Top 10 Most Memorable Movie Cars

When we came up with our list of Top 10 Movie Cars last summer, we had no idea our readers would be so passionate about their favorite films and the automotive characters in them. With "Transformers" coming soon, we revisited our list, listening to last year's reader feedback and arguing — once again — over which cars deserved to make the top 10. Some cars were able to hold on to their spots, while others were shuffled around to make room for more worthy contenders. With "Speed Racer" coming next year, expect another round of arguing.
No. 10: 2003 Mini Cooper S, "The Italian Job"

Drivetrain: 163-hp, supercharged 1.6-liter four-cylinder engine with six-speed manual transmission; front-wheel drive
Notable Features: 200 pounds lighter than stock Cooper S; painted red, white or blue

Larger cars would have rubbed fenders with light poles and tunnel walls, but thanks to a nimble fleet of Mini Coopers, a band of conspirators manages to escape captors down congested streets, parks and subway tunnels. (Parks? Mass transit? In Los Angeles?) Computer-rigged signals aid the getaway, stopping cross traffic at red lights. Sounds like California dreaming for drivers.
No. 9: 1959 Cadillac Ambulance, "Ghostbusters"

Drivetrain: 325-hp, 6.4-liter V-8; rear-wheel drive
Notable Features: Tailfins, flashing lights, sirens, attached ladder

Though it plays a relatively small part in its film, the Ectomobile is the finest medical movie car to date. What it lacks in brute force it makes up in style, with red tailfins, strobe lights and more roof gear than a fire truck. Should there ever be a remake, our pick for the new Ectomobile would be the Dodge Magnum. Right, Egon?
No. 8: 1974 Dodge Monaco, "The Blues Brothers"

Drivetrain: 275-hp, 7.1-liter V-8 with three-speed automatic transmission; rear-wheel drive
Notable Features: Cop motor, cop tires, cop suspension, cop shocks

You usually don't come out ahead when swapping a Caddy for a Dodge — unless the Dodge has a 440-cubic-inch V-8. The Bluesmobile would be our pick if we had to outrun the better half of Illinois police, not to mention a neo-Nazi outfit and a country-and-western band. The car totally falls apart in the end, but you'd be hard-pressed to find a vehicle that could do better on "a mission from God."
No. 7: 1932 Ford coupe, "American Graffiti"

Drivetrain: 60-hp, 3.6-liter V-8 with three-speed manual transmission
Notable Features: Bright yellow paint job bound to be noticed by bored teens in Modesto, Calif.

Nicknamed the "Deuce," this five-window '32 Ford coupe is the quintessential American hot rod. As built, it came with the engine mentioned above, but in the movie, it's clear the coupe has been souped up. It was the car's awesome growl and the cool drag race at the end of the movie that lodged this hot rod into the hearts of American teens for a decade.
No. 6: 1976 AMC Pacer, "Wayne's World"

Drivetrain: 100-hp inline-six with three-speed automatic transmission; rear-wheel drive
Notable Features: Flame decal, licorice dispenser, "Bohemian Rhapsody" on continuous playback

Although this movie may not have driven thousands of people to track down a baby blue Mirth Mobile of their own, it did inspire a number of in-car, head-banging singalongs by fans of the film.
No. 5: 1968 Ford Mustang GT 390, "Bullitt"

Drivetrain: 325-hp, 6.4-liter V-8 with four-speed manual transmission; rear-wheel drive
Notable Features: Fastback roof, higher engine note than the Charger

Never mind the continuity mishaps; just tell yourself there were a lot of green Volkswagen Beetles in San Francisco that day. The seven-minute chase scene between Frank Bullitt's Mustang GT 390 and a hit man's 1968 Dodge Charger is among the best of its kind. Voters gave Bullitt's car the edge because, in the end, you have to root for the good guy.
No. 4: 1964 Aston Martin DB5, "Goldfinger"

Drivetrain: 282-hp, 4.0-liter six-cylinder with four-speed manual transmission; rear-wheel drive
Notable Features: Bulletproof glass, machine guns, incessantly beeping radar screen

Save for the anemic BMW Z3 1.9 in "GoldenEye," Bond cars are top-notch — the list includes Aston Martins, Bentleys and Lotuses — but voters agreed the champ is the Aston Martin DB5 in "Goldfinger." Not only is it gorgeous, it outruns and out-gadgets all of its competitors. Plus it gets plenty of screen time with the best Bond, Sean Connery. Any dissenters, of course, are welcome to ride in the "power" passenger seat.
No. 3: 1961 Ferrari 250 GT, "Ferris Bueller's Day Off"

Drivetrain: 280-hp, 3.0-liter V-12 with four-speed manual transmission; rear-wheel drive
Notable Features: Cherry-red exterior, wire grille, Cameron-sized tonneau compartment

This movie is probably responsible for thousands of teens cutting class to joyride in their father's car. Of course, none hold a candle to Mr. Frye's convertible Ferrari. It won votes for all the obvious reasons: It's red, Italian and bloody fast. If our fathers owned something like this, we'd ditch Econ 101 in a heartbeat to take a spin — especially if Dad didn't lock the garage. (And yes, we know this was a kit car.)
No. 2: 1977 Pontiac Trans Am, "Smokey and the Bandit"

Drivetrain: 200-hp, 6.6-liter V-8 with three-speed automatic
Notable Features: T-top, CB radio, runaway bride in the passenger seat

The mission seemed simple enough: Get a truckload of bootleg beer from Texarkana, Texas, to Atlanta while Bo "Bandit" Darville runs interference in his Trans Am. The combination of the comical car chases and Burt Reynolds' mustache sold more than a few black and gold versions of Bandit's car.
No. 1: 1981 DeLorean DMC-12, "Back to the Future"

Drivetrain: 1.21-gigawatt nuclear/electric hybrid with five-speed manual transmission; rear-wheel drive
Notable Features: Gull-wing doors, 16-port twin exhaust boxes, flux capacitor

This was an overwhelming choice for voters, and why not? Doc Brown's smoke-spewing DeLorean achieves time travel at 88 mph thanks to a plutonium-powered nuclear reactor and onboard flux capacitor. By the end of the first movie, it runs solely on trash — and it can fly. That's still futuristic two decades after the movie debuted. Sure, the ignition seems to have some reliability issues, but this car easily won our hearts.

source : www.cars.com

‘57 Plymouth Waking from Time Capsule

A 1957 Plymouth Belvedere buried in a time capsule 50 years ago in Tulsa, Oklahoma, is about to return to the land of the living.



On June 15,Tulsa's town leaders will unveil the Belvedere as a part of "Tulsarama!" The celebration marks Oklahoma's 100th anniversary of statehood. Chrysler officials will be on hand for the public reveal, which can be seen in a Webcast hosted at the official site for the time capsule car, http://www.buriedcar.com.



The Belvedere - hawked by Chrysler back then with the tagline, "the only car to break the time barrier" - comes out of its civic-induced coma with its Torsion-Aire front suspension, tail fins, and push-button Torqueflite automatic transmission intact. It had been buried in front of the county courthouse in Tulsa .



Styled by the Chrysler team that was led by Virgil Exner, the Belvedere and its close kin, the Plymouth Fury, were introduced at the height of the Fifties fin craze.



The Belvedere's condition will be an interesting point to collectors. It was originally Cosmolined like an old Army rifle, wrapped up in plastic and coffined in a concrete-and-steel box. The automotive morticians even thoughtfully included ten gallons of gasoline and five quarts of motor oil in appropriate containers in the car's trunk - just in case such commodities were no longer available in the then-distant future.



The Belvedere isn't the only Chrysler product to be placed more than six feet under by the otherwise peaceful citizens of Oklahoma. In 1997, they buried a Plymouth Prowler in the city's Centennial Park.



It's due to be unearthed in 2037.

www.thecarconnection.com

2008 Porsche 911 GT2 Preview

New sport model gets twin turbos, 530 bhp.
Porsche has unveiled yet another variant of the 911, and this time it's the GT2, a car that Porsche says is its fastest 911 ever.

Only available with rear-wheel drive and a manual six-speed gearbox, the 2+2 hits 62 mph in 3.6 seconds and goes on to a top speed of 204 mph. Fuel economy is 22.6 mpg in the Euro cycle.



The 3.6-liter engine is based on the six-cylinder boxer unit from the 911 Turbo, with twin turbochargers featuring variable turbine geometry. Peak power of 530 hp is achieved at 6500 rpm, with maximum torque of 501 lb-ft maintained consistently between 2200 and 4500 rpm. Power is up by 50 hp over the standard 911 Turbo, an increase brought about by fitting the turbos with a larger compressor wheel and a flow-optimized turbine housing, raising turbocharger pressure.

The German company is also boasting of the car's achievements in terms of emissions management. The GT2 is the first Porsche homologated for the road to feature a rear silencer and tailpipes made of titanium as standard equipment. This reduces weight by approximately 50 percent when compared to a standard stainless steel component.

The new 911 GT2 comes as standard with Porsche Ceramic Composite Brakes (PCCB), featuring brake discs made of a composite carbon fiber/ceramic compound.

The car will make its world debut at the Frankfurt Motor Show in September, and go on sale across Europe soon after. It goes on sale in the U.S. early in 2008 for a price of $191,700.

2008 Mercedes-Benz SL

Mercedes' luxury convertible returns for 2008 with the same lineup it offered in 2007: There's the 382-horsepower SL550, the 510-horse SL55 AMG, the V-12-powered 510-horsepower SL600 and the AMG-tuned V-12 SL65, with 604 horsepower.



As before, all SLs sport four-wheel disc brakes with anti-lock and Brake Assist, stability control, side airbags, a pop-up roll bar, and TeleAid emergency system. Also standard are the Keyless Go entry/starter system, a heated steering wheel, and corner-illuminating fog lamps.



For 2008, new 18-inch five-spoke wheels are added to the SL500 as standard equipment. Customers who order the Trim Package on the SL550 can also order premium Nappa leather. Run-flat tires may be ordered, too.

2008 Mercedes-Benz SL

Mercedes' luxury convertible returns for 2008 with the same lineup it offered in 2007: There's the 382-horsepower SL550, the 510-horse SL55 AMG, the V-12-powered 510-horsepower SL600 and the AMG-tuned V-12 SL65, with 604 horsepower.



As before, all SLs sport four-wheel disc brakes with anti-lock and Brake Assist, stability control, side airbags, a pop-up roll bar, and TeleAid emergency system. Also standard are the Keyless Go entry/starter system, a heated steering wheel, and corner-illuminating fog lamps.



For 2008, new 18-inch five-spoke wheels are added to the SL500 as standard equipment. Customers who order the Trim Package on the SL550 can also order premium Nappa leather. Run-flat tires may be ordered, too.

Tata, Hyundai Bid for Jaguar?

Ford, which is struggling financially after losing $12.7 billion last year, moved closer to selling its Jaguar and Land Rover brands last week as it confirmed a number of "third parties" had submitted bids to purchase or take stakes in the British brands.



Ford did not identify any of the bidders. And adding a note of ambiguity to the proceedings, company officials talked about a "soft deadline" that could allow even more bidders.

Ford declined to say how many bids have been received or who submitted them. However, several private equity firms, among the Cerberus, Ripplewood Holdings and One Equity Partners, are thought to be in the hunt for Land Rover and Jaguar, according to reports originating inLondon.

However, higher interest rates and the relatively small amount of cash generated by both Land Rover and Jaguar could make the deals problematic for Ford. Until recently, automotive assets have been considered cheap in the private equity world. That could be changing as banks put higher demands on loans required to complete certain deals.

More intriguing were reports that India 's Tata Motors Ltd. and Mahindra & Mahindra Ltd., as well as Korea 's Hyundai, submitted bids. Given the Hyundai's insular corporate culture, it's unlikely it will press hard - and ultimately, the company's financial personnel may have been more curious about Jaguar and Land Rovers finances.



The two Indian companies are a different story. Both rich and eagerly looking for ways to expand their presence in the automotive space, they may hold a small edge in the competition for Jaguar and Land Rover.

Tata recently completed a deal with Fiat, and Mahindra is already planning to build utility vehicles in the U.S. While outsourcing of technical support functions from North America and Western Europe has helped drive the Indian economy in recent years, Indian companies and conglomerates such as Tata and Mahindra also have been quick to utilize assets and to draw on expertise in other parts of the world to expand.

A deal with an Indian partner also could help Ford expand in the south Asian market, which Ford officials have said is one of the areas they have targeted for future growth. However, Ford's problems in North America have hurt its ability to raise the capital necessary to move into the Indian market.



In March, Ford sold a majority stake in its Aston Martin luxury sports car unit for $848 million.

Meanwhile, Ford's Volvo unit also was put up for strategic review, which is aimed at maximizing the value of the company's assets. The review could lead to a potential sale of Volvo, though some analysts think it unlikely because the Swedish carmaker is now critical to the company's product development. Ford hasn't received any bids for Volvo either.

Only last year, Ford mortgaged its factories to get a $23.4 billion loan package to cover the cost of its ongoing restructuring and to keep it afloat until it makes a profit again, which is now projected to be in 2009.

2008 Toyota Camry Hybrid

Toyota 's gas-electric Camry Hybrid gets a price cut of $1000 and a couple of new option packages as it returns for the 2008 model year.



The hybrid model, rated at 43 mpg in city driving and 37 mpg on the highway, comes with standard power windows and door locks, as well as curtain and side airbags. Traction control is standard but stability control is optional.



Also standard on the Camry Hybrid are the Smart Key system, dual-zone automatic climate control, a Plasmacluster ionizer, 16-inch steel wheels, and AM/FM/single CD audio system with six speakers.



Two packages can be ordered to spiff up the Hybrid edition. Both include 16-inch alloy wheels, a JBL audio system, a leather-trimmed steering wheel and shift knob, an electrochromic rearview mirror, and a Homelink garage door opener. The difference in the packages? A navigation system.



Stand-alone options for this year's Camry Hybrid include a power moonroof, a leather interior, driver and front passenger heated seats and heated outside

mirrors.

www.thecarconnection.com

2008 Toyota Camry

Toyota's top-selling front-drive mid-size sedan was thoroughly revised and updated for 2007, with exterior styling and interior changes as well as an available 268-horsepower, 3.5 liter V-6 tied to an all-new six-speed automatic transmission.



For 2008 the Camry returns with only a very slight price increase of $100 on each model. The V-6 edition returns, as does the standard 2.4-liter four-cylinder, which is good for 158 horsepower; it can be ordered with either a five-speed manual or five-speed automatic transmission.



All trim levels come with A/C, power windows and door locks, and a CD stereo standard. All Camrys come with a knee airbag for the driver as well as full-length curtain and front seat side-impact airbags, for seven airbags in total. Traction control is standard but stability control remains optional. A 440-watt JBL audio system (with Bluetooth technology) is available, as is a DVD-based navigation system, putting the Camry right on the entry-luxury line when so equipped.

2008 Mazda6 Spied!

A year ago we brought you pictures of Mazda6 test mules. Now our spies have captured more prototypes during testing, and from our pictures it's apparent that the new Mazda6 is quickly approaching production.



Based on a modified CD3 platform known as CD3-2, the new Mazda6 will share its platform with the European Ford Mondeo, as well as the American Ford Fusion, Mercury Milan and Lincoln MKZ.



We're expecting the new Mazda 6 to arrive in time for the 2008 model year, although it will likely reach dealership late in 2007. It's expected to check in about 2 inches longer (with a 2-inch stretch in wheelbase) and a tad bit wider than today's car.



Sources tell us to expect the new 6 to be powered by Ford's 3.5-liter V-6, as well a 180-horsepower four-cylinder powerplant. All-wheel drive will be offered as an option. A hybrid, as well as a Mazdaspeed version, will eventually follow.

www.thecarconnection.com

Car wars

Car wars



Car wars: Continental is battling with US firm TRW
Car wars: Continental is battling with US firm TRW

Continental, the German auto parts group, is appealing to protectionist sentiment in Germany in its battle with US firm TRW for Siemens' auto parts subsidiary VDO.

Chief executive Karl-Thomas Neumann said in an interview that certain key industries and technologies "must not be lost" to foreign investors.

A combination of Continental and VDO would create "a company active in one of those key sectors that would be among the top five in the world", he told the Financial Times Deutschland.

Politicians are also wading into the VDO bidding war, with the regional state premier of Lower Saxony saying he favoured a sale to a German company rather than a potential foreign investor.

Sources say Continental is prepared to pay up to €11bn (£7.4bn) for the unit.

www.telegraph.co.uk

Streaking Dixon wins third in row

Streaking Dixon wins third in row


The way things are going for Scott Dixon, it surely wasn't a surprise that he avoided a first-lap accident Sunday and went on to win the Honda Indy 200 in Lexington, Ohio.

After all, Dixon is on a roll and it was his 27th birthday.

Dixon escaped the mishap in front of him that put a crimp in Danica Patrick's hopes and hung near the leaders before moving in front late to pick up his third consecutive IndyCar Series victory.

But not everything was perfect, mind you.

''It's a pity it's Sunday and everything closes at midnight,'' a grinning Dixon said, thinking ahead to his party.

Dixon's victory tightened the race in the driver standings. He trails series leader Dario Franchitti by 24 points with five races left.

Dixon took the lead for good on the 77th of 85 laps when Franchitti took a delayed pit stop. He wasn't threatened the rest of the way, beating Franchitti to the finish line by 2.7 seconds to tie the series mark for consecutive victories shared by Kenny Brack (1998) and Dan Wheldon (2005).

''The team is definitely on a roll,'' Dixon said. ''Everybody is full of confidence. Things just seem to click a little easier. Your decisions come a bit quicker.''

Patrick never recovered after a bit of bad luck on the first lap almost wiped her and two of her Andretti Green teammates out of the race.

''I have to stop myself and think for a little bit, 'All right, everything happens for a reason,''' said Patrick, who finished fifth. ''I don't know what it is yet.''

Teammate Tony Kanaan made contact with Patrick's car in the fourth turn, forcing her to pull into the grass to avoid any further damage from behind. Kanaan then slid into teammate Marco Andretti's car, causing it to go into a half-roll before flipping onto its top and sliding upside down along the pavement. He wasn't hurt, but his car was.

''There was nothing I could do,'' Kanaan said. ''Danica appeared to be sliding. I hit the brakes to avoid her and spun. Unfortunately, I took Marco out in the process. I felt so bad for Marco because he had nothing to do with it.''

Bourdais earns Champ Car victory
Three-time defending Champ Car World Series champion Sebastien Bourdais dominated the Grand Prix of Edmonton (Alberta), beating Justin Wilson -- who won the race last year -- to the finish line by nearly four seconds.

The result vaulted Bourdais, who is expected to leave Champ Car for Formula One next year, into first place in the driver standings. He entered the race two points behind Robert Doornbos and one behind Will Power and finished it 20 ahead of Doornbos and 25 ahead of Power.


www.suntimes.com

World’s cheapest car may be pricier than promised

World’s cheapest car may be pricier than promised

MUMBAI: High raw material costs and production delays could force top Indian vehicle maker Tata Motors to raise the price of the world’s cheapest car, with suppliers resisting pressure to lower prices any further.

Tata Motors is turning the screws on parts makers as it pushes to launch the car next spring or summer, despite delays in construction of the plant in the state of West Bengal after farmers opposed the acquisition of their land.

The company, India’s third-biggest automaker, had earlier announced the launch would be in early 2008.

Suppliers, already grappling with volatile raw material costs and softer domestic demand, are baulking at Tata’s price and delivery targets. Some have reportedly turned down its orders and others are seeking guarantees on volumes and prices.

“The Tatas’ demands are pretty aggressive, be it on product, cost or delivery,” said one supplier who asked not to be identified. “We’re being stretched.”

Tata Motors has promised to sell the car for Rs 100,000 ($2,500), but some analysts say it will now have to price it 25 percent higher in order to maintain a profit margin of 8 percent.

A sticker price of 125,000 rupees would put the vehicle in line with other low-cost cars being considered by competitors such as Renault and Nissan.

Chairman Ratan Tata said at a recent shareholders’ meeting that the firm was committed to launching the car in the first half of the fiscal year ending March 2009. A company spokesman on Monday reiterated that timeline and said it had no fresh comment on the price.

A car priced so cheap in a country where small cars make up two-thirds of sales could have a potential market of one million units, Chairman Tata has said. Suppliers say they have been told to gear up for an initial run of 250,000-300,000 units.

Tata Motors also has been encouraging suppliers to set up factories near the new plant to reduce transport and packaging costs, which can make up 8-10 percent of total manufacturing costs, while also enabling ‘just-in-time’ deliveries that reduce the need to hold costly inventories.

The company, which is estimated to have invested about $450 million in the project so far, also has said it may use satellite assembly units owned by franchisees, alternate materials like General Electric’s re-engineered plastics, and some modern adhesives instead of welding to cut costs.

Its plan has prompted Carlos Ghosn, the head of Renault and Nissan Motor Co, to study the feasibility of making a $3,000 car with an Indian vehicle maker.

Toyota Motor Corp, Honda Motor Co, Fiat, Volkswagen and India’s Bajaj Auto are also looking to build small, low-cost cars, but others say a car so cheap cannot meet strict emission and safety standards.

Launch price: Tata’s suppliers include Sona Koyo Steering Systems, Gabriel Ltd., Kinetic Engineering, Lumax Industries, Rico Auto, Bosch Chassis Systems and Tenneco. Also among its suppliers are a large number of Tata group companies, including Tata Bearings, Tata Toyo Radiator, Tata Johnson Controls, Tata Yazaki and Tata Ryerson, which should help ensure better cost control and timeliness. reuters

www.dailytimes.com.pk

Auto Talks Begin Between GM and UAW

DETROIT -

The president of the United Auto Workers said Monday his union is not in the mood to make concessions during contract talks with U.S.-based automakers who say they need cost cuts to stay in business.

The comments came after the traditional handshake between officials from the UAW and General Motors Corp. (nyse: GM - news - people ), the nation's No. 1 automaker. The ceremony officially kicked off negotiations between the sides.

At least on the surface, it appears that the union and GM are far apart as they try to ink a new national contract before a Sept. 14 deadline. Ford Motor Co. (nyse: F - news - people ) also will seek concessions after its talks open Monday afternoon. Bargaining with Chrysler Group started last week.

GM, which lost about $2 billion last year and still isn't making money in North America, clearly will put concessions on the bargaining table.

"We know that these are going to be difficult contract negotiations," Diana Tremblay, GM's chief negotiator, said after the handshake at a GM-UAW human resources building along the Detroit River. "We know that we need to make some changes to make the business sustainable over the long term."

But UAW President Ron Gettelfinger said the union is not in a concessionary mode, and he also said a strike still is possible despite the precarious financial positions of the Detroit Three. He has said that the union will try for a pattern contract with one that extends to the others, but he said a target company has not been selected.

"That just depends on the tone of the negotiations," Gettelfinger said.

Earlier, Gettelfinger smiled and shook hands with GM Chairman and CEO Rick Wagoner, while Tremblay shook hands with UAW Vice President Cal Rapson. All four had to lean across a table to complete the handshake for photographers.

This year's auto talks have taken on a more urgent tone because the Detroit Three lost a combined $15 billion in 2006 and are in the midst of shrinking themselves and rolling out new vehicles in an effort to better compete with the Japanese. Industry analysts have said reducing labor costs is critical to the companies' survival.

Ford is in the worst shape of the three, having mortgaged its factories to set up a $23.4 billion line of credit to cover losses and pay operating expenses while it restructures. Ford lost $12.6 billion last year and $282 million in the first quarter of this year, and it doesn't expect to make money again until 2009.

Analysts say Ford likely will seek deeper concessions than the other two automakers, perhaps temporary wage cuts.

All three say the talks need to bring them labor cost parity with Japanese automakers, who make about $2,000 per car more in profits.

The Detroit automakers say their hourly labor costs are about $25 more than Toyota Motor Corp. (nyse: TM - news - people ), Honda Motor Co. (nyse: HMC - news - people ) and Nissan Motor Co. (nasdaq: NSANY - news - people ) when health care, pension, retiree and other costs are factored in.

Ford, though, really isn't much different because the Detroit automakers all have the same problems, said Laurie Harbour-Felax, managing director at Stout Risius Ross Inc., who has done detailed studies of auto manufacturing costs.

"Ford is probably not as well-positioned as GM today ... but they still have the same issues around health care that are crippling them," Harbour-Felax said.

All three must deal with rising health care costs and the "jobs bank," in which companies pay workers most of their salaries when their assembly lines aren't running. She said her studies have shown that the Detroit Three pay $1,200 to $1,500 per car in health care costs, far more than the Japanese automakers.

The UAW, however, has said that labor costs represent only 10 percent of the price of a new vehicle.

Health care is a major issue for GM, which paid $4.8 billion for it last year and has said it is the company's largest competitive disadvantage.

"I think it's impossible to ignore the issue," Tremblay said Monday. "Well see how possible it is to address it."

Before the GM ceremony Monday, about 100 people, mostly retirees, marched outside the building carrying signs in protest of further concessions.

One marcher, Claire McClinton of Flint, said she opposed more givebacks because GM has money to build plants overseas and because it has paid millions in executive bonuses.

"You can't tell us you're broke, and you do these things," said McClinton, 57, who works at the Flint Metal Center.

www.forbes.com

Under The Hood: GM Continues To Cut Car Rental Fleet Sales

Under The Hood: GM Continues To Cut Car Rental Fleet Sales

JULY 23, 2007 -- Auto manufacturer General Motors this month reported that it has taken more than 92,000 daily rental vehicles out of its 2007 sales totals in the first half of the year. This included a reduction of 13,487 daily rental sale vehicles in June alone, a decrease of 22 percent from June 2006. Even though GM blamed the cutbacks for an overall 24 percent drop in sales in June, the company asserted that reducing car rental fleet sales remained its strategy. "We continue to believe that maintaining a disciplined approach to both incentives and daily rental car sales is key to making our marketing strategy work in the long run," Mark LaNeve, GM vice president of North American sales, service and marketing, said in a prepared statement. This strategy is common among auto manufacturers, and car rental companies have pushed for steeper rate increases amid the increased costs of maintaining their fleets (BTN, Sept. 11, 2006).

Rental Cos. Enhance Navigation Tools
Two car rental suppliers have added global positioning system devices to their fleet, and a third has expanded its current GPS offering overseas. Tulsa, Okla.-based Dollar Thrifty Automotive Group announced this month that it is offering the Garmin Nuvi 660 tool at about 90 locations throughout the United States. The tool, available for $11.99 per day, features a touchscreen interface, voice-prompted driving directions, Bluetooth capability and an FM transmitter, and gives customers access to such traffic information as accident and construction delays. Similarly, Advantage Rent a Car announced in June that it was adding the portable Magellan vehicle navigation system to its fleet. The Magellan tool will be at all Advantage U.S. airport markets this summer. Hertz Corp., meanwhile, already is using its NeverLost units, which also are based on Magellan technology. The car rental supplier announced this month that is making those tools available at more cities and airports across Europe. Hertz initially launched the NeverLost tool in Europe in November 2005, and the additional 1,500 units now bring the total number of tools available to 4,000, available at more than 240 Hertz locations in 16 European countries.

Carey Houston Branch Adds Internet
The Houston branch of chauffeured transportation supplier Carey International in June announced that it is installing technology in its vehicles to allow passengers to access the Internet through wireless or Ethernet connections. The service is provided through mobile cellular routers designed by Cambridge, Mass.-based WAAV Inc., allowing users to create their own mobile Wi-Fi hotspots at broadband speeds. Carey added the service to complement its other mobile office offerings, which include a writing desk, a cellular phone, a 110-volt outlet, satellite radio and extra power points. "The response from the business executives and VIPs that make up the majority of our customers has been extremely positive," Carey Houston general manager Thomas Nielsen said in a prepared statement. "More than almost any other tool available to business travelers, this service makes their time in the vehicle more productive." The service carries no additional charge to customers, according to Carey.

Advantage Details Growth Plans
San Antonio, Texas-based Advantage Rent A Car is embarking on what it calls an "aggressive growth trend," increasing its footprint through new locations domestically and alliances abroad. Most recently, the car rental supplier in May opened a location at Kahului Airport on the island of Maui in Hawaii. This follows expansion into other top markets in Florida, Nevada, California, Colorado and Utah, according to the company. In addition, the company has been adding to its international network over the last year, extending its brand into 36 countries in North and South America, Australia, Europe and the Middle East.

www.btnmag.com

Is Your College Student 'Jonesin' for a Car or Truck? It's Time to Have 'The Talk,' Says AWARE

With approximately 7.5 million students exchanging the comforts of home for the freedom and responsibility of living on their own at college campuses, AWARE, a consumer education non-profit specializing in auto finance education, reminds parents to have "the talk" with their kids. College students should be reminded to be safe and responsible with their credit -- particularly if they're thinking about buying a car or truck in the future.

"The decisions young college students make today will affect the rate at which they can finance a car or truck tomorrow," said Eric Hoffman, spokesman for AWARE. "Today's financial decisions will also affect the amount of credit a finance company will extend to a borrower. Because credit history plays such an important role in determining the annual percentage rate of any form of credit, demonstrating responsibility with credit as a freshman or sophomore says an awful lot to a financing company when the time comes to buy a vehicle."

AWARE says those who've not yet established a credit profile should focus on paying their bills on time and not spending more than they have. For those who have had past credit problems, it means now is the time to take necessary action to repair their credit history.

"Buying a car or truck along with leading the collegiate life represents the ultimate freedom for many college students," Hoffman said. "We're working to educate both first-time and experienced buyers on the benefits of establishing good credit now. It's a lot easier to establish good credit initially than repair bad credit later."

AWARE says that overall American consumers do understand the value of establishing good credit history. AWARE's public opinion data shows that nearly 80 percent of Americans know that their credit history affects the annual percentage rate (APR) for financing a new car or truck.

Besides a borrower's credit history, a number of variables determine a borrower's APR including prevailing rates, the amount financed, the terms of the financing contract, the down payment amount, the vehicle make and model, competition, market conditions and special offers.

Here are some tips for parents to share with college students considering financing their first car or truck:

Build a budget with your kids: Help your student determine a price range and make them stick to it. Remind them to factor in vehicle related costs outside of the monthly payment, such as insurance, maintenance and gas costs. Check out the "Affordability Gauge" at http://www.autofinancing101.org/LearningSuite. Have your kids check out their free credit report: Because credit history affects the APR, it's always a good idea to see what finance companies will see when judging credit worthiness. Have your student get a free copy of his or her credit report through http://www.annualcreditreport.com/. This way, any errors can be corrected and other steps can be taken to improve their credit score before getting their heart set on a vehicle. Shop around for financing: There are thousands of sources of financing for automobile purchases, such as dealerships, banks, credit unions, and other financing companies. In this highly competitive marketplace it's smart to check annual percentage rates and other financing terms from multiple sources. Be "In The Know": Help your student learn the lingo so they can "talk the talk and walk the walk" when making what is likely the largest financing decision of his or her life. Many of these terms can be found in the glossary at http://www.autofinancing101.org/LearningSuite. Understand How to Build Credit: First-time car buyers will likely hit obstacles that those with more established credit histories won't face. Talk with your student about the pro's and con's of you or another credit-responsible adult being a co-applicant, which may help secure a more competitive rate. Also, through dealerships, many finance companies offer first-time car buyer programs that take into account other good credit behaviors, such as rent and utilities payments, that might not be showing up in an early credit user's credit score. Ensure your kids make their payments on time: Late or missed payments incur late fees and can even cause the vehicle to be repossessed, permanently. A bad payment record will also appear on his or her credit report, damaging an ability to get credit in the future.

A host of tools, calculators, articles and other resources to help consumers sufficiently prepare for their auto financing decisions can be found in the "Auto Financing Learning Suite" section of AWARE's Web site ( http://www.autofinancing101.org/) --available in both English and Spanish. AWARE is a national nonprofit organization, formed by leaders in the auto financing industry, with a singular mission of enhancing understanding of the vehicle financing process. The group offers free educational materials and other resources in an environment free of advertising or lead generating sales tactics.

AWARE's membership includes the following:

American Financial Services Land Rover Capital Group
Association
National Automobile Dealers Lithia Motors
Association
National Association of
Minority Automobile
Dealers Mazda American Credit
American International
Automobile Dealers
Association National Auto Finance Company
American Honda Finance
Corporation Nuvell Financial Services
American Suzuki Financial
Services Saab Financial Services Corp.
AutoNation Sonic Automotive, Inc.
DaimlerChrysler Financial
Services Americas Toyota Financial Services
Ford Motor Credit Company United Auto Group, Inc.
GMAC Volvo Car Finance North America
Group 1 Automotive, Inc. Wells Fargo Auto Finance
Jaguar Credit

sev.prnewswire.com

Michigan to host 3M Auto Fair during race weekend

ST. PAUL, Minn. -- The 3M Performance 400 Nextel Cup Series race in August won't be the only attraction that 3M brings to Michigan International Speedway in 2007.

During the weekend of the 3M Performance 400, Aug.17-19, 3M will provide race fans and auto enthusiasts new excitement off the track with the 3M Car Care Auto Fair on the speedway grounds.
NASCAR.COM Community

With more than 100 collector cars on display, race fans can mingle with auto care professionals and enthusiasts to learn and share car care tips. The 3M Car Care Auto Fair will feature a variety of automobiles from private collections, exhibitors and automobile clubs from across the United States and Canada. Several classic cars from NASCAR team owners Jack Roush and Ray Evernham also will be on display. Other notable cars include a 1957 Hudson Hornet, the "Herbie" Shaker car and a 1968 Sullivan Camaro.

"We're hosting the 3M Car Care Auto Fair to celebrate all of the car enthusiasts who rebuild, restore and repair beautiful classic cars," said Greg Klausen, business manager, 3M Automotive Retail Products. "These folks truly are artists. We're proud that they choose 3M Car Care products to restore and protect their prized automobiles. We think it will be exciting for race fans to see these amazing collector cars up close and learn from the experts how they can improve their own vehicles."

Live entertainment, including music by renowned blues artist Jimmie Vaughn and notable celebrities like Courtney Hansen and many NASCAR drivers, will be featured throughout the weekend on the 3M Car Care Auto Fair main stage.

The 3M Car Care Auto Fair is free to race fans and will be open Saturday and Sunday from 8 a.m. to 1 p.m. The event will be held in the AAA Motorsports Fan Plaza behind the track's main grandstand.

Toyota Will Restart Car Production in Japan Tomorrow (Update6)

Toyota Will Restart Car Production in Japan Tomorrow


(Bloomberg) -- Toyota Motor Corp., Japan's biggest carmaker, said it will restart production at domestic auto plants tomorrow after they were shut down due to a lack of parts following earthquake damage to a supplier's factories.

Toyota will restart production at 20 of its 31 domestic lines for one day, said Kayo Doi, a Toyota spokeswoman. Manufacturing beyond tomorrow has yet to be determined, Doi said. Toyota will lose output of 55,000 vehicles through tomorrow because of the shutdown.

The carmaker stopped production in Japan on July 19 after an earthquake damaged facilities at piston-ring supplier Riken Corp. three days earlier. Japanese automakers limit inventory to cut costs, preferring to take delivery of components only when needed.

``The recent event highlighted the risk of a too-lean supply structure,'' Tatsuya Mizuno, director at Fitch Ratings in Tokyo, said in a report today. Fitch Ratings also said production cuts won't affect its ratings and outlook on the Japanese automakers because they can catch up with production as Riken resumes output.

Toyota reiterated its 2007 global target of selling 9.34 million vehicles, a number that includes sales by its affiliates Daihatsu Motor Co. and Hino Motors Ltd. Excluding the two subsidiaries, Toyota expects to sell 8.4 million vehicles.

``In Japan, sales were quite difficult in the first half, but in the second half we hope to increase demand by introducing new models,'' President Katsuaki Watanabe said at a Tokyo press conference.

Honda, Mazda

Honda Motor Co., Japan's second-largest carmaker, will restart production at three factories tomorrow, the company said in a statement today. Mazda Motor Corp., a third owned by Ford Motor Co., will restart output at its factory in Yamaguchi prefecture tonight and at its plant in Hiroshima prefecture tomorrow, said spokeswoman Yukari Hara.

Daihatsu, Japan's largest minicar maker, restarted production at two plants today and will resume operations at another tomorrow, said spokesman Shozo Shimizu. Fuji Heavy Industries Ltd. may resume making minicars on July 25, spokesman Kenta Matsumoto said.

Mitsubishi Motors Corp. will extend its output suspension to tomorrow, the Tokyo-based company said in a faxed statement. The automaker plans on July 25 and July 26 to resume production, while it may have to stop manufacturing the following day, the statement said.

Mitsubishi Motors halted production at its Mizushima plant, where it makes models including the Lancer sports sedan, for four days from July 20. It stopped lines at its Nagoya and Pajero plants for three days from July 21.

Lost Output

Mitsubishi Motors estimated lost output during the unplanned suspension to total 10,000 cars, the statement said.

Riken restarted partial production this morning. The Tokyo- based company is Japan's largest maker of piston rings and seal rings, key parts used in engines and transmissions.

Riken closed 11 factories after an earthquake that measured 6.8 on the Richter scale. Toyota has dispatched more than 200 engineers to help Riken resume production.

Toyota shares fell 1.2 percent to close at 7,470 yen in Tokyo.

The following table summarizes the impact on each automaker's production schedules:

Automaker Date Impact
Toyota July 19-20 full halt for 1.5 days at 12 factories
including plants operated by body
makers
July 23 full halt at 12 factories including
engine plants operated by body makers
July 24 Resume partial production

Nissan July 20-21 partial halt at Tochigi and Oppama
factories and Nissan Shatai Co.'s
plant
July 23 full halt at six factories including
Oppama and Tochigi plants
July 24 full halt at Oppama and Kyushu auto
plants and resume production at two
parts plants

Mitsubishi July 20-24 full halt at Mizushima factory for 5
Motors days until July 24; full halt at
Pajero and Nagoya factories and engine
plant for 4 days until July 24

Honda July 20 full halt at Suzuka factory
July 21 full halt at Suzuka and Sayama
factories
July 23 full halt at three auto plants
including its Yachiyo Industry Co.
unit
and engine plant for minicars; partial
halt at motorcycle plant
July 24 full halt at Yachiyo's Yokkaichi
factory, engine factory for minicars;
resume output at Sayama and Hamamatsu
factories; partial resumption at
Suzuka plant

Mazda July 21 full halt at Ujina and Hofu factories
July 23 partial halt at Ujina and Hofu plants;
resume night shift at Hofu
July 24 resume production at Ujina factory

Suzuki July 19-21 partial halt at 5 factories including
engine plants
July 23 full halt at two auto factories and
engine plant; resume output at three
plants for motorcycles and forged
products
July 24 full halt at two auto factories and
engine plants

Daihatsu July 19-20 full halt at factories including
engine plants for 1.5 days

July 23 full halt at Ikeda and Kyoto plants;
resume output at Shiga and Oita plants
July 24 resume output at Ikeda plant; halt
output at Kyoto plant

Fuji July 19-21 full halt of minicars at 1 factory for
Heavy 2.5 days
July 23-24 prescheduled to close plants
July 25 may restart minicar production

Hino July 19-20 full halt at Hamura factory for 1.5
days
July 23 full halt at Hamura factory
July 24 resume commercial vehicle production
at Hamura factory; passenger car
production remains suspended

Isuzu July 21 full halt
July 23 resume production

Nissan July 21 full halt
Diesel July 23-25 resume production

Fuso July 20-21 partial halt
July 23-24 resume production

www.bloomberg.com

Honda to recall 2,310 Accords for fuel pump snag

NEW DELHI: The breed of next generation high-tech vehicles are having their share of problems. After Bajaj Auto, Tata Motors and Maruti’s minor hiccups with their new products, Honda Siel Car India (HSCI) is recalling 2,310 units of Accord sedans to replace a relay in the fuel-pump of the car.

HSCI, as part of the global campaign of parent Honda Motor Company, has informed customers that it will replace the defective parts. This is the second technical glitch for HSCI which had earlier recalled 4,459 units of its premium SUV model CR-V for a free fuel tank replacement last month.

The CR-Vs manufactured in the same years —between 2003 to 2005— have run into trouble with customers in countries such as Singapore, Malaysia, Thailand, the Middle East and Central America. Most of those complaints were about a fuel smell in the passenger cabin. The company had gone in for a replacement of the fuel tank of all the 4,459 CR-Vs in the domestic market.

Now the company is recalling a certain number of its second premium model as well. “We have not received any complaint in India yet, but these changes are being made as part of the global campaign for complete safety of our vehicle. In all, we have sold 13,319 Accords, but these changes make up for only a small part of the total sales,” HSCI senior GM Jnaneshwar Sen said.

Earlier this year, Honda Motor in the US had recalled 81,000 of its 2004 and 2005 Accord sedans because of problems that could cause an airbag-related sensor to fail. Similar problems had dogged other manufacturers also. Few months back, Bajaj Auto faced problems with its performance bike Pulsar 200 after customers complained of problems in the front forks. Those complaints forced the company to recall a few units.

Maruti Udyog, the passenger car market leader, has also had its share of problems. While its utility vehicle Versa had a technical glitch and around 2,000 units were called for check-up in 2005, some units of its premium hatchback Swift (petrol) also had problems in the boot door lock and the glass assembly of the front right-side door.

The company had asked its customers to go in for free check-up and offered free replacement of the defective parts after complaints of door rattling and malfunction in the power window were made by the customers last year. Home-grown major Tata Motors also faced problems during the launch of its flagship model Indica, a few years ago.

The perennial problems in the suspension and brakes assembly forced the company to change spares in a large number of vehicles after consumer complaints. The problem in the Indica platform prompted Tata Motors to refurbish and launch a new car under the V2 marquee.

economictimes.indiatimes.com

Labor pledges to review car import tariffs

A Labor government will review plans to cut car import tariffs as part of a plan to save Australia's ailing auto industry amid reports that hundreds of Ford jobs are under threat.

Up to 600 jobs are under threat as the car maker considers closing its V6 engine plant at Geelong because of decreasing demand for larger cars.

Labor's treasury spokesman Wayne Swan today called on the government to step in to help save the Ford jobs, and indicated a Labor government would be prepared to review the scheduled tariff reduction.

A 10 per cent tariff currently applies to car imports, but the federal government is reducing this to five per cent by 2010.

"We're not making a commitment to stop that reduction in tariffs, but we are happy to sit down and talk with the industry about all of the issues that are challenging them at the moment," Mr Swan told the Nine Network.

"We are certainly prepared to discuss that with the industry, but in the context of a wider plan and a longer term plan for the industry."

Federal Industry Minister Ian Macfarlane has ruled out reviewing tariff cuts on vehicle imports.

"The reality is that by lowering tariffs and providing the industry with $7.3 billion worth of assistance, we have allowed that industry to become internationally competitive," he told ABC Radio yesterday.

Ford yesterday said no decision had yet been made on whether to close the engine plant but the company was looking at changes across its business as the popularity of large cars dipped.

"I think the government needs to sit down with a matter of urgency with Ford and work their way through that problem," Mr Swan said today.

"There's no doubt that the motor industry faces very considerable challenges; globalisation is impacting in a way on the motor industry that's got particular challenges for domestic companies.

"There is no instant solution here but in the past we have worked successfully with the car companies to meet that threat and I think we are going to have to do it again."

Jaguar XK Review

In early 2006 the new Jaguar XK superseded the XK8 which we first saw 1996 and like the XK8, the XK is available in two body variants, a coupe and a convertible. Similarly there are two engine choices, either a naturally aspirated V8 or a supercharged variant.
At Jaguar, XK has always stood for sports car and for Jaguar, sports cars have always been used to push technology forwards. The badge first appeared on the XK120, unveiled at the London Motor Show in 1948. Like the new XK, the very first XK120s had aluminium bodywork and although the production models reverted to steel bodies, they still had abundant performance - mainly thanks to the first appearance in production of the classic Jaguar six-cylinder, twin-cam XK engine and retention of lightweight aluminium closure panels. In 1949 the XK120 justified its name, by topping 120mph in an official record run on the Jabbeke motorway in Belgium. Not only was it the fastest sports car of its day, it also started a golden era for Jaguar in sports car racing.

When the next XK, the XK8, appeared, in 1996, it reflected the times. It was a very different kind of car more a grand tourer than a classic sports car in the 1950s and 1960s mould, but every inch a Jaguar, and destined to be the fastest selling sports car in Jaguar history.

Now, the all-new XK takes the Jaguar sports car line to another level. It is lighter, faster and better equipped than the model it replaces, with substantial improvements in performance, handling dynamics, braking distances, safety and economy. In looks it pays homage to the legendary Jaguars of the past - the front grille, for example, is a clear evolution of the classic front ends seen on the D and E-type.
There are two engine variants in the Jaguar XK line up, a naturally aspirated or a supercharged 4.2 litre (4196cc) V8 engine. We drove the naturally aspirated Jaguar XK which produces 300bhp at 6000 rpm and develops maximum torque of 303 lb ft at 4,100rpm. The engine is built at the Bridgend engine plant in Wales; we have seen variants of the AJ-V8 engine since 1996 in previous Jaguar’s, including the outgoing XK8. It is a well tested engine but at 11 years of age we feel that it is out paced and under powered by BMW and Audi latest offerings.
Jaguar quotes a 0-62 mph time of 6.1 seconds and an electronically limited top speed of 155 mph. On the road we felt that sometimes the XK felt a little lacking, it certainly can deliver across the rev band but we felt as though some hot hatches could snap at its heals, not something you want from your Jaguar. Of course if it is out and out performance you are after there is the supercharged XK.

All XK’s are fitted with Jaguar’s sequential shift 6-speed automatic transmission system which incorporates steering wheel-mounted paddles for manual gear changes. The box is a break from Jaguar’s ‘J-Gate’ and now is an ‘L-Gate’ - you simply knock the lever to the left for sports mode, back to the right for normal or you can use the paddles on steering wheel. On Mercedes’ fitted with paddles I never really bothered to use them preferring to let the gearbox to do all the work but I did find myself using them on the XK as they worked well. We loved the way the XK blips the throttle either when you manually shift down or leave the car in sports mode - it sent a little chill up the spine.

The engine note is very addictive from the moment you fire up the engine via the red starter button, all the way up the rev band and back down again. I doubt you would ever tire of the burbling V8 pouring out of the twin exhausts.

We achieved 28 mpg on a relaxed tour of ‘A’ and ‘B’ roads but realistically you are looking at nearer to 22 mpg - which isn’t too bad considering what is under the bonnet.

Overall the engine is very good and so is the gearbox, just not the best in its class.
Our car rode on optional 20” wheels (£2500), the tyres at the front were 255/35 and at the rear 285/30, which is pretty wide. In our opinion the handling is more grand tourer than out and out sports car, but it is very near. Grip is phenomenal, even in the wet you would have to do be doing something insane on the public highway to lose grip and even then the traction /stability control brings everything under control. Even pulling off fast out of a junction in the rain did little to upset the XK, only the flicker of the traction control light indicating that something thing was adrift.

On our favourite test roads we found the steering possibly a little too light and on occasions the gearbox was caught out. It is best to be in sports mode as it makes the XK really stand up - also watch out for stability as on a very demanding uphill switch back bend it brought the car to a complete halt. Which I guess isn’t really a criticism more of an observation of the Jaguar’s safety systems in action.

We have to commend the XK’s ventilated brakes which are simply superb; too often ABS is too intrusive. Jaguar has got it just about right and even if you are an enthusiastic driver I am sure you will agree. The new XK has four-channel ABS with analogue control which is more refined than simpler ‘on-off’ digital controls, and Electronic Brakeforce Distribution which ensures the correct balance of braking forces between all four wheels irrespective of road or vehicle-load conditions.

You can have some great fun with the XK, it is safe, it has predictable neutral handing and can take you through the most demanding of bends with some pace - it is not a Porsche 911 but more a grand tourer with pedigree.

source : www.carpages.co.uk

Buick: Auto Editor Helps Parents Buy A Car

My parents just bought a new car. It’s a 2007 Buick Lucerne. (Note to Buick: Sorry, you’ll never be a young person’s brand, and you’ll probably have trouble being a middle-aged person’s lucernegrillecar. Note to Mom and Dad: You’re still young in my eyes.)

I helped them, mainly because they don’t have a computer. They looked at a dealership in Charlotte, N.C., where they live, and then gave me a call. I was able to tell them the car’s invoice price and what other real people were paying for it, thanks to the Kelley Blue Book and Edmunds Web sites.

We talked over some features, and option packages. I also shared with them the ratings of the Lucerne from Consumer Reports and J.D. Power.

They hadn’t written down the precise numbers from the car’s window sticker, but I was able to go directly to their dealership’s Web site via Buick’s Web site and I found the actual sticker for their actual car. I thought that was pretty neat.

BTW, my folks love the car. My Mom loves the XM radio, and already has told Dad that they’ll need to renew their subscription. They have OnStar, too, but I guess they’ll keep AAA as they’ll need it for their other car.

State moves to introduce competition to auto insurance market

BOSTON - Car owners could gradually see more competition in the auto insurance market, under a plan unveiled Monday by the state insurance commissioner.
The transition to "managed competition" will continue to give the state strong regulatory control to protect consumers from excessive rates, but will also introduce more competition and create more choice and lower premiums, Insurance Commissioner Nonnie S. Burnes said.
Massachusetts in the only state where state regulators, not the market, set car insurance rates.
Consumers should be able to take advantage of the new competitive rates for policies renewing on or after April 1, 2008, Burnes said.
"Taking gradual steps to introduce competition to the auto insurance market will have a positive impact on consumers across Massachusetts," Burnes said.
In March, a panel appointed by Gov. Deval Patrick to study ways of reforming Massachusetts’ auto insurance system recommended curbing state regulation and moving toward competitive, market-based rates.
The state’s insurance rates have been going down in recent years because of decreasing claims, and a crack-down on auto insurance fraud.

BMW 6 Series Coupe and Convertible

The German automaker has revisited the interior by carefully updating the controls and instruments. The new cars benefit from new materials and colours, an iDrive Controller, rotary knobs for the air conditioning and audio system, door openers and a glove compartment push button in new high-quality material. The interior trim and upholstery are offered in new colour schemes, and leather upholstery boasts SunReflective Technology (in the BMW 6 Series Convertible) to reduce the heat effect of the sun.

Under the bonnet, a 4.8-litre eight-cylinder developing 270 kW/367 hp and offering enhanced efficiency is the top engine in the new BMW 650i Coupé and the new BMW 650i Convertible. There's a newly developed 3.0-litre straight-six with High Precision Injection in the lean-burn mode on the new BMW 630i Coupé and the new BMW 630i Convertible. Finally the first and only diesel-powered models in the segment, the BMW 635d Coupé and BMW 635d Convertible featuring a 3.0-litre straight-six diesel engine, make up the rest of the range.

As you might expect from BMW in this segment, the new 6 Series comes loaded with technology. The non-exhaustive list includes Adaptive Headlights and variable light distribution, Active Cruise Control incorporating an automatic brake application function, Active Cruise Control with stop & go function to maintain distances in flowing traffic and when driving dead slow, Lane Departure Warning with vibration signal on the steering wheel, Head-Up Display, BMW Night Vision and high-beam assistant, navigation system with full-word voice entry, and finally the BMW Individual High-End Audio System.

BMW 1 Series Coupé

The new BMW 1 Series Coupé goes on sale in the UK in November and will be available in 120d, 123d and 135i guises. The 135i marks the first time a twin-turbo petrol engine has powered a 1 Series, while the launch of the 123d heralds the introduction of the world's most powerful production four-cylinder diesel engine.

The flagship of the range is the BMW 135i with its 3.0-litre twin-turbocharged petrol powerplant. Offering 306hp from its light alloy and magnesium straight-six engine, the 135i is capable of accelerating from zero to 62mph in 5.3 seconds before going on to an electronically-limited top speed of 155mph. Peak torque of 400Nm from just 1,300rpm through to 5,000rpm ensures smooth yet rapid progress and in-gear flexibility.

The BMW 135i is joined in the range by another twin-turbocharged model to offer a unique blend of performance and economical motoring. The 204hp four-cylinder engine in the BMW 123d Coupé sets a benchmark for small diesels. Its 1,995cc powerplant is the world's first all aluminium diesel to have an output per litre figure in excess of 100hp - something only BMW M cars usually attain. It is also the first four-cylinder production diesel to come with twin-turbo technology.

The BMW 120d Coupé will be available in ES, SE and M Sport guises, while the 123d Coupé will be offered in SE and M Sport and the 135i Coupé just as an M Sport. M Sport raises the specification bar by including 17-inch light alloy wheels on the 120d and 123d Coupé but unique 18-inch light alloy wheels on the 135i Coupé, M Aerodynamic package, M Sports suspension, Sports seats, High-gloss Shadowline exterior trim, M leather steering wheel, M designation door sills and Anthracite headlining.

Prices for all three models will be announced closer to the on sale date.

Peugeot 308

With this aim in mind, particular attention has been paid to aerodynamics in order to improve the overall performance. As a result, the 308 has a low drag resistance (SCx 0.67 and Cx 0.29), resulting in a reduction in fuel consumption and CO2 emissions.

The 308 will be available with a choice of six lean burn engines, including three petrol engines, developed as part of the partnership with the BMW Group, and three HDi diesel engines, one of which will have an emission level of 120g CO2 per kilometre on the combined cycle.

In addition to the engine range available, the designers of the 308 have also used different solutions to improve environmental efficiency. Consequently, the 308 will have a manual gearbox with an electronic control system, electro-hydraulic power assisted steering and new Michelin Energy Saver tyres, to achieve a significant reduction in fuel consumption and therefore in exhaust emissions. Finally, the European End-of-Life Vehicles Directive has been taken into account in the choice of materials allowing the recycling or re-use of 99% of the 308.

The interior light levels have been improved even more thanks to the fitment of a glass panoramic roof which provides a total glazed area of 4.86 square metres. With this configuration the five door hatchback offers overhead natural light to all the passengers on board.

The 308 is equipped with technology aimed at providing the highest levels of safety. This includes, the Lane Departure Warning System (LDWS) for the benefit of primary safety, the airbags, which can number up to nine, for secondary safety, and finally, the Peugeot Emergency Service (emergency call) linked to the RT4 telematics system, for tertiary safety.

The 308 will be launched within a particularly short time frame, the day after the Frankfurt Motor Show, where it will have its world premiere. The new hatchback will be made at Sochaux, the historic home of Peugeot, and Mulhouse.

Light & Luxurious

Light & Luxurious
If Land Rover survives beyond Ford selling it, this might be its flagship
Land Rover is putting the finishing touches on the design and engineering of an all-new Range Rover, a milestone that marks the company’s next phase of new-model launches.

Scheduled for sale in 2012, the next Range Rover takes on the role of replacement for the vehicle that launched Ford’s Land Rover ownership in 2001. By the time a new Range Rover arrives, assuming one does, either as this all-new model or merely a refresh, Land Rover probably will be far removed from Ford ownership once again.

Regardless of who or what company is at the helm, any new Range Rover would be crucial, starting the replacement cycle for the next-generation Range Rover Sport, LR3, LR2 and Defender, plus possible additional models.

With this in mind, the future Range Rover will feature a development aimed at maintaining the flagship model as the world’s most luxurious 4x4 sport/utility vehicle: an aluminum unibody.

Although Ford has yet to give final approval, insiders expect the green light in the next few months to begin development of the aluminum body shell, using the same rivet-bonding technology proven on Jaguar’s XJ sedan. “We’re just waiting to hear go,” says one official.
Together with sharper styling, a superluxury interior, new engines, modified running gear and a possible hybrid powertrain, insiders are speculating that top-end models of the new Range Rover might even nudge into Bentley territory with a price the equivalent of $200,000 today. Of course, Ford’s “final approval” might be worthless if the Brit marque is sold and the buyer thinks a $200,000 Range Rover is not a good idea.

The underlying alloy structure, called Premium Lightweight Architecture, is expected to cut 40 percent of the weight of the Range Rover’s unpainted unibody, which should translate into a curb-weight savings of between 700 and 900 pounds. “We’re targeting the upper figure and are pretty hopeful of getting there,” says one source.

In effect, Land Rover is aiming for a curb weight of about 4800 to 5100 pounds, while keeping the Range Rover’s stately presence and roomy, luxurious cabin.

Besides having better fuel economy and less emissions, the lighter Range Rover should ride and handle better and steer with more agility.

Taking the sort of fuel savings that Jaguar has achieved with the XJ, it’s not unreasonable to imagine an aluminum Range Rover powered by a V8 gasoline engine averaging 22 mpg.

Clever details from the Jaguar’s rivet-bonded body, such as the bolt-on front end, which keeps repair costs down in the event of a front-end collision, are expected to be carried over to the Range Rover.

Land Rover engineers also know enough about the effects of off-road driving on aluminum to calm fears about durability. “When we’ve had problems before, it’s been where steel and alloy are joined together,” says a Land Rover source. “With an all-alloy structure, those problems go away.”

Fresh styling is another prominent feature of the new Range Rover project, codenamed L405. Land Rover design boss Gerry McGovern and his Gaydon-based team are working on distinct styling directions for Land Rover and Range Rover, tagged “premium adventure” for Land Rover and “premium sophistication” for Range Rover.

Two themes are being developed for the Range Rover, one more radical than the other. According to sources, the more conservative design is favored at the moment.

Land Rover has some time to work out the details. Even if final approval comes in early 2008, engineers will have more than three years to finalize the vehicle.

The main feature of the new design is a slightly more compact look with a lower roofline, a less top-heavy greenhouse and tighter front and rear overhangs. Attention to detail will shrink the car visually, while ensuring that it oozes luxury and retains road presence.

Running gear such as the front strut and multilink rear axle suspension will be improved rather than redesigned from the ground up.

Engines will be a mix of new and revamped units, co-developed with Jaguar. An all-new direct-injection 5.0-liter V8 is in the pipeline in two versions, with and without a supercharger. Expect power outputs of about 350 hp and 460 hp.

New diesels are coming, too. Land Rover’s 3.6-liter turbodiesel V8 will be stretched to 4.0 liters with a rise in power and torque. Expect a peak of about 300 hp and 520 lb-ft. The Jaguar/Land Rover 2.7-liter V6 turbodiesel also will increase in capacity to 3.0 liters. Land Rover is considering whether the 3.0-liter combined with the lighter-weight alloy might make an entry-level V6 diesel Range Rover a possibility.

Another tantalizing prospect is a hybrid powertrain that promises much lower emissions without giving up any of the Range Rover’s legendary utility and capability.

Mercedes-Benz C 63 AMG

Let's not muck about: the AMG badge is all about performance, and with a 6.3-litre V8 engine developing a peak output of 457 hp and a maximum torque of 600 Nm, this car will rocket from zero to 62 mph in 4.5 seconds. Top speed is electronically limited to 155 mph.

The new V8 flagship model is now the fifth generation of the AMG C-Class, whose family tree goes back to the C 36 AMG of 1993 - the very first vehicle developed as a cooperative venture between Daimler-Benz and AMG. Introduced in 2005, the V8 engine is installed in numerous AMG high-performance cars and excels with its thoroughbred motor sports technology.

Among the particular strengths of the AMG V8 engine are outstanding responsiveness and enormous pulling power - by virtue of its large displacement, it develops over 30 per cent more torque than comparable engines in this performance class. Electronically controlled fuel delivery is another reason for the outstanding agility and responsiveness to movements of the accelerator. With its sporty AMG sound, which was designed-in during a series of sophisticated trials, this eight-cylinder powerpack from Affalterbach offers the unique excitement of a fast-revving, naturally aspirated engine - an audible and immediate experience whether at low, medium or high engine speeds.

Like all AMG high-performance engines, the AMG 6.3-litre V8 is built in the AMG engine shop on the traditional "one man, one engine" principle. This means that one technician is responsible for hand-assembling a complete V8 engine to the highest quality standards - which is attested to by his signature on the AMG engine plate.

The performance theme is continued in the interior of the C 63 AMG, which now has special AMG sports seats with integral head restraints for the first time. The seats not only feature a new design with cross-piping and AMG lettering, but also an adaptive backrest with adjustments for the side bolsters and lumbar support.

source : www.new-car-net.co.uk

Creating a car for the future

Creating a car for the future
The story behind Nissan's new 2008 Rogue highlights the challenges - and pitfalls - of the auto business, says Fortune's Alex Taylor.
NEW YORK (Fortune) -- Way back in 2002 - before the war in Iraq, the collapse of the dollar, or $3-a-gallon gasoline - Nissan started thinking about what kind of cars it would sell in the 2008 model year. One of the results is the Rogue, which will arrive in showrooms this fall. The way Nissan went about conceiving the Rogue reveals the complexities of predicting what customers will want to buy five years into the future - and the risk of betting hundreds of millions of dollars on the outcome.

Getting the answer right is especially important to Nissan right now. Its much-lauded turnaround under CEO Carlos Ghosn has run out of steam and it is in danger of sinking into the second tier of Japanese auto companies, behind Toyota (Charts) and Honda (Charts).
Even scarier, Nissan has guessed wrong in the past. A couple of years ago, it tried to figure out away to attract new buyers to the homely minivan and came up with the concept of the Sexy Mom. Trouble is, the 2004 Quest minivan designed for Sexy Mom substituted fashion for functionality, and flopped in the marketplace. Nissan was forced to de-glamorize the Quest so it could begin to attract more traditional Soccer Moms.

The Quest experience didn't stop Nissan's California-based Global Exploratory Group from trying again five years ago to predict the future. Starting in 2002, the group started with the obligatory clean sheet of paper to figure out how to fill a gap in Nissan's product lineup.

What it came up with was the concept of an entry-level car for members of Generation X, those people born between 1965 and 1978, who were about to get married and start a family.

The first step was figuring out who these buyers were and what they were like. After some research, the group decided that members of Generation X were "the latch key generation." They grew up feeling "unprotected and insecure," and, Nissan concluded, this experience would shape their expectations for their new families and define how they approach parenting.

What did these latch-key kids want in a vehicle? Nissan figured they desired "safety and practicality" but didn't want to advertise their family status. Translation: no minivans allowed.

No traditional SUVs either. These buyers were turned off by heavy body-on-frame designs like the Ford (Charts, Fortune 500) Explorer . They didn't see the need of buying a two-ton vehicle with four-wheel drive for a trip to Whole Foods or Starbucks.

When the generational analysis was completed, the Global Exploratory Group turned its findings over to Nissan's product planning group to develop a concept - sedan, tall wagon or box on wheels - to fit the perceived needs, and to Nissan's designers to create a look.

The group wanted something that would combine style as well as utility. It figured male Gen X'ers would already be driving compact pickups or motorcycles and their wives would be sedan owners. With children on the way or already arrived, these buyers needed something with a tailgate and storage capacity that still exuded individuality.

Nissan's biggest competition was Toyota's RAV-4 and Honda's CRV. But Nissan thought both vehicles were too clunky-looking. So it came up with a design to set its vehicle apart, with an aggressive front end, bulging rear fenders, and prominent 17" wheels. The marketing department picked the name "Rogue" to reflect the rebelliousness of the target buyers.

The automotive media got to see the Rogue for the first time in January at the Detroit auto show. Surrounded by glitzier vehicles, it was overshadowed. Still, Nissan believes that it has targeted the right market - and done it correctly.

When it arrives this fall, the Rogue will be crammed with features designed around the theme of "planned spontaneity." They're aimed at an imaginary guy who drops his kids off at school, and then runs to the shore or the mountains for a joy ride before heading to the office. There's a convenient storage container with a pop-up lid, remote door-unlocking and engine start, and a Bluetooth hands-free phone system.

Prices for the Rogue will start under $20,000. Whether Nissan has another CRV on its hands - or another Quest - will probably be known by Christmas. The members of the Global Exploratory Group aren't holding their breath. They are already looking at what Nissan should be doing in 2012.

source : money.cnn.com

Auto companies in a rush| Murad Ali Baig

New Delhi: It is not just the monsoons. Auto companies are flooding the Indian market at such a dizzy speed that buyers are thoroughly confused. Unlike the bad old days of ‘Licence Raj’ where the scenario was confined to being a two-car race, buyers today can choose between 40 different models that offer nearly 200 options in petrol and diesel engines and trim levels.
India has clearly become the flavour of the year among auto companies. Although China is a bigger and faster growing market, the 22% growth profile of the Indian car market in 2006-07 is impressive enough for foreign companies to prefer doing their business in India where language, food and living is relatively easier.
While Maruti, or rather Suzuki, still rules the roost with half the passenger car market, their command has been in the small car segment and their stable of seven cars and four utility vehicles has not given them a real bite in the growing market of bigger cars. Till the peppy new SX4 was launched recently to offer a car that was a little bigger than it’s `C’ Segment (4 to 4.5 metre long) competitors and almost as big as the smallest car in the `D’ Segment (4.5 to 4.75m).
India’s second largest company, Hyundai also has a successful small Santro. They have similarly added their spacious and powerful new Verna with a similar objective, hoping to gradually replace their ageing Accent.
Close behind them is Tata Motors who are firmly lodged in the Indian space with their well priced models based on a 1405 cc, which is predominantly diesel engine. They have now allied with the ailing Fiat Company in India to set up a new plant near them in Pune to first make the petrol Palio and later larger models from Fiat’s stable.
Mahindra and Mahindra, who dominate India’s utility vehicles segment, have been making vigorous efforts to get into passenger cars. Their Scorpio may be a spacious and comfortable vehicle but it is not a car. Which is where their recently launched Logan, a product of their new alliance with France’s biggest carmaker Renault, hopes to plug the gap.
Japan’s Honda has done well too with their Honda City and Accord as also their new Civic that is positioned in between these two models. But they have no footprint in the smaller hatchback segment that still commands over 75% of the Indian market. They will soon dip into their arsenal and offer either a smaller `hatch’ version of the City or a completely new small car… or perhaps both,to be represented in all segments.
Their main global rival, and Japan’s largest automaker, Toyota commands the personal utility vehicles with their successful Innova though it has a tiny presence with the Corolla and imported Camry. They too are planning to set up a new plant to make a small car perhaps adapted from the stables of their subsidiary company Daihatsu which specializes in small cars.
Japan’s second largest car company Nissan has been a late starter and has only had a few imports like the XTrail SUV and the luxurious Tienna that competes with the Accord or Camry. As they have an alliance with Renault, the further link with Mahindras means that all three will be making small cars in a new plant in Tamil Nadu, to be sold under their various names.
Europe is the main technology base of smaller cars from GM and Ford although GM now sources most of its products from their newly acquired Daewoo plants in Korea from where we have their spacious Optra, the smaller Aveo and their new small Spark that evolved from the Daewoo Matiz.
The U-VA is a shortened hatchback version of the Aveo, positioned just above the Spark. Ford made India its base for a brand new Ikon platform and is doing the same for the slightly bigger Fiesta models that includes a semi sports Fusion. But we can expect a smaller and cheaper variant of a hatchback Fiesta to widen its footprint.
The Skoda Octavia has also been a success story among bigger cars despite the fact that few buyers associated it with its parent company Volkswagen. Now VW that owns Audi, is in the process of setting up a new plant in Maharashtra. Car sale estimates for the months of March-April in India give a more micro picture.
The Luxury car segment, dominated by German brands, is attracting attention since this segment is growing too. If India has a fast growing number of ‘dollar millionaires’, who were recently estimated at 100,000, there is ample scope for these models to thrive.
Mercedes Benz had been the first having sold over 2,000 cars last year. Now BMW has set up a plant and Audi is set to follow suit. Local assembly brings down costs of base models, in addition to selling fully imported top models. Among imports are exotic cars from Porsche, Lamborghini, Ferrari and others.
Despite the growth and opportunity, competition has been so fierce that car prices have not really risen much over the past five years. But with estimates pointing that India will have a domestic demand of roughly 1.5 million personal cars and utility vehicles in 2007-08, it is not surprising to find all auto majors wanting a chunk of that pie.

source : www.livemint.com

Driver's license law hits auto dealers

Jose Genao sells used cars for a living, but lately he's had to turn away customers from his Smyrna dealership.

Genao used to sell about 15 vehicles a week, mostly Ford F-150 or Silverado pickups to a Mexican clientele. Now he sells only two or three.
Half a dozen customers have returned cars because they can't register them.

"They bring the key and tell me, 'Jose, I'm leaving,' " Genao said.

Genao is feeling the fallout from a new state law, effective July 1, that requires a valid Georgia driver's license or ID card to register a car in Georgia.

The law is cutting deep into traffic for many auto dealers and tag and title services catering to the state's growing immigrant community. Illegal immigrants can't get driver's licenses because to do so, they must prove they're in the country legally.

The law also has the potential to cut into sales taxes and county ad valorem tax revenues, though metro area counties say it's too early to measure that effect.

The bill's sponsor, Sen. Chip Rogers (R-Woodstock) said he did not target immigrants.

"Yes, this will impact people who are here illegally, but my biggest focus is public safety," he said.

"If [car dealers and tag services] have built their business on people who are here illegally, I'm sorry, but at some point they had to realize that was not going to continue," Rogers said.

The license plate law closes a window that gave motorists 30 days to get Georgia driver's licenses after moving to the state. In the interim, a driver could register a car with an out-of-state or international license.

Also effective July 1 was a separate, 2006 law requiring increased verification of legal status in Georgia for a variety of other purposes, including to work in some jobs or qualify for welfare.

While no one knows how many illegal immigrants are in Georgia, a government estimate put the number around 470,000. Nationally, most illegal immigrants are from Mexico, followed by El Salvador, Guatemala, India and China, according to a 2005 Department of Homeland Security report.

Genao, 34, has a green card and has lived in the United States eight years. If business doesn't pick up, he might return to his native Dominican Republic to tend to a car dealership there.

"If they don't do something, a lot of businesses are going to close," he said.

Tony Brooks, an insurance agent who caters to the Hispanic community in Marietta, said business for his tag and title service has dropped off about 80 percent since the law went into effect.

"It's definitely slowing things down, that's for sure," Brooks said.

He's had to turn away 30 to 40 people wanting tags in the last two weeks because they don't have Georgia driver's licenses.

His main business is auto insurance, which hasn't suffered, but he's worried immigrant customers won't buy insurance either if they can't register their cars.

Cobb County's tag offices have seen a "significant decrease" in the volume of applications submitted by tag and title services in the last two weeks, said Stewart Manley, manager of Cobb County's tag offices.

The county has also turned away about 40 people per day, Manley said, out of an average 1,900 customers served daily. Some are people who have moved from other states and don't have Georgia driver's licenses yet, Manley said. "They're complaining mildly," he said.

Tax collectors in Cobb, Gwinnett and DeKalb said it is too early to tell how the new license plate law would affect tax collection.

"You really won't see the effect economically for six months," said Brent Bennett, director of vehicle registrations for DeKalb County.

Loopholes exist even with the new law.

An illegal immigrant can still mail in a tag renewal or go online and avoid the need to show a driver's license.

That's what Raul Hernandez plans to do. He is an illegal immigrant from Mexico who came here legally but overstayed his visa and so has a Georgia driver's license. He doesn't have to worry about the tag problem, but his friends do.

"People have asked me to get tags for them in my name. Right now I said 'No, it's not worth the risk. If they get tickets, they'll be sent to me,' " he said in Spanish.

"Right now people are scared, but it will settle down and go back to normal," Hernandez predicted.

Isaias Zavala, 33, an illegal immigrant from Mexico who works construction, said he has no license but his wife does, so he registers their car through her. Still, he worries because he has to drive to work.

"This all seems very bad to me," he said in Spanish of the new law.

Perimeter Insurance Agency used to process 25 tags per week in one Cobb County location. Since July 1, they've done only three renewals, said Jose Mendez, part owner of the business.

His co-owner, Rick Craddock, said he appreciates his immigrant customers.

"We love these people," Craddock said.

But he acknowledges there is a problem with illegal immigration. "We have to secure the border and slow the influx," he said. "The solution is not to kick out all the people who are already here."

source : www.ajc.com

Labor pledges to review car import tariffs

A Labor government will review plans to cut car import tariffs as part of a plan to save Australia's ailing auto industry amid reports that hundreds of Ford jobs are under threat.

Up to 600 jobs are under threat as the car maker considers closing its V6 engine plant at Geelong because of decreasing demand for larger cars.

Labor's treasury spokesman Wayne Swan today called on the government to step in to help save the Ford jobs, and indicated a Labor government would be prepared to review the scheduled tariff reduction.

A 10 per cent tariff currently applies to car imports, but the federal government is reducing this to five per cent by 2010.

"We're not making a commitment to stop that reduction in tariffs, but we are happy to sit down and talk with the industry about all of the issues that are challenging them at the moment," Mr Swan told the Nine Network.

"We are certainly prepared to discuss that with the industry, but in the context of a wider plan and a longer term plan for the industry."

Federal Industry Minister Ian Macfarlane has ruled out reviewing tariff cuts on vehicle imports.

"The reality is that by lowering tariffs and providing the industry with $7.3 billion worth of assistance, we have allowed that industry to become internationally competitive," he told ABC Radio yesterday.

Ford yesterday said no decision had yet been made on whether to close the engine plant but the company was looking at changes across its business as the popularity of large cars dipped.

"I think the government needs to sit down with a matter of urgency with Ford and work their way through that problem," Mr Swan said today.

"There's no doubt that the motor industry faces very considerable challenges; globalisation is impacting in a way on the motor industry that's got particular challenges for domestic companies.

"There is no instant solution here but in the past we have worked successfully with the car companies to meet that threat and I think we are going to have to do it again."

source : www.theage.com.au

Labor calls for Aust car industry review

Speculation that Ford might shed 600 jobs from its engine factory in Geelong has again focused attention on the sorry state of Australia's car industry. Labor is calling for the Government to rethink its plans to drop some of its support for the industry but an observer says the industry needs less mollycoddling, not more.

Australian car makers are struggling to stay afloat, even though they survive behind a tariff wall that adds 10 per cent to the cost of foreign cars and enjoy billions of dollars in tax breaks and government subsidies.

Profits and local market share are falling, a higher dollar is making exports more expensive and big cars are hard to sell in a market hungry for smaller, greener models.

At stake are the 81,000 jobs directly tied up in the car and component industry, as well as perhaps 400,000 more that feed off the industry.

Car making is vital to the economies of Victoria and South Australia. The stakes are so high that governments, particularly the Federal Government, provide massive support through the 10 per cent tariff wall and as Industry Minister Ian Macfarlane points out, billions of dollars in tax relief and handouts.

"By lowering tariffs and providing the industry with $7.3 billion worth of assistance, we've allowed that industry to become internationally competitive, which in the long term will be the difference between the industry surviving and not surviving," he said.

Mr Macfarlane says the Federal Government's assistance has developed a Camry or a rear-wheel drive GMH that can be sold anywhere in the world.

"The money that we provided last year to Ford as extra assistance is specifically targeted at developing a left-hand drive vehicle along with the fact that, of course, right-hand drive vehicles can be exported as well," he said.

Inquiry pledged

But Labor industry spokesman Senator Kim Carr says it is time to recast the Government's plan to lower the tariff barrier from 10 to 5 per cent by 2010.

"What we're saying is upon that election, we will immediately establish an inquiry into all aspects affecting competitiveness of the industry," he said.

"This is something that the Government should do right now but the Government has refused to do.

"We had a parliamentary inquiry last year that on a bipartisan basis said it was time to have a look at restructuring the assistance packages.

"This Government has sat on its hands and has assumed that things that worked in the past are going to work in the future. The world is a very different place.

"The Government has already legislated for tariff reductions and the Government has said that there's no need for change. We're saying that there is a need for change and to look at the full package."

'Mollycoddling'

Institute of Public Affairs work reform unit director Ken Phillips believes that the Australian car industry has a future but what it needs is less support, not more.

"If an industry is going to survive, it survives because it's got its act together and it's not relying on government to get its act together," he said.

Mr Phillips says the future of the car industry lies within niche markets.

"China and India are just throwing all concepts of manufacturing, of business, throwing everything of the last 100 years out the door and putting it into a different scale. All we need to do in the manufacturing area is to discover niche markets," he said.

"With the scale of the markets overseas, the niche market, any niche market that you can pick is larger than the entire Australian market.

"So the future for the car sector is discovering, like everyone else, those niche markets.

"I'm not underestimating the scale of the problems they've got at the moment but if you look out into the future, there's no reason why the industry shouldn't have a long-term viable future."

source : abc.net.au

No review of car tariff cuts - Macfarlane

INDUSTRY Minister Ian Macfarlane has ruled out reviewing tariff cuts on vehicle imports, despite reports Ford plans to stop building the Falcon six-cylinder engine at its Victorian plant.
Up to 600 jobs could be lost under Ford's plan to import V6 engines which will comply with new Euro IV exhaust emissions laws to be phased in during the next three years, Fairfax reported today.

There is a 10 per cent tariff on car imports, but the federal government is reducing this to five per cent by 2010.

Mr Macfarlane today said now was not the time to resort to protectionist policies.

"No, we certainly shouldn't be doing anything that would make the industry think that we're moving away from ensuring that Australia produces a world-competitive car,'' he said.

"If we left our tariffs at 40 to 50 per cent there's no way we'd be exporting over 100,000 vehicles a year.

"The reality is that by lowering tariffs and providing the industry with $7.3 billion worth of assistance, we've allowed that industry to become internationally competitive which, in the long term, will be the difference between the industry surviving and not surviving.''

He insisted there was a future for Australian car manufacturing and rejected suggestions that hefty government assistance demonstrated the industry was not viable.

"It's not doomed,'' Mr Macfarlane said.

"What we're seeing in Australia is a growing reliance on export markets.

"That's always going to be the future for Australia's industry.

"If it's going to grow, if it's going to compete with imports it not only has to produce a world-class car at a world-class price but it also needs to export that vehicle into other markets.''

He distanced the government from Ford's plans, saying any decision on job cuts at the manufacturer's Geelong plant would be a decision for the company to make in consultation with its workforce.

"There are emission changes that come into effect for Ford in 2010 and on that basis they're obviously considering various options,'' he said.

"But other than that it's a decision for Ford and they'll make those decisions in consultation with their workers at the appropriate time.''

Ford has been making six-cylinder engines such as the Falcon's in Geelong since 1926.

source : www.theaustralian.news.com.au