Range Rover sheds pounds, aims to gain share

The new Range Rover Evoque is the smallest and lightest model ever to wear the Land Rover nameplate.

Few vehicles can match the off-road capabilities of the typical Land Rover sport-utility vehicle. But when it came time to introduce the new Range Rover Evoque the British maker dug even deeper to reinforce its claims – more than 100 feet beneath the streets of Liverpool.

The media preview – staged in a long-abandoned network of railroad tunnels – was intended to show that the distinctive new Evoque could handle anything the typical buyer would likely run into. But the reality is that few will ever experience anything rougher than a gravel road or un-shoveled driveway. So why design a vehicle carrying all the extra hardware – and weight – of the typical Land Rover? 

While the iconic British brand isn’t likely to abandon the classic SUV that has been its foundation for the last 60 years, Land Rover is planning some major changes, and the Evoque is the first sign of what’s in store.

Apparently, the new crossover-ute has struck the right chord.  It has been named Motor Trend magazine's SUV of the Year and is a semi-finalist for North American Truck of the Year, an award that will be presented at the Detroit Auto Show in January.

The Range Rover Evoque is the first car-based crossover produced by the luxury brand, now owned by India’s Tata Motors, rather than the classic body-on-frame SUV.  With its funky, coupe-like styling, the new model is both the smallest and, at just north of 3,500 pounds in base configuration, the lightest model ever to wear a Rover badge. 

That reflects the reality of today’s automotive market. Motorists are generally downsizing as they struggle to deal with crowded city streets and rising fuel prices. That doesn’t mean they want to give up style, performance, space or functionality, however. 

So while Evoque abandons the low-range gearbox found on the classic Range Rover and other, less expensive Land Rover models, it carries over the Terrain Response Control system that, with the touch of a button, takes the guesswork out of driving on different surfaces, such as mud-and-ruts, gravel, snow-and-ice or standard pavement. 

It does that by revising the settings of all manner of vehicle operations. In one of the off-road modes, Evoque’s ride height increases by several inches. Throttle response changes appropriately. In snow, you’ll start out in second gear. Transmission and brake-intervention systems like ABS and electronic stability control also are reprogrammed for optimum traction and handling.

That dependence on electronic, rather than mechanical, technology will become increasingly apparent in future products, as will the wedge shape of the Evoque, explained Gerry McGovern, the brand’s design director, acknowledging, “Land Rover needs redefining.”

The process began with the unveiling of the LRX concept vehicle in January 2008 at the North American International Auto Show.  Company officials admit they weren’t sure what to expect, but the strong response to the show car convinced them to move forward with the project that became Evoque, which was launched while the brand was still owned by Ford Motor Co., then brought to market by Tata, which acquired both Land Rover and sibling British brand Jaguar in March 2008.

“We knew we had something very special on our hands, something that could change the perception of the brand," said Land Rover managing director Phil Popham

The buzz kept building as the maker carefully doled out details of the project and by the time of the recent media preview there were already 20,000 orders in hand.  Significantly, 80 percent of those buyers have never before owned a Land Rover product.

Considering initial reviews, the new Range Rover Evoque very well could become one of – if not the – best-selling model in the brand’s history.  Long little more than a niche player, Land Rover is aiming to take itself at least a bit more mainstream.  That doesn’t mean it will walk away from classic truck-based SUVs. Quite the contrary. 

It revealed an all-new concept version of the big Defender model at the recent Frankfurt Motor Show, McGovern describing it as a “vision of the 21st Century” SUV. A production version should roll into showrooms in a couple of years.

But even such traditional offerings will undergo some dramatic changes, according to Popham, who revealed a corporate goal of trimming anywhere from 800 to 1,100 pounds of weight off the typical Land Rover product. That will be critical if the marque hopes to meet tough new emissions and mileage requirements going into effect in most of its key markets.

Expect also to see a shift to more high-tech powertrains, he hinted. There’ll be more diesels – and very likely a diesel for the U.S. market.  The Range Rover Evoque, meanwhile, will be the first Land Rover offering to get a hybrid-electric drivetrain.  Even conventional gasoline powertrains will be downsized and turbocharged – like the turbo 2.0-liter direct injection 4-cylinder engine offered in the new crossover.

While rising fuel prices have clearly had an impact on the utility vehicle market, sales have remained surprisingly strong.  But Land Rover officials recognize they can’t keep practicing business as usual. The new Evoque gives a hint of the alternative future they’re mapping out.

A look at how dealers can profit from Land Rover's winning SUV, with Ryan Ambrifi, Land Rover of Milford, CT managing partner.

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Harley recalling more than 308,000 motorcycles

Harley-Davidson is recalling about 308,000 motorcycles to fix a switch problem that can cause failure of the brake lights and possibly even the rear brakes themselves.

The company says in government documents that brake light switches can be exposed to too much heat from the exhaust system. The brake lights can fail, and the problem also can cause fluid leaks and the loss of rear brakes.

The problem affects Touring, CVO Touring and Trike vehicles from the 2009 through 2012 model years.

Harley says it will notify owners of the recall. Dealers will install a rear brake light switch kit free of charge.

The recall affects about 251,000 motorcycles in the U.S. alone.

The company says it's aware of only one crash from the problem. It was unclear if anyone was hurt.

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Ford's union workers ratify new contract

Union workers at Ford Motor Co. overcame early opposition to a new four-year contract with the company and overwhelmingly approved the deal in voting that lasted two weeks.

More than 26,000 workers, or 63 percent of those who cast ballots, voted in favor of the pact, while almost 15,000, or 37 percent, opposed it, the UAW said in a statement Wednesday.

The vote means that new contracts have been approved at Ford and General Motors Co., with Chrysler workers just starting to vote on their deal. At all three companies, the union agreed to profit sharing and signing bonuses instead of annual pay raises, a novel concept that helps the companies control their costs yet rewards workers.

The contracts set the wages and benefits for 112,000 auto workers nationwide, and also influence the pay at auto plants owned by foreign companies, auto parts supply companies and other industries.

As part of the deal at Ford, the company promised $4.8 billion in new investments in its U.S. plants and 5,750 new jobs.

Most workers won't get annual raises under the contract, but they will get profit-sharing checks, inflation adjustment payments and other bonuses worth at least $16,700 through 2015. The deal at GM was similar, but the Chrysler pact has far smaller signing bonuses and profit-sharing checks.

UAW Vice President Jimmy Settles, the union's top Ford negotiator, said in a statement that workers at Ford were frustrated with the economy, a lack of pay increases and what he called "outrageous" pay packages for executives, yet they still approved the pact. Eighty-five percent of the union's members at Ford cast ballots, he said.

"As the nation's economy remains stalled and uncertain and its employment rate stagnates, we were able to win an agreement with Ford that will bring auto manufacturing jobs back to the United States from China, Mexico and Japan," union President Bob King said.

Despite the signing bonuses and profit-sharing, analysts expect a minimal impact to Ford's labor costs, in part because most of the new workers will be hired at lower wage rates than the company's longtime workers. Brian Johnson, an auto analyst with Barclays Capital, estimates the contract will add around $70 million to Ford's labor costs each year. If large numbers of older workers leave the company, Ford will spend even less, he said.

Johnson said Ford could see immediate benefits from the union approval in the form of a ratings upgrade, which would help lower its borrowing costs. Standard & Poor's Ratings Service has said it expects to raise Ford's corporate credit rating to "BB+" — which is one notch below investment grade — if the labor agreement is ratified.

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Will Ford restore dividend payments?

DETROIT — With a key debt rating agency giving it the thumbs-up – and further hikes anticipated – Ford Motor Co. is signaling it may soon restore its dividend, a move that could, in turn, help revive the maker’s flagging stock price.

With Ford now indicating its new contract with the United Auto Workers Union will actually lower its labor costs, Fitch Ratings bumped the carmaker’s credit rating up a notch to “BB+” on Thursday, S&P taking the same step on Friday while also removing Ford from its CreditWatch. Those upgrades fall just one step short of reaching the investment grade targeted by Ford CEO Alan Mulally.

In the past, it had been expected that Ford would wait until getting that investment grade status before restoring the dividend but, during a meeting with investors, Chief Financial Officer Lewis Booth indicated the additional upgrade, “is not an absolute necessity to pay dividends.”

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If anything, analysts say such a move would pay big dividends for Ford. The quarterly payout is a requirement in some investment communities, such as insurance companies and government pension plans, according to Joe Phillippi, chief analyst with AutoTrends Consulting.

“Many can’t own stocks that don’t pay at least some returns,” he noted, adding that, “This would open up a whole new class of investors…and that could drive up the stock price.”

On mid Friday morning, Ford was trading at just over $12 a share, its price up by more than a half dollar since the news of the Fitch upgrade was announced. But while it has bounced back from its 52-week low of just $9.32 a share, Ford is still trading well below the $18.97 peak it hit over the last year.

Whether it can maintain its current momentum remains to be seen. The maker is expected to deliver a slight year-over-year decline in third-quarter revenues, though perhaps not as serious as originally anticipated, with Itay Michaeli, of Citi Investment Research, this week upping his estimate of Ford’s third-quarter earnings from 44 cents to 46 cents a share, reaffirming his “Buy” recommendation.

A consensus of analysts gathered by DailyFinance.com, meanwhile, projects a solid turn upwards during the fourth quarter.

Holding down labor costs clearly will help going forward. Earlier this week, the United Auto Workers Union announced its members had ratified the new 4-year settlement with Ford. The contract contains a few costly provisions, including a $6,000 signing bonus and annual payouts to offset inflation. Those will add up to about $360 million in new costs, according to Mark Fields, Ford’s President of the Americas.

But there were concessions, as well, the union curbing its legal assistance program and agreeing to various steps meant to enhance productivity. And while second-tier workers will wind up making another $3 an hour by the end of the contract the UAW dropped demands to combine all workers in a single, higher tier. Most newly hired hourly workers will now make the lower wages.

“The work practice changes and increased uses of entry-level employees provide the opportunity for substantial cost savings and profit improvement as demand increases,” Fields said during the meeting with investors, the company predicting that an initial 1% hike in labor costs will actually turn into a reduction in costs by the end of the agreement.

That was enough to convince the maker to expand its production in the U.S. after years of transferring operations abroad or shifting to lower-cost U.S. suppliers. In all, Ford committed to an additional $6.4 billion in new investments under the contract, while adding 5,750 UAW jobs. Combined with prior promises, Ford now intends to boost U.S. employment by 12,000.

Fields today will be announcing a $1 billion investment – part of the new contract equation — at a Ford plant in Kansas City. It has been chosen to build the Transit van currently produced in Europe. The move will include the addition of a new stamping plant.

With the maker’s sales outpacing the overall rebound in the U.S. new vehicle market, and earnings expected to keep pace, most observers anticipate further credit rating upgrades by not only Fitch but S&P and Moody’s, the two giants in the field.

Whether Ford will wait or the agencies will act first, “I anticipate the dividend will be restored within the next quarter,” predicted analyst Phillippi.

Copyright 2011 The Detroit Bureau. All rights reserved.

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Hyundai leads in corporate loyalty — study

DETROIT — Long ignored by most American auto buyers, and slighted by others due to quality problems, Hyundai is now tops when it comes to corporate loyalty, according to a new study.

But Ford Motor Co. is also making gains in the marketplace, according to the report by Experian Automotive, a data service that tracks vehicle registration data as well as consumer attitudes. The Detroit maker captured the lead in six of the spots in the top 10 product segments.

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Hyundai had a loyalty rate of 49.6 percent, according to the Experian study, edging out General Motors and Ford – as well as major Japanese makers like Toyota. It was the first time the Korean carmaker led the list, marking a significant turnaround for a brand that was once the butt of jokes, not a marque that won repeat business.

Hyundai’s loyalty – translated as the repurchase rate of its owners – has also helped drive the brand’s market share to record levels, 9.2 percent during the second quarter of this year, up from 7.9 percent a year earlier. The maker’s performance in the study also reflected well on its sibling brand, Kia actually outscoring the Hyundai brand with a 47.9 percent loyalty rate.

General Motors, which came in second in the Experian study, had the second-highest loyalty rate, at 48.1 percent, and also saw its market share grow by 0.5 points – to 19.6 percent during the second quarter of this year.

Ford was third in the latest Experian loyalty study, at 47.6 percent. But it also took six of the Top 10 sports in terms of loyalty to specific products. That included the Ford Fiesta, third at 63 percent, and the Fusion, fourth at 61 percent.

The product with the highest individual loyalty was the Kia Forte, according to Experian, at 68 percent. The maker’s quirky crossover, the Soul, was fifth at 59 percent, with its Forte Koup ranking eighth at 57 percent.

Makers have become increasingly focused on brand loyalty in recent years. Repeat business not only helps prop up sales and market share but also helps hold down marketing costs. Experts say it can cost as much as 11 times more to “conquest” a buyer from a competing brand as opposed to winning back one of your loyal owners.

Copyright 2011 The Detroit Bureau. All rights reserved.

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GM to launch electric Chevy Spark

Gm / Wieck

General Motors plans to introduce an electric version of the Chevrolet Spark in the U.S.

The electric minicar will go on sale in limited quantities in select U.S. and global markets starting in 2013, including California, the automaker said. GM made the announcement during a media event celebrating the 100th anniversary of the Chevy brand.

“The Spark EV offers customers living in urban areas who have predictable driving patterns or short commutes an all-electric option,” Jim Federico, global vehicle chief engineer for electric vehicles at Chevrolet, said in a statement. “It complements Chevrolet’s growing range of electrified vehicles, including the Volt extended-range EV and the 2013 Malibu Eco with eAssist technology.”

The Spark announcement follows news in August that GM will build a Cadillac ELR luxury electric car as the automaker, which also produces the plug-in electric hybrid Chevy Volt, looks to burnish its green credentials.

So far this year sales of the Volt have lagged. GM aimed to sell 10,000 Volts in 2011, but only 3,895 models have been sold to date, according to CNBC. Still, GM’s Joel Ewanick told CNBC Wednesday that the automaker still plans to sell 45,000 cars in 2013.

“We know the demand is there; we know the customers want this car,” he said.

Electric cars have been slow to catch on in the U.S., according to Reuters:

“In the U.S. market, demand has been held back by the lack of models to choose from, skimpy infrastructure for charging the vehicles, high sticker prices, and low gasoline prices compared with other industrialized nations.”

 

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Chrysler, autos union agree on labor contract

 

Carlos Osorio / AP

Cars are seen on a Chrysler assembly line in Sterling Heights, Mich.

The United Auto Workers (UAW) union and Chrysler have reached a tentative four-year labor contract deal, the automaker said on Wednesday.

The deal follows agreements between the UAW and Chrysler's Detroit rivals General Motors and Ford. The UAW deal is Chrysler’s first since its bankruptcy and government bailout in 2009. It covers its 26,000 hourly production workers.

The agreement is subject to UAW member ratification. The GM contract was ratified by its workers late last month and Ford workers are in the process of voting that ends Oct. 18.

UAW President Bob King said in a press statement that the Chrysler pact will create 2,100 U.S. jobs and will include $4.5 billion in investments to produce new models and upgraded vehicles and components by 2015.

“Less than three years ago, Chrysler was teetering on the edge of bankruptcy as our nation was thrown into the worst economic crisis since the Great Depression,” King said. “This tentative agreement builds on the momentum of job creation and our efforts to rebuild America by adding 2,100 new jobs by the end of the agreement in 2015 to communities left in turmoil in the wake of the country’s economic collapse.”

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Chrysler to stop making Dodge Grand Caravan

AppId is over the quota
AppId is over the quota
Bill Pugliano / Getty Images file

Chrysler plans to stop production of the Dodge Grand Caravan, according to Automotive News.

The automaker will no longer make the minivan for the 2013 model year. It also plans to do away with the Dodge Avenger, the report said.

Chrysler only plans to offer one minivan in the future — the Chrysler Town & Country. The plan is designed “to end duplication in dealer showrooms and give each of its brands a strong and distinctive lineup,” according to the report.

Chrysler plans to debut a new crossover vehicle in 2013 that will replace both the Caravan and the Avenger, Chrysler’s CEO Sergio Marchionne told Automotive News.

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Volvo system could comic: road kill limit.

DETROIT - Volvo City safety bring a car to a complete halt to avoid an accident. A variation might be to avoid animals on the road and collisions.

It an unpleasant reality on the highway, but the folks at Volvo think they have a way, is to return to the seemingly omnipresent accident with some of the same high-tech systems, which the manufacturer to reduce the unintentional pedestrian collisions on public roads cut.

The new animal-friendly system is a way to the now Chinese-owned Volvo is hoping its traditional reputation as a leader in vehicle safety.

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Volvo won Kudos already for his latest active safety technologies, such as city security attached to the windscreen of an infrared laser sensor is used to monitor traffic on a vehicle. At speeds of up to 2 19 mph typical crowded cities, and in rush hour traffic - the system will recognize a possible collision. If the driver with the time not the two cars 18 meters away from each other to respond, it will jam automatically on the brakes.

Another version of the system can detect pedestrians and to take action to avoid impact. Such collisions are a significant part of some 35,000 Americans killed in road accidents per year.

Volvo engineers began then, question me, of animals that are killed each year impact in much larger numbers than the result of the vehicle. And groups such as PETA, people for the ethical treatment of animals, are not the only ones that disrupted by the toll.

According to a study by State farm there were 1.09 million deer of motor vehicles in the United States be taken while 12 months caused these events $3.5 billion in damage until 30 June. And such collisions routinely numerous dead and wounded. Such incidents are more dangerous in a country such as Sweden, Volvo home page, if the collision includes a moose.

The manufacturer is looking to introduce a modified version of city security, that can use cameras or other systems to expand their skills, and the new approach could show up in a few years on the manufacturer-SUV models, such as the XC90 notes a Bloomberg report.

It remains to be seen how well it works. It is difficult to forecast animal behaviour, in particular, when they suddenly by hide in a stand of trees at the roadside arising. But a recent study of insurance claims by the highway loss data Institute Volvo city secure system, in particular the number of the vehicle for damages as a result of vehicle to vehicle collisions by 27%, while insurance claims relating to personal injury decreased by 51% in vehicles with reduced the technology.

"This is our first real look at an advanced crash avoidance technology, and the results are encouraging," said Adrian Lund, President of the Institute data loss highway.

Various forms of the camera, radar or laser of clashes that have made LOB systems market and such insurance industry could especially when paired with discounts - promote even more.

General Motors just announced, a new low-cost system with a single camera.

But Volvo's first manufacturer, seems especially with a view to using this technology, to be kind to animals.

Copyright 2011 the Detroit Office. All rights reserved.

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Chevy advertising: really entertaining

It feels like it has already a while ago, since I was a TV show to watch and not all the ads in fast forward. Most of what I see is on the DVR, and this is a good thing.

But Sunday was a different story when that managed Seattle Seahawks, glued to a live football game to me, and meant that I had to sit map that by some. In this way I managed, what I believe to catch a pretty good run which was commercials by Chevrolet.

The American automaker, which managed to drill Bob Seger "like a rock", which has put always the eyes into a pickup truck, in the eternal consciousness of those seems a corner with the three "Chevy runs deep" spots have made, I saw. And I think something can go recognition, Volkswagen, down at the last Super Bowl with his small Darth Vader display the ad war won hands.

Chevy trots out own small child and-dad's ride scenario with a poignant Silverado display kid lovers, truck lovers, toy lovers and dog lovers all in one. It did the trick for me, as I my own 4 year-old son by the exact the same movements in the image. Skip the Seger, and position the soft acoustic guitar:

The second ad, that was me on the couch and not in the kitchen for the Volt. A man is electric car stops at a gas station in his imagination and a little child. Short, sweet and sarcastic as such as we 'em:

A further display, has for the Chevy Cruz eco, giggle me as it a couple of junge-- and erwartet--compress, to a day of house-hunting. Other simple display with a dry sense of humor... and since I was still on the couch:

Chevrolet has rewritten here by no means not the ad book. However, by one manages a detour from the brand of American machismo, my attention on a Sunday at the TV. I may not be able, through the game fast forward, which I was just had, but I had map is still the remote in hand and they cause me not to click.

What do you think of the Chevy spots? In recent times to catch any other good advertising?

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GM recalling Corvettes over rear hatch issue

General Motors Co said it was recalling about 6,000 Chevrolet Corvette Coupes over a concern they may fail to meet a federal safety standard covering rear hinges.

GM said the condition could allow the rear hatch to separate from the vehicle in a crash.

The recall involves the 2011-2012 model years. Of the affected vehicles, the majority were sold in the United States as well as some in Canada.

GM said the issue was discovered in testing and that it knows of no crashes, injuries or customer complaints related to the issue. Dealers will replace both rear hatch hinges free of charge, according to the company.

Copyright 2011 Thomson Reuters.

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Slideshow: Going nowhere: Worst-selling cars of 2011

By Dan Carney
Auto industry sales are recovering fitfully, but there have been some bonafide home runs, as cars like the Chevrolet Cruze and Hyundai Elantra sell almost as quickly as they arrive at dealerships.

Other models’ fortunes have gone from bad to worse. We’ve compiled a list of 10 of the worst offenders, looking at models that have sold in low triple-digit numbers each month so far this year.

These aren’t the only ones that sell in such low volumes, but many of the cars that sell in small numbers can claim exclusivity and price as the reason rather than unpopularity. Some other weak sellers, such as Cadillac's STS and Mazda’s RX-8, have already been discontinued by their makers and are limping to the exit, so we’ve excused them from this list.

The hideous and slow-selling BMW 550GT escapes inclusion because the company doesn’t break out its handful of sales from those of the rest of the 5-series line, so only the bean counters in Munich know just how poorly that car is selling.

The cars included here are unmitigated market failures -- cars that should probably cost someone their job because they cost too much to design, certify to the government and market for them to sell in such embarrassing numbers.

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VW recalls 160,000 autos for fuel leaks

Volkswagen is recalling 168,275 Audis, Golfs and Jettas for problems with the fuel line that could lead to leakage and perhaps ignite a fire, according to the National Highway Traffic Safety Administration Thursday.

In documents filed with NHTSA, Volkswagen said the fuel line in the recalled vehicles could develop cracks and leak under certain conditions. Because the leaks could happen near an ignition source, there's the potential for a fire, VW said.

It said the models affected include:

AUDI / A3 2010-2012 VOLKSWAGEN / GOLF 2010-2012 VOLKSWAGEN / JETTA 2009-2012 VOLKSWAGEN / JETTA SPORTWAGEN 2009-2012

The safety recall is expected to begin in November. VW said it will replace the injector line with an improved line.

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Ford, GM may qualify for higher credit ratings

NEW YORK — Ford and General Motors' new union contracts may qualify them for higher credit ratings.

Moody's Investors Service said Wednesday it's reviewing ratings for Ford.

The Dearborn, Michigan, automaker reached a deal on Tuesday with the United Auto Workers for a new four-year contract.

The automaker's ratings under review include "Ba2" for corporate family and probability of default, and "Ba3" for senior unsecured debt, both of which are so-called junk status. They also include "Baa3" for secured bank debt, the lowest level of investment grade.

An upgrade would return Ford more squarely to investment-grade status, which the automaker has said is one of its top goals. About $55 billion of debt would be affected.

Moody's is already reviewing Detroit-based GM's ratings after its workers ratified a similar contract last week.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Ford’s union deal could help investors too

Signing bonuses, profit sharing checks and inflation protection aside, Ford is billing its tentative new contract with the United Auto Workers union as a significant step forward in its bid for competitiveness — and CEO Alan Mulally’s goal of rebuilding the carmaker’s credit rating.

In fact, Ford shareholders could benefit from the deal as much as Ford’s unionized workers, especially if the new settlement helps the automaker restore its once-lucrative dividend payments.

“We believe this agreement ... will enable us to increase our overall competitiveness in the United States,” said Ford’s labor and manufacturing chief John Fleming, something he underscored by noting that the four-year contract, if ratified, will “also permit us to in-source work from Mexico, China, Japan and other parts of the world.”

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The settlement at Ford, reached Tuesday morning, comes nearly three weeks after the UAW union came to terms with General Motors, and the proposed contract largely follows the GM pattern.

That means an improved profit-sharing program, a signing bonus and inflation protection. But Ford, considered the healthiest of the Detroit carmakers, bumps the up-front cash to $6,000, a full $1,000 more than at GM, while it will offer four $1,500 lump sum payments meant to compensate for inflation, double what its crosstown rival came up with. Significantly, Ford and GM both avoided any fixed increases in wages — a move that auto analyst Joe Phillippi sees as critical to the companies' long-term competitiveness.

Ford, UAW reach tentative contract pact

He isn’t alone. Standard & Poor’s has signaled that it might follow an upgrade in GM’s credit rating by also upgrading Ford’s rating. That would meet one of Mulally's top goals — something Ford highlights on its website.

An investment grade rating would deliver more than just bragging rights. It would also mean a significant savings on Ford’s hefty debt. The carmaker borrowed heavily going into the last recession to ensure it could survive. As a result Ford — unlike GM and Chrysler — was able to avoid bankruptcy and a bailout from the federal government.

An upgrade “is paramount in Alan’s mind,” said Phillippi, founder of AutoTrends Consulting. “It would not only help lower [Ford’s] debt costs, but also signal their willingness to reinstate the dividend. They could do that now, but the ratings agencies would probably respond better if they wait until the debt rating has been restored.”

While Ford — like the rest of the auto industry — has been slammed by Wall Street in recent months it is generally seen as best positioned to take advantage of an eventual economic recovery. Ford’s sales were up 9 percent in September, well ahead of some key import competitors, including Honda and Toyota.

Ford remains a leader in the pickup market, with its F-Series and other light truck segments. But with models like the new Fiesta subcompact and midsize Fusion the automaker also is  gaining traction in the passenger car segment where it was long an also-ran.

As a result of the new contract, Ford will expand production of the Fusion, now built in Mexico, by adding a line at its plant in Flat Rock, Mich. That factory, known as AutoAlliance, has been operating as a joint venture with longtime affiliate Mazda Motors. But Mazda plans to pull out of the plant, and there had been concerns the facility would close. Its future seems to be rosy as a result of the new UAW contract.

Indeed, Ford’s Fleming announced that the carmaker will add another 5,750 U.S. hourly jobs once the contract is ratified, bringing to 12,000 the number of jobs it has either added or saved. All the new jobs, however, will be classified Tier II, meaning those employees will make significantly less than veteran Ford line workers. To soften concern among the rank-and-file, Ford has agreed to boost Tier II wages by $3.78 an hour to $19.28, still significantly less than the top tier makes.

Ford also will offer buyouts to veteran workers to open up even more Tier II jobs and lower labor costs further.

The auto industry has traditionally had a strong impact on what happens in the rest of American manufacturing, and the settlements at GM and now Ford are being well received, with Jay Timmons, president of the National Association of Manufacturers, declaring that this week’s [Ford] announcement “will create jobs, will make the manufacturing sector stronger.”

For the UAW, it’s two down and one to go. The union still needs to work up a settlement with Chrysler, the smallest and weakest of Detroit’s makers. A settlement seemed close at hand as negotiations approached the Sept. 14 expiration of the old four-year contract. But an unexplained glitch led UAW President Bob King to walk away from Chrysler and focus on the GM settlement -- a move that triggered the rage of Chrysler’s CEO Sergio Marchionne.

The two have since tried to patch things up and negotiations are again moving ahead, though Chrysler is reportedly balking at the signing bonuses and Tier II wage hikes approved at GM and Ford. It insists that anything that increases its costs — which average $50 an hour — must be offset by cuts in other areas.

Observers expect both sides will bend. If not, they face unforeseen risks. Terms of Chrysler’s 2009 federal bailout prohibit both a strike and a company lockout. As a result, a deadlock would leave the final terms of a settlement up to binding arbitration.

© 2011 msnbc.com.  Reprints

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Ford, UAW reach tentative contract pact

Ford and UAW leaders have reached a tentative agreement on a new four-year contract. Insight with John Fleming, Ford Motor Company executive VP global manufacturing/labor affairs.

Ford Motor Co. and its unionized workers settled on a tentative four-year contract agreement that the automaker said Tuesday would add 12,000 hourly jobs in the U.S. by 2015.

Ford said the pact would add 5,750 more jobs than its previously announced commitment to increase positions by 7,000 by 2012. The carmaker also said it would invest $4.8 billion in its plants as part of the deal with the UAW. That’s part of a $6.2 billion plan to upgrade plants.

The deal still needs to be ratified by the United Auto Workers. If it does OK the pact, it would follow the agreement with GM ratified last week. Chrysler and the UAW are still in talks.

A Ford official told the Associated Press that most of the new hires will be at entry-level wages, which will keep costs down.   

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GM sales jump on demand for trucks, SUVs

  Carlos Osorio / AP

2011 Chevy Silverado trucks await final inspection at the Flint Assembly in Flint, Mich.

Strong demand for full-size pickups and SUVs drove up General Motors’ U.S. sales last month, the automaker said Monday.

GM reported total sales of 207,145 vehicles in September -- a 20 percent increase over the same month a year ago. Truck sales, which include full-size pickups and SUVs, jumped 34 percent, while sales of passenger cars rose 12 percent over September 2010.

“For GM, all of the factors that say this is a good time to buy a new vehicle outweigh the bad news that appears to be slowing down the broader economic recovery,” said Don Johnson, vice president for U.S. sales.

Other major automakers reported their September sales Monday. Ford said its U.S. sales rose 9 percent, with sales of the Ford Explorer SUV up more than threefold and sales of the Escape small SUV up 41 percent. Ford's pickup sales rose 15 percent.

Sales of trucks and SUVs tend to pick up in the fall as automakers offer sales promotions. Industrywide, car and truck sales are expected to have risen in September as more Japanese vehicles fill showrooms after months of earthquake-related shortages, the Associated Press reports, adding that “analysts say the jump in sales could be short-lived because potential car buyers remain worried about the economy.”

Earlier, Chrysler reported a 27 percent rise in monthly sales. And Toyota said its September sales fell 17.5 percent over the year-ago month.

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Auto industry’s reputation on mend

DETROIT — The auto industry's reputation has improved sharply, according to a new Harris Poll.

After having hit bottom two years ago during the bankruptcy of General Motors and Chrysler, the reputation of the auto industry has rebounded.

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A new Harris Poll judging public attitude towards 22 large industries indicated what was described as a “huge improvement” in the number of people who think the automobile industry is doing a good job of serving consumers.

At the same time, there was a very large increase in those giving the airline industry bad marks, according to the poll, which was based on interviews with nearly 2,000 Americans last month.

One key measure, the difference between those who think the auto industry is doing a good and a bad job of serving their consumers, shows a 36-point improvement, from plus 6 to plus 42 for the car industry. By comparison, there was a 27-point decline, from plus 34 to plus 7 for airlines.

Other sizable changes since 2009 include an 11-point improvement in public attitudes to online search engines, from plus 63 to plus 74, and a 10-point improvement in attitudes to the still unpopular health insurance industry, from minus 19 to minus 9.

The industries with the best images among the public are supermarkets, plus 80, online search engines, plus 74, hospitals, plus 66, computer hardware companies, plus 61 and computer software companies, plus 55.

The least popular industries are oil companies, minus 31, tobacco companies, at minus 21, managed-health companies, minus 13, health insurance companies, at minus 9, and investment and brokerage firms, plus 3.

Copyright 2011 The Detroit Bureau. All rights reserved.

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Mercedes gets small to regain traction

Daimler Chief Executive Officer Dieter Zetsche had been at the helm of the German luxury automaker less than a year when in 2006 he moved to stanch the eroding position of his flagship Mercedes-Benz unit. The storied brand had fallen behind rival BMW, while Volkswagen’s Audi line was in hot pursuit. Zetsche’s answer to the crisis? Think small. Despite the fact that Mercedes’s reputation was based on the strength of big sedans for the middle-aged affluent, Zetsche figured that a range of upscale small vehicles would raise Daimler’s near-term sales volume and attract a younger generation of buyers to propel the brand for years to come. “We were running the risk that our people assume it’s a law of nature that we grow slower than BMW and Audi,” says Zetsche. “A mindset like that is poison.”

The first fruit of Zetsche’s plan, the diminutive Mercedes B-Class, was unveiled on Sept. 13 at the International Motor Show in Frankfurt. The vehicle is built on a platform Mercedes engineers designed to eventually be shared by five different small models, ranging from a hatchback to a sport-utility vehicle. The new B-Class starts at €26,000 ($35,055), compared with €32,700 ($44,088) for a C-Class sedan and €71,900 ($96,939) for the flagship S-Class. Daimler, which is investing €1.4 billion ($1.9 billion) in two small-car factories, is counting on the new models to help it retake first place in global luxury car sales by 2020. “It’s impossible to tell our customers, employees, and investors that we accept being No. 3,” says Zetsche.

In 2001, Mercedes was the clear leader, delivering 233,000 more cars than BMW and 390,000 more than Audi. Over the past decade, the two German rivals increased sales five times more than Mercedes, as they moved quickly into growing markets such as compact SUVs and expanded into China and other fast-growing nations. Through the first eight months of 2011, Mercedes’s global sales trail BMW’s by 95,200 and Audi’s by 54,700.

In the U.S., Mercedes buyers are older — 54 years on average vs. 49 for BMW and 48 for Audi, according to researcher Strategic Vision. “The age structure of Mercedes’s customers is challenging, to put it politely,” says Jorgen Meyer, a fund manager with SEB Asset Management. “If Mercedes succeeds in drawing younger customers to the brand, they’d clear their biggest hurdle.”

Mercedes’s lineup is in the midst of a makeover led by Gorden Wagener, who became the youngest design chief in its 125-year history when he took the job in 2008 at age 39. The former competitive wakeboarder has brought a sportier, bolder styling to the brand. “A youthful appeal is important for the brand’s image and its long-term success,” says Joachim Schmidt, head of sales and marketing at Mercedes. “Once you get these customers and if you convince them with your products and service, it’s very likely [you’ll] have them for life.”

Mercedes is trying unconventional methods to reach a younger, hipper clientele. In July it hosted a three-day party in Berlin dubbed Avant/Garde Diaries in an effort to become cool by association. Designers and artists were invited to talk about what’s cutting edge. On display at the event, quietly bidding for the blessing of the trendsetters, was a concept version of the new A-Class. A similar event is planned for New York.

Not everyone is convinced. Mercedes is risking its classic position, says Peter Saville, a designer of record covers who contributed to the Berlin event. “Mercedes-Benz doesn’t need to be hip; it belongs to the grownup world,” says Saville, who owns a 1998 SL500. “Their position has been stolen by Audi. Audi is the new Mercedes-Benz. It’s clean. It’s reductive. It’s minimal. It doesn’t try too hard.”

Still, Daimler executives say Mercedes must learn to thrive beyond its franchise, upscale sedans. Says Jurgen Hubbert, the former head of Mercedes: “If we had just listened to the traditionalists, we would just be an E- and S-Class company and probably the 15th brand of another group.”

The bottom line: Mercedes, now No. 3 in luxury autos worldwide, is investing €1.4 billion to make five small luxury models in an attempt to regain share.

Copyright © 2011 Bloomberg L.P.All rights reserved.

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The commute is a solitary place

U.S. Census Bureau

Apparently, we Americans really love sitting alone in our cars in traffic along with tons of other people who are also sitting alone in their cars in traffic.

Either that, or we don’t have much choice but to drive alone to work.

A batch of new U.S. Census data released this week showed that more than three-quarters of American workers commuted to work alone in 2009.

About 10 percent carpooled, and 5 percent took public transportation. The rest walked, biked, worked from home or used other options.

Although the number of workers has grown over the past five decades, the pattern of transport hasn’t changed much. The majority have always taken their own car to work.

It took workers about 25 minutes to get to work, on average, according to the Census data for 2009. That’s a few minutes more than in 1980.

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Struggling Saab wins bankruptcy protection

STOCKHOLM — Struggling car maker Saab gained fresh breathing room in its fight for survival on Wednesday when it won a court appeal to be granted protection from creditors while it awaits Chinese investment.

A court of appeal in west Sweden said in a statement it had overturned a lower court decision which had rejected allowing Saab the protection it sought, known as a reconstruction.

It said there was "no reasonable reason to consider that the goal with a reconstruction cannot be met."

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Saab hopes creditor protection will allow it to survive until China's authorities approve a 245 million euros ($336 million) investment by car firms Zhejiang Youngman Lotus Automobile and Pangda.

Saab, owing August wages to workers and 150 million euros to suppliers, sought protection from creditors this month, but was turned down by a lower court.

Owned by Netherlands-listed Swedish Automobile , the company backed up its appeal by pointing to, among other things, agreement for 70 million euros of bridge financing with the help of a guarantee from Youngman.

Three unions representing workers at Saab have sought the company's bankruptcy to activate a state scheme to pay wages. But creditor protection also activates that scheme.

Blue collar union IF Metall said in a statement this meant its bankruptcy application was no longer needed.

"Now the company and its employees will get a much needed breathing space systematically to develop a long-term business plan," IF Metall chairman Stefan Lofven and the IF Metall Saab chapter head Hakon Skott said in a statement.

Production at Saab has been more or less at a standstill since April when unpaid suppliers pulled the plug on deliveries.

Sweden's debt collection agency had already begun seizing assets at the behest of unpaid suppliers.

Copyright 2011 Thomson Reuters.

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GM deal with union: It's all about jobs

Jobs — and not necessarily cash, or new benefits — have proved to be the centerpiece of the new four-year contract agreed between the United Auto Workers union and General Motors.

That’s not to say the deal doesn’t include some financial benefits designed to salve the frustrations of GM workers, who have made major concessions over the past four years to help revive the long-troubled automaker.

Among other things, the union has revealed, the new, four-year agreement includes a $5,000 signing bonus, $4,000 in “inflation protection” and another $3 an hour for second-tier employees earning half as much as veteran line workers.

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But the agreement appears to have nonetheless held GM’s overall labor costs in check, industry analysts believe, and even offers the opportunity to improve productivity and lower costs still further at the automaker, helping the Detroit-based giant justify its plans to add more products — and more jobs — in the United States.

The union will now focus on selling the deal to Chrysler and Ford. If the UAW can succeed in that endeavor it could use the momentum it has gained in Detroit to help achieve another long-sought goal: unionizing European and Asian “transplant” assembly lines that have long resisted UAW organizers.

“The basis that we went into the agreement with was jobs, jobs, jobs, and I think that is what we came out of this agreement with,” UAW Vice President Joe Ashton said at a news conference revealing details of the GM deal.

Since emerging from bankruptcy with a $50 billion federal aid package two years ago, GM has added thousands of jobs in the U.S., and the new agreement could open up another 6,400 slots.

The automaker is promising to launch new products at plants in Spring Hill, Tenn., the former home of its now-abandoned Saturn division, as well as at factories in Michigan and Missouri.

Other key elements of the new GM contract include:

A $5,000 signing bonus.A provision that could add another $4,000 in “inflation protection” over the next four years. A revised profit-sharing plan that will be based on all North American earnings, not just U.S. profits. That would have earned workers $5,000 last year, compared with the $4,300 they actually received. A $3-an-hour increase in Tier Two wages over the life of the four-year contract.

Despite those gains, the new contract “should not have a material impact on GM’s UAW labor cost structure,” according to Rod Lache, automotive analyst with Deutsche Bank. Provisions aimed at improving productivity, he said, “could produce fixed-cost reductions.”

GM union leaders back new contract

That’s critical for GM — and for Ford and Chrysler, too. Just four years ago, the domestic automakers were paying an average of about $76 an hour in compensation for UAW workers, a full 50 percent more than what “transplant” carmakers paid at the Toyota assembly line in Georgetown, Ky., or the Honda East Liberty, Ohio, plant.

That higher payment averaged out to a cost penalty of more than $500 per vehicle — a significant disadvantage in the hotly competitive auto industry.

Labor costs began to come down when the UAW agreed to make major concessions in 2007 — and the union gave back even more when GM and Chrysler plunged into bankruptcy two years later.

As labor talks began in July it was believed the Detroit automakers were paying an average of just over $50 an hour — still several dollars higher than at the typical transplant automaker, and significantly higher than the newest foreign-owned factories, such as Volkswagen’s plant in Chattanooga, Tenn.

The UAW has struggled to organize workers in those transplant automakers’ plants since the first — a Honda facility in Marysville, Ohio — opened more than a quarter-century ago. Currently, only two transplants are represented by the UAW — the Mazda plant in Flat Rock, Mich., and the Mitsubishi line in Normal, Ill. — and that’s only because they were initially opened as joint ventures with one of the U.S. makers.

The challenge will be to overcome not only corporate resistance, but also worker reluctance at plants that are largely based in the mostly anti-union South, according to Harley Shaiken, a labor professor at the University of California in Berkeley.

The union hopes the relatively smooth deal with GM will be a selling point to workers at those foreign-owned factories, especially when the new signing bonus and other gains are added in.

The question is whether the new contract will be sellable to GM workers. Significantly, while the agreement ups pay for second-tier workers, it does not eliminate the unpopular two-tier pay structure.

GM’s 64,000 U.S. hourly workers will vote on the agreement over the next 10 days. Most observers believe that while noisy debate is likely, the agreement ultimately will be ratified. Union leaders Tuesday endorsed the agreement.

UAW bargainers are hoping to finish negotiations with Chrysler and Ford before the vote happens. The two companies are pressing for unique agreements, but the union is holding out — as it traditionally does — for so-called pattern agreements that don’t give an advantage to one automaker over another.

As with GM, the UAW is barred from striking Chrysler over financial issues as part of the 2009 federal bankruptcy bailout. Ford, the only carmaker not to receive a rescue package, could face a walkout, but that seems increasingly unlikely. The No. 2 domestic carmaker has generally had the best relationship with the UAW and it hasn’t seen its workers strike since the 1970s.

© 2011 msnbc.com. Reprints

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GM to share electric car tech with Chinese

DETROIT — Under pressure from the Beijing government General Motors has agreed to provide access to its proprietary electric vehicle technology to its lead Chinese partner.

The move is raising numerous concerns, critics contending that China is, for one thing, using unfair pressure to gain access to technologies that will later be used by its own domestic manufacturers to compete with foreign brands like GM.

But the U.S. automotive giant contends the move will help it maintain a lead in the rapid electrification of the industry – especially since China, now the world’s largest automotive market, is making a rapid push into battery power to curb its dependence on foreign oil and reduce its endemic pollution problems.

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“We can accomplish far more by working together than we can by working separately,” said Tim Lee, president of GM International Operations, during a signing ceremony with the maker’s lead Chinese partner, the government-owned Shanghai Automotive Industrial Corp., or SAIC.

The move followed a first-time meeting of the General Motors Board of Directors in China. The huge and fast-growing market last year generated more vehicle sales, on a unit basis, than the U.S., and GM is expecting to more than double volume to 5 million by 2015. In April, the automaker announced plans to invest between $5 billion and $7 billion to achieve that target.

The huge expansion of the Chinese auto market has created problems, leading to a significant increase in oil imports and worsening the Asian nation’s already serious urban pollution problem. That has led Beijing to press for a rapid shift to battery-powered vehicles. GM is planning to launch the new Chevrolet Volt in China later this year and will also market a European version of the plug-in hybrid, the Opel Ampera.

GM officials contend the new alliance with SAIC will help them “to lead the auto industry in new energy vehicle technology,” said Lee, who described the shift to battery propulsion as a “very aggressive and challenging project.”

But critics note that GM has also faced significant pressure from China to accept the partnership, government regulators threatening to withhold sales incentives for the Volt were GM to have rejected the technology sharing agreement.

Such a move might violate international trade agreements, critics argued. But the more serious concern is that GM may now lose control of key intellectual property. Protection of IP rights has become a critical concern with Chinese businesses routinely ignoring trademarks and copyrights on everything from pop music and movies to pharmaceuticals and automotive design.

GM and SAIC are already involved in 10 separate partnerships, including the operation of the U.S. maker’s first Chinese plant, in Shanghai. They recently launched the new Baojuan brand to help expand sales in China’s second-tier cities.

GM sales in China rose 30% last year and have increased another 5.4% through August, even though overall demand in the market has been slipping in recent months.

To underscore the importance of the Chinese market, GM CEO Dan Akerson met with 700 employees at the PATEC technical center the maker operates with SAIC in Shanghai. That facility will be taking a significant role in the development of battery vehicles specifically for China. But critics warn that SAIC could also use its new knowledge to develop vehicles it plans to sell in direct competition to GM.

Under the strange bedfellow rules of the Chinese auto industry, SAIC not only partners with GM but also its German arch-rival Volkswagen AG. Longer-term, critics warn that SAIC intends to become a serious automotive contender on its own.

Copyright 2011 The Detroit Bureau. All rights reserved.

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Tiny Fiat 500 looks to charm city-dwellers

As the globe shrinks, carmakers such as Fiat that once were happy to dominate their home markets without competing abroad are being forced to face wider competition.

Manufacturers like Fiat, Renault and Peugeot -- which left the U.S. market decades ago after customers fled these unreliable brands for Japanese and German carmakers -- are finding those same competitors in their home markets. That is forcing them to improve their cars to the standards set by Honda, Toyota and increasingly, Hyundai.

Driving these Italian and French cars in Europe in recent years has been a revelation: They seem to be put together every bit as well as cars made anywhere else, and they often boast chic Euro-styling that sets them apart from bland Asian products.

The Fiat 500 is a case in point. The original 500, or “Cinquecento” in Italian, was the fondly remembered Italian equivalent of the Volkswagen Beetle or Austin Mini, so Fiat decided to follow VW and Mini’s lead by introducing a new version that evokes the beloved classic.

Unlike VW, which stretched the New Beetle to preposterous proportions, Fiat stuck closer to the original car’s size, producing a model that is even smaller than the Mini.

The Mexican-built U.S. version of the 500 feels as solidly assembled as the European models that have been sold on the Continent for several years, with none of the embarrassing manufacturing flaws that drove American customers away from cars like the Fiat Bravo and Strada, despite their appealing handling characteristics.

The version of the 500 I tested -- a convertible -- not only seemed solid, it also successfully repelled the drenching remnants of a tropical storm that flooded the East Coast recently. The 500’s electronics didn’t flicker during this virtual submersion test, and the car plowed happily along through the torrent without a hiccup.

With the reliability problems in its cars fixed, Fiat realized that the key to regaining customers was to focus on the company’s longstanding fun-to-drive aspect.

When the 500 debuted at the Frankfurt motor show four years ago, Fiat played up the car’s toy-like aspect with a display featuring the cars traveling on a track like an amusement park ride, with a giant-sized version of the 500’s body shell serving as the fun house through which the cars traveled.

The stunt underscores the 500’s appeal as a virtual thrill ride, but while the exterior style supports that notion, the chassis isn’t cashing the checks the sunny exterior is writing. Steering and handling fail to live up to the lively, playful promise of the 500’s diminutive dimensions.

Instead of the grasping-the-front-axles directness one expects from such a go-cartlike conveyance, the 500 driver is frustrated by lifeless power steering that feels directly lifted from an Oldsmobile Cutlass circa 1971.

For urbanites who suffer cars as a necessary evil and revel in the Fiat fashion statement, this dull steering will make no difference, as the car goes where it is pointed and the flyaway steering makes one-finger parking a breeze.

But those who are attracted by the expectation of fuel-sipping fun will be disappointed. Attempting to distract from that disappointment by enjoying the Bose sound system will only compound the problem as the radio is abominably hard to use due to the lack of rotary knobs for volume or tuning.

Inside the 500 there is room for four, with just enough space behind the back seat for a row of grocery bags. It feels very much like the original Honda Civic in scale, but with a more claustrophobic cabin due to the thick bracing and small windows demanded by modern safety tests.

We don’t yet know to what degree that modern reinforcement, with the aid of seven airbags, has bolstered crash test scores because results for the U.S. model aren’t yet available. But in Europe the 500 was the first subcompact to earn a five-star rating, which bodes well for results from U.S. testing agencies.

A six-footer can genuinely fit in the rear seat behind a front-seater of the same size, though it means splayed knees, head restraint pressing against the neck and head grazing the ceiling, so the ride should be a short one.

Fiat returns to the U.S. boasting of its Multiair engine technology, which it promises will boost efficiency in its engines.

The 500’s 29 mpg in combined city and highway driving is acceptable but not exemplary for a car with only 101 horsepower and six speeds in the transmission (for perspective, that means the Buick Regal eAssist has better steering feel and better fuel economy).

The 1.4-liter four-cylinder engine has a modestly thrashy character that is reminiscent of a sewing machine in the manner of Japanese engines of the 1970s. It’s in no way obtrusive, but you are aware that it is toiling underhood. When stopped at a light with the automatic transmission in drive, however, the engine does vibrate at idle.

Such details won’t matter to those for whom the 500’s aesthetic is irresistible. It has the right look, it is easy to park, comfortable to drive and turns heads everywhere it goes. If, at $25,000 (as tested, as a fully loaded convertible), it’s a touch expensive for an economy car, that may deter bargain hunters, but the fashionable set is accustomed to paying for style.

And if, at 29 mpg, the 500 isn’t as efficient as accords its size, well again, many consumers are prepared to suffer for art, and 29 mpg isn’t painfully bad, it just isn’t boast-worthily good for a cramped four-seater.

The car has been cast in some reports as a slow seller, but with only 100 dealers concentrated on the coasts, Fiat is selling 3,000 a month these days, which is solid for a niche car from a brand that has been absent for three decades.

Look for it to sustain that sales strength for a while because this new 500 successfully marries Italian flair and style with modern global requirements for reliability and safety, so it’s sure to succeed with urban trendsetters.

But for car enthusiasts, Fiat may still have some tweaking to do to dial up the fun factor.

© 2011 msnbc.com. Reprints

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GM union leaders back new contract

Union leaders from General Motors factories around the country have endorsed a new four-year contract with the automaker, the Associated Press reports.

They are recommending that GM's 48,500 factory workers approve the deal in votes during the next week, the news wire said, noting that:

The agreement reached Friday includes a $5,000 signing bonus and improved profit-sharing instead of hourly pay raises for most of the workers. About 2,400 entry-level workers will get raises. They now make $14 to $16 per hour, about half the pay of a longtime UAW worker.

Profit-sharing will be a minimum of $3,500 next year.

The union now will focus on negotiations with Chrysler, and Ford will be next.

Since Chrysler isn't making as much money as GM, workers there probably won't see as good of a deal.

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1969 Camaro voted best Chevy of all time

As part of their 100 year celebration Chevrolet set up a weird bracket style voting system in an attempt to pick the best car the company ever produced. After 124,368 votes were cast the 1969 Camaro came out victorious. Second place went to the 1970 Chevrolet Chevelle SS.

I like '69 Camaros and '70 Chevelles just as much as the next guy, in many cases more than the next guy, but are these two cars really the best cars Chevrolet ever made? They're popular and they are certainly cool, but I'm not sold on these choices. The 1963 Corvette Stingray that was voted fourth would probably be my number one. The new ZR1 is excellent and anything from 1955 (especially the Nomad) that featured the first Chevy small block V8 ever made was pretty great, just to name a few.

It's not a quite a question of the weekend, but I'm curious what you guys think. Did the voters get it right picking the '69 Camaro as the best car the company ever produced? If not what car do you think should have won?

© 2011 Jalopnik, the most influential blog obsessed with the cult of cars, is the web's top source for breaking automotive news, gossip, edgy commentary and trusted vehicle reviews.

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GM-UAW agree on new contract

DETROIT — General Motors Co. and the United Auto Workers, sobered by the government bailout and bankruptcy at the automaker just two years ago, reached a tentative agreement on a new four-year contract without the public acrimony or strikes that have plagued the talks in the past.

Details weren't immediately released, but the union said the agreement includes some of its major goals, including assurances of new products for U.S. plants, improved health care benefits and a profit-sharing plan. The union said the plan will put laid-off members back to work.

"When GM was struggling, our members shared in the sacrifice. Now that the company is posting profits again, our members want to share in the success," UAW Vice President Joe Ashton, the chief negotiator with GM, said in a statement. "The wages and benefits we negotiated in this tentative agreement reflect the fact that it was UAW members who helped turn this company around."

UAW President Bob King, who was reached by phone Friday night, said he wouldn't comment on the agreement until after he has met with local union leaders.

The contract covers 48,500 GM workers in the U.S. GM was the first of the Detroit Three to reach an agreement with the UAW. Chrysler Group and Ford Motor Co. are still negotiating.

The UAW announced the agreement just after 11 p.m. EDT Friday (0300 GMT Saturday), after a little more than seven weeks of closed-door bargaining.

The UAW's contract with GM expired Wednesday, but the union had extended it indefinitely while negotiators continued to talk. In the past, workers might have gone on strike when the deadline passed. But this year, GM and Chrysler workers had limited ability to strike under the terms of the companies' government bailouts two years ago. These talks are the first since GM and Chrysler needed government aid to make it through bankruptcy protection in 2009.

Workers must vote on the plan before it will take effect. Union leaders from around the country have been asked to come to Detroit Tuesday to learn the details so they can explain them to their members. GM says a vote is expected in the next week to 10 days.

"We used a creative problem solving approach to reach an agreement that addresses the needs of employees and positions our business for long-term success," said Cathy Clegg, GM's vice president of labor relations. "We worked hard for a contract that recognizes the realities of today's marketplace."

Talks between GM, Ford and Chrysler determine the wages for 112,500 factory workers at all three companies. They also set the bar for wages at auto parts companies, U.S. factories run by foreign automakers and other manufacturers, which employ hundreds of thousands of people.

The White House also will be watching the outcome of the talks. GM received $49.5 billion in government bailout funds two years ago and is still part-owned by the U.S. Treasury. An agreement that is favorable to GM could help the company's stock rise, which would get the Treasury closer to making back the money it is owed when it sells its remaining shares.

GM began the talks paying its workers an estimated $56 per hour in wages and benefits, which is about the same amount that Ford and Toyota Motor Co. pay their U.S. workers but higher than Chrysler and Hyundai Motor Co.

After its wrenching trip through bankruptcy protection, GM is making money again. The company made $4.7 billion last year, its first annual profit since 2004. But it isn't eager to add costs after years of layoffs and plant closings.

The UAW has shown a willingness to work with GM to cut labor costs. Last fall, the union agreed to lower the wages of 40 percent of its workers at a Michigan plant so it can profitably build the subcompact Chevrolet Sonic there. In turn, GM has promised to invest in its U.S. workers and facilities. Earlier this summer, GM pledged to put $2 billion into 17 U.S. facilities over the next 18 months. The company says the investment will create or retain 4,000 jobs.

The UAW hopes to show that it can work cooperatively with auto companies as it tries to unionize U.S. factories owned by Nissan Motor Co., Honda Motor Co., Volkswagen AG and other foreign automakers. King said the union remains committed to organizing those plants.

"As long as unionized workers are being forced to compete with nonunion workers who in most cases receive lower pay and benefits — many in temporary jobs — there will continue to be a downward pressure on the wages and benefits of all auto workers," he said.

The union's focus on GM slowed the Chrysler negotiations and drew an angry response earlier in the week from CEO Sergio Marchionne.

Marchionne accused King of failing to show up at Chrysler's Auburn Hills, Michigan, headquarters to finalize a deal on Wednesday night. Marchionne then left the country, so it's unlikely a deal will be finalized until he returns next week.

Talks with Ford have made little progress while negotiations continue with the other two companies.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Cadillac sees building Ciel concept flagship

DETROIT — Cadillac is expecting the go-ahead to build a new flagship based on the same platform as the Ciel concept car.

General Motors is expected to give the go-ahead to Cadillac’s flagship Omega project before year-end, according to senior sources, the maker’s top management encouraged by the overwhelmingly positive reaction of the luxury division’s new Ciel concept vehicle.

It’s unclear whether a convertible or sedan version based on the big Omega platform would be first to market, but there is a clear consensus that Caddy needs a super-premium model if it is to have a chance of regaining its position as “standard to the world,” as its long-time ad slogan declared.

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Omega would be just one in a wide range of new offerings that would be added to the Cadillac line-up, officials told TheDetroitBureau.com, helping the once-dominant marque fill in the so-called “white space” between its current model mix. That will include not only a new plug-in hybrid — but very likely some more conventional hybrid-electric models, as well.

Adding a “flagship” to the line-up is critical, said Cadillac design director Clay Dean during the Ciel’s first public showing in Detroit. The concept convertible was first revealed, earlier this month, during the run-up to the annual Pebble Beach Concours d’Elegance, where it generated “wows” from both potential customers and the gathered media.

The decision to show the prototype was strongly influenced by the need to make a formal decision on the Omega project, which would target a market segment above the coming Cadillac XTS — itself the replacement for the largely unloved Caddy STS sedan. While there is strong support for the super-premium project there was concern whether the public would accept the idea of something so bold.

“We do have this residual positive sentiment but the fact is that we’re not relevant for many consumers,” said Don Butler, the division’s marketing chief.

That had worried some top GM managers all the way up to the chairman’s office. But a car like Ciel, Cadillac is betting, would put the brand back on the radar for even the most affluent buyers, challenging the status quo of luxury brands like Lexus, BMW and Mercedes-Benz. The convertible, with its dramatic suicide-door design and subtle hint of Caddy’s classic fins, was chosen to represent the brand’s future strategy because ragtops tend to have more emotional power than sedans.

Design chief Dean hinted that a hardtop version is already in hand and could be shown publicly in the months to come.

Precise timing for a production version of the big car is a closely kept secret though sources indicate the maker hopes to have it to market by mid-decade, at the latest.

By then, Cadillac’s line-up will be significantly bigger than it is today. In the coming months, the marque will launch both the small ATS sedan and the XTS, the latter model aimed at “modernizing and redefining” the brand’s image, suggested Butler.

Also on tap is the Cadillac ELR, a high-end version of the Chevrolet Volt extended-range electric vehicle — a plug-in in more popular vernacular. The Cadillac version will use completely new sheet metal, a unique interior, different suspension tuning — and a significantly updated version of Volt’s gas-electric powertrain, noted Dave Leone, GM’s chief engineer for rear-drive and performance vehicles.

The ELR is based on the popular Cadillac Converj concept vehicle and when it comes to styling, stressed Leone, “The concept car is the (production) car.” On the technical side, however, he said “there’s still some optimization going on.”

Most significantly, the ELR will use a newer version of the lithium-ion power pack provided by GM’s battery partner SG Chem. That means it will hold more power, among other things, for a given mass. While it would be possible to downsize the pack to get roughly the same electric-only range as Volt, it appears more likely that Cadillac will take advantage of the higher energy density to delivery better range, improved performance — or both — Leone hinted.

GM is making a significant push into battery propulsion, and ELR is not likely to be the last “electrified” vehicle in the line-up, said the engineering chief. It is “very likely” that not only will there be several more hybrids in the Caddy line-up but that “you will see more than one (hybrid) technology.” That might mean one model focusing on fuel economy but another taking advantage of the potential performance benefits of electric propulsion.

Might Cadillac also make a push into diesel? For the moment, Leone and other officials downplayed that option. The high-mileage technology would be more appealing if Caddy were a bigger player in Europe, but diesels are not yet big enough in the U.S. to justify the investment, the maker believes, and there’d be even less traction in China, Cadillac’s second-largest market.

During the Ciel preview in Pebble Beach, GM’s global design chief Ed Welburn suggested the brand is working on more new products than ever before. That apparently isn’t limited to the models it has already confirmed. Models like the ATS, XTS and ELR are “just the bow wave,” General Manager Butler echoed at the Monday Cadillac meeting.

That reflects the broad product proliferation that has swept through the luxury car market, said Aaron Bragman, auto analyst with IHS. “It’s the reason why BMW and Mercedes-Benz have been able to grow so much. Now Cadillac has to go after those white spaces.”

As for the Ciel convertible or a hardtop alternative, Bragman said it is an essential addition to the line-up to be considered a truly global luxury player. “They need a flagship. And it needs to be a truly striking flagship.”

Copyright 2011 The Detroit Bureau. All rights reserved.

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European car show upbeat, despite economy

FRANKFURT — Stock markets around the globe are plunging, consumers are retrenching and the threat of another recession seems to be on everyone’s mind these days.

Well, almost everyone. Optimism is the mood of the moment as the biennial Frankfurt Motor Show gets under way this week in Germany.

Never mind that Ford warned recently about sales missing estimates. No matter that automotive executives are watching the economic problems that are threatening to tear the European Union apart. Ford “comes to Europe with optimism,” insisted Stephen Odell, CEO of Ford of Europe, in a speech previewing the carmaker’s new line-up at the German car show.

In fact, Ford may have more reason for optimism than other automakers. The automaker has regained significant sales momentum this year after years of sales and market share declines that only complicated the problems it had in its home market. It has been sitting in the number two spot in Europe, this year, just behind Volkswagen AG — which is itself likely to be the second-largest automaker in the world when the numbers are added up for 2011, thanks to Toyota’s crushing production problems following the March earthquake and tsunami in Japan.

It’s not surprising, of course, to hear manufacturers speak of their hopes and aspirations — it’s what economists suggest consumers want to hear. And nothing spurs optimism more in the auto industry than new sheet metal. This year, there’s plenty of it on show in Frankfurt.

After delaying the introduction of many new models during the worst of the global economic downturn, manufacturers have opened the spigot on their product pipelines. Some 100 new vehicles were launched during the two media that came ahead of the show’s official opening to the public, according to estimates.

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Perhaps the only ones visibly worried about the increase in car introductions were the 10,000-odd reporters gathered in the German financial capital to try to cover the event. Organizers have this year had to double up many of the news conference slots. Most of them were also cut short to just 15 minutes. That was complicated by the fact that it’s nearly a kilometer from one end of the sprawling Frankfurt Messe exhibition center to the other.

In hopes of standing out from the crowd, carmakers have been forced to stage advance “backgrounders,” hoping to get journalists to write more about their products than those of their competitors. The Internet is filled with more than a few “leaked” images that appeared to be stage-managed by the manufacturers themselves.

On the night before the first official media day, there were long lines of limousines and buses outside most of Frankfurt’s major hotels escorting reporters to parties where they could take a look at products they might not get to see during the frenzied media previews.

Volkswagen, for example, provided a look at all its dozen brands’ offerings, including the new production version of the VW Up! microcar, as well as a pair of battery-powered vehicles from its upscale Audi brand.

There are no formal plans to put the A2 show car and Audi Urban Concept vehicles into production — yet. But it’s clear that the various Volkswagen subsidiaries, from pedestrian Seat to luxurious Audi, are convinced that European buyers will continue to look for smaller and greener products that can help them navigate crowded urban roads and survive record fuel prices that, in some national markets, have topped $10 a gallon.

Small and fuel-efficient models are everywhere to be found at the various Frankfurt halls, and even luxury automakers are acknowledging the trend. Lexus has a new version of its GS450h hybrid. And Jaguar’s concept offering, the C-X16, would be, if it went into production, the smallest model the British marque has turned out in over half a century.

Mercedes-Benz, meanwhile, has a striking liquid silver-painted concept dubbed the F125! (exclamation points are in high demand this year). The F125! can run on clean, light hydrogen gas, while BMW stages the formal launch of its new “i” brand with the debut of the i8 and i3 battery-powered cars.

In typical form, the German marques dominate Frankfurt, much as the French brands show off every even year when the event moves to Paris. But with 50 different brands on display in Frankfurt, Teutonic carmakers are getting plenty of competition this year.

The Koreans are proving particularly aggressive, with Kia revealing a coupe-like sport sedan dubbed the GT and Hyundai revealing the i30, which will also be sold in the U.S. as a wagon version of the wildly popular Elantra.

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The move by Hyundai underscores one of the significant changes that has reshaped both the auto show circuit and the industry as a whole in recent years: In decades past, a sizable majority of the products shown in Europe would never cross the Atlantic. But these days carmakers are pushing for ever-improved economies of scale, and that means more global products.

The smallest offerings, such as the Mercedes A- and B-Class models, still aren’t coming to the U.S., although that might change if fuel prices at home keep rising, company officials suggest.

Ford’s pre-show preview brought the unveiling of the Evos, a stunning coupe-like sedan with four gullwing-style doors.

“This is the new face of Ford,” said the carmaker’s global design chief J Mays. Although the car’s gullwing doors are “just showbiz,” according to Mays, Ford sources confirmed that many of the Evos’ design details will reappear on the stage at the Detroit Auto Show next January in the form of replacement versions of the U.S. Fusion sedan and European Mondeo.

Once completely separate vehicles, the two cars are now distinct only in their nameplates. By developing common vehicles that can be sold around the world Ford can afford to develop more niche vehicles to target selective groups of consumers.

That’s a strategy that most makers are now adopting, which is why there are 100 or more products all vying for attention in Frankfurt.

The Frankfurt Motor Show, the world’s biggest auto show, runs until Sept. 25.

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Toyota says NA production back to normal

TORRANCE, California — Toyota Motor Corp. says its North American production is back to normal levels after a six-month slowdown following the March earthquake and tsunami in Japan.

Toyota builds 12 models in North America, including the Camry, RAV4 and Tacoma pickup. Together, they account for nearly 70 percent of Toyota's U.S. sales.

The company said Tuesday it's also on track to open its 14th North American plant in Mississippi. That plant will start making the Corolla in October.

Toyota plans to use overtime and Saturday shifts to help replenish inventory at dealerships.

The company originally thought its production slowdown would last until the end of this year, but it was able to get parts from suppliers earlier than expected. Production in Japan has also returned to normal levels.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Automakers are going back to the future in '12

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Revamped versions of some of America's best-known cars — the Toyota Camry, the Chevrolet Malibu, the Ford Taurus, the Volkswagen Beetle, the BMW 3 Series — are all going on sale in the 2012 model year. The industry hopes that as buyers trickle back after the economic slump, they'll be delighted by new styling, significantly better fuel economy and, in the Camry's case, lower prices.

While gas prices have moderated since the spring, automakers say efficiency remains one of buyers' top considerations, and they'll have plenty of new gas sippers to choose from.

The new Chevrolet Sonic subcompact and redesigned Hyundai Accent, Nissan Versa and Kia Rio are all expected to get close to 40 miles per gallon. Toyota is releasing the Prius V, a wagon version of its wildly popular Prius hybrid, that's expected to get 43 mpg. There will be several new small cars on the market, including the Mini Coupe, Scion iQ, an as-yet-unnamed Dodge and the sporty Hyundai Veloster.

And for those who don't want to use any gas at all, electric carmaker Tesla will be bringing out an all-electric family sedan called the Model S, while Ford will release an all-electric Focus.

But driving enthusiasts, take heart. There will be plenty of brawn on the market, too. The 2012 Jaguar XKR-S coupe is one of the fastest Jaguars ever built, capable of accelerating to 100 miles per hour in 8.7 seconds. Jeep is releasing the Grand Cherokee SRT8, a performance version with a 470-horsepower Hemi V-8. The fifth generation of the BMW M5 sports sedan boasts a 560-horsepower V-8. Even the little Fiat 500 will be getting an Abarth sport edition.

Here is a rundown of new cars that will go on the market between now and next fall:

Acura
TL: Refreshed 2012 version went on sale last spring. Gets new front and rear styling, noise and vibration improvements and a six-speed automatic transmission. City fuel economy goes to 20 miles per gallon and highway to 29, an increase of 3 mpg over the 2011 model. Base price is $36,490 including shipping.

Audi
A6: The big luxury sedan is all new for 2012 with styling that matches the rest of the German automaker's car lineup. The company used aluminum body panels and a steel frame to cut weight by 78 pounds from its predecessor. The new version also has an aluminum suspension. It will be powered by two engines, a 3-liter supercharged V-6 with 310 horsepower and a 2-liter turbocharged four-cylinder with 211 horsepower. Prices start at $42,595 including shipping.

A7: The five-door fastback coupe also is all new for 2012, powered by a 310-horsepower V-6 engine and standard all-wheel-drive. It also has aluminum and steel construction and comes standard with 18-inch wheels, all-season tires and a leather interior. Prices start at $60,125 including shipping.

A8: Gets a 6.3-liter 12-cylinder engine with 500 horsepower.

TT RS: Gets the RS nameplate in the United States with a turbocharged 360-horsepower 2.5-liter four-cylinder engine that goes from zero to 60 in 4.1 seconds. The RS starts at $57,725 including shipping.

Bentley
Continental GT: Bentley has fiddled with the V-12 engine on the Continental GT coupe to squeeze out 15 more horsepower, bringing it to a total of 567. What else would you expect from a six-liter engine that gets 19 mpg on the highway? The GT can go from zero to 60 miles per hour in 4.4 seconds and reaches a top speed of 198 mph. Inside, there's a new 8-inch touchscreen in the dash with navigation and other controls, and luxury touches like hand-sewn, fluted leather seats. The GT starts at $189,900.

BMW
M5: The fifth generation of this premium sports sedan is set to go on sale in the spring. The new M5 will have the most powerful engine ever fitted in a series-produced BMW mated to a new, seven-speed double clutch transmission. The V-8 is expected to get up to 560 horsepower, 10 percent more than its predecessor, and 500 pound feet of torque, a 30 percent increase. But BMW says fuel economy will improve 30 percent. A driver's footrest and standard iDrive 10-inch dashboard control screen are among the standard perks. Pricing and exact fuel economy will be released closer to the M5's arrival in dealerships.

3 SERIES: An all-new 3 Series midsize sedan is scheduled to be released this spring as a 2013 model. Few details are available, although spy photos have been popping up on the Internet. BMW is expected to offer a turbocharged, direct-injected four-cylinder engine on the entry-level 328i, instead of a V-6. It's expected to get more horsepower and torque than the current V-6, but will get far better fuel economy. Pricing hasn't been announced, but the current 3 Series starts at $34,600.

Buick
VERANO: The luxury version of the Chevrolet Cruze aimed at the Lexus IS 250 and Acura TSX goes on sale in the fall of 2012. It's powered by the same 2.4-liter, 177 horsepower, four-cylinder engine as the Regal, with a zero-to-60 time of eight seconds and an estimated 31 mpg on the highway. A turbocharged 2-liter engine will come later. General Motors promises that the car will be among the quietest in its class. It's starting price is $23,470 including shipping.

Cadillac
General Motors' luxury brand is getting a little stale, but help is coming in the 2012 model year in two key market segments where it does not now compete.

ATS: The ATS, a rear-drive small car aimed squarely at the BMW 3 Series, will debut in the summer. GM hasn't released many details, but teaser pictures look like a shrunken Cadillac CTS sports sedan with a high rear and sloping hood. We're not sure what will power the thing, but there has been speculation about a turbocharged 2.0-liter four cylinder and a 3.8-liter V6. GM says the car has to perform, handle and ride better than the BMW, and its engineers are working to make sure that comes true. No price was released, but it's expected to come in under the lowest-price 3 Series sedan, the 328i, which starts at $34,600.

XTS: Cadillac hasn't had much to compete with in the big front-wheel-drive part of the market, but that also will change in the spring with the debut of the XTS. The car is likely to have a soft ride and probably won't be a road burner. GM executives have said it's aimed at the traditional Cadillac buyer, and that means senior citizens, few of whom value cornering and zero-to-60 times. But it's likely to get good gas mileage for its size. No details were released about engines, transmissions or price of the car, to be built in Ontario.

Chevrolet
SONIC: The General gets serious about selling mini-cars in the U.S. for the first time with the Chevrolet Sonic, an Americanized version of a new tiny global vehicle. The Sonic comes as a four-door sedan and a five-door hatchback, and it has the same engines as its bigger brother, the Chevrolet Cruze. That means the Sonic will be faster from zero to 60 and should get better gas mileage than the Cruze, upwards of 40 mpg on the highway. The base engine in the Sonic is GM's old 1.8-liter, 135 horsepower four banger. Drivers also can elect the Cruze's 1.4-liter turbocharged engine with 138 horsepower. Five-speed manual and six-speed automatic transmissions are available. GM engineers promise that the car will handle better than its main competitors, the Ford Fiesta and Hyundai Accent. With a base price of $14,495 including shipping, it's pricier than some competitors, but GM says it has more standard equipment, including 10 air bags, air conditioning and alloy wheels. It's due in showrooms this fall.

CAMARO: The all-powerful Chevrolet Camaro ZL1, equipped with massive 6.2-liter, 550-horsepower supercharged V-8 engine, is a new version of the venerable muscle car. General Motors borrowed the name from a 1960s all-aluminum racing engine. The ZL1, due out early in 2012, will look different from the existing Camaro with a new front grille and carbon fiber center section of the hood. The car will have a "track-ready" suspension, high-performance six-speed manual transmission and huge brakes. Performance numbers haven't been released, but the Cadillac CTS-V, with same engine, goes from zero to 60 mph (100 kph) in a crazy-fast 3.9 seconds with a top speed of 191 mph. No price has been announced.

MALIBU: An all-new midsize car built on European underpinnings comes out early next year as a 2013 model, replacing a car that was good in its day but has been passed up by the competition in the highly popular segment. GM says it will have an all-new, 190 horsepower, 2.5-liter four-cylinder engine with direct fuel injection, which makes it more efficient than older engines. The company promises a wider, more athletic stance and handling that's comparable to more expensive sport sedans. GM also brags that it will have best-in-class aerodynamics for better fuel efficiency. Mileage for the base model hasn't been released yet. The current car gets 22 in the city and 33 on the highway. An eco version of the 2013 Malibu with GM's e-Assist technology, which shuts off the engine when the car stops for traffic lights and uses an electric motor to help it accelerate, is supposed to get 38 mpg on the highway and 26 in the city. It also has 10 air bags. GM has not released the price.

Chrysler
300 SRT8: The flagship brand gets a pavement-eating version of the 300 luxury sedan, powered by a 6.4-liter Hemi V-8 with 470 horsepower. It's supposed to go from zero to 60 in the high 4-second range with a top speed of 175 mph. Chrysler promises great handling, too.

Dodge
TOP-SECRET COMPACT: With the U.S. auto market moving toward compact cars for fuel economy and cost reasons, Dodge has been left at the curb with lackluster Caliber. But the new Chrysler-Fiat company is promising far better things with the debut of a new compact sedan in the second quarter of next year. The name hasn't been released yet, but it's code-named "PF," and it's based on the stylish Alfa Romeo Giulietta. The sporty Italian compact is powered by engines ranging from a 1.4-liter turbo with 120 horsepower to a 235 horsepower turbocharged and direct-injected four-cylinder. Alfa also has some small diesels powering the Giulietta, but it's unlikely they will come to the United States. Dodge has released no information on the car but says it will debut at the Detroit auto show in January.

VIPER: The ultimate roadster makes a comeback in 2012 after a one-year absence. Chrysler says it will look different from the 2010 version and will handle better with improvements to its chassis. Horsepower is likely to increase from the 2010 version, which had a whopping 600 with a special V-12 engine. The company has released little information on the car.

CHARGER SRT8: Gets a 470 horsepower, 6.4-liter Hemi V-8 that features 45 more horsepower and 50 more lb.-ft. of torque than its predecessor. Zero-to-60 time in the high 4-second range.

Fiat
FIAT 500 ABARTH: Named for Italian race-car maker Abarth, which is now part of Fiat, the sportier version of the Fiat 500 is scheduled to go on sale in the United States in the first half of 2012. The 500 Abarth is currently sold in other countries with a 135-horsepower 1.4-liter engine, but the U.S. version could get Fiat's turbocharged 170-horsepower 1.4-liter. Fiat plans to announce more in November at the Los Angeles Auto Show.

FIAT 500 CABRIO: The 2012 Fiat Cabrio convertible went on sale earlier this summer. Its fully automatic cloth top can retract at speeds of up to 60 mph. Drivers can choose from three cloth top colors — red, black or tan — to go with the 14 exterior and 12 interior color combinations. The 101-horsepower, four-cylinder engine can get up to 38 mpg when paired with a five-speed manual transmission. The Cabrio starts at $19,500.

ELECTRIC FIAT 500: Fiat plans to sell an all-electric version of the Fiat 500 in the second half of 2012. No other details have been released.

Ferrari
FF: New for 2012, the FF is Ferrari's first four-wheel-drive car. The company says the FF also is its most powerful four-seater ever. It has a new 6.3-liter V-12 with 651 horsepower and can go from zero to 62 mph in 3.7 seconds. The price hasn't been released, but Ferrari says it will be around $300,000.

Ford
ELECTRIC FOCUS: Ford's first all-electric car, the 2012 Ford Focus Electric, goes on sale at the end of 2011. Ford hasn't said how many miles the car will be able to go on a charge, but says it will be competitive with other electric cars like the Nissan Leaf, which has a range of around 73 miles. Ford is also releasing the sporty Focus ST in the latter half of 2012, a specially tuned version with a turbocharged four-cylinder with 247 horsepower. Pricing on those models hasn't been announced.

TAURUS: Ford is releasing a redesigned Taurus sedan in the spring as a 2013 model. It's lower and wider, for a more aggressive look, and will have the MyFord Touch voice-activated entertainment and navigation system. It will also get Ford's 2.0-liter EcoBoost four-cylinder engine, which will give it 237 horsepower but keep fuel economy at 31 mpg.

VERTREK: Ford is expected to replace the boxy, aging Escape small SUV with a new small SUV in early 2012. The sleek Vertrek concept, introduced at the Detroit auto show in January, gave a strong hint at what it will look like, but Ford hasn't released other details.

Honda
CIVIC: Redesigned for 2012 but doesn't look dramatically different from the old model. New Civic has a re-engineered 1.8-liter four-cylinder engine that produces 140 horsepower and boosts fuel economy. There's also a more powerful 2.4-liter four-cylinder engine with 201 horsepower in the Si performance version, and a new powertrain in the Civic Hybrid that boosts combined city-highway fuel economy to 44 mpg with a new lithium-ion battery. The gas-powered "HF" — or "high fuel economy" — model gets 41 mpg on the highway. Prices start at $16,355 for a stripped-down DX model, including shipping.

CR-V: The fourth generation of the small crossover SUV vehicle gets a redesign with a sleeker exterior and improvements that make it more fuel efficient. Details haven't been released, but the new CR-V goes on sale in late 2011.

PILOT: The venerable people hauler gets an update with sleeker styling and better gas mileage due to aerodynamic refinements. Goes on sale in September. Further information wasn't released. Prices start at $29,280 including shipping.

Hyundai
ACCENT: The revamped fourth-generation subcompact went on sale in the summer. It has Hyundai's 1.6-liter direct injection engine that puts out 138 horsepower and gets 40 mpg on the highway. Fuel economy is 18 percent better than its predecessor with a manual transmission and 11 percent better with an automatic. It has electronic stability control and six airbags standard. Hyundai claims it has the roominess of a compact even though it's smaller. Base price is $13,205 with a manual transmission, including freight.

GENESIS: Hyundai's full-size luxury entry gets an update with an aggressive grille and front fascia. The 3.8-liter V-6 gets direct fuel injection to boost horsepower by 15 percent to 333, as well as improved gas mileage. Hyundai adds an R-Spec model with a new 5-liter direct injection engine that makes 429 horsepower. All engines get a Hyundai-developed eight-speed transmission. Prices start at $35,050 including shipping.

VELOSTER: The sporty three-door compact coupe has a 138-horsepower, 1.6-liter direct-injection four-cylinder engine and a six-speed manual transmission or dual-clutch automatic and will get 40 mpg on the highway. It has a hatch, one large door on the driver side and two shorter doors on the passenger side. The Veloster will start at $18,060, including shipping, when it goes on sale this fall.

Infinity
JX: Nissan plans to introduce the JX, a seven-passenger crossover, in the spring of 2012 as a 2013 model. The company says the all-new vehicle will have Infiniti's elegant design, flexible seating with easy access to the third row and advanced technology. The company plans to release more details at the Los Angeles Auto Show in November.

Jaguar
XKR-S: The 2012 XKR-S coupe is one of the fastest Jaguars ever built, capable of accelerating to 100 miles per hour in 8.7 seconds. It has a top speed of 186 mph. The XKR-S's five-liter V-8 engine, now in its third generation, has been supercharged to give it 550 horsepower, but also has more precise direct injection to save fuel. The XKR-S gets 22 miles per gallon on the highway. It starts at $132,875, including shipping.

Jeep
GRAND CHEROKEE SRT8: The top-selling Grand Cherokee SUV gets a souped-up version from Chrysler's Street and Racing Technology (SRT) team. The high-performance SUV will go from zero to 60 in 4.8 seconds with a top speed of 160 mph, which is comparable or faster than many performance sedans. It's the most powerful Jeep ever with an all-new 6.4-liter Hemi V-8 with 470 horsepower. The company also says it's the best-handling Jeep ever with a new adaptive damping suspension.

Kia
RIO/RIO5: Kia has redesigned its compact sedan and hatchback, giving them more power — 138 horsepower — while still improving highway fuel economy to 40 mpg. The Rio also has some luxurious options, including a hands-free entertainment system and back-up camera. Pricing hasn't been released for the Rio, which is expected to go on sale in October, but its predecessor started at $12,990.

CADENZA: Kia's replacement for the flagship Amanti sedan is expected in the summer. Kia hasn't released details, but dealers say it will have a more luxurious interior and a 165-horsepower four-cylinder engine or 290-horsepower V6.

Lamborghini
AVENTADOR LP 700-4: The new model has a V-12 engine that puts out 700 horsepower. The four-wheel-drive car can go from zero to 62 mph in 2.9 seconds. It costs $389,995 including shipping.

Land Rover
RANGE ROVER EVOQUE: Land Rover is targeting new entry-level customers with the Evoque, a small crossover that comes in either three- or five-door configurations. Land Rover bills the Evoque as its lightest, most fuel-efficient vehicle ever, with highway fuel economy of 28 mpg. But the crossover still has power, thanks to its new 240-horsepower, 2.0-liter four-cylinder engine, and off-road capability. It also has lots of luxury features, including a heated windshield and steering wheel. The Evoque starts at $45,995, including shipping.

Lexus
GS 350/450h: Lexus plans to release both the gas version and the hybrid version of the midsize GS sedan early next year as 2013 models. The GS has a new look, with an aggressive, hourglass-shaped grille and a clean design meant to maximize aerodynamic efficiency. Inside, Lexus put more emphasis on the driver by lowering the steering wheel, improving the field of vision and making the seats more supportive. There are nice perks, too, like 18-way power seats. The 350 has a 3.5-liter V-6 engine with 306 horsepower. The 450h mates that engine to an electric motor, boosting horsepower to 338. Fuel economy numbers haven't been released, but Lexus says the 450h will have 30-percent better fuel economy than the outgoing GS hybrid, which gets 25 mpg on the highway.

Maserati
GRANTURISMO CONVERTIBLE: Gets a sport version for 2012 with a 4.7-liter, 444-horsepower V-8 engine, improved handling, new seats and a sportier sound.

GRANTURISMO MC COUPE: Maserati adds a coupe at the top of the MC line and says it's the fastest and best-handling of its cars. The coupe gets the same 444 horsepower V-8 as the GranTurismo convertible plus aerodynamic body work. It has a top speed of 185 mph.

Mazda
CX-5: The CX-5 small crossover, due out in February as a 2013 model, has a new 2.0-liter, four-cylinder engine that is expected to significantly improve fuel economy. Mazda plans to release more details this fall at the Frankfurt Auto Show.

MAZDA5: The 2012 Mazda5, a small, six-seat minivan that went on sale last winter, has distinctive, swooping lines carved into its sliding doors and more interior room. There's a new, 157-horsepower four-cylinder engine that gets up to 28 miles per gallon. For a sportier ride — or to help you forget you're in a minivan — there's a six-speed manual transmission and an optional spoiler. The Mazda5 starts at $19,990, including freight.

Mercedes-Benz
C-CLASS: A two-door coupe is new for 2012, and the four-door sedan has been refreshed with new bumpers, front grille, headlights and an aluminum hood. The interior also was redesigned. There's a choice of two new direct fuel injection engines with a seven-speed automatic transmission. Depending on trim line, available engines include a turbocharged 1.8-liter, 201-horsepower four-cylinder and a 3.5-liter V-6 with 302 horsepower. The high-performance C63 AMG has a 6.3-liter V-8 with 451 horsepower.

CLS-CLASS: The four-door coupe is all new for 2012 with all models powered by new biturbo direct-injection V8 engines. The CLS550 is powered by a 4.6-liter V-8 with 402 horsepower, yet it gets 17 mpg in the city and 26 on the freeway. The CLS63 AMG has a stop-start system that stops the engine at traffic lights and restarts it almost instantly when the light turns green. The high-performance version has a 5.5-liter V-8 with 518 horsepower. An optional performance package raises output to 550 horsepower.

M-CLASS: The all-new third generation of the SUV hit showrooms earlier in the summer. It sits about an inch lower than its predecessor and is slightly longer and wider. The ML350 BlueTec diesel version has more power than in the past with 240 horsepower, while the ML350 4Matic gets a new direct-injection V-6 engine with 302 horsepower. It starts at $49,874, including shipping.

SLK-CLASS: The third-generation small SLK Roadster is new for 2012. The SLK250 is powered by a 1.8-liter, four-cylinder engine that has 201 horsepower, while the SLK350 is powered by a 3.5-liter, 302 horsepower V-6. The high-performance SLK55 AMG is the most powerful SLK ever, with a 5.5-liter V-8 with 415 horsepower, and it can go from zero to 60 mph in 4.5 seconds. It also features cylinder shutoff to get better gas mileage. The SLK starts at $55,675, including shipping.

Mini
COUPE: The mini-car from BMW that made tiny trendy comes out with its first two-seater, the Mini Coupe. Powerplants range from a 121-horsepower four-cylinder in the Coupe and 181 horsepower in the Cooper S Coupe to the MINI John Cooper Works Coupe, with 208 horsepower. The car has a hard-shell, sloping roof and rear spoilers, as well as a hatch and 9.8 cubic feet of luggage space.

Mitsubishi
LANCER: SE model gets all-wheel drive with its 2.4-liter four-cylinder engine and a snowbelt state focus. Heated seats and 16-inch alloy wheels are added. Pricing hasn't been released, but the 2011 model started at $15,295.

Nissan
GT-R: Nissan has modified the 3.8-liter, V6 engine on the 2012 GT-R sports car so it now gets 530 horsepower, compared to 485 on the previous model. To reduce air resistance, Nissan has enlarged the grille openings and added lighter weight, aluminum-forged 20-inch wheels. The GT-R will also be available in a new "Black Edition," with custom black-and-red leather seats and metallic black wheels. The car also gets slightly better fuel economy — 23 miles per gallon on the highway, compared to 21 on the 2011 model. The 2012 GT-R is available now at 650 select Nissan dealers, starting at $89,950.

VERSA: Nissan has redesigned the Versa small car from the ground up. It has a new, lighter underbody for more nimble driving, a new, more fuel-efficient engine and transmission, and a more aerodynamic design. Nissan says the Versa will get 30 miles per gallon in the city and 38 on the highway, an improvement of around 4 mpg over its predecessor. The 2012 Versa went on sale in August and starts at $10,990, excluding shipping, for a manual transmission and hand-cranked windows. If you want power windows and an automatic, the Versa SV starts at $14,560.

Porsche
911 CARRERA: The seventh generation of the 911 Carrera, due out in February, is 4 inches longer but 100 pounds lighter thanks to its new aluminum and steel frame. Porsche said the 350-horsepower, 3.4-liter boxer engine will also save more fuel than previous models, thanks to an automatic stop/start function that reduces engine usage, and other improvements. The sportier 911 Carrera S will have a 400-horsepower, 3.8-liter boxer engine, an improvement of 15 horses over the previous model. The 2012 Carrera will be officially unveiled at the Frankfurt Auto Show in September. The 911 Carrera Coupe will start at $82,100, excluding shipping, while the Carrera S will be $14,000 more.

Rolls-Royce
GHOST: Gets an extended wheelbase model with an additional 6.7 inches of interior space over the standard Ghost. It costs $290,000.

Saab
9-5: Gets a wagon version and choice of two engines, a 2-liter four or a 3-liter V-6. So far, it's unclear how Saab's bankruptcy protection filing in early September will affect sales, but Saab says the filing doesn't affect Saab North America.

Scion
SCION iQ: Scion's iQ minicar, which has been sold as a Toyota in Europe and Asia since 2008, goes on sale on the West Coast in October and will come to the rest of the country over the following six months. It's 120 inches long, or about 4 inches longer than the Fiat 500, and its 94-horsepower engine gets 37 miles per gallon. It starts at $15,995, including shipping.

FR-S: Scion debuted a concept version of this rear-wheel-drive sports car at the New York Auto Show in April, and said something very similar will be out next year. Scion is using a Subaru 2.0-liter boxer engine, because of its flat size and shape, but few other details are known. Scion says the car will cost less than $30,000.

Subaru
IMPREZA: The fourth-generation of the compact debuts with new four- and five-door designs, more agile handling and better fuel economy. A new 2-liter engine gets the all-wheel-drive car to 36 mpg on the highway and 27 in the city, 30 percent better than its predecessor. Trunk and cargo room are increased. The Impreza starts at $18,245, including shipping.

Tesla
MODEL S: Electric car maker Tesla hopes to extend its customer base beyond its Roaster sports car with the Model S, a sedan due out in the middle of 2012. The sedans will cost around $50,000 — half the price of a Roadster — and will allow drivers to get different battery packs based on their needs, from one that gets 160 miles per charge to one that gets 300. Tesla said it had 5,300 reservations for the sedan at the start of this summer; it plans to produce 5,000 Model S sedans in 2012.

Toyota
CAMRY: Toyota unveiled the new Camry sedan in August. It's quieter and roomier than the 2011 model and gets significantly better fuel economy. The four-cylinder engine gets 35 miles per gallon on the highway, while the hybrid version gets 41 mpg. Toyota will also offer Entune, a new entertainment system that lets drivers connect to mobile phone applications like Pandora through voice commands or a touch screen. The Camry goes on sale in October and starts at just over $22,000, including shipping.

PRIUS V: The five-passenger, wagon version of the wildly popular Prius hybrid goes on sale in October, a launch that was delayed by several months because of the earthquake in Japan. The "V" stands for "versatility," with 6 more inches of cargo space. It's also slightly taller and wider. The Prius V is expected to get 42 miles per gallon. Toyota hasn't announced the price.

YARIS: The three-door and five-door hatchback versions of the Yaris small car are getting a makeover. They've got a sportier design and are nearly 3 inches longer than the 2011 models, improving cargo space. The Yaris starts at $14,875, including shipping.

Volkswagen
JETTA: Gets a GLI high-performance version for 2012 with a starting price of $23,495, excluding shipping. The GLI is powered by a 2-liter turborcharged gas engine with 200 horsepower. A six-speed manual transmission is standard, with a dual clutch automatic optional.

GOLF: Golf R version arrives early next year with a high-output version of the 2-liter turbocharged four, with more than 250 horsepower.

NEW BEETLE: The company's iconic Beetle gets a squat, sloped design for 2012 with 2.5-liter five-cylinder and 2-liter turbocharged four-cylinder engines. The 170-horsepower in-line five-cylinder engine gets 22 mpg in the city and 29 on the highway. Prices start at $18,995 excluding shipping.

PASSAT: The midsize Passat is all-new with a significantly lower price than its predecessor at $19,995, excluding shipping. The base model has a 170-horsepower 2.5-liter five-cylinder engine. It also comes with a 2-liter TDI diesel, a turbocharged 140-horsepower 2-liter four-cylinder engine and a 3.6-liter V-6 with 280 horsepower.

TIGUAN: The small crossover SUV gets an update with a sleeker look, and a redesigned grille and redesigned taillights. The transmission was also tweaked to improve fuel economy.

Volvo
S60: The 2012 S60 midsize sedan has a sportier design and improved fuel economy, now up to 30 mpg. The base engine is a five-cylinder with 250 horsepower. Volvo is also offering the world's first pedestrian detection technology. The S60 starts at $32,025, including shipping.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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