Norway govt won't intervene to save carmaker Think

The Norwegian government said on Tuesday it will not directly intervene to rescue electric car maker Think after the company on Monday halted production and said it would not survive without the state's aid.

Privately owned Think had asked the government to help it out of its "urgent financial distress" sparked by the global crisis, saying it had difficulty obtaining working capital and that its suppliers are severely hit.

"There are many companies that are in a demanding financial situation because of the financial crisis," Deputy Minister of Trade and Industry Rikke Lind told Reuters.

"The government cannot go in on the ownership side or provide loans to specific companies in today's situation," she said.

Think has said it needs 100 million to 200 million crowns ($14.5 million to $29 million) in short-term guarantees after it temporarily stopped production at its Norway plant and laid off between 50 percent and 70 percent of its employees to survive and proceed with expansion plans.

Norway's government is preparing a fiscal stimulus package to combat unemployment and shore up its construction industry, due to be presented in late January or early February.

The government has approved an increase in loan support for Innovasjon Norge, an organization fostering small- and medium-sized companies, by 1 billion crowns to 2.5 billion, in effect from Jan. 1, 2009, from which Think could apply for loans.

It has also said it will boost export credit institution Eksportfinans with about 50 billion crowns to ensure exporters get the financing they need to sustain operations.

"Think needs to contact the apparatus, where we have different lending and guarantee options, but they have to be considered in line with everybody else," Lind said.

Think was not immediately available for comment.

Earlier in December, the Swedish government said it would provide up to 25 billion Swedish crowns ($3.12 billion) in credit guarantees and emergency loans to its ailing auto industry but has no plans to buy stakes in Volvo or Saab.

With one car model in production, the micro Think City, the Norwegian company aims to ramp up production next year, launch the car in several European cities and set a date for its U.S. entry

Ferrari positive on '08, unsure on '09

CEO Amedeo Felisa wants the brand's dealers to do more to improve their stores

 The crisis hitting the auto industry has not slowed Ferrari so far.

The sports car maker is on track to match or beat its 2007 sales record, and CEO Amedeo Felisa is optimistic about next year because Ferrari's newest model, the California, already is sold out.

Felisa, 62, spoke about the brand's future when he met withAutomotive News Europe Chief Correspondent Luca Ciferri at the launch of the California here.

Sales are dropping at most automakers. Why has Ferrari avoided the decline?

So far, we have not seen significant change in our order flow so we remain optimistic about 2008. For the future, we are carefully monitoring the situation as it remains very unpredictable

Another reason for our optimism is the important investments we made in fully renewing our product range.

Our oldest car today is the 612 Scaglietti, which is just 5 years old.

With the new California, we are expanding our range by adding a V-8 front-engine car with a retractable hardtop -- a model that Ferrari has never had in its 61-year history.

The California is already sold out for 2009 and 2010. That means someone who orders the car today has to wait until 2011?

A two-year wait is typical for new models that are in high demand from our customers. It takes 18 to 24 months for the order flow to stabilize.

What is important to me is not the fast start, but the ability to keep the volume up for the entire life cycle. For the California, it is so far, so good.

How long is the wait to get the rest of the range?

The 430 Scuderia and the 599 GTB Fiorano take more or less a year; the 612 Scaglietti takes about six to eight months.

Are you counting on the California to boost Ferrari's sales volume to 10,000 units a year?

We have never given such a target. The California will help Ferrari to broaden its appeal by attracting customers who previously looked to our competitors for such a model.

Of course, the car will help increase our volumes, but we are not planning on such massive growth during a time of such uncertainty.

Our chairman, Luca Cordero di Montezemolo, always says we should offer 'Ferrari diverse per Ferraristi diversi' [Italian for: Different Ferraris for different Ferrari owners].

Time will tell how many of the California sales are conquest sales and how many of the sales come from people who would have bought a mid-engine V-8 coupe or spider from Ferrari.

How many customers does Ferrari have and how many Ferraris are still around?

We estimate that we have 65,000 customers and that there are about 90,000 Ferraris that still exist out of about 130,000 units built since 1947.

Ferrari set a new sales record last year with a volume of 6,465 units. What volume do you expect for the full year?

Similar or marginally up on last year. Do not forget, although the California is in high demand, it does not go on sale until January 2009.

The California is expected to add up to 2,800 units to your sales volume next year and about 3,000 starting in 2010. What volume do you expect by 2010?

First of all, let me say that we aren't interested in volumes. That being said, it's a very difficult to make any forecast right now.

What has driven Ferrari's growth?

Ferrari's growth in the last decade derives mainly from an expansion in the number of markets where we sell cars and a little from increasing the units we deliver to our traditionally big markets. This lets us keep the right level of exclusiveness for our products and helps us protect our residual values.

On average, how much money does a Ferrari customer spend on options to customize the car?

It depends a lot on the market and model, but it is roughly €15,000 to €18,000 per car.

That represents an additional 10 percent on a V-8 model and 7 percent to 8 percent on a V-12.

Ferrari just completed an 11-year, €200 million renovation and expansion of its headquarters and production lines in Maranello. How many people now work for Ferrari?

We are roughly 3,000 people, of which 1,800 work on road-car production, 800 are in the racing department and 300 in r&d.

What is the installed capacity at the upgrade assembly plant?

Twenty units a day.

In the second half, Ferrari reported an operating margin of 20.5 percent. That was the best of any automaker during that period and could be the best result ever for an auto company. Was this a one-time success or is there room for further improvement?

For a company like ours, where there is a significant amount of spending on Formula One racing during certain months, a quarter-by-quarter analysis is not particularly significant.

Ferrari's operating margin was 12.6 percent in 2006. It grew to 15.9 percent last year and will improve significantly this year.

Could you provide a breakdown of your revenues per sector?

Since the company was established, Mr. Ferrari only wanted to reveal how much the company was earning overall. We love to follow our founder's guidelines. Licensing and merchandising are clearly important for us and they are continuously growing. For example, the estimated retail value of all the Ferrari-brand products worldwide is about €1 billion.

Which sector is the most profitable?

In term of return on sales, it is licensing and merchandising by far.

The business accounts for 15 percent to 20 percent of Ferrari's operating profit.

We currently have 25 Ferrari stores. More than half of them are located outside of Italy.

What expectations do you have for your theme park in Abu Dhabi?

We want to expand Ferrari brand awareness to new markets and to a broader audience than just Formula One supporters.

The park will be ready in 2010, which is when the first Abu Dhabi F1 race takes place.

If this park is successful, we could expand the idea to other markets. Trust me, we are not lacking in requests.

Dealers in Europe have complained that they may lose their franchises because of tough standards demanded by the company in August after Ferrari canceled all its franchise contracts.

The cancellation was done in preparation for the new franchise contracts that will be needed to comply with the next block exemption, as the current one expires in 2010.

Ferrari has made significant investments in the past decade to completely renew its headquarters, factory and products. We want our dealers to follow us by upgrading their corporate standards to match what the new Ferrari is.

We have 80 dealers in Europe. If they want to continue partnering with us, we would be happy to continue doing business with them.

At 305.6 grams per kilometer, the Ferrari California's CO2 emissions are 27 percent below the 430 coupe's. Which areas contributed most to the reduction?

The new direct-injection engine and the new design of the cylinder heads contributed more than 50 percent to the improvement. Better aerodynamics contributed 10 percent, the new dual-clutch transmission saved 7 percent to 8 percent, while new tires and new brakes each accounted for about 5 percent to 6 percent of the CO2 reduction.

When will Ferrari offer a car that produces less than 300g/km?

Starting in the middle of next year we will install a stop-start-system on California units that will be shipped to China. Those cars will emit less than 300g/km.

For our V-12 engines, our target is to slash CO2 emissions more than over 20 percent to about 350g/km.

By 2011-2012, new Ferrari models will emit 30 percent to 40 percent less CO2 then our current range.

If you could instantly get something, what would you ask for?

More new technologies from our suppliers.G

Honda quits F1

Japanese sensationally drop out of Formula One

Honda has quit F1 due to deepening financial worries and a crashing car market. Honda has recently pulled back production at its Swindon plant, and the decision to leave F1 is apparently to protect the brand's core business activities.

Where this leaves Jenson Button remains to be seen, with Honda placing its team for sale rather than winding it down altogether. It sends a stark message out to followers of F1 though, who may now fear other manufacturers such as Renault doing the same.

This is the statement from Takeo Fukui, President and CEO of Honda Motor Co:

"We, Honda Motor Co., Ltd., have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.

This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies.

Honda must protect its core business activities and secure the long term as widespread uncertainties in the economies around the globe continue to mount. A recovery is expected to take some time.

Under these circumstances, Honda has taken swift and flexible measures to counter this sudden and expansive weakening of the marketplace in all business areas. However, in recognition of the need to optimize the allocation of management resources, including investment regarding the future, we have decided to withdraw from Formula One participation. We will enter into consultation with the associates of Honda Racing F1 Team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale.

In its third era of Formula One activities, Honda has been participating in Formula One races from the 2000 season, initially with BAR, by adopting a new format of jointly developing racing machines. Subsequently, in a move to meet the changing environment surrounding Formula One, we switched to running a 100% Honda-owned team commencing with the 2006 season.

Surmounting many challenges, the Honda Team achieved a Grand Prix victory in 2006, enabling Honda to receive overwhelming support from Honda fans around the world that were looking forward to greater success. It, therefore, has been an extremely difficult decision for us to come to this conclusion without having been able to fully meet the expectations of our fans.

By making the best of what we have learned during these times of economic turmoil, coupled with the spirit of challenge gained through active participation in racing, we intend to continue with our commitment in meeting new challenges.

Finally, we would like to take this opportunity to sincerely thank our fans and all those who have supported Honda’s Formula One efforts, including everyone in the world of Formula One.

Thank you very much."

Aston Martin may axe 600 jobs in cost-cutting drive

Aston Martin may cut as many as 600 jobs, the British sports car brand said today.

The possible cuts of 300 full-time jobs along with "a similar number" of temporary positions are part of a discussion between the former Ford Motor Co. subsidiary and its trade union. Aston Martin also said it's considering other undisclosed cutbacks related to worldwide economic woes and plunging sales.

"These are regrettable but necessary measures in the extraordinary market conditions we all now face," Aston Martin CEO Ulrich Bez said in a statement.

The cutbacks come as the automaker seeks to revive the Lagonda luxury brand to diversify its product mix beyond sports cars.

Julian Jenkins, CEO of Aston Martin North America, said sales fell 19 percent through the first three quarters of 2008, while the ultraluxury segment dropped 21 percent.

The Warwickshire, England-based company has 1,850 employees worldwide. The company said a 90-day consultation period had been launched with the union Unite, and that the jobs would go in the new year.

In May of last year, Ford sold Aston Martin to a group that included motorsports investors David Richards and John Sinders and two Kuwait-based investment companies. Ford took its initial stake in Aston Martin in 1987.

PRESS RELEASE: Aston Marton announces job cuts

Gaydon, 1 December 2008 - Aston Martin and its Trade Union partners have today begun consultation on a range of cutbacks to reflect the current downturn in the world economy and the corresponding fall in car sales. It is hoped to do this by minimising the impact on employees as far as possible, but the possibility of up to 300 permanent and a similar number of temporary job losses cannot be ruled out.

Aston Martin Chief Executive Officer, Dr Ulrich Bez said: "Like other premium car brands, Aston Martin has been forced to take action to respond to the unprecedented downturn in the global economy. These are regrettable but necessary measures in the extraordinary market conditions we all now face.

"Overall we remain confident that the Aston Martin brand is the strongest it has ever been - with dedicated design, engineering and manufacturing facilities and an award-winning product range, we remain well positioned for the upturn in the economy."

Ford says it might sell Volvo

Ford Motor is exploring the possible sale of Volvo Cars, the company said Monday.

The US automaker said it would "re-evaluate strategic options" for the Swedish brand.

It said its decision had been forced by the decline in the global auto industry and economic downturn.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford President and CEO Alan Mulally in a statement.

One of the options includes the sale of Volvo, which is based in Gothenburg, Sweden.

Ford said the review likely will take several months to complete.

Until then, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo in September.

"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results," said Mulally.

He added: "As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."

Mulally said the strategic review was part of Ford's plans to make sure it has enough money to survive the current downturn.

Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis, Ford said.

Ford bought Volvo for 50 billion kronor ($6.45bn) in 1999 following a bidding war with Volkswagen and Fiat.

The brand was profitable at first, but, more recently, it has been in the red.

Sales slipped 13.5 percent to 295,634 units in the first nine months of 2008.

In the third quarter, Volvo's pretax losses widened to $458 million from $167 million a year ago.

In response, Volvo cut 6,000 jobs this year.

Despite this, Odell was positive about the brand's future. "Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." he said in a statement.

He said Volvo has a strong presence in Europe, North America and the Asia Pacific region.

Said Odell: "We are growing in key markets such as China and Russia, where we are the leading premium brand."

New look for Lincoln's MKZ

The Lincoln MKZ was restyled and re-engineered for the 2010 model year. The most striking change is the large split grille with tall vertical fins, key elements of Lincoln's new design language. Richer-looking materials and a higher level of fit and finish highlight the redesigned interior. The car debuted last month at the Los Angeles Auto Show. Sales begin in the first quarter of 2009.

Bentley boom is over — for now

The global sales slump finally has caught up with high-flying Bentley Motors.

Volkswagen AG's British superluxury brand has enjoyed a terrific decade, but its rapid growth has come to a screeching halt this year.

Sales in 2008 will decline about 30 percent both worldwide and in the United States, said Stuart McCullough, Bentley's board member for worldwide sales and marketing.

At the Los Angeles Auto Show, McCullough said he expects Bentley's global sales to fall to about 7,000 units this year from 10,014 in 2007. And he said North American sales will skid to about 3,000 from 4,290 last year. Through October, U.S. sales were down 30.1 percent to 2,333.

Bentley, which has 37 U.S. dealers, has almost three months of inventory in the United States but does not want to pile on incentives, McCullough said.

"We're not putting on dealer cash or cash for retailing, but we're helping fund dealer stock levels," he said.

If a dealer is considerably above normal inventory levels, McCullough said, Bentley provides financial assistance.

Bentley cut production 15 percent this year. "We saw the cascade coming," McCullough said.

At the Los Angeles show, Bentley rolled out a special edition of its Azure — the 500-hp Azure T. The Azure T will be priced about $50,000 above the standard open-top Azure, which starts at $342,495 including shipping.

Only 400 will be produced, with about 100 coming to the United States. The U.S. debut is expected next summer.

MINI Convertible

MINI cabrio goes topless in first official pictures.

The new MINI Convertible has broken cover, and given the success of the previous drop top it’s no surprise that BMW has lifted the lid on the current generation.

Due to reach showrooms in March, the new MINI comes two years later than its hatchback equivalent. These are the first official pictures of the soft-top and it looks like it's been worth the wait.

The second version of the best-selling convertible will make full use of MINI’s ‘Minimalism’ package, BMW's clever term for its Efficient Dynamics systems. The result is a cleaner more frugal beast. Performance has also been improved and the range-topping Cooper S now pumps out 175bhp from its turbo-charged 1.6-litre unit.

The new cabrio gets a healthy makeover too. A raised shoulder line and added chrome strip surrounding the car, highlight the cars sporty nature. While the trademark circular headlamps and hexagonal grille both remain. There are also two all-new colours making their debuts; Interchange Yellow and Horizon Blue.

Opting for the same two-stage electronically-operated canvas roof as the previous car, the top can be partially opened to act as a sunroof as well as fully retracted.

Another accessory making its debut is MINI’s ‘Openometer’, the add-on records how long the top has been down, letting passengers know how long they've been 'cool' for, air conditioning also now comes as standard.

Prices start at £15,995 for the standard Cooper rising to £18,995 for the Cooper S

Aston Martin One-77

Sneaky Paris reveal gives us a hint of what Aston has in store

We've already seen murky pictures of the million pound Aston Martin, but now the company is wheeling out the real thing - albeit with an inconvenient sheet across most of it.

This is our first glimpse at the One-77, although the idea is that those wealthy enough to buy one will be able to tweak and specify a lot of the car themselves - meaning the slight bits of car we see here may not be standard items, or they could be the base that customers have to work with.

It has also been confirmed the One-77 has a sophisticated carbon fibre chassis, handcrafted aluminium body and a stonking 7.3-litre V12 under the bonnet. 'Exhilarating performance' is promised by Aston in 'the ultimate creative interpretation of the renowned British marque'. Consider us teased. Are you? And would you splash out the best part of a big lottery win solely on a car? Wing your way to the forum and reveal all.

Lamborghini Estoque

New super-saloon from Lamborghini gets its Paris unveil

After several weeks of teasing, we finally know the identity of the all-new model from Lambo. This is the Estoque, a four-door, four-seater concept. Expect a production version to not look much different, though, so long as public reaction isn't too negative. It clearly fits in with the existing Gallardo and Murcielago model ranges, and even has hints of Countach about its front-end.

It's front-engined, four-wheel drive and will likely use a V10 power plant. Oddly for a Lambo, practicality and spaciousness are promised, and are achieved via a long wheelbase, which allows the car's height to stay low and keep the Estoque in line with the rest of the brand's models.

And if you're wondering, the name Estoque is derived from the term for a 35in sword used by a matador in bull-fighting. A typically Lamborghini name, then. The car is a concept for now, but in the company's words, they wouldn't produce a concept that couldn't be feasibly built.

Exciting, or just plain silly? The forum's the place to tell us about this, and anything else that's being revealed in Paris.