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January 15th, 2008

Detroit auto show: Tata’s Nano is talk of show

Posted by: Ben Klayman

nano1.jpgTata’s $2,500 Nano car (pictured left) may not have been unveiled at the Detroit auto show, but that didn’t stop it from being the talk of the show.

Auto executives said the car could have far-reaching impact. Ford’s head of Asia Pacific, John Parker, certainly thinks so.

“It is a groundbreaking product,” Parker told reporters. The car will “cause people to think differently about the car. I have a lot of respect for Tata.”

Calyon Securities analyst Mark Warnsman in a research note released during the show pointed out that the Nano took its bow this month in India almost 100 years after Ford revolutionized the global auto industry with the Model T car. 

“Will the Nano revolutionize the global auto industry in the way that the Model T originally did? In brief, our answer is no, but there are a number of aspects of the Nano that we do find interesting,” he said.

“The Nano may not be revolutionary in its technology, but it is state-of-the-art in the way it has tweaked existing technologies to target an as-yet untapped segment of the market,” Warnsman added. “For this, it will be worthy of study, and imitation, by automobile manufacturers everywhere.”

Nissan executive vice president Carlos Tavares was very interested in the Nano’s reception last week. The Japanese automaker, along with partner Renault and India’s Bajaj Auto Ltd, is studying whether it can profitably develop a $3,000 car to rival the Nano 

“We’re very excited to see the reception that the Nano got,” Tavares told Reuters. “It’s very impressive. Hopefully they will deliver on the promise, and of course we will benchmark against the Nano.”

Other executives heard talking about the impact of the Nano, which will be offered in India later this year, included General Motors vice chairman Bob Lutz and AutoNation CEO Michael Jackson.

(Photo: Reuters)

January 15th, 2008

Detroit auto show: AutoNation CEO calls Chinese cars worst of show

Posted by: Ben Klayman

jackson.jpgSome day cars built by Chinese automakers may be compared with the likes of Toyota and Honda, but not today, according to the CEO of the largest publicly traded U.S. car dealer.

AutoNation’s Michael Jackson (pictured right) said at the Detroit auto show that the worst cars at the event were the Chinese-built cars.

“Go down to the basement,” he said of the lower level of the convention center in response to a question about his opinion of the worst car. “There are a few products from China.” 

Jackson said he was approached about selling Chinese cars when they come to America, but he had no interest.

“I say not with me,” he said. “I don’t want to put my name on that.” 

Jackson said he would consider selling Chinese-made vehicles if they were built in partnership with a major automaker. Chrysler signed a deal last year with China’s Chery, which will build small cars for Chrysler to sell in America. However, those cars won’t be here any time soon.

“I don’t want to be left holding the bag when something goes kaplooey,” he said.

pickup.jpgAs for best in show, Jackson said he was impressed with the remodeled Ford F-150 pickup truck (pictured left). “You can’t understate the importance of this vehicle. It will remain the best-selling vehicle in America.”

He also liked General Motors’ Cadillac CTS coupe concept car.

(Photos: Reuters)

January 15th, 2008

Detroit auto show: Dodge wants to show its softer side

Posted by: Ben Klayman

dodgelogo.jpgSay goodbye, or good riddance, to scantily clad models tossing footballs and other old Dodge promotions aimed solely at young men.

Chrysler’s new head of marketing, Deborah Meyer, said at the Detroit auto show that the automaker wants a so-called “New Day” for the historically macho brand’s growing cadre of female customers.

“We aren’t going to do that anymore,” Meyer said of past promotions and ads that skewed toward young men.

Past Chrysler ads portrayed a dog being electrocuted beside a Dodge Nitro SUV and a fairy turning a tough-looking man who was walking a big dog into a yellow-clad man walking four small dogs on pink leashes — catching flak from animal rights and gay rights groups, respectively.

Meyer, who Chrysler hired away from Toyota’s luxury Lexus division in mid August, said about 64 percent of Dodge car buyers now are under age 45, and a large percentage of those buyers are women.

“Dodge has always stood for power, but there is also a real feeling that Dodge stands for empowerment too,” Meyer told Reuters. “We are attracting a lot of young people and a lot of women.”

As for the infamous sponsorship of the pay-per-view Lingerie Bowl at the halftime of the Super Bowl four years ago, “Never again,” Meyer said. “No more lingerie bowl.”

(Photo: Chrysler)

January 15th, 2008

Detroit auto show: It’s hemp, not marijuana in your car

Posted by: Ben Klayman

hemp.jpgWhat do MacGyver, the A-Team and the professor on Gilligan’s Island have in common? Easy; those guys could recycle spare parts to make something useful.

Well, automakers are taking a cue from those TV heroes as they increasingly use natural fibers from such materials as hemp, coconut, bamboo and kenaf in car interiors. The idea is to make the cars feel less plastic.  

“What is going to be key for cars is the way the interior feels, smells, sounds and looks like,” Philippe Aumont, a vice president at French car parts group Faurecia, told Reuters at the Detroit auto show.

Statistics in Europe show most people buy their cars without a test drive, so little things like the touch of a dashboard or feel of a steering wheel can make a difference, he said.

Kenaf, for instance, can be used in dashboards, and bamboo fibers can strengthen seats. Coconut is used in the ’shell’ of the car interior and hemp in the lining of doors.

Hemp is the common name for plants of the Cannabis family, although the term is typically used to refer only to kinds for industrial use. In other words, it is not marijuana and therefore legal.

January 15th, 2008

Detroit auto show: Chinese company suggests electric car for Bush ranch

Posted by: Ben Klayman

chinacar.jpgMost U.S. auto industry officials when asked about the expected Chinese invasion of the American market in the next several years react with scorn or fear (or a mixture of both).

One Chinese company, however, showed at the Detroit auto show that it can evoke laughs.

Bei Jing Li Shi Guang Ming Automobile Design Co displayed three electric cars, sporting names like “The Book of Songs” and “A Piece of Cloud,” but it was the company’s suggestion for its “Detroit Fish” amphibious vehicle that raised eyebrows.

On the small information stand next to the bulbous, yellow 5-seater was a separate plaque that read: “Suggestion: Renowned environmentalist - President Bush, ordering this car for his Texas ranch.” 

A spokeswoman at the Chinese company’s stand said it was a joke. Although to make sure everyone got the punch line, it was translated into Chinese characters.

The Bush administration has been criticized for not protecting the environment enough.

truck.jpgThe “Fish” may lack the necessary toughness, however, as President Bush often uses a Ford F-Series pickup truck (pictured left) on his ranch, which has been lauded for being eco-friendly.

(Photos: Reuters)

January 15th, 2008

Detroit auto show: GM has eyes for Mini market

Posted by: Ben Klayman

mini.jpgWho says cute little British cars can have all the fun and the market to themselves?

General Motors’ North American sales chief said at the Detroit auto show that the U.S. automaker is weighing a rival for BMW’s Mini luxury small car (pictured right).

“We are not ready to announce anything, but we are looking at it very seriously,” Mark LaNeve told Reuters. “There is a lot of space in the luxury market that we are not currently occupying. If you look at sophisticated urban transportation, the Mini Cooper, the Audi A1 … that is certainly a segment that has some opportunity for us.”

Mini is seen as a design icon and some owners show their love for the British brand’s roots by emblazoning the Union Jack flag on the car roof.

While most automakers have stayed away from the premium small-car segment, the adoration and higher prices it attracts than other small cars has made some take a second look. In addition to GM, Toyota also has said it is exploring that market.

When asked whether consumers might see such a car from GM soon, LaNeve responded “Some time in the future, yes.”

Separately, GM unveiled three concept minicars at the show and said they could be launched in 18 months in Europe and Asia, but there were no immediate plans to bring them to the United States unless gas prices continued to rise.

(Photo: Reuters)

January 15th, 2008

Detroit auto show: McCain in the driver’s seat (of a car)

Posted by: Ben Klayman

mccain.jpgPresidential candidate John McCain joined his rivals, Mitt Romney and Mike Huckabee, at the Detroit auto show, gawking at the latest hybrid powered cars ahead of the hotly-contested Republican primary on Tuesday.

The Arizona senator and former fighter pilot seemed at ease sitting in Chrysler’s Dodge Zeo concept car (pictured right with Chrysler CEO Bob Nardelli) with its batwing door and glass roof.

In what may or may not be foreshadowing of Tuesday’s vote, McCain sat in the driver’s seat. Connecticut Sen. Joseph Lieberman, who has stumped for votes for McCain in several states, sat next to him and joked about wanting to own a version of the orange concept car.

McCain, like Romney and Huckabee, met with Nardelli and Chrysler co-President Jim Press, who later said McCain was very interested in alternative fuels and helping the automakers with legislation in Washington. Nardelli was the only CEO to meet with all three presidential candidates as Ford sent Mark Fields, head of the Americas, and General Motors sent a top Chevrolet executive. 

Romney, whose father was governor of Michigan and led a company that Chrysler eventually absorbed, spent the most time of the three at the show. When asked what kind of cars he prefers, he responded, “I love sporty cars.”

Romney said he owned a Ford Mustang, a Cadillac model from GM, a Chevrolet Silverado pickup truck and a 1962 American Motors Rambler given to him by his children.

huck.jpgHuckabee (pictured left with wife in a Ford concept) said at the GM stand: “I drive a 1995 Silverado with 200,000 miles on it. It may be time to trade it in.” He added he would consider a hybrid.

Despite urging from some in the crowd to visit foreign automakers, all three candidates stuck to the stands of the Big 3 U.S. automakers, whose heavily unionized workers will be going to the polls on Tuesday.

(Photos: Reuters)

January 14th, 2008

Detroit auto show: Renault has entered the building

Posted by: Ben Klayman

renaultlogo.pngRenault doesn’t sell cars in the world’s biggest auto market, and for that reason historically has not participated in the Detroit auto show. 

That didn’t stop the group’s strategy director, Patrick Pelata — considered the group’s second-ranking executive – from walking around the exhibition with some other company executives during the media preview days. He was spotted checking out the interior of the Infiniti SUV of alliance partner Nissan.

Renault will roll out its own SUV in Europe in 2008, called the Koleos and made by its South Korean subsidiary Renault Samsung.

execrenault.jpgFor those wondering whether Pelata (pictured left) brought a friend with bigger credentials; Carlos Ghosn, the chief executive of both Renault and Nissan, was not at the show.

(Photo: Renault Web site)

January 14th, 2008

Detroit auto show: Writers’ strike complicates Nissan marketing plan

Posted by: Ben Klayman

mcnabb.jpgFans of “Lost,” “Desperate Housewives” and other top TV shows aren’t the only ones suffering from the Hollywood screenwriters strike as Nissan’s marketing efforts have been complicated by the battle.

Nissan North America senior vice president Mark McNabb (pictured right) said the two-month-old strike, which has halted production on virtually all scripted shows, was making it harder for Nissan to revamp its U.S. marketing.

“It’s making it very difficult for marketers,” he told Reuters of the walkout, which began in early November. ”Where do we want to go? Where do we want to spend money? The outcome of (the walkout) is going to be very important on what we do.”

The strike already claimed one victim in the world of marketing as the telecast of the bare-bones Golden Globes awards show drew far fewer viewers than usual.

January 14th, 2008

Detroit auto show: Volt in 2010 now a “stretch” for GM

Posted by: Ben Klayman

volt1.jpgGeneral Motors Corp’s touted all-electric plug-in Chevy Volt (pictured right) may not be built by the end of 2010 as it had hoped after all.
    
The automaker’s target is a “big stretch,” but it will not be changed, GM vice chairman and product chief Bob Lutz said at the Detroit auto show.

In fact, GM also said at the show that a plug-in Saturn Vue SUV could precede the Volt. And Japanese rival Toyota said it plans to market a test fleet of plug-in vehicles to companies or government agencies by the end of 2010.

While producing a lithium ion battery has not been a problem (and could be demonstrated by June), the project requires a complete re-engineering of a standard passenger vehicle, Lutz said.
    
GM garnered the spotlight at last year’s Detroit show when it said it would revive its once-failed idea of an electric car for the masses. 
    
It has been stung in the past by criticism, including a documentary movie, that it conspired to kill EV1. GM also has acknowledged it erred in allowing Toyota to paint itself with the “green” mantle due to the popularity of its Prius hybrid car.
    
lutz.jpgLutz (pictured left) has repeatedly said in the past that the Volt is not a public relations ploy. It has said the new program would build on what GM learned from the EV1, which was discontinued in 2003.

(Photos: Reuters)