Volvo: We’re Going Four-Cylinder, 24/7
Volvo has traditionally been known as the car company with boxy-but-safe sedans and wagons. If things go as Volvo management plans, they may soon be known as the “safe” green car manufacturer, since the company is taking major steps towards a zero emissions future.
First up is a switch to four-cylinder diesel and gasoline engines throughout their lineup. Volvo killed off the V-8 in 2010, but emphasized the use of five- and six-cylinder engines at a time when other automakers were paring back to four-cylinders. Volvo’s new Volvo Environmental Architecture (VEA) strategy is to use four-cylinder common rail diesel and gasoline direct injection engines throughout their product line, a move that Volvo insists will continue to meet customer expectations of the brand.
In fact, Volvo is claiming that the move to a more modern four-cylinder engine will, in some cases, increase both performance and fuel economy. The new engines will share as many common parts as possible, a move that Volvo expects to reduce engine-part inventory by as much as 60 percent. The new drivetrains will be lighter, too, in some cases up to 198 pounds lighter than current six-cylinder drivetrains. Fuel economy will grow by as much as 35 percent.
The common-parts idea will be carried over to Volvo’s platforms as well, thanks to something Volvo is calling Scalable Platform Architecture (SPA). By using a single, modular platform to build everything from the C30 hatchback up to the S80 sedan, a single production line can be used to build every vehicle in Volvo’s lineup. The SPA architecture will allow future vehicles to be as much as 330 pounds lighter than their current equivalents, with improved weight distribution and the possibility of introducing electrification into the Volvo drivetrain.
Expect to see both flywheel drive (similar to the Kinetic Energy Recovery System technology used by F1 teams) and more conventional hybrid or electric designs from Volvo in the coming years.
To highlight the new direction Volvo is taking, the company will launch a new concept based on the SPA architecture at next week’s Frankfurt Auto Show. We’ll bring you more details as part of our complete Frankfurt coverage.
This story originally appeared at The Car Connection
Texas Raises Speed Limit To 85, Becomes The New Montana
When the 55 mile per hour national speed limit was repealed in 1987, states were once again free to establish speed limits based on safety standards, not just fuel economy. States in the overpopulated and traffic-choked Northeast set a fairly conservative limit of 65 mph on interstate highways, while less population-dense Western states gave drivers a bit more free reign.Montana, for example, initially set their interstate speed limit at “reasonable and prudent.” This turned out to be a bad great idea, since the definition of “reasonable and prudent” varied greatly from driver to driver. Until it was changed back to 75 mph on interstate highways, Montana probably had more tourists driving Ferraris, Lamborghinis and Corvettes than any other state in the nation.
Today, Utah and portions of Texas have the highest interstate speed limits, capped at 80 mph. That will soon change, since Texas just approved a new maximum speed limit of 85 miles per hour. It’s not all good news, however, since the new speed limit doesn’t go into effect right away and will only apply to certain (desolate) portions of interstate highway in the Lone Star State.
The first step before Texas becomes the new Montana is a review of interstate highways, to determine which ones can have speed limits raised from 70 to 75 mph. Only after this is finished will the state review highways for an increase from 80 to 85 mph, and chances are good that only stretches of Interstate 10 in West Texas will get the nod. The review, and the resulting changes, must be posted by 2013.
[The Consumerist]
This story originally appeared at The Car Connection
"Maximum" Bob Lutz Returns To GM As Advisor
General Motors has announced that Bob Lutz, former Vice Chairman, will return to GM as a consultant. Lutz will be available to executives and senior leadership on a part-time basis, effective immediately.Lutz has a lengthy history in the automotive industry, including time at GM (from 1963 through 1971, and again from 2001 to 2010), BMW, Ford, Chrysler and industry supplier Exide. He’s contributed to the development of the Dodge Viper and Chrysler’s LH series cars, the Ford Explorer and the reborn Pontiac GTO (really a badge-engineered Holden Monaro). Lutz has also been behind the development of more recent efforts, including the Saturn Sky/Pontiac Solstice, the Cadillac CTS, the new Camaro and the restyled 2010 Cadillac SRX.
Though most associated with performance cars, Lutz also backed the development of fuel-efficient cars, including the extended-range EV Chevrolet Volt, telling Newsweek in 2008 that, “the electrification of the automobile is inevitable.”
Although Lutz retired from GM in 2010, he has been providing informal consulting services to the automaker since. GM’s announcement doesn’t change much, but it does establish a more formal relationship between the two parties.
[General Motors]
This story originally appeared at The Car Connection
August 2011 Car Sales: Another Small, Disappointing Rebound
With the numbers rolling in from major automakers today, it's difficult to not see progress in August 2011's car sales figures versus those posted in July--but still, the overall trend is slow, slow, slow.
According to market analysts at J.D. Power, the seasonally adjusted seling rate (SAAR) for August 2011 totaled 9.9 million retail units, a slight improvement over figures for July, but well off the 11-million-unit rate seen in February.
When fleet sales are factored in, the 12.1-million-unit SAAR actually fell a fraction of a percent versus July.
Economic frustration continues to keep car shoppers away from dealerships, Power's director of global forecasting Jeff Schuster says. “There is little question that a strong level of pent-up demand exists, but economic and financial uncertainty is keeping it from being released.”
For the year, Power expects a total of 10.2 million retail vehicle sales, and 12.6 million units including fleet sales.
Which brands posted increases on the month, and which have more warning signs to read as economic recovery fails to gain steam? The results by automaker, with some still to come:
General Motors: GM (NYSE: GM) posted August sales of 218,479 vehicles, for an 18-percent boost. Chevrolet's winners included the Cruze and Equinox, while GMC's Terrain was up 88 percent. Buick had its 23rd consecutive sales increase, year over year, and the Regal posted sales double those of last August.
Ford: Ford (NYSE: F) sales of 175,220 were an increase of 11 percent over August 2010. Ford-brand sales rose 16 percent, while Lincoln pulled out of last month's swoon for a 25-percent increase. The Explorer continued its sales rehabilitation, with numbers up 300 percent from August 2010.
Chrysler: Chrysler sales of 130,119 units translated into a 31-percent increase over last year. Jeep sales were up 58 percent; Fiat had its best sales month yet. Big movers included the Jeep Wrangler and Grand Cherokee, and the Dodge Durango.
Toyota / Lexus: Toyota sales fell 16.1 percent, on total volume of 129,483 vehicles. The Toyota division was down 16.9 percent, while Lexus sales dropped 10.6 percent.
Honda / Acura: Honda says its August 2011 sales results still were affected by the March earthquake in Japan. The company sold 73,267 Honda-brand cars, off 21.2 percent from a year ago, and Acura's sales of 9,054 units were a drop of 24.5 percent. Total sales of 82,321 vehicles represented a decrease of 27.2 percent.
Nissan / Infiniti: Nissan said its August 2011 sales totaled 91,541 units, for a 19.2-percent increase. Infiniti's numbers actually were down 4.3 percent, but Nissan-branded cars sold 22.4 percent better than in August 2010. The Leaf electric car topped 1,362 sales, and the Rogue had its best month ever, while the mid-size Altima lineup saw sales rise almost 25 percent over a year ago.
Hyundai: Hyundai CEO John Krafcik says, via Twitter: "August sales? Up 9% over last year to 58,505."
Kia: Kia had its best August ever, with total sales of 41,188 vehicles, for a 26.9-percent increase.
Volkswagen: VW continued its sales streak with a 10.4-percent climb; it's up almost 21 percent on the year. Jetta sales rose 55.5 percent, while the Touareg climbed 140 percent. Diesels continue to account for about a quarter of all Volkswagen sales in the U.S.
BMW / MINI: BMW says combined sales of BMW and MINI vehicles in August fell a slight 0.2 percent to 23,924 units. Sales of BMW-brand vehicles were up 6.5 percent to 20,815 units; MINI was down 29.7 percent to 3,109 units. For the year, the combined business is up 14.6 percent.
Mercedes-Benz: Mercedes-Benz sold 20,728 vehicles in August, an increase of 5.4 percent from a year ago. On the year, Benz is up 10.5 percent.
Subaru: Subaru's long streak of sales wins was interrupted again by a 6.3-percent drop in August, with total vehicle sales of 20,837 units. The automaker is affected by some supply problems due to the March earthquake in Japan. On the year, the brand is up 1.4 percent.Mazda: Mazda says it sold 22,632 vehicles in August 2011, an increase of 14.7 percent over a year ago. On the year, the Japanese automaker is up 6.1 percent.
Audi: Audi reported sales of 10,201 vehicles, a record for the month and Audi's eighth straight month of record sales. For the year, the brand is up 15 percent, with 75,256 sales.Mitsubishi: Not yet reported.
Volvo: Volvo's strong sales year continued in August, as the automaker reported sales of 5,215 vehicles in the U.S, up 17.4 percent over August 2010. On the year, Volvo is up 27.4 percent.
Porsche: The sportscar, sedan and SUV maker reported August sales of 2,184 vehicles, a 7-percent increase over last August's 2,032 vehicles.Jaguar/Land Rover: Sales of Jaguar vehicles fell to 810 units in August, a 43-percent drop attributed to model changeover. Land Rover sales of 2,807 vehicles represented a 10-percent increase over last August. On the year, the two brands are up 9 percent over 2010, with Land Rover up 16 percent and Jaguar down 7 percent.
Suzuki: For the 11th month in a row, Suzuki sales were up, this time 32 percent over August 2010.
Saab: Not yet reported.
This story originally appeared at The Car Connection
Saab Posts Significant First Half Loss, Seeks Loan To Avoid Bankruptcy
Saab’s financials from the first six months of 2011 are in, and the numbers aren’t good. Swedish Automobile (Swan), parent to both Saab and Spyker, has reported a loss of $288 million in the first half, with a loss of $175 million occurring in the second quarter alone.
Sales for the first half of the year totaled $513 million, but there was a huge decline between the first and second quarters. In Q1, Swan posted sales of $367 million, but by Q2 that number had dropped to just $146 million. Consumer confidence was likely the driving force in the decline: Saab ceased production at their Trollhattan plant in April, after suppliers cut off component deliveries due to unpaid invoices.
Victor Muller, Saab CEO, announced that payment of salaries for Saab employees would again be delayed, and gave his sincere apologies to those affected. If there’s a ray of hope on the horizon, it’s this: Saab is reportedly close to securing a loan (from an unnamed European bank) worth $157 million, which may allow them to pay salaries and suppliers, averting the possibility of bankruptcy. It should even allow Saab to resume production in the coming weeks.
Longer term, Saab has commitments worth an estimated $350 million from Chinese partners Pang Da and Youngman Automotive Group. Both deals require approval from the Chinese government, which has been reluctant to sign off on partnerships between Chinese companies and foreign automakers.
[Inside Saab]
This story originally appeared at The Car Connection
