Automotive News - August 18, 2008 - (Page 6) 6 • AUGUST 18, 2008 Honda will launch Prius fighter in April David Barkholz dbarkholz@crain.com TRAVERSE CITY, Mich. — Honda Motor Co. will launch a five-door, hybrid-only car in April in North America to fight the hot-selling Toyota Prius. The five-passenger hatchback will be priced below the Prius, Dick Colliver, executive vice president of American Honda Motor Co., said here at the Management Briefing Seminars last week. Honda expects to build about 200,000 of the hatchbacks globally, with about 100,000 targeted for import into North America, he said. Honda has no plans to build hybrids, including the Civic Hybrid sedan, in the United States, Colliver said. He said the new hatchback will be slightly smaller and lighter than the Honda’s Dick Colliver: The new hybrid vehicle will be priced lower than the Civic Hybrid and Prius. Civic Hybrid and priced lower than the Civic and Prius. The Civic Hy- brid’s base price is $22,600, and the Prius starts at $21,500. Both prices include shipping. “For consumers who are interested in fuel economy and the environment, having a specific individual product is important to them,” Colliver said. He said Honda’s decision not to stray from its emphasis on small, fuelefficient cars is bearing fruit in the era of $4-a-gallon gasoline. American Honda is the only major automaker whose vehicle sales are up through July, increasing 3.2 percent. “Fuel efficiency is one of our core values,” Colliver said. “Small, efficient vehicles are not short-term strategies for Honda. They are part of a fundamental commitment that goes back to Honda’s entry into the auto industry in the 1970s.” c Leland, master of precision and luxury cars ■ CTS wagon arrives in spring Cadillac showed the third member of the CTS family, the Sport Wagon, during last weekend’s Pebble Beach Concours d’Elegance in California. Cadillac will begin selling the wagon next spring, followed by the 2010 CTS coupe in late summer or early fall. Cadillac hopes the CTS will attract wagon lovers in Europe and some U.S. buyers exiting big SUVs. Henry Leland was the father of the mass-produced luxury car in the United States, and his son, Wilfred, might well be called the luxury car’s favorite uncle. Henry founded Cadillac in 1902, and in 1909 father and son sold it to Billy Durant and his brand-new General Motors. The Lelands left GM in 1917 because, they said, Cadillac refused to build the Liberty aircraft engine, which Cadillac did build after the Lelands left. They didn’t abandon the auto business. They formed Lincoln Motor Co. in 1917 and received a contract to produce 6,000 Liberty engines. They switched to cars after World War I and sold Lincoln to Henry and Edsel Ford for $8 million in 1922. The Lelands quit four months later, which was not surprising. The two Henrys did not like each other. In fact, Henry Ford had quit an auto venture in 1902 because Henry Leland was hired as a consultant. Before making automobiles, Henry Leland was widely known as a master of precision parts. GM patriarch Alfred Sloan recalled that in the early 1900s, his Hyatt Roller Bearing Co. had trouble selling its wares to Leland for his Cadillacs. Leland “then taught me the need for greater accuracy in our products to meet the exacting standards of interchangeable parts,” Sloan said. And what of Wilfred? What was he doing all this time? Henry gave his son all the credit for the first eightcylinder V-type, high-speed, high-efficiency engine. Cadillac refined the V-8 into an engine that became its signature for years to come. For the rest of the story, read Automotive News’ GM 100th anniversary edition, How General Motors Changed the World, on Sept. 15. For information about the special edition, go to www.autonews.com/gm100. Porsche bolsters warranty on pre-owned vehicles Diana T. Kurylko dkurylko@crain.com In an effort to gain momentum and boost U.S. sales of what it now calls the brand’s entry cars, Porsche Cars North America has changed its certified pre-owned vehicle program to cover everything included in the new car warranty. The certified program still runs two years or 50,000 miles but covers more items, says Kevin Harvey, manager of pre-owned operations. Harvey says the changes will give dealers a competitive edge because no other brand has a similar pre-owned warranty. Previously, items such as so-called comfort electronics — which include the CD player and navigation system, the convertible top mechanism, light bulbs and even the expansion tank that holds the coolant — were not covered, Harvey says. Porsche, a relative newcomer to the certified pre-owned arena, started its program in 2003. Since then, certified sales have risen to more than 7,600 units for the last fiscal year, which ended July 31, up 14.6 percent from the previous year. Since the program started, Porsche has retailed more than 24,000 certified pre-owned cars, Harvey says. The total may seem low when compared with sales of other luxury makes, but Porsche sales are low versus those of competitors. Through July, Porsche sold 18,214 new vehicles, down 13.6 percent. c Price tag for Ford EcoBoost: $700 Amy Wilson awilson@crain.com DETROIT — Ford Motor Co. will charge a premium of around $700 for its much-touted EcoBoost engine system when it goes on sale in 2009. A 3.5-liter V-6 with EcoBoost will arrive next year on the Lincoln MKS sedan and Ford Flex crossover. The V-6 with EcoBoost is slated for the Ford F-150 in 2010, and the pickup application will produce “significantly more” than 340 hp and 340 pounds-feet of torque, said Brett Hinds, Ford’s advanced engine design manager. That tops the 300-hp rating of the largest engine — a 5.4liter V-8 — in the current F-150. EcoBoost technology combines turbocharging and gasoline direct injection. A V-6 with EcoBoost gets as much as 20 percent better fuel economy than a conventional V-8, Ford says. It also improves performance The Ford Flex crossover, left, and the Lincoln MKS sedan are scheduled to get a 3.5-liter V-6 with EcoBoost next year. and will enable the company to replace V-8s with V-6s and V-6s with four-cylinder engines. The fuel savings will enable buyers to recoup the premium paid for EcoBoost technology within two years, Hinds said. When going from a V-8 to a V-6 with EcoBoost, Ford estimates annual savings at $339 when driving 15,000 miles per year with gasoline costing $3.25 a gallon. “The consumer is actually going to be paying himself back on his investment,” Hinds said. “Within right around two years, you’ll actually break even on your initial purchase premium.” Ford also said that four-cylinder engines with EcoBoost will debut in 2010 in North America and Europe. The company didn’t disclose vehicles to be equipped with the fourcylinder. Six-cylinder engines with EcoBoost will have twin turbochargers, while the four-cylinder engines will have a single turbocharger. c http://www.autonews.com/gm100
Table of Contents Feed for the Digital Edition of Automotive News - August 18, 2008 Automotive News - August 18, 2008 Smart answer: A tiny Hyundai from India Toyota idles factories — but can't lay anybody off Sharing the pain N. America: Brembo's big break? Ford adds 7 preferred suppliers; total rises to 65 Suit: Report of store's death is premature Lincoln crossover will get MKT nameplate Ligocki will head Mexican/Chinese car deal Industry tries lean lobbying at conventions Ford reins in F-150 order combinations Nissan will buy more in Mexico Leland, master of precision and luxury cars Honda will launch Prius fighter in April Porsche bolsters warranty on pre-owned vehicles CTS wagon arrives in spring GM: Aerodynamic design boosts Volt's range Denso is Chrysler 'Supplier of Choice' Kudos to Ford for improving supplier relations How do we define 'automaker'? Concept of leasing had been polluted Totaled cars: We don't need a new law Hybrids too quiet? Sounds like trouble Marketing tips for the 21st century Scion tries to get leg up when flexing its hip Scion ads show community of cool — but no owners July trucks sales fall; rate of decline slows Hargrove forecast: Good for now, bad for long term Mitsubishi plans plant to meet battery demand Mini Cooper D(iesel) delivers, but not here yet Logistics company's goal: Cut fuel use even more Transporter joins the cars it delivers in going green Saturn, Scion lost that special feeling Expert: CAFE debate irrelevant Chrysler plans unibody, fuel-efficient Grand Cherokee Panel: CAFE will change U.S. car mix Toyota revs up its aftermarket parts business Dealers Who's that sporting Brembos now? Moody's cuts GM rating Analyst Merkle moves Ford will sell stock BMW recalls 320,000 vehicles Intermet in Chapter 11 again GM adds 4 XFE models Delphi ends battery venture Chamco cases bounce around court system Mercedes sues Cobasys over batteries For a while, the party's over at Toyota Buy Hummer? Nyet, says Russian automaker What cars will be the cruisers of tomorrow? GM sets 'em up for Dems, GOP Chung sprung A good day at work: $22 million Automotive News - August 18, 2008 Automotive News - August 18, 2008 - (Page Intro) Automotive News - August 18, 2008 - Sharing the pain (Page 1) Automotive News - August 18, 2008 - Sharing the pain (Page 2) Automotive News - August 18, 2008 - Ligocki will head Mexican/Chinese car deal (Page 3) Automotive News - August 18, 2008 - Nissan will buy more in Mexico (Page 4) Automotive News - August 18, 2008 - Nissan will buy more in Mexico (Page 5) Automotive News - August 18, 2008 - CTS wagon arrives in spring (Page 6) Automotive News - August 18, 2008 - CTS wagon arrives in spring (Page 7) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 8) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 9) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 10) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 11) Automotive News - August 18, 2008 - Totaled cars: We don't need a new law (Page 12) Automotive News - August 18, 2008 - Totaled cars: We don't need a new law (Page 13) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14a) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14b) Automotive News - August 18, 2008 - July trucks sales fall; rate of decline slows (Page 15) Automotive News - August 18, 2008 - Mitsubishi plans plant to meet battery demand (Page 16) Automotive News - August 18, 2008 - Mitsubishi plans plant to meet battery demand (Page 17) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 18) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 19) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 20) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 21) Automotive News - August 18, 2008 - Chrysler plans unibody, fuel-efficient Grand Cherokee (Page 22) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 23) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 24) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 25) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 26) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 27) Automotive News - August 18, 2008 - Dealers (Page 28) Automotive News - August 18, 2008 - Who's that sporting Brembos now? (Page 29) Automotive News - August 18, 2008 - Delphi ends battery venture (Page 30) Automotive News - August 18, 2008 - Delphi ends battery venture (Page 31) Automotive News - August 18, 2008 - Mercedes sues Cobasys over batteries (Page 32) Automotive News - August 18, 2008 - Mercedes sues Cobasys over batteries (Page 33) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 34) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 35) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 36)
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