Posts Tagged ‘Million Cars’

Automakers to Follow Through With Production Increases, Err On Cautious Side

Friday, July 16th, 2010

Automakers to Follow Through With Production Increases, Err On Cautious Side
2011 Honda Odyssey front three quarters

Now over halfway through the purported recovery year, the automotive industry is expected to follow through with production increases planned for the third quarter. Although opinions on the matter differ, most automakers are projecting steady sales for the rest of the year even after the month of June dropped off the May total.

2011 Ford Fiesta side

Leading off is General Motors, which is expected to crank out 695,000 vehicles during the summer for a 32-percent increase over last year, according to IHS Automotive. Crosstown rival Ford will shore up demand with a 22-percent bump to 613,000 units in anticipation of Fiesta sales volume, and fellow domestic marque Chrysler will raise production 25 percent to 351,000 vehicles, although Pentastar sales are being propped up by fleet and corporate accounts.

On the import side, the top three Japanese automakers with North American facilities will put out a shade under 900,000 vehicles in the third quarter. Nissan will be on the lighter end with 218,000, which is 12-percent higher than last year. Honda is expected to gain 20 percent to 328,000 units, partially due to the new 2011 Odyssey. Toyota is forecasted to produce 349,000, down one percent, bringing the Japanese trio’s grand total to 895,000 vehicles. Toyota’s scant production decline is mainly attributed to the closure of the NUMMI plant in Fremont, California.

In addition to the six aforementioned manufacturers, the remaining companies are tabbed to jump production 48 percent to 335,000 vehicles, primarily on the back of Kia’s new plant in West Point, Georgia, responsible for the 2011 Sorento. In all, around 2.89 million cars, trucks, and SUVs will hop off lines across North America over the next three months, nearly 23 percent higher than the glum scenario last year.

We may not be seeing a significant resurgence in sales, but automakers are cautiously optimistic for the remainder of the year. The market’s overall vehicle supply is within a favorable target range, indicating supply is mostly aligned with demand and dealers won’t be obliged to order excessive stock while blowing out older inventory. Doubts linger, however, and some commentators believe June is where sales plateau or even start to slide, but only the future will tell the true tale.

As the manufacturers prepare to hold the line, do you think new offerings including the Fiesta and Odyssey justify higher production at this point in time? Are we at a sales stalemate? Let us know below.

Source: Automotive News (Subscription required)

Not in America: Audi Scraps Idea of Producing Vehicles in U.S.

Tuesday, June 29th, 2010
Not in America: Audi Scraps Idea of Producing Vehicles in U.S.
audi-a4-production

Volkswagen’s already dedicating itself to building a bespoke model for North America in an all-new plant located in the U.S. Audi, on the other hand, isn’t so certain that’s a good idea.

2010-audi-s4-front-three-quarter

Although the company once considered building cars for North America in North America, currency fluctuations, triggered in part by Greek’s ongoing debt crisis, have made such an idea fiscally unsound.

“U.S. production doesn’t pay off at the current dollar exchange rate,” Michael Dick, Audi’s development chief, recently told Automotive News.

Perhaps it’s just as well. Sources within the company suggest Audi can’t simply share VW’s brand-spanking-new factory in Chattanooga, Tennessee, because Audi and VW are moving away from shared architectures. Regardless, this shouldn’t hamper Audi’s expansion goals, as CEO Ruper Stadler maintains the brand doesn’t need a U.S. assembly base to help it produce 1.5 million cars annually by 2015.

Audi may not need a U.S.-exclusive car to reach that goal, either. Although Volkswagen is keen on the idea of designing a midsize sedan (the NMS) exclusively for North American consumers, Audi’s top brass doesn’t see the value in such a move. Johan de Nysschen, president of Audi of America, says no such vehicle is in the works. Dick echoes his comments, and also dismisses the idea of shipping European-made powertrain components to a U.S. assembly plant for installation.

“The localization is too small,” Dick told AN, “and you haven’t accomplished anything.”

Source: Automotive News (Subscription required)

1200-HP Bugatti Veyron SuperSport Rumored to be Revealed This Year

Friday, June 18th, 2010
1200-HP Bugatti Veyron SuperSport Rumored to be Revealed This Year
2010-bugatti-veyron-soleil-de-nuit-engine.jpg

You’ve heard this one before, but Cars U.K. is reporting that a lighter and faster variant of the Bugatti Veyron — the SuperSport — is on the way. But keep a grain of salt handy, as the only confirmation comes from an anonymous buyer who claimed to be ready to transfer roughly $500,000 as a deposit to Bugatti.

2010-bugatti-veyron-soleil-de-nuit-front-three-quarters.jpg

A request for confirmation to Bugatti for was not answered at the time of this writing.

Reportedly, that $500,000 will only cover one-fourth of SuperSport, which has a price tag rumored to be just over $2 million. Cars U.K. reports that the Veyron’s output will jump to 1200 horsepower and that the car will be 661 pounds lighter due to extensive use of carbon fiber, which is curious considering the standard car (pictured) already has a carbon-fiber monocoque and body panels.

Nevertheless, Cars U.K. says only 30 SuperSports will be made that the company plans to reveal the car during Pebble Beach.

Source: Cars U.K.

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