Automotive News - September 1, 2008 - (Page 6) 6 • SEPTEMBER 1, 2008 BMW slashes production of big engines Henning Krogh hkrogh@craincom.de MUNICH — The dramatic worldwide shift toward smaller, more fuelefficient vehicles has reduced production of BMW’s large-displacement engines to a trickle. “We are producing the wrong engines here,” Manfred Schoch, chairman of BMW’s works council, said at a recent employee meeting. As the head of BMW’s union, he sits on the automaker’s supervisory board. “The eight-cylinder hasn’t been produced in a three-shift operation for a long time,” Schoch said. “We can now produce the entire global demand four days a week on a oneshift operation.” The demand for 10- and 12-cylinder engines also has steadily declined, he said. Six-cylinder assembly will be phased out in Munich and replaced by four-cylinder output, he said. In the first phase beginning in 2011, about 320,000 four-cylinder engines a year will be built in Munich. A second phase will add capacity for 240,000 engines a year, he said. BMW’s six-cylinder assembly line in Munich is “fairly new,” said Ralph Huber, a BMW spokesman. Schoch also said the works council is calling for the development of a pure electric vehicle based on the 1 series. The car, which might be named the City Electric Sprinter, could debut in 2010 at the earliest. c Demand has dwindled for BMW’s largedisplacement engines, such as the V-8 in the 750Li, shown, so the company is reducing production. Nissan’s Shiro Nakamura: “Next decade, luxury may be defined by technology, quality and design.” Toyota cuts sales forecast N.A. slump derails goal of 10 million units in 2009 TOKYO — Slumping sales in North America have taken a big bite out of Toyota Motor Corp.’s 2009 sales target, at least temporarily upsetting plans to become the first automaker to sell 10 million vehicles a year. President Katsuaki Watanabe slashed his ambitious 2009 forecast to 9.7 million vehicles from an earlier goal of 10.4 million. Stagnating U.S. sales contributed to the changed outlook. Toyota Motor Corp. sees North American sales coming in at 2.70 million units in 2008 and languishing at the same level next year. The Toyota group sold 2.9 million units in North America last year. “The economic environment, crude oil prices as well as the material cost trend, was not accurately forecasted by us,” Watanabe said here last week. “We initially thought there would be a greater number of vehicles sold.” Watanabe floated the 10.4 million sales target last year, before the subprime loan problem torpedoed demand in his company’s biggest market. Reaching the goal would have made Toyota the first automaker to pass 10 million sales. Toyota’s global group sales figure for 2007 was 9.37 million units. For 2008, the outlook is for sales of 9.50 million. The figures include Hino and Daihatsu vehicles. — Hans Greimel Infiniti may add cars, big and small Rick Kranz rkranz@crain.com PEBBLE BEACH, Calif. — Infiniti is debating whether it needs a top and a bottom. Specifically, Nissan’s luxury brand may add a flagship sedan and an entry-level model. But the flagship, in particular, faces obstacles. “At the moment, society is pushing for smaller cars,” said Shiro Nakamura, global design director for Nissan Motor Co. Ltd. “We would like to have a Q45, but I cannot do it without” support from society. The Q45, Infiniti’s former flagship sedan, sold poorly. Nissan discontinued it in 2006. Nissan is positioning Infiniti as a global luxury brand, which could bolster the case for a flagship and a smaller, entry-luxury car. A decision on whether to develop a new flagship sedan had been expected this summer, but Nakamura said high fuel prices “make it more difficult” to justify development of such a vehicle. “We want to be Tier 1 luxury, like BMW, Lexus,” said Nakamura, who was interviewed during an Infiniti event here last month. “But I’m not sure (a big sedan) is necessary to be a luxury brand. Next decade, luxury may be defined by technology, quality and design.” As for developing a car smaller than the G37, Nakamura said demand exists outside the United States, but Nissan is still studying the segment. He said an entry-level Infiniti is at least three years away. Asked whether the car would be rear-drive, Nakamura said: “We hope so. The essence of Infiniti is the driving experience. We think it is quite important to maintain rear-wheel drive for the Infiniti line.” c Chrysler says it has heard from several potential buyers interested in acquiring its Viper sports car business. Chrysler: Viper lures suitors Bradford Wernle bwernle@crain.com DETROIT — Who might want to buy the Dodge Viper sports car business? Isn’t the Viper an automotive dinosaur — a gas-guzzling, 600-hp relic from the era when Bob Lutz ruled the roost at Chrysler? CEO Bob Nardelli said last week that Chrysler LLC has heard from several potential suitors, but he’s not naming names. Chrysler is listening to them as part of a strategic review. The Viper factory in Detroit employs 110. U.S. sales of the Viper peaked at 2,103 in 2003, the only year the car topped 2,000. In 2006, Dodge sold 1,455 Vipers in the United States. In 2007, no Viper was built. The Viper business might appeal to some investors, in part because “it’s not a billion-dollar-type of asset,” said Dave Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. “A lot of people can afford it — Chinese companies, Indian companies, Middle Eastern companies — somebody who has a lot of money that wants to create a halo for themselves,” Cole said. Ford Motor Co. just sold Jaguar and Land Rover to Indian automaker Tata Motors, and General Motors has put Hummer on the block. The Viper business also might be attractive to a wealthy investor from Russia. A young Russian tycoon named Nikolai Smolenski bought the British sports car maker TVR in 2004. But Smolenski closed the factory and has yet to resume production. That’s not the kind of outcome Chrysler says it wants. Nardelli said the Viper is a crucial part of Chrysler’s history, and the company will act “keeping in mind the best interests” of the Viper’s many supporters — including dealers, suppliers and “a worldwide group of loyal Viper owners and enthusiasts.” c GM shifts some vehicle design work to U.S. Rick Kranz rkranz@crain.com Infiniti is considering adding a car smaller than the G37, shown. PEBBLE BEACH, Calif. — General Motors is shifting vehicle design work for some brands marketed outside North America to suburban Detroit. Vehicles for Daewoo, Holden, Opel or Vauxhall may be styled in Michigan. The decision is a response to U.S. vehicle programs that have been delayed or canceled, freeing up U.S. designers for other projects. The reardrive Chevrolet Impala and an un- named Buick sedan have been dropped, for example, and GM’s next-generation pickup programs have been postponed. “We have had a couple studios where some projects have been canceled,” said Ed Welburn, GM’s design vice president. “We have other studios that are totally overloaded. We just need to level that work around the globe.” In particular, some studios are overloaded with design work on small cars. GM’s small-car pro- GM’s Ed Welburn: “We just need to level that work around the globe.” grams are based at the Adam Opel r&d center in Germany and GM Daewoo Auto & Technology Co. in Korea. “They can’t handle it all,” Welburn said, “so some of that work will be done in North America.” GM’s Warren, Mich., design center is expected to eventually handle work for two vehicle architectures, said Mike Albano, a company spokesman. While Albano wouldn’t identify the vehicle architectures, he said: “We have some work being shifted in process for small, subcompact (vehicles), that kind of category. I certainly could foresee more car programs coming into Warren as the market changes.” c
Table of Contents Feed for the Digital Edition of Automotive News - September 1, 2008 Automotive News - September 1, 2008 'Mr. Big Volume' hit again Auto ad spending plummets American Axle to grow outside U.S. Nissan, Renault aim to share more parts Steven Ribet joins Automotive News in Shanghai Salaried workers face the ax Asbury to challenge verdict Lutz wants loan guarantees VW passes Ford as No. 3 global seller in 1st half Suzuki in disguise Dodge hopes smooth ride of coil springs will distinguish Ram Candidates split on union organizing bill Check in the mail? Toyota, Ford can tell 10 CTS stays true to concept GM shifts some vehicle design work to U.S. Infiniti may add cars, big and small BMW slashes production of big engines Toyota cuts sales forecast Chrysler: Viper lures suitors Honda hybrid plan bets big on small cars Ford starts L-M consolidation meetings Obama renews aid offer — industry wants it now Honda taps rainwater to create wetlands U.S. loans could make sense, but can't be a bailout Wanna buy a car? Wanna buy a brand? PPG story recalls Exner's Imperial Toyota goofed on Scion; is Prius next? Editor grows up; import vet pleased Field reps blamed for GM's problems Honda Insight engine isn't noiseless Trucks, Vette fine; rest of GM, blah Reynolds to dealers: Replace aging servers by year end Saddle up! Dem delegates honor slain Arkansas dealer Kia makes a mark of its own Koreans step up; Indians step cautiously; Chinese step back The next batch of new Hyundais: Smaller, more fuel efficient To give fuel economy a boost, Hyundai spends big on r&d U.S. plans fizzle for most Chinese vehicles Mahindra delays U.S. retail launch until 4th quarter of '09 Dealers Personnel Despite tough times, Galpin profits by pimping rides Web service leads grow Uh, I didn't mean to say you should retire Remembering Phil Hill, racing's modest giant Mulally to speak at gadget show GM picks Volt battery supplier Split verdict in fraud case July auto output was up in Japan Bob Fisher Dems reopen the CAFE Hummer, king of the desert? MG remains a no-show in North America Mustang silly Protests could bring ta-ta from Tata The politicians (and I) need a new road map Welburn's design journey began in Philly Automotive News - September 1, 2008 Automotive News - September 1, 2008 - (Page Intro) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 1) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 2) Automotive News - September 1, 2008 - Suzuki in disguise (Page 3) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 4) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 5) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 6) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 7) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 8) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 9) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 10) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 11) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 12) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 13) Automotive News - September 1, 2008 - Trucks, Vette fine; rest of GM, blah (Page 14) Automotive News - September 1, 2008 - Saddle up! (Page 15) Automotive News - September 1, 2008 - Dem delegates honor slain Arkansas dealer (Page 16) Automotive News - September 1, 2008 - Koreans step up; Indians step cautiously; Chinese step back (Page 17) Automotive News - September 1, 2008 - To give fuel economy a boost, Hyundai spends big on r&d (Page 18) Automotive News - September 1, 2008 - Mahindra delays U.S. retail launch until 4th quarter of '09 (Page 19) Automotive News - September 1, 2008 - Personnel (Page 20) Automotive News - September 1, 2008 - Web service leads grow (Page 21) Automotive News - September 1, 2008 - Web service leads grow (Page 22) Automotive News - September 1, 2008 - Web service leads grow (Page 23) Automotive News - September 1, 2008 - Web service leads grow (Page 24) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 25) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 26) Automotive News - September 1, 2008 - July auto output was up in Japan (Page 27) Automotive News - September 1, 2008 - Bob Fisher (Page 28) Automotive News - September 1, 2008 - Bob Fisher (Page 29) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 30) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 31) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 32)
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