Autoblog

Click above for high-res gallery of the BMW X1 Concept

In a move that marks a significant departure from its current direction, BMW will offer both all- and rear-wheel drive versions of its upcoming BMW X1 model. Up to this point, consumers have only been offered all-wheel-drive mechanicals under the skin of the BMW X6, BMW X5 and smaller BMW X3. The German automaker cites weight savings and gains in efficiency as the reason why its newest and smallest SAV loses its front driveshafts, but be assured that it's also a cost-saving maneuver as automakers squeeze to keep prices down. As the models will appear virtually identical from the outside, BMW will offer the rear-wheel-drive version with a special "sDrive" badge to differentiate it from the xDrive-equipped all-wheel-drive model (of course, you'll have to squint to discern the badge differences between a rear-wheel-drive "BMW X1 sDrive28i" and the all-wheel-drive "BMW X1 xDrive28i"). Built on the 3 Series platform (and set for production at the same Leipzig plant), the showroom version of the X1 is expected to look much like the X1 Concept shown in Paris last week. There has been no word on when we'll see it on this side of the pond, but those in Europe should look for the X1 to appear in showrooms sometime in 2010.

[Source: Autocar]

As consumer demand for thirsty vehicles continues to wane, Mercedes-Benz is being forced to slow production at the Alabama plant which manufactures their GL- and ML-Class SUVs and the R-Class crossover. Sales of Mercedes domestic trucks fell to 5,090 vehicles in June, representing an 11.9 percent decline from the same period last year. The move marks the first time in more than a decade of U.S. production, that the German automaker has reduced output due to market and economic conditions. The cuts will affect more than 4,000 of the plant's employees, and unfortunately will trickle-down to hurt the countless other companies who provide just-in-time components to support Mercedes production.

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

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 on the above image to see our Ford Expedition gallery

May was apparently a tough month for Ford's big SUVs. With consumer demand understandably cold for the gargantuan utes and their hard-to-swallow 12 mpg city ratings, Lincoln Navigator sales slid 37 percent while Ford Expedition sales were down 43 percent. As a result, Ford Motor Company has announced that its Wayne, Michigan, plant that assembles these vehicles will close down for nine weeks starting on Monday. While the plant sits idle, Ford will increase production of its passenger cars to better meet market demand for smaller and much more fuel efficient vehicles. Like we didn't see this coming...

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

BMW announced today that it would begin building its entry-level CUV at the automaker's Leipzig plant, alongside the 1- and 3-series. The news confirms rumors that the X1, which has yet to be revealed publicly, will indeed be built on the 3-series platform, lending some amount of sporting cred to the mini 'ute.

BMW hasn't announced what exact markets the X1 is destined for, but the decision to produce in Liepzig is part of BMW's efforts to shift production into the regions in which its vehicles are primarily sold. As such, the next X3 will join the X5 and X6 at BMW's Spartanburg plant, instead of the Magna center where it's currently produced.

Expect the BMW X1 to be revealed later this year or early in 2009.

[Source: Reuters]

As domestic automobile manufacturers cut production and lay off workers because they were caught off-guard when consumer buying habits switched to more fuel-efficient vehicles, Honda will effortlessly shuffle its production to meet U.S. demand for small cars. Without cutting any jobs in North America, Honda will move assembly of the Honda Pilot SUV and Honda Ridgeline pickup from Alliston, Ontario, to Lincoln, Alabama. This move will allow the Japanese automaker to increase production of the fuel-efficient Honda Civic in its Canadian plant. Later this year, Honda is expected to add another 2,000 jobs as it begins to build Civics in Indiana, as well. That plant will be Honda's seventh in North America. Honda has sold 34,163 units of the Civic in North America through April of this year, which is 8.2% more Civics sold on average per day than in 2007. For comparison's sake, Toyota has sold 32,435 Corollas, Ford has sold 23,850 Foci and Chevy has sold 18,636 Cobalts so far this year.

[Source: The Detroit News]

It was only in December that we mention Alfa Romeo was planning to open a factory in the United States. We followed that story with another in March when Fiat also mentioned a possibility of Iveco truck production coming to the States. It was in that same month that Fiat Chief Executive Sergio Marchionne told the Financial Times that his company was in talks with major U.S. automakers about sharing production. On Saturday, Alfa Romeo brand chief Luca de Meo told a German magazine that talks were under way with Chrysler. With Chrysler cutting domestic production, a move like this by Fiat would help both companies. The Italian carmaker, withdrawn from the U.S. market since 1995, would avoid the effects of the strong Euro on exports, and Chrysler would be able to ramp production back up on an idled plant.

[Source: Reuters]

Click above for a high-res gallery of the spied Audi TT Clubsport Quattro.

Car dropped a dime on Audi HQ to get the scoop on the automaker's production plans for the recently spied TT Clubsport Quattro, and as suspected, the roof-less coupe will be making a limited production run. Audi plans to produce between 50 and 100 examples on the open-top TT, but there are no plans on offering it in the UK, the U.S. or other markets outside of the Middle East. The rationale behind the decision centers on the warm climes and lack of rain in the Middle East, along with Audi's commitment to becoming a purveyor of the finest automotive wares. It's a smart move on Audi's part, but we can't help but feel slighted by the decision. Tonneau technology has certainly evolved since its original implementation in post-WWII roadsters, so we would've hoped that such a solution would be offered to enthusiasts around the world.



[Source: Car]

It didn't take long for Porsche to set the record straight about its rumored production plans for the Cayenne in North America. Speaking with Autoweek, Porsche spokesman Albrecht Bamler, refuted a report by Germany's Handelsblatt newspaper that the automaker planned to build Cayenne's at Volkswagen's new factory in the U.S. According to Bamler, there's no need to produce Stuttgart's uber-ute here in the States, since European manufacturers supply parts and Porsche is protected against the weak dollar by currency hedging through 2013. However, Handelsblatt's report said that production of the Cayenne in the U.S. wouldn't begin until after 2015, two years after Porsche's currency hedging expires. Does that mean N.A.-built Cayennes are still a possibility? Bamler says it's too early to speculate on the next Cayenne and Porsche's production plans.

[Source: Autoweek]

Martin Eberhard first conceived of what ultimately became Tesla Motors and the Tesla Roadster when he couldn't get AC Propulsion to build him a TZero. Since he wanted a battery-powered sports car, Eberhard set out to bring together a team that would build his dream car. Of course, it was always his intention to buy the first car for himself, but creating a car company from scratch is not a low budget proposition. Hence Eberhard had to bring in some investors to fund the program. PayPal founder Elon Musk came in big with a pile of cash in return for which he requested the first car. After some haggling, Eberhard agreed to take Roadster number 2 and things moved along.

As we now know, Tesla encountered some speed bumps along the way and production got delayed by many months. The first production model was completed in December 2007, and delivered to Musk in February. Series production officially kicked off on March 17 of this year with the car with serial number 2 starting down the line. That car destined for Eberhard has yet to leave the Lotus factory in England. Meanwhile two other cars have been completed and one has been delivered to a customer in the U.S. while the other has been touring Europe for the last couple of weeks. Needless to say, Martin Eberhard is not pleased about other people getting their Roadsters before him. The problem is that automotive build sequences are a very complicated matter, which are only made worse when you blend big egos into the mix. The matter comes down to the difference between what the VIN numbers say and which cars we're actually built when. AutoblogGreen has a detailed report on what was "promised" to Eberhard, and what is being delivered, including documents provided by Eberhard.

[Source: AutoblogGreen]