Autoblog

The Rabbit is currently the most fuel-efficient gasoline-powered vehicle in Volkswagen's U.S. fleet, getting around 26 mpg on the EPA's combined city/highway cycle. But V-Dub wants something better for the U.S. market. Speaking with Bloomberg, VW CEO, Stefan Jacoby revealed that the automaker is considering bringing a subcompact vehicle, similar to the Polo, to the U.S.

With the Toyota Yaris rated at 32 mpg and the Honda Fit coming in at 31 mpg (combined city/highway), Volkswagen is hoping to meet or exceed the competition. While it's unlikely we'll see the current Polo on U.S. shores anytime soon, it's expected that the next generation will be available in the States in 2010 when the new Jetta is released, followed by a new midsize sedan that will replace the Passat.

The additions and revisions to VW's product line is an effort by the automaker to boost U.S. sales to 800,000 units by 2018, nearly tripling the 230,571 vehicles it sold in 2007. VW is also looking to build a new engine plant in Mexico, along with its recently announced Tennessee plant.

[Source: Bloomberg]

Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.

The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.

Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.

[Source: Automotive News – Sub. Req.]

Volkswagen's management will meet tomorrow to refine plans to expand automobile production into the United States. While a final recommendation isn't expected until July 15, Alabama appears to be the front runner (over second-choice Tennessee) to receive the $788 million plant that will initially build the Volkswagen Jetta sedan and an all-new Passat-sized sedan. VW is also rumored to be considering production of a long-wheelbase version of the Volkswagen Tiguan and the Audi's Q5 on our shores. Volkswagen isn't the only German automaker to announce manufacturing expansion in the United States this year. The falling value of the dollar has also encouraged BMW to increase U.S. production in Spartanburg, South Carolina.

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

Click above for a high-res gallery of Fiat's Alfa Romeo 8C Competizione

As the dollar weakens, European manufacturers continue to scramble for manufacturing opportunities offshore to salvage profits. Fiat is the latest to jump into the fray. Company sources are saying the Italian automaker is currently considering Mexico as a production site -- with their eyes on an existing plant that could be tooled up for 150,000 cars a year. With their Alfa Romeo brand launching in the United States next year, and Fiat sales up significantly in South America, a plant in centrally-located Mexico could easily supply demand for both markets. If approved, the Mexican plant would start building Alfa Romeos and Fiats in 2011.

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

Click image for a hi-res gallery of VW Polos

"Do you need the Polo?" That's going to be Volkswagen chief Martin Winterkorn's query to US dealers when he meets with them this week. The answer could determine whether or not we see a sub-Golf sized VeeDub here in the United States. Rising fuel prices have made small cars big again, and VW's taking a hard look at capitalizing on that. The inrush of Volkswagen's competitors to smaller models also makes the segment hard to ignore. BMW's got the hotly anticipated 1-series, Daimler's trend-tastic Smart has been foisted upon us, Saturn's slick Astra is nearly here, and Ford's threatening to give us the Fiesta in a couple of years, too. If we were a VW dealer, our answer to Winterkorn would be a resounding "YES!"

[Source: Auto News - sub req]

It's a long way to travel between Italy and America. Not only is it how far Lamborghini road cars have to travel to meet their new owners here in the US, but it's also the divide American dealerships have had to bridge in order to provide the level of service that customers expect when dropping six figures on a new car. And that's a gap Sant'Agata intends to narrow with the establishment of Automobili Lamborghini America LLC.

Establishing a field office in the US – to be placed somewhere on the East Coast or in California – will give its US dealership network a local address with which to coordinate instead of dealing directly with the factory. The American subsidiary will also provide product planning input back to the factory. The United States represents the largest market for Lamborghini where its sales rose from 100 units in 2001 to 900 in 2007.

Although Lamborghini has had operations in the United States under previous ownership – remember how it bounced around owners through the 80s and 90s? – this will be the first American division since Volkswagen/Audi took over in 1998. The field office will operate with a staff of ten, headed up by Pietro Frigerio, formerly Lamborghini's western United States regional sales manager.

Lamborghini has also announced that it will extend its warranties for 2008 from the previous 2 years/24,000 miles to 3 years with unlimited mileage. The company is also considering a certified pre-owned vehicle program and a financing framework.

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

Click on the images to view our high-resolution gallery

Some will say for better, others will say for worse, but one way or another, the Mercedes SLR McLaren is the supercar that refuses to go quietly into the night. It was previewed by the Vision SLR concept way back in 1999, and since entering limited production in 2003, the Anglo-Saxon supercar has performed disappointingly both on the road and in the market. But rather than allowing it to slip away, Mercedes has repeatedly given it new transfusions with the Roadster, 722 and most recently the 722 GT derivatives. The SLR, in all its incarnations, is about due for retirement, so where has it gone? To Florida, of course!

RENNtech, the Sunshine State-based Mercedes tuner par excellence, has been given the exclusive contract to import and distribute the long-named and long-nosed Mercedes-Benz SLR McLaren 722 GT in North America. RENNtech, which, as we reported earlier, tuned the SLR road car to actually produce 722 hp, will offer an allotment of 21 examples of the factory SLR 722 GT track-day special, each available at about $1.2 million.

To sweeten the deal, RENNtech is setting up a full track-day program for the SLR 722 GT owners, including set-up and maintenance by specialized technicians, opportunity to learn the track behind the wheel of its special SLR karts (pictured, right) and instruction from professional drivers (David Coulthard, although no longer affiliated with McLaren, is claimed to be on board).

To celebrate the arrival of the sharpest (and potentially last) version of the SLR to American shores, we've got a whole mess of new photos for you... just click on the gallery below. (Full press release after the jump.)

[Source: RENNtech]

Alfa Romeo isn't kidding around about its return to the US market: Fiat Group CEO Sergio Marchionne revealed that Alfa is planning to open a factory in the United States.

Citing the drop in the US dollar against the Euro as a principal motivating factor, Marchionne said that manufacturing cars in America was vital to the profitability of Alfa's stateside venture. The Canadian-Italian industrialist anticipated that Alfa would only begin making a profit after three or four years in the US.

This won't be the first time a Fiat division has manufactured in the United States. In 1909 the Italian automaker inaugurated a plant in Poughkeepsie in upstate New York which it closed a decade later.

Meanwhile, industry sources indicate that Alfa's main factory at Pomigliano d'Arco in southern Italy will close for two months beginning in January as a last-ditch effort to get Alfa Romeo build quality up to spec or else face complete closure.

[Source: Automotive News (sub. req.) via Italiaspeed]

While other manufacturers are hurrying to move factories and parts suppliers to China, Chinese truck maker ChangAn is going the other way. Dallas-based Tiger Truck, the exclusive US importer of ChangAn vehicles, has announced plans to open an assembly plant in Jasper, TX. Tiger's vehicles are for off-road uses here in the US – applications such as groundskeeping, farming, and manufacturing. Tiger CEO Mike Ward is reportedly happy to be hiring U.S. workers and seeking contracts with US OEM suppliers. Tiger will be building two new platforms, the Champ full-size pickup, and a medium-duty truck with gross vehicle weights from 14,000 to 21,000 pounds. Tiger's trucks are EPA/CARB certified, as well as meeting frontal crash-test standards. The drivetrain options are wide-ranging, from 2WD to 4WD, hybrid, diesel, even electric. Tiger is serious about equipping work trucks, and there are all sorts of options and accessories available.

Initially, most of the Jasper plant's output will be for export, but the Tiger folks have designed growth into their plant. The Texas location is good for Tiger's exporting efforts to South America and the Carribean, as well as shipping to all points in the U.S. from their very own rail spur. The 100 employees will be capable of cranking out 7,500 vehicles per shift, according to Tiger's PR materials. If the dealer network and popularity of Tiger products grows, we'd expect to see the operation grow. Even if they're not for on-road use, we can see how these vehicles would be extremely useful, and we're encouraged by the decision to locate in the U.S. and employ U.S. workers, as well as involving U.S. OEMs.

Thanks to tipster Dan!

[Source: PR Inside]

Alabama's deep-south image may to some seem better suited to NASCAR moonshine-runnin' than the globe-trotting, jet-setting world of Formula 1, but a new motorsport complex in the southern state is keen to change that.

Alabama Motorsports Park is a $350 million project to be built in Mobile on the Gulf coast and will feature four tracks: a road course, a drag strip, a high-speed oval and a dirt track, giving it the ability to host numerous races for a variety of series around the year.

The project's investors expressed initial interest in hosting a second US Grand Prix, alongside the race currently held in Indianapolis. Given the elimination of Italy's and Germany's second races, this seems like an unlikely scheduling move for F1. The Alabama site is not set to be completed before 2009, though, and if the race continues to fail as it has at Indy, it may be up for grabs.

The last time the United States hosted two grands prix in one season was in 1984 in Detroit and Dallas.

[Source: F1i and the Mobile Press-Register]