Entries in Automotive Industry (59)
GM, Ford, Chrysler Credit Ratings May Be Cut
General Motors Corp., Ford Motor Co. and Chrysler LLC credit ratings may be lowered by Standard & Poor's as higher gas prices inflict "financial damage'' on the auto industry. A downgrade by Goldman Sachs brought shares of General Motors Corp. to their lowest level since December 1974.
A weakening economy and soaring fuel prices are dragging U.S. auto sales to their lowest levels in 15 years.
Ford, the second-biggest U.S. automaker behind GM, said today its losses will widen because sales of its large pickup trucks in the U.S. are plunging on $4-a-gallon gasoline - and it's financing unit, Ford Motor Credit, will also have a loss.
Sources:
Bloomberg
U.S. Carmakers Are Flat-Out Hurting
Automakers hopeful for new CO2 limit deadline
GENEVA (Reuters) - Car makers are becoming more optimistic that European authorities will grant them more time to meet proposed limits on carbon dioxide (CO2) emissions from their vehicles -- a major point of contention between them.
As part of an effort to cut emissions linked to global warming, the European Commission has drafted tough legislation to reduce CO2 emissions from cars, with steep fines on manufacturers that fail to comply.
India's Tata In Global Conquest
Most Americans had never heard of Tata Motors until their announcement of an acquisition with Ford Motor Company, and the $2,500 car, but Tata is becoming known for bold and often surprising acquisitions.Indian company Tata Motors gained a lot of attention with the Nano, a four-seater minicar with a top speed of 65 miles per hour, and selling for about $2,500 when it hits the home market later this year. And Tata Motors is expected to soon acquire Ford Motor Co.'s luxury Jaguar and Land Rover brands.
In February, chemicals and fertilizers company Tata Chemicals acquired New Jersey-based soda ash producer General Chemical Industrial Products for $1 billion. The acquisition will consolidate Tata Chemicals' position as the world's second-largest producer of soda ash, a commodity used to make glass and detergents, while expanding its global footprint.
The nearly 100 companies to fall under the Tata Group umbrella raked in $28.8 billion in revenue in the financial year ended March 31. Its 27 listed companies, including Tata Motors, Tata Steel and Tata Consultancy Services, had a market value of more than $65 billion.
Read full article at CNN Money
Previous postings on Tata
Ford Selling Jaguar Land Rover to Indian Company
General Motors Derailed Public Transportation
How General Motors Derailed Public Transportation to Sell More CarsA reader asked this question at EarthTalk - Did the car companies really conspire to kill the trolleys and streetcars of bygone days to force us to become dependent on automobiles instead?
Indeed, in the 1920s automaker General Motors (GM) began a covert campaign to undermine the popular rail-based public transit systems that were ubiquitous in and around the country’s bustling urban areas. At the time, only one in 10 Americans owned cars and most people traveled by trolley and streetcar.
Within three decades, GM, with help from Standard Oil, Firestone Tire, Mack Truck and Phillips Petroleum, succeeded in decimating the nation’s trolley systems, while seeing to the creation of the federal highway system and the ensuing dominance of the automobile as America’s preferred mode of transport.
Read Complete Article: http://environment.about.com/od/fossilfuels/a/streetcars.htm
New Car Runs on Compressed Air
French engineer Guy Negre has designed a car that runs on compressed air, produces no emissions on short trips, and can be refueled in three minutes flat.
Called the OneCAT (CAT stands for compressed air technology), the new compressed-air powered car is a lightweight five-seat vehicle that is expected to sell for about $5,000 when it hits the market.
With the backing of Tata Motors, which just last month introduced the world’s cheapest car—the $2,500 Tata Nano subcompact—Negre plans to start selling the first models in India within a year.
Red full article at Larry's Environmental Issues Blog
http://environment.about.com/b/2008/02/14/new-car-runs-on-compressed-air.htm
Tri-Fuel Engine Research Underway
Flexible-fuel vehicles (FFVs) may soon be more flexible, thanks to research at U.K. based group Lotus Engineering.
Researchers at the company’s headquarters in England, are converting a Lotus Exige to run on gasoline, ethanol and methanol, according to Tim Holland, director of motor sports initiatives. He said the company’s U.S. office in Michigan is likely to follow suit this year.
The conversion is on the heels of the company’s similar work by both offices to convert a Lotus Exige to an Flexible fuel vehicle (FFV).
The standard Exige has a supercharged 1.8-liter, 4-cylinder Toyota engine that has been fitted to the sports car body. “The addition of ethanol was part of a joint research and development promotional project to show that an alternative fuel vehicle doesn’t have to be boring,” Holland said.
Read full article
Ford Adds Expedition, E-series vans and Lincoln Navigator to E-85 Line Up
Ford Motor Company announced today it is adding three additional vehicles to its E-85 flexible fuel vehicle (FFV) line-up for the 2009 model year -- Ford Expedition and Lincoln Navigator full size sports utility vehicles and Ford E-Series full size van and wagon.
These latest entrants are yet another example of Ford’s aggressive plan to bring more products that customers want and need to market faster.
The Ford E-Series will be the first over 8,500 lb. full size van to provide E-85 capability and also the first full size van to offer two V-8 engine alternatives with E-85 capability – a 4.6-liter and a 5.4-liter. Redesigned last year to provide even greater functionality, the E-85 E-Series demonstrates Ford's commitment to delivering customer focused features that have made it America's best-selling full size van for 28 years.
The Expedition and Navigator are also popular with customers due to their passenger and cargo space, towing capabilities, on- and off-road performance and safety features such as AdvanceTrac® with RSC® and five-star safety ratings from the National Highway Traffic and Safety Administration.
The Expedition, Expedition EL, Navigator and Navigator L will be available with the 5.4-liter flexible fuel engine.
The addition of the Expedition, Navigator and E-Series to Ford’s flexible fuel line-up now brings the total to seven. The other models include Ford F-150 and Crown Victoria, Lincoln Town Car and Mercury Grand Marquis. Beginning with the 2008 model year, Ford began offering the Crown Victoria Police Interceptor and taxi with E-85 capability.
Customers can begin placing orders for the Expedition, Navigator and E-Series in May 2008 with vehicle production slated to begin in July 2008.
Last year, Ford achieved 50-state certification for all of the Ford, Lincoln and Mercury 2008 flexible fuel passenger car models. Achieving 50-state certification means Ford's flexible fuel vehicles meet both emissions rules set by the Federal government, as well as California. The evaporative standards in California create some unique challenges for FFVs.
By certifying to both standards, automakers can sell their vehicles nationwide and reduce complexity.
Ford has placed more than two million flexible fuel vehicles on the road, and has pledged to make half of its production capable of running on alternative fuels by 2012, provided the necessary fuel and infrastructure are in place.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 250,000 employees and about 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company.
For more information regarding Ford’s products, please visit www.ford.com.
Source: World Wire
Ford Selling Jaguar & Land Rover to Indian Company
Ford is selling off Jaguar and Land Rover units to an Indian car maker who plans to unveil a $2,500 car next week - that's right $2,500! A car you could purchase with your credit card, or a quick cash deal. Oh well, the deals not done yet, but Tata is pretty much got it in the bag. Taking on one of the world's luxury brand cars one week, and announcing the world's cheapest car the next week. You can't make this stuff up - Read on . . . CT
An Indian car maker that will unveil the world's cheapest car next week may soon produce two of the world's premiere brands as well. Tata plans to unveil its ultra cheap $2,500 car next week at an auto show in New Delhi.
Ford Motor Co. has announced Tata Motors Ltd. as the top preferred bidder for its Jaguar and Land Rover brands.
Ford executives have said they expect sell the two British auto makers early this year, and Jaguar and Land Rover employees in the UK were told about the negotiations Thursday morning shortly before the announcement was made.
Ford spokesmen in London would not say how much Tata bid for the auto makers, nor would he say if two other bidders, Indian auto maker Mahindra & Mahindra Ltd. and U.S. private equity firm One Equity Partners LLC, still were in the running.
Last month people close to the negotiations with Ford told the AP that potential suitors had submitted bids for both companies that ranged from $1.5 billion to $2 billion.
Tata company execs said in a recent interview that acquiring Jaguar and Land Rover would help bring global visibility to his group - which is a sprawling conglomerate that makes everything from automobiles to steel and software, and a name that until recently was little-known outside India.
Tata Steel made headlines in January when it acquired Anglo-Dutch steelmaker Corus Group PLC for $12.1 billion by outbidding rivals. The deal, India's biggest foreign acquisition, put Tata at the forefront of India's global reach.
Ford is obviously "cash hungry", and the company lost $12.6 billion in 2006 but earned $88 million in the first nine months of 2007. Ford mortgaged assets to continue its operations, and expects to burn up $12 billion to $14 billion until 2009, when it plans to return to sustained profitability.
Ford bought Jaguar for $2.5 billion back in 1989 and Land Rover for $2.7 billion in 2000, joining them with Aston Martin and Volvo to form its Premier Automotive Group. Earlier this year Ford completed the sale of its controlling stake in Aston Martin for $931 million in cash and preferred stock. Ford has said it plans to keep Volvo for now, fixing its cost structure and making it a more premium brand.
Ford is still interested in maintaining its parts supply relationship with the new owners of Jaguar and Land Rover since the company builds engines for Jaguar in Europe.
Industry analysts have said Ford wants to find a buyer who would preserve the Jaguar and Land Rover heritage and jobs in the U.K.
Ford, which is the top auto seller in the U.K., and doesn't want to anger their British customers.
Alternatives Fuels Developing too Slow Says Ford Chairman
As a Ford retiree, I was interested in the latest news from the chairman . . . CT
William Clay Ford Jr., Chairman of Ford Motor Company, expressed his frustration at the slow pace of alternative fuel development, and stated that industry leaders expected more progress by now.
Ford also expressed concern about congestion in cities around the globe, saying it could be as big a problem as air pollution. He also agrees with critics that alternative fuel needs to be from other sources other than corn based ethanol, and the shift to cellulosic ethanol has been far too slow.
Ford went on to say that if alternative fuels are harder to come by, the cost will be prohibitive to many drivers, who will opt for cheaper gasoline.
With government efforts in places like South Africa, India, and other parts of Europe to persuade people to use public transportation, bikes and mopeds instead of automobiles, Ford says he believes the American idea of individual car ownership may be different as we know it today.
Ford Motor Company, as well as other Detroit auto companies have emphasized flexible-fuel vehicles, which can run on fuels other than gasoline, and has made a pledge that half of the vehicles it produces can be flexible fuel if those fuels are available by 2012.
Cars Powered By Hydrogen
Researchers at Japanese carmaker Mazda think cars will in the future will run on a water component - hydrogen.
"We have to prepare for sustainable zoom-zoom," Mazda executive Nobuhiro Hayama said on Monday. Mazda uses the term zoom-zoom in its marketing for fun driving, or "the exhilaration and liberation that come from experiencing sheer motion."
I read another article relating to hydrogen fuel at ENN which states that bacteria that feed on vinegar and waste water zapped with a shot of electricity could produce a clean hydrogen fuel to power vehicles that now run on petroleum, researchers reported on Monday.
The bacteria does most of the work - breaking the organic material into subatomic particles, so all the electricity does is juice these particles to form hydrogen. These cells are too large to be put into cars, so the gaseous hydrogen fuel they produce must be made in a factory.
Although it sounds futuristic, microbial fuel cell technology is available now. The researchers have filed for a patent on this work.
Electric Cars Hit the Streets in Brazil

Several Brazilian companies are testing the Palio Elétrico car, a battery-run version from the Italian manufacturer Fiat.
In Brazil, auto manufacturer Fiat is a pioneer "not only in technology", but also in working alongside the transit authorities "to test and note problems in the legislation and in the tax system," stated Antonio Nunes, president of the Brazilian Electric Vehicle Association.
The Palio Elétrico is the product of a partnership between Fiat, the ItaipĂș hydroelectric dam, other electricity companies, and technology centers in Brazil, Paraguay and Switzerland.
The car can run approximately 75 miles, and reach a speed of 68 miles per hour.
These and other innovations in trucks, buses and motorcycles were the subject of the 5th Electric Vehicle Seminar and Show, that was held Oct. 25-26 in Rio de Janeiro.
Source: Tierramerica
U.S. Execs Desert Toyota for Chrysler and Ford
In just the last three months, three senior executives in Toyota's North American business abruptly left for rivals. The high-profile defections underline a new danger looming for the Japanese automaker -- the lure of U.S. companies wooing the best in its ranks.
Having its top talent poached by rivals would have been unimaginable for Toyota even a decade ago, when the Japanese automakers were still playing catch-up with U.S. companies.
Now, Japan's traditions of lifetime employment and employee loyalty are growing obsolete as globalization introduces new career issues - the rewards of bigger money and the lack of promotion opportunities for outsiders.
The most stunning job hop came from Jim Press, 61, the former head of Toyota's North American operations, who left in September to become president and vice chairman of Chrysler LLC. His promotion as the first non-Japanese board member at Toyota had just been approved with a lot of fanfare just three months earlier.
Add to that more defections of a VP & GM of the Lexus division who took a higher paying job at Ford, and another head of Toyota North American operations left for a higher paying position at Chrysler.
View the full article at Business Week
Toyota sees global pain as US execs exit
Chrysler Cuts 12,000 Jobs
Even though it has been less than a week after Chrysler workers - via the UAW - ratified a four-year contract with the company, Chrysler has announced it will cut up to 12,000 jobs, which is approximately 15% of its workforce.

Chrysler officials said falling demand for vehicles in the U.S. market made the cuts necessary. Chrysler’s sales were down 3 percent in the first nine months of this year, according to Autodata Corp., and the company said it expects sluggish sales to continue in 2008.
As part of the new plan, shifts will be cut at vehicle assembly plants in Belvidere, Ill.; Toledo, Ohio; Brampton, Ontario; Jefferson North in Detroit and a plant in Sterling Heights. Also, jobs will be cut at the company’s Mack Avenue engine plant.
Chrysler also announced it will eliminate four auto models through 2008, including the Dodge Magnum wagon, the convertible version of the Chrysler PT Cruiser - shown above, the Chrysler Pacifica crossover and the Chrysler Crossfire sports car.
In the same time frame, Chrysler plans to add the Dodge Journey crossover and Dodge Challenger sports car, along with two new hybrid models, the Chrysler Aspen and Dodge Durango.
Source: MSNBC
Tokyo Motor Show 2005: Alternative Fuel Concepts
Automakers around the world are showing their interest in creating cars with low to zero tailpipe emissions through concept cars.

Toyota and Honda led the way in production hybrids, and other companies are seeing the advantages.
Many of the concepts at the Tokyo Motor Show use hybrid power trains, while quite a few others advance research into hydrogen as a fuel, either through fuel cells or combustion.
Chrysler To Offer Alternative Fuel Version on Every Model
Chrysler LLC's new top product strategist said today that the auto maker plans to eventually introduce alternative-fuel versions of every model it makes.
James Press, the Chrysler vice chairman recruited last month from Toyota Motor Corp., told The Detroit News today that Chrysler "absolutely" expects to provide a hybrid, diesel or other environmentally-friendly version of each of its cars and trucks."
Read full article at The Detroit News
Biodiesel Hummer
Just when you think you've heard just about everything . . . CT
Jonathan Goodwin's career is a combination of vehicle fanatic and environmentalist.
He recently opened H-Line Conversions - a custom diesel engine conversion business that converts Hummer engines to use alternative fuels.
Goodwin said he has converted more than 60 H2 Hummers from gas to diesel and 100 H1 Hummers, including one that will burn hydrogen, natural gas, ethanol, biodiesel and vegetable oil.
He said the conversion increases a Hummer's mileage from 10 to 24 miles a gallon and doubles the horsepower from 325 to 650.
Hybrid Vehicle Interest Down in 2007
Interest in hybrid (gas/electric) vehicles is down this year according to a US national survey by J.D. Powers.
The survey is quoted in a CNN.com article that reports the decline in interest among new car buyers amounts to 7% from last year to 2007, still 50% of buyers are considering hybrid vehicles.
Battery Recharge Breakthrough, BioEthanol is Everywhere Even in Biodiesel plants, Biofuels for Jets - Read full article at American Chronicle
U.S. Cheap Market for Europeans Automakers?
According to Automotive News, European automakers are looking to the U.S. for low cost manufacturing.
Whoever thought the U.S. would become a low cost manufacturing haven for European automakers and suppliers?
European automakers are currently faced with four issues (1) raise prices (2) move production to cheaper countries (3) become more efficient, (4) or become content with less profits.
European manufacturers BMW and Mercedes are moving production to their Spartanburg, South Carolina and Tuscaloosa, Alabama.
VW is considering an American plant, but will continue with its Mexican operations. Audi just sells 10% of it's European product in the U.S., and has been able to find cheaper manufacturing and supplies in China.
Magna, a Canadian supplier and manufacturer is also looking to build a factory in the U.S.
All this is happening because of the strong euro and the weak U.S. dollar - so it makes economical sense for foreign companies to move out of the higher priced market to the so called "cheap" U.S. market.
Meanwhile the UAW president told Ford and General Motors that its members are in no mood to make concessions.
As this all plays out, it would be interesting if foreign automakers ended up employing more Americans than the U.S. auto companies. The big edge the foreign companies have is they don't have to deal with the unions - which means less pay and benefits for employees.
US Automakers Global News
General Motors Invests in South America
General Motors Corp. plans to invest $500 million during the next three years in Brazil and Argentina to develop small vehicles for emerging markets in South America and elsewhere - and the vehicles will be sold primarily in Latin America.
GM is trying to step up gains outside the U.S. as Toyota Motor Corp. challenges the Detroit-based company's 76-year reign as the annual global sales leader.
The automaker said in a statement that it will add an engineering building and new equipment in Sao Caetano do Sul, in Brazil just south of Sao Paulo, and upgrade plants in Sao Caetano do Sul and Rosario, Argentina. Source: Bloomberg.com
Ford to Cut Australia Jobs
Ford Motor Co.'s Australian unit said it will stop making engines in Victoria state from 2010, resulting in a staff reduction of about 30% of its work force at the factory.
The auto maker will stop manufacturing six-cylinder engines at its 82-year-old engine plant southwest of Melbourne, and will replace them with imported V6 engines.
Ford is winding down the plant and cutting some 600 jobs because of a slump in big-car sales as Australian consumers shift to smaller, imported cars in the face of rising gas prices.
Source: Wall Street Journal
Biofuel Powered Car Breaks World Speed Record
"Going green does not have to mean going slow"

220.7 MPH is the new world record for a street car in the standing mile, achieved by the E85 Viper owned by Karl Jacob.
The record proves power and performance do not have to be sacrificed for environmental responsibility. The 1200 horsepower E85 Viper rocketed from a standstill to 220.7 MPH in one mile, taking 27.41 seconds at the Oscoda- Wurtsmith Airport in Oscoda, Mich.
Read full article at automotoportal blog

