NINETY EIGHT REGENCY

Why Audi, BMW and Mercedes will dominate China's luxury market Automotive News Europe -- October 18, 2010 06:01 CET SHANGHAI -- While dozens of mass-market brands brawl to gain share in China's automotive market, the luxury segment is dominated by just three. Audi, BMW and Mercedes-Benz control nearly 76 percent of China's luxury car sales, and their market share over the next few years may even grow. Why? The German brands enjoy two huge advantages: lower prices and products that have been customized to satisfy Chinese tastes. First, the German automakers have stretched the wheelbase of their products to satisfy wealthy Chinese customers who prefer to sit in the spacious rear seat of their chauffeured car. Audi AG has two "stretch" models on sale in China: the A4L and A6L. Meanwhile, BMW AG has launched an extended-wheelbase version of its 5-Series, and Mercedes-Benz sells a lengthened E-Class sedan. These models were developed specifically for the Chinese market, and they have contributed hugely to sales. For example, Audi sells 11 models in China, but the A4L and A6L stretch models account for 60 percent of Audi's total sales. Second, the German makes enjoy big price advantages over imported brands because they produce cars in Chinese assembly plants. The Audi A4L, A6L and Q5; BMW 3-Series and 5-Series; and Mercedes C-Class and E-Class all are built in China. Except for the Audi Q5 and Mercedes E-Class, the other five locally produced models are among the 10 best-selling luxury models in China. By contrast, luxury brands such as Lexus, Infiniti, Jaguar and Land Rover are produced overseas. Lower prices To get an idea of the high tariffs on imported vehicles, consider the huge difference in the price of the locally produced Mercedes C300 and the imported version. The made-in-China model has a starting price of 478,000 yuan ($71,700), well below the imported version's price tag of 548,000 yuan. Luxury brands that import all their vehicles suffer a severe price disadvantage. And if they also lack products customized to cater to local tastes, they won't make much progress in the vast Chinese market. To be sure, some non-German luxury brands do sell locally built stretch models in China, such as the Cadillac SLS (a stretch version of Cadillac STS) and Volvo 80L. But these models are not selling well due to low brand recognition and the lack of an extensive dealership network. Cadillac is trying to fix that problem by expanding its dealer network, while Volvo's owner, Zhejiang Geely Holding Group Co., plans to build two Volvo assembly plants in China. But the German brands aren't sitting still. Over the next two years, Audi, BMW and Mercedes-Benz plan to launch additional extended-wheelbase models in China. That means the gap between the German brands and their competitors will only widen instead of shrink. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101018/COPY/310189956/1131#ixzz12jEl3pRe

Just watching you make progress and work on your Toronado reminds me of how I had to work on mine and do a lot of the same stuff you are doing.

Brazil's boom is good news for Fiat and VW October 12, 2010 - 11:30 pm ET The unthinkable has finally happened. Brazil has overtaken Germany as the fourth-largest market for passenger car and light commercial vehicle sales. That's good news for Fiat, Volkswagen and other European volume carmakers. Fiat and VW have dominated the Brazilian auto market for decades. Their rivals Renault and PSA/Peugeot-Citroen have big growth plans for South America and Brazil, the region's biggest market. Let's take a look at the numbers: In the first eight months, Brazilian car and LCV sales grew 8.4 percent to 2.08 million while Germany fell 27.3 percent to 2.03 million, according to market researchers JATO Dynamics. Germany still leads in terms of passenger car sales. German new-car sales fell 28.7 percent to 1.9 million in the first 8 months while sales in Brazil were up 5.5 percent to 1.78 million. But LCV sales have boomed so far this year in Brazil, up 30.5 percent to 295,737, while in Germany there was only a modest 5.2 percent growth to 120,054. These vehicles are more profitable than cars because they are less complex to build and pricing is usually less aggressive. Even bigger profits Brazil is Fiat's biggest source of profit and for VW it is second only to China. Each company earned about 1 billion euros operating profit from Brazil last year. This year things look even better, not only because of surging sales, but also because Brazil's currency, the real, has strengthened, making profits earned by European automakers even healthier when converted into euros. Losers in Brazil's boom are German premium automakers Audi, BMW and Mercedes-Benz, which are niche players in a market dominated by bread-and-butter cars. But Brazil's lack of appetite for premium vehicles is more than made up by China's insatiable desire for luxury cars. German premium automakers are probably already making more than half of their profits in China, according to Max Warburton of Bernstein Research. So if Europe's automakers -- both volume and luxury brands -- are not having a great year in their depressed home markets, at least their profits are secure if Brazil and China continue to grow. A recent Goldman Sachs report said European automakers will swing to a combined net profit of 12.3 billion euros this year from a net loss of 6.83 billion euros in 2009. Things are improving fast -- the new forecast was 38 percent higher than a 7.32 billion-euro combined net profit for European automakers predicted by Goldman Sachs in May. Read more: http://www.autonews.com/article/20101012/BLOG12/310129973/1131#ixzz12FELSjmk

Lamborghini, Ferrari and Bentley expand use of carbon fiber Rhoda Miel Automotive News Europe -- October 13, 2010 06:01 CET European carmakers such as Lamborghini, Ferrari, Bentley and McLaren made carbon-fiber composites the standard for high-end supercars. Now they're taking carbon fiber even further, creating new ways to reduce molding time and get more of the material into structural parts. Automobili Lamborghini S.p.A made its new technology the centerpiece of its Sesto Elemento concept, which was introduced Sept. 30 at the Paris auto show. The car uses carbon fiber for the passenger compartment, the front and rear-end structures, suspension components, the interior, all exterior panels and suspension components. Even the tailpipe is made from a carbon and glass-ceramic composite. The new thrust, said Stephan Winkelmann, CEO of Lamborghini, is part of an effort to slash weight and push performance. "The Sesto Elemento shows how the future of the super sports car can look," Winkelmann said. "Extreme lightweight engineering, combined with extreme performance, results in extreme driving fun. "It is our abilities in carbon-fiber technology that have facilitated such a forward-thinking concept." BMW active, too And Lamborghini is not alone in taking carbon fiber further. During the Society of Plastics Engineers' automotive composites conference in suburban Detroit last month, engineers from Lamborghini were joined by engineers from Bentley Motors Ltd. and McLaren Automotive in talking about new production techniques for carbon fiber. Bentley has added cobalt to its carbon fiber to make it magnetic, and is using magnets to automate the layup process, which speeds production and cuts costs. McLaren has been focusing on liquid-resin infusion. BMW AG has developed a carbon fiber processing technique that it will use on its future Megacity Vehicle electric car. Lamborghini -- which has been working with Boeing Co. engineers at its Advanced Composite Structures Laboratory in Seattle, Washington, and runs its own research center in Italy -- is focused on advanced compression molding using short carbon fibers in a low-pressure injection mold, said Paolo Feraboli, director of the structural carbon-fiber research group. Lamborghini works with golf club maker Lamborghini also has signed a development agreement for carbon fiber with golf club maker Callaway Golf Co. to expand the technology. The process, which Lamborghini calls "forged composite," is far faster than traditional hand processing, Feraboli said. That system could produce a maximum of four passenger cells, called monocoques, per week, which is too slow even for a low-volume producer. Lamborghini considered vacuum-assisted resin transfer molding, similar to the process used for yachts and other marine structures, but it had problems with variable thickness on mold lines. Traditional resin transfer molding provided consistent thickness and a controlled shape, but requires an expensive machine and large and expensive tooling, and it would be difficult to achieve large parts such as the monocoque and the front and rear structural cells. Using a method with low pressures, vacuum assist and carbon tooling still will require investment in injection presses. The new process has more flexibility in tooling than the traditional resin transfer molding system and speeds up production, Feraboli said. 30% lighter than aluminum Lamborghini's experiment using compression molding with a carbon fiber sheet molded compound produced a structural suspension part that was 30 percent lighter than an aluminum part, and its three-minute cycle time beat both traditional carbon-fiber and aluminum processing, he said. The Sesto Elemento concept car weighs 2,202 pounds (999kg), about 750 pounds (340kg) lighter than the current Gallardo LP Superleggera. Lamborghini CEO Winkelmann said the Sesto Elemento is a clear indication of where Lamborghini will take carbon fiber. "Systemic lightweight engineering is crucial for future super sports cars," he said while introducing the car in Paris. "We will apply this technological advantage right across our model range." Its high-end competitors will be on the same track. Bentley has focused on ways to speed the hands-on production setup for carbon-fiber parts, said Antony Dodworth, principal research manager with Bentley Materials Technology. "We need to automate," he said. The process, called "directed carbon-fiber pre-forming," adds a very small amount of cobalt to the carbon fiber. The company then can robotically shoot a fine stream of carbon fiber into a magnetized mold at a rate of 6 kilograms per minute. "The robot can achieve that delivery all day, every day," he said. Bentley compared its automated system to a bumper system for a racecar that takes a day and a half with hand labor, Dodworth said. Its new process completed the layup in 20 minutes. The company already has used the process in a structural carbon-fiber spare wheel well on its Mulsanne sedan. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101013/COPY/310139996/1193#ixzz12FDhJdpa

A tale of two lost automakers in search of their mojo. By Peter M. De Lorenzo (Posted 10/12, 12:00 p.m.) Detroit. No, I’m not going to write about the Chevrolet Volt this week in this column, although I do have a mini-rant in this week’s “On the Table” if you just have to read more about it. I’d rather talk about two Japanese car industry stalwarts – Toyota and Honda – and where they’ve been, where they are now and where they need to go given increasingly stiff competition from Ford and the Hyundai-KIA group, etc. Five years ago you could pretty much predict the tone of any article mentioning either Toyota or Honda, the two most successful Asian automakers of their time. In Toyota’s case you’d read terms such as “Asian juggernaut” and “force to be reckoned with” to describe the Japanese automaker’s inexorable climb on the way to becoming the world’s largest automaker. Toyota’s market share was on an unstoppable upward trajectory, their profits were mind-boggling (helped in no small measure by Japan, Inc.’s direct manipulation of the yen), their cash on hand was staggering to contemplate, and with the U.S. automakers imploding – GM in particular – there was nothing standing in their way of world domination. As for Honda, it was the feisty automaker that marched to a different drummer. Fiercely independent and proud that its full name was the Honda Motor Company, its specialty was visionary, innovative thinking and products that bristled with engineering creativity and overall efficiency, cars that for the most part attracted hordes of enthusiastic customers. Today, Toyota’s squeaky-clean, greener-than-thou image has been decimated by a series of recalls and humiliating public rebukes from the U.S. government, which, incensed with what appeared to be a habitual pattern of denial - if not an outright refusal to deal with reality - when it came to anything to do with product flaws or the potential need for recalls, didn’t hesitate to pummel the automaker for myriad sins, both real and imagined. And the American consumer public took notice. Make no mistake, these revelations about Toyota revealed a soulless, insular culture run by bean-counting bureaucrats that rivaled the worst corporate practitioners in Detroit’s “bad old days.” Hell-bent on world domination, the executive leadership at work at Toyota at the time completely took their eye off of the ball, and walking away from its founding principles of disciplined product improvements and relentless adherence to quality embarked on a program of more - as in more factories and more volume - all in the interest of eclipsing GM as the world’s largest automaker. And it blew-up in their faces. Honda didn’t have a grand plan for world domination but they, too, took their eye off of the ball, walking almost completely away from the innovative, risk-taking creativity that was their hallmark, instead unleashing products that were weighed-down with a leaden conservatism and a shocking - for Honda - tone of sober mediocrity that was almost unfathomable given their history. In short, both companies completely lost their mojo. Now granted, neither company is starting from scratch, as Toyota’s loyally conservative multitudes have basically ignored all of the bad press and returned to their Toyota dealers en masse, finding comfort in the blandtastic appliances that they’ve grown to love. And though Honda’s fortunes aren’t looking nearly as rosy, they have enough left in their tank to muster a pulse at least. But it’s not enough and both companies know it, which is why today they’re scrambling to reinvent themselves. Toyota is now being driven by Akio Toyoda, a confirmed hot-rodder at heart and one known to dabble in racing on occasion. Toyoda was the prime mover behind the $375,000 Lexus LFA super car - Toyota’s new image-enhancing flagship - and he is behind Toyota’s new emphasis on creating hip and cool cars that are actually fun to drive. They’ve even formed a new company division to address just that. Called the Sports Vehicle Management Division, these are the guys and gals who will be charged with injecting life into the moribund Toyota product line. But churning out the upcoming new FT-86 Sport Coupe and a hipper Scion tC does not constitute a head start on transforming Toyota’s image, at least here in the U.S. It will take much more than that. And running in NASCAR to affirm the company’s perennial wannabe quest to become part of the American fabric isn’t going to cut it for Toyota either. And besides, any of the really new products – the FT-86 in particular - allegedly planned by Toyota to ratchet-up their hipness quotient aren’t going to trickle in before 2012 at the earliest, so excuse me for looking at my watch and saying, “really?” Besides, Toyota’s image of solid predictability has been so burnished into the American car-buying consumer’s brain that any of their forays into building sporty cars and racing have always been viewed as fringe behavior and not the real Toyota. And it’s hard for me to view this latest revitalization program as being any different. To make real inroads Toyota will have to get back into grassroots racing in this country while engaging in other high-visibility professional racing programs of significance as well. (Why Toyota doesn’t have a high-profile presence in the American Le Mans Series is beyond baffling to me, to say the least.) And it will be a long, difficult slog to convince consumers that Toyota is the maker of hip, desirable cars. We’re talking years – as in a half a decade at least – before Toyota can expect to see any needle-moving results. Needless to say Akio & Co. has their work cut out for themselves, big-time. Honda is even in more dire straits given the monumental task ahead facing the company. And it’s even worse than that since it’s a challenge entirely wrought of its own making. Honda hasn’t just squandered its considerable legacy of maverick innovation in this country among its hard-core constituents, the company has unleashed a brace of piss-poor monuments to mediocrity that don’t deserve to wear the Honda badge, and it is killing them. The current Accord is woefully uninspired, the Crosstour is a flat-out abomination, and the new CR-Z is a major miss, just to name a few. As a matter of fact the CR-Z is the car that worries me the most in considering Honda’s immediate future. If this was the car that was supposed to bring the Honda Faithful back they blew the opportunity to smithereens. Honda used to be the car company that delivered efficiency as a matter of standard operating procedure, but it was the way they went about it and the way they instilled dynamically exciting feel and responsiveness into their cars while doing it that created legions of passionate fans. The CR-Z seems to indicate a massive internal fight within Honda for the very soul of the company. There’s a faction of downbeat and downtrodden Practicality Believers, minions who have given up the fight and want Honda just to follow the rest of the pack in terms of delivering efficiency in expected ways. Those are the ones who watered-down the CRZ-s performance, leaving it to be unimpressive as a hybrid in terms of mileage and as a sports car. And there are the Honda True Believers, the ones who know what Honda was and is supposed to be and who believe that Honda can not only get there again but that they must get there again if they are to survive with the company’s founding mission intact. These are the people who want to build a drop-dead gorgeous ultra-high-performance, ultra-high-efficiency successor to the NSX sports car, a machine that would encompass the principles of the company founder while establishing a new vision for the Honda of tomorrow. I hope the latter faction wins for Honda’s sake and for the throngs of enthusiasts everywhere who can’t wait for Honda to shake itself out of the doldrums of mediocrity that have plagued the company for far too long now. Make no mistake - both Honda and Toyota have reasons for getting their collective acts together and finding their mojo again. Internally they both have to focus on a direction and run with it before it’s too late, because both companies now realize the high cost of taking their collective eyes off of the ball. Externally, the global competition keeps getting tougher. With a re-energized Ford and to a lesser degree GM, and an ultra-aggressive VW Group making inroads in the market at every turn, it’s growing exponentially more difficult to compete. And companies that go through the motions while just phoning it in are not going to succeed. But by far the biggest threat to both Honda and Toyota is the Hyundai/KIA group. Efficient when they have to be, luxurious where they need to be and sporty when they want to be, Hyundai/KIA isn’t just in Honda and Toyota’s rearview mirror, they’re in the back seat and about to climb over the front seat to take the wheel. As the Wicked Witch of the West once famously said, “Oh what a world, what a world...” And that’s the High-Octane Truth for this week.

Poll: Will the 200 be enough to get Chrysler back into the family sedan game? by Jeremy Korzeniewski (RSS feed) on Oct 12th 2010 at 8:00PM Goodbye, Sebring, thanks for the memories... sort of. Sadly, most of the recollections we can muster that include Chrysler's mid-size sedan aren't ones we're particularly fond of – at least not when thinking of the nameplate's current generation, which debuted in 2007 to a chorus of boos amongst the motoring press and limp sales directly thereafter. Why? Taking lackluster driving dynamics and a disappointing interior out of the equation, the biggest problem with the Sebring has been that it's widely considered to be one of the least attractive sedans on the road. And so it's with eager anticipation that we look forward to the introduction of the Chrysler 200 for 2011. The Pentastar brand has just pulled the covers (mostly) off its thoroughly updated family sedan, and for the most part, we like what we see, though admittedly it's a long way off from the more adventuresome 200C concept car that wowed Detroit Auto Show goers in 2009. There may be a few nits that need picking, however, starting with what seems to be a completely carryover greenhouse. Also, the fact that a four-speed automatic gearbox is still available on some models is a disappointment (though it's likely just for rental car-spec models), and we've yet to see the full interior. We know there are a lot more specifics yet to be revealed, but the question that most needs answering today is whether or not you, dear readers, think that Chrysler has done enough with the 200 to differentiate it from the unloved Sebring. Take a moment to scroll back through the photos (click here if you want a quick refresher on the 2010 Sebring), then be sure to take part in our completely unscientific poll below. Finally, feel free to have your say in our 'Comments' section below. Will the 200 be enough to get Chrysler back into the family sedan game? It's gorgeous. Nicely done, Chrysler! This is a major step in the right direction. Looks familiar, but not too bad. Let's see how it drives. It isn't differentiated enough from the Sebring. Awful. Next! link: http://www.autoblog.com/2010/10/12/poll-chrysler-200/

CHRYSLER'S SEBRING-REPLACING 200 SEDAN FULLY REVEALED! OFFICIAL IMAGESTEASER IMAGES By Mark Kleis The end to the Sebring era has arrived, today Chrysler has completely revealed the 200 mid-size sedan for the 2011 model year. At the time of Chrysler's first announcement that the 200 would replace the Sebring for 2011, we were given just three teaser shots, and then yesterday we came across nine more images. Now, Chrysler has officially taken the wraps off of their heavily revised mid-cycle refresh that has transformed the fleet-queen Sebring into a much improved sedan aimed at securing consumer's interest. It is clear that the 200 shares the same body and greenhouse as the Sebring, but it is equally clear that Chrysler spent considerable time changing as much as it could without completely reinventing the entire vehicle. Chrysler says that virtually every system in the sedan is new or upgraded for 2011, in hopes of giving the Chrysler 200 its own identity and space in the highly competitive mid-size sedan segment. Exterior and sheet metal upgrades include: front and rear fascias and fenders, grille featuring the new Chrysler brand winged badge, hood, rear decklid and exterior mirrors, new projector headlamps and fog lamps, new LED taillamps and a LED center high-mounted stop light. Although largely based on the current Sebring model, Chrysler says the new 200 features “exceptional craftsmanship inside and out, a refined and spirited driving experience, innovative technology, an abundance of standard safety features and an extraordinary level of standard content.” Underhood, the 200 will come standard with a 2.4-liter four-cylinder, backed by either a four-or six-speed automatic transmission. Chrysler’s new 3.6L V6 will also be on offer – hooked to a six-speed auto – generating 283 horsepower and 260 lb-ft of torque. Chrysler says the 200’s driving dynamics are vastly improve, thanks to stiffer body mounts, a softer ride rate, revised suspension geometry, a new rear sway bar and upgraded tires. The 200 will be produced at Chrysler’s Sterling Heights Assembly Plant and is scheduled to arrive in dealers sometime during the fourth quarter and will arrive in Chrysler dealers before the end of the year. LINK: http://www.leftlanenews.com/chrysler-200.html

TATA ARIA: INDIA'S FIRST CROSSOVER By Drew Johnson India’s Tata Motors is best known for making rugged SUVs – and of course its recent purchase of the Land Rover and Jaguar brands – but the off road-brand has just announced the launch of India’s first four-wheel drive crossover. Dubbed the Aria, Tata describes the CUV as “a luxurious creation with the finesse of a sedan and the muscle of an SUV all blended in one car.” At first glance, the Aria appears to be a Nissan interpretation of the Mercedes-Benz R-Class. However, the Aria has a higher ride height than your typical crossover, giving it the off-road chops of a traditional SUV. Inside the Aria features three rows of seating, and luxuries not typically found in the Indian market, including a height-adjustable driver’s seat, power mirrors, a rear-view camera, automatic climate control, Bluetooth, glove box chiller, rain sensing wipers and the segment’s first in-dash GPS-based navigation system. Traction control, ABS, ESP and six airbags should ensure the Aria is one of the safest vehicles on India’s roads. Power for the Aria will be provided by a 2.2L diesel engine, delivering 140 horsepower. All Aria models -- Pride, Prestige, Pleasure – will come equipped with four-wheel drive. No word on pricing or availability, but Tata says the Aria will be sold in 25 Indian cities. LINK: http://www.leftlanenews.com/tata-aria.html

Chrysler posts new photos of 200 sedan (ex-Sebring) 05:29 PM Chrysler Group has posted photos of the new 2011 Chrysler 200, redone in an attempt to have a competitive CAPTIONBy Chrysler entry in the tough mid-size sedan market. Chrysler gave no on sale date, but said it will arrive at dealers before year-end. The makeover with a new name of the much-maligned Sebring sedan, says Chrysler, touched "virtually every system" in the car. The interior is new and its ambiance should be helped by NVH (noise, vibration and harshness) upgrades that include acoustic glass in the windshield and in the front side windows as well. Bells and whistles include projector headlamps and LED rear lighting. Chrysler says it has given the front-drive 200 improved handling, along with its new global engines: the 2.4-liter four (with four or six-speed automatic) and the Pentastar V-6 (with six-speed auto). Here's Chrysler's full-pitch: Craftsmanship, Elegance and Value: The New 2011 Chrysler 200 October 12, 2010 , Auburn Hills, Mich. -- Chrysler Group LLC today released additional photos of the new 2011 Chrysler 200 mid-sized sedan. Offering consumers exceptional craftsmanship inside and out, a refined and spirited driving experience, innovative technology, an abundance of standard safety features and an extraordinary level of standard content, the 2011 Chrysler 200 is an exciting alternative for customers that want style and substance, all at a surprising value. Virtually every system in the sedan is new or upgraded for 2011, giving the Chrysler 200 its own identity and space in the highly competitive mid-size sedan segment. Exterior and sheet metal upgrades include: front and rear fascias and fenders, grille featuring the new Chrysler brand winged badge, hood, rear decklid and exterior mirrors, new projector headlamps and fog lamps, new LED taillamps and a LED center high-mounted stop light. The Chrysler 200 gets a new powertrain lineup featuring the 2.4-liter I-4 World Gas Engine mated to either a four-speed or six-speed automatic transaxle, or the new 3.6-liter Pentastar V-6 engine mated to a six-speed automatic transaxle; improved ride and handling tuning which includes stiffened body mounts and softer ride rate, improved suspension geometry with a raised roll center, a new rear sway bar, and new tires and an extensively upgraded treatment for the reduction of noise, vibration and harshness including acoustic laminated glass for the windshield and front door windows. Quality materials abound in the beautifully updated new interior for 2011. Updates include a new instrument panel, bezels and gauge face, upgraded seats with a new design that incorporates more cushion material and revised spring geometry as well as new leather and cloth seating materials, new "soft touch" armrests and dash, and new heating and cooling outlets in the instrument panel with improved design and functionality. The new 2011 Chrysler 200 provides drivers a beautifully inspired sedan that doesn't compromise safety or practicality and offers the best value in its class. The Chrysler 200 will be built at the Sterling Heights Assembly Plant in Sterling Heights, Mich. and will arrive in dealerships in the fourth quarter 2010. Consumers can visit www.chrysler.com for additional information regarding the new 2011 Chrysler 200 sedan. LINK: http://content.usatoday.com/communities/driveon/post/2010/10/chrysler-photos-200-sedan-redone-sebring/1

Preview: 2011 Chrysler 200 By Nelson Ireson Editor October 12th, 2010 When the Chrysler 200C EV made its debut at the 2009 Detroit Auto Show, the automotive world was at once shocked by the attractive design and pessimistic about its then-electric drivetrain. While we don't get the 200C EV shown, we do get one much better looking, if still somewhat Sebring-ish, sedan in the 2011 Chrysler 200. Not to mention a serious upgrade from the previous Sebring. While the production car loses some of the more intricate bends and curves of the concept, particularly around the front end, it gains a side character fold and otherwise maintains the surprisingly elegant proportions aside from the still-identifiable Sebring greenhouse. LED tail lights, projector headlamps and foglamps, and an entirely new look for the front and rear end ensure nobody will mistake the Chrysler 200 for its predecessor. The best part of the upgrade, however, is under the hood. The 2.4-liter four-cylinder "World Engine" is now the base choice, paired with a choice of four- or six-speed automatics. The star of the engine lineup is the 3.6-liter Pentastar V-6 engine, available only with the six-speed auto, which should deliver around 300 horsepower, making the 2011 200 peppy enough to run with most of the midsize luxury sedan class. The suspension is also retuned for tauter handling without compromising comfort, including stiffer body mounts, a new rear sway bar, and upgraded tires balanced against softer spring rates. The cabin is also aimed to be a quieter place, with acoustic laminated glass for the windshield and front door windows. Beyond the sleek bodywork and drivetrain, Chrysler says virtually every system in the sedan is new or upgraded for 2011, a must-do item on the checklist to make the Sebring's replacement a car worth owning. Materials, in particular, were a weak spot for the Sebring, and Chrysler says the new materials include soft-touch arm rests and dash, plus new leather and cloth upholstery. The design is updated too, with a new instrument panel and center stack. Even the seats are revised, with more cusion material and "revised spring geometry" presumably to improve comfort. The 2011 Chrysler 200 will start production in Michigan soon, with delivery slated for sometime during the fourth quarter of this year. link: http://www.motorauthority.com/blog/1050367_preview-2011-chrysler-200

I sometimes wonder what would happen if the big three went back to the brands and models they had in the past and redesigned them, and made them relevant to todays buyers what would happen? I am not talking retro either. In some cases yes, but most no. Sometimes I look and Cadillac and Lincoln and think how did you forget to make a world class luxury car?

CHRYSLER’S SEBRING-REPLACING 200 SEDAN TEASED By Mark Kleis See How Affordable a 2011 Chevrolet Corvette Convertible is. Get Info. www.Chevrolet.com/Convertible Officially ending the Sebring era, Chrysler has announced the launch of the 200 mid-size sedan for the 2011 model year. At the time of Chrysler’s announcement we were given just three teaser shots, now we have three times as many to give us a much better idea of what the 200 will resemble. It is clear that the 200 has taken on a style of its own, but it appears as if the general shape and design of the Sebring are still hiding in plain sight. Although largely based on the current Sebring model, Chrysler says the new 200 features “exceptional craftsmanship inside and out, a refined and spirited driving experience, innovative technology, an abundance of standard safety features and an extraordinary level of standard content.” From the images released, we can clearly see the 200 will sport all-new front and rear fascias, although it appears as though the profile of the Sebring will live on. Underhood, the 200 will come standard with a 2.4L four-cylinder, backed by either a four-speed or six-speed automatic transmission. Chrysler’s new 3.6L V6 will also be on offer – hooked to a six-speed auto – generating 283 horsepower and 260 lb-ft of torque. Chrysler says the 200’s driving dynamics are vastly improve, thanks to stiffer body mounts, a softer ride rate, revised suspension geometry, a new rear sway bar and upgraded tires. The 200 will be produced at Chrysler’s Sterling Heights Assembly Plant and is scheduled to arrive in dealers sometime during the fourth quarter and will arrive in Chrysler dealers before the end of the year. link: http://www.leftlanenews.com/chrysler-200.html

Chrysler 200 gets teaser site, shows (nearly) full frontal by Jonathon Ramsey (RSS feed) on Oct 11th 2010 at 10:58AM The slow tease of the Chrysler 200 took another bound with the revelation of a teaser site. The four-door sedan charged with erasing memories of the second-generation Sebring has a lot of work to do, and Chrysler is talking it up and rolling it out like it's sure it has something that will do the trick. With either a 2.4-liter four or the 3.6-liter Pentastar V6, it promises to be either miserly or powerful enough to please. Yet it isn't only the Sebring's demons that this sedan needs to run over a cliff, for the lauded 200C show car car practically lurks in the shadows behind the one teased in the pic above. That show car, full-bodied and sensuous, showed what Chrysler really had on its mind and made everyone hope Chrysler would put it in people's driveways. While we know that concepts will take some trimming on the way to retail, we hope The Pentastar remembers we'd like a production 200C, not just a better Sebring, a car that was so far behind the curve that it would've warranted a clean-sheet were Chrysler in a better place financially. You can have a look at the latest details in our expanded gallery of high-res teaser photos below. Appreciate the tips, everyone! link: http://www.autoblog.com/2010/10/11/chrysler-200-gets-teaser-site-shows-nearly-full-frontal/

2011 Chrysler 200 Partially Revealed In New Teasers By Viknesh Vijayenthiran Editor October 10th, 2010 Few who've driven the Chrysler Sebring have much in the way of kind words to say about it. A coarse engine, an interior that wouldn't pass muster at Fisher-Price and dated exterior design combine to make a car that's destined for a myriad of "worst of" lists. And Chrysler realizes that, in a big way. The automaker is now working on a heavily revised version of the car that will go by the name 200. Due in the fourth quarter of the year, the 2011 Chrysler 200 will be styled along the lines of the 200C EV Concept from last year's Detroit Auto Show, with a much-improved interior. Some of the other changes include installation of a standard new 2.4-liter four-cylinder engine or optional Pentastar 3.6-liter V-6, as well as adding a dual clutch transmission. The latest teaser shots of a preproduction model show details of the restyled front and rear of the core Sebring platform, with swept-back lights and a waterfall style grille. The rear lights are close to those of the concept, but the center section of the Sebring remains, including the rear roof pillar. The new 2011 Chrysler 200 will likely make its world debut at the 2010 Los Angeles Auto Show in November and have to soldier on until a replacement based on Fiat Group’s new Compact-Wide platform arrives around 2013. Importantly, the Dodge Avenger is expected to undergo a similar update. [Chrysler] link: http://www.motorauthority.com/blog/1044609_2011-chrysler-200-partially-revealed-in-new-teasers

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BMW, Mercedes forecast quarterly sales growth as China surges Automotive News Europe -- October 8, 2010 11:46 CET BERLIN (Bloomberg) -- BMW AG and Daimler AG's Mercedes-Benz, the two biggest makers of luxury vehicles, projected higher fourth-quarter sales on surging demand in China. BMW, the luxury leader, today forecast a “double-digit” percentage rise in fourth-quarter deliveries after overhauling the 5-series sedan and wagon. Mercedes said it was “very confident” about continuing growth in the final three months after a record September, when the manufacturer introduced updated CL- and R-class models. “We have exceptional new products and intend to maintain this upward trend,” Ian Robertson, sales chief at Munich-based BMW, said in a statement. “We expect to see robust growth in the double-digit percentage range.” Luxury-car sales are rebounding from the financial crisis, when wealthy consumers held back on flashy purchases. BMW and Stuttgart-based Mercedes are both targeting 10 percent sales increases this year. Volkswagen AG's Audi forecasts record sales in 2010, boosted by the new A1 subcompact. “This new volume model will give us extra momentum in Europe in the fourth quarter,” Peter Schwarzenbauer, Audi's head of sales, said in a statement yesterday, adding that A1 capacity was increased 20 percent for 2011. Audi, which aims to topple BMW has the luxury leader by 2015, increased deliveries by 16 percent in September to 102,650 vehicles. BMW sales last month rose 17 percent to 142,950 cars and SUVs, while Mercedes posted a 13 percent gain to 118,600 vehicles. The booming Chinese economy is fueling demand. Positive development “We expect sales to increase particularly rapidly in Asia, especially in China, and the other BRIC countries,” Joachim Schmidt, Mercedes' top salesman, said in a statement. “The positive development of the past several months makes us very confident for the fourth quarter in which we will continue to increase our sales.” Mercedes' sales surged 98 percent in China to 13,500 vehicles in September. BMW deliveries jumped 89 percent to 15,379, while Audi, the luxury leader in China, posted a 45 percent gain to 22,125 autos. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101008/ANE/310089978/1401#ixzz11mWKSSdz

BMW, Mercedes see strong September sales Associated Press Berlin — Daimler AG's Mercedes-Benz and BMW AG today reported annual sales growth of well over 10 percent, with both automakers' deliveries in China soaring. Mercedes-Benz sold 118,600 cars worldwide last month, an increase of 13 percent compared with a year earlier and the best September sales result in its history, Daimler said. Global sales at the BMW Group, which includes the core BMW brand, Mini and Rolls-Royce, were up 16.8 percent at 142,950. BMW said growth was driven by its large models, with the 5 series sedan showing the strongest gains. Mercedes-Benz's sales in China were up 98 percent to 13,500. Sales and marketing executive Joachim Schmidt said the company has now surpassed its original 2010 sales target of 100,000 cars there and has raised it to over 120,000. U.S. deliveries rose 16.9 percent to 19,900 and western European sales edged up 1.1 percent to 60,800. BMW said its group sales in China were up 89.1 percent year-on-year last month, with 15,379 vehicles sold. It reported healthy growth of 20.5 percent in the United States, where it delivered 23,112 vehicles. Separately, Daimler said global sales of its two-seat Smart car showed their first annual growth this year as a new model arrived. They were up 7.4 percent at 10,100. From The Detroit News: http://detnews.com/article/20101008/AUTO01/10080421/1148/auto01/BMW--Mercedes-see-strong-September-sales#ixzz11mG27ZY1

Sept. car sales down 10.4% in w. Europe; no recovery seen Paul McVeigh New-car sales in western Europe fell by 10.4 percent in September, according to J.D. Power Automotive Forecasting. The UK-based market researchers now expect a 6.4 percent decline to 12.8 million in the region's car sales this year, followed by a 1.8 percent drop to 12.57 million next year as government austerity measures dampen large consumer purchases. "The market continues to compare poorly year-on-year to a 2009 market that was inflated by government scrappage incentives," J.D. Power said in a statement. The company said an annualized selling rate of 12.4 million is weak by historical standards -- western Europe's car sales reached a high of 14.8 million in 2007 -- "but at least it is an improvement on the past few months." In Germany, sales fell by nearly 18 percent last month with the year-to-date market down by 27.5 percent. "The selling rate in Germany remains below 3 million units a year, highlighting that the German consumer remains cautious even though the economy has been performing well recently," J.D. Power said. The French market saw an 8 percent drop for September. France is the only major market in the region with a scrappage scheme in place, although it is being phased out. Car sales in Spain declined by 27 percent, hit by the ending of scrappage support and a VAT rise. The Italian market was down 19 percent while UK car sales fell 9 percent in an important month when sales are normally inflated by the introduction of new registration plates. Sales will continue to decline in the remaining months of 2010, J.D. Power said, adding "we do not expect that 2011 will beat the 2010 market." Uncertainty continues over the impact of the austerity measures now being adopted by European governments and because of continuing sovereign debt worries. "The risk of a double-dip recession certainly cannot be overlooked," the forecaster said. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101007/ANE/101009895/1193#ixzz11gSLmdVb

Toyota, Honda race Daimler to gain hybrid foothold in Europe Automotive News Europe -- October 6, 2010 10:45 CET (Bloomberg) -- Toyota Motor Corp. and Honda Motor Co. are rushing to exploit their advantage in hybrid systems to make inroads in Europe. Daimler AG and PSA/Peugeot-Citroen plan to stop them before they have the chance. Toyota began selling the U.K.-built Auris compact hybrid in Europe in July and will add the Lexus CT 200h, a hybrid hatchback designed for Europe, in 2011. Honda will roll out a Jazz hatchback hybrid in Europe next year, adding to three gas- electric models it already sells in the region. Asian carmakers aim to use their edge in hybrid vehicles to gain traction in Europe, where their market share is sinking, as stricter emissions standards make the technology more attractive. European carmakers, more reliant on diesel engines, are intensifying research to catch Toyota, whose 1997 gasoline-electric Prius was the world’s first hybrid. “There was a sea change with regard to European carmakers’ attitude toward hybrids two or three years ago,” said Stefan Bratzel, director of the Center of Automotive at the University of Applied Sciences in Bergisch-Gladbach, Germany. “It’s a long-distance race, but the technological advantage of the Japanese can be made up.” Hybrids are becoming an attractive alternative to diesel because new European standards taking force in 2014 require carmakers to cut nitrogen-oxide emissions for diesel engines by 56 percent to 80 milligrams (0.003 ounce) per kilometer (0.62 mile). Few diesel cars now comply. Rules for gas engines and hybrids won’t change with the tighter rules known as Euro 6. Diesel penalty Toyota and Honda are betting the legislation can help them succeed in Europe, a market where they have struggled to make gains. The combined eight-month share of Asian automakers in the region was 16.6 percent, while Volkswagen AG, the region’s largest carmaker, had a share of 21.3 percent. “One of the big things in Euro 6 is the relative harsh penalty on diesel,” said Colin Couchman, a London-based analyst at IHS Automotive. “That could get the Asians a foot in the door of the European market.” Toyota, which has been selling cars in the region since 1963, saw its eight-month European market share slip 0.6 percentage point to 4.4 percent, after it recalled about 1.3 million cars in Europe in January to fix sticky pedals linked to unintended acceleration. Honda’s share dropped to 1.3 percent from 1.7 percent, according to data from the European Automobile Manufacturers’ Association, or ACEA. “Europe is probably one of the most difficult markets to get into and be successful if you are non-European,” said Koji Endo, a Tokyo-based analyst at Advanced Research Japan. “Hybrids will help the Japanese carmakers make up some ground in a market where they continue to suffer.” Government incentives Incentives from governments may also help boost hybrid sales. France offers 2,000 euros ($2,741) toward the purchase of a hybrid, while the U.K. exempts gas-electric models from central London’s 8 pounds ($12.68) a day “congestion charge.” Toyota, based in Toyota City, Japan, sells the Auris hybrid for 22,950 euros in Europe, compared with 20,500 euros for the diesel engine version and 19,500 euros for the gasoline model. Implementation of Euro 6 regulations from September 2014 may help raise the share of hybrid and electric vehicles in Europe to 13 percent by 2020 from about 0.1 percent today, IHS estimates. Along with the Auris and Lexus CT 200h, Toyota will begin building a small hybrid in France from 2012. Honda’s Jazz will come on top of Insight, Civic and CR-Z gas-electric models. Diesel, which emits less carbon dioxide and offers better mileage than regular gasoline cars, accounts for about half of car sales in Europe, where gasoline prices are almost doubled by taxes, according to the Brussels-based ACEA. In Germany, Europe’s biggest market, customers pay 0.66 euro of tax per liter (0.25 gallon) of gasoline. Hybrid gain “Whether hybrids will become dominant remains to be seen, but hybrids will gain on diesel as the advantages are many,” Koei Saga, who manages Toyota’s hybrid technologies program, said at the Paris Motor Show last week. European carmakers are also stepping up their hybrid efforts. Daimler has been developing its own hybrid technology after a partnership with Bayerische Motoren Werke AG and General Motors Co. ended. The Mercedes-Benz maker sells hybrid versions of the ML sport-utility vehicle and S-Class sedan and plans to introduce a diesel-hybrid E-Class next year. Last week Peugeot showed the world’s first diesel-electric car in Paris. The Asians will need more than hybrids to dent the European market. Asian carmakers lag behind locally based rivals in styling and handling in a region with strong national brand loyalty, said Ashvin Chotai, a London-based analyst at Intelligence Automotive Asia Ltd., adding that Asian carmakers haven’t paid Europe much attention as they chased U.S. profits. Europe is a “a market we can’t run away from,” said Yoichi Hojo, Honda’s chief financial officer. “It’s painful, but we have to be there.” Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101006/ANE/101009917/1193#ixzz11c2OfqhD

German new car market to return to growth after sales decline slows in Sept. Automotive News Europe -- October 5, 2010 06:01 CET FRANKFURT (Reuters) -- After new car registrations in Germany declined at a significantly slower rate in September than in August, the VDA industry body said the German car market should return to growth towards the end of 2010. New car registrations fell 17.8 percent in September to 259,748 vehicles. Registrations fell 27 percent in August due to a high comparison with last year's month that was distorted by the country's scrapping scheme. "The trend change in new orders from domestic customers has finally been reached with September, when bookings rose over 10 percent. By the end of this year, we should be able to see rising registration figures in the domestic market," VDA President Matthias Wissmann said on Monday. Barclays Capital economist Julian Callow said demand for new cars was encouraging and may present upside risks to his estimate of 0.3 percent rise in German private consumption in the third quarter over the second quarter. "After France, Italy and Spain released (registration data) on Friday, one noticeable fact for Germany is that it is the only country among the Big Four to have experienced an increase in car sales in Q3 (2.88 million) compared to Q2 (2.78 million)," he wrote in a note on Monday. "This 3.4 percent quarter-on-quarter pick up in Q3 is the first positive quarterly growth reading since Q2 2009." Despite a 5 percent increase in exports, the very weak demand in Germany caused production last month to fall 3 percent to 534,700 vehicles. Used car sales rise According to official statistics from Germany's motor vehicle department, registrations of used cars sold gained 19 percent in September and 5.7 percent in the first nine months of the year. Strong demand for pre-owned cars often presage a return of pricing power in the new car market as well as stronger earnings at manufacturers' captive financial services units that rely heavily on resilient residual values for cars coming off lease. Germany's 5 billion euro pot of tax money to subsidize new car sales was exhausted at the beginning of September 2009, ushering in months of very weak demand as many purchases expected for this year were pulled forward to take advantage of the scheme. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101005/ANE/310049948/1193#ixzz11UuJbYOD

TATA MOTORS SELLS $750M IN STOCK TO REDUCE DEBT By Mark Kleis The ambitious Indian automaker, Tata Motors, has announced it will sell shares of stock worth $750 million - the proceeds from which will be utilized to help pay down some of the $4.5 billion in debt the automaker owns. Although $750 million may be a far cry from the tens of billions being discussed for General Motors' upcoming IPO, this sale, for starters, is not an IPO, only an isolated release of shares. Secondly, as Bloomberg points out, it is a significant amount because the automaker has originally announced intentions to sell $525 million worth, but higher than expected demand drove Tata to increase the bid. The strong demand for Tata shares can only be taken as a positive sign, as investors have voiced increased faith in the automaker's ability to turn a profit from the Jaguar Land Rover firms, something Ford struggled to do. The sale of the stock, which began October 1, has already prompted some analysts to note the noteworthy improvement in the balance sheet, including Mahantesh Sabarad of Fortune Equity Brokers of India, "Their balance sheet is much healthier today...Tata may not need to sell any more shares after this issue as cash flows are good enough to generate funds for debt repayment and capital expenditure." Original plans called for the sale of $325 million shares of A rating, which come with differential voting rights, but Bloomberg points out that due to increased demand Tata ended up listing $550 million of A-shares, along with $200 million worth of common shares. link: http://www.leftlanenews.com/tata-motors-sells-750m-in-stock-to-reduce-debt.html

BMW, Mercedes, Audi weigh tiniest models for U.S. 08:31 AM CAPTIONBy Virginia Mayo, AP Germany's famous luxury automakers are thinking the unthinkable -- bringing their smallest cars to the U.S. Audi, for instance, is weighing whether to bring its next-generation A1 compact car to America. BMW and Mercedes-Benz are also taking a close look at the market. German automakers have always hesitated in the past out of fear that their smallest cars would dilute their image as makers of the wor'd finest cars. But the Obama's new fuel economy standards have them over a barrel. They need smaller cars to offset the bigger, less fuel-effienct ones they plan to sell. "Consumers are asking for small cars, and there is the likelihood that the second generation of the A1 will come to the U.S.," Peter Schwarzenbauer, Audi AG's board member for sales and marketing, told Automotive News at the Paris auto show. A final decision won't be made about the Audi A1 for 18 months, Schwarzenbauer said, addig that likelihood is "quite high" that Audi would import the car. Meanwhile, BMW and Mercedes-Benz are playing the same game, weighing the same decision. BMW is thinking about importing small front-wheel-drive vehicles. will bring a new front-wheel-drive family of cars in a class known as UKL, a German abbreviation for lower-compact-class cars. "It will be a relatively big segment because we have several body styles," Ian Robertson, BMW AG board member for sales and marketing, told Automotive News last week at the Paris auto show. European media reports say BMW is planning at least three variants. TAGS:AUDI BMW

http://www.youtube.com/watch?v=xmy9XeyPU3g

Euro market corners top vehicles Some of Detroit's most exciting models aren't offered to U.S. buyers Paris -- The first lesson I learned at the Paris Motor Show was that everything tastes better with a little more butter. Second, European carmakers have been holding out on us Americans, keeping some of their best vehicles on their side of the pond -- and giving us a bunch of leftovers. Even our own carmakers have been sending some of their coolest cars and crossovers abroad, allowing Europeans to fly down the autobahn in fantastic five-doors but never giving us the same Interstate opportunity. Oh, and I'm not including all of the diesel powertrains available in Europe but not in America. Or all those wagons Europeans drive with manual transmissions. Carmakers can give you myriad reasons why these and the Paris vehicles won't come to America. Some are cultural -- Americans don't like wagons, they'll say, or market studies show there's no interest in a particular model or style. Some European carmakers don't sell in the United States. So the only way you're going to get to drive some of the cool vehicles on display at the Paris Motor Show is with a passport and an international driver's license. It doesn't seem fair. Only in Europe Take the Chevrolet Cruze hatchback, which debuted Thursday. It's up on a stand right now and its sloping roof and big wheels are inviting everyone to take pictures. Americans will never get to drive the Cruze hatchback in the States. Chevy has no plans to bring it to America. GM isn't the only carmaker keeping its bold and beautiful vehicles overseas. French carmaker Citroen has a number of sedans that would look just as beautiful in Peoria as in Paris. The Citroen DS4 is one of those classic-looking sedans with crisp lines and a compact stance. The little 1.6-liter turbocharged four-cylinder engine provides 200 horsepower and the six-speed automatic transmission. It has paddle shifters (giving it that European feel) so it could easily be handled by stick-phobic Americans. And, of course, the Germans are holding out too. The Audi A1, which goes on sale early next year in Europe, will never make it the States. It should. It demonstrates that luxury and performance do not need to be tied to size. Bigger is not always better. Stamp its passport, approve the visa and let's get this car across the border. This new immigration policy should also include the Peugeot RCZ on the approved list. This little two-seater comes with a turbocharged diesel or gas engine and looks like it will fly. Two-seater hardtops may not make it into many American garages but more should. This would be the way to commute in style. Typically, I wouldn't advocate a concept vehicle as something that should come from Europe to America, but the Opel Astra GTC Paris Concept is about as thinly veiled a concept vehicle as you're likely to see. Opel won't confirm this car is going to get made, but I will come out and say Opel will build this. Most concepts don't come with factory-ready windshield wipers like this one. Buckets of bolts While these vehicles would do well in America, I don't think everything European is better. Europe has no pickups per se, and many popular vehicles in Europe are absolutely awful, abysmal buckets of bolts. Please, leave them there. Take the Ligier Microcar. It does not matter how pretty a model stands in front of it, this car wouldn't even serve well as a bread box. The interior is cheap and the car looks like it's powered by squirrels. In fairness, I have never test-driven the Ligier Microcar, but, then again, I wouldn't want to. And then there's the Renault Wind. This embarrassing vehicle uses a cloth strap as an interior door handle. It's just looped and stuck on the door. This little open-air two-seater -- one of the easiest designs to make look fun -- looks awful. I'm sure it's great for cruising the French countryside, and that's where it should stay. Then there's the Lumenco SMERA, a one-seater that looks like a mobile coffin. Something this small would most likely end up on the side of the road after a few bicycles bumped it there. Coming attractions Carmakers, of course, have built some vehicles for Europe that will soon come to America. The Ford Grand C-Max, in particular, will help build the mini-minivan segment begun by the Mazda5. The Fiat 500 will arrive soon and so will the Chevy Spark, both European minicars that could do well in American cities. And on the flip side, Jeep is bringing all of its wares to Europe, injecting a little bad behavior into our sometimes staid European friends. But, the Jeeps, built in America, will include diesel engines, which, of course, we Americans will never get. From The Detroit News: http://www.detnews.com/article/20101002/OPINION03/10020326/1148/auto01/Euro-market-corners-top-vehicles#ixzz11P1EyDiF

Europe's carmakers grapple with low productivity Ola Kinnander and Tim Higgins / Bloomberg News General Motors Co.'s 1,300 workers in Antwerp, Belgium, are fighting for their jobs, hoping for a white knight to rescue the factory from closure. "We're trying to find an investor by the end of this month," said Luc van Grinsven, a union official at the 86-year-old plant, which makes an Astra model for GM's Opel unit. "If we don't, the factory will close at the end of the year." Antwerp is an anomaly. Not a single European automobile plant closed during the recession, while 18 assembly factories have been shuttered in the U.S. since 2008. European governments prevented the biggest automakers from firing workers and used subsidies to prop up sales. Now that most of the incentives have expired, executives must find ways to cope with a slump in demand. "In Europe, the relationship between governments and major manufacturers goes hand in hand," said Francisco Carvalho, a London-based analyst at IHS Automotive. "Closing plants will upset the governments. The U.S. now has much more sane utilization rates than Europe in the medium term." European capacity use will probably be surpassed by the U.S. this year for the first time since 2006, IHS Automotive estimates. North American plants, on average, will use 72 percent of capacity, up from 51 percent in 2009. The average for Europe may climb to 68 percent, boosted by demand from China. An automaker typically needs at least 80 percent utilization for a plant to be profitable, the researcher says. With GM and Chrysler Group LLC leading the U.S. plant closures as part of their bankruptcy reorganizations last year, improved usage is helping them post profits or pare losses. GM, the biggest U.S. carmaker, earned $2.4 billion in the first half. Chrysler, run by Fiat, reduced its losses to $369 million. "Their cost base, relative to western Europeans and a lot of companies around the world, is going to be lower and they should be very cost competitive," said Ron Harbour, a partner at New York-based consultant Oliver Wyman. "If they can do everything they need to do on the product side, they could be dramatically more competitive than western European plants." At 62.8 percent, Renault SA, the maker of the Clio compact and Megane family car, has the worst capacity use rate among Europe's volume carmakers, said Carvalho. Fiat SpA, Italy's largest carmaker, is at 64.8 percent and PSA Peugeot Citroen, France's biggest, is at 67.4 percent. European capacity this year, including Russia, where carmakers have built plants recently, is at about 27.5 million cars, IHS' Carvalho said. By contrast, Ford Motor Co. said last month that Europe's new car sales may fall to as low as 14.5 million vehicles this year from 15.9 million in 2009. Next year, Fiat will close its Termini Imerese plant in Sicily, which makes the Lancia Ypsilon. CEO Sergio Marchionne is also prepared to shift production of its best-selling Panda model from Poland to the under-utilized Pomigliano plant in Italy and invest in the factory if unions agree to add shifts and work a six-day week. Pomigliano employs 5,000 workers and produced 35,000 cars last year. Melfi, Fiat's second-biggest Italian plant and the one with the best capacity utilization, employs 5,280 workers and built 280,000 Grande Puntos in 2009. That's seven cars per employee at Pomigliano, versus 53 at Melfi. "It's a European issue," Marchionne told reporters in Rome this week. "This is why we called for a resolution for the government and unions to find a solution. This country needs to move on." Renault CEO Carlos Ghosn shed workers during the recession at one of 14 French production sites, in Sandouville, where 1,300 people left in 2008 because of sluggish sales of the Laguna model made at that factory. While politics may keep automakers in Europe from closing plants as easily as in the U.S., automakers have still reduced some European capacity in recent years, said Arthur Maher, an analyst with J.D. Power & Associates. From The Detroit News: http://www.detnews.com/article/20101003/AUTO01/10030301/1148/auto01/Europe-s-carmakers-grapple-with-low-productivity#ixzz11P0mwwRW