This is Autoline Daily for August 11, 2010. And now, the news.

COULD DRIVERS BE THE PROBLEM?
The U.S. Department of Transportation says it can't find any electronic
problems with Toyotas that can cause unintended acceleration . . . at least
not yet it can't. And remember it has NASA and the National Academy of
Sciences looking into the problem. The Wall Street Journal reports that in
60 percent of the accidents studied, drivers never applied the brakes. In
other cases, the brakes were only partially applied. In five cases the data
recorder did not record anything, presumably that would be a minor fender
bender that wouldn't trigger the recorder. And in one case, the floor mat
jammed under the brake pedal. Safety advocates say this does not exonerate
Toyota, but in my view that's only because they don't want to believe that
drivers can make mistakes. After all, how can you file massively big
lawsuits against a giant car company if the driver is at fault?

GM'S Q2 RESULTS
GM is going to report its second-quarter profit tomorrow, and the analyst
community is expecting big results. But don't expect GM to match Ford's
profit of $2.6 billion for the quarter. It's still struggling in Europe and
it only just acquired its own finance arm. Ford, of course, is profitable in
Europe and made a boatload of money off its finance arm.

ANALYSTS SAY "DUMP DAIMLER"
And despite the big profits that Daimler generated which we reported about
last week, two analysts from the Royal Bank of Scotland say this is a good
time to short the stock. In other words, they say it's time to place your
bets that Daimler's stock price is going to drop. They predict the drop
because of slowing car sales in China, slower truck sales in the U.S., and
overcapacity in Europe. Guess what? Yesterday, Daimler's stock dropped
nearly 2 percent.

CHRYSLER DEALERS PREP FOR FIAT
About 600 Chrysler dealerships in the U.S. were selected to attend the "Fiat
Experience" at the company's headquarters later this month. It's all about
the company's plans for the Fiat brand in North America. Dealers will
initially set up separate displays and sales areas for Fiat, eventually
transitioning to a full dealership as volumes grow. It starts with the
American introduction of the Cinquecento, the 500, but will later include
other models. It's important to note, Fiat stores will be separate
franchises, and the franchisees will be announced sometime in the fourth
quarter.

HONDA CIVIC TYPE-R GOING AWAY
Sad news for sport-compact enthusiasts in Europe. Autoblog reports that
Honda is stopping sales of its Civic Type-R in most of the continent by the
end of the year. The reason for the model's cancellation is that its
2.0-liter, 198-horsepower four-cylinder engine can't meet Euro-V emissions.
Honda will still build the Civic Type-R at its Swindon plant in the UK for
sale elsewhere in the world, including Japan.

JAGUAR/LAND ROVER SALES JUMP
Yesterday we reported that Jaguar/Land Rover posted a profit over the last
quarter and one reason for that was a big jump in sales. According to
Bloomberg, sales are up nearly 60 percent for the two companies, which was
more than they expected. So now Tata is begging Ford for more engines so it
can build more cars. When Tata bought the luxury brands from Ford in 2008,
part of the agreement involved Ford supplying engines until 2019.

DETROIT'S (GOOD) INVENTORY PROBLEM
Speaking of short supplies, Bloomberg reports that dealers for the Detroit 3
are having a difficult time getting the inventory they need. The companies
are keeping a tight lid on production to avoid discounts and too much
supply. This is good for the automakers' bottom line but it's leaving many
dealers with low volume. One Ford dealer said he ordered 100 Fusions in July
but only received seven and a Chevy dealer says GM isn't producing enough
Equinoxes to meet demand and believes he could triple - or quadruple - sales
if he could get more.

LUXURY BRANDS AT WAR IN CHINA
Meanwhile, in China, a price war is breaking out in the luxury segment.
According to Gasgoo, Mercedes is slashing the price of the old E-Class by
$15,000 before the new E-Class hits the market. And BMW is slashing the
price of the 5 Series by $11,000. Analysts expect that half of all luxury
dealers will dip into the red because of lower prices and higher inventory.

Coming up next, it's time for You Said It!

And now it's time for some of your feedback.

Donut wrote in about our report on the paper car that Epson made of the
Acura NSX and says, "Hey John, that story you guys did about the EPSON NSX
was a little off. EPSON has been doing those paper models for years and that
1:1 scale model was of the old NSX not the 'next generation model.' Other
than that, good job. I am a big fan and watch every day."

Donut, thanks for the correction. We do a pretty good job here overall, but
I am constantly amazed at the knowledge that you, our viewers, have of
what's going on in the automotive world.

Roger T. saw our story that Toyota is stretching-out the design cycle of the
Scion tC to six years and asks, "Is this something we should anticipate
happening across the industry? But I wonder how Hyundai churns new products
so frequently at the same time others such as the Japanese linger for so
long with basically unchanged products. How do we explain that?"

Roger, we explain it with the surging cost of the yen which is killing
Japanese automakers, which now have to figure out how to slash costs, and so
are not refreshing products as frequently. And we explain it by noting
Hyundai has really brought something new to the party in its super-efficient
product development process. We really need to get some academics into
Hyundai to study their system and learn what they're doing differently.

Todd J. also weighed in on this issue. He says, "Speaking of long
life-cycles. how about the Crown Victoria?! Hahah."

I know, it's pretty funny. But you have to remember who buys the Crown Vic:
police departments, taxi cab companies, and elderly drivers who like things
the way they always were. Remember, back in the 1950s and '60s Detroit
changed the designs of its cars every year. They called it the annual model
change. From a sales standpoint that's the way to do it. And whoever cracks
the code of how to do it again could do big time damage in the marketplace.

Have we got a great guest for tomorrow's Autoline After Hours. What if you
could just bolt a new fuel-injection system onto an engine and get a 30
percent improvement in fuel economy? Sound crazy? Well, a company called
Transonic Combustion says it can do it. And when I learned that Bob Lutz,
Don Runkle and Vinod Khosla are on the company's board of directors, that
made me sit up and pay attention. Tune in tomorrow night for what could
truly be a breakthrough in automotive technology.

And don't forget that next Wednesday we're LIVE from Woodward Avenue for the
Dream Cruise. If you've got a classic car you'd like to bring to the show,
register it with us at ViewerMail@AutolineDetroit.TV.

And that is it for today's news in the global automotive industry. Thanks
for watching, we'll see you tomorrow.

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This is Autoline Daily for Friday August 6, 2010. And now, the news.

GM PREDICTS BIG PROFITS

All kinds of news about General Motors today. At the Management Briefing Seminars, a big industry conference, Ed Whitacre, the CEO of GM, said the company will post impressive earnings for the second-quarter. Here’s my Autoline Insight. In the first quarter GM earned nearly $900 million, so presumably he means a lot more than that. Ford made $2.6 billion for the second quarter, but I’d be surprised to see GM make that much simply because GM’s European operations are losing money, while Ford’s are profitable. Unless GM earned enough in China to offset its losses in Europe, it’s unlikely it will match Ford’s profitability.

GM WANTS ONE BIG DUMP

Whitacre also said he expects the federal government to dump all its stock in GM all at one time. Most analysts had expected the government to sell its holdings in GM over time, since dumping those shares all at once would likely cause the price of the stock to crash, or certainly go down. Remember, the government owns warrants that essentially give it more than 60 percent ownership in GM. And while GM will likely have a lot of influence over how and when those shares are sold, it will still be up to the Obama Administration to determine how it wants to cash in.

GM BOOSTS AD SPENDING

But in another sign of how much GM is recovering, the Wall Street Journal reports the company is raising its advertising budget and will be back in the Super Bowl. It reports that GM spent $2.2 billion in advertising in the U.S. last year, and while GM says that number is incorrect, it does not say what it did spend. About 70 percent of that ad budget will go to Chevrolet, with the remainder spread between Buick, GMC and Cadillac.

GM HIRES BACK 6,900

And in another sign that GM is recovering strongly, the Detroit Free Press reports that GM has hired back 6,900 people since emerging from bankruptcy and is looking at reopening an assembly plant. It won’t say which one, but the most logical one is in Springhill, Tennessee. It’s a modern facility that used to make the Chevy Traverse, and that is in relatively short supply.

TOYOTA BATTLES SPECULATORS

After originally planning to only make the Lexus LFA available for lease in the U.S., Toyota will now allow customers to purchase the vehicle outright . . . but there’s a catch. According to Autoblog, customers can own the car as long as they agree to give the dealer the first right of refusal to buy the car back if the owner wants to sell the LFA within the first two years. The dealer can purchase it for either the fair market value or the original price, whichever is lower. The car costs $375,000 by the way. The reason Toyota is doing this is to prevent speculators from buying them, then quickly turning around and selling them at massive mark-ups.

STRONG YEN WORRIES HONDA

Honda is concerned that the surging value of the Yen is going to kill exports out of Japan. According to the Wall Street Journal, the company’s Chief Financial Officer, says that the currency’s current value of 85 yen to the dollar, is not economically feasible and that it’s impossible for the yen to stay at those levels long-term. A strong yen makes products made in Japan more expensive in other markets and the company makes less in profits because of the exchange rate. However, I would add that the only way Japan can quickly reduce the value of the yen is to engage in currency manipulation, and that could lead to trade tensions with the U.S.

MID-ENGINE ‘VETTE?

Rumors of a mid-engined Chevy Corvette have been floating around for years. This is the CERV III concept from 1990. But if a report from British enthusiast ragazine Autocar is true, an unlikely source has CONFIRMED the project. According to the article, a senior Saab engineer was developing a dual-clutch transmission for a mid-engined supercar. The wet-clutch gearbox was reportedly capable of handling 590 pound-feet of torque, just a whisker less than the Corvette ZR-1’s supercharged LS9 small block cranks out. It’s speculated that engineering on this car is complete but it was shelved in 2008 when the credit crunch hit. New rumors suggest that the project could be back on track now that the economy is starting to improve and GM is out of bankruptcy.

OPEL’S LIFETIME WARRANTIES

In Europe, the Wall Street Journal reports that Opel is now offering lifetime warranties. Ok, “lifetime” is a little disingenuous, but they’ll cover key components like engines, transmissions and electronics for up to 160,000 kilometers, which is just about 100,000 miles. How are they not getting sued for false advertising? Well, here in the U.S. the EPA estimates that the average American driver puts 15,000 miles on their vehicle each year. That means it takes about seven years to roll 100,000. In Europe, the average person only drives about 8,000 miles per year which means it’ll take 14 years or more to hit the warranty limit! And 14 years legitimately covers the lifetime of a car.

Coming up next we’ll take another look at the 2011 Buick Regal. Back right after this.

Earlier in the week we took a brief look at Buick’s brand-new small sedan, the Regal, and today we’re jumping into some of the technical details of the car. Again, Autoline Daily correspondent Craig Cole reports.

One of GM’s goals with the Regal was to sell it in markets around the world.  This can be challenging – and expensive – if you’re not careful.  Different countries have different regulations, and if you don’t plan ahead you can end up doing a lot of unnecessary reengineering.  With the Regal GM was thinking ahead so the changes needed to sell it in the U.S. were relatively minor.

The Regal is Buick’s smallest car.  Its wheelbase is about four-inches shorter than the LaCrosse’s but it’s still more spacious than the competition.  It has a few more inches of rear-seat legroom than the Audi A4 or the Acura TSX AND it has a couple more cubic feet of cargo volume in the trunk, plus a low lift-over height.

Inside, the interior exactly what you expect from post-bankruptcy GM.  It’s stylish and very well made.  The only problem is, there are a lot of buttons on the center stack and it has an iDrive-style knob.  I found these controls a little confusing on my short test drive, but you’d probably get used to them pretty quickly if you lived with the car.  Something that should be an option for a lot of potential buyers given what GM is asking for it.

Thanks for that report, Craig. The Regal has a significant pricing advantage over its competition. The TSX starts at almost 30 grand and the A4 starts nearly where the Regal tops out. We’ll have to wait and see if this benefit translates into sales for GM, but the early sales signs are encouraging.

And that is it for the top news in today’s global automotive industry, thanks for watching, we’ll see you next week.

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This is Autoline Daily for August 5, 2010. I want to thank the Autoextremist, Peter De Lorenzo, and Bloomberg/BusinessWeek’s David Welch for filling in for me the last two days. I thought they did a great job of presenting the news, and speaking of that, let’s get right to it.

TOYOTA BENEFITS FROM REPOS

Toyota reported a $2.2 billion profit in its latest fiscal quarter, something that surprised a lot of people because of all the problems at the company with recalls, quality problems and law suits. The Wall Street Journal took a closer look at Toyota’s earnings and discovered that a significant part of those profits came from the company’s finance arm in the United States. And a good chunk of those profits came from higher used-car residuals so that when people defaulted on their loans, the cars could be repossessed and sold for more than the loss rate that was expected. Amazingly, Toyota reported higher profits in North America than any other region in the world.

NORTH AMERICAN PRODUCTION GOING UP

Yesterday we reported that car sales were up for the month of July in the American market and it looks like automakers think that trend will continue. According to Ward’s, automakers are planning production increases in North America for the third-quarter. They’ll be making just over 1 million units a month for the quarter. Interestingly, the increases are coming from more light-trucks being built, which are offsetting decreases in car production.

HYUNDAI’S 50 MPG GOAL

Hyundai is shaking things up again.  According to Ward’s, company President John Krafcik said the automaker’s U.S. vehicle fleet will achieve 50 miles per gallon by 2025.  That just 4.7-liters/100 km!  He admits it’s a lofty goal, but says the company has a road map in place for how to get there.  It might just be possible for Hyundai to hit that target since they are NOT a full-line manufacturer.  They offer no full-size trucks or SUVs in the U.S. like the Big Three do.  Krafcik also said that an important part of the company’s fuel-economy pledge will be unveiled at the Los Angeles Auto Show later this year.  A Prius fighter, perhaps?

DON’T FORGET DIESELS!

Speaking of hybrids, BorgWarner CEO Tim Manganello says the U.S. government is placing too much emphasis on hybrids and electric vehicles at the expense of diesels. According to Ward’s, he says consumers more often opt for a diesel option rather than a hybrid. For example, 40 percent of VW Golf buyers go for a diesel while only 5 percent of Ford Escape buyers choose a hybrid. Manganello also sites an EPA study that says the U.S. could reduce its oil consumption by 1.4 million barrels a day if just one-third of the fleet switched to diesel.  He also claims that a diesel that runs on 20 percent biodiesel or a hybrid that can run on 20 percent ethanol has lower CO2 emissions than an electric vehicle, measured on a well-to-wheel basis. Borg-Warner makes turbochargers for diesels that make up nearly half of all new-car purchases in Europe.

CARDBOARD NSX

Here’s a fascinating story we found on Autoblog. Epson, the printer company showed off a cardboard version of the next-generation Acura NSX racecar. When you look at the finished product it’s hard to believe it’s made out of cardboard. But Epson just released these photos of how the whole thing was put together. This thing was painstakingly put together by a couple of guys who really knew what they were doing. Even the tires are made out of cardboard! And just in case you’re interested in doing something like this, Epson is releasing a 1/24 scale model of this, and other racing cars. Just follow the link in today’s show notes to find the link to Epson’s site.

GM WIND TUNNEL TURNS 30

GM’s Aerodynamics Laboratory is celebrating an important milestone this month.  The company’s wind tunnel, which is the largest of its type in the world dedicated to automotive work, is turning 30.  It was first put into operation back in August of 1980.  With a 43-foot diameter fan and a 4,500 horsepower electric motor it can generate hurricane-force winds.  Over its three decades of service everything from cars (PAUSE) to boats (PAUSE) to people have been tested.  Thanks to the laboratory’s work, the company has saved drivers countless gallons of fuel by designing more aerodynamically efficient vehicles.  In 30 years engineers have cut the coefficient of drag of GM vehicles by 25 percent!  That improvement saves the average driver between $100 and $300 per year in fuel costs at $3.00 a gallon.  GM also found that it’s more efficient to leave pickup-truck tailgates up instead of down because there’s less drag.

Coming up next, it’s time for “You Said It.”

And now it’s time for “You Said It.”

Lots of you liked Peter De Lorenzo’s look at the new Ford Explorer. dcars wrote in to say, “I could almost hear the national anthem in the back ground as Peter spoke about the Ford Explorer. I’m glad I had on my dark-blue Ford socks today.”

Gary King writes in to say he loves the show but has one criticism. He saw our interview of with Massimo Frascella, the guy who did the design on the Kia Sportage, and asks, “Does your cameraman use his cell phone to take the video? I have noticed several times in spots like this one you only get a very narrow view of parts of the vehicle. You don’t see, ever, the whole car or at least the whole side/front or side/rear to know what it really looks like. This drives me crazy! Help this guy get a real camera or some training.”

Gary, the camera person is excellent, and it was shot with a high-def camera. But as we noted in that piece, we grabbed Mr. Frascella late at night outside the hotel in San Francisco where Kia held the media launch for the vehicle. It was shot out on the sidewalk with pedestrians walking around it. It was either shoot it right then or not get the interview at all. And I think it was well worth getting the interview.

A lot of you are scratching your heads over the latest news regarding the Chevy Volt. G.A. Branigan writes in to say, “Let’s see, Chevy Volt=41k, now it is designed to run on hi-test fuel, too. What are they smoking at gm??”  G.A., I think GM made a big mistake not emphasizing the lease rate on the Volt of only $350 a month, which is pretty much middle of the pack when it comes to costs these days. But emphasizing the $41,000 price, they’ve pretty much created the impression that few people will be able to afford it. And as far as the Volt’s engine needing premium fuel, I’m at a loss for words. That I don’t understand.

Don’t forget to tune in to Autoline After Hours tonight, when our guest will be Tom Kowaleski, the head of communications for BMW North America, and a long-time veteran of the auto industry having also worked at General Motors, Chrysler, Renault, and I think American Motors. We’ll have to ask him about that. Join me, the Autoextremist Peter De Lorenzo, and Jeff Green from Bloomberg tonight live, at 7 p.m. Eastern Time.

And that is it for today’s top news in the global automotive industry, thanks for watching, we’ll see you tomorrow.

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It’s Wednesday, August 4, 2010. I’m David Welch, staff writer at Bloomberg BusinessWeek, taking a turn in the Autoline Daily hot-seat for John, who should be back tomorrow. Here’s what’s going on in the automotive world.

JULY SALES RESULTS

Sales numbers are in and the results are mixed depending on what market you’re in. First let’s look at the U.S. where sales improved in July compared to June. According to Bloomberg, the industry sold just over 1 million units last month, which is 6.6 percent higher than June. That number brings July’s SAAR to 11.98 million. Now over to Europe where things aren’t going as well. According to the AFP, sales plunged 30 percent in Germany last month, with new vehicle registrations totaling only 240,000 units. Also, new-car sales were down by a quarter in Italy and Spain, and 13 percent in France. And as we’ve been reporting, new-car sales in China are starting to slow down, too. According to Gasgoo, sales were down 7 percent in July compared to June with a total of 1.1 million vehicles sold.

VOLT CALIBRATED FOR PREMIUM GAS

Last week when GM announced pricing of the Chevy Volt, the company also revealed that the engine in the vehicle is calibrated to run on premium-grade gasoline. Now, Autoblog has learned that the company’s extended-range plug-in can also run on cheaper regular fuel thanks to the help of a knock sensor, which adjusts the spark timing to avoid engine damage.

VW MAY BUILD AUDIS IN AMERICA

Volkswagen is getting ready to start producing vehicles at its new plant in Chattanooga, Tennessee, and Ward’s reports that the automaker is looking into the possibility of building Audis at the facility as well. But a company spokesman stressed that no decisions on the matter have been made yet.

VW MAY BUILD ENGINES IN AMERICA

Another big maybe is whether VW will manufacture engines in the U.S. According to Ward’s, the company intends to make a decision by the end of this year. As production of its new midsize sedan ramps up in Tennessee it will import engines from Germany.

GM INVESTS IN BRIGHT AUTOMOTIVE

Now for some news on the EV front. General Motors said it will invest – through its GM Ventures subsidiary – $5 million in Bright Automotive, a startup carmaker based in Indiana. The money will help get production rolling of a new plug-in hybrid van called the IDEA. Think of it as an electric Transit Connect. It’s designed especially for telecom and utility companies, or other organizations with big fleets of trucks. The company is shooting for an electric-only range of 40 miles and a 300-mile range on gasoline power. Look for the IDEA to possibly debut in 2014 with a price tag of $41,000 BEFORE the federal EV tax credit. The investment from GM could help legitimize Bright, possibly encouraging more private investment or even allowing it to get loans from the U.S. Department of Energy.

CITROEN PLANS NEW BRAND

Speaking of startups, Citroen is planning to introduce a new sub-brand. According to Ward’s, the French automaker will unveil its yet-unnamed division at next month’s Paris Auto Show. Citroen is targeting what it calls the “iPod generation,” and it’s looking to define the lineup with clever design and simplicity, not price. The styling of its vehicles is said to be based off the C-Cactus concept from 2007.

Coming up next, some of my thoughts on the politics behind the auto bailout. We’ll be back right after this.

WAS THE AUTO BAILOUT A SUCCESS?

You can tell it’s campaign season. President Obama was in town last week touting the success of the auto bailout. Among his claims, the President said that the U.S. economy would have lost more than 1 million jobs had GM and Chrysler failed. Sure enough, his political opponents — namely California Congressman Darrell Issa — came out and charged that the President didn’t really create jobs. The industry isn’t employing many more than it did before the bailout money was invested and GM and Chrysler went into bankruptcy.

This is all hot air from both sides. First, the Obama Administration is a little early to declare victory. GM is certainly getting traction, having posted a profit in the first quarter. And Chrysler is close to breaking even. But both companies are losing market share. There are signs that GM is winning some new buyers, buy Chrysler’s prospects are still very difficult to gauge. And until we know how much it cost the taxpayers to save Detroit, measuring the success of the bailout is nearly impossible to do.

That’s not to say I agree with Issa. The auto industry has added back 55,000 of the 334,000 jobs it lost during the crisis. But had GM or Chrysler slipped into liquidation, the job losses would have been much greater.

To really measure the bailout, we need to see how much of the $60 billion in GM and Chrysler is returned. Based on where GM’s bonds trade, the company is worth $53 billion. It needs to be worth at least $66 billion and possibly as much as $80 billion for the government to break even on its GM stock. Since those bonds aren’t as liquid as stock, analysts say GM’s value should be higher than $53 billion when the stock trades. If the feds break even, we know it was a good deal. Even if they don’t, it might end up being a decent investment. Say the government recovers 80 percent of the money. Would $12 billion be a good price for saving two major automakers? During the depth of last year’s crisis, I think plenty of critics would have taken that deal.

And that’ll do it for today’s show. But before I sign off, I want to remind you to tune-in to Autoline After Hours tomorrow night at 7:00 p.m. Eastern Time on our website, AutolineDetroit.tv. Unfortunately I won’t be there – you’re getting your weekly-dose of David Welch a day early – but our special guest will be Tom Kowaleski, the VP of Corporate Communications at BMW. Should be a good show. Again, I’m David Welch from Bloomberg BusinessWeek, thanks for watching, John should be back in the anchor chair tomorrow.

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This is Autoline Daily for August 3, 2010.  I’m Peter De Lorenzo, the Autoextremist, filling in for McElroy who will be back later in the week.  Here are today’s top stories.

BMW “OVERJOYED” WITH PROFITS

In another sign that the global economy may be improving, Bloomberg reports that BMW is filled with “joy” after posting its biggest profit in 2 ½ years.  The company’s second-quarter net income increased to $1.1 billion thanks, in part, to the popularity of its redesigned 5 Series.  Two more reasons for the brand’s strong showing – record sales in China and a rebound in the U.S. market.

HEAVY-DUTY HORSEPOWER WAR

A few months back we reported that GM was trumping Ford with its redesigned Heavy-Duty pickups.  The company’s upgraded Duramax diesel puts out 397 horsepower and 765 pound-feet of torque, topping Ford’s 2011 Super Duty.  But now the blue oval is fighting back.  According to the Detroit Free Press the company is boosting the output of its Power Stroke diesel by another 10 horsepower and 65 pound-feet of torque, bringing the totals to 400 and 800 respectively!  That’s enough to make the truck No. 1 in payload, towing and power … for now at least.

JAGUAR’S FUTURE PRODUCT PLANS

Jaguar is thinking about new product as the economy starts to get rosier.  According to the Detroit Free Press, the Indian-owned luxury brand plans to unveil two new models including a station wagon and a roadster – the spiritual successor to the E-Type perhaps?  Also, in the company’s annual report Chairman Ratan Tata said they’re considering an entry-level model but he didn’t share any more details.

“SHOCKING” DEALER MARKUP

Last week GM announced that the Chevy Volt will start at $41,000, but Edmunds AutoObserver reports you could be paying a lot more than that for one. After contacting an unnamed California dealer about the car, Edmunds got a pretty surprising response. The dealer claimed that they plan to charge $20,000 more than the MSRP for the Volt due to the limited-number of vehicles available at launch. Edmunds notes that this exchange may have come before GM announced it will double production of the Volt. Earlier this year GM said they didn’t expect any dealers to overcharge for the vehicle and that it would do its best to discourage dealers from doing this. Obviously this is not what GM needs when the Volt finally hits the market.

SAAB DEVELOPING EVs

Saab says it’s ready to test electric vehicles starting next year. According to Edmunds.com Inside Line, the company will test pure-electric vehicles based on the 9-3 at different locations around the globe in the first-quarter of next year. Saab wouldn’t say when they plan to release the EV to market.

REFRESHED 9-3 ON THE WAY

In other Saab news, the company will launch a refreshed 9-3 at the end of the year. Saab United reports that the front fascia is inspired by the new 9-5, there will be slight changes to the interior and that new gas engines will be available.

FIAT DENIES CHINESE FERRARIS

Last week we reported that Fiat’s Chinese partner, Guangzhou Auto, was considering building Ferraris in China, but according to Gasgoo, Fiat is now denying these rumors (thank goodness).  It says that Ferraris won’t be made in China or anywhere else outside of Maranello.

ESCALADE TOPS MOST-STOLEN LIST

Finally, one list that GM continues to top – for the tenth year in a row in fact – is America’s Most-Stolen Car.  Its Cadillac Escalade, according to the Highway Loss Data Institute, continues as the number-one “steal” for the country’s most discriminating thieves.  In fact, Detroit Metal dominates the list with Ford’s F250 second and the Dodge Charger – Hemi-equipped of course – finishing fourth.  Meanwhile, if you want to own one of the least-stolen cars in the country, the Institute says you’re looking for something like the Toyota Prius.  Ugh…I’ll take my chances on the mean streets, thank you very much.

Coming up after the break I’ll have some thoughts on how the new the Ford Explorer was saved from the scrap heap.

EXPLORER NAMEPLATE A SURVIVOR

Ford took the wraps off its all-new 2011 Explorer last week and it’s easy to see why they’re excited about it. The new Explorer is much better in every way, a technically sophisticated and dramatically more efficient vehicle with light-years better driving dynamics thrown-in for good measure.

But saying all of that, it’s a vehicle that almost didn’t see the light of day.

The go or no-go decision on the Explorer was still being bandied about internally at Ford more than three years ago. In those dark days, when the Detroit Three were heading toward oblivion, it was not unexpected that some within Ford would be vehemently against the idea of doing a new Explorer. After all, the letters S-U-V had become the “Three Letters of Doom” and the bane of Detroit’s existence as consumers began to abandon the segment in droves. And the political rhetoric generated by the virulent anti-car, anti-Detroit intelligentsia was reaching a crescendo.

Fortunately for Ford, cooler heads prevailed, the ones that realized that the scurrilous campaign against Detroit and everything it stood for was misguided, inaccurate and most important not reflective of the rest of the country. Much to the Detroit haters chagrin, real people needed and still need all kinds of different vehicles for a wildly diverse set of needs.

So when you look at the new Explorer, look beyond the inherent goodness of an exceptional product and take a moment to realize what the vehicle means to Ford and the rest of the country.

The new Explorer represents a rejuvenated car company bristling with talent and expertise, one with an unwavering conviction in its mission and totally focused on delivering great product, which is, after all, the very lifeblood of this business.

And for the rest of the country it means that as long as there are car companies out there willing to be responsive to the consumer and to the customers’ needs and wants instead of giving in to the hysterical bleating from the political factions and their heavily-warped agendas that would have us sentenced to becoming Rickshaw Nation overnight, then there will be vehicles out there that will fit your needs, even if they have the “Three Letters of Doom attached to them.

And that’s the High-Octane Truth.  Again, I’m Peter De Lorenzo.  Check out this column, and many, many more on my website, AutoExtremist.com.  Anyway, thanks for watching and we’ll see you back here tomorrow.

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This is Autoline Daily for August 2nd, 2010. And now, the news.

CAR SALES SLOW DOWN

Is the global economy starting to slow down? Maybe. According to Ward’s, global new-vehicle sales were up 27 percent in the first quarter, but growth in the second-quarter was only 14 percent. Trend lines indicate that by the end of the year, monthly sales figures will be even with 2009. Global vehicle sales for the first-half of the year totaled 37 million units compared with 31 million for the same period in 2009. And that would suggest the second-half will be real slow.

U.S. JULY SALES STRONG

But even though sales are starting to slow down around the world, it looks like they’re improving in the American market. Bloomberg reports that July will probably be the best month of the year so far. It says the market may hit an annualized rate of 11.9 million. Still weak, but better than the month before.

RETAIL DEMAND PICKS UP

Meanwhile, Ford says that retail demand is picking up in the American market. Much of the increase for the Detroit Three this year was fueled by an increase in fleet sales, but now it looks like more retail customers are coming back into the market. Ward’s reports that Ford is looking for July sales to increase over a year ago, despite the fact that the cash-for-clunkers program started in late July of last year.

HONDA PRODUCES MORE IN U.S. THAN JAPAN

And maybe that helps explain this next report. For the first-time ever, Honda produced more vehicles in the U.S. than in Japan. Not by much, only 260 cars, but it is a milestone.

HONDA RAISES PROFIT FORECAST

And Honda also increased its full-year profit forecast. According to the Detroit News, the company posted a $3.2 billion net profit in the first quarter, thanks to increasing car sales and strong sales of motorcycles in emerging markets. Honda raised its full-year operating profit estimate to nearly $5 billion.

IMPORT SALES BOOM IN CHINA

Apparently the U.S. isn’t the only market where import brands are popular. So is China. According to Gasgoo, even though the auto market is starting to slow in China, sales of imported cars are red hot, increasing nearly 115 percent in May. Imported vehicles with engines smaller than 3.0-liters are the most popular models.

HEAT SHUTS DOWN PRODUCTION

It’s been a long, hot summer in most of the Northern Hemisphere this year. AvtoVAZ, the Russian automaker, just announced that it is going to shut down car production this week because it’s just so dang hot. Bloomberg reports that temperatures in Togliatti, in southern Russia, are expected to hover in the 45 degree Celsius range. That’s 113 degrees Fahrenheit.

HARLEY LEAVES SIDECAR BUSINESS

Here’s a little factoid I wasn’t aware of. Harley Davidson makes sidecars, well, at least for the time being. According to Autoblog the motorcycle manufacturer has been in the outrigger business since 1914, but it just announced that twenty-eleven will be the final year sidecars are available as a factory option. In a press release it cited a “decline in retail demand” as the reason for their discontinuation. If you’ve got one on your bike no worries though, the company will still cover units under warranty and its dealers will stock replacement parts.

Coming up next, a look at the new Buick Regal.

The 2011 Regal represents a new beginning for Buick. With this car, the company is pushing into a segment it really hasn’t competed in before. Autoline Daily correspondent Craig Cole filed this report.

With Hummer, Saturn and Pontiac out of the way Buick is finally getting the resources it needs to grow.  A prime example of its expansion is the 2011 Regal.

A quick walk around this car is all it takes to understand that it’s a different kind of Buick.  It is definitely NOT your grandparents’ Roadmaster.

GM is going after competitors like the Acura TSX and Audi A4.  That may sound ambitious, but the Regal is built on a solid foundation, the Opel Insignia, 2009 European Car of the Year.

But why did Buick decide to call it Regal?  Were other historical nameplates like Century, Wildcat and Electra not as popular?

All this talk of “sport” and “performance” may sound like marketing doublespeak, but GM is actually backing up these claims.

Sure, the base engine won’t set the world on fire, but at 2.4-liters and 182 horsepower it’s perfect for everyday driving.

The optional powerplant is where things get interesting.  Borrowing a page from the tuner crowd, buyers can step up to a turbocharged four-cylinder engine delivering an ESTIMATED 220 horsepower.  It’s a fun combination, but GM has some even better news for enthusiasts.

It’ll be interesting to see how well the Regal sells, particularly compared to the redesigned Hyundai Sonata, which also offers a stylish body and a turbocharged four-cylinder engine.

Thanks for that report, Craig. Later in the week we’ll take a look at some of the nuts-and-bolts details of the 2011 Buick Regal and learn a little about how the car was developed, so stay tuned.

And that is it for today’s top news in the global automotive industry. Thanks for watching, we’ll see you tomorrow.

This is Autoline Daily for July 30th, 2010. And now, the news.

FERRARI: MADE IN CHINA?!?
And talk about news! In a stunning report coming out of China, Gasgoo says
that the Guangzhou Auto Group, which has a joint venture with Fiat, could
end up making Ferrari's in China. It says Fiat wants to change its image in
China as only making low-end small cars. And part of Guangzhou's joint
venture deal with Fiat allows it to make any vehicle of any brand that Fiat
owns, including Ferrari, as long as there's a need for it. With the way car
sales are booming in China, there could be a need. Now, call me old
fashioned, but I just can't see Ferrari's being built anywhere but in
Maranello, where they've always been built.

BOTTOM LINES LOOK BETTER
More earnings reports are pouring in from car companies all over the world,
and for the most part they look pretty good. Renault made over a billion
dollars for the quarter, easily beating analysts expectations. At Honda, the
news is even better. It posted a record quarterly profit of $2.7 billion.
Mazda is making progress, but it lost money, posting a loss of $23 million
for the quarter. Even so, that's one-tenth the size of the loss it posted a
year ago.

SUPPLIERS ON THE MEND
And some of the good financial news is now starting to spread to the
supplier sector. Dana, the company that makes axles, amongst other things
reported a profit of $9 million for the quarter. And Federal-Mogul surprised
the analysts by posting a $49 million profit. Maybe these aren't big
numbers, but they are a clear sign that the supplier industry is on the
mend.

NISSAN WANTS YOU HEALTHY
Earlier this week Nissan unveiled its "Health & Well-Being" concept which is
designed to increase the comfort inside the vehicle and the automaker found
some creative solutions to do so. According to the Economic Times, air
conditioners will pump breathable vitamin C into the vehicle to help
moisturize the skin and reduce airborne bacteria and mold. The concept also
features heated seats that improve blood circulation which Nissan says can
reduce driver fatigue. It also features seats with leg rests, articulated
backs and three layers of cushion, designed to help your posture. Like your
mother always told you, "Sit up straight and eat your vegetables."

PRESIDENTIAL PROMISES
President Obama will be in Michigan today to visit GM's Hamtramck Plant
which will build the Chevy Volt and then he'll make his way over to
Chrysler's Jefferson North plant which makes the Grand Cherokee. Obama will
be touting all the improvements at the two companies and yesterday he said
the government will recover all the bailout money poured into GM & Chrysler.
Although he is only referring to the $60 billion his administration spent
and not the $25 billion the Bush administration gave to the automakers. The
President also plans to visit a Ford plant in Chicago next week which builds
the Taurus and soon, the new Explorer.

Have you seen the new Volkswagen Jetta yet? When we come back from the break
I'll give you my own personal tour of the car.

Volkswagen made significant changes to the new Jetta. It is the first VW
specifically designed for the North American market I was out on the global
press launch of the vehicle and here are some of my styling impressions that
we shot while I was at that event.

Thanks for that report John. You're more than welcome!

And that's it for today's top news in the global automotive industry. Thanks
for watching, we'll see you next month.

This is Autoline Daily for July 29, 2010. And now, the news!

VOLKSWAGEN QUADRUPLES EARNINGS
More and more automakers are reporting profits, and the numbers are really impressive. Analysts warn that earnings could fall in the second half of the year, but for now a lot of automakers are popping the champagne corks. Volkswagen posted a second quarter net profit of €1.2 billion, which is about $1.6 billion. That’s four times bigger than the profit it reported a year ago. However, Bloomberg reports that two of VW’s brands, Seat and Bentley, both lost money.

NISSAN STUNS THE ANALYSTS
Now we swing over to Japan, where Nissan reported a quarterly net profit of $1.2 billion. That’s nearly double what analysts had expected and was way up from a loss that the company posted a year ago, and puts the company way ahead of its own forecast for the year.

HYUNDAI PILES ON THE PROFITS
And in South Korea, Hyundai’s profit shot up by more than 70%. It too earned a net profit of $1.2 billion, which was slightly better than analysts expected. The company also raised its sales goal for the year, which had been set at nearly 3.5 million vehicles, but it did not reveal what the new sales goal is.

US-KOREA TRADE FRICTIONS
But that sales goal could cause trade problems between the US and Korea. Ron Kirk, the US Trade Representative, said yesterday that it is unacceptable that Korea sells so many cars in the United States, while so few American cars are sold in Korea. Bloomberg reports that last year, Korean automakers sold 750,000 vehicles in the US, while barely 6,000 American cars were sold in South Korea. Of course, Hyundai and Kia manufacture some vehicles in the US, and General Motors imports the Chevrolet Aveo. So it’s not as black and white as it’s sometimes portrayed. The US and Korea, as well as the European Union and Korea, are currently negotiating free trade agreements, and automobiles are playing a central role in those negotiations.

EXPLORER GOES GLOBAL (Subscription required)
And speaking of exports, Ford says the new Explorer will become the most exported vehicle coming out of North America. Ward’s reports that Ford will export the vehicle to 90 different countries, including to Japan, even though there will not be a model with right-hand steering. No word yet on what kind of sales volume all these exports might represent. And by the way, we’ll have the marketing manager of the Explorer, Amy Marentic, on Autoline After Hours tonight.

TOYOTA STEERING FAILURES
Uh-oh here we go again, Toyota’s issued another recall, and it’s a dangerous one. According to the AP, the company is recalling over 400,000 vehicles due to a steering problem. 373,000 Avalons are being recalled because of improper casting on the steering lock bar which can cause cracks to develop. Also nearly 40,000 Lexus LX 470s are being recalled because of a steering shaft problem. Let me tell you, when the steering breaks, you’re in trouble.

HYDRAULIC HYBRIDS
Eaton announced that Ann Arbor, Michigan will use recycling trucks equipped with its hydraulic hybrid system. Four Peterbilt trucks will be equipped with the system, which is expected to improve fuel economy and emissions by 30%. Unlike an electric hybrid system that stores power in a battery, the hydraulic system stores energy as pressurized hydraulic fluid. Every time you put on the brakes, that energy is converted into hydraulic pressure. The fluid is stored in a container until the driver hits the gas pedal which then helps to launch the truck. Not only does the system reduce fuel consumption it also doesn’t wear out the brakes as fast, which helps to save on maintenance costs.

Coming up next, we’ll have the guy who styled the new Kia Sportage take you on a styling tour of his latest creation.

Kia is really changing the looks of its cars, going from amorphous blobs to crisp, well-proportioned vehicles. Massimo Frascella is the designer of the new Kia Sportage. Autoline Daily just caught up with him outside of the hotel in San Francisco where Kia held the launch of the Sportage, and we asked him to give us his own styling tour of the vehicle that he styled.

Again, that was Massimo Frascella, the designer of the Kia Sportage.

Hey, don’t forget to tune in to Autoline After Hours tonight with me, the Autoextremist, Peter De Lorenzo, and David Welch from Bloomberg BusinessWeek. Joining us tonight will be Amy Marentic, the marketing manager on the new Ford Explorer. If you’ve got questions for Amy, make sure you get them in.

And that is it for the top news in today’s global auto industry. Thanks for watching, we’ll see you tonight, and tomorrow.

This is Autoline Daily for July 28, 2010. And now, the news!

DOWN, BUT NOT OUT
While automotive analysts have been predicting tough times for European car companies, so far it hasn’t happened. Bloomberg reports that Peugeot just reported earnings for the first half of the year that easily beat everyone’s expectations. The French automaker reported a net profit of €680 million, whereas analysts had expected it to be €420 million. However, it warns that it could lose money in the second half. In Germany, Daimler just boosted its forecast for the operating profit it expects to earn this year to €6 billion, which is nearly $8 billion. So if sales are slowing down in Europe, how come European car companies are still reporting stronger profits? One word people: China. Sales increases in China have easily offset sales declines in Europe and elsewhere.

OH LORD, WON’T YOU BUY ME…
In fact when you’re talking about China, the more expensive the car, the better the news gets. The National reports that luxury cars represent the fastest growing segment in the Chinese market. While overall sales are up roughly 50% so far this year, Audi is up 75%, BMW is up 100%, and Mercedes-Benz is 120%. And the German luxury brands have a choke hold on the Chinese market, easily outselling Cadillac, Lexus, Acura and Infiniti.

EV LEASE WARS
We reported yesterday that the price of Chevrolet Volt would come in at around $40,000, and we were right. It came in at $41,000. But that’s not what you should focus on. GM announced that it will offer 36-month leases for $2,500 down and $350 a month, which puts the car well within reach of the vast majority of new car buyers. Of course that’s exactly what GM had to do to match the lease that Nissan is offering on the Leaf. And Nissan in turn, just announced an eight year warranty on the batteries for the Leaf, which matches the warranty that Chevy is offering on the Volt.

SEQUOIA GETS THE AXE
PickupTrucks.com reports that Toyota plans on killing the Sequoia at the end of its life cycle. Slow sales have plagued the vehicle lately, so far this year fewer than 6,000 have been sold. Also, cutting ties with the Sequoia will help the company reach its CAFE numbers. Even though the Sequoia is getting the axe, the Tundra, which is the platform the Sequoia is based on, will get a refreshed model in 2014. That’s just in time to compete with new models from GM, Nissan and Ford.

SENATE PASSES GAS (BILL)
Billionaire tycoon T. Boone Pickens has done some serious lobbying to promote the use of natural gas and it looks like it’s working. Yesterday, Democrats in the U.S. Senate unveiled a $4.4 billion energy bill, mainly aimed at boosting sales of natural gas powered vehicles. According to the Detroit Free Press, the government will provide rebates between $10,000 and $64,000 for the purchase of a natural gas powered car or heavy truck. The bill will also provide grants for the installation of natural gas pumps. Another portion of the bill, around $400 million, will go towards the development of an electric vehicle infrastructure. It’s interesting to note that this bill started out as an $11 billion proposal to boost EV sales and infrastructure.

JULY SALES LOOK BETTER
Car sales in the American market slowed in June but they now look like they’re picking up again. According to the Detroit Free Press, car sales are on their best pace since last year’s cash-for-clunkers program. Truecar.com, estimates July’s SAAR will be 11.8 million units and JD Power predicts it will be an even better 12.2 million. Both those estimates are the highest since last August, when the SAAR hit 14.9 million due to cash-for-clunkers.

After yesterday’s report on the manufacturing of the new Saab 9-5, the comment section on our website was all abuzz about whether Saab could even survive. Coming up next, we’ll show you what Saab had to say about your comments.

Many viewers posted comments on yesterday’s feature spotlighting Saab’s all-new 9-5 being built right now in Sweden. In fact some of you questioned how the company can survive in an expanding world of premium car competitors. Well, Autoline caught up with Saab’s president and CEO yesterday afternoon and got a chance to ask him what it’s going to take to not only keep this iconic brand alive, but help it recapture whatever it was that made Saab so special back in its hey day some 40 years ago.

That was Jan Ake Jonsson, President and CEO of Saab.

And that covers the most important news in today’s global automotive industry, thanks for watching, we’ll see you tomorrow.

This is Autoline Daily for July 27, 2010. And now the news.

EV STICKER SHOCK
And boy is there a lot of news about electric cars. GM is going to officially announce the price of the Chevrolet Volt today. Bloomberg reports that it’s going to cost about $40,000, which is exactly what GM told us it would cost several years ago. We’ve also learned that GM is going to start selling the Volt in China, along with an electric version of the Chevrolet Sail and a hybrid version of the Buick LaCrosse.

ZOE IS EV BARGAIN
Meanwhile, in Europe, the French newspaper Le Figaro reports that Renault announced the price of its electric car, the Zoe, will cost under €15,000, or just under $20,000. That includes a €5,000 credit. And customers will have to pay €100 a month to rent the battery. Even so, that gives it about the same price as a Renault Clio with a diesel engine.

PORSCHE COMMITS TO EVs
And sticking with the EV news in Europe for the moment, Porsche announced it is definitely going to come out with an all-electric sports car. It is going to build three electric Boxsters to start developing the technology. But it does not say if the Boxster is the EV it will put into production.

PRIUS PRODUCTION DELAYED FOR U.S.
Now we switch from EVs to hybrids. Toyota says it is not going to build any Priuses in the United States until 2016 at the earliest. Reuters reports that the Prius will probably be built in the U.S. when the car gets remodeled. So it sounds like it’s not going to get remodeled for another 6 years. Toyota built a new assembly plant in Mississippi ostensibly to make the Prius. Instead, it will make Corollas, which is where Toyota moved production of that car after it closed the NUMMI plant in California. Toyota says it wants the U.S. car market to recover before it produces the Prius in the U.S. But sales of the Prius are up 18% this year. Sounds to me like Toyota is hedging its bet on hybrids, what with all these electric cars about to hit the market.

HYUNDAI AVANTE (ELANTRA)
Hyundai revealed the new Avante in South Korea, which is known as the Elantra in the U.S. market. The best selling model in the company’s line-up worldwide will be powered by a 1.6L four cylinder with direct injection and mated to a six-speed automatic, developed completely in-house by Hyundai. Fuel economy is about 39 MPG, or 6.1 l/100km. And there are features available that you wouldn’t expect in a vehicle this size like a parallel park assist system, heated rear seats and HID headlamps. The Avante goes on sale next week in South Korea.

CHRYSLER SWITCHES TO SIEMENS PLM
Siemens announced that Chrysler will use its PLM Software for product design and development for its vehicles. Chrysler has been using part of its software since 2008 and now will use a more comprehensive version, known as NX, to develop vehicles. Prior to using Siemens PLM Software, which is what Fiat uses, Chrysler used Catia software.

FORD TO EXPAND CHINA LINE-UP
Ford CEO Alan Mulally revealed that the company plans to sell all of its models in China. According to Gasgoo, Mulally said Ford is working on growing its operations in China in order to bring its vehicles to the country as quickly as possible. This includes the new Explorer, which Mulally said will be in China next year. The current model is already sold in the country.

EXPLORER DROPS A GRAND
And sticking with Explorer news for the moment, the Detroit Free Press reports that the base price will start just under $29,000, about a $1,000 less than the previous Explorer.

Coming up next, we’ll take a look at how Saab is manufacturing the new car that will make or break the company.

The new Saab 9-5 is a critical car for the company. If it doesn’t do well, there will be no second chance. Isaac Bouchard files this story from Sweden about how the car will be manufactured.

Thanks for that report Isaac.

And that is the top news in today’s global automotive industry. Please join us tomorrow for the next update on Autoline Daily.