Group of car manufacturers sign Letter of Understanding on fuel cell electric vehicles

Fuel cell vehicles or electric vehicles – they both have one thing in common. An electric motor or multiple motors are at the core of the propulsion and the only difference is how the motors get their power.

At the beginning we could see different manufacturers head down different paths with their alternative fuel cars but today there has been an interesting development – a joint announcement from a few carmakers backing fuel cell electric vehicles.

A group of companies comprising of Daimler, Ford, GM/Opel, Renault, Nissan, Hyundai-Kia, Honda and Toyota have announced they’ve signed a Letter of Understanding regarding the development and market introduction of electric vehicles with fuel cells. These car companies strongly anticipate that from 2015 onwards, a significant amount of electric vehicles with fuel cells can be commercialised – a few hundred thousand units is the aim.

These manufacturers jointly call for countries to setup hydrogen infrastructures and in a way what I think they are doing is trying to convince the people responsible for the refueling infrastructure that once the network is set up, there will be cars to use them and make them viable. Yes, the idea of refueling your car from a wall socket is nice but currently it takes too long, even with a wall charger.

Refueling your car with hydrogen can potentially be as quick as refueling the various liquids we currently pump into our cars, but as it is refueling time would depend on how the hydrogen is stored on-board the car, and even that varies from manufacturer to manufacturer and even car to car.

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European and Asian Automakers to Build More Cars than Detroit's Big Three in N. America by 2012

According to a new study from financial advisory firm Grant Thornton LLP, European and Asian automakers will churn out more cars in North America than Detroit's 'Big Three' by 2012. The study expects that after the completion of the restructuring of the domestic auto industry, the combined capacity of General Motors, Chrysler Group LLC and Ford in North America will fall by more than 4 million units or a 35 percent reduction compared to 2008, for a total of 7.5 million units in 2012.

At the same time, all other foreign automakers combined are expected to increase their North American production by around 1.5 million a year or 20 percent, to more than 8 million units.

"A new order is emerging where the Detroit companies may no longer be the volume leaders in their home market," said Grant Thornton LLP Principal Kimberly Rodriguez, co-leader of the firm's global automotive practice.

Grant Thornton LLP reports that Volkswagen and BMW will nearly double their combined production, increasing their output capability to around 1 million units a year while Toyota, Honda, Nissan and Hyundai are projected to expand their combined production by 20 percent, or nearly 1 million units.

The study finds that the dramatic shift in production will have a large impact on North American parts suppliers that will need to secure more business from European and Asian makers.

"Suppliers largely dependent on Detroit OEMs will have to present a new value equation to potential customers from Europe and Asia if they want to participate in the accelerated shift that is coming," said Kimberly Rodriguez.

[Source: Grant Thornton LLP]

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REPORT: GM pursuing Chrysler for repayment of Two-Mode Hybrid development

Our friends at PickupTrucks.com are reporting that General Motors has filed documents in court in an attempt to get "New" Chrysler to honor its full pre-bankruptcy debt of $531,275 (of which Chrysler has so far only agreed to pay back about a third) for work on the sophisticated Two-Mode hybrid powertrain that was jointly developed by the two American automakers along with Daimler and BMW.

Chrysler and General Motors have both filed for Chapter 11 protection from creditors, which allows the automakers to renegotiate – or in many cases completely cancel – past contracts that are no longer desirable. It seems that Chrysler's contract with The General, which is supplying the hybrid transmissions to Chrysler, has yet to be picked up by New Chrysler.

This case is a bit more intriguing than most – such as Chrysler's canceled contract with Cummins for light-duty diesel engines for the Ram pickup – as it pits General Motors across the courtroom and on the other side of bankruptcy negotiations. We suspect that New Chrysler may be keen to pick up its old tab since the automaker is still planning to use the Two-Mode Hybrid technology for future vehicles, starting with the 2010 Dodge Ram, though possibly with more favorable terms.

[Source: PickupTrucks.com]

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VW to Partially Idle Mexican Plant from end of June until early August

The global slowdown in car sales is forcing Volkswagen to shut down parts of its Puebla assembly plant in Mexico beginning from next week and until early August. Union spokesman Arturo Monter was quoted by Reuters as saying that the temporary idling of parts of the factory would help preserve jobs and aid the German firm in making adjustments to the assembly lines.

Currently Volkswagen's only factory in North America, the Puebla plant produces cars like the New Beetle, Bora and Bora Variant models, with most models being exported to the U.S, Canada and Europe.

[Via: Reuters]

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Honda's Insight Sales May Fall 30 Percent Short of its 2009 U.S. Sales Target

Blame the ongoing recession along with the fairly low gasoline prices at the pumps and strong competition from Toyota's revamped Prius hybrid, but Honda's execs are quite pessimistic about the prospects of the Insight meeting its 2009 U.S. market sales target of around 90,000 units. "Given some dramatic change in things, I don't think we'll get to 90,000. At 50,000 to 60,000, we will be just fine," American Honda Motor Executive Vice President John Mendel told Bloomberg news.

For its first year on the market, Honda has projected worldwide sales of around 200,000 units for its new dedicated hybrid model, with nearly half of those sales coming from the North American market. Despite the gloomy outlook in the U.S., Reuters reported that a spokesman in Tokyo said there has been no change in Honda's sales forecast for 2009.

In Japan, the Insight climbed to the top spot of the sales chart in April with 10,481 units but fell to third place in May with 8,859 cars after the domestic launch of the new Toyota Prius that finished first with 10,915 units registered.

[Via: Reuters]

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Lexus Official Says IS Coupe worth Studying

When company execs are around journalists, they usually sound more like politicians than anything else, meaning that you rarely get a straightforward answer to a question especially if it involves future plans. This seems to be the case with the IS Coupe story. When asked by the folks over at Jalopnik if there was a possibility of an IS Coupe version in the future, Mark Templin, general manager of Toyota's Lexus division gave the following answer: "Obviously, we're making no announcements today, but it's certainly something we should study carefully."

That isn't a yes, it isn't a no, it's something that can be interpreted in more ways that we have time to address. And while we leave Templin to "think about it", let us ask you if you believe that Lexus should develop a coupe variant of the IS based on the Convertible. As always, leave your answers in the comment section below.

[Via: Jalopnik]

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Mazda Says it Will Add Gasoline-Electric Hybrid Drivetrains to Lineup

As the saying goes, if you can't beat them, you might as well join them. Following Mazda CEO Takashi Yamanouchi's 180 degree turn on the embracement of hybrid technologies that came at the New York Auto Show in April, the company's Executive Vice President Philip Spender announced new details on Mazda's future hybrid plans during the Japanese launch event of the 2010 Axela (Mazda3).

"We've started to talk a lot more about it lately, in part because everybody else is," Spender said. "Mazda is responding partly to new government incentives and emissions rules," he added.

Spender revealed that Mazda will not develop a standalone hybrid model but instead the firm will offer gasoline-electric drivetrains as an option on existing models in its portfolio with the first cars expected in the "20-teens".

The Mazda executive did not disclose details on which models would get a hybrid drivetrain option, but we gather that the Mazda3 and Mazda6 as well as the firm's SUV/Crossover models will be among the first in line. And how about Mazda's sportscars like the MX-5 / Miata roadster? Your guess is as good as ours, but feel free to state your thoughts in the comment section below.

[Via: Autonews (Sub. Req.)]

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REPORT: Chrysler pursuing clause to award Fiat $35 million if deal falls apart

Think Fiat's getting a pretty sweet deal with Chrysler? The Italian automaker is, after all, gaining a 20% stake in the troubled American automaker, plus local manufacturing capacity and access to its dealer networks, all without paying a thin dime. Not a bad deal, but Chrysler's hard at work trying to make it sweeter. Emerging reports suggest that if the deal between Fiat and Chrysler were to fall apart, Chrysler would be obligated to pay Fiat $35 million in severance fees.

Chrysler is currently pursuing the clause in the courts administering its bankruptcy protection. The reasoning is that Fiat has put in the time and money into pursuing the partnership that would allow Chrysler to continue operating, and if the courts – or anyone else, for that matter – were to terminate the arrangement, Fiat would deserve compensation. A similar clause worked out well for Fiat after its partnership with General Motors was terminated. The tables now turned, Fiat has certainly come a long way since then.

[Source: The Detroit News | Image: Chris McGrath/Getty]

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REPORT: Peugeot lodges protest against the Audi R15 TDI at Le Mans

The drama has already begun at the 24 Hours of Le Mans, albeit not the on-track kind. Peugeot has reportedly lodged a protest against Audi's R15 racer, charging that elements of the car's front wing are illegal. Peugeot asserts that the flap-like sections at the rear of the front wing, where "Michelin" appears in the above pic, are bodywork elements that are not allowed by the technical regulations.

Article 3.6.2 of the ACO's technical regulations allows two aerodynamic elements at the front of the car, but beyond that, "Any bodywork element the function of which is only to generate down force" is prohibited. Said Aston Martin's race head after the car was questioned at March's 12 Hours of Sebring, the components act "exactly like a flap on a wing, with the splitter arrangement acting as the main plane."

Peugeot raised its concerns earlier this year, but the Audi has been scrutinized every race since. Peugeot says it doesn't want to hurt the competition, it simply wants the rules clarified. However, if the Le Mans stewards rule against the French team, it says it will take its case all the way to the FIA. And if that happens, Sunday's result will be unofficial until the high racing court decides. Thanks for the tip, mforty!

[Via: Autoblog ,Source: Motorsport.com]

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REPORT: Lamborghini sees no recovery until 2011

Lamborghini Murcielago LP670-4 SuperVeloce – Click above for high-res image gallery

After several years of record growth, Lamborghini, like most automakers, is struggling in a tough economy. Sales are down 30% so far in 2009, and the Raging Bull even laid off factory workers for seven weeks in an effort to keep down inventories. Chief Executive Stephan Winkelmann told Reuters that he expects the sales slump to continue through 2010, saying that the "crisis is very deep."

Winkelmann points out that sales are down over 40% in the US (Lamborghini's top market), and the company's waiting list has dropped from one year to six months. Lamborghini's struggles closely mirror problems with the economy at large; areas that have been hit by investment banking and real estate woes aren't in the market for Italian supercars.

Regardless of the dim forecast for the next 18 months, Winkelmann is still bullish when it comes to profits. The company cleared 60 million euros in 2008 ($84 million in US funds) and the Italian automaker expects to remain in the black even if sales take a 40% plunge. And the world renown luxury exotic automaker will have to stay solvent while vastly improving its carbon footprint. Lamborghini plans to reduce CO2 emissions coming from its vehicles by 35% in six years.
[Via: Autoblog, Source: Reuters]

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REPORT: Mitsubishi launches production of the iMiEV in Japan

Mitsubishi has launched series production of its iMiEV electric car at its Okayama, Japan factory. That makes the tri-diamond brand the first major automaker to kick off full scale production of a new EV, though it will be followed by many other automakers over the next two years. The automaker plans to build about 2,000 units through the remainder of this fiscal year and then crank that up to 5,000 next year. The first cars are going to corporate fleet customers but retail sales are expected to start later in the year.

The iMiEV has a range of about 100 miles from its lithium ion battery pack. The batteries are the result of a joint venture between Mitsubishi and GS Yuasa. Factoring government incentives available in Japan, the $45,660 iMiEV will end up costing about $31,300 at current exchange rates, which is a bit higher than the $27,000 price previously rumored. No decision has been made yet on when the car will be offered in the U.S. market, but we do know it will make its way here sometime. First, Mitsubishi needs to develop a production left-hand drive version.


[Source: Nikkei]

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REPORT: Chevrolet Aveo replacement postponed until 2011

According to Reuters, Chevrolet's Aveo replacement has been postponed until January 2011 due to the well-publicized financial troubles at General Motors and its Korean subsidiary, Daewoo. Previously, the Aveo's replacement, codenamed T300, had been expected to bow in April of 2010.

Over the first four months of 2009, Daewoo has reported a whopping 44.5-percent decline in total vehicle sales, which comes as particularly bad news for The General since the Korean automaker accounts for a quarter of GM's total production. Much of that slumping production is being lost to rivals like Hyundai and Kia in oh-so-important emerging market of China, where Daewoo's sales dropped by 3.2-percent even in the face of an expanding market.

In effort to keep the doors open in the face of such heavy losses, GM Daewoo is reportedly seeking additional loans from the Korea Development Bank after running through all $2 billion of its available credit lines. We hope they work it out... suffice it to say that the Aveo's replacement can't come soon enough.

[Source: Reuters]

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REPORT: NASCAR seen fretting over ratings drop

According to Nielsen, ratings for NASCAR on Fox are down by an alarming 11.5% so far this year, and while we're sure that many NASCAR haters will suggest that it's just not that interesting watching non-stock "stock cars" turning left over and over again as they circle oval tracks, race organizers and TV ratings researchers believe there's much more to the decline in viewership than that.

Certainly, the sorry state of affairs surrounding the world's sagging economy doesn't help matters any, and neither did the rain that forced an early end to the Daytona 500, the sport's pivotal first race of the season. Paul Brooks, president of NASCAR Media Group, also points a finger in the direction of Dale Earnhardt Jr, who's second season as part of Hendrick Motorsports isn't exactly going as hoped.

Regardless of its downward ratings trend in '09, it seems most experts on the subject predict the NASCAR brand will pull through over the long haul, although it will be interesting to see if/how the auto industry crisis affects the cash-intensive motorsports series. In the meantime, NASCAR and Fox are reportedly "looking at every angle" to boost viewership in the short term.

[Source: Sports Business Journal | Image: Roger Smith]

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REPORT: Toyota already has 75,000 orders for 2010 Prius

Toyota finally has some real hybrid competition with the new Honda Insight, but 2010 Prius orders show that the darling of the green movement is more than game in the battle for hybrid supremacy. The Japanese Nikkei Business Daily reports that Toyota already has 75,000 orders in the books; a number far greater than the 40,000 units the Japanese automaker expected. Toyota has already lowered the price of the Prius to combat the Insight's $19,180 price of entry, and early Insight sales figures show that is likely a wise move. Honda's newest hybrid sold 10,481 units in April, making it the first hybrid to ever top the Japanese sales chart.

The Prius' pre-sale success is a welcome bit of good news for Toyota. The automaker lost $7.7 billion last quarter, and the perennially successful operation expects to lose $8.6 billion in the fiscal year ending March 31, 2010. Toyota is also replacing 40% of its executive ranks as company scion Akio Toyoda takes over the company next month. The Prius goes on sale in Japan on May 18.




[Source: Reuters]

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