Autoblog

Jeep Cherokee left teetering on border fence after failed crossing attempt [w/video]

Zach Bowman — Thu, 01 Nov 2012 14:41:00 EST

Filed under: SUV, Government/Legal, Videos, Jeep, Off-Road

The XJ Jeep Cherokee is a remarkably capable off-roader. With good approach and departure angles, decent suspension flex from the factory and stout running gear, it will get you where you need to go within reason.

Unfortunately for some would-be immigrants, even that talented machine doesn't have the break-over angle necessary to drive over the border fence between the US and Mexico. Border Patrol agents came across this scene recently while on patrol, wherein a few innovative minds came up with a set of ramps to carry their XJ up and over the 14-foot-tall fence.

The Boarder Patrol has since seized the XJ, which means it will likely languish on a government lot until it goes to auction. While we imagine the vehicle's occupants simply set out on foot after the high-center incident, next time they might have a bit more luck with a Wrangler. You can check out a video of the SUV on the fence below.

Continue reading Jeep Cherokee left teetering on border fence after failed crossing attempt [w/video]

Jeep Cherokee left teetering on border fence after failed crossing attempt [w/video] originally appeared on Autoblog on Thu, 01 Nov 2012 14:41:00 EST. Please see our terms for use of feeds.

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Audi sets U.S. annual sales record with a month to spare

Chris Shunk — Sun, 04 Dec 2011 14:02:00 EST

Filed under: Car Buying, Audi, Earnings/Financials

Audi may not have the market share of its German rivals here in the States, but that dynamic appears to be changing. Audi announced that 2011 is already a record-setting year here in the U.S., besting its 2010 record by Thanksgiving weekend.

Audi has already sold 104,906 vehicles through November 30, better than the 101,629 units sold in all of of 2010. December is traditionally a strong sales month (who wouldn't want an R8 for Christmas?), which should only add more distance between the old sales record and the new mark. Audi Certified pre-owned sales also had a banner year, moving 33,102 used vehicles so far in 2011, beating the previous high of 32,108 units in 2008.

Audi of America President Johan de Nysschen sounds pleased with the brand's progress in the U.S., attributing the success to "the steady arrival of exciting new models that have captured the imagination of the American premium car customer." Hit the jump to read the brag-tastic Audi press release.

Continue reading Audi sets U.S. annual sales record with a month to spare

Audi sets U.S. annual sales record with a month to spare originally appeared on Autoblog on Sun, 04 Dec 2011 14:02:00 EST. Please see our terms for use of feeds.

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Volvo considering building cars in North America

Aaron Richardson — Mon, 19 Sep 2011 08:59:00 EST

Filed under: China, Europe, Plants/Manufacturing, Volvo

Volvo is mulling a U.S. factory to offset some of its exposure to fluctuations in the dollar. One thing the automaker definitely will be doing is expanding its presence in the U.S., and a manufacturing facility would certainly make that way easier.

A U.S. Volvo plant would join factories in Sweden, Belgium and two plants in China. Volvo has been making a push on the Chinese market after Ford sold the Swedish company to Geely last year.

This manufacturing push is part of the company's initiative to double sales to 800,000 cars per year worldwide. The company also intends to invest $11 billion over the next five years, with the crosshairs squarely on the Chinese market.

Volvo considering building cars in North America originally appeared on Autoblog on Mon, 19 Sep 2011 08:59:00 EST. Please see our terms for use of feeds.

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Americans racked up 3,000,000,000,000 miles traveled last year

Aaron Richardson — Fri, 04 Mar 2011 18:01:00 EST

Filed under: Etc., Government/Legal

The Department of Transportation has released data revealing that American drivers clocked over 2.9 trillion miles traveled in 2010. According to DOT, that's a .7 percent, or 20.5 billion-mile) increase over 2009, and the highest rate since 2007.

The area between Texas and Kentucky saw the biggest increase in miles traveled at 1.4 percent, with motorists travelling 46.6 billion miles in that area in 2010. The area from Delaware to Florida saw a .4 percent decrease in miles traveled, shaving 214 million miles off that locale's annual total.

Despite the increase in miles traveled, traffic fatalities in 2010 were at their lowest since 1950. We wouldn't expect the same increase in miles driven for next year, as gas prices are expected to climb to $4 a gallon over the summer, but we'll see... Americans love road trips, no?

[Source: Consumer Reports | Image: Gabriel Bouys/AFP/Getty]

Americans racked up 3,000,000,000,000 miles traveled last year originally appeared on Autoblog on Fri, 04 Mar 2011 18:01:00 EST. Please see our terms for use of feeds.

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Report: U.S., South Korea closer to new trade deal

Jeff Glucker — Sun, 05 Dec 2010 10:03:00 EST

Filed under: Government/Legal, South Korea

The United States and South Korea have reached an agreement regarding revisions to the free-trade deal between the two nations. This move allows the U.S. and the South Korea to move forward and look at approving the legislation, which has been delayed due to issues on both sides.

A rundown of what has been changed is as follows:

The U.S. can phase out its 2.5 percent tariff on automobiles over five years, instead of three.

Each U.S. Automaker can export up to 25,000 cars to South Korea annually provided they meet US crash standards.

The U.S. can continue charging a 25 percent tariff on trucks for eight years and then phase it out by the 10th year.

South Korea will eliminate its tariff on trucks.

Both sides report that significant progress has been made, and the revised agreement continues to be reviewed. With $68 billion in trade floating between the United States and the Republic of Korea, getting this trade agreement signed should serve to boost our national export business.

[Source: Automotive News - sub.req.]

Report: U.S., South Korea closer to new trade deal originally appeared on Autoblog on Sun, 05 Dec 2010 10:03:00 EST. Please see our terms for use of feeds.

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Toyota idles production in France, UK and U.S. to cope with weak demand

Zach Bowman — Tue, 30 Mar 2010 14:01:00 EST

Filed under: Europe, Plants/Manufacturing, Toyota, Earnings/Financials

Toyota Yaris 5-Door Liftback (UK market) - Click above for a high-res image gallery

Toyota manufacturing plants are beginning to feel the backlash from the company's wave after wave of recent global recalls. The company just announced it will stop production at its European facilities for a total of 12 days in April. The plants are responsible for building the European Yaris and upcoming Auris hybrid, but since demand for the company's products are currently hanging out in dumpsters everywhere, workers will find themselves with a few extra days of unwanted vacation.

According to The Wall Street Journal, the European production stop comes on the heels of similar action here in the States. Toyota recently decided to "adjust production" at two of its factories here in the land of the free. Workers at those locations can expect the doors to be closed for a total of two weeks over the course of March and April.

Gallery: Toyota Yaris 5-door Liftback (UK Version)

[Source: Wall Street Journal]

Toyota idles production in France, UK and U.S. to cope with weak demand originally appeared on Autoblog on Tue, 30 Mar 2010 14:01:00 EST. Please see our terms for use of feeds.

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Volkswagen considering offering Polo in U.S. market

Damon Lavrinc — Fri, 18 Jul 2008 15:33:00 EST

Filed under: Plants/Manufacturing, Hatchback, Volkswagen

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]

Volkswagen considering offering Polo in U.S. market originally appeared on Autoblog on Fri, 18 Jul 2008 15:33:00 EST. Please see our terms for use of feeds.

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US-market Alfas could be built in Mexico

Dan Roth — Sat, 08 Mar 2008 12:07:00 EST

Filed under: Europe, Plants/Manufacturing, Alfa Romeo

Alfa Romeo is returning to the US market in about a year, offering the zooty 8C Competizione and 8C Spider atop a range of less spectacular offerings. While the top-end 8Cs will probably be Italian emigres, the 149 and 169 sedans could be put together in Mexico. Alfa doesn't have a hard and fast decision yet, and could pick another site, even one in North America. Moving the labor to Mexico for the volume sellers might prove to be a wise move on Alfa's part. The dollar continues to take a beating, pushing up the cost of European items on US sales markets, and building somewhere else would sidestep some of those increased costs. Alfa is trying this idea in China, too, where Chery will assemble automobiles for that market. We're all for it if it gets the keys to some stylish Italians in our hands while holding the prices down. The quality can't be any worse than it was in the bad old days that led to the notorious reputation for unreliability that afflicted Italian marques. Besides, those shop queens were so joyous to drive, they made suckers out of all of us, and we'd do it again, given the chance.

[Source: Inside Line]

US-market Alfas could be built in Mexico originally appeared on Autoblog on Sat, 08 Mar 2008 12:07:00 EST. Please see our terms for use of feeds.

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Rendered Speculation: Alfa Romeo MiTo could be first true MINI-killer

Dan Roth — Mon, 03 Mar 2008 07:58:00 EST

Filed under: Spy Photos, Geneva Motor Show, Hatchback, Alfa Romeo

The Mini is so 2006. VW's new Polo has yet to launch. Neither of those cars matter once you set eyes on the forthcoming hotness from Alfa Romeo. Alfa is coming back to the U.S. market, and while everyone's been ga-ga about the 8C Competizione, supercars just don't support the type of sales volume that Alfa is looking for. Dubbed the MiTo, Alfa's B-car might be the starter kit for the more aspirational supercars that the brand has to offer, but it's no less kickass when taken on its own. Alfa's styling will be new and fresh in the U.S., the brand having been absent from North American shores since the 1990s. There's a little retro in the nose as seen in these renderings from Winding Road, but it's not anywhere near the total homage to the 1960s that the Mini is.

What's underneath the sheetmetal that's alternately voluptuous and crisply creased is a versatile chassis developed before GM took their wad of cash home from Fiat. The MiTo actually shares its platform with the Opel Corsa and the Fiat Grande Punto, both of which have left favorable impressions with reviewers. Power units could run the gamut from a fire breathing turbocharged 1.4-liter gas unit to a 1.9-liter diesel, and a 2.0-liter that kicks out 280 horsepower is also a possibility if a Delta version comes to fruition. As excited as this news makes us, it's going to be a long wait until 2010.

[Source: Winding Road]

Rendered Speculation: Alfa Romeo MiTo could be first true MINI-killer originally appeared on Autoblog on Mon, 03 Mar 2008 07:58:00 EST. Please see our terms for use of feeds.

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Canadian leasing companies sue gov't and automakers over high car prices

Chris Shunk — Fri, 29 Feb 2008 17:28:00 EST

Filed under: Car Buying, Government/Legal, BMW, Mercedes-Benz

Due to a slumping greenback, the Canadian Loonie and the U.S. dollar are worth roughly the same amount, but the price of most new cars in Canada haven't made the adjustment. Two leasing companies are suing the Canadian government, BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC for a cool billion dollars, but not because of the uncompetitive pricing in the United Province.

The leasing companies have filed suit because strict import rules are preventing the companies from buying cars in the U.S. and selling them in Canada. The many fees, procedures and restrictions allegedly resulted in a 20-30% increase in the sale of more expensive Canuk cars. One example is a $350 admissibility charge to import a Bimmer, and a far more ridiculous $500 fee will be levied for bringing over a BMW that has received a recall repair in the States. The leasing companies allege the all those fees and fines enable BMW and Mercedes to sell vehicles that cost between 20% and 35% more than similar US models.

Rather than these two leasing companies, it seems like customers in Canada are the ones who are losing out the most with high vehicle prices. At least the Canadians still have plenty of other cars and trucks that they can import from the U.S.

[Source: Report On Business via Winding Road]

Canadian leasing companies sue gov't and automakers over high car prices originally appeared on Autoblog on Fri, 29 Feb 2008 17:28:00 EST. Please see our terms for use of feeds.

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Alfa Romeo to open new plant in US

Noah Joseph — Wed, 12 Dec 2007 09:33:00 EST

Filed under: Plants/Manufacturing, Alfa Romeo, Fiat

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]

Alfa Romeo to open new plant in US originally appeared on Autoblog on Wed, 12 Dec 2007 09:33:00 EST. Please see our terms for use of feeds.

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Clarkson nixes U.S. Top Gear

Noah Joseph — Tue, 24 Jul 2007 15:32:00 EST

The BBC was reportedly evaluating producing an American version of its hit show Top Gear with the existing British cast. The show's star lead host Jeremy Clarkson, however, apparently having seen enough of the U.S. after filming the show's road trip through the South, has nixed the idea.

The proposal would have involved Clarkson, together with his co-stars Richard Hammond, James May and The Stig, flying stateside for four months to embark upon a hectic filming schedule, a prospect which didn't tantalize Clarkson, to say the least. On top of other concerns, Jezza reportedly wouldn't want to leave his family behind for such a long period of time.

For their part, the BBC hasn't given up, and will undoubtedly look at other possibilities, with or without Clarkson. Stay tuned.

Thanks for the tip, Derek!

[Source: The Sun via PistonHeads]

Clarkson nixes U.S. Top Gear originally appeared on Autoblog on Tue, 24 Jul 2007 15:32:00 EST. Please see our terms for use of feeds.

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Spring 2008: Arrival date for BMW 1-Series

John Neff — Wed, 18 Jul 2007 15:38:00 EST

Filed under: Car Buying, Coupe, BMW

The upcoming BMW 1-Series Coupe is one of those rare cars over which nearly every Autoblogger is drooling. It returns Bimmer to its roots of building relatively lightweight handlers, as well as lowers the cost of entry for an Ultimate Driving Machine to within the reach of the coupon clipping middle class. Thanks to the sharp eye of folks over at bmw128i.com, we now have confirmation from BMW via it's North American website that the 1-Series will be available to purchase in the U.S. by Spring 2008. The news comes via a flash video that plays when you visit BMW NA's website, and it's crystal clear in meaning: "Introducing the all-new BMW 1-Series. Year One of the 1 begins Spring 2008." This means that BMW dealers will likely be ready to take orders for the 1 by the end of the year. Instead of celebrating the Vernal Equinox next year with a traditional dance around the fire, you just may find us in line at your local BMW dealer.

[Source: bmw128i.com via Jalopnik]

Gallery: BMW 1-Series Coupe

Spring 2008: Arrival date for BMW 1-Series originally appeared on Autoblog on Wed, 18 Jul 2007 15:38:00 EST. Please see our terms for use of feeds.

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Volvo says it won't be building in North America

Dan Roth — Wed, 27 Jun 2007 17:34:00 EST

Filed under: Etc., Plants/Manufacturing, Volvo

There have been periodic rumors of a United States assembly plant for Volvo cars since at least the early 1980s. There was a North American construction arm of the Swedish carmaker, situated in Nova Scotia, but that plant has been shuttered for several years now. Volvo CEO Fredrik Arp has told Automotive News that an American plant would take an unacceptably long time to pay for itself, according to the automaker's studies. A weak dollar doesn't help the economic argument for a plant in the States, either. Volvo can currently handle its goal of 600,000 units worldwide, which they have yet to meet. Current plant capacity is good for 590,000 vehicles, so it goes building any new plants, Volvo would be wise to fully utilize its current capacity. The automaker is looking to markets other than North America to drive growth in the coming years -- China, India and Russia all look to be emerging soon as major Volvo buyers.

Arp would not be pressed regarding rumors of Volvo being put up for sale by parent Ford, but he did comment that the historically green-minded automaker has its finger on the pulse of viable alternative powertrains for the US market. Diesels and alternative fuels are big in Europe, but Volvo's not going to just forge ahead in the US with those technologies. Rather, what they intend to do is watch and see what green platform takes off here, and follow on quickly with their own version of whatever that turns out to be. Volvo is too much of a niche player in the US market to risk developing something that may be met with a yawn by the US consumer. Up for sale or not, it looks like Gothenburg's Rollers have their eyes on the brass ring.

[Source: Automotive News - sub req]

http://www.autonews.com/apps/pbcs.dll/article?AID=/20070626/ANE01/70626009/1116/rss03&rssfeed=rss03

Volvo says it won't be building in North America originally appeared on Autoblog on Wed, 27 Jun 2007 17:34:00 EST. Please see our terms for use of feeds.

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Alfa Romeo gets Maserati backing to come to the US

Jonathon Ramsey — Mon, 07 May 2007 07:35:00 EST

Filed under: Maserati

In a move that makes sense, instead of Alfa Romeo needing to develop its own dealer network, Maserati dealers will be expected to sell Alfas in a couple years' time.

Fiat CEO Sergio Marchionne said Maserati will be in the black again this year, after 17 years in a red sea. With its new gearbox and new GranTurismo, Maserati is planning to more than double its sales by 2011, moving 12,000 cars per year. Analysts, though, put that number at 8,000 max. Regardless, more Maseratis on the road means more clout for the marque, and Alfa could take advantage of the momentum to help its own case. According to an analyst, Alfa sales are expected to reach 8,000 by 2015. First up will probably be the 8C Competizione perhaps in 2008, then the 159 sedan and Brera coupe in 2009.

[Source: Detroit News]

Alfa Romeo gets Maserati backing to come to the US originally appeared on Autoblog on Mon, 07 May 2007 07:35:00 EST. Please see our terms for use of feeds.

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MG may yet find a home in Oklahoma

Dan Roth — Fri, 30 Mar 2007 08:53:00 EST

Filed under: China, Plants/Manufacturing

The first Modern Gentleman has come off Nanjing's reconstituted assembly line in China, but we're getting conflicting reports about whether or not a rumored factory in Oklahoma will happen. Nanjing has been offered $20 million in incentives to come and build the MG TF where the wind comes sweepin' down the plain, but according to a recent report, the Ardmore, OK plant plans have been scrapped.

Nanjing hasn't made any formal response, but it appears that officials in Oklahoma are still working toward bringing the Chinese carmaker stateside and the Ardmore Development Authority is continuing to make efforts to bring the plant, as well as a parts distribution center, to Oklahoma.

Nanjing is China's oldest automaker, so it's not like they're neophytes; but, there's likely a learning curve about our emissions and safety regulations. Judging from how quickly the MG tooling was up and running after being shipped to China, we have no doubt that there will be a determined Chinese automaker offering cars for sale in the US in the near future.

Work continues on developing the airport and corralling the details among companies on three different continents, and supposedly they're currently completing due diligence before finalizing agreements. At least that's the rhetoric. We'll see how it all shakes out.

Thanks for the tip, Luis!

[Source: KOTV]

MG may yet find a home in Oklahoma originally appeared on Autoblog on Fri, 30 Mar 2007 08:53:00 EST. Please see our terms for use of feeds.

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Bombastic: US troops destroyed Insane Hussein's LM002

Noah Joseph — Tue, 20 Mar 2007 16:02:00 EST

Filed under: SUV, Etc., Government/Legal, Supercars, Lamborghini

American forces in Iraq have finally killed Saddam Hussein's son's...car. While his megalomaniacal father garnered the lion's share of notoriety, Saddam's cruel depravity was exceeded by his eldest son's, the erstwhile heir apparent to the Iraqi presidency who was known for murdering people he didn't like at parties and torturing Olympic athletes. It only makes sense that a monster of a person should have driven a monster of an automobile: the Lamborghini LM002.

For those unacquainted with the LM002, picture the offspring of a one-night-stand between an exotic Italian supercar and a tank, and you've got an approximate idea. The truck is known to guzzle gas like a fratboy funnels beer, but that posed little concern for a family with all the oil in the world but no one to sell it to.

According to reports, Uday's "Rambo Lambo", already on its last leg and limping to the grave, was recovered by American soldiers who, apparently failing to identify the significance of the vehicle, used it to test explosives. And so, like the fate of its owner, Uday's Lamborghini was no more. The world may be a better place without the Husseins, but we'll mourn the truck.

[Source: Lamborghini Registry via Jalopnik]

Bombastic: US troops destroyed Insane Hussein's LM002 originally appeared on Autoblog on Tue, 20 Mar 2007 16:02:00 EST. Please see our terms for use of feeds.

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China Reversal: Tiger Truck opens plant in Texas

Dan Roth — Thu, 15 Mar 2007 13:33:00 EST

Filed under: Truck, China, Plants/Manufacturing

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]

Continue reading China Reversal: Tiger Truck opens plant in Texas

China Reversal: Tiger Truck opens plant in Texas originally appeared on Autoblog on Thu, 15 Mar 2007 13:33:00 EST. Please see our terms for use of feeds.

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Honda plant confirmed in Alabama

Dan Roth — Fri, 09 Feb 2007 09:05:00 EST

Filed under: Plants/Manufacturing, Honda

Honda subsidiary Yutaka Technologies began construction on a transmission component factory in Cullman, Alabama in January. The plant will employ about 200 people and is part of a larger strategy to build several component-supplier factories to feed Honda's US manufacturing plants. There's new facilities going up in Georgia and Ohio in addition to the Alabama plant. The Cullman plant will start supplying torque converters and exhaust components to Honda's Lincoln, Alabama assembly plant in November. The Lincoln plant builds the Odyssey minivan and Pilot SUV, and Honda is shifting more Pilot production to the Alabama plant from its Ontario facility.

While many think of Honda as a foreign brand, their cars are often no more foreign than the domestics. Building US-market cars in this country has been a winning proposition for Honda and the other foreign marques that have opened facilities here. Keeping US workers employed takes some of the teeth out of the "Buy American" argument. Also, astronomical shipping costs (we wouldn't want to get the bill to insure one of those shipments, let alone the actual freight cost) and import tariffs are also dodged by building cars here with parts sourced domestically. Honda has been building automobiles in the US for 25 years and the company employs over 30,000 people at their 12 manufacturing US facilities, which build everything from cars to ATVs and watercraft.

[Source: Honda]

Honda plant confirmed in Alabama originally appeared on Autoblog on Fri, 09 Feb 2007 09:05:00 EST. Please see our terms for use of feeds.

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Michelin lands $1.7b Pentagon contract

Noah Joseph — Fri, 02 Feb 2007 08:04:00 EST

Filed under: Government/Legal, Earnings/Financials

The French military may not be fighting in Iraq, but their tires are: Michelin just landed an exclusive $1.7 billion contract with the US Department of Defense to supply the American military behemoth with tires. For the next ten years (at least), every vehicle in the US Army, Navy, Air Force and Marine Corps deployed around the world will be shod in Michelin rubber.

This isn't the first Pentagon contract Michelin has won, either. The French tire company previously won a contract worth $700 million to supply the tires for all US warplanes. In order to meet the enormous supply demands of the US military, Michelin has invested a reported $16 million. For the sake of our brave boys and girls serving overseas, let's hope the French tires don't throw up their arms and surrender at the first time of trouble. (No whitewalls, please.)

[Source: F1i.com]

Michelin lands $1.7b Pentagon contract originally appeared on Autoblog on Fri, 02 Feb 2007 08:04:00 EST. Please see our terms for use of feeds.

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