Author: yoann besnard

BMW to eliminate 8,000 jobs and put pressure on suppliers

With the goal to increase its profit margin to between 8% and 10% by 2012, BMW double its efforts to move up from a current level of 5.5%. First it put pressure on suppliers and secondly plans a big layoff.
BMW has decided to cut cost and will de so by pressuring its suppliers. This is a surprising move for them as the company has always been known for its commitment to quality over price and favouring long-term contracts.
But the most astonishing news is the company’s plan to eliminate 8,000 jobs, that’s to say about 8% of its global workforce that currently stands at 108,000 employees.
Is BMW in trouble? No, the company still makes profit, but the 2007 figures won’t be as good as the previous year. Indeed BMW suffers from higher cost in product development. The Volkswagen plan and Audi will to sell 1.5 million vehicles by 2015 oblige competitors to expand their own range. Added to new stricter regulations that target premium car makers, BMW is facing higher costs than expected to develop new models. This strategic move could also go further and includes for the first time a collaboration with another car maker. BMW has already been co-operated with Peugeot for the MINI engine range but a collaboration with BMW models can’t be excluded in the future.
December 24, 2007
Dodge has unveiled Journey crossover specifications

The new Journey is Chrysler’s serious attempt to enter the crossover segment in the US and in the Europe where it will go on sale next year. Unfortunately, the crossover segment is still in its infancy so it will also compete with the small SUVs such as the Volkswagen Tiguan or the Mitsubishi Outlander with which it shares its underpinnings.

Indeed, the Journey model uses the global D platform co-developed by Chrysler and Mitsubishi. This platform is also used for Mitsu Lancer, Chrysler Sebring, Dodge Avenger, Caliber, Jeep Compass et Patriot. If it alo shares powertrains and suspension, it has unique exterior and interior styling on the other hand. It features the corporate grille and the bold design shared by other company’s models.

Featuring a longer wheelbase than the Avenger saloon at 2890 mm, the Journey is roomy enough for five people and can offer two more seats as an option. The second row can move forward and rearward a total of 4.7 inches to give more leg room or provide more cargo room behind the seats. The second row also integrates integrated child booster seats and features a 60/40 fold-flat capacity. The front passenger seat can old flat as a option. The available third-row seat can be set up easily with the turn of a single lever on the side of the seat back, the seat cushions easily fold upward and the seat slides forward. It comes with 50/50-split-folding seats.

The interior styling can’t be mistaken for a European interior. Indeed, the Journey features a symmetrical dashboard, large buttons and poor quality at first glance. The Journey features varied storage facilities. Located in the floor behind the front-row seats are two standard in-floor storage bins that are designed to hold 12 cans. On five-passenger models, a tri-fold load floor is located behind the second-row seat and provides a hidden storage compartment for added utility while a rear in-floor hidden storage bin located behind the available third-row seat is standard on 5+2-passenger vehicles.

The Journey comes with a choice of three petrol engines on the American market. The entry level is powered by a 170bhp 2.4 litre 4 cylinder unit, followed by a 183bhp 2.7-litre V6 engine while the top of the range gets a 232bhp 3.5-litre V6 engine. In Europe the main engine will likely be the 138bhp 2.0-litre TDI provided by Volkswagen and already featured in the Avenger saloon. The 2.4-litre and 2.7-litre units are hooked up to a four speed automatic gearbox as standard while the 3.5-litre is coupled with a six speed automatic gearbox. In Europe, we will get a new dual-clutch transmission developed in partnership with Getrag. This is the first time such a transmission has been offered on a Dodge vehicle. , the new transaxle is equipped with two independent lay-shaft style gear sets with separate clutches, that use manual transaxle-based components.

On the American market, the entry-level SE starts at $19,985/£10,070, with the up-level SXT stickering for $22,985/£11,580. The all-wheel drive architecture increases the SXT’s price to $25,530/£12,870. The range-topping R/T has a price tag of $26,545/£13,380 for the front-wheel drive and $28,295/£14,260 for the four-wheel drive.
December 24, 2007
Pininfarina to build electric cars for Bollore

The troubled Pininfarina has signed a €150 million/£108 million contract with the French company Bollore to develop and build the future electric the French company plans to launch in the future.
Pininfarina will start building the car by 2009 and plans to produce 15,000 cars annually. At this early stage, exact spec remain a secret although the main car’s characteristics are already known. The Bollore car will be a four-seater which will use lithium-metal-polymer battery packs developed by the company. It is expected to have an autonomy of 155 miles. The batteries will a lifespan of 125,000 miles and will take 5 hours to charge fully. It will also offer a 5-minutes charge mode which will allow a 16 mile autonomy.
Bolloré had unveiled the Bolloré Blue Car prototype (pictured) at the 2006 Geneva Motor Show.
Secrecy surrounds the price tag although Bollore will rent the car for £340 per month. The company plans to release the car in Europe, US and Japan.
December 23, 2007
Toyota has built its first Camry in Russia

Toyota has held a ceremony for the first Camry built at Toyota Motor Manufacturing Russia in St. Petersburg. It is the first step of an ambitious plan from Toyota to conquer the booming Russian market.
With around 185 cars for 1,000 people, the Russian is quickli catching up with European countries where the corresponding figure is between 400 and 600, and Toyota is determined to have a share of the large pie. The plant is starting at 20,000 units a year and is intended to reach 50,000 vehicles within two years. But Toyota also plans a second plant if there a strong demand for its models. This second plant would have a 300,000 vehicles production capacity.
Toyota is joining the list of foreign automakers to build cars in Russia. Hyundai will also build a factory there by 2009. On of the fastest growing market in the world, Russia is also a minefield for foreign car makers. First, there is a lack of highly-skilled personnel and like in China, authorities might favour protectionism to promote domestic car makers.
December 23, 2007
No markup for American dealers on the GT-R

With only 1,500 GT-R reserved for the American market every year and the frenzy that hits the Japanese market, some dealers planned to markup the GT-R as high as $15,000 per vehicle but Nissan has taken steps to ensure that doesn’t happen in order to offer a first class service to potential Porsche customers.
Indeed, each dealer which wants to sell the GT-R will have to be certified by the company. The certification will be based on the level of customer service and the implicit agreement not to markup the GT-R. Also all customer enquiries or complaints about the supercar won’t be routed to dealerships as usual but to Nissan regional vice presidents to make sure that customers won’t be tricked in any way by a dealer. One can sat that Nissan trusts its dealerships.
Will those measures be enough to prevent speculation? Nothing is sure as the Japanese market went frenzy despite having a bigger allowance and and being smaller than the US. And what will happen to Europe? Will we see the return of grey import like in the ’90s?
December 23, 2007
Spyshots: Renault Twingo RS

The current Renault Twingo range is topped by the GT version which is powered by a 99bhp 1.2-litr petrol engine, but Renault engineers are working hard to finish the future RS version set to compete with the Fiat 500 Abarth and the Suzuki Swift Sport. The car has been spotted in Italy.
Like the small Fiat, the Twingo RS version will feature enlarged wheel arches and adopt 17’wheels in an attempt to make the model more appealing to look at. Renault hopes these changes will be enough to fight with the eagerly-awaited Fiat Abarth.
The power will come from a 1.6-litre petrol engine associated with a five-speed manual gearbox. Secrecy surrounds the exact spec of the small car although it is rumoured that the engine will pump out roughly 140bhp. It would be 15 bhp less than the future Fiat 500 Abarth, but 15bhp more than the Suzuki Swift Sport. With a weight limited to 1050kg, the Twingo RS will be lighter than the two other cars and will offer a weight/power ratio similar to the former Clio 16s’ sold in the ’90s.
This is good news for Renault but with the Fiat 500 as a competitor, the Twingo appears to be too serious, almost dull, and while the RS promises to be sexier than the normal version, the Fiat Abarth has already appeared to be ten times more appealing to look at. The die is cast.
Click here to see all the pictures
December 23, 2007
GM will recall more than 300,000 cars worldwide

GM has announced it will recall more than 300,000 cars worldwide to fix a faulty seal on the rear axle pinion. The device in question could leak fluid causing the wheels to seize and lock which would lead to loss of control of the vehicle.
A total of 275,936 vehicles will be recalled in the US and roughly 38,000 in Canada, Mexico, the Middle East and Asia. The cars concerned are the 2006-2007 model year Pontiac Solstice, 2007 Saturn Sky, and the 2005-2007 model year Cadillac CTS, CTS-V and STS, STS-V saloons and 2005-2007 model year Cadillac SRX crossovers.
December 22, 2007
Mini Crossman to share 1-series components

In an attempt to shorten the development cycle and cut cost, BMW has decided that the future Mini Crossman will share components with the upcoming BMW X1 model, which means the Mini SUV will get some 1-series components.
Due to be unveiled in 2010, the Crossman won’t be built by Mini as its production capacity can’t even satisfy the current demand but by Magna in Austria. Exact spec of the vehicle remains unknown although it likely be powered by current engine family, except perhaps by the diesel unit which might not powerful enough to power a heavier vehicle than the current Mini. Like the small hatchback, the Crossman won’t be cheap and it is rumoured that it will start at roughly £16,000.
December 22, 2007
Maruti to become Suzuki’s major hub

Main shareholder of Maruti with a 54.2% stake, Suzuki is determined to make its Indian unit a major production hub to keep its market share in India, but also to export to other countries.
First, the company will unveil next month its low cost model, known as the A-Star model which will built at 150,000 units per year from October 2008. The small hatchback will be exported to Europe first. Secondly it will launch several new models in the coming years. But the most interesting recent move has been the nomination of a new managing director. Indeed, Suzuki replaced the Indian managing director Jagdish Khattar by a Japanese man Shinzo Nakanishi which will keep a close eye on the new subsidiary.
Maruti will likely become one of the strongest Suzuki’s asset in the future as Maruti sold more cars in India than its parent in Japan during the first half of the fiscal year. With a gloomy Japanese market, Suzuki national sales won’t likely be better in the future so Maruti will become vital and is expected to represent a third of the 3 million cars built by Suzuki by 2010.
December 22, 2007
Mazda Demio Chiara special edition

In Japan, limited edition versions are more valued than normal versions, so it’s normal to see Mazda releasing the first special edition based on the new Demio. Called Chiara, it features an exclusive Golden Red Mica, a vivid shade of red sprinkled with gold flakes, and an unusual multi-stripes pattern cover seat.

This special edition is powered by either the 1.3-litre Miller cycle engine associated with a CVT gearbox or the 1.3-litre petrol engine with four-speed automatic transmission and four-wheel drive system. On the inside, along the multi-stripes seats, the Chiara edition features silver bezels on the steering wheel, a keyless entry system, auto light system, rain sensing front wipers, and water-repellent coating.
It is available in Japan at a price tag of ¥1,410,000/£6,200 for the front-wheel drive model and ¥1,550,000/£6,850 for the all-wheel drive model.
December 22, 2007