James Franey
Automotive News

MUNICH -- BMW has killed plans to make the van-like Space Functional Concept.

Speaking at the unveiling of the German automaker’s 10-year business strategy, CEO Norbert Reithofer said “we decided it does not fit BMW’s image.”

“This is something the board discussed a lot over the last 12 months,” he told reporters at BMW’s headquarters in Munich on Thursday.

Instead, the German automaker will produce what it calls a Progressive Activity Sedan.

Reithofer said the car would create “an entirely new segment” but still retain “all the functionality of an MPV.”

Photographs taken of a camouflaged BMW prototype on the streets of Munich show a four-door sedan with a steeply slopped rear roof, similar in shape and angle to the X6 concept. That concept debuted last month at the IAA in Frankfurt.

BMW originally announced plans to make the Space-Functional Concept during the 2005 Geneva auto show. The car was expected to challenge the Mercedes-Benz R class starting in 2008.

BMW’s decision not to make the van comes as Mercedes continues to seek ways to sell the R class. That vehicle was introduced in 2006 amid much fanfare, but Mercedes has been forced to reduce the car’s price and add sales incentives to stimulate sales. In Germany, an equipment package worth 2,890 euros is being offered to lure buyers to the R class.

Mercedes sold just 6,939 R class units Europe wide in the first seven months of 2007, according to JATO Dynamics. Even so, that is a 7.8 increase from the same period the previous year.

Copyright 2007 Automotive News

Feb 7, 2007

Bob Gritzinger / Autoweek

 Ronald Reagan was president the last time Pontiac sold a rear-wheel-drive Grand Prix. The spiritual successor to General Motors' performance sedan from the past was unveiled today at the Chicago auto show, in the form of the 2008 Pontiac G8.

Due in dealerships early next year, the all-new performance sedan shares underpinnings with the Holden Commodore from GM's Australian subsidiary. Commodore went on sale in Australia in August 2006.

Pontiac will sell two G8s, a base model powered by a 3.6-liter V-6, rated at 261 hp and 250 pounds-feet of torque, with a five-speed automatic, and a GT running a 6.0-liter V-8, rated at 362 hp and 391 pounds-feet of torque, mated to a six-speed automatic.

Both transmissions will feature manual shift mode. A six-speed manual transmission will be available with the V-8 sometime after launch. The V-8 also will be equipped with cylinder deactivation technology. The GT also gets a standard limited-slip differential for improved traction.

 The Chicago show car, while representative of the production GT, offers a glimpse at some tuner touches: 20-inch chrome wheels (18s are standard, 19s are available), lowered ride height, high-performance brakes with painted calipers, custom interior trim with leather-wrapped dash, the Phantom Grey paint job and a conceptualized version of the Pontiac badge.

Some might argue GM Vice Chairman Bob Lutz didn’t stray very far from his BMW past for the G8s bold styling cues -- and we'd argue most BMW styling is worth cribbing. Regardless of the inspiration, the clean muscular lines and wheels-at-the-corners stance make an impressive design statement in this latest take on the Wide Track Pontiac tradition. Inside, the G8's uncluttered twin cockpit is highlighted by large round gauges and Pontiac's signature red lighting.

Underneath, all the good stuff developed by GM's rear-drive experts at Holden carries over to this first North American application of GM's new global rear-drive architecture. The four-wheel independent suspension uses MacPherson struts up front and a four-link coil-over shock setup at the rear. Stopping power comes from four-wheel antilock disc brakes with vented rotors. GT models get 1-inch larger brake discs.

 "The rear-wheel-drive engineering team has put together a simply spectacular car that captures the essence of Pontiac," says Pontiac General Manager John Larson. "We believe that the Pontiac G8 will rival competitors costing far more."

And just how much is that? When Lutz spilled the beans on the car back in January, sources suggested pricing starting at around $25,000 -- with just 30,000 to 50,000 copies available. If G8 can succeed where GM's last Aussie import -- the pricier Monaro-based Pontiac GTO coupe -- couldn't, maybe we won't have to wait through two Bushes and a Clinton for Pontiac's next rear-drive sedan.

Reuters / Nov 9, 2006

DETROIT -- Japanese automakers dominated an influential survey of the most reliable new vehicles that was released today, but General Motors and Ford Motor Co. both placed high with new models.

Consumer Reports magazine named 47 vehicles to its list of the most reliable for 2007. Of those, 39 were from Japanese automakers, including an industry-leading 21 from Toyota Motor Corp.

Honda Motor Co. had the second-highest tally, with 11 vehicles earning a most-reliable designation, including the newly released Honda Fit hatchback.

Ford Motor Co., which is trying to shift away from its loss-making reliance on pickups and SUVs, also scored well with several of its new cars.

Ford's Fusion topped the magazine's list of the most impressive new models, with the testing staff praising the car's "nimble handling and comfortable ride."

The Fusion and the Mercury Milan, which share the same platform, were named among the most reliable family cars, outscoring V-6 versions of the Honda Accord and Toyota Camry.

The Lincoln Zephyr, which also shares the Fusion platform, was named the second most-reliable upscale sedan after the 2007 Lexus ES 350 and ahead of Hyundai Motor Co. Ltd.'s Azera and the Acura TSX and TL from Honda.

A Ford spokesman said the quality ranking could help bring buyers back to the U.S. automaker, which has slashed production and is expected to be overtaken by Toyota as the No. 2 U.S. automaker next year.

"When people go out to see the Ford Fusion ... what they're going to find is bolder design and quality that ranks with the best in the world," spokesman Jim Cain said.

New versions the Chevrolet Tahoe and the GMC Yukon from GM made the list of most reliable large SUVs, just behind three offerings from Toyota: the Land Cruiser, Lexus LX and Sequoia.

David Champion, who oversees auto testing for the magazine, said the key for Ford and GM was whether the initial strong reliability ratings on the new models would be sustained, an area where Toyota and Honda have excelled.

"Whether they start out good and remain good remains to be seen," he said.

DaimlerChrysler AG was alone among major automakers in being shut out of the most-reliable list.

The magazine's testing staff called the Dodge Caliber one of the most disappointing new cars, citing what it called "unimpressive" mileage and a "poorly finished" interior.

In addition, eight Mercedes-Benz vehicles were named to the magazine's least-reliable list, the most for any brand.

Champion said many of the problems reported by Mercedes-Benz owners concerned glitches in the electrical, audio and power systems for their cars.

Mercedes-Benz spokeswoman Donna Boland said the reliability survey did not reflect the automaker's most recent efforts to work out bugs in those areas.

"We did have some issues, but I think the great majority of those have been resolved to the satisfaction of owners," she said.

A total of 20 vehicles on the least-reliable list were from U.S. automakers, including 12 from GM, five from Ford and three from the Chrysler group.

Chrysler group spokesman Sam Locricchio said he expected the automaker's stepped-up investment in quality in recent years would start to be reflected in coming reliability surveys.

"I think you're going to see some dramatic improvements," he said.

Of the 45 models on the magazine's least-reliable list, five were from Nissan Motor Co. Ltd., the only Japanese carmaker represented there.

Representatives for GM and Nissan could not be immediately reached for comment.

The magazine's new car buying guide, which was released today, bases its reliability rating on the results of an annual survey of the magazine's online and print subscribers.

The 2006 survey included responses on 1.3 million vehicles and asked readers to detail the serious problems they encountered with their cars and trucks.

Consumer Reports is published by the nonprofit Consumers Union. The magazine accepts no paid advertising. A full copy of its buying guide can be found at www.ConsumerReports.org.

 

Reuters / Oct 4, 2006

OTTAWA -- Canada's Conservative government has notified auto industry chief executives that it plans to impose mandatory vehicle emissions standards after a current voluntary agreement expires in 2010.

In a meeting brokered by Finance Minister Jim Flaherty, who has strong ties to the Ontario-based auto manufacturers, the government said on Tuesday, Oct. 3, that it would bring in tougher environmental rules for the industry after top-level consultations with industry representatives over the next few months.

Flaherty said all major industries would eventually be subject to new regulations, including oil and gas.

"We can't have one sector or industry not involved in environmental regulation and the effort for clean air and improving health in Canada," Flaherty told reporters after the meeting. "All sectors of the Canadian economy are involved in the regulatory effort. They will all be regulated."

The Conservatives are under criticism for dismissing the Kyoto agreement on curbing greenhouse gases as unworkable and have set out to show Canadians they are serious about the environment by drafting up their own "green plan", focusing on clean air.

Clean air legislation would be introduced "shortly," a government official said earlier on Tuesday.

In an usual show of force, ministers for the environment, transport, industry and natural resources attended Tuesday's meeting, facing off with the top five carmakers in Canada -- DaimlerChrysler AG, Ford Motor Co., General Motors, Honda Motor Co. and Toyota Motor Corp.

Buzz Hargrove, president of the Canadian Auto Workers, also participated and emerged slightly relieved because his worst fear -- California-style emissions standards -- was not confirmed.

"They certainly didn't say they're coming in with the California standards so I feel a little better in that sense," Hargrove said.

Canadian media had reported Environment Minister Rona Ambrose as eyeing California's stringent vehicle emissions rules as a model for Canada, something Hargrove said would spell disaster for workers.

"At the end of the day, after the debate is all over, they talked about mandatory standards, or regulations, that will kick in following the end of the MOU (current voluntary agreement) in 2010."

Carmakers tout the success of a voluntary accord signed with the government last year that they say has led to improved fuel-efficiency and smog reduction. That accord aims to cut 5.3 megatons in annual greenhouse-gas emissions by 2010.

In the months to come, they will likely present their case for voluntary measures rather than imposed regulations.

"That would be our preference," said Mark Nantais, president of the Canadian Vehicle Manufacturers' Association. "We have a proven track record."

Because Canada's car manufacturing sector is so integrated with the United States, it is pretty much forced to adopt U.S. standards, but Nantais sees little future in California's initiative, which is bogged down in lawsuits with automakers.

Reuters / September 12, 2006

 TOKYO -- Mazda Motor Corp. said today it has worked on some weekends as of August, and will keep doing so until October, to make up for the 2,804 Mazda3 cars that were damaged or destroyed when a ship carrying them to North America rolled over in July.

The Cougar Ace vessel, owned by Mitsui O.S.K. Lines Ltd., was carrying a total of just over 4,700 cars from Japan when it listed off the Alaskan Coast. It was later stabilized and towed to a harbor in Alaska, and is due to arrive in Portland, Ore., later today.

Mazda said it was unclear what condition the cars were in. Repairable vehicles would be sold as used cars through its dealer network in the United States and Canada, with their identification numbers listed on the company's Web site.

The Mazda3, built at the Hofu plant in western Japan, is Mazda's best-selling model. Another quarter of the cars aboard the 654-foot ship were new CX-7 SUVs.

Mazda had said the shipment was fully insured against loss, but a spokesman said the carmaker was still in talks with insurers about the settlement of damages.

Mazda imports most of its vehicles to North America from Japan. The shipment aboard the Cougar Ace was bound for Vancouver, British Columbia; Tacoma, Wash., and then Port Hueneme near Ventura, Calif.