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.

Honda cuts Odyssey, Pilot output; boosts Civic's

Even Honda Motor Co. is feeling the pain of consumers' stampede from light trucks to cars.

The Japanese automaker said today that it will reduce production of the Honda Odyssey minivan and Honda Pilot crossover by a combined 10,000 units this year at its Lincoln, Ala., assembly plant. In the first half of 2008, Honda built 158,316 Odysseys and Pilots in Lincoln, down 2.4 percent from the same period of 2007.

"Honda is not immune to the shift in the market," said Honda spokesman David Iida. "We don't want inventories to get too high."

The production cut will be made from August through October. The Lincoln plant will close Aug. 1 and Aug. 29, and the plant's second shift will be canceled each Friday during the three months.

Honda wants to keep Pilot and Odyssey inventory between a 45- and 60-day supply, Iida said.

On July 1, Honda had a 78-day supply of Odysseys and a 99-day supply of Pilots, according to the Automotive News Data Center.

There will be no layoffs at the plant, Iida said. Honda will use the time for employee training and other work. Workers also could take paid or unpaid vacation time, he said.

Honda will consolidate light-truck production in Lincoln by moving output of the Honda Ridgeline pickup there from Alliston, Ontario.

Ridgeline production in Lincoln will begin in early 2009. Production trials begin in a few months, Iida said.

Honda also will increase output of the Honda Civic compact at its plants in East Liberty, Ohio, and Alliston. Honda did not say how much Civic production will rise.

Great Wall banned from importing GWPeri minicar

A Turin court ruled this week that a Chinese minicar built by independent automaker Great Wall won't be allowed into Europe.

The court said the GWPeri minicar is too similar to the Fiat Panda.

Fiat sued Great Wall both in Italy and in China. Those moves were aimed at keeping the GWPeri out of the European Union and out of China. Fiat alleged that the car was a clone of its Panda minicar.

On July 16, a Turin court accepted Fiat's claims, saying in its ruling "the (GWPeri) doesn't look like a different car but is a (Fiat) Panda with a different front end."

The court ruled that Great Wall should pay a 15,000-euro fine for the first GWPeri imported in Europe. In case of further violations of the ruling, the fine grows to 50,000 euros per imported car.

Lawyers for Great Wall said the company will appeal the Turin court decision.

The court case in China is still pending. Earlier this year, Great Wall starting selling the GWPeri in China.

Fiat doesn't sell the Panda in China. The car has been Europe's best selling minicar since 2004.

New Camaro photos released

ENLARGE

One of the worst-kept secrets -- the production looks of the new Camaro -- is officially out in the open.

Several automotive Web and blog sites posted the shots of the car, which is nearly identical to what has been seen before. It goes on sale in February 2009, followed by a convertible in November.

ENLARGE

It's modified slightly, but the production car carried much of the vibe of the concept that was revealed at the Detroit auto show in 2006.

The interior has a slight retro feel, accented by halogen gauges and a racing-inspired steering wheel.

ENLARGE

The car will get a 6.0-liter V8 powerplant that makes more than 400 hp and a 3.6-liter V6 that tops 300 hp. A 2.0 liter, 260-hp turbocharged four, similar to what's in the Pontiac Solstice, will also likely be available. Engines will be mated to manual or automatic transmissions.

The car is also expected to have an SS badge.

The "official" reveal is scheduled for Monday afternoon.

All Mercedes cars to be turbocharged by 2010

Mercedes-Benz will introduce turbocharged engines across its entire lineup in the next 2½ years.

"All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest," Thomas Weber, Daimler board member responsible for research and development, told Automotive News Europe at a press event here.

Forthcoming legislation in Europe and the U.S. is forcing automakers to reduce auto emissions.

Demand for turbochargers is growing because they offer a proven and relatively inexpensive way to reduce fuel consumption. With the addition of a turbocharger, Daimler will be able to install smaller, lighter and more fuel-efficient engines without sacrificing performance.

Under current proposals, the European Commission will ask the German automaker to cut its average fleet emissions from 178 grams per kilometer to 138 g/km by 2012. The Commission will fine automakers that fail to meet the targets.

Improving the efficiency of its existing engines is the first part of Daimler's strategy to reduce CO2 emission levels across its fleet. Weber said the medium-term step would be to introduce more hybrid technology. The S class -- Mercedes' flagship sedan -- will be offered as a full hybrid vehicle starting in 2009.

Weber also said that zero-emission driving is the German automaker's long-term goal. To get there, the automaker plans to use technology such as fuel cells and electric-powered vehicles. A full-electric version of the ForTwo from Mercedes sister brand Smart goes into production in 2010.