Archive for July, 2008

Stop, Start - It’s The Little Things That Could Have a Big Impact

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Big OilWhen it comes to fuel economy, the little things matter, sometimes quite a lot, as some of the industry experts I gathered together for a "green car" forum yesterday made clear.

The occasion was the public debut of NextCruise, an event for which I am serving as volunteer chairman - TheCarConnection.com, in full disclosure, is not in any way involved in the event. Three senior industry leaders, one from each of Detroit's Big Three, were on hand and asked what it will take to transform the auto industry into one more environmentally friendly.

"There's no silver bullet," emphasized Micky Bly, a senior powertrain executive at General Motors and a key player in the development of GM's Chevy Volt plug-in hybrid-electric vehicle. Instead, we need to expect a whole range of alternatives to today's conventional gasoline engine.

The likely list ranges from hybrids and plug-ins, like Volt, to clean diesels and hydrogen power. Some of these are ready for the road already, while others, like hydrogen-powered fuel cells, are a decade or more away from production.

Surprisingly, all of the experts on the panel agreed that, as Bly suggested, "the gasoline engine isn't going away" anytime soon. But that doesn't mean technical business-as-usual.

Ford's new EcoBoost engine is an example of big changes in a relatively familiar package. This turbocharged direct-injection engine, which will debut in an upcoming Lincoln product, can deliver V-8 performance with V-6 mileage.

That package is complex, and it isn't cheap. But in some cases, surprisingly simple, low-cost technology will yield significant improvements in efficiency (read: mileage). Like something automotive engineers alternatively call Autostart, or Start-Stop.

If you've driven a full hybrid, like the Toyota Prius or Ford Escape Hybrid, you've undoubtedly experienced the concept. Come to a light, step on the brake and you may notice a subtle shudder, as the gasoline engine is shut off automatically. The light changes, you lift your foot, and before you even reach the accelerator pedal, the engine is running again.

Idling is a hidden thief, capable of robbing a gallon or more an hour, whether you're sitting in heavy freeway traffic, or waiting on line for a coffee to go. Recent studies show that you can save fuel shutting an engine off for as little as 15 seconds rather than idling. Few of us want to keep switching on-and-off as we creep forward in line, or in traffic, so it's great to have the car do it for you automatically.

"In 10 years, you'll be looked at as low-tech if your car runs at idle," said another speaker at the NextCruise forum, Chrysler's senior manager of hybrid system integration Jay Iyengar. And it won't be just hybrids offering the feature, but just about every vehicle on the road.

What other features might we see? While BMW wasn't on hand for the Wednesday panel, the company will be participating in the actual NextCruise next month, and we imagine it'll be talking about some of the mileage-minded features on the new 1-Series, such as its electric power steering. BMW isn't alone there, of course. On the I-4 version of the Saturn Vue, electric v hydraulic power steering saves about a mile a gallon. But the BMW 1-er uses a new, rack-mounted motor that restores the sort of handling and road feel earlier electric steering systems lost.

Look for that technology to spread, as, I believe, will the new 1-Series system that automatically decouples the car's alternator when the battery is charged up. Spinning power steering pumps and alternators can suck several miles a gallon off your mileage numbers. This new system is available only in Europe - for now - but look for it to propagate fast, as automakers race to meet tough new mileage standards.

Yes, it's possible to yield big savings through major efforts, like adopting lightweight body panels and switching to advanced powertrain technologies. But manufacturers have yet to pluck all the low-hanging fruit. So relatively simple systems, like Autostart, will play an important role in the greening of the automobile.

Oh, and for those interested in the upcoming NextCruise, here's the formal press release:
2008 Inaugural NextCruiseTM Brings Environmentally Friendly and Future-Looking Dimension to Woodward Dream Cruise
Nine Auto Manufacturers - And Two "Green' Motorsport Series - To Display Technologies And Provide Public Ride And Drives
Pleasant Ridge, Mich., July 23 - The 2008 Inaugural NextCruiseTM, to take place on August 15-16, is a new event - new in both concept and content. Staged in the City of Pleasant Ridge, NextCruiseTM introduces an environmentally friendly and future-looking dimension to the Woodward Dream Cruise, widely viewed as the world's largest automotive spectator and participation event.

Nine of the world's largest automakers are supporting NextCruiseTM, by providing the public with multiple opportunities to check out - and drive - the latest in "Green Machines" (including hybrids, clean diesels and those with other, new super-high-mileage and ultra-low-emission technologies).

"NextCruiseTM marks a number of important firsts," said Paul Eisenstein, Event Chairman. " It's the first-ever public event that brings together such a large array of leading automakers, specifically to display environmental vehicles and technologies; the first-ever event where the public has the chance to drive such a wide assortment of clean, high-economy cars, trucks and crossovers; and it's the first-ever official Woodward Dream Cruise event that is specifically future-focused.

"NextCruiseTM helps expand the relevance of the Woodward Dream Cruise from what is primarily a retrospective into a celebration of the automobile, past, present and future," Eisenstein added.

NextCruiseTM will also feature displays of even more advanced green concepts and technologies, such as fuel cells and hydrogen-powered internal combustion engines, together with experts to provide insight into how those developments can reach production in the not-too-distant future.

"As Pleasant Ridge has the longest stretch of green space on the entire Woodward Corridor, it's highly fitting that the City should be the host of this "Green" event as part of the Woodward Dream Cruise," said George Lenko, Pleasant Ridge Commissioner and NextCruiseTM organizer. NextCruiseTM will be based in Memorial Park, immediately adjacent to Pleasant Ridge City Hall.

"Today's and tomorrow's Green Machines challenge the stereotype that environmentally-friendly automobiles require customers to make significant sacrifices: in size, features, comfort and, especially, performance," said Eisenstein. "NextCruiseTM provides a venue for manufacturers to display current and future Green technologies and engage the public in understanding that the newest Green Machines are roomy, well-equipped and, in keeping with the spirit of the Dream Cruise, able to deliver surprising performance and fun."

NextCruiseTM also will include a look at the next generation of "green" motorsports, including the ethanol-fueled IndyCar Series, and the American Le Mans Series (ALMS), which features a unique Green Racing Challenge this season. The Detroit Belle Isle Grand Prix - which takes place on Labor Day weekend - includes both IndyCar and ALMS races. The motorsport display will include race cars and appearances by key IndyCar and ALMS drivers.

"Because of the press of competition, motorsport has traditionally developed technologies that have found their way to production cars," Eisenstein stated. "Motorsport can be exciting, competitive and environmentally friendly, all at the same time.

"NextCruiseTM, put simply, is lean, mean ... and green."

NextCruiseTM will be held in Pleasant Ridge's Memorial Park along Woodward Avenue, north of Nine Mile Road. There will be a public preview on the evening of August 15. NextCruiseTM itself takes place concurrent with the Woodward Dream Cruise on August 16. Major auto manufacturers supporting include General Motors, Ford, Chrysler, Toyota, Nissan, BMW, Mercedes-Benz, Audi and Volkswagen. Other sponsors and exhibitors include Bridgestone, Detroit Belle Isle Grand Prix, IndyCar Series, American Le Mans Series, PR Newswire, G-2 Communications and ESI. For information go to www.nextcruise2008.com or email nextcruise2008@aol.com.

Pleasant Ridge is known for its historic homes, tree-lined streets and active citizens who dedicate their time for the betterment of the community. A long tradition of community pride is reflected in the City's beautiful parks along Woodward Avenue and its pristine neighborhoods. Many of the houses in Pleasant Ridge are part of a nationally-recognized historic district and all the homes reflect the care and attention which assures that Pleasant Ridge will remain a beautiful community for generations to come. A strong sense of community, dedication to historic preservation and ideal location makes Pleasant Ridge the perfect city for all ages, interests and lifestyles. Go to www.cityofpleasantridge.org.

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Record Losses at Ford; Big Changes Coming?

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Stocks Down

Posting the worst quarterly loss in its history, Ford Motor Co. says it is "aggressively accelerating" plans to shift from a truck-based to high-mileage, car and crossover-based company.

Despite an $8.7 billion loss - driven largely by losses in the U.S. and an $8.03 billion write-off of North American assets and bad loans - CEO Alan Mulally tried to put a good face on Ford's worsening performance, touting "strong results" in many of its overseas markets, such as China, and highlighting plans to consolidate U.S. and European product lines.

But it was difficult to spin an upside on a quarter when virtually everything went wrong, where soaring fuel prices caused the collapse of sales of some of Ford's traditionally strongest models. In recent months, the full-sized F-Series pickup, the nation's best-selling model line for 27 years, has been repeatedly surpassed by high-mileage imports, such as the Honda Civic.

For their part, industry analysts had collectively been forecasting a loss of around $0.27 a share for the April-June quarter. But the figures came in at a loss of $3.88 a share, or $0.62, if you exclude those one-time items.

Ford's latest dose of bad news comes in bitter contrast to the positive outlook it had shown prior to the run-up in fuel prices that began earlier this year. Through much of 2007, Mulally and his top lieutenant, President of the Americas Mark Fields, had been forecasting a return to by 2008, but both now decline to say when the company will see any black ink.

If anything, Mulally said during a conference call scheduled to discuss the latest earnings, "The second half will continue to be challenging."

Yet Ford officials refused to remain glum, and highlighted the potential of a turnaround plan that has been accelerated sharply since fuel prices started nearing $4 a gallon.

"We have absolutely the right plan to respond to the changing business environment and begin to grow again for the long term," Mulally said in a statement.

Elements of the updated turnaround plan have been dribbling out in recent weeks and include an expanded role for Ford's European operations in the revival of the company's North American presence.

A sizable number of European models will be brought to the States, starting with the upcoming launch of the Transit Connect, a small commercial van. More significant, at least from a volume standpoint, will be the 2010 launch here of such Euro-derived models as the subcompact Fiesta and next-generation Focus compact. A small car also will be added to the ailing Mercury division's line-up.

During their briefing, Mulally and Fields noted that light truck production will continue to be ratcheted down by several hundred thousand units more than originally planned during the last half of 2008.

More significantly, three plants traditionally used for truck production will be converted to build passenger cars and car-based crossovers. That includes a Mexican facility that will switch from F-Series production to the new Fiesta, and the suburban-Detroit Michigan, truck plant, which will stop building models like the Lincoln Navigator and switch to several unnamed "Global C-Car" models, possibly including the next Focus.

Meanwhile, Ford also hopes to revive its once best-selling Explorer SUV, converting it to a car-based crossover when it launches the next generation of the product several years from now.

Like its domestic rivals, Ford found it highly profitable to produce high-margin trucks, such as the F-Series and Navigator. By comparison, it has traditionally struggled to make money on cars, particularly small models like Fiesta and Focus. Can it improve the business case for small sedans, coupes, hatchbacks and wagons, going forward?

That remains to be seen, but it will help that the automaker will share product development - and many of the mechanicals - with Europe. The savings through expanded economies of scale should be "staggering," said Mulally. Analysts say it will also help that Americans are changing the way they view small cars, perceiving models like the popular Mini Cooper as worth the sort of premium normally paid for larger models. If Ford can change perceptions of products like Fiesta, it may also be able to earn a profit.

But with the transformation of its lineup still several years away, Ford is expected to continue struggling, especially as the automaker doesn't forecast a revival of the overall American market until 2011. The question is whether it can reign in costs - with projected savings of more than $5 billion this year - enough to survive with its dwindling supply of cash.

Chrysler Trimming Another 1,000

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Dodge Durango Hybrid

Chrysler is about to begin the third round of white-collar job cuts it has made in 18 months, announcing plans to eliminate about 1,000 salaried jobs worldwide.

As the maker is primarily based in North America, most of the cutting will come at its global headquarters and technical center in the Detroit suburbs.

The latest reduction follows a dismal 22 percent decline in the automaker’s sales during the first half of 2008. But it leaves observers wondering just how much further the company can continue to cut, especially as it struggles to develop the smaller cars and crossovers it desperately needs to replace the big pickups and SUVs American motorists have largely walked away from.

“The signs of economic challenge continue for the U.S. market and as a result, further actions must be taken to improve our business and return to profitability,” Chrysler’s director of human resources, told employees in an e-mail.

The cutbacks began even before the break-up of DaimlerChrysler AG, but have accelerated since the U.S. maker was sold off by its former German partner, Daimler AG. New parent Cerberus Capital Management does not release financial figures, but it is considered likely that Chrysler is rolling up serious losses.

Chrysler is by no means alone. General Motors announced last week plans to trim salaried job costs by 20 percent, while Ford has targeted a 15 percent reduction. It remains unclear how much of those cuts will be focused on U.S. operations and Detroit, in particular.

IIHS Tests Small Trucks–And Most Are Left Wanting

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2008 Toyota TacomaThe Insurance Institute for Highway Safety (IIHS) has tested the crashworthiness of compact trucks in side impacts--and the Toyota Tacoma is the only truck to emerge with its safety reputation intact.

The Tacoma earned the IIHS's "good" rating for side-impact protection in the test of 2008 models. Its optional side and curtain airbags provided enough protection for crash dummies to get the rating, the agency's highest. The Tacoma also has a "good" rating for front-impact protection.

Other compact trucks didn't fare as well. The Dodge Dakota, Ford Ranger, and Nissan Frontier all were rated "marginal" by the insurance industry-funded group, while the Chevrolet Colorado (and we correlate, the nearly identical GMC Canyon) was given a "poor" rating for side impacts.

The IIHS notes that all the vehicles involved in the test save for the Frontier and the Tacoma lacked stability control. (The GM trucks will have it standard in 2009.) The Tacoma was the only truck offered with side airbags as well. It also notes small trucks have the highest driver death rates on the road.

As a result of these latest tests, some of TheCarConnection.com's safety ratings for reviewed vehicles have changed. Click the trucks above if you're shopping and want to find more about the safety ratings of the vehicle of your choice.

Ford’s Big Plan Boosts Small Cars, Mercury–and Ranger

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 2010 Ford Fiesta
Ford's plan for restructuring the company includes a comprehensive move into smaller crossover vehicles and European cars, and gives the evergreen Ranger yet another reprieve from the chopping block.

The plan, announced this morning by the company as it faces an $8.7 billion net loss for the second quarter--after $8 billion in one-time charges--will cut truck production at three plants and will bring over a raft of new vehicles, including a production version of the Lincoln MKT concept we showed you earlier this year, as well as a new small car for Mercury in 2010, along with the long-awaited hybrid versions of the Ford Fusion and Mercury Milan sedans.

“We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,” said Ford President and CEO Alan Mulally. “Ford is moving aggressively using our global product strengths to introduce additional smaller vehicles in North America and to provide outstanding fuel economy with every new product.”

The sprawling, no-stone-unturned plan has many products moving, dying or living on--here's the official word from Ford:

  • 2009 Ford F-150: the new truck goes on sale in the fall with a 7-percent fuel economy boost, Ford says

  • 2010 Ford Fusion, Mercury Milan, Lincoln MKZ: these sedans go on sale in early 2009,; the Fusion and Milan will exceed fuel economy of four-cylinder Toyota Camrys and Honda Accords

  • 2010 Ford Fusion Hybrid and Mercury Milan Hybrid: Ford says fuel economy will top the Toyota Camry Hybrid

  • 2010 Ford Mustang: Will come in coupe, convertible, and glass-roof models starting in early 2009; TheCarConnection.com expects a Los Angeles auto show debut

  • 2010 Ford Taurus: the new four-door will emerge in mid-2009 with EcoBoost engines

  • 2010 Ford Transit Connect: this small multi-purpose van arrives in mid-2009

  • 2010 Lincoln seven-passenger crossover: the production version of the Lincoln MKT concept arrives with a 300-hp-plus EcoBoost V-6 in mid-2009

  • 2011 Ford Fiesta: built in Mexico, the new Ford Fiesta arrives in both four- and five-door versions in early 2010

  • 2011 Ford Focus comes over from Europe in both four- and five-door versions in 2010

  • 2011 Mercury small car: could be spawned from either the Fiesta or Focus, it in 2010; Ford confirms Mercury will stay in its lineup of brands

  • 2011 European small vehicle: a “whitespace” entry in North America, Ford says, this likely is a version of Ford's European C-Max midi-van; it's due in 2010

  • 2011 Ford Explorer: likely built from the Ford Taurus platform and replacing the Taurus X in nomenclature, this was previewed by the Explorer America concept from the Detroit auto show. Ford says with unibody construction, EcoBoost, six-speed, weight savings and up to 25 percent better fuel economy, the new Explorer arrives in 2010

  • In addition, Ford plans to upgrade or replace all its engines in U.S. vehicles by 2010, and to offer six-speed transmissions on most of its products. Ford also plans to offer its direct-injection, turbocharged EcoBoost engines on more than 80 percent of its North American lineup by the end of 2012.

  • And finally, Ford will extend the life of the Ford Ranger pickup for another two years. Its plant in Minnesota had been planned for closure next year; Ford will build the compact truck there for at least another two years.


Ford's plans are underpinned by the assumption that a U.S. economic recovery won't come for at least 18 more months; that Ford will control about 14 percent of the U.S. market with its domestic brands (Volvo not included); and that the price of oil isn't going anywhere soon.


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