Autoblog

According to a report by Japan's Kyodo News, General Motors' chief executive and chairman Rick Wagoner is considering visiting Toyota in Japan to discuss a myriad of issues, ranging from funding to parts sharing.

In typical fashion (of late), the story cites unnamed sources saying Toyota is "expected to consider quick fixes for the cash-strapped GM, including buying up its assets and helping secure sufficient business funds." The talks are also said to include a partnership that would license Toyota's hybrid technology for use in GM products, along with ToMoCo building fuel-efficient, compact cars for the General.

We're suitably skeptical about any kind of partnership between the world's two automotive giants, particular since no one from Toyota or GM was willing to comment for the story. More to come... or not. Watch this space.

[Source: Reuters]

BMW, the Munich-based German automaker, is reportedly in discussion with other automakers -- rivals in some cases -- to sell their engines and transmissions. Klaus Draeger, BMW's head of development, told Auto Motor und Sport that the automaker is in advanced talks with Mercedes-Benz about licensing engines to its Stuttgart-based competitor.

Specifics have not been announced, but one likely candidate would be BMW's new V-12, set to debut in the new 7 Series and baby Rolls-Royce sedan. Mercedes would drop it under the hood of their flagship S-Class and Maybach. There was no mention about the possibility of BMW's twin-turbo inline-six finding itself under the hood of a Mercedes (while BMW continues to refine their award-winning inline-six powerplant, Mercedes dropped their popular straight-six in the mid-1990's and replaced it with a V6), but Draeger did hint that other automakers have approached the company about diesel engine technology. Engine and transmission sharing isn't uncommon in the industry, but such a move would be a first for the two companies, each longstanding rivals with products selling in the identical segments.

[Source: Autocar]

In a move that will help both ailing automakers, General Motors and Ford are holding discussions about sharing engine and powertrain technologies. Although neither company will officially acknowledge the liaisons, the meetings have been going on for more than a month, according to sources. Engine and powertrain development costs are significant -- an entirely new engine could cost $1 billion, while a transmission could cost upwards of $800 million -- so splitting those costs offers substantial savings to both companies. In addition to the financial incentives, technology sharing would open doors that otherwise would have remained shut (e.g., GM sharing Volt technology with Ford). This wouldn't be the first time the two competitors have climbed in the sack together... years ago, they successfully partnered on a six-speed automatic transmission that is widely used by both companies today.

This rumor definitely makes for a fun what-if game. If these discussions bear fruit, what engines would you like shared across the aisle? A Vortech V8-powered F-150 or an LS9 Mustang GT500? How about a Malibu powered by a twin-turbo DI Ecoboost V6?

[Source: Detroit News]

Click above to view more images of the Tata Nano

Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.

If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.

The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss. Thanks for the tip, Yash!

[Source: Economic Times via The Earth Times]

If you've been waiting on pins and needles for a small Chrysler that's due to be built in China by Chery, you're going to have to twiddle your thumbs a little longer. Though we've been hearing about a Chrysler/Chery Hornet or Demon for some time, execs from both companies don't believe the products are ready for North America, yet. Quality and safety are still a concern with the vehicles, but Chrysler's China boss Phil Murtaugh feels the challenges are far from insurmountable. Chery Chairman, Yin Tongyao, is also convinced that more work needs to be done to get the product up to US standards, saying the US and Europe are "very mature markets."

Chery is dying to get its affordable vehicles into the US market, but both Chrysler and Chery seem to understand that any sub-standard Chinese vehicles are destined to take their place next to Yugo in the history books. Chances are that the two companies will only have one shot to get things right, and if the final product is garbage, Chery will be finished in the US, and Chrysler's already dim rep will start to flicker. If the inexpensive vehicles are a big hit, however, the Pentastar will be pulling in Yuan hand over fist.

[Source: AP]

More news from the advancing front of European carmakers expanding eastwards: PSA, Europe's second largest automaker and the French parent company of Peugeot and Citroën, is considering opening its new plant in Russia to partnerships with rival carmakers.

The new factory is located in Kaluga, some 180 km outside of the capital, Moscow. Russia is considered one of the fastest-growing markets worldwide, alongside India and China, where Western automakers have also been setting up factories, principally through joint ventures with local manufacturers. PSA's Kaluga plant, scheduled to begin production in 2010, will start out building only Peugeots and Citroens, principally mid-size automobiles which PSA says accounts for 60% of the Russian market for new cars.

If PSA did look to partner with another automaker for production at Kaluga, it could go even father east to Japan's Mitsubishi, which recently obtained financial incentives from the Russian government to assemble cars there and with which the French carmaker already partners on its SUVs.

[Source: Automotive News Europe – subscription required]

Mercedes' small cars, the A-Class and B-Class, have not been the runaway success that the German automaker had hoped they would be, partially due to high costs of production that drove retail prices up above their competitors. That's why Mercedes-Benz had been looking at forming a partnership with a rival automaker in order to reduce costs and produce more competitively-priced entry-level models. But after discussions were held with both BMW and Fiat, Mercedes has opted to go it alone.

Read more after the jump.

[Source: Inside Line]

Connaught's getting help from a fellow British sports car maker to get the Type-D to market next year. Caparo's vehicle engineering division, which does much the same thing as Lotus - supplying parts and engineering services to customers, will build the steel and composite chassis for the Type D. Caparo will also supply the body panels to Connaught, and production is planned to begin in June 2008. Connaught's original plan was to have a supplier based outside the UK provide chassis and superstructure, but Caparo managed to win the deal instead. We're sure fans of British iron are pleased that the Type D will be a properly English endeavor, and we're anxiously awaiting our chance to sample the uniquely-styled high performance ride. We wonder if Lucas will be tapped as the supplier for electrical components (not that it would matter – it's not the bad old days anymore)?

[Source: Autocar]

"We started off building and selling cheap cars, but now we are changing," says Geely Automobile Holdings Chairman Li Shufu at at Tokyo press conference. Geely is the purveyor of some of the most inexpensive cars in China, and now it's looking to sell in other markets. Citing Geely's great respect for Japanese manufacturers, Li expressed a desire to collaborate with them as Geely follows the trail they blazed over a generation ago. Competition in the Chinese auto market is cutthroat, and Geely has plans to double its capacity and add assembly plants in North America and Europe, too. Their goal is to sell 1 million cars per year by 2010, quite an increase from the 175,635 units they moved last year.

[Source: Auto News - sub. req'd]

It's no secret that Volvo has had an "FOR SALE" sign posted at the front door for some time now, but the number of bidders actually interested in the company are fast diminishing. The latest company to declare its non-interest is Renault, whose CEO Carlos Ghosn claimed that they were not interested in adding another brand to the stable.

Ghosn was quoted by Automotive News as saying "Renault needs new products, new technologies. It does not need a new brand." He also said that Ford's asking price was too rich for Renault's taste, but no numbers were revealed.

Volvo has been one of the few success stories at Ford over the last decade. The company has revamped its lineup, increased sales, expanded its target audience, and most of all, is profitable now. It's no surprise that Ford is after a high price for the jewel of its Premier Auto Group.

[Source: Automotive News]