The 100mpg fuel busters!

BMW and Fiat are joining forces to bring a revolution in the market – with a pair of ‘bubble’ cars which promise world-beating economy and ultra-low CO2 emissions...

Two of the most important new cars ever are about to ‘bubble’ to the surface – and in a world exclusive head-to-head, Auto Express has brought them together for the first time!

These are the clearest illustrations yet of BMW’s new Isetta and its sister, the Fiat Topolino. They are the result of a new deal between the two firms, which will also be extended to include next-generation versions of the MINI and Alfa Romeo MiTo.

The Isetta and Topolino are crucial to BMW and Fiat’s attempts to reduce the overall CO2 emissions of their ranges – but they will also offer buyers 100mpg fuel returns! Reviving a name not seen since the bubble car of the Fifties, the Isetta will take BMW into a new sector of the motoring market.

It will be joined by the Fiat Topolino – which we featured in Issue 1,013. Both machines will offer incredible fuel consumption and low emissions, as well as tiny dimensions, and rival the imminent VW up! and Toyota iQ.

The Isetta will be hugely important, because it will help BMW comply with the European Commission’s plans to impose an average 120g/km limit on the model ranges of all firms selling cars across the Continent by 2012. And, as there are plans for an electric version, it would also enable the manufacturer to meet California’s upcoming zero-emissions vehicle legislation.

As you can see from our artist’s impression, the Isetta harks back to the original bubble car shape. But it has been given a modern reworking by the design team, with the addition of some BMW-style chunkiness. The body is made up of simple panels, likely to be fashioned from plastic to save weight and help resist parking dings.

Meanwhile, the Topolino gets a retro look inspired by the 500, with a cheeky front end featuring a smooth nose and large headlights. Under the skin
of both models lies an all-new platform that places the engine in the rear and sends drive to the back wheels.

With an electric-only Isetta some way off, small-capacity petrol and diesel engines will feature initially. And as Fiat is using a new 900cc two-cylinder petrol motor in the Topolino, the Isetta could benefit from the same unit.

The new powerplant was previewed in Fiat’s Panda Aria concept at last September’s Frankfurt Motor Show, and it arrives in dealers under the bonnet of the 500 later this year. While two outputs will be offered in this car – a 105bhp turbo and a normally aspirated 65bhp unit – it will be the latter that powers the Topolino.

Twin-clutch semi-automatic gearboxes are likely to be used by both models, as is a stop-start set-up which switches off the engine when the car
is stationary in heavy traffic. Combine this technology with a lightweight body, and the newcomers will be incredibly efficient. Expect combined fuel economy of 100mpg and CO2 emissions of less than 90g/km.

The interior layout is still up for debate, but there is likely to be enough room for three occupants with an occasional fourth seat, allowing owners
to juggle luggage capacity with passenger space.

It will be interesting to see if BMW and Fiat can make the rear-engined, rear-wheel-drive layout work efficiently. An insider at VW recently told Auto Express that a similar mechanical layout in the up! is being ditched in favour of a front-engined, front-wheel drive format, after it was found that the layout was too costly to develop and made the car unstable in cross winds.

Although official production dates have yet to be decided, the Isetta and Topolino are set to arrive some time in 2010.

Microsoft: Search the Web while driving

The software that powers infotainment systems such as Ford Sync soon may allow motorists to do Internet searches -- likely by voice -- while they drive.

Microsoft Corp. will make its Live Search Web search engine available as part of its Microsoft Auto software. Live Search is a service similar to Yahoo! or Google.

It would be up to individual automakers and suppliers to decide whether to implement Live Search in vehicles, navigation units and radios and to decide how drivers would access the information.

"Part of this should be voice-driven," said Tom Phillips, newly named general manager of Microsoft's automotive business unit. "Part of it may still require a glance or some other textual type of information."

Phillips said the search engine should start appearing in vehicles in 12 to 18 months, as portable or in-vehicle equipment.

Ford Motor Co. spokesman Alan Hall would not say whether Live Search would become part of Sync.

"We're always looking to add new applications" to Sync, he said. "Our plans have always been to leverage the platform approach of Sync and add new features and capabilities as we see fit from a customer perspective."

Hyundai-Kia Automotive Group plans to introduce an infotainment product based on the Microsoft Auto software in 2010. "We'll have the capability to offer" search, said spokesman Jim Trainor, but the carmaker "can't say yet" whether it will.

Microsoft says drivers and passengers could use Live Search to find local attractions such as restaurants. Directions, reviews and menus might be available. Search results could be narrowed to the driver's ZIP code.

"People want services that make their lives easier. They want things that save them time. They want services that do the same things for them in their vehicle that they get when they're at their desk," said Phillips, who recently succeeded Martin Thall as head of the automotive unit.

Consumers, he said, "think nothing of going to Live.com or perhaps another search site because we need information, but how is it we get into our car and we're totally cut off -- with no access to the information?"

Fiat hikes production of 500 minicar to 200,000 units

Fiat has boosted production of its popular 500 minicar to more than 200,000 units annually in response to increasing European demand for fuel-efficient compacts.

"Capacity for the 500 is now over 200,000 units a year," Fiat group CEO Sergio Marchionne said last week in a conference call with analysts.

Fiat now plans to sell 195,000 units of the popular 500 during 2008.

The Italian carmaker initially planned to sell 120,000 units this year. High demand for fuel-efficient small cars saw Fiat lift the target to 140,000 units earlier this year.

Fiat booked 230,000 dealer orders for the 500 between the car's July 2007 introduction and the end of its June 2008 reporting period, the company said.

The company said it sold 94,000 units in the first half of 2008.

Market researcher Jato Dynamics said the Fiat 500 was the Europe's second best-selling minicar over the January to May period, with 76,533 units sold.

The 500 was second to the Fiat Panda – the segment leader since 2004 – which sold 101,645 units in the first five months of the year, Jato said.

The Renault Twingo was the third best-selling minicar, with 59,855 sales over the January to May period.

Fiat launched the 500 in mid-July in India, where a 98 percent import duty has transformed the high-volume minicar into a premium model.

A 1.3-liter, 75hp diesel 500 in India costs the equivalent of 22,500 euros, compared to 14,750 euros in Italy.

Pricing is expected to limit demand and volume for the 500 in India. "This is a lifestyle product. We expect to sell a few hundred cars in the next 12 months," said Rajeev Kapoor, CEO of Fiat India Automobiles.

Fiat India Automobiles is a joint venture between the Italian automotive group and India's Tata Motors.

Ford plant in Germany might cut 700 engine-making jobs

Ford Motor's plant in Cologne, Germany might have to cut 700 out of the nearly 1,000 jobs working at the engine production plant if it is not awarded the contract to make three-cylinder engines, a company spokesman said.

He said the 700 will be transferred to other jobs elsewhere at the plant because the union has an agreement with management that there will be no mandatory layoffs until 2011.

The facility currently produces six-cylinder engines but will be stopped "in the foreseeable future". He declined to give a timeframe.

Discussions are going on whether the production of three-cylinders would be made at the Cologne plant or in Craiova, Romania, or split between the two sites.

He rejected German media reports that the Cologne plant is on the brink of being shut down.

The Cologne plant employs 17,300 people, of which almost 1,000 are in the engine production facility. The engine facility currently makes around 100,000 engines annually, mainly for the U.S. market.

Audi looks to win sales from volume brands with new SUV

Audi hopes its new Q5 SUV will help win new customers to the brand from volume manufacturers.

The German automaker expects to win sales at the expense of volume brand models such as Toyota´s RAV4, Michael Renz, Audi head of central marketing, told Automotive News Europe at a press event here.

"Obviously we are still targeting the premium SUVs like the BMW X3 or the Mercedes-Benz GLK, but we expect to draw some customers from the volume segment as well," Renz said.

He identified the Volvo XC 60 as the other main competitor for the Q5. Renz said that volume-brand customers would be attracted to the Q5 because of its "sporty design and handling."

The Q5 is positioned below the larger Q7 and will share a platform with Audi´s upper-premium A4 sedan.

It goes on sale in Europe this autumn. U.S. sales begin in the first quarter of 2009, with China following in the second quarter.

Prices start at 38,300 euros in Germany.

Despite sour economy, Lamborghini profit soars

Despite the tepid global economy, it appears that rich folks are still buying expensive toys. Automobili Lamborghini's global sales and financial results for the first half of 2008 both hit record highs.

Revenues increased 9.6 percent to 277.4 million euros ($434.5 million) from 253.1 million euros. Pretax profit increased to 35 million euros ($54.8 million) from 26.4 million euros, a 32.6 percent increase. By contrast, Lamborghini earned 47.1 million euros ($73.7 million) for all of 2007.

Global unit sales increased to 1,309 vehicles from 1,238 for the same period last year. Lamborghini now has 114 dealers around the globe, up from 65 in 2004, with eight new stores opening in the first half of the year.

Lamborghini CEO Stephan Winkelmann said sales in the United States and Europe were stable, while the Middle East was up 40 percent. Strong gains were also posted in China and Hong Kong.

"There is no brand that is immune to financial crisis," Winkelmann said, "but we always produce less than demand. We are conservative in our forecast."

Winkelmann thinks second-half revenue and profits will be even better for Lamborghini, as the redesigned Gallardo LP560-4 has just started arriving in dealerships.

Winkelmann said an internal cost-reduction program has improved profits. Also, Lamborghini is pushing an accessories program for its cars, as pricey options such as $10,000 carbon ceramic brakes typically carry better profit margin percentages than the car itself.

"We are improving the assembly time," Winkelmann said. "We are constantly talking to suppliers to get a higher quality for a reduced price. What is helping us with suppliers is that we are constantly increasing volume."

Tata open to Fiat selling Nano cars

Indian carmaker Tata Motors is open to Italy's Fiat helping to sell the ultra-cheap Nano model overseas, Chairman Ratan Tata said on Tuesday.

Tata, India's third-biggest carmaker, plans to launch the Nano later this year, priced at about $2,500.

"We have held talks about the Nano being marketed in markets where Fiat has already a strong presence. I am open to consider a partnership," he told a news conference at a forum promoting cooperation between Italian and Indian companies.

Fiat has a joint venture with Tata to manufacture and distribute cars, engines and commercial vehicles.

Tata also said the Tata group was in talks with Italian defense and aerospace company Finmeccanica about supplying helicopter parts.

Fiat Chairman Luca Cordero di Montezemolo said the company was in talks with Tata about making buses and trucks.

"We'll see if there are the conditions for us to go forward," he told reporters on the margins of the forum.

The head of Fiat's Iveco truck unit told an Italian newspaper in May he expected to resume talks with Tata on possible accords after the India partner completed its acquisition of Jaguar and Land Rover.

Cordero di Montezemolo also said he was "very optimistic" about second-quarter results due to be released on Wednesday.

Analysts polled by Reuters have forecast that Fiat would post an 11.4 percent rise in group trading profit, despite the worsening car market in Europe, thanks to strong sales in Brazil and support from its truck and tractor businesses.

Fiat shares closed down 0.92 percent at 10.432 euros as the DJ Stoxx auto index was flat.

VW second quarter profit beats expectations

Second-quarter operating profit at Volkswagen rose 22 percent to 2.12 billion euros ($3.38 billion), the world's fourth-largest car maker said on Wednesday, easily beating market expectations.

A Reuters poll of 20 analysts forecast operating profit to increase 4.4 percent on average to 1.81 billion euros in the quarter from its very strong performance a year ago, putting it on track for an estimated 6.61 billion over the full year.

VW reaffirmed its guidance for an unspecified improvement in results this year.

Renault plans production cuts in Douai, France

Renault has decided to cut production at its factory in Douai, northern France, in response to the worsening European sales outlook.

The French carmaker said last week it would also shut a factory in Sandouville, France, for seven days in September on top of a four-week closure in August.

In Douai, Renault has negotiated with unions at least 20 days of shutdown in the July-November period to counter declining demand for cars based on its Megane platform.

Renault produced 268,090 Scenic medium minivans and just more than 40,000 lower-medium Megane cars during 2007 at the Douai site, which employs 5,400 workers.

The company will present a radically restyled version of the Megane during the Paris auto show in early October.

Company sources say anticipation of the new Megane models has slowed sales for the existing versions.

The continuing slowdown in key European markets such as Italy and Spain, where Renault's Megane line has strong market shares, also contributed to weak demand for cars produced at Douai.

The Douai site was initially slated to close from late-July to late-August, for four weeks of annual maintenance.

Weak demand for the Megane and Scenic led management to negotiate a series of three-day weekends with workers in July, September, and October, a company spokesman said.

Renault will also close the Douai site from October 22 to November 12, to coincide with the French autumn school vacation and two national holidays, on November 1 and 11.

Word of the Douai slowdown comes just days after Renault announced that it would shut its factory in Sandouville, northern France, for seven days in September, on top of a planned four-week closure in August.

The Sandouville shutdown is directly linked to poor sales of Renault's upper-medium Laguna.

The French carmaker may also suspend Laguna production for at least three days in October, company sources say.

Camaro meets the press, GM execs tout mpg

Unveilings take place in Detroit, Los Angeles

General Motors today showed off the widely anticipated 2010 Chevrolet Camaro to the media, telling reporters it will beat competitors' fuel economy.

"We'll be promoting the fuel economy story very much," Ed Peper, vice president of Chevrolet, told reporters. "We are 2 or 3 mpg ahead of the competition."

The vehicle will be built at GM's Oshawa, Ontario, plant in Canada. Production is slated to begin on Feb. 16, 2009.

Peper said the V-6 version will get an estimated 26 mpg, while the V-8 version will get an estimated 23 mpg. The V-6 will get 304 hp, while the V-8 will get 422 hp.

"And we are still working on it," Peper said. He also hinted that a turbo 4-cylinder version could be in the works.

Sales begin in the first quarter of 2009, and Peper said more than 6,000 hand-raisers are interested in the car. The early-year launch will help spur sales, Peper said, because spring tends to be a popular time for consumers buying sports cars.

GM will disclose a price once the vehicle is closer to production, but Peper said the Camaro will be the "best value in the sports car segment."

The company plans to launch a convertible version in 2010.

GM is counting on the baby-boomer crowd for out-of-the-box demand, Peper said. The company's biggest challenge will be to attract buyers who aren't traditional enthusiasts.

Initially, Peper expects demand for the V-6 and V-8 versions will be split about 50-50, as enthusiasts will want the V-8. Long-term, he expects the V-6 version to be the sales leader.

Taking on the competition

GM views the Camaro's competitors as the Ford Mustang, Nissan's 350-Z and the Dodge Challenger, Cheryl Pilcher, product manager for the Camaro, said during the vehicle's unveiling in Los Angeles.

As for volumes, "we will build as many as we can sell," says Pilcher.

The production version of the Camaro doesn't stray much from the concept car GM showed in Detroit in 2006, though the chassis is different, says Vince Muniga, engineering spokesman for GM. The new Camaro is built on the GM's global rear wheel drive platform.

Says Tom Peters, design director for the Camaro exterior: "Our main goal was to get as close to the concept as possible."

The same is true for the interior, says John Zelenak, design manager for the Camaro interior.

Dealers are excited about the new Camaro.

"We have lots of lots of people waiting," to see the car, says Rusty Bunstead, sales manager at the Courtesy Chevrolet dealership in Morgan Hill, Calif., a city south of San Francisco.

Courtesy added a Camaro button on its Web site where customers could see a video and sign up to receive updates on the model long before the launch.

Courtesy Chevrolet is one of the largest Corvette dealers in the United States. It has two dealerships, one in Morgan Hill and one in San Jose, Calif.

Says Bunstead: "The Camaro is the poor man's Corvette."

Craig Trudell contributed to this report

ENLARGE Ed Welburn, GM design vice president, and Ed Peper, vice president of Chevrolet, show off the 2010 Camaro in suburban Detroit today. Photo credit: RICK KRANZ

PRESS RELEASE: Chevrolet Unveils the 2010 Camaro – A Fun, Efficient Sports Car for the 21st Century

Oshawa, Ontario (July 21, 2008) – Chevrolet today introduced the production 2010 Camaro being built at GM's Oshawa Car Assembly Plant. It is a heritage-inspired sports car for the 21st century, combining great looks and performance; advanced technology and surprising efficiency – including 9.0 L/100km estimated highway fuel consumption on the high volume V6 models. Sales begin in the first quarter of 2009.

"The new Chevrolet Camaro delivers the best of both worlds – great heritage and a thoroughly modern, advanced package of sporty driving, comfort and technology," said Marc Comeau, vice president sales, service and marketing for GM of Canada. "And it does so with styling, fuel economy and value our competitors simply can't match."

Built on GM's new, global rear-wheel-drive architecture, the Camaro is offered in V-6-powered LS and LT models, as well as the V-8-powered SS. All models and powertrain combinations include fuel-saving six-speed transmissions.

Product highlights include:

o Sleek, heritage-inspired interior and exterior styling with contemporary cues

o Robust body structure, exceptional build quality and suite of safety features including 6 standard airbags

o Advanced powertrain technologies, including engines with direct injection and Active Fuel Management, enabling a balance of performance and fuel economy

o Four-wheel independent suspension system tuned to match the performance capabilities of the respective powertrains

o Variable-rate power steering with the rack mounted forward of the front axle for better weight balance and greater driver feel

o Four-wheel disc brake systems standard on all models, including four-piston Brembo calipers on SS models

o StabiliTrak stability control system and traction control standard on all models

o Family of 18-, 19- and 20-inch wheels

The new Camaro also has technologies that enhance comfort and convenience, including:

o Bluetooth phone connectivity

o Premium Boston Acoustics audio system

o USB connectivity

o Ultrasonic rear parking assist (late introduction)

o Remote vehicle starting system

o OnStar

o XM Satellite Radio

Powertrains

An advanced, efficient 3.6L direct-injected V-6 with variable valve timing is standard on LS and LT models, which are expected to comprise at least 70% of Camaro sales in Canada. Direct injection technology helps the engine deliver more power through increased efficiency, while maintaining fuel economy and lowering emissions. That means less fuel is consumed and lower emissions generated – including a 25-percent drop in cold-start hydrocarbon emissions.

The Camaro's 3.6L engine also employs variable valve timing to optimize performance and fuel economy across the rpm range. It is rated at an estimated 300 horsepower (224 kW) and 273 lb.-ft. of torque (370 Nm). A six-speed manual transmission is standard with the 3.6L engine; a Hydra-Matic 6L50 electronically controlled six-speed automatic, with TAPshift control, is available.

The high-performance Camaro SS is equipped with a powerful 6.2L V-8, with a choice of a six-speed manual or six-speed automatic transmission. Manual-equipped models receive the LS3 engine, estimated at 422 horsepower (315 kW) and 408 lb.-ft. of torque (553 Nm) and is paired with a TR6060 six-speed transmission.

A new, L99 engine, based on the LS3, is used on automatic transmission-equipped SS models and also includes GM's fuel-saving Active Fuel Management feature to improve fuel economy. The L99 is estimated at 400 horsepower (299 kW) and 395 lb.-ft. of torque (535 Nm); and it is matched with a Hydra-Matic 6L80 six-speed transmission. This combination delivers an estimated 10.2 L/100km of fuel consumption on the highway.

The 2010 Camaro exemplifies GM's global development process. The design concept originated in the United States; engineering was directed by GM's global rear-wheel-drive team in Australia; validation was conducted on roads around the world and assembly will take place at GM's award-winning Oshawa Car Assembly Plant in Canada.

General Motors of Canada (GMCL) is engineering and manufacturing advanced environmental technologies ranging from Active Fuel Management (cylinder deactivation) and hybrid systems to E85 biofuel and fuel cell vehicles – more than any other auto company right here in Canada. Headquartered in Oshawa Ontario, GMCL employs more than 15,000 people nationwide. GM of Canada manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through 732 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac.