Automotive News - January 21, 2008 - (Page 18)

18 • JANUARY 21, 2008 DETROIT AUTO SHOW Ford still funds Jag, Land Rover product development Mark Rechtin mrechtin@crain.com DETROIT — Jaguar and Land Rover are on the block, but Ford Motor Co. is continuing to fund product development programs for its two British luxury brands. Some Ford insiders said recently that the company had frozen future product development work when Jaguar and Land Rover were marked for sale. But last week top executives denied that funding had stopped. “The business plan we’re showing Jaguar’s Mike O’Driscoll: “There has been no hiatus in product development investment from Ford.” to prospective buyers had to be backed by product,” said Al Kammerer, product development director for Jaguar and Land Rover. “Ford is willing to support writing down the exist- ing cycle plan.” Said Mike O’Driscoll, managing director of Jaguar Cars Ltd.: “There has been no hiatus in product development investment from Ford Motor Company.” For example, the Land Rover LRX concept shown here at the auto show could be a production vehicle, said Phil Popham, Land Rover’s managing director. Also, Land Rover is funding U.S. homologation work needed to put diesel engines in vehicles sold here as early as the fall of 2010. The diesel work is part of a $1.3 billion budget allocated last year to research green-fuel efforts by the two brands. “It’s not a short-term investment to develop and federalize diesels,” Popham said. The leading candidate to buy the two British brands is India’s Tata Motors. A Ford source said a memorandum of understanding could be signed as soon as the end of the month.c Volvo CEO Fredrik Arp: “Over the past three-four years, we have lost very significant money because of the dollar’s decline.” Volvo considers North American production Arjen Bongard abongard@craincom.de Farley: Ford must groom the market Automaker must persuade buyers to consider small cars Amy Wilson awilson@crain.com DETROIT — In the two years before its Verve concept goes on sale in the United States, Ford will work to persuade U.S. consumers to consider a subcompact from a company better known for trucks. The U.S. car was a late addition to Ford’s global B-car project and thus is slated to arrive in 2010. The other global B-cars, which are smaller than a Ford Focus, will go on sale in Europe and Asia later this year. More development work is needed on the Verve, and executives say they still must decide where to manufacture it. Product analysts and suppliers say Ford has gone back and forth between possible production sites in Brazil and Mexico. But company marketers can use the time. “Ford has to develop sufficient traffic” in this segment, said Jim Farley, Ford Motor group vice president of marketing and communications. Ford CEO Alan Mulally poses with Executive Chairman Bill Ford in front of the Verve concept small car. “The reason why that’s a big deal is we don’t have much natural traffic. In fact, we don’t have any.” Developing traffic means training dealership employees about the coming subcompact and talking up the car at media and customer events. “What you don’t want to do is show up with a fancy TV campaign when you’re wholesaling the cars to the dealers and say we’re in business,” Farley said. “The marketing better be damn good.” The U.S. car will be based on the Verve concept shown in Detroit, although officials won’t confirm that as the production nameplate. The fourdoor show car has sleek exterior styling, premium interior content and high-tech features. Ford officials say the North American production vehicle must maintain premium elements to attract a new group of subcompact customers. Many of those customers want cool design touches and fun-todrive attributes — and are willing to pay for them even in a small package, Farley said. Capitalizing on that trend is key to making the new U.S. subcompact profitable. c DETROIT — Volvo isn’t ruling out building cars in the United States, its CEO said last week. “It could be an avenue that we will explore,” Fredrik Arp said in an interview at the Detroit auto show. Volvo embarked on an intensive review after the announcement late last year by parent Ford Motor Co. that it planned to keep Volvo. Volvo’s global sales rose 7.1 percent in 2007 to a record 458,323. But the company’s gains were almost canceled by the falling dollar. Said Arp: “Over the past three-four years, we have lost very significant money because of the dollar’s decline.” The Volvo chief said Ford’s plan to develop global platforms makes it possible to share production sites in the United States and elsewhere. Previously, such cooperation was only possible between Volvo, Ford of Europe and Jaguar-Land Rover. Arp said the review of Volvo’s business will be completed in the second quarter. He said the review includes product, pricing, brand development and other issues. He said Volvo will not compete head-on against premium brands BMW, Audi and Mercedes-Benz. Arp said Volvo will continue to emphasize its Scandinavian heritage, mostly in its design, as well as safety and environmental credentials.c Ford will probably develop its new rwd cars in the U.S. Amy Wilson awilson@crain.com DETROIT — Ford Motor Co. is likely to engineer and design its new rear-wheel-drive cars in the United States. “The vehicles that we’re looking at will be designed where they’re engineered, and those global rear-wheeldrive platform vehicles will be engineered here in the United States, as far as I know,” said J Mays, Ford group vice president of design. Ford executives confirmed this month that rwd vehicles for Ford and Lincoln are in its product plan. They probably will come out in the next three to five years, Mark Fields, Ford’s president of the Americas, said at the Detroit auto show. Although Ford is gathering input on the platform from its operations around the globe, Mays said the lead team likely will be in Dearborn, Mich. Ford executives previously have said they could build rwd vehicles using a platform being developed by Ford’s J Mays on the Interceptor: “It’s quite like an extruded sausage in many ways.” Ford’s Australian operation. But the rwd cars are not likely to be produced in Australia because of shipping costs and exchange rates, they say. The approach, Mays said, is similar to Ford’s decision to assign the design and development of global small cars to Europe. “Small cars are Europe’s expertise and have been for the last 30 years,” he said. “Big cars, America’s usually been pretty good at, when they do it right.” Ford showed interest in rwd cars at the 2007 Detroit auto show with the Ford Interceptor and Lincoln MKR concepts. The production vehicles will be based on the proportions used Ford will build rwd cars based on the proportions of the Ford Interceptor, shown, and Lincoln MKR concepts. in those concepts, Mays said last week. “It’s going to be such a piece of cake now that we’ve got the proportions,” he said. “And that was the important issue.” But the Ford-brand model won’t look like the Interceptor, Mays said. “It will have a more dynamic exterior styling,” he said. Though the Interceptor was “a really nice car,” it had “slightly more static energy,” Mays said. With its upright lines and slab sides, there was no wedge to its shape. “It’s quite like an extruded sausage in many ways,” Mays said of the Interceptor. “Once we get into the actual programs, you have to kind of balance the extruded sausage with something that’s more dynamic in nature. And then we’ll send them into market research and see where we come out.”c

Table of Contents Feed for the Digital Edition of Automotive News - January 21, 2008

Campi will move fast to buy global Ford rolls out new F series — but will it stay No. 1? GM will push metro megastores BMW: We may need a 'green' brand Competition claims traditions German summit Toyota: We have enough plants for now Chinese pitch innovation, not just price Mercedes in, Cadillac out as sponsor of Masters golf tournament Auto show walkaround: Chasing the YIPS around Detroit New Acura TSX will get a diesel Toyota: We'll crack 35-mpg CAFE before 2020 Audi predicts 1 million global sales in 2008 Toyota crosses over into tricky segment LETTER TO THE EDITOR: Digital edition is a 'quantum leap' KEITH CRAIN: Here they come, ready or not EDITORIAL: Incentives war isn't the answer to sales downturn LETTER TO THE EDITOR: Toyota over Chevy? Don’t be too sure DIGITAL EDITION: You did your homework Chrysler concepts show brand tweaks Chrysler: 'Hemi is not powertrain of the future' Some of what we heard at the Detroit auto show Corvette has a future — but maybe a lighter, greener one Nissan exec: Cube is coming to America Subaru relies on new Forester Farley: Ford must groom the market Ford still funds Jag, Land Rover product development Ford will probably develop its new rwd cars in the U.S. Volvo considers North American production Good design: Solving problems, making a statement Horbury wants a more aerodynamic F-150 Hyundai upgrades next Sonata's interior M-B could build C class in U.S. VW hints at vehicles for new N.A. plant Customer demand for CTS sedans strains production capabilities at Cadillac GM to test ZR1 carbon fiber weight savings Honda Pilot has more room, power Indiana plant will boost Honda's flexibility Zetsche sees 20% diesel mix for Mercedes-Benz GM hopes to have E-Flex test vehicles ready by June GM to increase Enclave output Cadillac aims high with Provoq Pontiac to launch G8 marketing in March Big-truck sales fall 43.5% in Dec. Personnel Buckle up for a rocky '08, economists warn Canada sales up 2.4% in '07 Gioia: Ford hybrids will be profitable by year end American Honda opens workplace diversity office Dealers From CDs to Sync: Auto industry races to adapt in-car IT trends Microsoft exec sees a car as 'another room in the house' China's Geely plans plant in Mexico Chrysler exec: China exporters need time Murtaugh: Nissan deal won't affect Chrysler-Chery venture Strike by writers makes TV iffy for auto marketers Super Bowl auto advertisers get pre-game jitters Final Say GM bumps buyout total to 46,000 GM considers U.S.-made Astra Good Karma: Mean, green, fighting machine Purves confirms it: The end is near Rehab for designers: A change can do you good Tata's achievement: Redefining 'cheap' Fans remember auto commercials with sports themes Which brand is stronger — Scion or Prius? Engine advances bring cleaner emissions a step closer Suppliers to the 2008 Ford Focus Varable compression ratio makes a comeback Change the engine's stroke Integrate components to boost efficiency Reduce the size of the engine Eliminate the cams and count the savings ZF expects surge in new orders American Axle's rising son may be another Dauch Honda taps Web for workers Trelleborg unit adds tech center Kia restricts hiring at Ga. plant to Web applicants Magna pursues Ogihara Supplier personnel Age of intelligent transportation is getting closer Plastic spoiler saves weight Automotive News' cartoonist looks at 2007 8 will enter European Automotive Hall of Fame Pininfarina lifted family business to new heights Merciless cost cutter Calvet rescued PSA Opel boys turned bicycle venture into automaker Giacosa fathered the Fiat 500 JCI to supply batteries to Chinese automakers Automakers will spend more on digital ads Ford snares star role in return of 'Knight Rider' GM Certified markets online to Hispanics Writers' strike could benefit auto marketers

Automotive News - January 21, 2008

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