Automotive News - January 21, 2008 - (Page 26)

26 • JANUARY 21, 2008 DETROIT AUTO SHOW GM to test ZR1 carbon fiber weight savings Rick Kranz rkranz@crain.com ROGER HART Parts made of carbon fiber on the Corvette ZR1 include the roof, hood, front spoiler, front fenders, side rocker panels and rear spoiler. DETROIT — General Motors will use the 2009 Corvette ZR1 to study the feasibility of outfitting high-volume vehicles with lightweight carbon fiber parts. “Carbon is one-fifth the weight of a composite, which is half the weight of steel,” says Tom Wallace, vehicle line executive for the Chevrolet Corvette, Cadillac XLR, Pontiac Solstice, Saturn Sky and Opel/Vauxhall GT. “Although carbon fiber is expensive today, so was aluminum in the beginning, so was magnesium in the beginning.” As demand for carbon fiber increases, Wal- lace believes more companies will produce the material. The cost of carbon fiber will then decline. Other automakers are interested, too. Wallace says Toyota has announced a joint venture with a carbon fiber company. “They are not doing that to make airplanes,” he says. GM is looking for ways to reduce vehicle weight and increase fuel economy. America’s new corporate average fuel economy, or CAFE, law calls for a fleet average of 35 mpg in 2020. But Wallace says it might take 10 years to know the feasibility of carbon fiber. When the ZR1 is on the road, engineers can study durabil- ity and whether carbon fiber can be used on higher volume vehicles. The ZR1’s carbon fiber parts include the roof, hood, front spoiler, front fenders, side rocker panels and rear spoiler. The carbon fiber parts reduced the ZR1’s weight about 35 pounds from that of the standard Corvette. Wallace says GM wants to be ready “when it comes time (to use) carbon fiber for mass efficiencies.” The limited-edition ZR1 will be GM’s highest horsepower car when it goes on sale late this year. The supercharged 6.2-liter V-8 will produce 620-plus hp. GM expects to build about 2,500 annually. c Zetsche sees 20% diesel mix for Mercedes-Benz Diana T. Kurylko dkurylko@crain.com DETROIT — Diesels could account for more than 20 percent of Mercedes-Benz’s U.S. sales in a few years as buyers discover the diesel’s fuel-economy advantages, executives say. Mercedes-Benz officials say the brand sold about 12,500 diesel vehicles in the United States in 2007, out of total U.S. sales of 253,277 units. That’s just under 5 percent. Mercedes’ U.S. diesel sales have been low because its current diesels often fail to meet large states’ emissions standards. But in the fall Mercedes is scheduled to launch cleandiesel versions of three vehicles: the ML and GL SUVs and R-class crossover. Those vehicles will have ultraclean diesel engines that can be sold in all 50 states. The E-class sedan, which accounts for most of Mercedes’ current U.S. diesel sales, will get the ultraclean engine next year. With 50-state sales, diesels’ share of Mercedes’ U.S. sales could exceed 20 percent, Daimler AG CEO Dieter Zetsche said. Mercedes-Benz calls its diesel technology Bluetec. In an interview last week at the Detroit auto show, Zetsche wouldn’t commit to adding more Bluetec diesels to Mercedes’ lineup. “We will have to see what price capabilities we have for the diesel and how much the customer is willing to pay,” Zetsche said. “It is an influencing factor because we may see lower margins.” Diesel engines cost more to produce than gasoline engines. With a base price of $52,675, including shipping, the 2008 E-class diesel carries a price premium of about $1,500 over its gasoline-powered counterpart. Mercedes-Benz USA CEO Ernst Lieb said the company will market its diesel engines by emphasizing their 30 percent advantage in fuel economy over gasoline engines. A diesel marketing campaign this fall could include TV commercials, he said. In customer forums with Mercedes-Benz executives, Lieb said, consumers invariably ask about diesels. “Whether they will buy one is the question,” he said. At the Detroit show, Mercedes is displaying a diesel version of the GLK, a compact all-wheel-drive SUV, as a concept vehicle. Lieb said Mercedes-Benz is deciding whether to produce the diesel version of the GLK, which goes on sale early next year. The company also is considering a diesel C-class car, he said. BMW and Volkswagen also plan to launch clean diesels this fall. Audi is deciding whether to launch its Q7 diesel this year instead of in 2009. Zetsche said Mercedes is sticking by its decision not to bring cars smaller than the C class to the United States. Referring to the tougher fuel economy standards passed by Congress last year, he said: “Our product portfolio plans for the U.S. have not changed. It is not our intention to turn into a Peugeot or Fiat by making small cars to address the issue but to use technology to make larger cars more fuel-efficient.” c ROGER HART The second-generation Pilot has a new V-6 engine that operates in six-, four- and three-cylinder modes. Honda Pilot has more room, power Kathy Jackson kjackson@crain.com DETROIT — Honda introduced the second-generation Pilot last week, calling the redesigned SUV more powerful, roomier and safer than the current model. “It’s cleaner, safer, funner and better in every way,” John Mendel, executive vice president of American Honda Motor Co., said at the auto show. The Pilot features a new V-6 engine with variable control management that operates in the six-, four- and three-cylinder modes. The current Pilot operates in the six-cylinder and three-cylinder modes. The Pilot uses 52 percent highstrength steel, more than any other Honda vehicle. The interior has much more room. The second row slides further forward, allowing easier access to the third row. The third row offers more knee room, making it more comfortable for an average-sized adult. The second and third rows fold flat. The Pilot was introduced as a 2003 model. The redesigned 2009 model goes on sale in the spring. c Indiana plant will boost Honda’s flexibility Ralph Kisiel rkisiel@crain.com DETROIT — Building Honda Civic sedans in Greensburg, Ind., will allow the automaker to change the production mix in its East Liberty plant in Ohio to help meet demand for the redesigned CR-V small crossover. Honda begins assembling the Civic in its new Indiana plant in October. So far, that is the only vehicle that Honda is willing to say it will make there. “Once we open up Indiana, it frees us up to build more CR-Vs in East Liberty,” says John Mendel, executive vice president of automobile operations for American Honda Motor Co. The East Liberty plant assembles the Civic, CR-V and Element crossover. Honda needed more manufacturing capacity for the CR-V. So Honda last year replaced Accord produc- tion in its El Salto, Mexico, plant with CR-V production. “We switched Mexico from 30,000 Accords a year to 50,000 CR-Vs,” Mendel told Automotive News at the auto show. “So we can remix and rematch across the system.” Mendel says Honda will add a vehicle to Greensburg “when we decide that the capacity is limiting us in terms of sales of some other vehicle.” c Customer demand for CTS sedans strains production capabilities at Cadillac Jamie LaReau jlareau@crain.com DETROIT — Cadillac dealers can’t get enough of the 2008 CTS sedans, but General Motors is struggling to build more of them. Because of production snarls at GM’s Grand River assembly plant in Lansing, Mich., a certain percentage of vehicles produced must be Cadillac STS sedans and SRX crossovers. But those aging products are not hot sellers, and the plant can’t switch over all its production to the CTS. In other words, GM’s flexible assembly plant is not quite flexible enough. The new CTS went on sale in September, and it’s a hit. The average transaction price tops $38,000, a nice markup over the base sticker price of $33,400. Dealers say they want as many as they can get. “We’re short on the CTS, and that’s a hot seller,” says Dave Cosper, CFO of Sonic Automotive Inc. in Charlotte, N.C. GM has a 16-day supply of CTS sedans. To satisfy demand, the company prefers a 40-day supply, but the Lansing plant can’t keep up. In part, GM is a victim of its own success. About 65 percent of CTS buyers want the up-level trim and more powerful V-6 direct-injected engine. Those vehicles take longer to build, so GM must make some easierto-assemble SRX and STS sedans. “We have to balance,” says Cadillac General Manager Jim Taylor. Still, GM has managed to produce 7,000 CTS sedans per month, double the rate of the previous-generation version. But to do so, the plant must work maximum overtime on weekends, Taylor says. Taylor predicts sales of 70,000 CTS sedans this year, up from 57,029 last year. But he’ll have to boost incentives to move the slow-selling SRX and STS models. To move his slow-selling vehicles, Taylor probably will market “product packages” — such as a specialedition version — rather than cash. “That gives the consumer options,” Taylor explains. “It allows us to advertise heavily so that consumers can see there’s something going on.” 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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