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Auto sales meltdown

Tomek — Mon, 07 Jul 2008 15:24:00 GMT

Where’s the bottom? Last year, I can remember an auto analyst saying that domestic automakers should hit bottom sometime this year and then begin to slowly rebound. Driving home after Tuesday’s announcement that June 2008 North American auto sales had plummeted 18.3% compared with June 2007, I heard another auto analyst predict on the radio that the Big Three can’t expect a turnaround until 2010. That’s assuming that Chrysler, which posted a jaw-dropping 35.9% plunge in sales for June, is still with us by then.

So when does the bad news end for Detroit? “We don’t know when it’s going to end.” Steven Landry, Chrysler executive vice president for North American sales told journalists in a conference call on Tuesday, according to a story on Freep.com by reporter Sarah Webster.

Not exactly reassuring news, but at least Landry was being honest. Even high and mighty Toyota saw its June sales drop by 21.1% which is small comfort for Detroit as it allowed General Motors to maintain its status as the sales leader in North America.

The good news, of course, is that automakers can’t make smaller, fuel-efficient cars fast enough. Unfortunately, turning around production at a company like GM is like turning around an oil tanker.

Imagine if domestic automakers had displayed a bit of vision a few years back and decided against milking the truck and SUV cash cows until the bitter end. They, like Honda, could have posted sales gains for the month of June.

Fasten your seat belts; I get the sick feeling that the bottom we hit before rebounding is going to be rock bottom.

Detroit 3 race to build fun, fuel-frugal cars

Tomek — Mon, 07 Jul 2008 15:18:00 GMT

In secure conference rooms, engineering centers and design studios across metro Detroit, Chrysler, Ford and General Motors are working to create a new generation of fuel-efficient vehicles without repeating the mistakes that crippled them when oil prices and emissions regulations shook their world in the 1970s and '80s.

They are honing new technologies, refining designs and scouring the Earth for fun, fuel-efficient cars they can build or sell in North America. From Chevrolet Corvettes and Ford F-150s to small cars engineered in Europe and Asia, every vehicle is being rethought as fuel prices skyrocket and new fuel-economy rules loom.

Haunting their efforts is the ghost of failures past. Detroit's automakers reduced emissions and fuel consumption in the '70s and '80s, but at the cost of style, performance, quality and reliability -- the things that make a car desirable.

The things that keep a car company in business.

An even playing field

Chrysler, Ford and GM can't afford to blow it again, and getting it right this time presents huge opportunities. Unlike the 1980s, when small Japanese cars started the race a full lap ahead of the Detroit Three, the new technical challenges are equally daunting for everyone. "They've all been dealt the same hand this time," said Michelle Krebs, editor of AutoObserver.com. "Now it's a matter of how they play it."

Every automaker is scrambling. Ferrari, for instance, just announced that it is eyeing two technologies GM and Volkswagen already offer and that Ford will use to boost F-150 fuel economy.

In labs and on test tracks around the world, GM and Toyota are racing to be first and best on the road with extended-range electric vehicles, cars that go up to 40 miles on battery power and use their engines only for occasional recharging.

Ford and GM have tapped their European operations for compact and subcompact cars like the Ford Fiesta.

GM's Asian engineering centers are working on a funky little Chevrolet based on the Beat concept shown at the 2007 New York Auto Show to challenge Toyota's hip Scion brand.

"Any manufacturer that doesn't make vehicles that are appealing and enjoyable will suffer," said Rebecca Lindland, analyst with Global Insight of Lexington, Mass. "Somebody else will build that car, and the American people will buy it."

The answer lies in advanced engine technologies, widespread use of technologies borrowed from hybrid cars, lightweight materials and creative design. Along the way, the big SUV will virtually disappear and well-equipped small cars like those that dominate Europe will become common.

The automakers that offer style, fuel economy and fun will win. Those that don't may be left at the starting line.

"A car that's fun doesn't have to be blindingly fast," said Jim Hall, managing director of 2953 Analytics, a Birmingham consulting and forecasting firm.

A fresh start?

Just as American politics sometimes seems to be trapped in the 1960s, endlessly repeating arguments about Vietnam and civil rights, discussions of the U.S. auto industry often seem to be a freeze-frame of the late '70s and early '80s, complaints about gas guzzlers and lousy quality.

Vast and slow improvements in the cars the domestics build haven't been enough to change that perception. The massive, fast changes every automaker must make in the next few years could be their last chance to hit the reset button on how the American public sees them.

Those are the stakes. Here are the tools they'll use:

• Auto stop. Systems that shut engines off at stoplights and when the vehicle is idling are already key to hybrids' fuel efficiency. They will become nearly universal on all new vehicles. Look for widespread applications in high-volume cars soon.

• Booster batteries. A new generation of small powerful batteries will provide extra power for acceleration in vehicles with engines as small as 1.0 liter.

This boosts high fuel economy significantly because the little engine provides all the power necessary for steady-speed cruising.

The batteries supplement them to provide confident acceleration from a stop and on highway entrance ramps. GM will launch the batteries in 2010 and plans to use them in large numbers of vehicles around the world.

• Turbocharging and direct injection. V8 power from four-cylinder engines. The Pontiac Solstice GXP wrings 260 horsepower from a turbo DI 2.0-liter engine. Ford will offer the combination in virtually every model it builds, including a V6 F-150 pickup in 2010.

• Diesel. Imagine the head-snapping acceleration of 297 pound-feet of torque and 40-plus miles per gallon. That's what GM scored in European tests with its 1.9-liter twin-turbo Saab 9-3.

• Compression-ignition gasoline engines. Look for fuel-efficiency improvements up to 50% from gasoline engines that run like diesels but produce fewer emissions. GM is pursuing the technology aggressively.

• Transmissions. Every leading compact car will move to six-speed automatic transmissions. Larger cars will have even more gears.

Dual-clutch systems, which combine the efficiency and sporty character of a manual with the ease and comfort of an automatic, are common in VW cars and loom large in Ford and Chrysler's plans.

• Plug-in hybrids. Electric power isn't just about fuel efficiency, Car and Driver editor Csaba Csere recently pointed out. The Chevrolet Volt's "battery has enough juice to produce 644 horsepower for one minute," Csere wrote, predicting that plug-in hybrids would become "the hot rods of the 21st Century."

• Aerodynamics. The science and art of crafting fuel-efficient shapes has come light years since the 1980s jellybean look.

"Brand identity is vital," said Michael Simcoe, GM chief of exterior design for North America. "Aerodynamics won't drive the sameness of design you saw in the past." Designers will spend more time on vehicle underbodies to reduce drag and tweaking trim in ways that have little visual impact but improve aerodynamics significantly, he said.

Contact MARK PHELAN at phelan@freepress.com

Hyundai Raises Car Prices in U.S. on Material Costs

Tomek — Mon, 07 Jul 2008 15:14:00 GMT

By Seonjin Cha

July 7 (Bloomberg) -- Hyundai Motor Co., South Korea's largest automaker, raised prices for its Elantra and Accent small cars exported to the U.S. to cover the rising cost of steel and other materials.

Hyundai boosted basic prices for the Elantra by $300 and for the Accent by $200 as of July 1, Hyundai's Seoul-based spokesman Jake Jang said in a phone interview today. The starting retail price for the Accent is $10,775 and $13,625 for the Elantra, according to Hyundai's Web site. Yonhap News agency earlier reported the price increase.

Earnings from Hyundai's 1.3 percent gain in U.S. sales last month are being eroded by the rising cost of raw materials. Posco, South Korea's biggest steelmaker, has boosted the price of sheet steel by 63 percent this year to recover its own raw- material cost increases.

The price of benchmark hot-roll coils used to make auto bodies and parts has been raised three times since February to 850,000 won ($796) per metric ton at Posco.

Seoul-based Hyundai's sales in the U.S. last month were lead by a 70 percent jump in orders for the Accent and a 50 percent gain in Elantra purchases, the company said on July 1. Rising fuel costs in the U.S. are boosting demand for small, fuel-efficient cars.

Hyundai fell 1 percent to 71,100 won at the close of trading in Seoul. The shares have declined 0.7 percent in this year, compared with benchmark Kospi index's 17 percent retreat.

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

Toyota Faces Inventory Shortages of Hybrid Vehicles

Tomek — Thu, 03 Jul 2008 19:50:00 GMT

The growing demand for small, fuel-efficient hybrid cars has caused inventory shortages for Toyota Motor Corp.’s most popular models, such as the Prius, Yaris and Corolla.

The Japanese automaker, which reported an 11.5 percent drop in U.S. sales last month, said a decreasing inventory of vehicles had forced the company to scramble to meet demand in June, a month in which U.S. auto sales were down nearly 9 percent industry-wide. As a result, Prius sales were down 26 percent as customers faced six-month waiting lists.

At the end of June, Toyota had a 2-1/2 day supply of hybrid Camry sedans a one-day supply of the Prius hybrid. Inventory of other top selling Toyota cars were also low in June. Dealer supply of Corolla sedans decreased to a 15-day supply, while Yaris had a 7-day supply at the end of June, Toyota said.

The company plans to partially meet its backlog of demand through its Prius factory in Japan.

"It is very doubtful that there is going to be a lot of recovery this year to be able to satisfy consumer demand and that is very unfortunate," Jim Lentz, who heads Toyota's North American sales, told Reuters, in reference the Prius.

Meanwhile, Toyota’s Japanese rival Honda Motor Co reported a 13.8 percent sales increase as a result of record demand for its Civic sedan and Fit subcompact vehicles.

Toyota predicted inventories of Yaris and Corolla would grow in August. The company also said it is working to add capacity at its hybrid battery manufacturing plant in Japan.

The current generation Prius has nickel-metal hydride batteries made by Panasonic EV. Typically, hybrid vehicles cost about $5,000 more than equivalent cars without the expensive battery. Toyota launched the world's first hybrid car in 1997, and aims to achieve $1 billion in global annual sales of hybrid vehicles shortly after 2010, a number more than double last year's sales.

Lentz said production constraints made it difficult to forecast the U.S. market size for hybrid vehicles. The U.S. is the Japanese automaker's largest market, and the Prius is the top selling hybrid vehicle.

"We don't know what the top end on Prius is," Lentz told Reuters.

According to a J.D. Power survey, 72 percent of U.S. consumers reported interest in purchasing a hybrid vehicle.

U.S. sales performance was mixed for all of the three major Japanese automakers. On a combined basis, all three saw their U.S. market share grow to 34.7 percent, up from 32.9 percent from a year ago. The three Detroit automakers -- General Motors Corp, Ford Motor Co and Chrysler – saw their market share decline to 45.8 percent in June, down from 50.2 percent a year ago.

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On the Net:

www.toyota.com

Source www.RedOrbit.com

2010 Toyota Prius - Car News

Tomek — Thu, 03 Jul 2008 19:45:00 GMT

The Greenmobile boosts fuel economy in time for $5 gasoline.

BY AARON ROBINSON, ILLUSTRATION BY RADOVAN VARICAK
July 2008

In uncertain times, the multitudes need a hero. In a year when the spot price of light, sweet crude is an hourly news event, the Toyota Prius seems a likely candidate. A new Prius hybrid arrives in 2009 to fight the forces of OPEC and the evil oil empire. If the price of gasoline hits $5 at the pump, buyers are sure to give it a very big Howdy Doody welcome.

Toyota, a ship so buttoned down it makes the recently departed William F. Buckley Jr. look like Huey Newton, has no plans for radical upheaval. The current Prius is a sellout in all its five-door jelly-bean frumpiness, so the car scheduled to be revealed at the 2009 Detroit auto show will be tweaked mainly to answer minor customer beefs with the current jelly bean. It will be slightly larger, a bit more spacious inside, and trimmed with more luxury options. The engine will grow and become a tad snappier in its sprint while returning even better fuel economy. A plug-in model should arrive in 2010.

Prius is Latin for “prior” or “to go before.” By Toyota’s accounting, the 2010 Prius is the little car’s fourth generation. The prius Priuses include the first Japanese-market version, on sale in December 1997, and the U.S. derivative that arrived in 2001. The redesigned hatchback Prius debuted worldwide in 2004 and elevated the hybrid into a household word, an environmental declaration akin to putting a compost pile in your Jacuzzi, and a staple of celebrity driveways. But sales are really riveted to pump prices. They jumped from 54,000 in 2004 to 181,000 last year. As of May, the Prius was on track to book more than 190,000 sales in 2008.

In general, claims Toyota, customers are happy with the current car, so the basic five-door hatchback silhouette remains, and the changes have to do with details. The roof height will stay the same, but the nose, tail, and wheelbase will grow slightly, and the track will be wider. Larger, more extravagantly sculpted headlights will be highlighted by additional trim tinsel to brighten its smile. However, the front and rear views will remain familiar. Toyota wants people to recognize the Prius as a Prius.

The “Hybrid Synergy Drive,” with its twin electric motors and continuously variable planetary-gear transmission, will carry over as conceptually unchanged but with improved power from its electric motors and a larger 1.6-liter, Atkinson-cycle four-cylinder in place of the current 1.5-liter unit, which dates to the old Toyota Echo. Power output will rise modestly, though Toyota promises even better fuel economy than the current car’s 48-city/45-highway EPA numbers.

Limited supplies of the nickel-metal hydride batteries have held back Prius production, but a new factory in Japan due to go on line in 2010 should break the logjam and create capacity for more hybrid models. Indeed, Toyota also plans to unveil another hybrid besides the Prius at the Detroit show in January.

The price will float above the current $22,160 base price but only modestly. Expect a loaded Prius to top out $1000 or so above the $29,692 for a fully loaded 2008 Prius. Hitting the road in 2010 will be Toyota’s first plug-in Prius. Customers want more drive time in pure electric mode, but the current Prius can’t deliver for various reasons, including battery longevity. The plug-in Prius will address that through the use of more-powerful lithium-ion batteries, but plans are to limit volume strictly, at least at first, to hundreds of units rather than thousands.

Like the lines for gas in the 1970s, the waiting list for the plug-in Prius is expected to be long.

Honda challenges 2009 SAE World Congress with “Racing to Green Mobility”

Tomek — Thu, 03 Jul 2008 18:32:00 GMT

06/24/2008 - DETROIT, Mich. - Hoping to spur the auto industry to adopt a greater competitive spirit in addressing the issue of global climate change, Honda (http://www.honda.com) has adopted “Racing to Green Mobility” as the theme for the 2009 Society of Automotive Engineers (SAE) World Congress. Honda is the host company for the 2009 World Congress, to be held April 20-23, 2009 at Cobo Center in Detroit.

Honda is also pleased to welcome Bosch Group to the important role as the Tier 1 Strategic partner for the 2009 SAE World Congress. Bosch will provide support and resources to Honda and SAE throughout the planning and execution process, as well as engaging actively on-site during the Congress.

“Racing to Green Mobility is a challenge to the industry and to each of us as individual engineers to act and take responsibility for a goal we all share - ensuring the survival of our planet,” said Masaaki Kato, president of Honda R&D Co., Ltd. and the chairman of the 2009 World Congress. “Through SAE the entire industry can work together even as we compete against one another to address our common goal of reducing the greenhouse gas emissions that contribute to global climate change.”

“Racing to Green Mobility” is a theme intended to make the 2009 SAE World Congress an important platform for the world’s automotive engineers to share their best thinking and to encourage one another to create new technologies and products to help realize a greener and more sustainable future for our industry and society.

“We are pleased to welcome Bosch, a company dedicated to innovation, as our Tier 1 Strategic Partner in the race to green mobility,” said Kato.

Honda is hoping to help boost the 2009 World Congress by encouraging the presentation of more technical papers and booths at the event. Honda revealed that it plans to present more than 50 technical papers at next year’s World Congress, many related to the advancement of Honda environmental technologies.

Honda is globally committed to minimizing air emissions from its products and factories. Honda is working to achieve its goals by reducing CO2 emissions by improving the energy efficiency of Honda manufacturing plants and by improving the fuel efficiency of its automobile, powersports and power equipment products. Honda’s legacy of environmental leadership includes a long list of industry firsts, including the world’s first low-emission vehicles, America’s first gasoline-electric hybrid car, and the world’s first EPA-certified hydrogen fuel cell vehicle. In 2007, Honda was named the “Greenest Automaker” by the Union of Concerned Scientists for the fourth consecutive time.

About the SAE World Congress
SAE International has more than 90,000 members, including engineers, business executives, government officials, educators, and students from more than 97 countries, creating a forum for the sharing of information and exchange of ideas for advancing the engineering of mobility systems. In its 76th year, the SAE World Congress offers the most comprehensive technical program within the global automotive industry and serves as a unique platform for the exchange of ideas among the world’s automotive engineering community.

Press release via Honda

Volvo sells Lemonade On-line to Stop Cancer

Tomek — Thu, 03 Jul 2008 18:31:00 GMT

IRVINE, Calif. (June 25, 2008) - Is there any better cup of lemonade to buy than one that works to find a cure for pediatric cancer? The world’s first virtual lemonade stand goes live tomorrow, selling very special cups of lemonade on behalf of Alex’s Lemonade Stand Foundation (ALSF).

For only $1 each, anyone can purchase virtual cups of lemonade at the online lemonade stand, http://www.lemonadestandforlife.com/. To help spread the word about the important work that ALSF is doing, purchasers can share cups of lemonade from the stand - via email - with family and friends.

“Pediatric cancer affects the lives of far too many families in our country,” said Doug Speck, president and chief executive officer for Volvo Cars of North America. “Our mission, as a founding sponsor of ALSF, has been bringing awareness to the cause and raising money to help these kids. Purchasing virtual cups of lemonade - and sharing them online - is simple, fun and it helps ALSF in a big way.”

Volvo is kicking off the grand opening of the stand by purchasing the first 200,000 cups. One hundred percent of the virtual lemonade stand proceeds go to ALSF.

Cups of lemonade purchased at http://www.lemonadestandforlife.com/ between June 25 and July 31, 2008, will help find a cure for pediatric cancer and even save Volvo owners money on their next service appointment at Volvo dealerships.

For every cup purchased on the site during this time period, Volvo drivers will receive a discount for the same amount, up to $100, on their next service visit at any U.S. Volvo retailer. Service discounts are redeemable Sept. 1, 2008 through Aug. 31, 2009.

About Volvo and ALSF
Alex and her lemonade stands first caught the attention of Volvo in 2002 when she received an inaugural Volvo for life Award nomination. The awards program honors hometown heroes doing extraordinary things in their communities. Alex’s determination and unwavering support for pediatric cancer research earned her a Volvo for life Award at the 2003 ceremony in New York City. Despite her deteriorating health, Alex continued to raise money through her stands.

In 2004, Alex set a remarkable goal: call upon the nation to raise $1 million to fight pediatric cancer before the year’s end. Sadly, Alex died Aug. 1 at the age of 8, having raised an amazing $700,000. Volvo promised to help Alex reach her $1 million goal, and the company’s employees and retailers did so in October of that year - by selling lemonade.

By the end of 2004, one little girl had made a world of difference, raising $1.5 million. Since then, Volvo has shown unwavering support of ALSF, helping to keep the inspiration and legacy of Alex alive. To date, ALSF has raised more than $19 million.

More About ALSF
Alex’s Lemonade Stand Foundation (ALSF) emerged from the front yard lemonade stand of cancer patient Alexandra “Alex” Scott (1996-2004). At the age of 4, Alex announced that she wanted to hold a lemonade stand to raise money to help find a cure for all children with cancer. Since Alex held that first stand, the Foundation bearing her name has evolved into a national fundraising movement, complete with thousands of volunteers across the country carrying on her legacy of hope.

To date, Alex’s Lemonade Stand Foundation, a registered 501(c)3 charity, has raised more than $19 million towards fulfilling Alex’s dream of finding a cure, funding over 80 research projects nationally including those examining leukemia, brain tumors, neuroblastoma, Wilm’s tumor, lymphoma, and osteosarcoma among others.

Press release via Volvo

Black Enterprise Lists Top Chrysler 100 Car Dealerships

Tomek — Thu, 03 Jul 2008 18:30:00 GMT

Auburn Hills, Mich., Jun 24, 2008 - Black Enterprise (BE) named 19 African-American owned Chrysler, Jeep® and Dodge dealers to its 2008 annual “Top 100” automotive dealers list. Dealers made the list based on the following criteria: Revenue dollars; African-American ownership of at least 51 percent; and fully operational for the 2007 calendar year.
BE’s list included three Chrysler, Jeep and Dodge dealerships in the top 10. The top dealer, Gresham Dodge, was No. 3 on the list. The dealer, located in Gresham, Ore., boasted $435 million in revenues last year. Martin Management Group, in Bowling Green, Ky., was No. 4 and grossed $435 million in revenues and Winston Pittman Enterprise, in Louisville, Ky., made the list at No. 6 with $261 million in revenues.

In total, the 19 dealers grossed more than $2 billion* last year.

“Chrysler’s African-American dealers are an economic force in this country,” said Cecil Ward, Senior Manager – Network Diversity and Dealer Development. “This ranking is significant to Chrysler because it demonstrates the strength of our minority dealer network and, in this competitive environment, also is a testament to the hard work that many people have put into these dealerships.”

The BE 100 lists are widely recognized as the most respected measure of black-owned business performance. Overall, the lists total more than 250 businesses in the various areas, including industrial/service companies, auto dealerships, financial services firms, and advertising agencies.

This is the 36th year of the BE 100. The full list is in the June issue of Black Enterprise.

Press release via Chrysler

Lotus to build taxis, Jaguar Hybrid

Tomek — Thu, 03 Jul 2008 18:29:00 GMT

Zero Emission London Taxi Commercialisation
Lotus Engineering is a key consortium member of the Zero Emission London Taxi Commercialisation project and is working alongside Intelligent Energy, LTI Ltd and TRW Conekt. Building on Lotus’ considerable experience in developing high technology hybrid demonstrator vehicles, and supporting its many clients on electric vehicle programmes, this project will see the introduction of commercial fleets of zero-emission fuel cell hybrid taxis primarily for London by 2012, and other cities by 2014.

The fuel cell taxi project pushes the complexity of this type of vehicle to a new level of advanced technology. Lotus Engineering will integrate the fuel cell engine with the electric drive train and hydrogen storage system, firstly bench testing, then integrating them back into a ‘buck’ vehicle and finally packaging the assembly into two taxis for full vehicle testing.

Limo-Green
The second project, Limo-Green, takes a Jaguar as a basis for the development proving out the concept of a large luxury hybrid executive saloon, utilising an advanced drive motor, small battery pack and a small Auxiliary Power Unit (APU) for sustained cruising. In a collaboration between Lotus Engineering, Jaguar Cars Ltd, MIRA Ltd and Caparo Vehicle Technologies, the project aim is to demonstrate a large, prestigious executive saloon with less than 120 g/km emissions. Lotus Engineering will design and build a number of prototype Auxiliary Power Units and provide technical support for installation into the vehicle. The APU is an extremely efficient system, with ultrahigh thermal efficiency and high power output.

Mike Kimberley, Chief Executive Officer of Group Lotus Plc said: “We are committed to driving forward with high technology advances into areas such as hybrid and electric vehicles, and we are delighted to be major contributors to two of the low carbon vehicle development projects. There is a world-wide drive to reduce CO2 emission levels and this is something to which we are dedicated, for both our Lotus cars and our global engineering clients. We wholeheartedly endorse the government’s initiatives through this investment from the Technology Strategy Board, which will assist in taking forward research, development and demonstration of these environmentally conscious and green transport solutions.”

Commenting on the Technology Strategy Board’s investment in the two projects, its Chief Executive, Iain Gray, said: “We are delighted to invest in these important research, development and demonstration projects. Cleaner and more efficient vehicles are a vitally important part of our response to global climate change challenges and will help the UK to meet demanding new CO2 standards for new vehicles. This is why we are investing in innovative low-carbon technology development through the Low Carbon Vehicles Innovation Platform. Such innovative technology will also help position British companies to benefit from the growing domestic and international demand for lower carbon vehicles.”

2009 Dodge Challenger’s Dream Design Drive Car Challenge

Tomek — Thu, 03 Jul 2008 18:29:00 GMT

Auburn Hills, Mich., Jun 25, 2008 - If you have ever dreamed of owning an all-new 2009 Dodge Challenger, this is your chance.

Dodge, in collaboration with MSN Autos, is launching the Dream Design Drive Car Challenge on Wednesday, June 25, 2008. By registering on www.dreamcarchallenge.com, consumers can customize their dream Dodge Challenger using the options available on the site, including paint colors, wheels and striping packages. One lucky person will win a Dodge Challenger customized to his/her specifications. In addition, another winner will receive a Dodge Challenger R/T.

“Challenger is one of the best known nameplates at Dodge with an image and reputation that has carried it for more than 35 years,” said Mike Accavitti, Director – Dodge Brand Marketing. “We are so excited to be part of this contest with MSN Autos because it offers generations of driving enthusiasts a chance to be involved in the return of this iconic muscle car and possibly to win the Challenger of their dreams.”

Each customized Dodge Challenger entry submitted through Aug. 25, 2008, that meets the official rules and contest criteria, will be posted on in the virtual showroom on www.dreamcarchallenge.com for public voting. There will be three levels of prizes awarded – the “People’s Choice Award,” the Grand Prize and a weekly sweepstakes.

In the “People’s Choice” category, the entry that receives the most ratings as determined by the public will receive an all-new 2009 Dodge Challenger R/T.

At the end of the promotion, the top 1000 entries determined by public voting will be judged by a panel of experts, including representatives of Dodge, to determine one grand prize winner. The entries will be judged based on the following criteria: 1) Dream Impact — the overall creative and emotional impact of the ‘Dream Car’ entry; 2) Theme — the coherence of all the customization and personalization elements of created ‘Dream Car’ entry title or theme; and 3) Uniqueness — the extent to which all customization and personalization options available to an entrant were employed to create a distinct and unique ‘Dream Car’ entry. The grand prize winner will receive a 2009 Dodge Challenger R/T, customized as close to the winner’s entry as possible.

From all entries and votes received, random sweepstakes drawings will be held weekly for prizes such as Microsoft Zunes, 12-month Xbox Live Gold memberships and additional giveaways.

The promotion is open in the U.S. only. All participants must be 18 years or older and hold a valid driver’s license at the time of entry. Complete rules can be viewed at www.dreamcarchallenge.com.

About the Dodge Challenger
The all-new Dodge Challenger is the first five-passenger two-door coupe produced from the Company’s proven rear-wheel-drive platform that delivers the Dodge Charger and Chrysler 300. Developed with Dodge’s credo of “bold, powerful and capable,” the 2009 Dodge Challenger is available in three models – SE, R/T and SRT8 — featuring head-turning styling, three available engine options and an automatic or manual transmission. The U.S. Manufacturer’s Suggested Retail Price (MSRP) for the 2009 Dodge Challenger will start at $21,995, which includes $675 for destination. Dodge dealers across the country are now taking orders for the 2009 Dodge Challenger, which will arrive this fall.

Press release via Chrysler/Dodge

Chrysler Cuts Back on Production

Tomek — Thu, 03 Jul 2008 18:27:00 GMT

Auburn Hills, Mich., Jun 30, 2008 - The auto industry is going through a period of unprecedented change. A dramatic U.S. economic slowdown and an auto industry contraction leaves Chrysler LLC – like other automakers – to face difficult issues and decisions. In order to meet those market challenges, the company is announcing that it will make volume-related manufacturing reductions at two of its North American assembly plants.

Chrysler will indefinitely idle the St. Louis South Assembly Plant effective October 31, 2008, due to volume declines in the total minivan vehicle segment.
Chrysler will also reduce operations at its St. Louis North Assembly Plant from two shifts to one shift, effective September 2, 2008. St. Louis North builds full-size trucks.
These measures will lead to a reduction of approximately 2,400 hourly jobs (1,500 at St. Louis South, 900 at St. Louis North).
Chrysler is committed to working with the UAW to address the manpower reductions in a socially responsible manner. As we have done in the past, the UAW and management leadership will hold employee meetings to review the special program offerings at affected locations.

Chrysler remains committed to the Dodge Ram truck and Chrysler Town & Country and Dodge Grand Caravan minivan markets.

“The Chrysler and Dodge minivans have held a leadership share in a shrinking market and we believe in the long-term viability of the pickup market,” said Jim Press, President and Vice Chairman – Chrysler LLC. “We are clearly in a challenging environment, but continue to be focused on building a profitable enterprise for the long term. These actions will help us achieve this goal.”

Press release via Chrysler

BlueTEC Mercedes-Benz SUV GL, M, R-Class Diesels Give Power, Gas Mileage

Tomek — Thu, 03 Jul 2008 18:26:00 GMT

In October 2006, Mercedes-Benz was the first manufacturer to begin a BlueTEC offensive within the U.S. passenger vehicle segment to coincide with the introduction of ultra low-sulfur diesel fuel. The E320 BlueTEC was a huge success right from the beginning and was voted “2007 World Green Car of the Year”. Mercedes-Benz is now pushing forward with this initiative with the R, ML and

GL 320 BlueTEC – the world’s first three diesel SUVs which not only meet the particularly demanding targets specified in the U.S. BIN5 (50-state) standard, but are also positioned to fulfill forthcoming stringent EU6 emissions legislation. This puts them well within all current emissions standards for diesel passenger vehicles worldwide.

With characteristics such as low-end torque, improved fuel economy and high performance, the diesel engine has proven itself as an attractive alternative to gasoline engines even in the U.S., during times of increasing fuel prices and growing sensitivity towards CO2 emissions. In the land of minivans, pickups and SUV’s — where driving habits generally feature consistent highway speeds and long distances cross-country — the benefits of diesel present an attractive solution. At the same time, U.S. lawmakers have set extremely stringent emissions legislation for diesel drivetrains. This is why Mercedes-Benz chose the U.S. for the worldwide debut of its in-house developed BlueTEC technology in the E 320 BlueTEC, as well as for the launch of its latest BlueTEC system with AdBlue injection (technical name – Urea SCR System). This innovative driveline technology enables large, high-performance SUVs to meet the limits set by the U.S. BIN5 standard.

Impressive performance, excellent fuel economy and the lowest emissions
The powerful V6 turbodiesel engine under the hood of the new GL, M and R-Class BlueTEC models demonstrates that excellent fuel economy and the lowest emissions are within the grasp of large SUVs. It has an output of 210 bhp and 398 lb.ft. of torque, while boasting outstanding fuel economy. The GL 320 BlueTEC achieves an estimated 23 mpg (highway), which represents a fuel consumption benefit of approximately 20 to 40 percent over a comparable gasoline engine, and makes the Mercedes-Benz GL 320 BlueTEC by far the most fuel efficient full size SUV in the U.S.

The six-cylinder diesel required a few modifications for its application in the new ML 320 BlueTEC, GL 320 BlueTEC and R 320 BlueTEC with AdBlue injection. The piston cavity profile was reworked for an improved fuel/air mix, while its compression ratio was reduced from 17.7 to 16.5. The VNT turbocharger was also optimized and reconfigured, as was the ECU. All three new SUVs are equipped exclusively with the seven speed 7G-TRONIC automatic transmission.

BlueTEC leads to drastic reductions in NOx emissions
As a modular concept for the effective reduction of fuel consumption and emissions in diesel vehicles, BlueTEC technology developed by Mercedes-Benz encompasses a range of complementary technical initiatives designed to minimize engine emissions, as well as to provide effective exhaust gas after-treatment. A systematic, step-by-step approach reduced all relevant emission factors to an absolute minimum, with the application of technologies such as oxidization catalysts and particulate filters. An important goal, however, is the drastic reduction of NOx emissions – the single exhaust component of a diesel engine that remains, by its very nature, higher than that of a gasoline engine.

In order to address this issue, Mercedes-Benz has developed two versions. In the E 320 BlueTEC sold in the U.S. and its European variant, the E 300 BlueTEC, oxidization catalysts and particulate filters are combined with a long-life NOx storage catalyst and an additional SCR catalyst (Selective Catalytic Reduction). The second BlueTEC version is used in the new GL 320 BlueTEC, ML 320 BlueTEC and R 320 BlueTEC. In these new models, AdBlue – a harmless, liquid urea solution – is injected into the exhaust. This releases ammonia, which, in the SCR catalyst downstream, converts up to 88 percent of NOx emissions into harmless nitrogen gas and water.

The individual components of this innovative exhaust technology include:

· Optimization of engine combustion processes in order to reduce internal emissions as much as possible. This includes electronic engine management, four-valve technology, third generation common-rail direct injection with piezo injectors, variable geometry turbocharger with exhaust gas recirculation.

· Oxidization catalysts minimize emissions of carbon monoxide (CO) and unburnt hydrocarbons (HC).

· The particulate filter, which has been standard in all diesel-powered Mercedes-Benz passenger vehicles in many countries since summer 2005, reduces particulate emissions to a virtually undetectable level that is significantly below current EU4 particulate limits (0.025 gram/kilometer). This also fulfills applicable U.S. requirements.

· Nitrogen Oxides are reduced via a NOx storage catalyst in combination with an SCR catalyst, or via AdBlue injection in combination with an SCR catalyst. These highly effective methods of exhaust gas after-treatment enable a reduction in NOx emissions in BlueTEC vehicles of up to 80 percent.

AdBlue injection is particularly beneficial for large vehicles
The choice between a NOx storage catalyst or AdBlue injection for effective reduction of NOx emissions is dependent upon the individual vehicle design, as well as the respective market conditions. AdBlue technology is beneficial for large sedans, pickups and SUVs because it means that the engine no longer needs to run periodically on a rich combustion cycle in order to purge the NOx storage catalyst, which removes harmful nitrogen oxides from the exhaust gas. Large vehicles with higher fuel consumption would require frequent purging, which would ultimately lead to more fuel consumption.

The urea SCR process requires the injection of AdBlue reducing agent into the exhaust line. AdBlue is an aqueous urea solution, which is stored in a small, separate tank. Upon injection into the hot, pre-treated exhaust gas, the AdBlue solution breaks down into its component parts, water and urea. Above temperatures of around 338 degrees Fahrenheit, the urea is converted into Ammonia (NH3) – the active agent in this process. The ammonia is stored within the catalyst and reduces the nitrogen oxides into harmless nitrogen gas as soon as NOx-bearing exhaust gases pass through the catalyst.

The ECU manages the AdBlue injection to ensure that there is always sufficient ammonia stored in the SCR catalyst without flooding it. This is monitored by a NOx sensor.

One small AdBlue tank is all it takes
The urea solution is stored in a dedicated tank on-board the vehicle, and is carried to the injector nozzle via a feed pump. The tank was designed such that a refill of AdBlue is necessary only at regular maintenance intervals. In the R 320 BlueTEC and the ML 320 BlueTEC the tank holds approximately 7 gallons, while in the GL 320 BlueTEC it has a capacity of 8.5 gallons. This is sufficient to ensure that no extra trips to the dealership are required, even under more extreme operating conditions with higher AdBlue consumption, such as towing. The customer plays no direct role in refilling the AdBlue. Service intervals are 10,000 miles.

New styling and increased equipment levels
With its innovative R, M and GL-Class BlueTEC models, Mercedes-Benz is not only demonstrating the potential of diesel drivetrains, but is also offering tailor-made solutions for upscale demands with the most extensive SUV range in the premium segment. The R-Class offers exceptional comfort on long-distance journeys, and the segment’s most generously proportioned and flexible interior, with seating for up to seven. The M-Class is the most successful Mercedes-Benz sports utility vehicle and started the trend towards modern premium SUVs. And, with the GL-Class, Mercedes-Benz leads the entire SUV sector in terms of first class occupant comfort under all conditions - both on and off road.

Standard equipment has been expanded substantially across the M, R and GL-Class ranges. They all now come with the unique PRE-SAFE® predictive occupant protection system and Active Front Head Restraints, as well as a new telematic system developed by Mercedes-Benz, with improved user interface, higher performance and a host of new functions.

More performance, more comfort – new generation telematics
The SUVs now come equipped with a new generation telematics system developed by Mercedes-Benz. It boasts a substantially improved user interface, high performance and a host of new functions. A hands-free system with Bluetooth technology is integrated as standard, as is an aux-in port for connecting mobile audio devices such as an iPod. A new Universal Media Interface is available as an option, for connecting an external music storage device with the SUV’s on-board electronics and operating system. This feature allows track titles to be displayed on both the instrument cluster and on the color screen in the center console, and enables them to be selected via the keys on the multi-function steering wheel. The battery of the audio device is simultaneously charged.

Customers may choose from two head units. Both include features such as a color display, improved radio reception, speed-regulated volume control, a keypad for inputting phone numbers and radio frequencies, as well as a standard Bluetooth interface that enables wireless connection to the hands-free system. Customers in the U.S. can also order HD radio and SIRIUS satellite radio as part of the optional Premium 1 package. With its new generation telematics, Mercedes-Benz is also offering an optimized Voice Recognition system in the Premium 1 package.

Passengers can also enjoy rich, spatial surround sound courtesy of the optional newest generation harman kardon® Logic7® sound system with 5.1 Dolby Digital Surround Sound. With increased performance and a digital signal processor (DSP), it guarantees outstanding clarity and listening pleasure.

For those in the rear, a new entertainment system is available, complete with two large, dual-source, 8-inch screens and a DVD player, as well as two wireless headsets for greater freedom of movement and two remote controls.

Unique safety equipment as standard
When it comes to safety, Mercedes-Benz vehicles have always led the field in the SUV segment. The R, M and GL-Class now come with the PRE-SAFE® predictive occupant protection system and Active Front Head Restraints as standard.

Mercedes-Benz is the benchmark in diesel cars and trucks
70 years ago, Mercedes-Benz was the first manufacturer to implement Rudolf Diesel’s combustion principle in a passenger vehicle. This technology is significantly more efficient than the gasoline engine and has been optimized over many years. A decisive technological leap in 1997 played a significant role in the development of the modern diesel engine - the introduction of Common-rail Direct Injection (CDI) in combination with four-valve technology. Since then, the abbreviation CDI stands not only for unparalleled fuel economy, but also for a huge increase in torque.

If there were any disadvantages of a diesel versus a gasoline engine it was in certain emissions – primarily soot particulates and nitrogen oxides. However, as of fall 2003, Mercedes-Benz had also tackled the particulate issue, with the introduction of the maintenance-free particulate filter. And even though nitrogen oxide emissions have been reduced by approximately 75 percent over the past 15 years through engine-based initiatives, Mercedes-Benz was still not satisfied. With its innovative BlueTEC technology, which was launched in a passenger vehicle for the first time in 2006 in the U.S., Mercedes-Benz hi-tech diesel powertrains fulfill the world’s most stringent exhaust standards. AdBlue injection now makes the new ML 320 BlueTEC, R 320 BlueTEC and GL 320 BlueTEC the world’s cleanest diesel SUVs.

Restyled M-Class
Dynamic, powerful and even more stylish

· New-look front end and rear add stylish touches

· New multifunction steering wheel and high-quality interior

· State-of-the-art entertainment and navigation units on board

· Extensive best-in-class safety features now as standard

The Mercedes-Benz M-Class is the benchmark among modern SUVs. This unique position is thanks to its characteristically dynamic, elegant design, as well as its combination of impressive on and off-road performance with sedan-like comfort. The M-Class also offers safety features that are unparalleled within the SUV segment. These exceptional characteristics are clearly greatly appreciated by buyers, with around 100,000 delivered to U.S. customers since the second generation M-Class was launched in March 2005. The modern SUV continues to be one of the most successful vehicles in this popular market segment.

Mercedes-Benz has considerably upgraded the 2009MY M-Class, with fresh design detailing and even more extensive level of equipment. The premium SUV now boasts a more powerful and athletic look-and-feel, along with even greater character and on-road presence.

The refined exterior of the M-Class is characterized by crisp, dynamic lines and a clear, powerful design language. The redesigned front end and the modified rear give the new generation M-Class a more muscular appearance, while at the same time conveying aesthetic elegance. In short – it is even more stylish.

The front view features a redesigned front bumper with headlamps that exhibit a distinctive step along their lower edge. This step carries through downwards and around the radiator grille to create bold contours. Larger and set lower down, the grille is a further characteristic feature. Divided by three broad, silver ribs with large, angular air intakes and edged in gleaming chrome, the redesigned grille gives the new generation M-Class a more dominant look, while wide-set fog lamps and a reworked stainless steel skid plate for all models make for a broader, more dynamic appearance.

The rear bumper with inset reflectors has also been restyled for a wider, more aggressive appearance. The standard stainless steel skid plate wraps around the twin exhaust system, giving the vehicle a broader stance. The rear light clusters now boast optional LED tailamps, and new powerfully styled mirrors with increased surface area offer improved visibility.

Interior with high quality trim and equipment
The interior of the 2009MY M-Class line has been stylishly upgraded with top quality materials. The center of the door panel now comes clad in MB-Tex as standard. A further focal point of the upgraded interior is the new, four-spoke multi-function steering wheel with chrome detailing and improved user interface, as well as gearshift paddles as standard. The seats have an attractive, sporty design and the driver seat comes standard with a four-stage power lumbar support.

The new M-Class also comes with an all-new high-performance telematic system developed by Mercedes-Benz, featuring further improvements to the user interface and a host of useful new functions. Also standard are a hands-free system with Bluetooth technology and an aux-in port for connecting mobile audio devices such as an iPod. A new Universal Consumer Interface is available as an option, for connecting an external music storage device with the SUV’s on-board electronics and operating system. This feature allows track titles to be displayed on both the instrument cluster and on the color screen in the center console, and enables them to be selected via the keys on the multi-function steering wheel. The battery of the audio device is simultaneously charged.

Customers may choose from two head units. Both include features such as a color display, improved radio reception, speed-regulated volume control, a keypad for inputting phone numbers and radio frequencies, as well as standard Bluetooth interface that enables wireless connection to the hands-free system. With its new generation telematics, Mercedes-Benz is also offering the optimized Voice Recognition voice-activated system as an optional extra.

Passengers can also enjoy rich, spatial surround sound courtesy of the optional newest generation harman kardon® Logic7® sound system with 5.1 Dolby Digital Surround Sound. With 610 Watts and a digital signal processor (DSP), it brings outstanding clarity and listening pleasure to the new M-Class.

For those in the rear, a new entertainment system is also available, complete with two large 8-inch screens with dual-source capability, a centrally integrated DVD player, as well as two wireless headsets for greater freedom of movement and two remote controls.

Unique safety equipment as standard

When it comes to safety, the Mercedes-Benz M-Class has always been a benchmark within the SUV sector. It will now be delivered with preventative occupant protection system PRE-SAFE® and Active Front Head Restraints as standard.

Fuel economy improved
The M-Class is powered by torquey and economical V6 and V8 gasoline and diesel engines, which are now even more frugal than ever. The 4MATIC permanent all-wheel drive system has proven itself beyond measure both on and off road, while the standard equipment automatic transmission 7G-TRONIC with optimized shift action smoothly delivers engine power to the wheels.

The 2009 M-Class is available with four powerplants ranging from the 210 hp ML 320 BlueTEC, the 268 hp ML 350, and the 382 hp ML 550. Detailed refinements have improved fuel economy against outgoing models. At the top of the range is the 503 hp ML 63 AMG.

At a glance:

new design and technology

Exterior design

· New front bumper design with new grille

· New rear bumper design with integrated rear reflectors

· Stainless steel skid plate standard on all models

· New unique front and rear styling for both ML550 and ML63 AMG

· New brushed aluminium roof rails standard on ML550 and ML63 AMG

· New headlamp design for all models

· Larger exterior mirrors

Interior design

· New redesigned four-spoke multifunction steering wheel with shift paddles.

· Door linings in M-B Tex

· Two types of wood trim: burl walnut or brown bird’s-eye maple

Comfort

· 4-way electrically adjustable lumbar support for driver’s seat

· New upholstery pattern

Infotainment

· COMAND system with 6.5-inch color display and new additional functions

· COMAND including hard-disc navigation, Music Register and voice-operated control

· Universal media interface for connecting an iPod and other audio devices

· Enhanced Voice Control system with whole-word recognition capability

· Surround sound system with twelve speakers and an output of 610 watts

· Rear-seat entertainment system with larger 8-inch screens, wireless headphones and dual-source capability.

Safety

· PRE-SAFE® as standard

· Active head restraints as standard

Chassis
· New 19 and 20-inch light-alloy wheels

· 19-inch 5-spoke light-alloy wheels standard for V8

Press release via Mercedes-Benz

Volkswagen Touareg Stanley Returns Home

Tomek — Thu, 03 Jul 2008 17:51:00 GMT

WOLFSBURG, Germany - The penultimate stop in the Touareg Stanley’s international exhibition tour is The Tech Museum of Innovation in San Jose, California. The prototype will be on display there from 20 June to 18 July 2008. It was here in the Silicon Valley region near San Francisco that the Stanley project was originally born.
Stanley was the first automobile to master the “Grand Challenge” for robot cars, gaining itself the reputation of a pioneering development project for autonomous vehicles.

The Touareg set out on the 212-kilometre race through the Mojave Desert amidst a field of 22 other competitors on 8 October 2005. Stanley travelled through the desert all on its own – no driver, no external intervention. It was the first to cross the finishing line after six hours, 53 minutes and 58 seconds. Never before had a motor vehicle managed anything close to such a distance completely autonomously.

This prototype is equipped with an array of driver-assistance systems which are now featured in standard-production vehicles. Those systems include, among others, the Electric Stabilisation Program and Navigation Assistance, Automatic Distance Control plus Front Assist for a reduced braking distance, as well as the Lane Assist lane-keeping system. Special high-tech fittings in the Stanley also include laser detectors, stereo optical devices, radar sensors, exceptionally precise GPS systems and control software specifically developed for the vehicle.

Like its successor project, “Junior”, Stanley is the product of collaboration between the Stanford University (which gave the car its name) and the Volkswagen Electronics Research Laboratory – both based in California’s Silicon Valley. The third participant in the project was the Volkswagen Research and Development division in Wolfsburg.

The Tech Museum of Innovation opened in 1990. Its mission is to promote understanding, through interactive displays, for the different fields of technology which determine our everyday lives. The museum attracts some 650,000 visitors to its various exhibitions every year. These exhibitions focus on a variety of aspects in an attempt to capture the pioneering spirit of Silicon Valley and the inventive spirit of engineers.

Peter Friess, the Munich-born president of The Tech Museum, feels Stanley is right where it belongs in San Jose: “Our museum is a window to the most innovative achievements produced in Silicon Valley. And Stanley represents a milestone in recent technology history. Indeed, Stanley caused quite a stir here in the region. We are delighted that this exhibition brings about the perfect match of Stanley and The Tech.”

Stanley’s exhibition tour began in 2006 at the biggest museum of technology in the world. The Smithsonian Institution in Washington, D.C., devoted a special exhibition to the Touareg. The tour then travelled on to Singapore, Johannesburg, Munich, Copenhagen and now to San Jose. In autumn 2008, the Stanley will be handed over to the Smithsonian Museum, where it will be put on permanent display.

Press release via Volkswagen