Lamborghini sees sales dip before new supercar launch

Lamborghini ceased production of its high-performance Murcielago six months ago and will not see sales pick up again before the second half of 2011 with the launch of a successor supercar, its CEO said on Friday.

Lamborghini, a unit of Volkswagen AG's Audi, ended production of the $400,000 Murcielago in May in a move that is bound to hit full-year revenues, Stephan Winkelmann said in an e-mail to Reuters.

"This will surely have an impact on our sales performance. Compared with 2009, we will pay for the absence of the Murcielago this year," he said.

Founded in 1963 by Ferruccio Lamborghini, the company has been hit hard by the global economic crisis.

First-half sales fell 2.6 percent to 152.9 million euros ($216 million), despite continued growth in Asia, after dropping 41 percent to 281 million euros in 2009.

"In general terms, a return to the record levels seen in 2007-2008 will not be immediate, considering the slow demand from markets like Europe and the United States," Winkelmann said. "We see a recovery starting from the second half of next year." Lamborghini sold a record 2,430 cars in 2008.

The Murcielago, which is named after a fighting bull like its famous predecessor, the Diablo, and its cheaper sibling, the Gallardo, is Lamborghini's top-selling 12-cylinder car, with more than 4,000 delivered in nine years, of which 409 were sold in 2009. The last Murcielago left the company's base in Sant'Agata Bolognese, Italy, in May, for a Swiss customer.

Selling for up to 300,000 euros ($424,300) apiece, the Murcielago costs almost twice that of the Gallardo, now the company's only product on offer until the next supercar model is unveiled in Geneva in March 2011.

Looking ahead, Winkelmann said Lamborghini aimed to launch a new model every year and boost investments in new technologies.

A new initiative will be announced in Los Angeles in a couple of weeks, he said.

Lamborghini rival Ferrari, which reported third-quarter revenues of 446 million euros, up 12.6 percent from a year ago, is looking to post near record results for this year, the Fiat unit's chairman, Luca Cordero di Montezemolo, said in September.

Citroen DS9 gets greenlit for China

The ‘French S-Class’ based on the Metropolis Concept is on its way, with petrol hybrid engines and a wheelbase longer than Audi A8.

French giant Citroen is taking its luxury DS range to the next level! The company is set to launch a new flagship saloon to compete head-on with Mercedes’ S-Class, as well as the Audi A8 and JaguarXJ. And Auto Express has learned it will be badged DS9. 

Designed to show just what the upmarket DS sub-brand is capable of, the newcomer will take its lead from the Metropolis concept, which was revealed at the Shanghai Expo back in May. And it will also be built in China. 

Speaking to Automotive News China, Citroen’s head of Asian operations, Gregoire Olivier, said: “The Metropolis will happen, it will become a real car."

“The styling elements will be used for a high-level Citroen to be developed in China. We want to build up the premier line in the country, and this concept is central to this approach.”

The Metropolis uses the C6 executive saloon’s platform, and is 5.3 metres in length – that’s longer than an A8 LWB. It has a 2.0-litre petrol V6 mated to an electric motor, which delivers 460bhp and CO2 emissions of 70g/km. 

A similar powertrain is expected in the DS9, although details have yet to be finalised. Scheduled to enter production in late 2012, the DS9 will be built as part of Citroen’s joint venture with the Changan Automotive Group in Guangdong province. 

Small Cadillac will take aim at Mercedes C class, BMW 3 series

The new Cadillac model that General Motors announced today will be aimed at the smaller models produced by BMW, Mercedes-Benz and other luxury brands.

The rear-drive Cadillac is expected to be called the ATS and arrive in showrooms in 2012 or early 2013, according to industry sources. 

GM CEO Dan Akerson described the car as “a rear-wheel drive performance car [that] will compete against the C class Mercedes. They call it C class because it is very average.” 

The car also will compete against the BMW 3 series, he said. 

Akerson made the announcement at the automaker's Lansing Grand River assembly plant in Lansing, Mich. GM plans to spend $190 million to modify the plant to build the ATS. A second shift and 600 jobs will be added. The timing for the second shift and the additional employees was not announced.

GM also did not identify the name for the car or give the time frame for production.

Union help

Joe Ashton, UAW vice president of the union's GM department, said “the UAW recognizes the paramount importance of innovation, flexibility and partnership with management to respond to global economic pressures. 

“We are proud to play our part in the turnaround at GM. Our mission is to make the highest quality products for the best value,” Ashton said in the news release. 

The plant currently assembles the Cadillac CTS and STS.

Since emerging from bankruptcy in July 2009, GM has announced investments totaling more than $3.1 billion in 21 U.S. plants.

“The 3 series is BMW's biggest seller,” said Jim Hall, director of industry analysis at 2953 Analytics. Cadillac has “to go with the core of the market.”

Last year, BMW sold 90,960 3-series models in the United States, a 19 percent drop from the previous year. But for the nine-month period this year, BMW sold 73,395 3-series models, a 9 percent increase over the same period in 2009. 

Full-line luxury brand

The ATS and the upcoming XTS sedan are part of Cadillac's plan to position the brand as a full-line luxury brand. The XTS will share a front-drive platform with the Buick LaCrosse and other GM models. It will debut in 2011. 

A larger, rear-drive Cadillac that would rival the Mercedes-Benz S class and BMW 7 series in pricing is planned later in the decade.

Cadillac sold 105,013 vehicles during the January through September period, a 44 percent increase over the same period in 2009. The automaker sold 109,092vehicles in 2009, a 32 percent decrease over the previous year.

The ATS will be developed on GM's new rear-drive Alpha vehicle platform. The platform will be used for a range of ATS models -- a sedan, coupe, convertible and possibly a wagon, Hall said. 

GM also expects this smaller Cadillac to be more acceptable as an export model, he said.

Stretching the Alpha

The Alpha platform also will be stretched to develop the next-generation CTS. That car is expected to debut in 2013 or 2014.

The platform will not be unique to Cadillac. The next-generation Chevrolet Camaro will share the platform in 2014 as well as a possible sporty, high-performance Chevrolet sedan that is under consideration. 

Prior to GM's bankruptcy and the elimination of brands, a Pontiac model also had been slated to share the platform.

PRESS RELEASE: GM to Invest $190 Million, Add 600 Jobs at Lansing Grand River

LANSING, Mich. – General Motors today announced a $190 million investment in its Lansing Grand River assembly plant for the production of a new Cadillac model. The investment will create 600 jobs and result in the addition of a second shift.

“America's fastest-growing luxury brand this year is about to get even more competitive with the addition of an all-new small luxury car,” said GM Chief Executive Officer Dan Akerson. “This investment demonstrates GM's commitment to Cadillac and to a strong U.S. manufacturing base.”

The announcement brings the total of new U.S. investment to more than $3.1 billion and more than 7,900 jobs that GM has created or retained in 21 U.S. plants since emerging from bankruptcy in July 2009.

Built in 2001, Lansing Grand River is GM's second-newest U.S. assembly plant and the manufacturing home of the Cadillac CTS and STS as well as their V-series performance versions. Earlier this year Lansing Grand River received the J.D. Power and Associates Bronze Plant Award for initial quality.

Joe Ashton, UAW vice president of the GM Department, said, “Today's announcement is further proof of what UAW President Bob King said earlier this summer, ‘The UAW recognizes the paramount importance of innovation, flexibility and partnership with management to respond to global economic pressures. We are proud to play our part in the turnaround at GM. Our mission is to make the highest quality products for the best value.' 

“The members of UAW Local 652 have consistently demonstrated that they can compete with any labor force on the globe,” Ashton added. “The commitment, dedication, and hard work of GM's UAW members provide the foundation for the positive news coming from the company.”

This year, the Lansing Grand River team launched the CTS Coupe, lauded by the automotive press for groundbreaking design and outstanding performance. The Coupe extends the CTS line, which has been named to Car and Driver's 10 Best list for three straight years. It shares design cues with the CTS Sport Sedan, but the Coupe has a wider track, lower roofline and shorter length, giving it an aggressive stance and sleek, athletic profile

The timing of the new Cadillac and the new jobs as well as the start of the second shift will be announced later.

Chrysler to roll out new Pentastar V-6 engine on 13 models

Chrysler Group said today it plans to make its Pentastar V-6 engine available on 13 models, a move that will result in improved fuel efficiency, more horsepower, weight savings and reduced emissions and manufacturing complexity.

The 3.6-liter Pentastar V-6 -- the most advanced six-cylinder engine ever produced by Chrysler -- will become the automaker's workhorse engine and will replace seven V-6 engines over the next three years.

It is expected to account for more than a third of the powertrains offered by Chrysler by 2014, and improve the automaker's average corporate fuel economy by more than 25 percent.

“The Pentastar engine is suited to meet the requirements for a full range of vehicle applications in terms of power and fuel efficiency, including passenger cars, minivans and sport utilities,” Bob Lee, vice president of engine engineering for Chrysler, said in a statement. “It has been designed for today and many years to come. Already, we are looking forward to adapting future technologies as they become available to the Pentastar V-6 for even more fuel efficiency and performance.”

The Pentastar V-6 was designed to be compact and lightweight, and can be used in front-, rear- and all-wheel-drive models, Chrysler said.

It was introduced on the 2011 Jeep Grand Cherokee. A 3.6-liter version tuned to get 305 hp will debut on the 2011 Dodge Challenger. Chrysler said the Challenger version will provide a 55-hp boost over an outgoing V-6 and enhance fuel economy to 18 miles per gallon in city driving and 26 mpg on the highway. 

The boost in horsepower for 2011 will put the Challenger on par with the Ford Mustang. 

As the Pentastar V-6 is introduced on more models, Chrysler plans to phase out seven V-6 “legacy engines' that range in size from 2.7 to 4-liters. Some of those V-6 engines were developed jointly with former parent Daimler AG.

Chrysler said the engine will run on regular 87-octane unleaded fuel, as well as on E85 blended gasoline.

It will also allow Chrysler to reduce major engine components from 189 parts to 32. It is 94 pounds lighter than the 3.7-liter engine it replaced on the Jeep Grand Cherokee and 42 pound lighter than the 3.5-liter it replaces in the Chrysler 300 sedan.

On minivan models that were equipped with a 4-liter engine, horsepower has been increased by 32, to 283. And the new Dodge Charger will feature a Pentastar V-6 with 292 hp -- 42 more than the current model.

The engine is assembled in a new $364 million plant in Trenton, Mich., as part of the $730 million Chrysler invested in the Pentastar program. Chrysler says the Trenton site will be able to produce more than 400,000 Pentastar engines a year.

A second factory in Saltillo, Mexico, also is scheduled to assemble the new engines.

Next Beetle takes evolutionary design step

The redesigned 2012 Volkswagen New Beetle will undergo an evolutionary styling change when production begins next year.


The redesigned 2012 New Beetle shares a vehicle platform with the Volkswagen Golf. The New Beetle will continue to be assembled in Puebla, Mexico.

In an interview last October, Stefan Jacoby, who at that time was the president and CEO of Volkswagen Group of America, said the next generation New Beetle would have more space for rear-seat passengers and better packaging. However, the overall dimensions of the vehicle would not significantly change.

Jacoby said the major complaint about the current car — aside from its age — is the cramped rear seat. Few changes have been made to the current New Beetle since it debuted in 1998. 

New Beetle sales peaked at 83,434 units in 1999 and have plunged considerably since then. VW sold 14,085 New Beetles last year in the United States, a 47 percent drop from 2008. Through September, sales are up 27 percent from last year, to14,747.

Volvo to launch EV in 2011

Swedish brand plans 1,000 electric C30s for Europe next year

Volvo Car Corp. will launch its full-electric C30 in early 2011 and plans to have a European test fleet of about 1,000 cars.

Volvo CEO Stefan Jacoby told Automotive News Europe that Volvo's home market, Sweden, and its neighboring Nordic countries will get the electric vehicle first. He said the automaker also aims to launch the EV in the UK, Germany and Belgium.

“It will be in major European markets,” he said, adding that Volvo will target local governments as its first customers for the car.

Volvo said that C30 DRIVe Electric test fleets also will be operating in the United States and China starting next year.

The CEO said it is too early to say how larger the U.S. and China test fleets will be. He also declined to say when the car will be in dealer showrooms.

“We will not rush,” he said. “We need feedback from the fleets before we offer this to end customers.”

He said the C30 DRIVe Electric, which has a range of 150km (about 93 miles), is a mature product that has all the safety features that Volvo customers expect as well as go-kart-like responsiveness.

Saab 9-3 Aero Carlsson announced

A classic name returns as rally legend Erik Carlsson has a 276bhp Saab 9-3 Aero named after him

Saab has revealed a 9-3 Aero Carlsson edition. Celebrating the 50th anniversary of Erik Carlsson’s first RAC Rally victory (the first of a hat-trick, in his 750cc Saab 96), it evokes memories of Saab 900 and 9000 Carlsson sports saloons of old.
 
Equipped wih a 2.8-litre V6 turbocharged engine, it boasts 276bhp and 295lb ft of torque, enough for a 0-60mph sprint time of just 6.9sec, while Saab’s famed in-gear shove is present, with a 6.3sec 50-70mph time. Top speed is limited to 155mph.
 
Power is transmitted to the road via Saab’s XWD all-wheel-drive system, complete with an electronic limited-slip differential at the rear. Exterior flourishes include a set of 19in six-spoke alloy wheels, twin exhaust pipes, a rear spoiler and titanium-finish detailing.
 
Erik (who is now 81) should be used to having cars named after him by now, but he’s still apparently over-the-moon about the latest Saab Carlsson – ‘I’m very proud to have such a great car named after me,’ he said. ‘Anyone who loves driving and is as passionate about the Saab brand as I am, will be excited about getting behind the wheel of this car.’ And who are we to argue…
 
Just 96 will be made (a neat link back to Erik’s Saab 96), priced at £26,495, around 20 per cent cheaper than the price of the late Saab 9-3 Turbo X whose engine it shares.

Cruise ship passenger (mistakenly) arrested for prostitution

Florida news outlets this week are abuzz over the story of a cruise ship passenger mistakenly arrested at Fort Lauderdale's port on a prostitution-related charge.

Paola Londono, 31, of Orlando was taken into custody on Sunday at Port Everglades moments after stepping off an unnamed ship that had returned from a voyage to the Caribbean.

The Orlando Sentinel reports police confused Londono for a 24-year-old woman with the same name wanted in Florida's Osceola County.

Despite her pleas of innocence -- and the fact she looked nothing like the mug shot of the wanted woman -- Londono was kept locked up in a Broward County jail for more than 36 hours, according to the news outlet.

"Our database had two Paola Londonos in the system," Osceola County sheriff's spokeswoman Twis Lizasuain told the Sentinel. "How the names crossed is going to be something that we will be looking into."

The wrongfully arrested Londono, who was traveling with her husband, had her 9-month-old child taken from her arms when she was arrested, according to a lawyer quoted in the Sentinel.

"It was outrageous," the lawyer says, noting the two Londono's are five inches and 40 pounds different in height and weight. "These two people could not look more different."

Apple TV revamp expected as Google rivalry heats up

The competition between Apple (AAPL) and Google (GOOG) in the digital living room is about to intensify.

Tech analysts expect Apple soon to revamp its under-performing Apple TV gadget, which plugs into a TV so you can watch movies and shows via iTunes, in order to take on the new Google TV service when it launches this fall.

Google TV is a new way of watching Web content on televisions, via a Google operating system of sorts. Google is partnering with Sony (SNE), Logitech (LOGI), Dish Network (DISH) and others on the service, which will make its debut on a new set from Sony. No specific date has been announced.

To gear up for the competition, tech analysts expect Apple to cut the price of Apple TV to $99 from $229. But is it too late?

"Google is proposing a solution that will change the way we watch TV," says James McQuivey, an analyst at Forrester Research. "This is something Apple needs to take very seriously."

McQuivey doesn't believe a price cut is enough. He thinks Apple has to offer more than iTunes viewing: Apple TV also needs to work with the more than 10,000 software apps that are available for the iPhone and iPad. "Apps are the new definition of the Apple experience," he says.

Unlike the iPhone and iPad, which can connect to a host of entertainment choices from the likes of Netflix, ABC and Hulu Plus, Apple TV owners' only option are downloads from iTunes.

Consumers looking to add Google TV to their living room will have a choice of a new flat-screen Sony HDTV or Sony Blu-ray player that has Google technology built in. Pricing hasn't been announced. For those who don't want a new TV or Blu-ray player, options include a set-top box from Logitech or a new box being offered for satellite TV from the Dish Network.

Piper Jaffray analyst Gene Munster believes Apple eventually will reinvent Apple TV as an all-in-one, high-def TV set with built-in Web connectivity. He sees it launching in 2012 at $1,800-$2,000. "Apple has a golden opportunity to be relevant in the living room," he says. "They're not today."

Apple in recent years has held an event in September in San Francisco to tout new iPods. Munster believes Apple will do the same this year, focusing on music and the Apple TV relaunch.

Apple had no comment.

Munster thinks both Apple and Google have their work cut out for them.

"People don't want another box in their living room," he says. "Google as a separate box is a tough sell."

Of the 220 million flat-panel TVs projected to be sold in 2012, Munster believes that 65% will be Internet connected and that Apple could have 1.4 million of those with a new Apple TV set. That would add 3% to Apple's revenue in 2012, he says.

San Francisco proposal would limit toys in kids' meals

A serious move is afoot to force fast-food giants to make kids meals more nutritionally viable if they want to sell them with kid-luring toys.

In San Francisco, newly proposed legislation would ban toys from most kids meals sold at McDonald's, Burger King and other chains unless the meals meet more stringent calorie and sodium limits. The legislation also would require fruit or veggies in each meal.

The $179 billion fast-food industry is watching with intense interest — aware that menu-labeling requirements that started locally in New York City several years ago have since been copied regionally and will become federal law in 2014 under the health care act.

Kids meals rank among fast food's big sales catalysts. Although kids meal sales are declining — because budget-minded parents sometimes opt for dollar menu items instead — the industry sold about $5.5 billion worth last year, researcher NPD Group reports.

Nothing gets kids more excited about eating out than a kids meal with a toy. That's what 36% of kids under age 6 say they like best about eating out, NPD reports. That compares with 16% who like the food best.

"Companies know it doesn't work to advertise food to kids — they want the toy," says Michael Jacobson, executive director of the consumer group Center for Science in the Public Interest.

For each kid who buys a kids meal, there's typically at least one parent — and often siblings — who make more profitable purchases, says Ron Paul, president of researcher Technomic.

San Francisco now emerges as the biggest city to place a stake in the ground linking kids meal toys and nutrition. Several months ago, Santa Clara County, just south of San Francisco, became the first local government to enact such a law, but it applies to a tiny number of restaurants. In San Francisco, it could affect hundreds.

"There's no fundamental conflict between a healthy meal and a happy meal," says Rajiv Bhatia, environmental health director for San Francisco.

He says chains could easily conform by making relatively small changes in ingredients or portion size, reducing the number of french fries, or replacing fries with veggies, fruit or salad.

Officials at McDonald's and Burger King declined to comment.

"This is just another example of San Francisco taking a bad idea and making it worse," says Daniel Conway, spokesman for the California Restaurant Association. "This ordinance will put restaurant employees in the position of playing food police."