NEW YORK: Automakers seem to be a little frantic these days. At this season’s major auto shows in Detroit, Chicago, Geneva and New York, they offered vehicles powered by diesel fuel, hybrid systems and ethanol, massive pickups and tiny subcompacts, nostalgic muscle cars and futuristic crossovers.

Finding the right formula to whet car buyers’ appetites has become more essential than ever. Automakers are responding with more products to fill every niche, which is a boon for consumers but painful and expensive for US automakers.

High gasoline prices also intensify the risks for General Motors Corp and Ford Motor Co, whose operating profits come primarily from less-fuel-efficient pickup trucks and sport utility vehicles. “There’s a lot of things GM and Ford are still grappling with if they’re going to adapt to these niche markets,” said Erich Merkle, the director of forecasting for the consulting firm IRN Inc.

In a recent speech, Ford’s US President Mark Fields said there will be 300 nameplates in the US market by the end of the decade, up from 215 in 2002. The explosion is apparent at the auto shows.

In Detroit alone, 33 vehicles made their worldwide debuts. Japanese and South Korean automakers are well equipped to make many different models because they have lower labour costs and newer, more flexible plants that can build multiple products on the same line.

Ford and GM are working on making their operations leaner, by cutting thousands of jobs, closing plants, and using the same underpinnings on multiple vehicles, but it will take time before they can match the level of their rivals.

Fields said this past week that Ford expects 82 per cent of its assembly facilities to be flexible by 2008, up from 38 per cent in 2004.

At the New York show last week, Hyundai Motor Co launched its seventh totally redesigned product in 24 months.

Against a backdrop of high gas prices, fuel-saving technologies were big at this year’s shows. Jim Sanfilippo, a senior industry analyst with Michigan-based Automotive Marketing Consultants Inc, said the hybrid-electric system on the new Lexus LS600h is one of the most advanced inventions he has ever seen.

In Detroit, Ford rolled out a diesel-electric hybrid concept that it says can achieve 65 miles per gallon.

Mercedes-Benz promoted its Bluetec diesel engine, which will meet emissions regulations in all 50 US states once ultra-low-sulphur diesel comes on the market this fall.

At the Chicago show, GM and Ford announced plans to convert more fuel pumps to ethanol and educate the owners of the 6 million ethanol-capable vehicles on the road about the benefits of the fuel, which contains only 15 per cent gasoline.

Honda unveiled an Element concept redesigned for urban drivers, with larger tires and a carpeted interior.

Supercars for the superrich
It’s the beginning of the new model season for supercars. And — as they do nearly every year — the hottest ones completely redefine the top end

By Matt Vella
BusinessWeek Online

Across the U.S., auto dealerships are busily replenishing spent or heavily discounted lot stock. Shiny new models are arriving or in transit to rejuvenate sales.

Although the volumes are much smaller, ultra-luxury and supercar dealers are doing the same, swapping out the old hotness for the newer, hotter hotness.

This year’s broad field of wonder wheels includes notable upstarts from well-established automakers Porsche and Audi. While the names of those companies are easily associated with high-performance, no-compromise vehicles, both have seen fit to up the ante.

Go to BusinessWeek Online to see the new hot cars.
Audi announced it had given its Le Mans quattro concept a green light for production as a 2007 model. That car, dubbed the R8, is to inherit lessons learned from the company’s racing group as well as performance division Lamborghini.Although exact production details remain unclear, Audi’s investment of nearly $36 million should create a powerful two-seater to be slotted above the incredibly successful TT roadster. Audi’s R8 is also gunning for Porsche.

But, the Germans are hardly sitting still. Porsche is offering a $106,000 GT3 version of the evergreen 911. It’s essentially a street-legal racemobile.

Initial test drives read like detailed travelogues, each minor twist and turn joyfully dissected and analyzed. That’s no doubt the natural effect of the 3.6-liter, rear-mounted flat-6 that pumps out 415 horses.

Gleaming StallionAt higher price points, the Italian stalwarts are also presenting striking models. The Lamborghini’s Murciélago LP640, which is reported to sticker around $315,000, is a shock-and-awe offense on the senses. Wrapped in spaceship looks, the LP640 boasts a 6.5-liter V12 that roars to the tune of 631 horses.

Ferrari, meanwhile, is attempting to win hearts and minds with the beautifully designed 599 GTB Fiorano. Although this prancing stallion also has a 6-liter V12 that develops a slightly more modest 612 horses, its truly stunning frontward lines distinguish it. Its grill smiles more candidly than any Ferrari in recent memory.

Two more exclusive supercar companies, under albeit more pedestrian ownership, are also showing new products.

At first glance, Ford’s ownership of Aston Martin and Volkswagen’s control of Bentley seem to make as little sense as Proctor & Gamble owning French fashion house Rochas.

But Aston’s upgraded and unlimited DB9 Volante and Bentley’s Continental GTC prove that work proceeds unimpeded. Both convertibles approach the $200,000 price point. (Bentley’s future seems more secure as Aston looks to be up for grabs given Ford’s worsening troubles.)

Luxe LookersOf course, at price points higher than $100,000, manufacturers offer luxuries beyond sheer speed. The old world and the old guard are represented by little-known but high-cachet brands like Maserati and Morgan.

While the former is banking largely on a large sedan and the latter hopes to make inroads with a speedy little roadster, both offer distinctive vehicles around $100,000, aimed at expanding their brand presence in ultra-luxury niches.

At the topmost end and for the richer-than-God set, Bentley and Rolls-Royce are happy to oblige. Both companies offer models well north of $300,000.

Although both the Bentley Azure and Rolls-Royce Phantom feature robust engines underhood to carry the weight of six-figure luxe, each rides best at a slower pace that allows passersby on the street to gawk and stare. What’s more, Rolls is reportedly going to offer a $400,000-plus convertible in the near future.

The downside? Many of these 2007s — by virtue of being custom tailored and highly desired — have long waiting periods. Even if you’re ready to buy now, that may mean your 2007 doesn’t show up until 2008.

Honda announced a $1.18 billion expansion plan to meet the growing demand for its cars. The plan, announced by Honda president and CEO Takeo Fukui in his 2006 mid-year speech, identified three focus areas:

1. Strengthening production and R&D capabilities in Japan,
2. Increasing production capacity oversees, including the USA, Canada, and Asia, and
3. Strengthening the commitment to reduce environmental footprint, with the main focus on CO₂ emissions reduction.

In Japan, Honda plans to build a new auto plant capable of synchronous auto production—from the engine to the entire automobile—in Yorii, Saitama. Honda will also build a new R&D center in Sakura, Tochigi, and expand existing production plants.

The plan for overseas growth calls for a new auto plant in the USA, to become operational in 2008. A new engine plant will be build in Canada, neighboring the existing auto plant in Alliston, ON. Furthermore, expansion is planned for motorcycle production in India, Philippines, and Pakistan, as well as for automobile production in India, China, and Brazil.Based on the expansion plans, Honda envisions 2010 global unit sales of more than 4.5 million units for automobiles, 18 million units for motorcycles, and 7 million units for power products.

Honda voluntarily set global CO₂ reduction goals for its products and production activities. In 2000, the global average of CO₂ exhaust emissions from Honda automobiles was 179.5 g/km. Despite increased sales of larger-size vehicles such as SUV and minivans, average CO₂ emissions were reduced by 5% from 2000 to 2005, said Honda. A further 5% CO₂ emission reduction is targeted from 2006 to 2010.The product strategy to achieve the CO₂ emission targets includes a new dedicated hybrid vehicle, and new clean diesel cars. The new, more affordable hybrid will be launched in 2009 and offered at a price level lower than the Civic Hybrid. The projected annual worldwide sales are 200,000 units, including 100,000 units in North America.

Honda will expand the application of diesel technology to medium-to-large size vehicles. Based on the diesel engine currently sold in Europe, Honda is developing a cleaner next-generation 4-cylinder diesel engine, which will meet the US EPA’s Tier 2 Bin 5 emission standards. Honda plans to introduce this super-clean diesel engine to the market within the next three years. Honda will also work toward development of a clean V6 diesel engine.

[Source: world.honda.com]

Toyota’s quarterly results are out on Friday and, if reports in Japan’s Nihon Keizai (Nikkei) newspaper prove correct, they look like being huge. Without quoting sources, the Nikkei reported over the weekend that Toyota’s operating profit will reach a mind-boggling $4.3 billion–up 23% from last year–for the three months through June. Sales for the same period should rise 10% to $48 billion. What’s more, despite a few problems of late including increasing recalls and a sexual harassment lawsuit against a former top executive, the Nikkei reckons operating profit for the year through March 2007 could top 2 trillion yen ($17.4 billion).

If you thought American drivers weren’t big on diesel, just look at Japan where the fuel has long been perceived as being dirty and offering sluggish performance. Until yesterday, when Mercedes-Benz began selling its E 320 CDI Avantgarde diesel in Japan, the only other diesel passenger vehicle on the market was Toyota’s Landcrusier Prado SUV which sold 1,800 units last year or just 0.4% of total industry sales. In Europe, 49.5% of passenger car sales are diesel. Still, Mercedes’ new offering is a timely boost for diesels in Japan. For one thing, with a top speed of 155mph and 0-60 in 6.6 seconds, the turbo-charged engine dispels the myth of sluggish performance. For another, the quality of diesel on offer in Japan has improved remarkably in the last five years and is now the cleanest in the world in terms of sulfur quantity, which has been reduced 50-fold to 10ppm since the beginning of the decade, according to the Japanese Petroleum Association. Whether that’ll be enough to get more people demanding diesels–and domestic automakers offering more diesel models–remains to be seen. But at $72,000 for (or $75,000 for the stationwagon) the Mercedes offering, welcome as it is, isn’t one for the masses.

[Source:businessweek.com]

 TOKYO (AFP) - Japan’s top motor company Toyota plans to boost its overseas production by 40 percent from 2005 levels to five million units in 2008, a press report said. The plan will be led by greater output in North America and in the fast growing market of China, the leading Japanese business daily Nihon Keizai Shimbun said.Toyota Motor Corp is also targeting 2008 domestic production at about 4.15 million units, up 9.5 percent from the 2005 level of 3.79 million units, the report added.Toyota’s overseas output, which totaled 3.57 million units in 2005, is expected to exceed its domestic output within three years, the daily said.

No official was available at the firm’s head office here to confirm the report. Overseas production by Japanese motor companies as a whole already topped their domestic output for the first time in the business year to March 2006, the Japan Automobile Manufacturers Association announced earlier. Toyota targets its 2008 output in North America at about 1.84 million units, up 20 percent from 2005. It plans to open a new plant in Texas in the coming months and another in Canada in 2008, the report said.

The firm’s 2008 production in China is targeted at about more than 600,000 units, compared with 134,500 in 2005. Toyota will assemble the subcompact car Yaris at a factory in Guangzhou and also produce small cars in Tianjin. In the rest of Asia, excluding Japan and China, Toyota’s 2008 production is projected to exceed one million for the first time, the report said. The firm will start up its third factory in Thailand to produce a line of its IMV (Innovative International Multipurpose Vehicle), a mainstay model for its global strategy, the daily said.

[Source:aawsat.com]

 

American Honda is working directly with FuelMaker Corporation to complete development of a natural gas home refueling appliance. Honda, which has owned almost 20 percent of Toronto-based FuelMaker Corporation since 2000, is working directly with FuelMaker to complete development of Phill, the natural gas home refueling appliance. As part of this alliance, Honda and FuelMaker are announcing plans to begin retail sales of the refueling appliance and Civic GX natural gas vehicle beginning in California in spring 2005. The Civic GX, now in its seventh year of sales in the U.S., has to this point been marketed only to fleets. The Phill appliance will be available for purchase in limited quantities in California by spring 2005 at an approximate retail price of $2,000. Depending on Federal, State, and local government rebates, the actual cost of ownership may be reduced to consumers. “The biggest obstacle to broader acceptance of natural gas vehicles is the limited availability of refueling stations,” said Tom Elliott, executive vice president of American Honda. “This alliance with FuelMaker is great for Honda because it will give our customers a personalized solution to refueling. Our research indicates people like the convenience of filling up at home.” I’ll be very interested to see what sort of adoption this scheme actually gets. If the ability to refuel at home boosts natural gas vehicle sales, it could pave the way for home hydrogen stations of the future (technology permitting).