AUTOMOTIVE NEWS

PARIS SHOW: PSA shows diesel-electric hybrids

2008-10-03T05:17:00.002-07:00

PSA Peugeot Citroën has launched a new diesel-electric hybrid system, the 'HYmotion4' all-wheel drivetrain, which is destined for "mid-sized and executive" Peugeot and Citroën models scheduled for launch in 2011.

Unveiled at the Paris show in the Peugeot Prologue and Citroën Hypnos concepts, HYmotion4 is claimed to deliver an "unrivalled" combination of driving performance and fuel efficiency. The 200hp powertrain in the Prologue family car achieves up to 68mpg and emits 109g/km of CO2.

The system uses a rear-mounted electric motor to drive the rear wheels while the diesel engine powers the front pair, providing a new type of all-wheel drive.

Citroen said the new technology gives drivers the advantages of all wheel drive, such as increased safety under conditions of reduced grip, without any of the usual drawbacks of increased weight and higher fuel consumption.

HYmotion4 technology is based on a parallel full hybrid design using existing powertrain sub-assemblies. In the engine bay, it combines a two-litre HDi diesel engine with FAP particulate filter, high-power stop-start system, six-speed compact automated manual gearbox plus the high-torque, high-power electric motor mounted at the back.

By 2011, PSA expects to have over a million Peugeot and Citroën vehicles on the road with start-stop systems.

PARIS SHOW: Mitsubishi launches redesigned Colt

2008-10-03T05:17:00.001-07:00

Mitsubishi launched its next generation Colt for Europe today at the Paris show ahead of market launches starting later this month.

As with the outgoing model, all cars will be built at the automakers' NedCar plant in Born, Netherlands, with production starting this month.

After 267,000 sales and a conquest rate of 80%, "Mitsubishi Motors has wished to capitalise on this success and follow up with a grown-up - but still distinctive - product," the automaker said at the show.

Styling is more in line with the brand's latest identity (sharper new design and signature 'jet fighter' grille), market positioning (new Ralliart sporty models), latest market trends (low-emission 1.1 and 1.3 Clear Tec variants due on sale early next year), more consistent (less distinction between three- and five-door variants than before), and "more mature" (perceived quality, cargo flexibility, comfort features, NVH, driving dynamics), Mitsubishi said.

The new Colt is in a highly competitive sector here in Europe where a roster of new or updated competitors "tends to crowd a stable volume of 4,000,000+ units a year".

The Colt accounts for about 65,000 of Mitsubishi Europe sales of around 250,000 units a year and will be offered with 1.1- 1.3- and 1.5-litre engines as before.

The new Clear Tec versions will have a new low-CO2 package which includes automatic stop & go (AS&G) and regenerative braking, reducing CO2 emissions by about 10%. A dedicated flexfuel (FFV) variant will also be included in the Clear Tec line.

Mitsubishi said Colt Clear Tec models will be the B-segment low emission equivalents of its new C/D-segment Euro 5 diesel Lancer, with the automaker's new in-house-designed engine, set for launch next spring.

At the other end of the range, new Ralliart 150ps 1.5-litre turbo models have been added in both three- and five-door forms.

These build on the redesigned model's stronger structure with Ralliart suspension updated for sharper driving dynamics, including reduced body roll thanks to a thicker front stabiliser bar.

The Ralliart replaces the previous three-door-only CZT model and adds a five-door version expected to account for 40% of the sporty models' volume. This has slightly more compliant suspension than the three-door.

While European, Japanese and Korean rivals offer diesel engines in the B segment, MME reckons its 1.1-litre 75ps, 1.3-litre 95ps and 1.5-litre 109ps petrol engines plus the upcoming low-emission variants will be sufficient.

"The combination of the feasibility to upgrade the previous 1.5 engine to clear Euro 5 [emissions compliance], the rather low volume of diesel Colts sold since 2004 (only 13% of the mix) and the ever increasing retail price of diesel fuel eating away most of the cost benefits to the customer, all led Mitsubishi Motors to the decision to drop diesel power altogether from the next generation Colt range," the automaker said.

The low-CO2 Clear Tec engines will go on sale in spring 2009.

PARIS SHOW: GM shows low-CO2 Insignia

2008-10-03T05:16:00.001-07:00

After recently announcing a Corsa ecoFLEX with 75hp, 1.3-litre CDTI engine, emitting 109 g/km of CO2 and a 110hp, 1.7-litre Astra model with a 119g/km rating, General Motors Europe is showing a prototype Opel/Vauxhall Insignia ecoFLEX model in Paris.

GME said that, unlike its many competitors, the new Insignia variant is not a low-end model, but "a car that combines powerful propulsion and driving fun with ultimate efficiency".

The standard model already has a drag coefficient of only 0.27 but the ecoFLEX model has modifications to reduce road and wind resistance giving a cleaner .26 coefficient and a quieter cabin, said to be the quietest Opel ever. The new model has fuel-efficient Michelin Primacy HP tyres developed specifically for the car.

A two-litre, 160hp, single turbo diesel with innovative 'clean tech process' to maintain the lowest possible emissions over its life span is fitted. The zero to 100km/h (62mph) acceleration time is 9.5sec and top speed is 218km/h.

Maximum torque of 350Nm is available from 1,750 rpm, and can be increased for 15sec to 380Nm via an 'overboost' function.

GM said today it was still developing the latest Insignia but was confident of a CO2 emissions rating "well below 140g/km" when sales start.

Like other Insignia models, the latest ecoFLEX variant meets Euro 5 emissions rules. Sales with hatchback or sedan body styles start "during the course of 2009", GM said.

PARIS SHOW: Citroen concept is a Playstation star

2008-10-03T05:13:00.000-07:00

Citroen claims its 'GTbyCitroen' concept unveiled in Paris today "is the first ever car to be specifically designed to bring the virtual and real worlds together".

Show visitors can 'drive' the car in a 'true to life simulator' on the automaker's stand.

The car, a joint venture between Citroën and the makers of Gran Turismo, was created for the fifth game in the multi-million selling Playstation series.

The concept is almost five metres long and uses race car technology including 21-inch, diamond-effect aluminium wheels, gullwing doors, over-sized rear end with mobile spoiler, gaping air intakes and flat underside. Blue LED headlamps and slim-line carbon fibre rear view mirrors are fitted.

The cabin is finished in dark colours with two padded black leather racing seats with four point harnesses. There are copper and steel trim inserts and the instruments include a red LED head-up display, allowing drivers to focus on the race track.

In the game, the car has a fuel cell-powered electric drive train and is emission-free.

Kazanori Yamauchi, president of Polyphony Digital and the concept's creator, said: "GTbyCitroen shows how the worlds of virtual and real-life motoring can join together to create a truly innovative partnership. To see the [concept] take shape in our game studios and then for real has been a truly unique experience - as our work normally stays in the digital world."

IRELAND/GERMANY: VW takes over distribution

2008-10-03T05:12:00.000-07:00

Responsibility for importing, distributing, retailing and servicing Volkswagen, Audi, Skoda and Volkswagen commercial vehicles in Ireland changed hands today (1 October).

The transfer from O´Flaherty Holdings to Volkswagen AG followed an agreement reached between the two firms in January 2007.

Former Kia UK and Ssangyong UK executive Paul Willis took up his new post as managing director of Volkswagen Group Ireland today as the new importer named its board of management: Paul Burke, director of Volkswagen commercial vehicles; Fintan Knight, director of Audi; Colin Sheridan, director of Skoda; Philip Sheridan, director of Volkswagen passenger cars; Andreas Duebler, director of group service; and Wolfgang Weisse, chief financial officer. John Hayes was named deputy director of Audi and Tom O'Connor deputy director of VW cars.

"Our vision for the group in Ireland is straightforward; first class levels of customer service and satisfaction, development of our individual brand values and expansion of the market shares of our brands. We have a first class team in place at all levels to build on the solid foundations which have been laid over many years" Willis said.

Ireland is an increasingly important market for the group with year to date sales of 31,567 vehicles and a market share of 17.9%.

"For Volkswagen AG the transfer of the import business demonstrates a clear commitment to the Irish market," the automaker said.

US: Hino officially opens assembly plant

2008-10-03T05:11:00.000-07:00

Toyota group truck unit Hino Motors has officially opened its US assembly plant.

Hino Motors Manufacturing USA in Williamstown, West Virginia, is the firm's first wholly-owned truck assembly facility in the country.

The new factory began production last November and has now assembled about 1,000 Class 4 to 7 units for customers in such sectors as residential/commercial moving, armoured car service, beverage distribution, and wrecker service.

The plant employs 105 people full-time and HMM has invested about US$18,000,000 in the plant and equipment to date.

Hino will soon begin assembling trucks in Colombia in a $20m project with Mitsui and Colombia's Praco-Didacol Group, just-auto's local correspondent reported on Monday.

PARIS PREVIEW: BMW readies two new SUVs

2008-10-03T05:00:00.000-07:00

BMW will unveil its X1 'concept' - which looks all but production ready - at the Paris motor show on Thursday.

"BMW is offering an outlook at the world's first sports activity vehicle in the premium compact segment," the automaker said.

The new SUV will be assembled in Graz, Austria, by Magna Steyr and BMW said production should start within a year.

Magna Steyr confirmed earlier it would also build a similar model for BMW's Mini brand on the same platform.

The current, larger BMW X3 is made in Graz but the next generation of that car will be built alongside the X5 and X6 at the automaker's plant in the US.

BMW said on Wednesday that the X1 is built on a new platform derived from that of the 1-series hatchback/coupe/convertible model line and will come with 120i (170bhp) and 130i (265bhp) petrol engines, 120d (177bhp) and 123d (204bhp) diesels and 'xDrive' four-wheel-drive.

The closely-related Mini Crossman (same underpinnings, different engines) will also be unveiled in Paris.

At 4,457mm (175.5in) long, the X1 is 108mm (4.3in) shorter than the X3. Wheelbase is 2,760mm (104.4in).

RESEARCH ANALYSIS: Thailand’s emerging eco-car industry

2008-10-03T04:59:00.001-07:00

he Thai government in 2007 announced a package of incentives designed to stimulate a new phase of growth in the country's automotive industry. The incentives package for 'eco-cars' has already attracted substantial interest from international OEMs, writes Tony Pugliese.

Through the Ministry of Industry's Board of Investment (BOI), the Government is offering up to eight years' corporate tax breaks and duty-free import of related machinery and equipment to companies investing in the manufacture of small cars. The BOI set out the minimum investment requirements and specifications for the car, dubbed "eco-car" due to its low fuel consumption and emissions specifications.

The BOI hopes to repeat the success it had in developing a globally-competitive one-tonne pick-up truck industry in creating a new automotive product niche. By specifying the latest European standards in terms of fuel consumption, emissions and crash-testing, the BOI hopes to secure access for its eco-cars to the world's largest regional small-car market. Most eco-cars produced in Thailand are expected to be sold in Asia and Australia, however.

Domestic demand for eco-cars expected to be strong
Domestic sales are expected to account for a significant proportion of output. The BOI expects domestic demand for small, fuel-efficient cars in the US$10-12,000 price-range to be significant. Leading sub-compact cars currently available in the Thai market, the Honda Fit and Toyota Yaris, have minimum retail prices of US$14,000 and US$15,500 respectively.

In tandem with the eco-car programme, the BOI in 2007 announced a new package of incentives for prospective manufacturers of large motorcycles (above 500cc) - a segment that has yet to be developed significantly in Southeast Asia. The BOI is also making significant efforts to attract investment in support industries, such as in up-stream steel and other raw materials production and automotive component manufacture.

The Government has also launched a number of biofuel incentives in 2008 designed to reduce the country's dependence on fossil fuels. The timing of these announcements has left vehiclemakers somewhat dismayed, as they came after most companies had already submitted their eco-car investment proposals.

825,000 in new car capacity approved so far
So far, seven global vehicle manufacturers have been granted permission by the BOI to carry out their proposed investments in new eco-car manufacturing plants - each with a capacity of at least 100,000 units per year. A total of 825,000 units of new vehicle production capacity have been approved by the BOI, and an eighth proposal submitted by Volkswagen awaits approval. The eighth project would bring total new small-car capacity to close to 950,000 units - similar to the country's total pick-up truck production in 2007.

One of the BOI's specific requirements for eco-car investments is that actual annual production must reach 100,000 units within five years. On the basis that all seven of the already approved eco-car programmes do meet these minimum production stipulations, annual eco-car production would exceed 700,000 units by 2016. Around one-third of output is expected to be sold in Thailand. The first model, from Honda, is expected to be produced at the end of 2008.

While global demand for fuel-efficient cars is rising sharply as oil prices continue to spike, it is conceivable that not all eco-car manufacturers will meet their production and sales targets. Tata Motors looks the weakest of the group, with negligible sales volumes across the ASEAN region, including Thailand, and a poor brand image outside India. All other prospective eco-car manufacturers have strong global distribution networks and will likely do well.

Thai vehicle production forecast at over 2.1m by 2016
Thai vehicle production is forecast to exceed 2.1m units by 2016, provided that most eco-car programmes go according to plan. This would represent a 60% increase on the 1.3m vehicles produced in 2007. Some erosion will occur between vehicle segments, with conventional small cars coming under pressure as the lower-cost eco-cars become widely available across Southeast Asia. Eco-cars are expected to compete closely on price with pick-up trucks, but any sales trade-off is likely to be limited due to the significant difference in specifications and end-user requirements

Guangzhou Auto buys Fiat's Alfa 166 platform

2008-10-03T04:45:00.000-07:00

SHANGHAI -- To develop its own brand, Guangzhou Automobile Group Co. has bought a large sedan platform from Fiat Group Automobiles S.p.A., say industry sources.

Guangzhou Auto has bought the platform of Fiat's Alfa Romeo 166 large four-door sedan. The car was discontinued in Italy in spring 2007.

Italian design consultancy Stile Bertone in Turin is styling Guangzhou Auto's sedan based on the Alfa 166 platform.

Comau Engineering in Turin is working on the vehicle engineering and development.

A senior engineering executive from Guangzhou Auto declined to confirm the deal. Asked if the company is developing its own brand car based on a purchased platform, the executive said, "It is possible."

A source at Fiat says: "Guangzhou Auto is using our platform to develop their own brand."

Guangzhou Auto announced plans to build a full range of passenger vehicles under its own brand last year. The automaker said it was investing 6.8 billion yuan ($916 million last year) to launch its own brand of passenger vehicles by 2010.

The company said its first model would be a sedan "between the intermediate and limousine level," which is expected to hit domestic China markets in 2010.

The front-wheel-drive Alfa Romeo 166 is 4,720 millimeters long, 1,800 millimeters wide and 1,420 millimeters high, sitting on a 2,700 millimeter wheelbase.

Guangzhou Auto is now building a car plant and an engine plant. They will each be able produce about 100,000 units per year in 2010.

In the second stage, vehicle capacity will be expanded to 200,000 while engine capacity will be increased to 250,000.

Guangzhou Auto said, "The cars will carry our own powertrains."

Speaking in an earlier interview, Huang Xiangdong, deputy general manager and head of the company's r&d team said: "We will develop several platforms and have several series of cars in the future. Thus we will have a steady flow of new models in future."

In July 2007, Fiat and Chery Automobile Co. signed a memorandum of understanding to form a 50-50 joint venture to produce Alfa Romeo cars in China.

Nevertheless, this Fiat-Chery cooperation has not been finalized yet, and industry sources now fear it will never start.

But any cooperation with Guangzhou Auto will not threaten Fiat's relationship with Chery, Paolo Arpellino, Fiat's chief of China operations said in an earlier email.

At present, Guangzhou Auto operates joint ventures with Honda Motor Co. and Toyota Motor Corp. Guangzhou is a big state-owned automaker in China.

US: Lexus signs Friend for broadband channel show

2008-09-28T07:13:00.000-07:00

Actress Lisa Kudrow (who starred in long-running US sitcom 'Friends' as the slightly flaky/hippy blonde) is launching an 'improvisational comedy', titled "Web Therapy," on L Studio, a new broadband channel developed by Lexus. The series is one of 30 original video segments featured on the channel, which hosts an eclectic collection of original films, live-action shows, documentaries and comedy programs.

"Connecting with Lexus gave us a chance to develop an idea we've wanted to do for a while -- that's truly designed to be web content. It's a great opportunity to be part of such a unique experiment in entertainment," says Kudrow.

The series has been created specifically for web broadcast and features 15 episodes about Fiona Wallice (Kudrow), a therapist of unspecified credentials.

Wallice launches a three-minute therapy practice as a way to cut to the chase, since "fifty-minute sessions involve a lot of self-indulgent talk about thoughts and feelings...there's only about three minutes in there where some real work is being done." Fiona, self-absorbed and self-promoting, is NOT a good listener, and her approach to therapy -- from interrupting to making snap judgments -- leads to comical sessions with her unfortunate clients. The cast of clients include improvisational actors Bob Balaban, Jane Lynch, Rashida Jones, Tim Bagley and Dan Bucatinsky.

"Lisa Kudrow's unique brand of smart, offbeat comedy is exactly the type of content we strive to showcase on L Studio," states Mark Templin, Lexus group vice president and general manager. "The idea behind L Studio was to create an online space -- not unlike a traditional production studio -- which would provide a platform for high-quality, thought-provoking content that invites dialogue and is constantly evolving. We're thrilled that Lisa was intrigued by this concept and chose to join us in this experiment."

Also set to debut on L Studio on Oct. 6 is "Puppy Love," a scripted anthology created by Amy B. Harris ("Sex and the City," "The Comeback"), that 'sheds a new light on dog lovers and the people who love them'.

In addition to "Web Therapy" and "Puppy Love," L Studio says it will showcase never-before-seen features from the worlds of art, culture, design, science, entertainment, architecture and beyond, intended to inspire and amuse.

No sign-up is required to view L Studio videos, forward to a friend or view forum discussions and comments. Visitors may also create a profile to become a member and begin interacting with other participants and the artists on the site. For more information, or to begin viewing content, visit www.LStudio.com.

If there are scenes in these programmes requiring autos, we think it's a fair bet Lexus cars will figure.

BELGIUM: Pfeiffenberger to head Lexus in Europe

2008-09-28T07:12:00.000-07:00

Toyota Motor Europe (TME) has appointed Mr Andy Pfeiffenberger as Vice-President of Lexus Europe, effective 1 September 2008.

Mr Pfeiffenberger, formerly Vice-President of Toyota Motor in Russia, will oversee the further development of the Lexus brand in Europe. He succeeds Karl Schlicht, who has managed the Lexus brand since 2005 and will assume a new global executive role, effective January 2009.

Mr Pfeiffenberger hails from the United States but has spent most of his career holding international posts across Japan, Europe and North America. Since joining Toyota Motor Corporation in 1986, he has held senior positions in Corporate Affairs and Public Relations, Marketing Communications, Sales Operations and General Management. From 2003 until 2004, he was a core member of the launch team for Toyota's youth brand in the US, Scion.

In August 2004, Mr. Pfeiffenberger was appointed Vice-President of Toyota's Russian sales arm, OOO "Toyota Motor", responsible for Sales and After Sales operations in Russia, Kazakhstan and Belarus.

In related changes, Mr. Tor I. Berge, ex-President of Toyota Norway, has been appointed Vice-President of Toyota Motor in Russia, while Mr. Lars-Erik Aaroy, formerly TME Director of Toyota Sales Operations, has assumed the role of President, Toyota Norway.

Lexus sold 53,810 vehicles in Europe in 2007, up 87% from 2005. This year the brand has reported January to August sales of 31,940 vehicles - down 13% on the same period in 2007 - against a worsening economic backdrop and tougher external pressures. The company says that despite this, Lexus Hybrid Drive (LHD) continues to outperform and exceed expectations with hybrid models (RX 400h, GS 450h, and LS 600h) representing over one-third of total Lexus sales. Almost 70% of RX customers are now choosing hybrid over petrol.

GERMANY: VW showcases new 1-tonne pickup

2008-09-28T07:11:00.002-07:00

Volkswagen has revealed the fourth model in its commercial vehicle line-up with the debut at the IAA in Hanover this week of an all-new pickup concept.

The new model will go into production at the end of 2009 and will be built at Volkswagen's 'Pacheco' plant in Argentina and introduced initially to markets in Europe, South America, South Africa and Australia.

The pickup is all-new in the Volkswagen Commercial Vehicles line-up and is the first commercial vehicle to be designed under Volkswagen Group design chief, Walter de Silva's command. As such it exhibits what is referred to as 'historical DNA' - design elements which link it to other group models and give it a distinctive yet familiar appearance.

The concept measures 5.18 metres in length and is 1.9 metres wide, and with four doors and four seats it is ideal for recreational or business use. The pickup also has the ability to take a standard-sized Euro pallet sideways in the flat cargo bed.

New common rail turbodiesel engines will be fitted.

The pickup on show at the IAA has been designed for use as a 'Search and Rescue' (SAR) vehicle by lifeguards and was conceptualised following consultation with emergency services as well as in-house emergency vehicle specialists.

US: Detroit close to aid package approval

2008-09-28T07:11:00.001-07:00

The US auto industry is on the verge of securing up to $25bn in low interest government loans to help US automakers modernise plants to build more fuel-efficient vehicles.

The House of Representatives approved a measure - included in a larger, must-pass spending bill - on Wednesday that would fund the low interest financing. The Senate plans to follow through swiftly on the legislative package and President George W. Bush is expected to sign off before Oct. 1.

While Detroit has lobbied hard for the finance in recent weeks, representatives of the Big Three continued to insist the package did not represent a bailout.

The loan programme would provide low-interest credit for up to 30% of the cost of retooling facilities to build hybrids, plug-in hybrids, electric cars and other alternatives.

US: Sales trend: get ready to revisit February '93

2008-09-28T07:08:00.000-07:00

This month's new light vehicle sales (including fleet sales) in the US are expected to be 1.05m units, a 19.7 percent decrease from September 2007 and a 15.7 percent decrease from August 2008, according to Edmunds.com.

"February 1993 was the last time that fewer than one million new vehicles were sold in a month, and we're coming remarkably close to that volume again," observed Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. "Traditionally, October sales are even worse than they are in September, so we don't likely have much to look forward to next month."

"The automakers and dealers tell us the credit crunch is the number one reason for the drop in sales. People want to buy cars but can't get financing," commented Michelle Krebs, Senior Editor of Edmunds' AutoObserver.com. "Plus consumer confidence, which is waning in light of the near-collapse of the financial sector, is another critical factor that just isn't there."

The combined monthly U.S. market share for Chrysler, Ford and General Motors (GM) domestic nameplates is estimated to be 47.1 percent in September 2008, down from 51.9 percent in September 2007 and up from 45.7 percent in August 2008.

Edmunds.com predicts Chrysler will sell 101,000 units in September 2008, down 36.5 percent compared to September 2007 and down 7.5 percent from August 2008. This would result in a new car market share of 9.7 percent for Chrysler in September 2008, down from 12.2 percent in September 2007 and up from 8.8 percent in August 2008.

Edmunds.com predicts Ford will sell 137,000 units in September 2008, down 25.1 percent compared to September 2007 and down 9.6 percent from August 2008. This would result in a new car market share of 13.1 percent of new car sales in September 2008 for Ford, down from 14.0 percent in September 2007 and up from 12.2 percent in August 2008.

Edmunds.com predicts GM will sell 255,000 units in September 2008, down 23.9 percent compared to September 2007 and down 17.0 percent from August 2008. GM's market share is expected to be 24.3 percent of new vehicle sales in September 2008, down from 25.6 percent in September 2007 and down from 24.7 percent in August 2008.

Edmunds.com predicts Honda will sell 119,000 units in September 2008, down 6.1 percent from September 2007 and down 18.7 percent from August 2008. Honda's market share is expected to be 11.4 percent in September 2008, up from 9.7 percent in September 2007 and down from 11.8 percent in August 2008.

Edmunds.com predicts Nissan will sell 83,000 units in September 2008, down 11.5 percent from September 2007 and down 23.1 percent from August 2008. Nissan's market share is expected to be 7.9 percent in September 2008, up from 7.2 percent in September 2007 and down from 8.7 percent in August 2008.

Edmunds.com predicts Toyota will sell 176,000 units in September 2008, down 17.5 percent from September 2007 and down 16.9 percent from August 2008. Toyota's market share is expected to be 16.7 percent in September 2008, up from 16.3 percent in September 2007 and down from 17.0 percent in August 2008.

THE WEEK THAT WAS: Nissan's Indian takeaway

2008-09-17T20:15:00.000-07:00

The first fruit of the Nissan-Suzuki small car joint venture was revealed this week as Nissan Europe announced the Pixo ahead of its Paris debut.

It looked familiar, and so it should - it's a renosed variant of the redesigned Alto also destined for a Paris reveal. Suzuki's no stranger to such deals - it shares a B-segement model with GM Europe and builds minicars for rival brands to sell in Japan - such so-called 'OEM' deals are very common in that segment. Suzuki has also rebadged its previous Hungarian Swifts for Subaru to sell as the Justy but now Daihatsu does the honours.

We'll hear more from India before too long as the Suzuki-Nissan JV will also produce the next Micra (European version of the Japanese March). And, of course, it's now a major export base for Hyundai, whose new i20 comes from there as well.

Energy companies are not popular in the UK right now, as they hike electricity and gas prices by huge amounts at least twice yearly amid accusations of profiteering. So EDF was looking for coverage of a more positive kind this week as it launched plug-in hybrid trials with Toyota. As our environment correspondent noted, it's as much about driver behaviour and expectations as the technology.

Renault announced a new Megane a little more toned down than the controversial second-gen model (the hatchbacks anyway) and it looks pretty classy. Then it confirmed a long-heralded proposal to axe 4,000 jobs, hopefully voluntarily, and that led to what appeared to be token short stoppages yesterday.

Amidst all this fun and excitement, our researchers beavered on. Matthew Beecham has put roof systems under his microscope and his report is well worth a look.

US: Chrysler offers dealers 'all-new Internet approach'

2008-09-17T20:13:00.000-07:00

Chrysler says it will provide its dealers with an all-new set of industry-leading Internet marketing tools. The new direction was developed as a joint effort with Chrysler LLC and the Chrysler Dealer Internet Advisory Committee 'to help dealers who want to excel as interactive dealers'. The first phase of this new approach includes both dealer websites and an Internet lead service.

The all-new dealer websites are designed to drive more Internet leads, provide dealers with 'unparalleled' customisation options and 'achieve greater optimisation on search engines'.

Chrysler, Dodge and Jeep website visitors will be able to easily access dealer content, including inventory, local messages, dealer special offers and related information. The sites will be rolled-out to dealers across the county in a phased approach between October 1 and the end of the year.

"The way people shop has changed dramatically in recent years. Chrysler understands today's consumers well. These new tools represent a fundamental shift in the way we go to market," said Deborah Meyer, vice president and chief marketing officer, Chrysler LLC. "Because our brand and dealer websites will be fully integrated, consumers will now be able to move more easily through the shopping experience and our Dealers will be able to respond faster to them."

Chrysler says the all-new Chrysler Internet lead service will offer dealers the highest quality Internet leads generated by independent automotive websites at a price that is 30 - 40 percent below retail lead costs. Benefits to dealers include high-quality leads that have been filtered and de-duplicated, which will be sent directly to dealers' lead management tool of choice. To ensure dealer satisfaction, all dealers will receive a free 30-day trial of both programs. There is no long-term commitment required for participation. Once dealers have enrolled, they may opt-out of the service at any time with only 30 days notice.

"We were allowed to start with a clean sheet of paper to develop this fresh and new approach," said Chuck Sullivan, director - interactive, Chrysler LLC. "We carefully studied digital best practices across many industries to design an industry-leading program.

PARIS PREVIEW: Ssangyong readies car concept

2008-09-17T20:12:00.001-07:00

SsangYong will unveil a new compact passenger car concept at Paris.

The C200 is an urban compact SUV and the first vehicle from the automaker - owned by China's SAIC - to feature a front-wheel drive platform and monocoque construction.

"It marks a new milestone in SsangYong's mid- and long-term strategy to strengthen its line-up and increase customer choice," the company said.

The C200 has a new six-speed manual transmission and 175hp two-litre diesel engine.

Although this platform can be used with front wheel drive, the C200 has full-time four-wheel drive technology for optimal driving performance.

It conforms with Euro V European exhaust emissions regulations.

US: IRS gives BlueTEC a helping hand

2008-09-17T20:08:00.000-07:00

Just in time for Mercedes-Benz's rollout of BlueTEC diesel vehicles in October, the US Internal Revenue Service (IRS) has granted Daimler the Qualified Alternative Motor Vehicle Credit, which qualifies the ML 320 BlueTEC, R 320 BlueTEC, and GL 320 BlueTEC buyers up to US$1,800 in tax credits.

The US Environmental Protection Agency (EPA) certified to the IRS that the Mercedes-Benz BlueTEC vehicles meet the strict emission requirements, a status thus far only granted to hybrid-electric vehicles.

The Mercedes-Benz BlueTEC clean diesel vehicles are the first diesel vehicles to be granted the tax credit.

"Diesel passenger vehicles are one important piece of the future technology puzzle," said Margo Oge, Director of EPA's Office of Transportation and Air Quality. "Clean diesel is a viable, efficient technology to help improve our air quality and energy security."

The IRS has determined that purchasers of the ML 320 BlueTEC may qualify for a $900 tax credit, purchasers of the R 320 BlueTEC may qualify for a $1,550 tax credit, and purchasers of the GL 320 BlueTEC may qualify for a $1,800 tax credit depending on their individual tax status. The vehicles, which are the first diesel passenger vehicles to meet all 50 state emissions requirements and get up to 600 miles to the tank, go on sale October 1.

While analysts have long hypothesised that so-called 'clean diesels' ought to do better in the US light vehicle market, their prospects have been clouded recently by a growing differential between diesel and regular gasoline pump prices caused by diesel refining capacity issues.

UK: Volvo Cars turns to locusts on safety

2008-09-17T20:07:00.000-07:00

Since the first single cell organism emerged from the primordial soup, nature has been testing, selecting and perfecting how best to help life survive. Along the way, nature encountered dead ends as well as many successes. Today, lessons learned from nature help scientists improve our lives with technologies like Velcro (inspired by burrs on seed pods), self-cleaning coatings for ship hulls from shark skin structures and neuromorphic computer chips.

Nature is a wonderful laboratory. "We learned of Dr Claire Rind´s, Newcastle University, UK, studies into the migratory African Locust, which showed that they tend to avoid bumping into each other during flights," states Jonas Ekmark, Preventive Safety Leader at Volvo Car Corporation. "Our original thoughts centred on pedestrian safety. If we could trace how the locusts are able to avoid each other maybe we could program our cars not to hit pedestrians." During the study, Dr Rind learned that visual input is instantly transmitted to the insect's wing nerve cells, seemingly bypassing the brain. Dr Rind calls this the Locust Principle.

"Locusts are quick reacting and have reliable circuits, they do their computations against lots of background chatter, much like driving around town," comments Dr Rind. Volvo wanted to learn if locust sensory-input routing methodologies could be built into a vehicle pedestrian safety system. The goal was to avoid hitting pedestrians. Primary to this research was to synthesise a locust algorithm that could be applied to a car. "As it turns out, the locust processing system is much more sophisticated than the hardware/software currently available. In the end technology was no match for nature," says Jonas Ekmark.

"What we learned was very encouraging. However, rather than wait for technology to catch up to Dr Rind's Locust Principle, Volvo created a pedestrian alert feature that will be introduced in the near future.

"When we started in late 2002, sensing and computational systems were rather weak. But technology is quickly catching up. Volvo City Safety has been launched as standard in the new Volvo XC60. At low speeds, City Safety is smart enough to bring the XC60 to a complete stop should the vehicle in front suddenly stop.

"Beyond City Safety our next step will be our first pedestrian avoidance feature," comments Jonas Ekmark. "Although City Safety is not related to our Locust research, we are confident that our first pedestrian auto brake feature will be very good at taking actions to help avoid hitting pedestrians," comments, Jonas Ekmark.

"While some interesting ideas came from this study, we still have many more years of research ahead to bring that small locust brain into our cars. We have found a lowly locust has beaten man, at least for now. Still, the big question remains: How do groups of locusts keep from bumping into each other? Maybe there is more to be learned? We will continue to follow interesting paths in our efforts to reach our safety vision; to design cars that do not crash," concludes Jonas Ekmark.

UK: Nissan launches all-new Murano

2008-09-17T20:03:00.000-07:00

Nissan is launching an all-new Nissan Murano, the second generation of a model that it claimes was key to establishing the entire crossover genre.

The new model sports a design that is an evolutionary progression on the original, but Nissan says every body panel is new.
Distinctive elements include pronounced wheel arches linked by similarly profiled sections at the bottom of each door for an added touch of ruggedness, side windows that taper more sharply into the roof line and a shallower headlamp profile that blends into the new chrome-effect grille. The redesigned tail includes triangular LED tail lights and a reprofiled tailgate.

A revised 3.5-litre V6 engine now delivers 256 PS; 0-62 mph in 8.0 secs and 25.9 mpg on the combined cycle. Some 0.9 seconds is shaved off the 0 to 62 mph benchmark - now 8.0 seconds - and top speed rises from 124 to 130 mph. Nissan says fuel consumption improves from 23.0 to 25.9 mpg combined, also reflected in carbon dioxide emissions that drop from 295 to 261 g/km.

The latest Murano is priced in the UK from £32,795.

A long wait for China to repeat fuel buying binge

2008-09-09T22:43:00.000-07:00

SINGAPORE, Sept 9 - China's nine-month auto fuel buying frenzy ahead of the summer Olympics helped lift global oil markets to records, but beleaguered bulls beware -- it could be years before conditions force it to launch another raid.

While an expected pick-up in crude oil purchases to feed new refineries should attest to the ever-growing demand in the world's second-biggest consumer, imports of diesel and gasoline will remain the exception rather than the rule as China maintains its focus on remaining self-sufficient in refined fuels.
With domestic inventories filled to the brim after a huge pre-Olympics stockbuild and amid signs of slackening demand growth, a return to the spot market appears remote for now. However, that risk may grow if refiners tap the brakes on investment due to low fuel prices set by the government.

"The massive import levels that we witnessed are not likely to be duplicated for a long time. The point about demand threatening to stall is a real important one," said U.S.-based independent analyst Paul Ting.

"Absolutely, and by far the most important thing to decipher is whether the most recent round of price increase has begun to nudge China towards the price-elastic region," he added.

Demand in the United States, which consumes about seven times more gasoline than China, has only begun to slow this year, after retail prices nearly trebled from 2004.

China's retail diesel and gasoline prices, closely regulated by a government anxious to avoid stirring any rural unrest, have increased only 70 percent over the same period.

By the end of this year, China will increase its refining capacity by an estimated 740,000 barrels per day (bpd), more than enough to meet oil demand forecast to grow about 430,000 bpd, allowing refiners to bring imports to a quick halt.

Data due on Wednesday should confirm that China imported a hefty 530,000 tonnes (128,000 barrels per day) of diesel in August, a last batch of purchases after buying a record near 1 million tonnes in July, rivalling the United States.

It also bought 210,000 tonnes (59,000 bpd) of gasoline last month, an unusually large volume in Asia although equivalent to only around 5 percent of U.S. imports, trade sources said.

But traders have said China will return to a net exporter of gasoline and much thinner imports of diesel this month.

After their last import binge in late 2004, refiners stayed away from spot markets for nearly three years, until last autumn's domestic shortage forced Beijing to arm-twist its state refiners into buying more product overseas.

"China's policy was and still is to maximise domestic diesel production and stay away from imports," said Kang Wu of FACTS Global Energy in Hawaii.

Since China slashed imports, prompt gas oil prices in the Singapore trading hub have slumped to a discount of more than $2 a barrel below forward months, the weakest in years.

INVESTMENT CURBS RAISE RISK

The self-sufficiency aim, however, faces real risks.

China's top refiner Sinopec said this month it would curb new investment a second time this year, due to earnings and capital flow pressures after its refining operation lost 46 billion yuan ($6.73 billion) in the first half due to soaring crude prices and low domestic fuel pump rates.

"China usually builds refineries just enough to cover diesel demand," said Yan Kefeng of Cambridge Energy Research Associations (CERA) in Beijing.

That opens the risk of shortages within three to five years, if demand rapidly accelerates again, as it did in 2003 and 2005.

In the short term, any suggestion of another increase in China's regulated fuel prices after June's 18 percent rise could trigger another brief round of buying. Many analysts expect another increase this year, although the sharp fall in crude prices since July may augur against that.

"Market players (in China) run their business on stocks. When they feel confident that the government will raise retail fuel prices, they will buy diesel and gasoline at whatever price and this pushes up apparent demand," Yan added.

SLOWER DEMAND

But before any buying happens, suppliers will need to whittle down stocks that stand at twice year-ago levels and are proving difficult to shift amid signs of slackening demand growth.

China's passenger car sales fell 6.24 percent in August from a year earlier to just below half a million units -- the first drop in more than two years and a sudden reversal from years of nearly unbroken double-digit sales growth.

And the worst power crisis since 2004 -- when a capacity shortage forced hundreds of businesses to buy stand-alone diesel generators that sparked the last spike in imports -- is quickly easing, relieving the threat of another power-fuelled binge.

"Maybe China doesn't need to buy diesel anymore. They switch the lights off now that the Olympics are over and they have their new refineries up and running," said a gas oil trader in Singapore. (Editing by Ramthan Hussain and Jonathan Leff) For More Information please Click

Global auto industry bets big on red-hot Brazil

2008-09-09T22:40:00.000-07:00

SAO PAULO, Sept 9 - Just a few years ago, most car manufacturers in Brazil were losing money and laying off workers in droves as the huge market they anticipated had not materialized.

But these days, business is so good that automakers are adding shifts and spending billions of dollars to increase capacity to keep up with demand in the South American country, which is riding its biggest economic boom in decades.
After three years of torrid growth, Brazil's car market is showing signs of cooling as rising interest rates start to crimp consumer demand. But analysts and industry players say the slowdown is unlikely to snowball into a slump because there is so much pent-up demand for cars in this vast country.

"Brazil is definitely a major part of the global chess game for the automotive industry," said analyst Guido Vildozo of U.S.-based consulting firm Global Insight. "And that's clearly reflected in the amount of investment that Brazil is getting."

With sales lagging in traditional markets like the United States, Europe and Japan, and even once-promising regions like China and India not living up to expectations, car makers are pouring money into Brazil.

The auto industry here is set to attract a whopping $23 billion in investments in the next four years, lifting overall capacity by 2.5 million vehicles to 6 million a year, according to the National Automakers' Association, or Anfavea.

U.S. and European manufacturers, which have long dominated the Brazilian market, are leading the spending spree.

General Motors Corp expects to invest about $3 billion over the next five years as Brazil has become an important engineering hub for the U.S. automaker as well as its third-largest market.

Ford Motor Co, which not long ago considered pulling out of Brazil altogether, plans to spend more than $1.6 billion in the next four years on product development and to double capacity at its engine factory. And Volkswagen AG will invest about $1.86 billion through 2011 in Brazil, where it now sells more cars than in Germany.

"Today, Brazil ranks second only to China among our most important markets," said Flavio Padovan, vice president for sales and marketing at Volkswagen's Brazilian unit.

Asian automakers are also looking to get in on the action. Toyota Motor Corp plans to build a $700 million plant in the state of Sao Paulo to boost its presence in Brazil, where its market share is just 2 percent. Nissan Motor Co said last month that it would start building passenger cars in the country for the first time. And Suzuki Motor Corp is set to reenter the Brazilian market in October.

ROADBLOCKS AHEAD?

The rush to invest in Brazil comes just as the market appears to be cooling. Car and truck sales slumped 15.1 percent in August from an all-time high in July, suggesting that a recent spike in interest rates to curb resurgent inflation is starting to hit the economy.

But even with the drop in August, sales are up a hefty 26.4 percent this year and are expected to finish 2008 with growth of 24.2 percent, according to Anfavea. Last year, sales jumped 29 percent, driven by rising wages and a credit boom that allowed many Brazilians to buy cars for the first time.

After such a long run of breakneck growth, automakers say a slowdown is to be expected. Consulting firm Global Insight forecasts sales growth of just 8 percent in 2009 and said it might taper off even further after that.

"Frankly, we don't see it as a big concern," said Jaime Ardila, GM's chief executive in Brazil. "The new rate of growth is much more sustainable long term, so we actually see this as a healthy process."

Still, other roadblocks may lie ahead. Last week, workers at eight auto plants briefly walked off the job to demand a pay raise. And union leaders warn that more strikes are likely if automakers don't agree to share more of their profits.

With interest rates poised to keep climbing and the economy losing some steam, some analysts also worry that automobile financing -- a key ingredient in the industry's revival in Brazil -- may start to shrink. Others fear that those who already financed a car may struggle to make payments.

While default rates on automobile financing have crept higher in recent months, at 3.7 percent they are still much lower than the 7.3 percent average rate for other consumer loans in Brazil, according to central bank data.

Lenders do not seem too worried about a spike in defaults. All the big private-sector banks in Brazil are expanding their auto financing businesses. And state-run Banco do Brasil is teaming up with South African financial group FirstRand in a joint venture to provide car loans.

"The fears about credit are a little overblown," said Rogelio Golfarb, director of corporate affairs for Ford South America. "Banks are realizing that automobile financing in Brazil is a great business to be in. for More Information Please Click

START YOUR OWN BUSINESS in 2008

2008-09-09T22:23:00.000-07:00

Make an investment in your future with The Ding King®. We are the trusted name that's recognized as the innovator of the auto appearance industry. The Ding King has a strong presence in the industry for over 15 years and will supply you with a proven business system to operate your own successful business. The Ding King is an automotive business opportunity for you to experience a career that involves making customers cars look like new again. The Ding King provides all the technical training, equipment, consumable supplies and field support so you can operate your own successful automotive appearance repair business.

Whether you’d like to work from a home-based office to be closer to your family, start a business part-time while you continue to work your current job, cut out travel time while still having a very professional and rewarding career, or you simply want to work hard for yourself and be rewarded for your dedication, business ownership might be ideal for you. Now is the time to explore your options if you’d like to become a business owner in 2008.

The Ding King business development training sessions are conducted one-on-one with specific counseling for your particular business. We have created a step-by-step program that teaches clients how to generate one-stop-shop accounts for both used car dealerships and the retail sector. This is an exciting and financially rewarding business for those who want to own their own business!

Be Rewarded For Your Hard Work and Dedication

“I worked in sales for nearly 15 years. I was top-ranked in my company and well compensated but I traveled 40% of the time, worked long hours, and ultimately brought a lot more money in for the company than I was seeing. Plus, I missed so many important events in my family members’ lives. I decided it was time to work hard for myself and my family. I started my search for a business to own on the internet and purchased a business opportunity and training program 6 months ago. Today, I am able to make my own schedule and I see a direct reward for my hard work and dedication. My business is doing great and I’m thrilled that I decided to become my own boss. Thank you Ding King for supporting me all the way.”

A Proven Turnkey Business

When exploring the type of business to own, it’s critical to choose a concept with a company that is supportive and experienced. The personal guidance and support provided by The Ding King’s Founder, Todd Sudeck is invaluable. Todd is very knowledgeable and is always available and will answer questions within the same business day. When it comes to training and promoting your new business, The Ding King is really a turnkey business system.

A Rewarding Business to Own

Who wouldn’t like to have dings, dents, scrapes and scratches removed for under a hundred bucks in less than an hour? Body shops charge 5 times what you will charge and you’ll finish a repair in minutes, not days or weeks. This is a very rewarding business for people who are willing to work diligently and take care of their customers in a professional manner.

Widespread Demand

Many of our customers complete training and call on used car dealers the very next day. Some advertise in one yellow page directory and gain all the clients they can handle. Others have plans to grow their business to help meet the massive market demand for their business’s services. A recent graduate of Ding King is Steve Kaneda who says, “I hope to have my first employee next month. With another employee, my business can grow even faster. I’m very pleased with The Ding King and with the support and guidance that their entire team has provided to me.”

Join The Ding King Team and Enjoy the following benefits:

* Growth-Focused Business Model
* Comprehensive Advertising Program
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* In-Depth Market Analysis
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* Extensive Training & Ongoing Support

Developing your own business requires a host of skills, everything from management ability, financial resources, marketing tools, and a strong service menu. It takes a serious commitment of time, energy and dedication to customer service to reach your goal.

The Ding King is seeking progressive-minded individuals who want to make this commitment and are willing to take an active, hands-on approach in building their own business. With Ding King’s comprehensive business planning assistance, technical and marketing support, and an established reputation, you have a distinct advantage over other service providers.

To help you maximize profits and gain a competitive advantage, we offer the highest quality reconditioning systems available.

As you can see, there is an enormous opportunity to target a wide variety of potential customers. The Ding King will equip you with all the tools and training necessary to succeed, plus you will receive The Ding King's time-tested and proven plan for success, which includes the industry's most complete Business Start-Up and Business Marketing Program.

When evaluating business opportunities, it is important to know that The Ding King Training Institute is the only State Licensed Company in the United States that operates four separate licensed training facilities. Whether you elect to receive your training in California, Missouri, Florida or Michigan, one thing is certain; you will go home with the confidence and knowledge necessary to succeed in operating your own business!

When speaking with your Ding King Representative, inquire about our special programs designed to 'jump start' your new business. for More Info please click

About Race Wave China

2008-09-09T21:43:00.001-07:00

Racewave Automotive Systems Co. Ltd. (RVAS) established in early 1990, RVAS has longstanding reputations as suppliers of quality automobile components. It focuses on R&D of automotive electric appliance. The factory of RVAS in China produces BCM, ECM, CAN Bus systems, GPS systems, electric switches, key systems and other control unit.
RVAS has a number of skilled and experienced engineers. In addition, RVAS has an automotive technology R&D center cooperate with HKR University of Sweden. The center has developed RV CAN Bus systems and the wireless key systems.
Integrating scientific research, development and production, RVAS is very competent in product designing & developing, and tooling designing & manufacturing. It is a nominated automotive parts supplier for automobile manufacturers in and abroad.
Since establishment, RVAS has been constantly introducing updated technology and advanced facilities to improve its products! designs and quality, so as to bring them in line with the requirement of international markets. With the advantage of high quality but low price, RVAS becomes more and more potent in competing with its rivals on the global arena. for more please click

THE WEEK THAT WAS: The 'affordable' hybrid comes closer

2008-09-08T22:40:00.000-07:00

The big news this week was a first look at Honda's new 'affordable' hybrid promised to us with "no price premium" over traditional cars from rival manufacturers.

That's still a little on the vague side but, certainly, price is an issue right now. Here in the UK, Honda Civic hatchbacks run GBP14,500 to GBP19,000 but you don't get to step on the hybrid sedan (no hatch) ladder until GBP17,100, or over GBP19K if your fancy runs to leather and navigation. Toyota's Auris ranges from GBP12,300 to GBP18,500 but the Prius hybrid - roughly comparable on size and cabin quality - runs from GBP17,900 to GBP20,800.

A GBP15,000 Insight hatch - bang in the middle of the five-door C-segment most popular in Europe, and nicely equipped with that reassuring 'H' on the grille - would surely hit a sweet spot here. It's good to see the name revived, too. I can barely recall trying the current Civic Hybrid but, from my consumer road testing days, remember the Insight as a funny little coupe with a profile like a Black and Decker Dustbuster, a tiny luggage area over a large pile of batteries and a lot of get up and go for the engine size. Only downside: a/c quit with the petrol engine which deliberately died as often as it could, like at a red light. Since then, clever supplier boffins have developed the electrically-powered compressor and many other improvements.

It'll be interesting to see, several generations on, what Honda's new take is like. And there's more to come - a sports coupe, more Civic hybrid models and a petrol-electric version of the new Jazz.

More cuts at a British luxury automaker today as Bentley takes a shift of Continental production out but 'banks' the hours and keeps the skilled workers on. Guys who can fit leather 'n' wood like that would be hard to re-recruit and retrain. Let's just hope, that for the likes of those at Crewe - and Solihull where Land Rover is also making cuts - that this cyclical biz of ours enters uptick mode before harder decisions have to be made.

So, just to really cheer you up, how about $US200 a barrel oil? That's the scenario analysts at Global Insight have been mulling over and put out a white paper. It could happen, of course. A little more niggle between Russia and former USSR satellites, OPEC twists the taps a little more towards closed, Condi pushes the 'Iran' button on the US missile launch console... Enjoy.

The Volvo Question also raised its head again this week as Fredrik Arp fell on his sword and Ford shifted European COO Steve O'Dell over to the hot seat in Sweden, and won't refill the vacated post. Rumours abound - Ford insists it will maintain and develop the brand but, after getting rid of, and good prices for, Aston Martin, Jaguar and Land Rover, would you?