Autoblog

It's been well documented that we Americans have been growing larger, and if the auto manufacturers thinking of bringing their small cars Stateside follow through, we're going to feel like giants. Toyota and Audi are the latest automakers discussing whether to bring smaller transportation for us portly Americans. Audi, who didn't design the A1 concept for US duty, now believes it's a good idea to rethink its original strategy. Audi marketing boss Peter Schwarzenbauer thinks US customers have made a real shift towards smaller cars and trucks, and that the movement has staying power. Audi brass has made no decisions regarding the A1 in the US, but the fact that they're genuinely looking into the matter is a good thing.

Toyota's cleverly packaged iQ is also being considered for sales in the US. A company insider told Automotive News that Toyota was looking into the viability of the iQ in the US. The sharp looking micro car goes on sale in Europe beginning in early 2009, and we wouldn't be surprised if it arrived Stateside some time after that.



[Source: Automotive News subs req'd]

Click above for high-res gallery of the Euro Ford Focus

For years, enthusiasts have been clamoring for Euro-only Blue Oval models to be sold in American dealerships. This dream is finally coming true, starting with the new Ford Fiesta and next-gen 2010 Ford Focus. Mark Fields has revealed that the European Focus and Foci built in North America will share 90% of their parts compared to just 20% today. Not only will this make for better cars, it also allows Ford to realize a double-digit profit improvement on each Focus compared to what it's earning today. This is certainly a positive development, as the automaker believes that the small car segment will nearly double in the next few years. We're inclined to agree unless Exxon discovers that the Earth's core is made of crude. The other part of Ford's plan is to make its North American plants flexible enough to respond quickly to the ever-changing U.S. market, which is something Toyota, Honda and other import automakers assembling vehicles in this country have already done with great effects.


[Source: Ford]

General Motors can claim about three percent of the car market in India, and it wants more. Tata's $2,500 Nano will still be the lowest priced new car in the world, but GM wants to offer something less expensive than its $7,350 Spark for Indian buyers. Group Vice President David Reilly points out that while a sub-Spark would be inexpensive, competing directly with the Nano is not something GM intends to do. If a bargain basement GM were developed, it could be leveraged in other markets besides India – it seems feasible that it'd be easily ported to the also-emergent Chinese market.

Three quarters of cars sold in India are small vehicles, and if the General can ratchet up its market share with a new model, the gains in other new markets with explosive growth could help further offset the sluggish performance of sales in the United States. To help achieve that goal, another manufacturing plant is currently underway in Pune, and should be fully up and running by the end of this year. There are also plans for an engine plant in India, though no details are forthcoming yet.

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

Ford's connections in India are growing far beyond the announcement that Tata is the preferred bidder to purchase Jaguar and Land Rover. Ford announced today that it would also be investing another $500 million in India to double its manufacturing capacity by 2010 and establish itself as a leader in one of the biggest growth markets in the world.

FoMoCo's total investment in India will grow to over $875 million with the new funds, and will pay for the development and production of a new small car at its plant in Chennai with an engine plant next door. Within the next two years, Ford plans to have an annual production capacity of over 250,000 gasoline and diesel engines in India, along with making its Indian operations a leader in small car production.

[Source: NYTimes]

The Saturn Astra may be the most exciting all-new small car to hit US shores in some time. The Opel version of the Astra is one of the most popular compacts in Europe, which is saying something when you consider all the great small cars available overseas. While Europeans are OK with paying a premium for smaller vehicles, we in the US tend to equate value with size or performance, so price point is key.

To see if the Astra is priced right for you, go no further than the Saturn website, where a mini-brochure awaits your perusal. While priced higher than entry vehicles from Honda, Toyota, and Ford, the Astra will focus on refinement and features instead of volume. The base XE five-door will sell for $15,995, the upscale XR five-door retails for $17,545, and the option-rich three-door stickers at $18,495. Options include 18' rims (three door only), stability control, and a dual panel sunroof. The entry price is still a little higher than the competition, but with gas prices affecting buyer's decisions, now is as good a time as any for the General to unleash the Astra on the buying public. From everything we've heard, the Astra should be far superior to any small car GM has ever produced for US consumption, and that's a good thing.

[Source: Saturn]

Automotive News is reporting that Toyota will launch a really cheap car in the next two years. Most likely to be built in India, it is primarily intended for sale in emerging markets, but could also find its way into more developed markets, too. So far, India and Brazil seem to be the leading candidates for hosting production of this inexpensive family car. One reason the company may be siding with India is that Toyota has already acknowledged it will be building a new plant there. A new facility with an annual capacity of 100,000 units is being built near Bangalore's existing facility, which has a capacity of 60,000 units.

Toyota trails Suzuki, Hyundai and Tata in the Indian market, so a new inexpensive model could help it capture more market share. They will face stiff competition from India's own Tata Motors, which recently announced a new small car that will start at just 100,000 rupees ($2,440) when it goes on sale late next year. Renault also offers a no-frills Logan sedan in India, and companies like Fiat and Volkswagen are also looking into this quickly expanding market.

[Source: Automotive News, sub. req.]

GM has been rapidly expanding in countries outside the US, and South Korea-based Daewoo has been a major contributor to the company's growth in developing markets. GM is redoubling their commitment to Daewoo by investing $6 billion in the once bankrupt automaker over the next few years. President and chief executive of GM DAT Michael Grimaldi says the money will be used to expand design, engineering, and for new plants and products. Among the projects on the table are a mini car and a small car, which could mean that some form of the Beat, Trax, or Groove could be in the pipeline. With relatively low labor costs and a free trade agreement with the US, GM Daewoo could expand their role of providing low-cost economy cars to our shores, but with a Chevy badge.

[Source: Channel NewsAsia]

While Chrysler Corp. and its new owner Cerberus Capital Management are still enjoying the Honeymoon phase of their courtship, Chinese automaker Chery is reconsidering its deal with the U.S. automaker to build Chrysler-branded small cars. It seems no one from the soon-to-be defunct DaimlerChrysler alerted Chery to the impending deal, which came as a "total surprise". Chery's general manager Zhang Li told a financial daily that his company has halted the Chrysler small car project until such time as both automakers can renegotiate their agreement.

One wonders if Chery hopes to renegotiate the deal in their favor now that Chrysler Corp. has new owners at the helm, potentially with more money to spend on a Chinese-built small car. Chery may have the upper hand here, as it knows Chrysler desperately needs a B-class small car to sell around the world and, as far as we know, has no plan B in the works if the deal with Chery falls through.

[Source: just-auto.com, sub. req'd]

High oil prices are proving to be a boon for automakers with a portfolio of small cars, and Suzuki is riding the wave. Japan's fourth-largest automaker announced Wednesday that it is raising its 2006-2007 revenue and profit forecasts by about 7 percent.

In the right place at the right time, Suzuki is enjoying a sharp increase in demand for its successful 660cc minicars in the Japanese domestic market, and a boom in the Indian vehicle market. In western markets, the company can hardly meet demand for its new SX4 small crossover (also branded as the Fiat Sedici) and Swift hatchback.

Investing in the future, Suzuki also announced plans to build a new small-car facility in Japan, with an annual capacity of 240,000 units. The $523 million plant will open in early 2008. The company is also doubling capacity at its plant in Hungary, and increasing by around 50 percent its capacity in India and Pakistan.

[Source: Reuters]

It turns out that the Caliber's been laying the smack down when it comes to sales in its first five months on the market. In May, for instance, the Caliber was the best selling car in Dodge's lineup with around 12,500 units sold. According to AutoWeek, dealers are selling Calibers as fast as the Chrysler factory in Belvidere, IL can make them, and the cars are spending an average of just 10 days on dealer lots before they're sold. One dealer has a backlog of 60 orders and a 10-month wait.

The Caliber launch couldn't have come at a better time, with consumers beginning to abandon large SUVs for smaller cars in increasing numbers. Fuel prices are reportedly driving the migration, and the Caliber's four-cylinder engine lineup that includes 1.8-, 2.0-, and 2.4-liter World Engines mated to a CVT transmission can deliver highway mileage up to 32 mpg. 

While not being the most fuel-efficient small car on the market, we think a major ingredient to the Caliber's recipe for success is the fact that customers don't have to give up a macho image to get more mileage from a tank of gas. 

[Source: AutoWeek]