Autoblog

We're really excited for the new Ford Fiesta to hit U.S. shores, but unfortunately we have almost two more years to wait. Our friends overseas don't have to wait at all, though, so marketing for the attractive sub-compact has already started in the UK. One such publicity stunt involved a pair of three-door Fiestas that tore up the dance floor recently near the Tower of London at the Tango at the Tower event while a 20-piece orchestra jammed the classic tune. That's right – cars doing the tango. Hit the jump to view the well-choreographed video of the two Fiestas going toe to toe in the rain. We're tempted to quip that these Fiestas have better moves than Kim Kardashian, but we have no desire to admit watching Dancing with the Stars.

[Source: YouTube]

In the land of mergers and acquisitions, there are takeovers, there are hostile takeovers, and then there are I'm Gonna Git You Sucka No Matter What takeovers. Porsche's increasingly acrimonious battle to swallow VW is becoming that third option, and the brawl might threaten the short term plans of Porsche, VW and Audi. Porsche wants access to Audi engines and electronics, but VW, which owns more than 99-percent of Audi, won't allow it.

Porsche has de facto control of VW, with a 35.1-percent share. The so-called VW Law, which allows the government of Lower Saxony ultimate veto power even though it has only a 20-percent share, has been the broadsword that both VW and Germany have been using to keep Porsche at bay. The law has been struck down at least three times by the EU Commission and a German Court, only to have politicians figure out how to rewrite it without changing the substance of it.

VW's supverisory board recently declared it would need to approve any sharing between Porsche and Audi, and at the moment, Porsche can't overrule that decision. Ferdinand Piech, the head of VW, is in a battle with the Porsche family and Wendelin Wiedeking, the CEO of Porsche, over control, and neither is expected to budge. The risk is that since no one knows how this is all going to play out, a battle of egos and punitive reactions could interrupt development of and platform sharing between – and therefore the profits of – all three manufacturers' future products and technology.

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

Ford of Europe has an Individual Program that's been rolled out for a number of old world offerings, and now the Kuga gets its turn in the wardrobe room. Inspired by the Iosis concept from 2006, the new body kit and 20-inch wheels clothe a specialized interior for the Kuga Titanium that features Ebony Nappa and Bond leathers with contrasting piping and high-gloss Piano White fixtures.

Down in front, the Kuga will benefit from a new 2.5-liter, 5-cylinder Duratec Turbo with 200 hp and 236 lb-ft of torque that comes out of the Focus ST. It should add some sporty to the spaciousness while returning 29 Imperial mpg. This gas engine is 64 hp up on the standard offering, the Duratorq TDCi diesel. Another first for the Kuga, it can be shifted with an optional 3-mode, 5-speed automatic transmission.

On another note, the Duratec puts out a more energetic sound thanks to new exhaust tuning. The Individual program and powertrain options will be available from the beginning of 2009, and the first Kuga Individual showcasing what customers will be able to do goes on display at this week's Paris Motor Show. In the mean time, check out the gallery of high-res photos below.


[Source: Ford]

The Audi Q7 V12 TDI is set to launch (but not here in the U.S.), and it's just the thing to give that annoying neighbor with his fancy VW Touareg V10 TDI a debilitating inferiority complex. 500 horsepower and approximately enough torque to counter-rotate the Earth (758 lb-ft) come standard on Audi's diesel monster. 21-inch wheels mask carbon ceramic brakes, LED running lamps help light the way, and the interior is a festival of dead cow, TV screens, and Alcantara, all trimmed neatly in aluminum and carbon fiber. If we were, say, Russian gangsters, we'd totally be driving one of these. (Except Neff, who would undoubtedly, stubbornly continue rolling in the Alero.) In conjunction with the launch, Audi dumped a slew of new pictures on its media site, so here they are. Click away.


[Source: Audi]

It's handy to work next door to Honda's US Headquarters if your goal is to snag pictures of future models. A user from the Temple of VTEC forums named Tyson grabbed a couple shots of what's believed to be the 2009 Acura TSX. He'd been seeing the silver sedan for a few days, and was finally able to think quickly and grab the camera phone. What we know as the Acura TSX is the rest of the world's Honda Accord. Being their bread and butter sedan, Honda's not gone out on a limb here, but what we can make out is a pleasing evolution from the current TSX/Euro Accord. Having experienced the cavernous new Accord, we find the TSX a bit more "right-sized" when you think in terms of sports sedans. Hopefully, sporty moves will be delivered by Honda's SH-AWD hardware, with the RDX's turbo-fed mill providing the twist -- at least that's what we're praying for. Production is expected to start later this year.

[Source: VTEC.net]

Audi's given the A4 an S-Line package for European consumption, and they're pledging that the US won't get stiffed when the fifth-generation A4 lands in America in late 2008. The German word for sport is, uh, sport, and the S-line bits can appease S4 aspirants without the heavy outlay for the über-performing version of the A4. Inside Line has been assured by Audi USA's Christian Bokich that they "won't hold back on the cool stuff from Germany," meaning you won't have to hunt down esoteric Euro part numbers for the bits you really want; nor will you have to go at your Audi with hand tools to get something a little special.

For about $3,000, European buyers will get a lowered suspension by Quattro GmbH, 18-inch cast aluminum wheels, sport seats, special perforated Alcantara and leather, and different accents for the leather wrapped sport steering wheel. While the interior execution will be Audi sumptuous, it certainly won't make the car any sportier or faster. The bolsters on the sport seats are likely to be more snug-fitting, but what it sounds like, the main value is in the Quattro GmbH suspension which would probably be hard to duplicate for a mere $3K aftermarket. The extra finery is de rigeur in this segment, lest you forget you're driving an uprated car.

[Source: Inside Line]

The European car market is filled with all sorts of interesting models that we only wish we had Stateside, and every year our counterparts across the pond pick the best with the European Car of the Year awards. Last year Ford's S-Max, the minivan that makes grocery runs exciting, won the citation, preceeded by the new Renault Clio in 2006 and the greentastic Toyota Prius before it.

The gaggle must have had a real challenge this year, but managed to narrow down the field to seven nominees out of a total 33 contenders. While you may not be surprised to see the likes of the SsangYong Actyon and Daihatsu Materia cut from the list, Lexus and Audi might feel a bit differently about their LS600h and A5, respectively.

In the end, the Fiat 500, Ford Mondeo, Kia cee'd, Mazda2, Mercedes-Benz C-Class, Nissan Qashqai and Peugeot 308 will be holding the stage on November 19 when the envelope is opened, and with such stiff competition, this year they're bound to have a real winner on their hands. Watch this space in six week's time to see which one takes the crown.

[Source: CarOfTheYear.org]

With the U.S. dollar's decline against the euro, the Wall Street Journal's crystal ball gazers have determined that the price of vehicles shipped over from the old world are set to rise in the next year. European manufacturers have been able to lock exchange rates by buying contracts that keep currency fluctuations at bay, but for some automakers abroad, that's about to change. Those contracts are set to expire soon, and that means either prices will rise or European automakers will have to begin producing their wares in the Land of the Free.

Profitability may be sustained in the short term by BMW and Mercedes, as U.S.-built products are used as a tourniquet to slow the financial bleed. Volkswagen is supposedly in good shape through next year, but the idea of building more vehicles here in the States has been mentioned numerous times. Plus, there's always the option of building in China, something that's inevitable given the "flat" world in which we're living.

[Source: Wall Street Journal]

The workforce exodus in Southeast Michigan is slated to continue, as Volkswagen's North American headquarters is officially heading over to Washington D.C. VW currently employs 1,500 workers in Auburn Hills, just a stone's throw away from Chrysler's epicenter. The move to D.C. comes as VW has lost about $2 billion in North America in 2005 and 2006. Past headquarter moves, like Nissan's shift from California to Tennessee, have helped pare-down a company's white collar workforce, and VW feels its workforce is bloated and in need of fresh blood.

While it's unfortunate for Michigan to lose yet another large employer, the move promises to be a big win for the D.C. area. It'll be tough for VW to improve its bottom line, however, with the Euro worth so much more than the Dollar at the moment. Perhaps a view of the White House and Lincoln Memorial will motivate the new VW North America workforce to keep making great products, but with price tags that are a bit closer to the competition.

[Source: The Car Connection]

How's this for a wake-up call on the state of the dollar: "If the dollar keeps slumping against the euro, the United States could become the next Mexico -- a low-cost manufacturing haven for European automakers and suppliers." With the dollar at $1.38 to the euro as of now, and expecting to drop further, European makes either need to raise prices, move production to "cheaper" countries like the US, become more efficient, or be happy with less profits. Fewer euros in the till isn't really an option, and price wars are already difficult enough to navigate. That leaves relocation or finding cost efficiencies in other markets.

The article in Automotive News goes on to detail how European manufacturers like BMW and Mercedes are actively moving production to their Spartanburg, South Carolina and Tuscaloosa, Alabama factories, respectively. VW is considering its options for an American plant, but will stick with Mexican operations for now. Audi's approach, since it only sells 10-percent of it's European product in the US, has been to find cost efficiencies in markets like China. Other companies looking for such natural hedges include Magna, which recently lost a huge amount of production at its Austrian plant. The Canadian supplier and manufacturer is looking at building a factory in America to ease the pain.

The market is being watched closely, and there are too many factors in play to know who will do what yet, but some analysts think the dollar might drop to $1.50 against the euro. If so, said John Lawson, chief auto analyst for Citigroup in London, "Either the dollar has to change, or the business model has to change."

[Source: Automotive News, sub req'd]