange glove leather grips and a graphite metallic leather airbag pad is matched by the Focus World Rally Car inspired sequential gear shifter.

    Together they embody all the themes running through the interior: contemporary craftsmanship, high quality materials and a touch of surprise-and-delight technology, with the starter button mounted beneath a flip lid on top of the shifter.

    The driver's cockpit is dominated by a prominent instrument binnacle housing a cluster of analogue instruments. Their chronograph precision is balanced by a high definition LCD display, reconfigurable for the navigation system or views from three rearward facing cameras.

    Eye-catching seats with skeletal frames featuring a ribcage and vertebrae structure are fashioned from aluminium and formed rubber. Separating the front seats is a 'flying bridge' centre console. The air vents featured on the facia and the centre console have a twist control that unfurls the vanes in a way that mimics those of a jet fighter’s afterburners. This imagery of a jet’s thrust is highlighted in the doors by aluminium inserts which flow and taper away from the vents.

    Neoprene is used extensively in the interior finishing in three colours: dark charcoal, "oxygen" - a metallic grey - and a strong shade of technical orange. There is also a unique leather finish that has a subtle, graphite metallic look. For the floor, conventional carpeting has been replaced with a more rugged, structured weave with technical silver highlights.

    Innovation
    iosis features a number of design innovations. The dramatic angled pivoting door arrangement features doors constructed from carbon fibre for lightness. The doors are powered by rams that swing them upwards and outwards via a system of sophisticated hinges that ensure additional support isn’t required when the doors are open.

    There are no conventional door mirrors on iosis. Mounted in the rear valance is a camera to complement those on each door . The exterior cameras are pieces of precisely machined aluminium, swept back to further underline the car’s visual appearance.

    The front lamps have an inner circular turning led for low beam with a vertical day time running light, separating it from the turn signal on the outer edge. Beneath these lighting elements are ten main beam leds, emerging when lit from tubes like a series of lasers. This look is echoed in the rear light cluster with tail lights organised in a circle with a flattened top, flanked to the outside by the indicators and inboard by the stop lights.

    Inside iosis, the centre stack houses docking points for a pair of memory sticks. It is possible that rather than using a conventional key or even keyless entry, a memory stick could be used that as well as acting as a security device, would also contain the driver’s personal preferences for driving position, audio settings, screen configuration, etc.

    Another surprising feature of the interior is the extensive use of electroluminescent foil to illuminate the doors and ceiling. In addition to being very package-friendly, it emits a gentle, even light and can be cut into any shape.

    iosis will make its world debut on the Ford stand at the IAA Frankfurt Motor Show, which opens to the public on September 15 th 2005.

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  22. Link: http://www.autoindex.org/news.plt?no=1198

    Taking centre stage at this year's Frankfurt Motor Show is Mazda's latest design concept, Mazda Sassou. Conceived and designed at Mazda's European Design Centre in Frankfurt, Germany, it is a lightweight, urban vehicle for young, first car customers that makes every day city driving fun, highly practical and economical. A sleek, three-door hatchback, it employs evolved Zoom-Zoom exterior design language with youthful lightness and surprising hidden features. These, combined with advanced interior systems using a USB stick key and an ingenious rear seat morphing system, hint at where Mazda might be heading with a future B-segment vehicle.

    Mazda Sassou is the first design concept from a unique approach to show cars for Mazda Motor Corporation this year at three major motor shows - this year's IAA, the Tokyo Motor Show in October and the 2006 North American International Automobile Show next January.

    "This is the first of a number of concept cars to be designed consecutively at our regional design centres, namely: Frankfurt (Germany), Yokohama (Japan) and Irvine (California)," says Moray Callum, Executive Officer in charge of Design at Mazda Motor Corporation. "However, despite the design environment in which it may be conceived, you will intuitively identify that this is a car from Mazda. Its characteristics being uniquely Mazda; reflecting the essence of Zoom-Zoom, something we have communicated throughout the World".

    "Mazda Sassou was designed to appeal to young, first car-buyers" said Peter Birtwhistle, Chief Designer at Mazda Motor Europe GmbH. "It is a look over the Mazda horizon and what it proposes is new and exciting. It is the result of asking ourselves what stimulates young Europeans today. We feel that they would ideally prefer a vehicle that supports and expresses their lifestyle and at the same time would meet the changing demands of the growing European B-segment. Sassou, then, not only evolves Mazda small car design in a lightweight, fun-looking B-car package, it also represents a new way to express some traditional automotive attributes and provides a first Zoom-Zoom driving experience for young buyers."

    The name "Sassou" is a Japanese term that was chosen because it means having a positive state of mind, of looking to the future with optimism. On the horizon, then, is something positive and exciting. Mazda Sassou is not only an advanced evolution of Mazda's Zoom-Zoom design language, but is a symbol of the forward-thinking optimism of the entire organization as communicated by its recently announced Mazda Momentum business plan.

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  23. Link: http://www.detnews.com/2005/insiders/0508/30/C01-297366.htm

    U.S. automakers shouldn't let fuel break become crutch


    By Christine Tierney / The Detroit News


    At first glance, the new U.S. fuel-economy rules appear to be a lucky break for Detroit. Instead of pushing for major improvements in fuel consumption, the National Highway Traffic Safety Administration is proposing an 8.5 percent increase in the fuel-efficiency of light trucks over four years. Big guzzlers like General Motors Corp.'s Hummer H2 would be exempt, at least until 2011.

    Transportation Secretary Norman Mineta says the proposal will save fuel without compromising safety -- as if fuel-efficiency could only be achieved by reducing vehicle weight.

    Environmentalists are disappointed, but for GM and Ford, the modest requirements come as a relief. Both companies are losing money on their U.S. operations, and it's unclear whether new models can stem the decline in their market shares. GM is preparing to roll out redesigned large sport utility vehicles and pickups, and Ford is launching cars in segments where Japanese automakers have made themselves at home.

    Last week, Moody's Investors Service joined Standard & Poor's and Fitch Ratings in downgrading GM and Ford credit to junk.

    Both automakers are now drafting restructuring plans that will include job cuts, plant closures and major shifts in the way they do business.

    Imposing stringent fuel requirements would saddle Detroit's Big Two with additional costs -- the last thing they need.

    "We recognize that financial difficulties currently exist in the motor vehicle industry, and that a substantial number of job losses have been announced recently," says the Transportation Department proposal. "Accordingly, we have carefully balanced the cost of the rule with the benefits of conservation."

    But this short-term break risks turning into a long-term handicap if U.S. automakers treat fuel-efficiency as a secondary priority.

    Except for Ford, they're already missing out on a booming niche by lagging the Japanese in offering gasoline-electric hybrids.

    In Germany, where gas costs double what it does here, automakers have surmounted the disadvantage by refining diesel technology. Today's cleaner and quieter diesel engines are 20 to 30 percent more fuel-efficient than gas engines. Ford and GM rely on European partners to provide diesel motors for their operations in Europe, where one in two new cars runs on diesel.

    Hydrogen technology sounds fantastic but it's a ways off, and no one knows how the market will shake out. Will hybrids capture a big chunk of the market? Could diesels take off in the United States after cleaner diesel fuel becomes available next year?

    Detroit's automakers haven't felt much urgency up to now to boost fuel efficiency for the U.S. market, where gas prices have spiked in the past only to subside afterwards. But there's no guarantee that they'll slide back.

    The United States is still the world's biggest oil consumer. But over the next five years, most of the increase in global demand is expected to come from emerging economies -- and China already has a ravenous appetite for oil.

    You can reach Christine Tierney at (313) 222-1463 or ctierney@ detnews.com.

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