Autoline fans Bajabusta and Miradart have posted a “nifty” little video on YouTube detailing the development of the Vega – Chevy’s small car from the 1970s. This feature is from an old TV show called Car & Track. It shows in detail how GM designed, tested and manufactured the Vega. It’s amazing to see stuff like this because it’s a reminder of just how far we’ve come in the last 40 years.

Runtime 7:45

The numbers are in and new-vehicle sales in the U.S. last month aren’t as bad as everyone is reporting.  Another distillery in the UK has figured out how to make fuel from potato leftovers.  Ferrari is having some “external combustion” problems with its 458 Italia.  All that and more, plus a blast from the past with a look at the Chevy Vega.

»Subscribe to Podcast | | | | Listen on Phone

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

AUGUST SALES ROUNDUP (subscription required)
And the news we want to look at right now is all about August sales in the American market. While most of the media are focusing on how much sales collapsed from a year ago, I keep saying that last year was such an aberration in the market that it’s not a good benchmark for figuring out how the industry is doing. The cash-for-clunkers program really skews the numbers.

So let’s look at month-over-month sales, not year-over-year. According to Ward’s, sales came in just under a million units, which is pretty disappointing. However, they were actually up in August compared to July. On a daily-selling-rate basis they were up 2.6 percent. The market slightly favored passenger cars, which were up 2.9 percent, while trucks were up 2.3 percent.

Amongst the car companies, Mercedes-Benz had a terrific month, with sales up nearly 17 percent. Amazingly Chrysler also had a terrific month, with sales up more than 15 percent. In fact, Chrysler captured 10 percent of the US market, the second-best month that it had all year. Tata also did quite well, with sales up 12 percent. Wait a minute you say, whaddya mean Tata? Tata doesn’t sell vehicles in the American market. Oh yes it does, as owner of Jaguar and Land Rover, which did quite well in August. Honda was up 4 percent and Hyundai-Kia was up more than 3 percent. Some separate brands did better, but these are the top car-groups for the month.

On the pickup-side, the Ford F-series came out on top of the list, but sales were down from the 50,000 units a month it had been selling. Sales of the Toyota Tundra are also way down from where they were before.

But on the car-side Toyota had a terrific month with the Camry, selling just over 30,000 units, which is really impressive. And check out the sales numbers for the Hyundai Sonata which came awfully close of sailing past the Honda Accord and Civic. As soon as Hyundai gets additional manufacturing capacity for the Sonata, it could start giving the Camry a run for the top spot.

Finally, in the crossover segment, the Ford Escape topped the list once again, but it barely beat out the Toyota RAV4. And the Honda CR-V was right on the their heels. Even though the Chevrolet Equinox and Nissan Rogue were farther down the list, both models are selling relatively well.

All in all, it was not a great sales month, but it’s far better than most of the media are portraying it.

OK, enough of the sales data, coming up next, today’s top news.  Don’t go anywhere; we’ll be back before you know it.

“WASTE OF PERFECTLY GOOD VODKA” (subscription required)
Maybe alcohol and driving can go together.  Last week we reported that distillers in Scotland have found a way to turn leftovers from the whiskey-making process into fuel.  Keeping this theme alive, Ward’s now reports that Chase Vodka in the UK has found a way to convert waste potatoes into a high-grade biofuel – biobutanol to be exact.    The process involves reusing “pot ale,” the liquid leftover after distilling.  The company claims its fuel can deliver 30 percent more output than ethanol and can be burned in any gasoline vehicle.  No expensive fuel-system modifications are required.  Biobutanol is also compatible with America’s gasoline distribution system.  Fuel from liquor leftovers?  I’ll drink to that!

PRODUCT DEVELOPMENT, ‘70S STYLE
Autoblog has uncovered a “nifty” little video on YouTube detailing the development of the Vega – Chevy’s small car from the 1970s.  This feature is from an old TV show called Car & Track.  It shows in detail how GM designed, tested and manufactured the Vega.

It’s amazing to see stuff like this because it’s a reminder of just how far we’ve come in the last 40 years.  Hit the link in today’s show notes posted on our website – AutolineDetroit.tv – to watch the rest of this video.  And thank you to bajabusta and MIRADART for posting this on YouTube.

EXTERNAL-COMBUSTION FERRARIS
The Tata Nano isn’t the only car that can spontaneously burst into flames. According to the AP, Ferrari is recalling over 1,200 458 Italias worldwide because four cases of the car catching on fire have been reported in California, China, France and Switzerland. An investigation shows that the problem may be with adhesives and heat shields. Ferrari says if it’s really hot outside and you’re driving the car hard it could catch on fire.

ARMORED-AIR JACKETS
While cars feature numerous safety technologies to help protect the driver, there isn’t a whole lot you can do for motorcyclists. But one company has a solution to help protect bikers who get in an accident. Armored-Air Jackets is offering jackets and vests with integrated airbags, a CO2 cartridge and a ripcord. You attach the ripcord to the bike and if you get thrown from the bike it will automatically trigger the airbag to inflate around the spine, chest and neck. It only takes up to a half a second to inflate the jacket. They can be reused but must be inspected first and the only thing that needs to be replaced is the CO2 cartridge. The jacket costs nearly $600 while the vest retails for $250.

Don’t forget to join us tonight on Autoline After Hours when our guest will be Lonnie Miller from RL Polk, the company that gathers all the data on what kinds of cars people are really buying. One of the topics we’ll get into tonight: how much do the Big Three really depend on fleet sales? Is it as bad as it sounds? Join me, as well as the Autoextremist Peter De Lorenzo, and WDIV ace reporter Rod Meloni for the best discussion in the industry.

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

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

Runtime 8:18

Hyundai is moving Santa Fe production out of its assembly plant in Alabama to Kia’s plant in Georgia in order to build more Sonatas. It’s been rumored that Maybach will be discontinued, but a report says the brand will offer five different models. The CNG versions of the Chevy Express and GMC Savana will tack another $16,000 on top of the base price. All that and more, plus a look at Ford’s new cop cars.

»Subscribe to Podcast | | | | Listen on Phone

This is Autoline Daily for the first day of September, 2010.

HYUNDAI INCREASES SONATA PRODUCTION
Hyundai says that the Sonata is the most-shopped vehicle in the American market and it could sell more if it could make more. So now it’s moving the Santa Fe CUV out of its assembly plant in Alabama and into Kia’s plant in Georgia. The Associated Press reports this could free-up Hyundai to make 100,000 more Sonatas a year in Alabama. Toyota Camry and Honda Accord: you better watch out, they’re coming after you!

KIA OPTIMA
And it’s not just with the Sonata. Yesterday I wasn’t here for the show because I was test driving the new Kia Optima, which shares the same platform and powertrain as the Sonata. But wow, what a good looking car! Peter Schreyer, the former Audi designer who now heads up design at Kia keeps coming out with better and better-looking vehicles. The Optima actually looks more sophisticated than the Sonata, at least to my eye. It’s definitely a sportier design. Inside, the center console is canted towards the driver to create a true cockpit-feel giving it more of a performance flair. It’ll go on sale in the American market at the end of the year, shortly followed by a turbo, then a hybrid model. We’ll have more on the Optima in the coming days.

HYUNDAI-KIA PLANS BIG GROWTH
In related news, Bloomberg reports that Hyundai-Kia are shooting for a 15-percent share of the global automotive industry by 2020. If they can hit that, the Korean automaker would likely be the third-largest car company in the world, behind Toyota and Volkswagen. Sounds a little far-fetched, but I wouldn’t bet against them.

MAYBACH GROWS LINE-UP
Maybach has been a disaster for Daimler. Sales have fallen to only 300 units per year, which means they’re taking a financial bath selling these super expensive cars. It’s been rumored that the brand will be discontinued, but a report from Automobile says that Maybach will allegedly offer five different models including a long-wheelbase convertible and possibly even a hybrid. I’ve got to hand it to the Germans, they NEVER give up, not even in the face of disaster. Just look at smart, which is now a decade old disaster. It should have been Oldsmobiled years ago.

BERNHARD TAKES OVER MERCEDES CARS
In related news, Bloomberg reports that Wolfgang Bernhard has taken control of the Mercedes-Benz car division. Its former head, Rainer Schmückle, has left the automaker by “mutual agreement.” Et tu, Brute?

NEW MALIBU TO OFFER ONLY 4-CYLINDER
Hey, back to Hyundai, looks like it started another trend. According to a post on GMInsideNews.com, the next-generation Chevrolet Malibu will ONLY offer four-cylinder engines, just like the Sonata. Of course, this is an obvious move and one that the rest of the industry has to follow, and it all has to do with CAFE standards.

CNG STICKER SHOCK
And now, back to GM. It announced pricing for the CNG option in its full-size vans and the number is a bit surprising. The CNG-versions of Chevy Express and GMC Savana will tack another $16,000 on top of the base price. The vehicles go on sale this fall. Base price: $26,000. CNG price: $42,000. Saving the environment doesn’t come cheap.

CHEVY WO LAN DA
And in other GM news, the company unveiled the Volt in China yesterday, but with a Chinese name. Gasgoo reports the Chinese Volt will be known as the Wo Lan Da. If you want to be successful selling cars in China you have to give them Chinese names. But that’s not the biggest problem facing the Volt. Imported plug-in and electric vehicles may not get subsidies from the Chinese government, so GM may have to heavily subsidize the car.

CHINA CAR SALES SURGE
And speaking of China, for the last few months we’ve been reporting that car sales are slowing down in the country but that wasn’t the case in August. According to the AP, car sales shot up 56 percent last month to around 1.2 million units.

After the break, keep an eye on your rear-view mirror! Ford reveals its future cop-car lineup.

FORD POLICE INTERCEPTOR
The Crown Victoria dominates the police-vehicle market, controlling something like 70 percent of the segment. But strong competition from Dodge, Chevrolet and Carbon Motors is forcing Ford to step-up its game. Autoline Daily Correspondent Craig Cole was on the ground at a press conference last week and here’s the latest from Dearborn.

The last Crown Vic is scheduled to roll off the line late next year and the company’s redesigned Taurus is set to take over police duty.  Ford claims it’s ready for anything departments can throw at it, and it should be.  It’s heavily modified compared to what you can pick-up from your local dealer.

One of the other upgrades law enforcement should appreciate is a modified electrical system so it’s easier for departments to add aftermarket equipment like lights and sirens.

The standard engine is a 3.5-liter TiVCT V-6 delivering 280 horsepower – 30 more than the Vickie’s V-8 with 20 percent better fuel economy.  An EcoBoost six is also available, as is all-wheel drive.

Demonstrating the new car’s superiority, Ford took us for back-to-back test-rides around its Dearborn track to compare the handling.  While it’s hard to tell from the rear seat how a car drives, the Taurus had noticeably less body roll and felt a lot more planted.  But the Taurus is only half of Ford’s Police-Interceptor story.

Last week the company revealed a new police utility-vehicle to members of the media.  No, your eyes aren’t playing tricks on you, that’s an industrial-grade version of the brand-new 2011 Explorer.  For the first time in a long time law enforcement has dibs on the latest and greatest from Ford.  That means they get SYNC, soft materials on the dashboard and doors plus all the ruggedness of a Crown Vic, at least according to engineers.

Just like the Taurus, the Explorer Police Interceptor is purpose-built for law enforcement, sharing the same platform and countless parts ranging from brake rotors and wheels to engine mounts and powertrains.

It will be interesting to see if Ford can maintain its dominance of the police market.  Will departments flock to the new front-drive based Taurus and Explorer models like they had to the Crown Victoria, or will they lean towards traditional rear-wheel-drive offerings like the Dodge Charger or the upcoming Chevy Caprice?  Either way we’ll have to wait until late next year to find out.

Thanks for that report Craig.

And that brings us to the end of today’s report on the latest news in the global automotive industry. Thanks for watching, we’ll see you tomorrow.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

German supplier Continental makes all kinds of different automotive components like sensors and actuators. Many of these parts are necessary, but fairly unglamorous. The average car buyer never sees any of them — but Conti also makes things that drivers interact with everyday, like switches and display screens. One new technology under development aims to give car designers greater freedom over what they can do with vehicle interiors.

Runtime 7:12

Chrysler reveals more of its plans for Fiat in the U.S., and some important numbers like sales and pricing leak out.  Opel is planning to expand globally, entering Australia and South-American markets.  The U.S. EPA is aiming to make it easier for consumers to compare fuel-economy ratings between different vehicles by introducing a new-type of window sticker.  All that and more, plus we take a look at the recently redesigned Saab 9-5 . . . from a designer’s perspective.

»Subscribe to Podcast | | | | Listen on Phone

Rod Meloni here from WDIV Channel-4 News, Detroit.  Welcome to Autoline Daily for Tuesday, the 31^st of August, 2010 – the last day of the month.  Across town and around the world here’s the latest news from the automotive beat.

CHRYSLER REVEALS FIAT PLANS
Chrysler revealed more details to its dealers about its plans to bring Fiat to the U.S. According to the Detroit News the company will choose 165 locations to sell the Fiat 500 at the end of the year. Dealers have three weeks to submit a proposal for a franchise.  Also, they learned that they won’t have to build separate facilities to sell the 500 but eventually they will need separate showrooms for Fiat. Pricing for the 500 won’t be announced until the LA Auto Show in November, but the Detroit Free Press reports that a dealer says the car will be priced between $16,000 and $19,000. Also the AFP reports that the company expects to sell 50,000 500s next year.

OPEL PLANS GLOBAL EXPANSION
According to a report from Deutsche Welle that we found on Autoblog, Opel has big plans to grow around the world.  The German brand is looking to expand into at least four, new global markets. In the near-term, it will enter South America and Australia, as well as other Asian markets after that.  The company also wants to grow in China, reinventing itself as a premium brand with European design . . . a strategy not unlike Audi.  Last year Opel only sold some 4,000 cars there compared to Audi’s 130,000, so there’s a lot of room for sales to improve in China.

NEW WINDOW STICKERS
The U.S. EPA and NHTSA are aiming to make it easier for consumers to compare fuel-economy ratings between different vehicles.  The two government agencies are collaborating to design a new type of window sticker that clearly shows things like fuel economy and fuel costs, as well as emissions.  So far they’ve revealed two different designs and are looking for public input.  Part of the idea is to introduce a letter-grading system to the auto industry – something students are already very familiar with.  For example, depending on how efficient a vehicle is, a pure-electric car could get an “A+,” a plug-in hybrid an “A, ” a flex-fuel vehicle a “B” and so-on down the line.  New EPA labels could go into effect in 2012.

MAZDA’S NEXT-GEN ENGINES (subscription required)
While a number of automakers are gearing up to release electric vehicles over the next few years, one automaker is heading the other direction. According to Ward’s, Mazda is bucking the EV trend – at least for now – and is getting ready to release new, more-efficient internal-combustion engines. The company will have a new family of direct-injection, four-cylinder gas engines and a new diesel that was developed to sell around the globe. In fact, Mazda expects 75 percent of these engines will be equipped in its vehicles over the next five years. The engines will be built in Japan and all of them, including the diesel, can be produced on the same line. The first gas variant will make its way to the U.S. next year and the diesel will debut in North America in 2013.

FOUR-CYLINDER ENGINE DEMAND DROPS (subscription required)
And speaking of engines…  demand for four-cylinders in North America is starting to slide. According to Ward’s, about 62 percent of 2010 models are equipped with four-cylinder engines compared with 65 percent last year. Also more V-8s are being installed in cars this year, about 6 percent compared with about 5 percent in 2009. While car buyers are upgrading their engines, truck buyers are downsizing. V-8s are being equipped in about 37 percent of trucks this year compared with about 40 percent last year.

NISSAN, HYUNDAI BENEFIT FROM TOYOTA
The Detroit Three aren’t the only automakers benefitting from Toyota’s problems.  According to USA Today, Nissan has been gaining ground in America this year with 10-straight months of sales increases.  Not surprisingly, Hyundai is making headway, too.  Among Asian automakers in the U.S. Toyota still holds onto the top-spot and Honda’s a strong second, but Nissan and Hyundai’s growth trajectories put them on a path to overtake Honda.  If one thing is clear, the old hierarchy of brands is changing.

Coming up after the break, a look at the brand-new Saab 9⁵ . . . from a designer’s perspective.

SAAB 9⁵ DESIGN
Dutch businessman Victor Muller pulled Saab back from the brink of death after years of neglect at the hand of GM.  Now the company has to start the long, arduous process of rebuilding its product lineup.  One vehicle that’s well-past its prime is the brand’s midsize sedan, the 9⁵.  Thankfully it’s one of the first cars to receive a ground-up redesign, and here’s a look at its design.

Strong design cues and a sense of identity will probably go a long way to help Saab recover.  We’ll have to wait and see if the new 9⁵ can do its part to help revive this struggling brand.

And that’s it for Autoline Daily this month.  Again, I’m Rod Meloni, Business Editor at WDIV Channel-4 News, Detroit.  Thanks for watching John should be back tomorrow.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

Ford recently took the wraps off its all-new 2011 Explorer, 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.

Runtime 8:19

Even though global sales hit just over 43 million units through July compared to 2009, they were down compared to June and analysts expect sales to continue to slide. We take a look at some vehicles that aren’t selling well because of their unusual designs. Citroën released details about its new vehicle, the DS4, ahead of its debut at the Paris Motor Show. All that and more, plus John shares his thoughts on who he thinks would be the perfect person to run GM.

»Subscribe to Podcast | | | | Listen on Phone

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

GLOBAL CAR-SALES SLOW DOWN (subscription required)
Uh-oh. Car sales around the globe are starting to slow down. According to Ward’s, even though global sales hit just over 43 million units through July compared to a year ago, they were down compared to this June and analysts expect sales to continue their downward slope. In fact, if things keep going like they’re going, by October there could be no sales growth compared to 2009. And while Asia shows the most growth, sales have started to slow down there, too.

WEAK AUGUST SALES EXPECTED (subscription required)
And in related news, the AP reports that analysts expect weak August sales in the American market compared to 2009 because the cash-for-clunkers program inflated sales last year.

WEIRD STYLING DOESN’T SELL (subscription required)
Speaking of sales, does styling sell cars? You bet it does. And when designers don’t get it right, or when they come up with something that’s just a little too out there for the public, it’s hard to get people to buy it. Ward’s points out that so far this year, Honda has barely sold more than 15,000 of the controversial Crosstour. Did I say controversial? I meant to say ugly. The Acura ZDX, with that goofy grille, is doing even worse. They’ve sold fewer than 2,000 all year long. What was Acura thinking when it came up with that goofy, Jack-o-lantern grin that it’s slapping on the front-end of all its cars? Another new car with controversial styling that’s dead in the water? The Lincoln MKT. They’ve sold fewer than 5,000 this year. I should point out there is nothing wrong with the way these cars drive. It’s just about the way they look.

BMW DEALERS INCREASE REPAIR WORK (subscription required)
If you own a BMW and take it to the dealer, they are going to find something wrong with it, I promise you. That’s because BMW is getting its dealers to buy a diagnostic computer called MPi-EDGE/World Class Inspections. Ward’s reports that it does a more thorough inspection of a car and typically finds something that adds about $125 to a customer’s repair bill. With car sales down, dealers are surviving with their repair and service work, and a tool like this is going to make them more profitable.

CITROËN DS4
Citroën released details about its new vehicle, the DS4, ahead of its debut at the Paris Motor Show. Even though it’s a four-door vehicle it has a coupe-like design thanks to hidden rear door-handles that are integrated into the body. But that’s not the only unique feature. It comes with a panoramic windshield, the ability to change the color of the instrument panel, and it features on-board ambient polyphonic sounds for alerts and reminders, allowing the driver to choose from four different sounds which include Classical, Crystal Symphony, Jungle Fantasy and Urban Rythmik. The DS4 comes with five engines, two diesel and three gas.  It goes on sale next year.

CHINA WARNS JAPAN OVER WORKERS PAY
Things are heating up in East-Asia again, and no, Kim Jong Il isn’t the one ruffling feathers this time. According to the Wall Street Journal, Chinese Premier Wen Jiabao warned Japan that its automakers operating in China should pay workers more. This is the latest salvo in a spat between the two countries over business and manufacturing issues. It comes on the heels of those strikes a few months back that crippled Honda’s and Toyota’s production. The Premier’s comments came after a call from Japan’s foreign minister to improve the business conditions in China for Japanese companies. I’ve got a feeling this story is only just getting going.

EYELASHES FOR CARS?
Just when you think you’ve seen it all. If fart-can mufflers or testicle-shaped trailer-hitch covers aren’t tacky enough, a company called Carlashes has come up with an equally ridiculous yet somewhat less obnoxious automotive add-on. As their name suggests, they’ve introduced eyelashes . . . eyelashes that stick-on to a vehicle’s headlamps. If you’ve always wanted to live Cars the movie, now you can . . . I suppose. Autoblog reports that a set of these oversized lashes can be yours for just $24.95. For high-rollers you can get Crystal Eyeliner for another $19.95. Apparently other people are just as confused by this as I am because the company’s website has crashed from too much traffic.

Coming up next, GM needs someone in charge of the corporation who really knows what the car business is all about. I’ll tell you who I think they need to put in charge. Back right after this.

WHO SHOULD LEAD GM?
There are a lot of good things going on at General Motors these days. It’s solidly profitable, it’s holding onto market share, it has competitive products and superb technical capabilities. Even so, there are troubling signs at General Motors.

This is not a company that turned itself around. It is competitive only because the Obama Administration waived a magic wand, better known as a 363 bankruptcy, and made its legacy costs disappear overnight. The current board of directors can take little credit for the company’s impressive resurgence. You could put my dog in charge of that corporation right now and it would still be profitable.

So now it all falls to Daniel Akerson, an investment banker who spent most of his career in the telecommunications industry. Can he possibly be an effective CEO for GM?

Former GM vice chairman Bob Lutz who wrote that Akerson could be effective, but that he will “. . . need to temper his preconceived notions with a willingness to listen to those who have transformed GM from a product and marketing standpoint.” Doesn’t exactly sound like a ringing endorsement, does it?

While Wall Street believes GM needs the fresh perspective of an outsider, I beg to differ. GM needs someone who knows design, engineering, manufacturing and marketing. Putting someone in charge of the company who has no experience in this is only inviting trouble. Akerson even questioned why the company needed to invest in a competitive four-cylinder engine.

Can you imagine the German or Japanese car companies selecting a CEO from the telecommunications industry? They would never do anything like that.

GM desperately needs a well-seasoned CEO who thoroughly understands the global automotive industry. So my advice to the board is bring back Fritz Henderson. He knows the company inside-out and backwards, knows the global automotive business and had an impressive track-record until he was unceremoniously dumped by the company. Don’t blame Fritz for the morass GM was mired in. That happened well before his watch.

So why go on a massive headhunting search to find someone who will take months to get up to speed? You could drop Fritz in there this afternoon and he would hit the ground running.

Hey, don’t forget to join us tonight for Open Line, the best automotive call-in show on the internet. To get in on the action dial (218) 936-6581 and enter the PIN 13942. The doors open at 8:00 P.M. Eastern Time and the party goes until whenever you’re done. Stop in for five minutes or stay all night – either way, it’s a lot of fun.

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

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

If you weren’t a part of Monday’s great “Open Line” discussion on anything and everything automotive, Michelle Naranjo of MissMotorMouth.com has a taste of what you missed! And, don’t forget to check out the next discussion right here at 8PM ET / 5PM PT on August 30, 2010. Phone: 1-218-936-6581 and PIN: 13942

Last week’s Open Line show took a turn for the “even more interesting” than usual! As the callers suggested potential cars for one of the regulars, the discussion took a moved toward the actual state of car buying needs in North America and how regional variations could dictate which models are sold in certain areas. Public transportation, or lack thereof, came in as a huge determining factor, and it was probably the first time that hybrids and EVs were discussed on the show in a positive and considerate light.

Of course, some of the typical discussions also came up: why is the Fiesta not selling as well as expected? What are the highs and lows of buying vintage cars? Why do some people hoard cars? How do the sneak peaks of the new Charger look? When will we really see Fiat in dealerships? How much of the new Saab 9-2 was Spyker design? How is GM to blame for the Volvo XC90s with faulty transmissions in ongoing class action lawsuits?

One of our favorite callers, Jonathan Brown, reported on the CTS-V Coupe event that he attended and he explained why he wouldn’t trade his Corvette or his CTS for the new Coupe.

It was a lively evening of discussion that went into the wee hours, and, as usual, my sidekick Miradart and I both appreciate everyone who participated and are looking forward to this week’s show! Join us right here!

~Michelle Naranjo, MissMotorMouth.com

Open Line for August 30, 2010:
Phone – 1-218-936-6581
PIN – 13942

Thanks to our partners: GMInsideNews.com, AllPar.com and BlueOvalNews.com

Download MP3

(Archived video and chat after the jump below)

This week we invite Joe Serra on the AAH stage to talk dealerships. As a dealer principal, Joe has seen a lot in the past couple of years, and we’ll be asking him how business is and what kinds of cars are moving out of the lots these days. As usual, we’ll review some of the most interesting news of the week including the possibility of VW buying Alfa Romeo. Also, Chris Perry, formerly of Hyundai, is tapped to run Chevrolet marketing, and speaking of Hyundai, John recently got some seat time in the new Equus, so we’ll see what he has to say about that. John McElroy’s in studio with Peter De Lorenzo, the Autoextremist, and David Welch from Bloomberg BusinessWeek.

Subscribe to the free podcast version of Autoline After Hours:

Thanks to our partners MissMotorMouth.com and WardsAuto.com for embedding AAH!


Pop-out Chat Window

Runtime 7:08

Automakers are trying to stall efforts to allow the ethanol blend rate to rise to 15 percent. Afghan troops find that their biggest enemies are their own driving skills. Chevrolet pulls the covers off the production-version of the Chevy Orlando. All that and more, plus Ford’s Lewis Booth talks about the lessons the company has learned while climbing its way back toward the top.

»Subscribe to Podcast | | | | Listen on Phone

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

HYUNDAI BIGGER IN CHINA THAN KOREA
In a sign of how significantly the Chinese market has become, the Wall Street Journal reports that Hyundai is now selling more cars in China than it does in its home market of South Korea. But Hyundai is still trying to overcome public perception in China that it makes cheap, low quality cars. In a move that will sound familiar to customers outside of China, Hyundai is relying on new styling and a five-year, 100,000-mile warranty to help change those perceptions.

CHEVY ORLANDO SET FOR EUROPE
In yet another preview of what’s coming up at the Paris Auto Show in a few more weeks, Chevrolet released a photo of the production-version of the upcoming Chevy Orlando. The seven-passenger multi-purpose vehicle is built-off the same platform as the Chevy Cruze and shares much of the same mechanicals. It is the first of seven more vehicles that Chevrolet will introduce in the European market over the next year and a half.

EPA TO DECIDE ON E-15 BLEND RATE (subscription required)
The EPA is getting very close to announcing whether it will allow the ethanol-blend rate in gasoline in the United States to rise to 15 percent. Today, the maximum allowed is 10 percent. In a significant move, Ward’s reports that the Alliance of Automobile Manufacturers is trying to slow-down the effort. It, and other groups, want more testing to see if E15 is safe. Here’s my Autoline Insight. I believe automakers are worried that if the blend rate is raised they’ll lose all their CAFE credits for flex-fuel vehicles than can run on E85. They don’t need more testing to see if E15 is safe. They already sell cars in Brazil that run on E22 and have been doing so for years.

IIHS SAYS SUI IS DISTRACTING
Here’s an astonishing bit of news. According to the Los Angeles Times, the Insurance Institute for Highway Safety said that drivers talking on the phone and Toyota’s unintended acceleration recalls are distracting people from more important safety issues. HUH?! One of the nation’s leading safety-advocacy groups is saying that recalls and distracted driving aren’t top concerns? This is hard to believe! The article quotes Adrian Lund, president of the IIHS as saying that Toyota’s recalls and drivers’ cell-phone use “diverts attention from initiatives that have far greater potential to save lives.” Some of those “initiatives” the organization is advocating includes restricting the speed of commercial trucks, stepping-up law enforcement – including red-light cameras – and lowering overall speed limits. The IIHS claims these changes would have a bigger positive impact on traffic safety than congressional hearings or recalls.

AFGHAN ARMY NEEDS DRIVING LESSONS
In somewhat-related news, the LA Times reports that unsafe drivers in Afghanistan are taking a toll on America’s efforts to fight the Taliban. Here’s a number for you . . . more than half of all Afghan army injuries are from vehicular crashes! Half! The problem has to do with a lack of resources. More than 80 percent of the recruits are illiterate and most haven’t driven anything more complicated than a horse-drawn cart. Piloting a Humvee is challenging for trained troops let alone someone that can’t even read. The U.S. military knows this is an issue and it’s implemented driver-training classes for Afghan soldiers.

BRABUS BENZ FOR APPLE FANATICS
Are you an Apple fanatic? No, not the fruit, the company. Do you camp-out in front of your favorite store for days just to get the latest gadget? If so, we’ve got the perfect car for you! According to Autoblog, German aftermarket tuner Brabus has kitted-out an S-Class Mercedes with everything your Steve Jobs-loving heart desires. Beyond the usual luxury amenities this thing has two rear-mounted display screens, a 64 gigabyte iPod Touch, a larger headliner-mounted screen and two iPads, both of which are tied-into the car’s COMMAND system. That’s a lot of technology crammed into the backseat, but don’t think that Brabus has forgotten about the driver. This Benz is powered by a modified 6.3-liter, 750 horsepower V-12 engine. That should be more than enough to keep the driver entertained, as long as they’re not distracted by all those screens.

As part of its “One Ford” strategy, the Ford Motor Company got rid of all the other car companies it bought. So did the company learn anything from this effort? We’ll be talking to one of the top executives in the company, right after this.

Lewis Booth is the Chief Financial Officer of Ford, effectively the number three executive in the company after Chairman Bill Ford and CEO Alan Mulally. Lewis Booth is my guest this weekend on Autoline Detroit, and in the following clip he talks about the lessons Ford learned in getting rid of all the other car companies it spent billions to buy.

You can see the entire interview with Lewis Booth later today on our website AutolineDetroit.tv. And joining me for that interview are Bill Vlassic from the New York Times, and Csaba Csere, former editor of Car And Driver magazine.

And that’s it for today’s report on the global automotive industry. Thanks for watching, we’ll see you next week.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

Runtime 8:31

A study just released by the Centers for Disease Control shows that the annual cost of vehicle crashes in the U.S. at more than $99 billion!  The boron steel modern cars are made out of is so strong that the “Jaws of Life” used by most emergency crews cannot cut through it.  Ford has an iguana problem at its transmission plant in Sterling Heights, Michigan.  All that and more, plus John responds to your questions and comments in the You Said It! segment.

»Subscribe to Podcast | | | | Listen on Phone

This is Autoline Daily for August 26, 2010. And now, the news.

TRAFFIC ACCIDENTS = $99 BILLION
I should say, here’s a shocking statistic.  The Detroit News reports that a study just released by the Centers for Disease Control shows that the annual cost of vehicle crashes in the U.S. at more than $99 billion!  99 BILLION!  That figure covers medical expenses and productivity losses.  The cost of direct medical care was $17 billion.  That amounts to $500 for each licensed driver in the U.S. per year.  Total annual fatalities on America’s roads are about 36,000.  Another interesting statistic: more men – 70 percent – were killed and injured – 52 percent – than women.  I guess we’re just a whole lot more reckless.

UNION PACIFIC AUTOFLEX (subscription required)
Railroads move a HUGE amount of freight across the U.S., and new vehicles make up a sizable chunk of that cargo.  To make things easier for automakers, Union Pacific just unveiled a new type of railcar called the AutoFlex.  According to Ward’s, these cars can be reconfigured in just 24 hours to carry different types vehicles.  That may not sound like a big deal, but it can take months for railroads to maneuver their boxcars around if there’s unexpected demand for a certain kind of vehicle.  AutoFlex allows Union Pacific to quickly switch between carrying trucks or passenger cars, saving automakers money.  Surprisingly, the design is so innovative that it’s resulted in 15 patents.  Union Pacific is “on track” – ha, ha – to build 100 AutoFlex cars per year.

NO ECODYNAMICS FOR US CUSTOMERS (subscription required)
Kia was set to introduce a new environmentally friendly sub-brand in the U.S., but Ward’s reports that the idea has been torpedoed.  EcoDynamics was unveiled last year at the Frankfurt Motor Show.  It was supposed to be a global affair, but limited resources have caused the company to rethink its strategy.  Kia is also wary of introducing yet another brand in North America.  The huge expense of marketing another vehicle lineup also played a role in the decision.  Still, EcoDynamics vehicles are offered in Europe and many of their features are available on Kias in the U.S.

JAWS OF LIFE INEFFECTIVE WITH NEW STEEL (subscription required)
When safety regulators in the United States start mandating new regulations, they often ignore the impact they have in the real world. Roof-crush regulations that recently went into effect are now forcing automakers to design A-pillars that are so thick, they can partially block a driver’s view of pedestrians and traffic coming in from the side. Now Ward’s reports that the boron steel needed to make roofs stand up to those crush standards is so strong that the “Jaws of Life” used by most emergency crews to cut open cars involved in accidents cannot cut through that steel. They need to replace their equipment with a new type of “Jaws of Life” that cost about $5,000, a big expense, especially for smaller communities that are going through tough economic times.

FORD EXPANDING IN ASIA
Ford is taking advantage of its return to profitability and is putting the pedal to the metal to expand in Asia. The Associated Press reports that the company will introduce eight new models in India over the next five years. And it’s investing $350 million along with Mazda in Thailand to make pick-up trucks and subcompact cars. Ford’s vice president of Asia-Pacific, Joe Heinrichs, says that 70 percent of the company’s global growth will come from Asia over the next decade.

FORD TO CLOSE RANGER PLANT
Of course the pickup truck that Ford makes in Thailand is the Ranger, and while it’s investing in a new plant in Thailand to make that truck, it’s going to close a plant in the United States next year that makes an older version of the Ranger. Autoline Daily caught up with Mark Fields, the president of Ford’s American operations, who confirmed it will close.

By the way, a source at Ford tells Autoline Daily that a new Ranger could actually be built off the company’s new C-platform. Even though it’s a front-wheel-drive platform, it can also accommodate all wheel drive. Ford can now build about 1.8 million vehicles off that platform, including all variants.

LEAPIN’ LIZARDS!
And speaking of Ford plants, workers at the company’s transmission plant in Sterling Heights, Michigan, were startled to see an iguana running across the floor. They called in animal control experts who discovered it’s a very rare species of spiny-tailed iguana from the Yucatan peninsula in Mexico. They speculate that it hitched a ride in a cargo truck or packing crate that came in from Ford’s assembly plant in Hermosillo, Mexico. However, Hermosillo is a long way from the Yucatan, so they really don’t know how it got there. The iguana now lives at the Detroit Zoo, which was thrilled to get such a rare species.

Coming up next, a look at some of your comments, like on the way I pronounce certain car names, and why VW does a better job with its brands than GM or Ford do.

ihategeneralmotors wrote-in because he doesn’t like the way I pronounce the name of the Volkswagen Phaeton.

“Oh my bujeezus. FAYTUN. not FAYUHTUN. UGH, John.” Well ihategeneralmotors, I’ll just add that to the list of other names that people don’t like the way I say them, like Hyundai.

AccidentallyFunny loved our story on researchers in Scotland who are making fuel from the by products of making whiskey. Actually he loved the way that Jim Hall commented on this story.

“‘Total waste of good scotch.’ I absolutely love this man, excellent host.”

I agree AccidentallyFunny, Hall has a way with words.

And finally Pedro Fernandez wrote-in to ask, “Did VW learn anything from GM and Ford owning too many brands and all the problems they had?”

Pedro the difference is the way that VW handles these brands. It treats them as stand-alone companies. For example, Audi has its own board of directors, its own annual report, its own design and engineering departments, and so on. The same goes for VW’s other brands. Ford, and especially GM, on the other hand, use centralized control and operations. So a Mercury was just a slightly fancier Ford. A Pontiac was little differentiated from a Chevy. Even though VW’s approach involves a lot more overlap and duplication of resources, it clearly produces better results.

Speaking of brands, don’t forget to tune in to Autoline After Hours tonight, live at 7:00 p.m. Eastern Time. Our guest tonight will be Joe Serra, a car dealer with a lot of background in the Saturn brand. We’ll be talking about what’s going on in the retail-end of the business, as well as our comments on the news going on in this industry.

But that brings us to the end of today’s report on the top news in the global auto industry. Thanks for watching, we’ll see you tomorrow.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

Runtime 7:56

The U.S. federal government is investigating at least 20 dealerships that may have violated the rules of last year’s cash-for-clunkers program.  Hyundai and Renault reveal a couple new cars at the 2010 Moscow International Motor Show.  BYD is in trouble with the Chinese government for illegally building factories on farmland.  All that and more, plus guest-host Jim Hall sounds off on some of the perks and pitfalls of electric vehicles.

»Subscribe to Podcast | | | | Listen on Phone

Hey, it’s me again!  Jim Hall here from 2953 Analytics.  Welcome to Autoline Daily for Wednesday the 25^th of August, 2010.  As always, here’s what’s going on in the automotive world.

CASH-FOR-CLUNKERS FRAUD
The federal government is investigating at least 20 dealerships that may have violated the rules of last year’s Car Allowance Rebate System – the U.S. cash-for-clunkers program.  According to USA Today, auditors report that as much as $94 million in rebates may be ineligible due to a lack of proper documentation.  That’s about 3.3 percent of all the claims submitted.  There were other issues reported as well – for instance, some dealers allegedly shipped cars overseas that were meant to be destroyed.  So far nine different stores have paid a combined total of nearly $72,000 in fines.  Altogether this is a remarkably small amount of fraud to uncover given the scope of a $3 billion government program involving nearly 19,000 dealerships and almost 700,000 new-car buyers.

RENAULT LATITUDE
Over in Russia the 2010 Moscow International Motor Show is underway and we’ve got a few reveals to share with you. Renault introduced its future flagship sedan called the Latitude. Two engines are available when it goes on sale, a 2.0-liter gasser mated to a Continuously Variable Transmission and a 2.5-liter V-6 paired with a six-speed automatic. More engines will be available later. As you’d expect for a flagship model, the Latitude features a generous helping of luxury features… some of ‘em seen on much more expensive cars. The driver’s seat has a massager with four-different settings and it has an air-quality control system that features an ionizer that spreads fragrance throughout the cabin. The Latitude launches in Russia this fall and then will be released in 50 countries around the world.

HYUNDAI CONCEPT RB
Hyundai also revealed a subcompact vehicle called the Concept RB. Hyundai says the front-end of the concept will be mostly retained for the production version. When it goes on sale, customers will have the option to choose either a 1.4-liter or a 1.6-liter four-cylinder gas engine which comes standard with a five-speed manual transmission or it can be mated to a four-speed automatic. The vehicle will be built in Russia and goes on sale in the country next spring.

BYD IN TROUBLE OVER LAND USE
Earlier in the week we reported that Chinese automaker BYD, which is backed by billionaire investor Warren Buffett, wasn’t meeting sales expectations and as a result the company reported a weaker profit than expected. But now the company has even more problems. According to Bloomberg, the Chinese government is considering punishing the company for illegally building factories on farmland. Even though the company owns the land, it’s zoned for agricultural use. China is struggling with growing its economy while at the same time maintaining enough land to grow food for its citizens. Analysts fear that if the government doesn’t make an example of BYD and punish them, companies will continue to build illegally on farmland.

ZEROSHIFT GEARBOX FOR EVs (subscription required)
Ward’s reports that a British company called Zeroshift Ltd. has developed a new kind of multi-speed gearbox that can extend the range and boost the battery life of EVs by up to 10 percent!  That’s double digits!  This could allow automakers to use smaller, lighter electric motors to save weight and cost.  The company claims the transmission does not require any kind of clutch and can change gears seamlessly thanks to its unique design.  Zeroshift replaced the synchromesh found in a conventional manual gearbox with a pair of interlocking rings that change ratios without interrupting torque flow.

MITSUBISHI SLASHES i-MiEV PRICE (subscription required)
Mitsubishi has slashed the launch price of its i-MiEV electric car in the U.K.  According to Ward’s, the MSRP has dropped by a whopping 25 percent to – drum roll please – a-more-affordable-but-still-outrageous £28,990.  That’s nearly 45,000 U.S. dollars.  Keep in mind, that’s the price BEFORE a £5,000 government incentive.  The i-MiEV is set to go on sale January 1.

NISSAN LEAF PRE-ORDERS (subscription required)
In still more electric news, Ward’s reports that some 18,000 people in the U.S. have put money down to buy a Nissan LEAF.  The next step for these intenders is to convert their deposits into dealer orders.  The car goes on sale in the U.S. this December.  Initially the electric hatchback will be imported from Nissan’s Oppama plant in Japan with North American production set to begin later next year.

Hey, speaking of electric vehicles, coming up after the break a few of my thoughts on weird combination of wisdom and folly of EVs.

EVs THE NEW OLDSMOBILE DIESEL?
Have no doubts, electric vehicles are coming and will become a part of the automotive landscape no one will be able to ignore.

For manufacturers, the benefits of EVs are significant

• Zero emission cert costs
• Saves billions on a global basis
• CAFÉ perk

For SOME customers they will be the perfect compliment to the family fleet.

• Home fueling
• Cheap to fill… in some parts of the country
• Unique driving experience

Early adopters will be techno-junkies, aggressive environmentalists and the prototypical early-adopter

As used cars, pure EVs will be something of a challenge

• Paths to becoming a Used Car are challenging
• No garage, no fuel
• “Mooch” fueling from friends and family
• Getting ICED

Of course putting a small internal-combustion engine on the car to keep the batteries charged eliminates most of these shortcomings.

The intrigue of ownership for pure EVs may be something only the first buyer experiences.  There is aa distinct possibility that used EVs could become a drug on the market.  Like a late-seventies Oldsmobile diesel.

And remember; make Autoline Daily your first-stop for the latest news and the best analysis in the global automotive industry.  Again, I’m Jim Hall from 2953 Analytics.  Thanks for watching, McElroy’s back in the driver’s seat tomorrow.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

On a recent tour of Germany we stopped in to see what the supplier company Continental is up to. We got to see all kinds of new technology, and we also got a chance to drive some of the vehicles that use it. Craig Cole took a quick spin in the Tata Nano and here’s what it’s like behind the wheel of the world’s cheapest car.

Runtime 7:19

Some Chrysler dealers in the U.S. are less enthusiastic about the Fiat 500 than you’d think.  Woo-hoo, we’re saving the planet!  U.S. gasoline consumption in July fell .03 percent compared to the same time last year.  Toyota is retooling to make its factories more flexible.  All that and more, plus we drive the 2011 Ford Edge.

»Subscribe to Podcast | | | | Listen on Phone

Hello again!  It’s me, Jim Hall of 2953 Analytics.  Welcome to another episode of Autoline Daily!  It’s Tuesday, August 24, 2010, and here’s what’s going on in the global automotive world.

DEALERS COOL TO THE CINQUECENTO (subscription required)
We all know the Cinquecento is coming to the U.S. late this year.  It should give Chrysler a solid AND unique offering in the subcompact segment.  It has already generated a lot of buzz in America, but dealers are less enthusiastic about the car than you’d think.  The Wall Street Journal reports that some store owners are apprehensive about the investments they have to make to construct stand-alone Fiat buildings.  With the economy in the toilet they’re having trouble selling the cars they already have on their lots.  On top of that, Chrysler keeps adding brands – first they broke-out Ram truck, and now Fiat’s getting thrown into the mix – which could cause problems from a marketing standpoint.  But company CEO Sergio Marchionne says this multi-brand strategy can work because Chrysler’s brands don’t overlap like GM’s did.  Chrysler plans to outline its Fiat 500 strategy to some 600 dealers later this month.  Dealers have until September 22 to submit proposals for how they will meet Fiat franchise requirements.

U.S. GASOLINE CONSUMPTION FALLS
Yay, we’re saving the planet!  According to the American Petroleum Institute, U.S. gasoline consumption in July fell point zero three (.03) percent compared to the same time last year– yep, it was down three-hundredths of a percent to 9.3 million barrels a day.  But there’s a catch.  While Americans used less GAS last month, OVERALL oil demand was up 3.8 percent.  Low-sulfur distillates – the stuff used to make diesel fuel – shot up 11.6 percent.  Jet fuel demand was up nearly 7 percent.  Blame the improving economy for the increase.  The API says this slight economic uptick could have led to an increase in commercial trucking and more aircraft activity, resulting in a boost in oil demand.

TOYOTA RETOOLS
Toyota has a reputation for its flexible plants that can build several vehicles at one factory, but when car sales started going downhill two years ago the company found out it needed to be even more flexible. According to the Detroit News, Toyota has spent $600 million to retool its plants in North America in order to make them more flexible. For example, its Texas plant is now building both the Tacoma and Tundra and its plant in Indiana can now build the Highlander and Sequoia on the same line, even though the Highlander has a unibody frame and the Sequoia has a body-on-frame structure. Thanks to the changes, Toyota’s plants in the U.S. are running at 90 percent capacity and next year the company expects them to be running at full capacity.

TOYOTA HIRING IN MISSISSIPPI
And speaking of Toyota manufacturing in the U.S., the company announced it has resumed hiring at its factory in Mississippi which will build Corollas starting next year. The company had stopped construction of the plant during last year’s downturn.

SCOTCH WHISKEY FOR FUEL . . . SORT OF (subscription required)
Usually when you combine whisky and driving the results aren’t good, but in this case it’s the car that consumes the alcohol. According to Ward’s, researchers at Scotland’s Edinburgh Napier University have created biofuel from whiskey-distilling byproducts. The leftovers can be used to make butanol, which has 30 percent more energy than ethanol. And like ethanol, butanol can be combined with gasoline to run a car’s engine, but researchers believe it’s also powerful enough to run an engine on its own without combining it with gasoline.

MURANO MULLIGAN
To keep its lineup looking fresh, Nissan just announced a mild update of the Murano.  Arriving at dealerships next month, the enhanced crossover gets a revised grille, new tail lights and redesigned 18-inch wheels, among other changes.  There’s also a new exterior color available – Graphite Blue – and a new type of wood trim.  Inside, the 2011 Murano gets a host of minor updates including power lumbar for the driver’s seat, an auto-dimming rear-view mirror and a heated steering wheel.

Speaking of crossovers . . . after the break we’ll take a look at Ford’s redesigned twenty-eleven Edge.

2011 FORD EDGE
Last week Autoline Daily got a chance to drive the redesigned Ford Edge.  Here’s a look at what’s new for twenty-eleven. Seamus McElroy filed this report.

Since coming out in 2006 the Ford Edge has sold more than 400,000 models which makes it the best-selling vehicle in the mid-size crossover segment according to Ford. For 2011 the company reworked the vehicle, and even though Ford says it’s only a “refresh, ” a whole lot has changed from the previous model.

That’s the new infotainment system from Ford which is integrated with Sync. If you want to learn more about the system click the link in the transcript for our overview we did earlier in the year.

But let’s get back to the Edge, which offers more than just a new look.

And next year Ford will offer customers the option to choose a 2.0L EcoBoost inline-four engine as well.

Standard 18-inch tires which are wider than the previous model’s, help give the Edge a confident feel on the road. But that wasn’t the only thing done to improve the ride. The suspension was completely redone and the brake system was reworked which feels stiffer and more responsive than the previous model.

The 2011 Edge is being shipped as we speak and pricing starts just under $28,000, which is several hundred dollars less than the outgoing model.

Thanks for that report, Seamus.

And that’s a wrap for today’s show.  Again, I’m Jim Hall of 2953 Analytics.  Have a great rest of your day – however much of it is left – and I’ll see you back here tomorrow.

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950

Runtime 8:31

Volkswagen says it is interested in buying Alfa Romeo if it should become available. Mercedes-Benz revealed its brand-new 2012 CLS ahead of the Paris Motor Show. Indian automaker Mahindra has finally been given a green light by the U.S. EPA to sell its diesel pickups in America. All that and more, plus a look at Kia’s voice-activated infotainment system called UVO that is just hitting the market.

»Subscribe to Podcast | | | | Listen on Phone

This is Autoline Daily for August 23, 2010, and now, the news.

VW INTERESTED IN BUYING ALFA ROMEO
Fiat CEO Sergio Marchionne has made no bones about the fact that he’s sick and tired of Alfa Romeo losing money. He’s vowed to get it back in the black, or else! Well, now comes an interesting rumor out of Europe. Bloomberg reports that Volkswagen is interested in buying Alfa if it should become available. While other automakers are getting rid of brands, the German automaker keeps adding them. Now it has VW, Audi, Seat, Skoda, Lamborghini, Bentley, Bugatti, Scania and Porsche. So would Sergio ever sell Alfa to VW? Naaaaah.

GM POACHES ANOTHER HYUNDAI EXECUTIVE
General Motors stole a top marketing executive away from Hyundai. Chris Perry was named vice president of marketing for the Chevrolet brand. He had been vice-president of marketing for Hyundai Motor America, the job Joel Ewanick had before he left the company and ended up at GM. So now the top two marketing execs at Hyundai are at GM and I can only imagine the people at Hyundai are none to pleased with the way this ended up, while GM can rejoice that it has two of the best people in the business.

BYD IN TROUBLE
Chinese automaker BYD, backed by billionaire investor Warren Buffett, posted a profit for the second-quarter. Normally that’s a good thing but according to Reuters, it didn’t meet analysts’ expectations, and so its stock dropped after the results were announced. Further compounding BYD’s problems is a slow-down in sales. Earlier this month the company reduced its sales target by 200,000 units for the year. Also, some dealers have simply dropped out of its sales network due to high inventories that caused them to sell vehicles at a loss. And the company wasn’t too optimistic about the rest of the year, saying it expects sales to remain slow.

LUXURY SALES GROW IN CHINA
While things aren’t going well for BYD in China, the luxury-side of the market in the country is doing just fine. According to Gasgoo, luxury sales are up nearly 100 percent the first half of the year and analysts expect the trend to continue. Audi just announced it plans to double the number of vehicles in its line-up over the next five years. The company plans to have 35 models in the Chinese market by 2015, up from 16 this year. Audi expects to sell over 200,000 vehicles in China this year, several years ahead of schedule.

2012 MERCEDES-BENZ CLS
Mercedes introduced the CLS back in 2003, creating a whole new vehicle segment . . . the four-door coupe. Audi, BMW and even Hyundai are following its lead, introducing highly designed sedans. Ahead of the Paris Motor Show in October, Mercedes has revealed its brand-new 2012 CLS. And like the original, it’s a real looker. The company claims its design is similar to the gull-winged SLS AMG. Just like a coupe, the new CLS’ windows have no frames, plus the body is long and low. The car also features energy-saving LED headlamps. Inside, the dashboard is covered in hand-sewn leather and the air vents are galvanized with a satin-finish metal. From the pictures, everything inside looks top-notch.

MERCEDES DENIES BERNHARD RUMORS
In related news, reports coming out of Germany seem to indicate that next year Wolfgang Bernhard will become the head of Mercedes’ car division. Not surprisingly, the company denies these rumors calling them “pure fiction” and “completely unfounded.”

MAHINDRA RECEIVES EPA APPROVAL (subscription required)
Better late than never, right? The Wall Street Journal reports that Mahindra has finally been given a green light by the U.S. EPA to sell its pickups in America. The Indian automaker had hoped to offer a diesel-powered truck in the U.S. last-year in August, but it could not because it hadn’t received regulatory approval. Now it aims to have trucks on sale by December. Look for a version of the company’s Scorpio utility vehicle to follow, coming out late next year, and a hybrid SUV sometime by 2013.

MAHINDRA WANTS TO BUY SSANGYONG
In other Mahindra news, Bloomberg reports the company may take control of South-Korean automaker Ssangyong. The two companies signed a preliminary agreement earlier today to work together and share technology. Mahindra will help Ssangyong develop new product and modernize its lineup.

Voice activation is one way that automakers hope to cut-down on driver distraction. Coming up next we’ll show you how Kia is putting the technology to work in the new system that it calls UVO.

KIA UVO
Ford came out with its Sync system nearly three years ago. Up to now no one has caught up to it, up to now, that is. Here’s a look at Kia’s system called UVO that is just hitting the market.

Over in Europe, Fiat also has a system it developed with Microsoft that is calls Blue and Me. No doubt other automakers will now be introducing systems like this.

Don’t forget to listen-in on the biggest party-line in the automotive world. Check out Open Line tonight, starting at 8 p.m. Eastern Time. You can join-in on the conversation or just listen to where it goes. Check out today’s show notes for the phone number and PIN to get in.

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

Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, WardsAuto.com and WWJ Newsradio 950