Automotive News - January 7, 2008 - (Page 38)

38 • JANUARY 7, 2008 final assembly comment SEE THE NEW TOYS >> Get updates from the International Consumer Electronics Show in Las Vegas at autonews.com/technology Lifan is the latest Chinese wannabenother small Chinese automaker is talking about selling cars in the United States. Lifan Auto, which sells only one model — the small 520 sedan — is talking with a U.S. distributor, says Yin Mingshan, president of Lifan’s parent, Chongqing Lifan Industry Group. He wouldn’t name the distributor. Yin says the distributor took six 520s to the United States for safety and emissions testing, and engineers in China and the United States are working on the car. Lifan’s 520: Tests are under way, but one analyst has his doubts. well, he says, Lifan cars will reach the United States by 2011. But John Zeng, an analyst from Global Insight’s Shanghai office, has his doubts. He says Lifan’s 520 has an outdated body design. Says Zeng: “Unless Lifan totally redesigns the structure of the car or brings out new models for the plan, it is unlikely the 520 will pass the various safety standards.” Ricardo PLC, a British engine specialist, is working to cut emissions from the 1.3-liter engine. Who’s No. 1? Time for an official review I sn’t this a wonderful time of year? Although the holidays are over and spring is still a long way off, there’s a natural exuberance in the air. It’s bowl time. And even though the Bowl Championship EDWARD LAPHAM Series IS EXECUTIVE determines the EDITOR OF official No. 1 AUTOMOTIVE college football NEWS. team in the nation, frenzied fans of every winning team — sporting body paint, donning ill-fitting clothing in their school colors and shouting “We’re number one, we’re number one!” — can’t resist the urge to make exaggerated claims and boast a little. It’s like that in the auto industry, too. Bragging rights are important to car guys and their fans. There have been years when either General Motors or Ford Motor Co. would delay releasing its year-end sales numbers to see what the other guy had done. It’s all in an effort to hoot and holler the loudest as they nail down a claim to be No. 1 in this category or that. This year, Toyota division fans are sticking their index fingers in the air and bragging that their team has toppled Chevrolet to become the best-selling brand in the country. To make that claim, they lump Scion sales into the total because Scions are sold at some Toyota Division dealerships. Chevy fans are crying foul, so it’s time for an official review. Scion is a separate brand, Chevy partisans argue. It is a distinct brand DNA with its own logo that was created to lure younger buyers who avoid the Toyota brand. Upon further review, isn’t that exactly what Chevrolet did with its Geo brand of small Japanesedesigned vehicles? From 1989 through the 1997 model year, some Chevrolet dealerships sold Geo small cars and trucks that had their own logo and brand identity. Yet GM always reported Geo sales as part of Chevrolet. Come to think of it, maybe that’s not really exuberance in the air. It might just be some static electricity. Time to get on with the game. ■ Edward Lapham writes five commentaries each week for autonews.com. You can read them at autonews.com/edwardlapham. “We will probably need two to three rounds of testing and improvements,” Yin says. If all goes Who has 1st Mustang — and what’s it worth? Things are looking up (and down) for MG lassicmusclecars.com, a Wauconda, Ill., outfit, is offering for a cool $5.5 million a car that it claims is the very first regularproduction Ford Mustang built and sold to the general public. The company has the original bill of sale, which shows the white Mustang convertible being delivered on April 16, 1964, to a customer in Fort Lauderdale, Fla. That was one day before the car officially went on sale. Hold your horses, say the folks at the Henry Ford Museum in Dearborn, Mich. The white Mustang convertible on display at the museum is Serial No. 1 It was sold on April 14, 1964, to Stanley Tucker, a pilot in St. John’s, Newfoundland. T Here’s a standard-issue 1964½ Ford Mustang. But who’s got the first one? Bob Casey, the museum’s transportation curator, said that that first Mustang was never meant to be sold. In 1966, Ford offered Tucker a new Mustang convertible for his old one, and Ford has owned the car ever since. Now, here’s where things get murky: Randy Paddock of classicmusclecars.com claims the Mustang at the Ford museum is one of about 200 pilot build models assembled before production officially started on March 9, 1964. Casey says the museum’s car was built March 5 but is a regular production model with a full serial number. Paddock claims his car was first off the line on the first official day of production and the first regular production Mustang to be sold to the general public. Is that enough to make it worth $5.5 million? Once more into the legal fray? T he auto industry’s track record in court fights over regulation of greenhouse gases wasn’t so hot in 2007. The Miami Dolphins, at 1-15, had a better year. So it was understandable that automaker associations were cautious last week about jumping into yet another court battle. On Jan. 2, 16 states and five environmental groups filed suit to overturn the Bush administration’s denial of authority for states to enforce their own greenhouse gas rules. The main target is carbon dioxide, a byproduct of burning fuel. The Alliance of Automobile Manufacturers and the Association of International Automobile Manufacturers were both noncommittal last week — even though automakers would be the main beneficiaries of the Bush administration’s decision. The EPA, which said tougher federal fuel economy standards will do more than state rules to prevent global warming, may need all the help it can get to defend that position. California Attorney General Jerry Brown called the EPA decision, issued Dec. 19, “shocking in its incoherence and utter failure to provide legal justification for the administrator’s unprecedented action.” here’s good news and bad news for long-suffering fans of the MG marque who have been waiting since 1980 to buy a new sports car with the famous octagon logo. First the good: With the merger of Nanjing Automobile and SAIC Motor, the MG brand is now in the corporate garage of an automaker with deep pockets. SAIC is partly owned by the municipal government of Shanghai. The company has joint ventures with General Motors and Volkswagen and should have the chops to build high-quality vehicles. And SAIC has shown it can move quickly. Working from blueprints, the automaker started from scratch and put a revamped version of the Rover 75 luxury sedan, the Roewe 750, into production in less than 18 months. We’re talking about a new production line and all of the equipment to build the car and the powertrain — a feat that may be unprecedented. Now the bad news: While Nanjing has resurrected the MGTF sports car and its own version of the Rover 75, called the MG7, the cars are based on refried 1990s British technology. That probably isn’t going to cut it in this century, especially in western markets. FINAL TALLY Waning interest I Pontiac’s Solstice: The big dog among little sports cars Mazda’a Miata: Another secondplace finish nterest rates on new-car loans obtained at dealerships are down a little. Here is the average annual percentage rate on 72month loans for new-vehicle transactions in November and December compared with the same period in 2004-06. By the way, 72 months was the most popular loan term at dealerships in 2007. 8.67% 9.72% 9.24% 7.98% Saturn’s Sky: Trailing its GM sibling Solstice outguns Miata — againor the second straight year, the Pontiac Solstice roadster is America’s favorite moderately priced sports car. The Solstice took the checkered flag over the Mazda MX-5 Miata in the 2007 U.S. sales race, outselling the Miata in a photo finish. Pontiac sold 16,779 units in 2007 compared with 15,075 for the Miata. The Saturn Sky, a close relative of the Solstice, came in third with sales of 11,263. Despite new versions and equipment, sales were down for all three cars in 2007. Pontiac and Saturn offered performance-oriented Solstice GXP and Sky Red Line versions, while Mazda rolled out a Miata with a retractable metal roof. Mazda offered special lease deals on the Miata. GM offered no incentives on the Solstice or Sky in 2007. Nov.-Dec. 2007* Nov.-Dec. 2006 Nov.-Dec. 2005 Nov.-Dec. 2004 *Nov. 1 – Dec. 23 Data apply to loans taken out at dealerships Source: Power Information Network http://autonews.com/technology http://classicmusclecars.com http://classicmusclecars.com http://classicmusclecars.com http://autonews.com http://autonews.com/edwardlapham

Table of Contents Feed for the Digital Edition of Automotive News - January 7, 2008

Caddy V-8 is endangered species An industry turns green -- let's talk JAPAN TRIUMPHANT Ford, Microsoft to offer 911 service in Sync GPS will track fuel price Brose buys Siemens motor unit as step toward N.A. growth Expanding Meridian sees bright future Federal-Mogul CEO to stay Harbour Consulting sold Soft market threatens Tundra sales goal Ford dumps volume targets for dealer bonuses How HCCI engines work Visteon: 'We're leaner and smaller' Ford doubles regional promo money Gasoline-diesel combo moves closer to reality Rethinking retail: A hot topic at World Congress Denso expands hybrid plant CAFE fines may yield meager grants Some pay raise: To $8.3 million from $1 New Chrysler purchasing chief looks to Asia BMW adds jobs to boost S.C. output Continental layoffs follow production cuts at Chrysler Study: Indirect loan delinquencies soar No more peekaboo for Camaro Saturn's Lajdziak: GM is 'where I wanted to be' LETTER TO THE EDITOR Why buy Japanese? Here's an answer CAFE will put new entrees on auto show menu What an exciting way to start 2008 LETTER TO THE EDITOR 84-month financing is nothing new LETTER TO THE EDITOR GM ad policy shift is good for dealers JAMES B. TREECE Detroit show gets back on a global track LETTER TO THE EDITOR Too many dealers: Blame greed LETTER TO THE EDITOR Why not learn from Toyota? LETTER TO THE EDITOR A hot news item? Nah; it's 9 years old Suppliers to the 2008 Saturn Vue Supplier personnel Haldex farms out brake work The theme: Green and mean Dodge Ram gets interior upgrade BMW's 1-series coupe gets a soft-top counterpart Chrysler eye candy includes green jelly bean Chinese automakers increase their presence Concept offers a peek at Explorer's likely successor Ford goes global in styling its B-cars Forum concept is a clubhouse on wheels Dealers Simple safety: Green, amber, red Lexus SUV luxury will grow on you Personnel Gas prices boost Nissan car sales as trucks tank This year's U.S. sales forecast: Gloomy Ford: Tata is lead bidder for 2 brands Ex-Toyota manager goes to Audi Hyundai has new N.A. chief TRW buys Delphi brake assets Who's No. 1? Time for an official review Waning interest Solstice outguns Miata - again Once more into the legal fray? Lifan is the latest Chinese wannabe Things are looking up (and down) for MG Who has 1st Mustang - and what's it worth?

Automotive News - January 7, 2008

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