By Chris Haak
05.13.2008
Toyota announced yesterday that it will open its newest North American factory, which is under construction in Tupelo, Mississippi, about five months later than originally planned. The plant had been expected to go on-line in either late 2009 or early 2010, but now the target launch is May 2010.
The plant was expected to build 150,000 Highlander crossovers per year, and its initial production capacity will also take a haircut, down to 120,000 vehicles. It's an interesting development because Highlander sales are actually UP 5.2% year to date during 2008, and fell only 1.5% during 2007 (and all of that decrease was attributed to the Hybrid model, which lost 30% of its sales during 2007). However, it's also not entirely surprising, because Toyota has some spare truck production capacity in the US at the moment, with its Princeton, Indiana and San Antonio, Texas plants churning out Tundras far below their capacities.
Toyota is actually fortunate that it is able to not open a new unneeded plant rather than being forced to shutter an existing facility, as all three of the domestic automakers have been forced to do several times over the past few years. Although automobile manufacturing efficiency depends in large part upon operating a plant at or near capacity (and sometimes slightly over it) for the facility to be profitable, Toyota has typically been able to manage this better than most. However, they did drop the ball in predicting demand for the new-for-2007 Tundra, against the backdrop of all of its major competitors being all-new within two years, plus record-setting fuel prices. It's still possible, of course, that Toyota will be able to eventually use some of its extra Tundra manufacturing capacity if the US economy, and more importantly the full-size pickup market, rebound in the coming year.
Back to the incomplete Mississippi facility, though: Automotive News reported today that other than the soft US auto market, Toyota also had other obstacles in the way of an earlier opening of its Mississippi plant: the company was having trouble recruiting skilled manufacturing workers, and the plant's original opening schedule would have forced it to build the current Highlander very briefly before switching over to the mid-cycle updated version.
Toyota's recruiting troubles are nothing new; they had similar problems at the aforementioned San Antonio facility that now builds the Tundra, but they did not delay the truck's launch. However, it may be a larger problem this time, because Toyota has decided that in order to keep its costs down, it will no longer pay workers close to the UAW pay scale, but more in line with local manufacturing wages instead. Instead of offering a new assembly worker $30 per hour plus benefits, they get $15-17 per hour with benefits. While that's still a half-decent starting wage, it's also not $30 per hour. On top of the obvious pay difference, Toyota is also running the risk of irritating its workers to the point that they feel they could do better financially with UAW representation; when Toyota was paying roughly the same as GM, Ford, and Chrysler, the UAW couldn't really offer a compelling reason for the workers to organize. It would certainly be an ironic twist if Toyota's attempt at labor cost savings resulted in higher labor costs because some of their lower-paid workers decided to vote for UAW representation.
Toyota already has a lot of production capacity in the US, and with the falling dollar, I'd actually be fairly surprised if the company didn't eventually shift more vehicle production from Japan to the US as the dollar continues to remain weak against other currencies. Many other manufacturers are bulking up (or initiating) plans to build cars and trucks in the US, mostly for cost reasons, so surely a company with Toyota's fiscal intelligence is aware of the cost advantages and will find a way in the next year or two to get its plants up to capacity, including the new one.
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Tuesday, May 13, 2008
Toyota Will Open Its Mississippi Plant Later Than Planned
Renault and Nissan to Challenge Tata in India
By Ian Grasso
5.13.2008
Things are getting really interesting in the $2500 dollar car market. Tata made worldwide news with the Nano, and is introducing it in the midst of millions of Indians leaving poverty. Renault and Nissan want a piece of what could be the single largest socio-economic migration in the history of the world, and to do it are teaming up with a relative unknown Indian partner.
That partner is Bajaj Auto Limited, a company few have heard of outside of the subcontinent. The company has actually been around since 1948, but until now their business has been focused on mass-market motorcycle and scooter sales.
While we can only speculate on the internals of the Nano’s coming competitor, it would seem that Renault and Nissan have some advantages over Tata. It has a 50% stake in what is basically a motorcycle company in Bajaj, but it has a great deal of international auto-making experience and a ready pool of suppliers in the region that Tata brought in to make its small car. In a way, the extensive cost cutting measures that Tata and its chief executive, Ravi Kant, forced out of suppliers is an advantage for Nissan-Renault. They use the same suppliers to build a cheap competitive car, slap an Indian name (Bajaj) on the car at home, and then use their international pull to export the car all over southeast Asia and the world with a Nissan or Renault nameplate.
On the other hand, Tata is the only one with a car right now, and will be in the proverbial driver’s seat by the time Bajaj gets a car out the door in 2011. They can sell volume units right now and gradually improve the Nano product line while they work out the kinks. Bajaj and Renault/Nissan will come to market with a brand new car that will have to offer more quality (and perhaps luxury) than the Nano did on its introduction – cutting into either profitability and/or sales.
And what about Suzuki who, along with its partner Maruti, is the largest automaker in India? Their current low cost offering, the Alto city car, is nearly twice as expensive as the Nano, and will presumably be pricier than the new Renault-Nissan-Bajaj car when it is introduced. The company just reported that its fourth quarter earnings were down by 34 percent and their stock price is suffering on the Indian markets. It seems as though they are being outflanked by both the domestic and international competition.
India is, along with China, the most interesting large car market. Things will only get more stimulating with the confluence of international and domestic competition and skyrocketing energy costs.
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Monday, May 12, 2008
Iraq Looks Good to Daimler
2008 Mercedes-Benz Actros05.12.2008
Does Daimler know something the rest of us don’t know?
Daimler has announced that they will open an office in Iraq this year. The office will be in Baghdad and Daimler stresses that it will be purely a representative office at first, but is also not coy about why they’re opening an office there. Daimler says that they see a return to normal conditions in Iraq on the horizon and they want to be well-positioned in-country when that happens.
Daimler already has solid ties to the Middle East, thanks to its largest shareholder at 7.2%, the Kuwait Investment Authority, and its healthy and growing business in the region, which includes headquarters in Dubai.
Ursula Mertzig-Stein, a Daimler spokesperson, commented that the company sees strong potential in the country for its truck division. Daimler is the largest producer of medium and heavy commercial trucks in the world. “We think the greatest demand will be for our commercial vehicles there,” Mertzig-Stein said. "Daimler intends to establish a corporate representative office in Iraq. We know that the Iraqi government will welcome this move, also because it demonstrates our confidence in the country's advancing normalization."
Of course, the executives at Daimler read the paper and watch CNN like the rest of us, so they are acutely aware of the potential problems in terms of doing any sort of business in Iraq. The company’s managers have taken part in meetings with U.S. Army personnel and Iraqi government officials with an eye towards assessing all the current negative and positive aspects of setting up an office in Baghdad. With that in mind, Daimler is quite unlikely to start putting up dealerships in Iraq anytime soon, or to bring their passenger-car line into the country. Whatever potential is in Iraq, Daimler thinks that potential will be all trucks for the foreseeable future.
Daimler has been in the news before recently regarding Iraq; in 2005, subsequent to the independent inquiry into corrupt business dealings with Saddam Hussein's regime, Daimler was on the receiving end of some very negative press. The inquiry, which ended up singling out over 2,000 companies that were involved in the United Nations' oil-for-food program, accused Daimler of giving kickbacks to the Saddam Hussein-led Iraqi government to secure government supply contracts. Since Daimler still owned Chrysler, the American auto manufacturer at the time, the incident proved to be doubly embarrassing to the German company.
The current move by Daimler is interesting on several levels. It represents Daimler’s desire to maintain a high profile in the Middle East, a region it believes to be a future high-growth area, and it also can be portrayed as affirmation from an independent third-party outside of the military/political orbit that the situation on the ground in Iraq is improving, and will continue to do so.
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Why Trading In Your Gas Guzzler May Not Make Sense
By Chris Haak
05.12.2008
Every time high gas prices are in the news, reporters inevitably find stories of people who are aghast at the prospect of paying $75 or $100+ to fill up the tank of their SUV or pickup every few days and want to trade their expensive, comfortable SUV in on a compact fuel miser that's half the size with double the fuel economy. While this may may make economic sense when you run the numbers in some situations, many of the anecdotes cited in the popular media are not financially prudent at all. My service to you is to point out one obvious truth: you can buy a heck of a lot of gas for $5,000, even at $4.00 per gallon.
Of course, high fuel prices pinch everyone, but folks who bought large, thirsty vehicles for image or convenience reasons rather than out of necessity for their family or business needs are mainly the ones who complain the loudest about how they want to trade in their Armada on something smaller. Of course, there is much more to the cost of owning and operating a vehicle than just fuel costs. Monthly payments, sales tax (in some states) maintenance, repairs, registration, and depreciation are other big-ticket items that car owners have to contend with. Paying attention to only fuel costs is doing yourself a disservice.
Let's take a few hypothetical examples of when it would and would not be cost-effective to trade down to a smaller vehicle. For the sake of simplicity, I'll even ignore registration, sales tax, maintenance, and repairs and focus solely on the purchase price, depreciation, and fuel costs for 15,000 miles at $4.00 per gallon based on the EPA-estimated combined fuel economy using the downward-adjusted 2008-equivalent figures.
For example, let's assume that someone bought a 2007 Chevy Trailblazer LS 4x4 a year ago for $28,000. According to Edmunds, this truck is worth about $16,000 today, one year into a five year loan. Assuming that the buyer put 20% down ($5,600), the original loan balance was $22,400 and the current loan balance is $18,347 (assuming 60 months @ 4.9%). Assuming that the Trailblazer got the EPA-estimated combined mileage of 16 mpg, at $4.00 per gallon and 15,000 miles per year, the annual fuel cost would be $3,750. Over five years, fuel would cost $18,750.
Then let's say the person wants to buy a new Chevy Malibu LS four cylinder for $20,000 and puts 20% ($4,000) down and finance the $12,000 balance. With the same fuel price and miles-per-year assumptions, and at its EPA-estimated combined mileage of 25 mpg, the Malibu's annual fuel cost is $2,400. Over five years, fuel would cost $12,000.
So, forgetting the purchase prices for a moment, the fuel cost difference is $6,750 over five years and $1,350 annually. That is $112.50 per month.
Now, we can't forget that to make up for the Trailblazer's $2,400 in negative equity (trading in the Trailblazer just one year into a five year loan) plus the 20% ($4,000) down for the Malibu means that you'll be shelling out about $6,400 in cash to get out of the 2007 Trailblazer and into the 2008 Malibu, and that's assuming that you move into a lightly-optioned Malibu. If you want more comfort/luxury features, you'll have to step up to a Malibu LT, and that means more cash out. In fact, over five years, the cash difference is negligible. You're also sacrificing the additional space and power that the Trailblazer could provide over the Malibu, not to mention the Trailblazer's superior all-weather capabilities.
Of course, after the five years have passed, the more efficient Malibu will have broken even cost-wise, but until the five year point, the Trailblazer's additional gasoline expenditures would roughly equal the cost to purchase the new Malibu.
There are other caveats associated the above example. Buying a used 2007 Malibu to replace the 2007 Trailblazer instead of a new 2008 model would make the cash outflow to purchase the more efficient vehicle much less. Also, replacing a guzzler with a more efficient car later in the guzzler's loan (not after just one year) would eliminate the negative equity. Of course, if gas prices go beyond $4.00 per gallon, the more efficient vehicle gets more attractive financially. Lastly, replacing a paid-off inefficient vehicle that was about to be replaced anyway with a more efficient one is a prudent financial choice, as well as a more earth- and resource-friendly one.
The bottom line is that buyers are doing themselves a disservice if they do not do some simple arithmetic before spending thousands of dollars to "save" money that may - or may not - actually result in money savings. Even if buyers do the economic analysis, there will still probably be many folks who decide that gas prices are going nowhere but up, and who are tired of the steady drip-drip of money for fuel coming from their wallets, so they take a financial hit to get out of the guzzler and into something more "politically correct."
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Sunday, May 11, 2008
Used Cars - Advice, Models that are Always Bargains, and, Actual Cars for Sale
All part of the service we provide here at Autosavant
05.11.2008
2006 Ford Fusion - one of the models we list as used car bargains
Just as an FYI, the “Used Car Bargains” and the advice about buying/selling a used car sections were updated and added to today. Want to take a look? Then simply click HERE, and scroll down the page a little bit. These sections are popular on the site, and a lot of our readers find them useful.
Second, we added a section several months ago where people can list their cars for sale online, and, wait for it – it’s free. Yes, free as in it costs you nothing. You don’t have to join anything or set up an account, either. Its pretty much no-fuss, no-muss in that regard. I had the extra bandwidth, so I figured what the heck, right? We haven’t done any advertising of the feature, but we’ve already gotten some listings from dealerships and individuals.
I mean, you can’t argue with the price, right? The worst-case scenario is that you don’t get a call on an ad that cost you nothing. The best-case scenario is that the car you’re selling is seen by an extra few thousand people that might not have seen it before. So, we’re hoping it continues to grow in scope. If you want to check it out, then click HERE – there is also a link for instructions on the page if you decide you want to list your car for sale on Autosavant. Take a look because even if you don't need to sell a car right now, you might know someone that does, and you can let them know about this option.
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Check Your Mirrors
By Brendan Moore
05.11.2008
DODGE started production of the 2008 Dodge Challenger Thursday, May 8, as the first car rolled off the production line at their plant in Brampton, Ontario. All 6400 cars slated for 2008 model production eligible for sale in the United States have already been spoken for, having been pre-sold months ago. Several hundred additional Challengers have also been pre-sold in Canada and Mexico and will be delivered to those locations in the coming months. The only question for Chrysler is, “what will happen to their 2009 production run”? The market is getting buffeted by both a drop in consumer spending and record jumps in the retail price of gasoline. The all-new 2008 Dodge Challenger top-of-the-line SRT8 shows up at Dodge dealers this soon with an MSRP of $37,995 USD. Performance targets for the all-new 2008 Dodge Challenger SRT8 include a 0–to-60 mph time in the low 5-second range, 0–to-100–to-0 mph in less than 17 seconds, a 1/4-mile elapsed time of less than 14 seconds, 60–to-0 mph braking distance of approximately 100 feet, and a skid pad performance of 0.88 g. Which is all wonderful, but let’s hope that the Challenger doesn’t turn out to be the absolutely right car at the absolutely wrong time.
TOYOTA issued a warning on earnings last week, saying that the Japanese behemoth expects
it’s first annual decline in profit in seven years. Toyota is having the same problems all the other auto manufacturers are having; surging raw material prices, savage declines in new-car sales and even greater declines in trucks and SUV sales, high gas prices and a waning U.S. economy. A Japanese yen that has gained over 11% against the dollar since October 2007 is also hurting Toyota, along with the other Japanese manufacturers. However, from my point of view, Toyota has a bigger problem long-term than its current difficulties. I have noticed that Generation Y does not exhibit anywhere near the slavish devotion to Toyota that large numbers of their parents do, and this is going to cause a problem for Toyota in the coming years in the United States. Whether it’s a VW or a Chevrolet or a Hyundai, the current crop of young people are more receptive to considering another brand. With even more brands (Alfa Romeo, Fiat, Chinese and Indian brands, perhaps Peugeot, etc.) soon to show up in the States, and resurgence of the domestic car companies, this could spell real trouble for Toyota in the next decade.AVTOVAZ, the largest car company in Russia, and soon to be in Renault’s orbit, since the French car maker is buying 25% of the Russian company, saw sales jump up 30 percent year-on-year in April 2008 to 67,000 cars, the company said in a statement last Monday. France's Renault, which is to pay $1.17 billion USD for the 25% ownership stake, plans almost to double car production at AvtoVAZ to 1.5 million units by 2014, including Lada and Renault models. And, of course, one of the first Renault models to be produced there will be various derivatives of the wildly-popular Logan. You can expect to see a much-improved Lada rolling off the production lines there in short order as well, although AvtoVAZ released sales figures showing that they shipped out 37,400 Ladas for export first quarter, which is pretty good for Lada and represents a 15% increase over the same quarter in 2007.
RALPH NADER and about 15 of his supporters picketed outside the NHSTA headquarters in Washington, D.C. last week, ostensibly regarding pending regulations about roof-crush standards. Four-time presidential candidate and grouchy old guy Nader said of the NHSTA, "It would be better to shut it down and start over." Nader, 74 years old, has stated in the past that he was the driving force in the formation of the NHSTA in 1966, but heaps scorn upon the agency these days. Nader says that the agency is way too cozy with the automakers and is a puppet of the Bush Administration, which cares little about consumer safety if business interests might suffer in the process of protecting the public. From the Nader for President website, posted on Friday, May 9: “Yesterday, we held a protest at the National Highway Traffic Safety Agency (NHTSA). NHTSA is the federal agency Ralph Nader brought into being more than forty years ago. It was set up to make cars safer. Instead, NHTSA has morphed into a consulting firm for the auto industry. Now, NHTSA is on the verge of issuing a rule that will deny roof crush victims their rights to seek justice and compensation. Yesterday, Ralph Nader, a group of auto safety advocates, and others gathered in the rain in front of NHTSA's offices in southeast Washington, D.C. to protest the auto industry's takeover of the federal auto safety.” There’s also a video of the protest on their site if you’re interested.
PROTON is still (amazingly!) a viable concern, and now they are planning to enter the Indian market. The struggling Malaysian auto manufacturer was rebuffed by Hindustan Motors of India and Sonalika Group, an industrial concern, in succession concerning a joint manufacturing venture, and is now resigned to going it alone in their quest to produce cars in India. Proton has subsequently started contract talks with Argentum Motors to assemble knock-down kits in-country so as to qualify as a domestic manufacturer. Despite being thwarted on the manufacturing side, Proton is reportedly making good progress in talks with both Mahindra Group and Hero Group regarding using their respective retail and marketing networks to sell Protons.
CHERY looks to enter the EU market through a side door called Turkey. On April 22, the Chery Group, China's largest vehicle manufacturer, announced that it now plans to begin production of its Kimo, Tiggo and Alia models in Turkey, in partnership with local carmaker Mermerler Group.
Zhou Biren, Chery's vice president, told the Turkish press the company is currently looking for a green field site for a new production facility, which would take 24 months from groundbreaking until the commencement of production and would have a starting capacity of 100,000 vehicles. The exact level of investment is not nailed down and is not expected to be announced until a feasibility study of potential partner Mermerler's production facilities is completed. "Being successful in Turkey will for us be a benchmark of our success in Europe," said Biren. "This is because Turkish customers have similar tastes to customers in the EU. For this reason, Turkey is the first step toward entering the European markets, which is our primary goal." Well, this “primary goal” is not exactly news, but the fact that Chery now plans to start in Turkey on their maiden trip through Europe is news.TOYOTA is raising prices on many of its Toyota and Lexus models in the U.S. The company’s costs have increased considerably as of late and the new pricing will reflect that reality. The price increases, which will start in the middle of May, include a hike of $200 on the 2008 Yaris sedan, boosting the cost of the base model to $12,425, with higher prices for models with extra features. The 2009 Camry will go up $200, to $18,920 for a model without any extras, the automaker's U.S. unit said in a statement released Friday. The base hybrid Camry, introduced as a 2007 model in late 2006, will cost $300 more, at $25,650, Toyota said. Toyota is also raising the U.S. prices of some Lexus luxury models. For example, the price of the Lexus IS 350 entry sports sedan will rise $300 to $36,305. The pricing of the 2008 Lexus IS F high-performance sports sedan won't change, Toyota said.
CHRYSLER is not high on the list of favorite auto manufacturers for the Union of Concerned Scientists (UCS) organization. UCS calls Chrysler’s recently-announced gas-price-freeze promotion an attempt to fool consumers into buying one of their poor fuel-efficient vehicles. Well, yeah. That is the goal. But, as we pointed out in our article about the program, its not a bad
deal if you really truly believe that the price of gasoline will drop precipitously again in a few years, and, you want to buy something now that gets 12 mpg. It’s not a great deal, but its not a bad deal. Of course, if the price of gas keeps rising, as almost everyone believes now, then it sure doesn’t make much sense long-term. Here’s what UCS has to say: “Chrysler is trying to pull a fast one on potential car buyers. It’s using this cynical deal to distract consumers from the fact that its cars get poor gas mileage. Rather than sticking customers with gas guzzlers, Chrysler should focus on delivering more miles per gallon. That would not only save their customers money at the pump, it would help cut America’s oil addiction and reduce global warming pollution at the same time. At the current price of $3.61 a gallon, the buyer of an average Chrysler vehicle would save $400 a year under Chrysler’s deal. But a mere 3-mpg boost would yield the same savings over the 15,000 miles per year typically driven in the first three years of ownership. Over the lifetime of a vehicle, such a fuel economy increase would save drivers more than $3,000. It wouldn’t stop saving drivers money after just three years. “Instead of gambling with Chrysler on the price of gas over the next three years, car buyers should go with the certainty of a fuel-efficient vehicle.”CONTINENTAL thinks it has a good shot at getting the contract to supply the battery packs for GM’s upcoming Volt plug-in hybrid. The battery and electrics manufacturer sees the contract as a marquee opportunity for their technology and is going after the Volt business hard. According to a Reuters article on the same subject, what with rising oil prices and heightened environmental concerns driving demand for electric cars, Continental sees the contract to supply the crucial component for the highly anticipated Volt as a major milestone, Wennemer said. "It is not going to be decisive for the future of our battery unit, but it would be very, very important for us to be the one," Wennemer said of the contract for the Volt, which is expected to go into production in 2010. "We think we have a good chance," he said. GM is currently testing two competing battery packs for use in the Volt, one supplied by Continental, using battery cells developed by Massachusetts-based A123 Systems, and the other supplied by a division of Korea's LG Chem Ltd.
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Friday, May 9, 2008
Fiat Considers Mexico Production for both South and North American Markets
05.09.2008
If you’re Fiat and you very much want to get back into the North American market with your Fiat and Alfa Romeo brands by late 2009, and you know bringing the cars over from Europe is not sustainable from a profit perspective, what do you do? What if you also have a red-hot existing market in South America where you need more production?
How about building a plant somewhere in the middle of the two continents? Say, somewhere like Mexico?
Good idea, right? Well, Fiat thinks so, too.
According to an article today in Automotive News Europe, Fiat is looking hard at Mexico as a location for a large plant that will supply cars to both North American and South American markets.
Fiat Group and Fiat Group Automobiles CEO Sergio Marchionne said last month that the company needs additional production capacity for the growing South American market.
“Where that capacity will come from is not yet decided. I think that it may be part of a North American solution, especially in terms of the introduction of the Alfa brand”, Marchionne said, according to the Automotive News Europe article.
As we reported earlier, Fiat is scouting various locations in the United States for a production site for Alfa Romeo. They have been pursuing a dual-track strategy regarding a U.S. production site so far.
The first choice is to buy a factory previously shut down by one of the Big 3. It is a buyer’s market, to say the least.
The second choice is for Fiat to expand one of the eleven Case New Holland plants that Fiat owns here in the United States. Fiat is holding preliminary talks with the different state governments in the states where the Case New Holland plants are regarding incentives and tax abatements in order to get itself the best deal.
The idea is for production to start in 2011, or 2012 at the latest. Annual production is forecasted to be 150,000 units annually, with some of the production slated to go to Europe. The proposed production site in Mexico is not projected to replace U.S. production, but rather, supplement it at this point. Of course, that can also change in the run-up to actual production decisions.
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Volvo Announces V70 R-Design
By Kevin Miller
05.09.2008
Volvo has introduced the V70 as its fifth vehicle available with an R-Design styling package. Joining the C30, S40, V50, and XC90 in the R-Design family, the V70 R-Design adds visual appeal to the capable yet un-exciting V70. Unfortunately, Volvo has not confirmed whether they will import the V70 R-Design to North America.
From 2004-2007, the previous-generation V70R was available with 300 HP, all-wheel drive, six-speed manual transmission, and a host of styling and equipment upgrades. While the 2009 V70 R-Design does without a power bump (the sole powertrain in the US remains the 235 HP 3.2 liter inline 6 mated to a 6-speed Geartronic automatic), it does get a lowered suspension with upgraded anti-roll bars. Hopefully this suspension will be the antidote to numb ride and uncommunicative chassis feel of the V70 we drove earlier this year.
Visual upgrades to the exterior include special 18-inch wheels, "silk metal" finish on the grille, mirrors, and fog lamp surrounds, black anodized side-window molding (replacing silver molding), body-color tailgate spoiler, chrome exhaust tip, rear bumper spoiler, and deletion of the standard luggage rails on the roof. Some of the interior goodies are blue-faced instrument dials, bolstered sport seats with contrasting leather pattern in Off Black and Ceramic White, leather-trimmed sport steering wheel, and aluminum pedals. These changes add character to a functional wagon which is otherwise visually bland.
While the V70 R-Design doesn't include any powertrain upgrades, the possibility of future powertrain enhancements does exist. Volvo offers a 268 HP turbocharged six and a 311 HP V8 in the S80, and that car is also available with all wheel drive. While the V70 is unlikely to be made available with AWD (because it would cannibalize sales from the XC70), there are rumors that the turbo six will be offered in the V70. This more powerful engine would be a welcome addition to the large wagon, and would help back up the R-Design's sporty appearance with a bump in performance.
In a recent interview with Automotive News, Doug Speck, the new President and CEO of Volvo Cars of North America conceded that sales of the V70 are well below target in the US. Part of the decline is because many traditional V70 customers are now buying the XC70, both because it has all-wheel drive and because it has more distinctive styling. With any luck, the more stylish V70 R-Design will be imported to North America; it would attract buyers with its subtle sport bodywork and lowered sport suspension, both of which are unavailable on the XC70. With even more luck, the wagon would also be available with the more powerful turbocharged six. Time will tell.
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Thursday, May 8, 2008
India Goes Big for Skoda Fabia
By Brendan Moore
05.08.2008
Skoda, Volkswagen’s value brand, is going great guns in India. They are doing so well that the Fabia, their most popular model, now requires a two-month waiting list in order to take delivery. For those of you unfamiliar with the Skoda Fabia, it is Skoda’s version of Volkswagen’s supermini platform.
All of Volkswagen AG’s production facilities in India are designed to build any of the corporate parent’s various brands sold in-country – Audi, VW or Skoda. In the next few years, all the three companies will collectively manufacture about 15 car models, ranging from the cheapest of the lot - the Volkswagen Up - to Audi's A8 luxury sedan. Skoda is now seriously considering shifting the production of the Fabia to parent company Volkswagen's (VW) Chakan plant in Pune in order to satisfy the pent-up demand.
Thomas Kuehl, member, board of directors (sales and marketing), SkodaIndia, said, "There is a lot of similarity between the Fabia and the Polo as both models are built on the same platform. We will look to have the Fabia built there."
The new engine available with the Fabia, a technologically advanced 1.2 litre petrol engine, will also be shared with VW's Polo hatchback, which will make its appearance in India in the second half of 2009. VW's plant will have an initial capacity of 110,000 units from two shifts, which represents a large volume of production in India at this time.
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Sports Car Specialists Jump on Green Bandwagon
By Andy Bannister
05.08.2008
Some unlikely car makers are suddenly discovering their green credentials, with Britain’s Lotus and Morgan now climbing on the environmental bandwagon.
Set to star at an event called the Sexy Green Car Show, being held at the Eden Project "eco dome" in rural Cornwall, UK, later this month, is a new Lotus research vehicle which could point to future ways of combining fuels to cut emissions.
The 270E Tri-fuel is the most powerful version yet of the natty Lotus Exige sports car, and runs on any mixture of gasoline, bioethanol and methanol. It is the latest research vehicle from Lotus Engineering, the consultancy division of Group Lotus plc.
Emerging technologies will allow alcohol fuels such as methanol, already a proven internal combustion fuel, to be made synthetically from CO2 extracted from the atmosphere. A fuel derived renewably from atmospheric CO2 would be a key piece of the jigsaw allowing society to transfer to sustainable, renewable, carbon-neutral internal combustion - or so the theory goes.
This technology is hardly round the corner, however - Lotus Engineering is researching the use of sustainable synthetic alcohols as future fuels for introduction within 15 - 20 years.
Another exhibitor will be Morgan, manufacturer of those oh-so-English traditional roadsters which seem to have been around since the dawn of motoring.
The Morgan LIFE car, described by the company as “probably the sexiest green car in existence” is a fuel cell-powered electric sports car built by Morgan Motor Company in conjunction with a range of partners.
Four stacks of fuel cells convert the hydrogen fuel into electricity to run a super efficient motor generator attached to each wheel. Energy recovered in braking is stored in ultra capacitors rather than batteries, and end to end the performance is estimated to be equivalent to a 150mpg petrol engine.
With a top speed of 85mph, 0-60 in less than 7 seconds and a 250 mile range, the mix of technology combines use of aluminium, wood and leather in what could only be a Morgan shape.
Less familiar is another name starring at the show, Axon Automotive, which hopes to "aim to manufacture the most fuel efficient cars in Europe". Axon is a specialist in carbon fibre Formula 1 technology and says this is now affordable for eco cars. The new Axon has yet to be unveiled except in an unpromising "teaser" shot. It is described as a multipurpose vehicle built for two adults plus two children plus luggage. Apparently it is a hatchback which can be converted into a small pick-up.
The theory here is that by making cars light and giving them good aerodynamics you can halve fuel consumption. Perhaps the future of sports cars in a CO2-sensitive world isn't as bleak as we have feared.
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Wednesday, May 7, 2008
A Rhapsodist of Motorcars
By Roger Boylan
05.07.2008
I’m a writer, and I’ve always liked cars–or should that be “but I’ve always liked cars”? Creative artists, as honorary members of the romanticized struggling classes, have been presumed–almost required–to be Luddites, antagonistic to such symbols of swinish capitalism as mere machines. How often has one heard the bien-pensant dismissing the subject of, say, cars, with an airy “Oh but it’s just a car,” or “But I don’t care about cars”? Note how many eco-exhibitionists, modern-day heirs to the Marxist-Bohemian mantle, drive as their symbols of class hideous old beaters that belch clouds of pollution into the globally-warming atmosphere. Their animus toward motorized vehicles, especially SUVs, is legendary.
So it’s a relief to come across a celebrated writer who loved cars and enjoyed being behind the wheel; and, one is tempted to say, what a writer, what a wheel! I refer to Rudyard Kipling, one of the pioneers of motoring, and his Rolls-Royce Phantom I. "Mr. Kipling," growled a contemporary curmudgeon, W. L. Alden, "has long been addicted to the motor car. I say it with pain and disbelief, for the motor car is to my mind the most detestable of inventions."
In 1902, the famous author of the Jungle Book, Kim, and Captains Courageous, went house-hunting in the south of England with Carrie, his American wife. They drove down in Kipling’s first car, a steam-powered American Locomobile whose sole attraction must have been (in clement weather) the experience of motoring in the open air. Its flaws included incredible slowness, unreliability, deafening noise, and a noxious smell.
Fortunately, the Locomobile held up long enough to take the Kiplings from London to the northeastern corner of Sussex, where they came upon, and fell in love with, Bateman’s, a handsome Jacobean (17th-century) country house that later became the setting for Kipling's story collection Puck of Pook's Hill (1906). Flush with Rudyard's earnings, they bought it on the spot.
But on each subsequent visit to Bateman’s, the wretched Locomobile broke down, so it was soon dispatched to Locomobile heaven (a very small place) and replaced with an elegant 2.4 liter, air cooled Lanchester.
Lanchesters were among the first gasoline-driven four-wheel cars in Britain and became known for their innovative engineering; indeed, Autocar magazine estimates that 18 of the 36 primary features of modern cars were developed by Lanchester. Kipling owned or borrowed several Lanchesters over the years, including a Ten, the Jaguar XJ of its day (a fitting comparison, since Jaguar later bought out Lanchester). He used them primarily for motoring holidays in France, his favorite country after his own.
Kipling subsequently became a motoring correspondent for the Daily Mail, an unusual situation for a Nobel Prize winner; a rough equivalent today might be, say, Harold Pinter doing a car column for the Independent. But he loved the job, and welcomed the distraction that cars provide from life's ironies and agonies. (He needed such distraction, especially after losing his son John in the trenches in 1916.) He became what A. N. Wilson, the novelist and scholar, calls "a rhapsodist of motorcars."
The 1920s were the post-Lanchester era for Kipling; he gave his heart to Rolls-Royce, "the only car I can afford," he said, referring to the marque's already-legendary reliability and solid construction. As part of his duties as motoring correspondent, he drove new Rollses over to France and down to the Rivera where, in the Roaring Twenties, there were plenty of buyers: 224 by mid-decade, including many luminaries of the smart sets chronicled by the likes of Somerset Maugham and Scott Fitzgerald.
In the garage at Bateman's, now administered by the National Trust, Britain's heritage conservation group, sits Kipling's last, and favorite, Rolls: the blue 1928 Phantom I that he doted on and drove along England's country lanes and the tree-lined highways of France until his death in 1936.
Early in his motoring career Kipling, who was an inexhaustible fount of productivity, wrote a series of poems on automotive themes that were also parodies of literary styles through the ages and collected them under the title The Muse Among the Motors. In this wry pseudo-Wordworthian verse, a dying chauffeur contemplates his death.
Wheel me gently to the garage, since my car and I must part—
No more for me the record and the run.
That cursèd left-hand cylinder the doctors call my heart
Is pinking past redemption—I am done!
They’ll never strike a mixture that’ll help me pull my load.
My gears are stripped—I cannot set my brakes.
I am entered for the finals down the timeless untimed Road
To the Maker of the makers of all makes!
Kipling once said that the motor car was a time-machine in which centuries slid by like milestones, revealing "a land of stupefying marvels and mysteries." I'll try to hold that thought on tomorrow's commute.
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