Autoblog

Click above for a high-res gallery of the Infiniti G37 coupe.

Carlos Ghosn assembled the press this morning in Japan to announce Nissan/Infiniti's financial results for 2007, and despite sales in Japan dropping by 2.5-percent last year, global sales are up by 8.2-percent, with a 3.0-percent increase in U.S. sales and a massive 17.9-percent bump in Europe. All told, Nissan took in $94.62 billion last year, with a $6.91 billion operating profit. Nissan attributes its successes abroad to the release of 11 new models worldwide, including the Altima Coupe, GT-R, Murano, Infiniti EX CUV and G37 coupe.

The automaker has its sights set firmly on the future, with a five-year plan that focuses on three key commitments: quality leadership, an industry leading zero-emissions vehicle program and a five-percent growth in revenue between 2008 and 2012. The program is called Nissan "GT" 2012, with the "G" standing for "growth" and the "T" for "trust." To achieve those goals, Nissan will be expanding with Infiniti's launch in Europe, along with pushing further into developing markets like India, the Middle East, Brazil, China and Russia. Leading the charge will be 60 all-new models released in the next five years and the debut of 15 new technologies each year from 2009 onwards.

While we're already familiar with most of the vehicles Nissan and Infiniti intends to release in the coming year (Qashqai+2, new Z), two models were officially confirmed: an Infiniti G37 convertible (rumored to sport a retractable hard top) and a "mini SUV." While there's been speculation that a G37 cabrio was on the way, the small 'ute is likely to the rumored 1-series competitor we've reported on before.

Make the jump for Nissan's press release.

There's no indication that a leopard has ever changed its spots, so while Kirk Kerkorian and his Tracinda Corporation are making noises like they'll strive to be hands-off Ford shareholders, we'd expect some eventual attempts at steering the automaker from the board. As part of an offer to purchase more shares, Tracinda Corp. stated to the Securities and Exchange Commission that it has no intent to gobble up or influence Ford. The Las Vegas-based investment firm went on to say that it will continue to monitor the performance of its holding, and may suggest business moves to the automaker.

Jerry York apparently took this to heart when he started mouthing off about what Ford should do with Volvo and Mercury, but that statement has since been rescinded as "shooting from the hip." It would not be a surprise, given the past attempts of Kerkorian and his toadies to direct the course of General Motors and Chrysler, that he once again start to make aggressive attempts at directing the moves of Ford. Tracinda is Ford's largest shareholder, though the hierarchy of Ford's board gives the family a lot of voting muscle. Kerkorian's most recent offer to Ford is for an additional 20 million shares at $8.50 per share, as well as the future prospect of a cash infusion to offer the turnaround plan further liquidity and thus, flexibility. Ford is mulling Kerkorian's bid, but the turnaround plan was put together without Tracinda's money, and can proceed without it, though more money on hand would allow Ford to accelerate its plans. Everyone's playing it cool, though meetings between Bill Ford Jr., Alan Mulally, and Kerkorian are ongoing, and the board of directors has promised a response to Kerkorian by May 22nd.

[Source: Detroit News, Photo: Detroit News]

General Motors has been hit so hard by the ongoing American Axle strikes that it's stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes "the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future." Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, "We're happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle's future." For GM's sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

[Source: The Detroit Free Press]

The current economic environment in the United States is hurting all auto makers these days, even mighty Toyota, which was once considered immune to so-called market realities. Though its overall performance last year would be considered a stellar achievement for any other automaker, Toyota's 28% profit plunge in the fourth quarter of 2007 points to an expected 27% drop in annual profits in 2008. If Toyota's revised forecast proves accurate, 2008 would break a nine-year stretch of profit growth. In addition to the slowing U.S. market, Toyota also cites high material prices, the worldwide credit crunch and a strong yen as contributing factors in its mild downturn.

Toyota's expected profit drop is certainly newsworthy, but we just have to wonder how the money-losing American car companies will cope in the U.S. market with the same issues. While sales of cars are gaining strength, the SUV and truck markets are sinking with what could be Titanic-like implications for the truck-heavy lines from Ford, Chrysler and GM.

[Source: Toyota]

If you told us a year ago that Fiat was going to sign a deal with the government of Serbia, we'd have laughed. But that was before the country announced that it was accepting tenders for investment in the state-owned automaker Zastava, makers of the famous Yugo (aka Skala 55). The process started back in December when the Serbian government made the announcement, sparking interest from various automakers. But even as recent as last week, the Fiat stance was that it was still considering the proposition. Well, it appears the Italian auto giant has done thinking, and has signed a memorandum of understanding with Serbia to establish a joint venture that involves Fiat investing a staggering 700 million euros (!) into Zastava's manufacturing facilities in exchange for a majority stake in the company, known in full as Zavodi Crvena Zastava. The Serbian government, meanwhile, will contribute some 200 million euros through tax incentives and similar measures.

Fiat has revealed that it will use the Zastava plant to produce the upcoming Topolino microcar. The vehicle will be based on the same platform as the 500 and Panda, but even smaller and positioned below either model, and share the same name as the concept car that previewed the new 500 and originally used on the 1936 runabout pictured above. According to reports, the new Topolino will be a compact two-seater measuring just 3150mm (124 inches) in length, slightly longer than the Smart ForTwo at 2692mm (106 inches). A four-seater version is expected to follow, in addition to an upscale version for the Lancia division.

[Source: Automotive News Europe – sub. req'd]

Click for more images of the Pininfarina Sintesi

Pininfarina has confirmed the three new shareholders who will take stake in the company as part of its 100 million euro capital increase. As we reported previously, Piero Ferrari, son of the late Enzo Ferrari and vice-chairman of the eponymous Maranello sportscar firm, and Alberto Bombassei, chairman of the Brembo brakes company, will take shares, in addition to the Marsiaj family at the helm of Italian seatbelt manufacturer Sabelt.

The increased capital will finance the development and production of the upscale electric minicar Pininfarina will produce together with French industrial group Bollore and Indian automaker Tata. The car is expected to begin production in 2010 with 2000 units, ramping up to a full capacity of 15,000 units by 2012 with sales in the United States, Europe and Japan. Although the size of each new shareholder's stake has yet to be confirmed, the shares will come out of the Pininfarina family's 55% ownership.

[Source: Automotive News Europe - Sub. Req.]

GM President Frtiz Henderson came squeaky clean about the state of GM's brand portfolio, hurdles and losses. On the issue of too many brands, he admitted that the reason GM still has so many is that it is simply too expensive to kill any one of them. GM spent almost a billion large putting Oldsmobile to sleep, and with The General coming off a $3.25 billion Q1 loss, every half penny counts. In the mean time, GM will have to make do with its four new brand czars.

Henderson and CFO Rick Young also admitted that sales projections could be described as "rosy," the word "Delphi" is beginning to rhyme with "albatross," and that the intergalactic rise in gas prices has changed consumer buying habits "faster than we thought."

Fritz summarized the situation with: "We have to adjust. We have to learn how to make more money in cars and crossovers and tighten our belts with regard to cost expenditures." That's not the writing on the wall, that is the wall itself. Thanks for the tip, throwback!

[Source: CNN Money]

Daimler may have divested 80.1% of its ownership in Chrysler, but the German automaker is still feeling pain from the Pentastar. The value of Daimler's portion of Chrysler has dropped from $2.18 billion to $852 million not even a year after the two parted ways. The loss of nearly $1.4 billion in value is a fair chunk of change, even for the mighty Daimler, but the news is not all bad for company shareholders. If Daimler hadn't sold Chrysler to the private equity firm Cerberus as fast as it did, the automaker's stock would likely be in much worse shape.

Since the privately owned Chrysler, LLC doesn't have to report earnings, it claims that its fiscal standing is all peaches and cream. According to Chrysler, the company has had positive earnings since it was bought out by Cerberus last year. The official line that explains the discrepancy with Daimler's reporting is that U.S. accounting rules are much more favorable than those overseas. Damn accountants.

[Source: Automotive News - subs. req'd]

General Motors announced today that it recorded a net loss of $3.25 billion during the first quarter of 2008, but it looks worse than it is thanks to a $1.45 billion hit from its 49% stake in floundering GMAC. The two-month long American Axle strike also cost GM about $800 million, while further support of bankrupt supplier Delphi's restructuring took $731 million from the corporate coffers. These "headline numbers" don't look good, but GM's performance in the area of actually selling cars wasn't as bad as analysts expected, and the automaker's stock actually rose after these earnings were announced.

GM continued to do well in the business of selling cars in regions like Europe, Asia and Latin America, but the North American market continued to underperform. In North America, GM lost $812 million on revenue from sales of $24.5 billion, compared to a loss of $208 million last year on $28.1 billion of revenue. Aside from selling fewer vehicles, GM also lost 100,000 units of production thanks to the American Axle strike, which helped its market share slip from 22.5% last year to 21.7% in Q1 2008. Clearly the news isn't as good as it was, say, for Ford, but GM is virtually the only automaker being affected by the American Axle strike, and has a number of labor- and supplier-related issues to sort out before it can begin building a steady stream of its most popular models in North America.

[Source: GM, Automotive News - sub. req'd]

There's breaking news and then there's braking news. In a development of the latter, Brembo is considering investing in Pininfarina. The news is part of a larger development that has Indian automaker Tata and sportscar scion Piero Ferrari taking stake in the design house, and could involve several other investors including Vincent Bollore to raise 100 million euros in capital for an electric car venture between the French investor and the Italian styling firm.

Currently, the Pininfarina family holds 55-percent of the eponymous company, but is willing to share its shares with additional investors in order to keep the company in the black and moving forward.

[Source: Automotive News Europe – Sub. Req.]