Yamaha R15 launched in India for a price of Rs 1.07 lakhs

Yamaha Motors has finally launched the new Yamaha R15 motorcycle in India for a price of Rs 1.07 lakhs (Ex-Showroom, New Delhi). Christened as R15 Version 2.0, the new motorcycle from Yamaha is available for booking across all Yamaha outlets in India.

Yamaha fans in India have been waiting for this upgrade for quite some time now. As predicted, Yamaha has installed new cosmetics which make the new R15 much attractive than the outgoing variant. Along with cosmetic changes, Yamaha has also managed to upgrade handling and performance of their new R15 sportbike.

Technical specs of the new Yamaha R15 Version 2.0 include, a single cylinder FI engine with a displacement capacity of 149.8 cc generating maximum power of 17 PS @ 8,500 rpm and maximum torque of 15 Nm @ 7,500 rpm.

Dimensions of the new Yamaha R15 are 1970 mm X 670 mm X 1070 mm (L X W X H). To tackle the bumpy Indian roads, Yamaha has installed hydraulic damping telescopic suspensions on the front while the rear features monoshock coil spring suspension. As seen in the earlier variant, this one too has front and rear disc brakes.

Upgraded features of the New Yamaha R15 are, new sportsbike like split seats, new front faring, black color coating on the engine, new black alloys, better aerodynamics, new black color exhaust, and new tire hugger for both front and rear wheels.

Tata Motors to build Nano car factory in Indonesia in 2013

Tata Motors is considering building a manufacturing unit in Indonesia which will be used to manufacture the famous Tata Nano model. According to Indian motoring sources, the plan is under “constant vigilance” by the various study teams. The report cited a Tata spokesperson as saying “Yes, we will be establishing a manufacturing unit in Jakarta. We will be announcing this piece of news shortly, but till then it is all under wraps.”

Indiandrives.com said the plan is basically to get a foothold in the large, as yet untapped markets, beginning with Indonesia. The next step is thought to include Malaysia, Philippines and Thailand.

If the reports are right, the decision will have been influenced by surging sales figures of light vehicles which expanded to 2.23 million units up 36 per cent, according to an Asian Automotive market report by JD Power and Associates in January this year.

This plan is expected to take “a definite shape” in the 2013 financial year. Once they establish production of Tata Nano, the company is then likely to start manufacturing the Tata Ace side by side. It is expected that this manufacturing unit will be capable of generating 50,000 units per year. Supplier are said to have already given quotations.

Currently, the company is planning to output between 12,000 and 15000 Tato Nano model a month in its Sanand, Gujarat plant from March 2011 onwards, according to Indiandrives.com.

Source: tyrepress.com

New auto sales drop in December

Sales of new automobiles dropped in December, as the truck-buying spree of the previous month lost momentum, Statistics Canada reported.

Sales dropped 4.8% to 128,210 units, with the sale of trucks dropping almost 7% to 69,998 units, it said. The sale of passenger cars dropped for a second month, declining 2.2% to 58,212 units.

For the whole of 2010, new motor vehicle sales jumped 6.7%, as an 18.4% gain in truck sales outweighed a 4.8% drop in car sales.

Last year was a bumper year for Canadian truck sales, accounting for 55% of all vehicles sold. It was the first time since records began in 1946 that trucks outstripped passenger car sales.

In December, sales of North American cars declined 3.6%, while overseas-built vehicles fared better, declining just 0.3%.

Statistics Canada said preliminary data for January points to a renewed uptick in auto sales, with a gain of 3%.

In December, sales dropped across all provinces, led by Ontario.

Source: torontosun.com

Big plans for the small car

From the time when the Maruti 800 put Indian women in the driver's seat, to the more recent Nano, which put the car within common man's reach, the Indian small car segment has seen a lot of action. But nothing can hold a candle to what 2010 has in store.

To begin with, the segment is heading for a complete makeover. It's time to start thinking international as several global auto giants are planning to launch their small cars in the country next year. Japanese car maker Nissan is way ahead in the race and is reportedly planning to start trial production of its small car as early as this November. Ford Motors' Figo is slated to be launched next year. Toyota is busy setting up a small car plant for its offering that is targeted to hit the showrooms by the end of 2010. And the German Volkswagen is making India-specific alterations to its small car, Polo.

The reason all these automakers are queuing up is the potential of the Indian auto market. A little over 88,000 passenger cars were sold in September 2009 alone. "It is an untapped market. Automobile markets in the US, Europe and Japan are near stagnation. On the other hand, in India, the car and two-wheeler penetration level is at its lowest. This will result in a shift of new capacities and flow of capital to the cost-competitive Indian car market, states research firm Kredent.

Also, considering that 73% of the cars sold in India are small cars, driven by price sensitivity, pundits expect most of the new launches to be competitively priced, at around Rs 3 lakh for the base model. For instance, Ford is expected to price the Figo just below the Rs 4 lakh and Nissan's car is expected to follow suit.

Tata Motors set to launch Rs5.5-lakh 'Manza'

Tata Motors Ltd, the maker of the world's cheapest car, ' Nano', is all set to launch the cheapest luxury car - the Tata Manza. A re-designed version of the company's Indica Vista, it's been launched on 14 October, just ahead of the Diwali buying season.

The Tata Manza carries a price tag of Rs5.5 lakh to Rs7.5 lakh, depending on the model and trimmings. In order to ensure an exciting launch, the company has initiated a contest, which would give the participants an opportunity to own a Manza for a day - not self-driven, of course, but with a company provided 'chauffeur'. Lesser winners will be given gift vouchers.

The Tata Manza is touted as a 'luxurious, comfortable car' with a spacious cabin, alloy wheels and steering-mounted audio controls similar to the Vista. The dickey or 'boot' is merged in the overall shape, rather than as a standout space as in the Vista model. The car will also feature alloy wheels, adding to rider comfort.

The engine is sourced from Italy's Fiat, and will come in two options -1.4L petrol engine capable of delivering 95PS and a 1.3L multi-jet engine that pumps out 90PS, according to a company release. Projector headlamps will help differentiate it from the Vista.

The car is expected to compete with Maruti Suzuki's Swift Dzire, Ford's Ikon and Fiesta, and Mahindra Renault's Logan.

Small is not beautiful

In the last two years, sales of sports utility vehicles (SUVs) have been falling worldwide. According to media reports, the share of full-size trucks and SUVs, which used to stand at more than 18 percent of total auto sales, in US, the largest automobile market in the world, has come down to 11 percent.

The main reason behind this fall is the skyrocketing price of oil, which at point reached an all time high of $146 per barrel, last year. Later, the global economic slowdown, which put a dent on incomes of many households, also prevented potential buyers from investing on these vehicles.

Needless to say, SUVs are known as gas guzzlers. And at times when incomes fall or fossil fuel prices rise, every sensible person tends to cut down on everything that are unnecessary and luxury.

Lately, many responsible citizens worldwide are also reducing SUV consumption for another reason: the pressing green issue. These vehicles generally consume 1.5 times more fuel than normal cars, meaning they also emit more carbon dioxide, which is partly responsible for gradual destruction of our environment and ecology.

Recently, the US government itself tried to control Americans’ appetite for big SUVs by introducing a car scrappage scheme. Under this, the US government started giving car owners vouchers of $4,500 for trading in a car giving 18 miles per gallon (mpg) or less in exchange for a model that gives at least 28 mpg.

This shows the US government is encouraging Americans to embrace the concept of “small is better” -- in a way setting a precedent for other countries.

But the trend seems just the opposite in Nepal. Many nouveau riches of the country, who were earlier driving small cars like Hyundai’s Santro or Maruti’s Alto, now want to sit behind the steering wheels of Hyundai’s Tucson or KIA’s Sportage. Then there are the ultra riches who have never gotten out of the hangover of Toyota’s Prado, Mitsubishi’s Pajero and lately Land Rover’s Freelander and Range Rover series.

The irony is at a time when sales of SUVs are declining worldwide, Nepal’s SUV market grew by around 10 percent in the last fiscal year. According to auto dealers, around 1,000 units of SUVs are sold in Nepal every year.

"This is mainly because of the boom in the real estate business," Sachin Aryal, deputy general manager of Continental Trading, the authorized distributors of KIA Motors in Nepal, told myrepublica.

"If you sell a piece of land in Kathmandu or other urban areas nowadays, you become a millionaire instantly. This gives one enough money to buy a relatively expensive type of vehicle like SUVs."

Another reason, according to Aryal, is the condition of roads, which are filled with pot holes. But this seems to be just an excuse, as one definitely needs to invest some extra amount to be able to drive off comfortably on those adverse street conditions. But where is the money coming from? "It’s the real estate business once again," Aryal said.
And with the introduction of cheap but powerful SUVs like Hyundai’s Tucson, this appetite is only expected to grow.

Looks like the American dream of owning an SUV -- which has received many criticisms like “wasteful excesses” -- is soon becoming a dream of Nepali car owners.

The Campro CPS engine is finally in the Proton Satria Neo, something that many have been eagerly waiting for. The CPS is essentially a Campro engine with a few updates and a variable valve lift system called CPS as well as a variable intake manifold (VIM) system. These additions help push up power to 125 PS at 6,500rpm and 150Nm of torque at 4,500rpm, figures which are up from the standard Campro’s 110hp and 148Nm.

The car’s front and rear track has also been updated. While the Proton Satria Neo had a front and rear track of 1,470mm for both, the Satria Neo CPS H-Line has a narrower front track at 1,467mm and a wider rear track 1,483mm.

We didn’t managed to get hold of a Proton engineer to ask this question but we did manage to ask a member of Proton’s Race Rally Research (R3) team who said the change was made because Proton found the standard Neo suffered from slight oversteer, so this change was made to induce a slight understeer to improve handling. Anyway either way as a result of the large wheel arches, the wheels looks kind of lost inside them at certain angles.

As for aesthetics, as you can see there’s a new bodykit and more prominent flared wheel arches that are inspired from the old Satria GTI’s design. The alloy wheels are of the same 16 inch size as the M-Line but feature a different design that looks like a carbon copy of Advanti Racing’s MEDUSA design but without the two-tone design - perhaps it’s licensed or “inspired”. On the interior, the dashboard is now of a darker shade with red lighting on the various air conditioning controls and auto gear position indicators, has a different door trim design, some new trim around the gear shifter area, and leather seats in a black and red combination similiar to the GEN2 CPS.

The following are the prices for the new Proton Satria Neo CPS, available in only two colours which are unique to the CPS - solid white and tranquility black.
CPS is only available for the high line model, so the lite and M-line models retain the regular Campro. Unfortunately this is the old original Campro engine, without the new IAFM systems in the Saga, Persona and GEN2. The CPS system has also been tweaked with this version of the Campro engine, so the high lift cam profile activation point has been revised. However I’m not sure what is the purpose of activating it later.

VIM switches between a long intake manifold at low RPMs and a short intake manifold at higher RPMs. According to Proton, a longer intake manifold is used at low RPMs to achieve slower air flow; this promotes better mixing with fuel. The short intake manifold allows more air in faster. This is beneficial at high RPMs. The CPS system uses a switching tappet and a trilobe camshaft to switch between two different cam profiles, one with low valve lift and another with high valve lift.

Source:[cars-blogcatalog.blogspot.com]

Magna wants Chevrolet Russia as part of Opel deal

Magna International Inc.'s offer for German automaker Opel is sputtering over its request that rights to General Motor Co. Chevrolet vehicles in Russia be included in the deal.

The Canadian auto supplier is locked in a bidding duel for Opel with Belgian investment firm RHJ International SA. Magna, bidding together with Russian state lender Sberbank, wants GM's Chevrolet Russia business to be part of the Opel transaction, sources indicated Tuesday. GM is balking because Chevrolet is its high-volume seller in the region and it's highly profitable.

Magna's bid is clearly preferred by several German politicians and labour leaders, but its final offer as presented to GM varied from what the parties had discussed in previous weeks and contained elements around intellectual property and GM's Russian operations that could not be implemented, John Smith, GM's chief negotiator for the Opel sale, wrote on the company's Europe blog Tuesday.

"GM has partners in other parts of the world who have joint ownership of these assets," Mr. Smith said.""We simply could not execute the deal as submitted."

Those partners include Avtotor, which builds GM vehicles in the city of Kaliningrad, and Avtovaz, which operates a joint venture with GM in Togliatti that builds the Chevrolet Niva sports utility vehicle. Avtovaz is 25% owned by French carmaker Renault. GM's Chevrolet vehicles in Russia are based on products from its Korean Daewoo unit. Korea's government-run Development Bank is a major shareholder in GM Daewoo and is keen on seeing it grow.

Talks on reformulating a bid with Magna continue, Mr. Smith said. He said the rival bid from RHJ is completed and "would represent a much simpler structure and be easier to implement."

A deal with Magna could still get done. But GM would have to get something significant in return, people familiar with the matter said.

Magna's offer for Opel centers on a business strategy that would see sales of Opel vehicles expand dramatically in Russia and the post-Soviet states. Russia is backing the bid because it wants to use Opel technology to revive its own auto manufacturing capability, centered on Russian billionaire Oleg Deripaska's automaker GAZ.

As part of that commercial strategy, sources said Magna and its partner are also seeking control over all or part of GM's Chevrolet business in Russia. The Russian Chevrolet unit is said to be a cash machine for GM because it sources vehicles free of the country's import duty on foreign vehicles, making it a crucial unit as the automaker seeks to reverse nearly US$88-billion in losses accumulated since 2004.

"Not only is Magna having difficulty with this intellectual property issue, they're having difficult understanding that they're not going to get Chevrolet," said Warren Browne, GM's former top executive in Russia. "You're not buying a country. You're buying a brand -- Opel."

Mr. Deripaska has toured the GM-Avtovaz assembly factory and "understands" its value, one source said. Russia's political leaders and Magna executives are also familiar with the operation.

They'd be getting one of the leanest manufacturing facilities in Russia, with an experienced workforce, said the source. "Magna gets to jump in and doesn't have to clean up anybody's mess. They could walk into that plant and get 85,000 to 100,000 units worth of capacity without untangling anything."

Mr. Deripaska's GAZ is still struggling to modernize its car lines and assembly operations. According to Russian media reports, its passenger vehicle business is close to collapse and last week received another state bailout of 5.6 billion roubles ($195-million).

Aurora, Ont.-based Magna and Sberbank are together offering 500 million euros ($766-million) for Opel and its U.K. unit Vauxhall. The partners have offered to pay more cash right away than initially planned. They will each take a 27.5% stake in Opel. GM would retain 35% while Opel workers would be offered 10%.

GM takes more time to negotiate Opel sale

General Motors is taking more time to negotiate with Magna and RHJ International over the planned sale of its European arm Opel, the U.S.-based company said on Tuesday.

Canadian auto parts group Magna and Belgium-based RHJ are locked in a takeover battle for Opel, in which GM is relinquishing control in return for state support.

GM was expected to recommend one of the two bidders to its new board of directors at a meeting on Monday. But it said on Tuesday it merely brought the board up to speed on talks without making a recommendation as negotiations were still dragging on.

German government officials and GM representatives are expected to meet with Magna and RHJ this week to further discuss the sale, sources said earlier this week.

GM, which holds 35% of Opel shares, and Germany, which will provide state aid, must agree on the buyer but so far the two have disagreed. Germany prefers the Magna offer and GM likes RHJ's bid.

German Economy Minister Karl-Theodor zu Guttenberg had said in a weekend newspaper interview both suitors had to improve their bids to win government backing.

Magna, a Canadian auto parts supplier, wants to expand Opel's full-scale car assembly business and forecasts high growth rates, particularly in Russia, home of its bidding partner, state-controlled bank Sberbank.

RHJ aims to shrink production to return Opel to profit and may be open to selling it back to GM at a later date.

Testing Slot Cars for the Real World

Researchers in South Korea demonstrate an electric car that draws power from strips embedded in the road.

While entrepreneurs in the United States continue to pursue an infrastructure for charging electric cars, two research projects –- one in Korea, the other in Israel -– have recently offered intriguing ideas for putting blacktop itself to work in the service of electric cars.

In May, scientists at the Korea Advanced Institute of Science and Technology demonstrated how induction strips and inverters embedded in a road can carry a current that recharges specially designed electric vehicles on the fly. The cars in such a system — aimed primarily at urban areas — would be equipped with compact batteries that have a 50-mile range.

The government of South Korea is investing heavily in the project, which was displayed at last month’s C-40 summit meeting in Seoul, a city of 10 million with serious traffic problems.

The Israeli project — a venture of the research and development firm Innowattech, which is linked to the Israel Institute of Technology, takes a slightly different tack. Piezoelectric ceramic tiles are embedded into the asphalt of a road, or the tracks of a rail line, and linked to modules that draw the electricity generated from the pressure exerted by passing vehicles.

Piezoelectric materials are commonly found in microelectronics, like watches and CD-ROMs, which rely on very small quantities of power.

From Green Inc.:

Company looks to bring air-powered cars to US

Most car companies are racing to bring electric vehicles to the market. But one startup is skipping the high-tech electronics, making cars whose energy source is pulled literally out of thin air.

Zero Pollution Motors is trying to bring a car to U.S. roads by early 2011 that's powered by a combination of compressed air and a small conventional engine.

ZPM Chief Executive Shiva Vencat said the ultimate goal is a price tag between $18,000 and $20,000, fuel economy equivalent to 100 miles per gallon and a tailpipe that emits nothing but air at low enough speeds.

Elsewhere in the world, the technology is already gaining speed. The French startup Motor Development International, which licensed the technology to ZPM, unveiled a new air-powered car at the Geneva Auto Show in March. Airlines KLM and Air France are starting to test the bubble-shaped AirPod this month for use as transportation around airports.

Engineering experts, however, are skeptical of the technology, saying it is clouded by the caveat that compressing air is notoriously energy intensive.

"Air compressors are one of the least efficient machines to convert electricity to work," said Harold Kung, professor of chemical and biological engineering at Northwestern University. "Why not use the electricity directly, as in electric cars? From an energy utilization point of view, the compressed (air) car does not make sense."

As Vencat spells it out, the "air cars" plug into a wall outlet, allowing an on-board compressor to pressurize the car's air tank to 4,500 pounds per square inch. It takes about four hours to get the tank to full pressure, then the air is then released gradually to power the car's pistons.

At speeds less than 35 mph, the car relies entirely on the air tank and emits only cold air. At faster speeds, a small conventionally fueled engine kicks in to run a heater that warms the air and speeds its release. The engine also refills the air tank, extending the range and speed.

The technology behind the car was developed by the French race car engineer Guy Negre, head of Motor Development International. Besides ZPM, Negre has licensed the technology to Indian car giant Tata Motors and others.

Many of the specifications of ZPM's car are still speculative, but Vencat expects it to go about 20 miles on compressed air alone, and hundreds more after the engine kicks in, with a top speed of 96 mph.

The technology shouldn't sound too outlandish, Vencat said. It's similar to the internal-combustion engines in conventional cars — the main difference is the fuel.

"Every single car you see out there, except an electric car, is a compressed-air car," he said. "It takes air in the chamber and it pushes the piston, and the only way you push the piston is through pressure."

James Van de Ven, a mechanical engineering assistant professor at Worcester Polytechnic Institute who has studied compressed-air technology, said air compressors allow you to recover only 25 to 30 percent of the energy used to compress the air. The rest is lost through heat, air leakage and other forms of waste, he said.

While that's still slightly better a gasoline engine, it pales compared with the efficiencies of other alternative-fuel powertrains, like those in hybrid-electric cars, which have an efficiency closer to 80 percent, Van de Ven said.

A look at some of ZPM's specifications illustrates the issue. With four hours of charging, the air car's 5.5-kilowatt compressor would eat up 22 kilowatt-hours of electricity. That means the same energy used to turn on 10 100-watt light bulbs for 22 hours would allow the car to travel 20 miles.

By comparison, General Motors Corp. has said its Chevrolet Volt will use about 8 kilowatt-hours of energy to fully charge, and it will be able to travel 40 miles on battery power alone.

George Haley, business professor at the University of New Haven, said U.S. safety regulations could be another obstacle given the air car's tiny size and light weight.

Vencat said he gets such criticism "from the whole wide world" and pays it little mind. He counters that the car is cleaner than any internal combustion engine and remarkably simpler — and cheaper — than more advanced powertrains currently under development.

"The big difference is that the (Chevrolet) Volt needs the battery," Vencat said. The Volt's massive lithium-ion battery is a big part of the reason it is expected to cost about $40,000 when it goes on sale late next year.

He acknowledges the difficulties with getting the car out quickly but said he is lining up investors.

"You know, we've got a lot of people who wanted the car yesterday," he said.

Tesla Motors recalls 345 Roadster sports cars

Electric-car maker Tesla blames a possible suspension problem on bolts that were improperly installed on the rear chassis 'of a small percentage' of Roadsters by British automaker Lotus.

Electric-car maker Tesla Motors said Thursday that it was recalling all 345 of its Roadster sports cars produced before April 22 so they could be inspected for a possible suspension problem.

Tesla blamed the problem on bolts that were improperly installed on the rear chassis "of a small percentage" of Roadsters by British automaker Lotus. The Roadsters, which sell for $109,000, are assembled in Britain by Lotus and then shipped to California, where Tesla installs the cars' batteries and electric powertrain.

Tesla said no accidents had been reported as a result of the defect, which it said was unrelated to the powertrain.

Lotus is recalling 27 of its 2009 Elise and Exige sports cars with the same suspension problem, according to the National Highway Traffic Safety Administration. "If the problem is not addressed promptly, the driver could lose control of the vehicle, resulting in a crash," the agency said in its recall notice.

Lotus could not be reached for comment late Thursday

Tesla, based in San Carlos, Calif., has delivered almost 500 of the two-seat Roadsters. The firm said it found the problem after an owner reported "uncharacteristic handling."

The company said it would send technicians to customers' homes to make the needed repairs free of charge or pick up the cars and take them into a service center to do the work.

"We plan to do everything we can to address this matter swiftly and keep customers satisfied," said Greg Zanghi, Tesla's director of service and parts operations. The company declined to disclose how much the recall would cost.

Safety Could Suffer With Small Cars

The Obama administration’s sweeping fuel economy and emissions initiative announced Tuesday reopens a fierce debate over tradeoffs between fuel economy and auto safety.

The government says no tradeoff exists because nothing in the new rules would force automakers to sell more small cars, which are more dangerous in crashes than larger ones. But some safety experts think otherwise.

“The deadlines are so tight that downsizing will be a tempting compliance strategy” for automakers, says John Graham, the former rulemaking chief in the Office of Management and Budget.

The plan requires automakers to sell cars that average 35.5 miles-per-gallon by 2016, a little more and a lot sooner than current law. It has been heralded as a brilliant solution to the nettlesome mix of problems related to fuel consumption and greenhouse-gas emissions.

The move is also an example of the clout environmentalists have with the Obama administration and comes as automakers’ dire financial straits are forcing safety to a back burner. It raises the risk that cash-strapped automakers will take the fastest and cheapest route to building more fuel-efficient vehicles: Make them smaller and lighter. Further, as General Motors and Chrysler rely on federal bailout money for survival, they are ill-positioned — and disinclined — to fight proposals that some say may not be just dangerously costly, but simply dangerous.

The National Academy of Sciences, Insurance Institute for Highway Safety, Congressional Budget Office and National Highway Traffic Safety Administration have separately concluded in multiple studies dating back about 20 years that fuel-economy standards force automakers to build more small cars, which has led to thousands more deaths in crashes annually. Even though the standards were updated in recent years to reduce the incentive for automakers to sell more small cars by allowing different fuel-economy targets for different vehicles, the fastest way to make cars more fuel-efficient is to make them smaller.

Some safety experts worry that the administration’s green focus could reverse progress made in reducing the highway death toll. The fatality rate in car crashes reached its lowest ever in 2007 and is projected to drop even lower for 2008 — to 1.28 deaths per 100 million miles traveled.

President Obama this month withdrew the name of his nominee to lead the National Highway Traffic Safety Administration, longtime safety advocate Charles “Chuck” Hurley, after an outcry from environmentalists over Hurley’s statements linking fuel-economy rules to highway deaths.

But while U.S. automakers might not have made many of the most popular small and midsize cars, they did build and sell millions because they needed to keep their car and light-truck fleet fuel-economy averages over the number prescribed by law. The tilt toward smaller vehicles, which were often heavily discounted to sell, boosted the death toll, the studies say.

The Obama administration maintains the new fuel standards can be met without forcing more small cars into the market.

“Because every (size) category has to get more efficient, if the soccer mom wants to buy her minivan, it will be a more fuel-efficient minivan. If someone wants to buy a big SUV, it will be a more fuel-efficient SUV,” said Carol Browner, director of the White House Office of Energy and Climate Change.

She said companies can use advanced technologies to improve fuel efficiency without dramatically changing their fleets.

Former NHTSA chief Jeffrey Runge, now an auto-safety and biodefense consultant, applauds the administration’s decision to factor safety into its fuel-economy plan but worries automakers will still “do what is cheap and quick because the timelines are very short,” and that could lead to more small cars.

"Why do you say small cars are dangerous? A luau is a big party and lots of fun -- unless you're the pig. When a big car hits a small car and somebody gets hurt, why blame the small car? The big car is the one that caused the damage! BIG cars are dangerous.

Pickup trucks and large SUVs are especially dangerous because of their higher bumpers. They tend to cause lots of damage to other cars they hit. They also tend to run over bicycles (fatally) rather than having the bicyclist land on the hood (non-fatally) like with small cars.

Hyundai reports 4,000 scrap car trades in UK

Governments all over the world have introduced Cash-For-Clunkers-style programs that are nothing if not controversial. While the stated intent of each of these schemes is to increase new car sales and remove older, dirtier and less fuel efficient vehicles from the road, some powerful organizations have voiced concerns that untold numbers of classic machinery may be lost forever for no good reason. Could it be that both sides are right? New car buyers in the UK are reportedly flocking to Hyundai dealers in droves with a bevy of older vehicles in tow. According to Tony Whitehorn, Hyundai UK's managing director:

"For many [the scrappage scheme] is an opportunity to buy their first ever new car, and is enormously exciting. Some people look a little embarrassed when they turn up at a showroom with an old car which is literally falling to pieces but we're happy to take anything as long as it meets the government's criteria. Other buyers have taken the decision to wave goodbye to cars which have been in the family for a generation, but their sadness soon disappears when they get into their new Hyundai."

So, just what kinds of cars are being traded in? The Korean automaker reports that both a Jaguar XJ-S and XJ6 have both been scrapped, as have 34 BMWs, 22 Audis and 32 vehicles from Mercedes-Benz. Six Mazda MX-5's, seven MGFs, a 1966 Austin 1100 and a 1968 Morris Minor were also sent to the great scrapheap in the sky along with at least one Citroen that lost a wheel on the way to the dealership.

[Source: The Green Car Website]

Small cars can be the 'Smart,' 'Fit' choice

In car-obsessed South Florida, size matters. Big SUVs, big pickup trucks, minivans and four-door sedans dominate.

But as Hummers become dinosaurs, gas sippers are slowly taking over their terrain. They're "Fit" and "Smart" and take pride in their "Mini" status.

"The Fit is excellent," said Manuel Valido of Lake Worth, who bought his Honda subcompact last summer as gas prices soared. "It's saving fuel. I get 38 to 40 miles per gallon."

Just five years ago, subcompact cars held little sway with American car consumers, grabbing a mere 1.8 percent of U.S. car sales in April 2004, according to Edmunds.com an automotive consumer Web site. But then the 2008 gas spike suddenly made small cars attractive. Last July, subcompacts reached their peak and grabbed a 4.9 percent market share, the highest in decades.

By December, the love affair with diminutive vehicles cooled as sales dipped to less than 3 percent of all car sales. But the number has steadily crept back up, garnering 4.3 percent of U.S. car sales by April and becoming the fastest growing category of cars.

But admirers still plowing around in motorized behemoths question the safety of the motorized tykes. Imagine getting side-swiped by a Hummer while driving a car a third its size.

Indeed, the Insurance Institute for Highway Safety recently released a report showing small cars performed poorly in head-on collisions with mid-size cars. Basically, the report said weight and size matter when it comes to protecting occupants during crashes.

Still, the National Highway Traffic Safety Administration gives many small cars stamps of approval in crash tests.

"They're seen as safe choices by consumers," said Jesse Toprak, an Edmunds.com analyst. "People are looking for value purchases. ... They're cheap to buy. They're cheap to own. They have lower fuel costs."

There's another appeal. In an age where economic doom has made thrift and minimalism trendy, the little guys also are fashionable.

"Everyone who sees this car says it's so cute," said Shirley Miller of Deerfield Beach, who began leasing her silver Toyota Yaris three months ago.

Miller considered buying a mid-size SUV, but the poor economy and fear of another spike in gas prices made her think again.

She chuckles at gas stations watching drivers with SUVs and trucks filling up. "I come after them and they're still filling up after I'm done," she said.

Fiat plans up to 10,000 Opel cuts

Italian carmaker Fiat has said it plans to cut fewer than 10,000 jobs if it succeeds in buying Opel and its UK brand Vauxhall from General Motors.

Fiat said the cuts would be made across Opel's Europe-wide operations, which currently employ about 50,000.

Rival bidder, car parts maker Magna, pledged to keep Opel's four German plants, but made no comments about the two Vauxhall factories in the UK.

The third bidder is RHJ International, a Brussels-based investment firm.

German government officials are currently discussing the rival bids, submitted before Wednesday's deadline.

Unconfirmed reports suggest a fourth bid may have subsequently been tabled by a Chinese car firm, Beijing Auto.

Magna front-runner?

Fiat added in its statement that reports it planned to cut up to 18,000 jobs in Germany, where Opel employs 25,000 people, were "entirely unfounded".

While most analysts still consider Fiat to be the front runner to buy Opel, and therefore become the world's second largest carmaker, a number of German politicians have already thrown their weight behind the offer from Canada's Magna.

This is because while Fiat has already warned that it would be likely to close one Opel factory in Germany - the engine plant at Kaiserslautern - Magna has vowed to keep open all four German Opel plants.

"Under our concept the German sites are seen as assets and we want to keep as many jobs as possible," said Magna co-chief executive Siegfried Wolf.

Roland Koch, the premier of Opel's home state of Hesse, said the Magna offer was "closest to the hopes and wishes" of German politicians and the country's Opel workers.

And German Foreign Minister Frank-Walter Steinmeier described the Magna bid as the only "sustainable" plan among the three.

Negotiations are continuing with all three parties, however, and Germany's economy minister said a host of questions remained about the Magna bid. He suggested a decision on Opel's future would be taken next week.

US giant General Motors (GM) is aiming to sell Opel ahead of a 1 June US government deadline to restructure its finances and avoid the need to go into bankruptcy protection.

GM is also looking to sell Sweden-based Saab, its other European car business.

Car production down 55% in April

UK car production fell 55.3% in April compared with a year earlier, according to figures from the Society of Motor Manufacturers and Traders.

A total of 68,258 cars were made in April, with the total for the year to date about 251,268 cars.

In April, 56,267 cars were exported, a drop of 53.4% compared with April 2008.

Overall vehicle production - including commercial vehicles - fell 56.5% to 75, 913 in April. Carmakers are cutting production as the recession takes hold.

Commercial vehicle production fell by 65.2% to 7,655 in April, with the year-to-date production down 63.6% at 29,950 vehicles.

More cars were made in April than in March, when the UK produced 61,829 cars, a 51.3% drop on March 2008.

The car sector has been one of the hardest hit by the global slowdown, as consumers cut back on big-ticket purchases, forcing global car companies to cut production and staffing levels.

Slow recovery

Under a new government scheme, cars that are more than 10 years old can be scrapped in return for a £2,000 discount on a new model.

The scrappage scheme should boost sales, an SMMT spokeswoman told BBC News.

But it will take a few months for this rising demand to feed through into greater production.

"There are some signs that production is beginning to pick up. We are starting to see some good signs, but it is going to be a protracted recovery on the production side," she said.

"We will start to see a pick-up towards end of summer, beginning of autumn. It will be some time before we regain the numbers that we were seeing towards the middle of last year," she added.

Paul Everitt, SMMT chief executive, said: "Despite the current difficulties, the UK must prepare for the return of global growth and government support for the industry is an essential part of the process."

Scrappage scheme boosts small car sales

Just days after the UK introduced a car scrappage scheme - where car buyers are given a £2,000 discount on a new car if they scrap one that is at least 10 years old - the motor industry has hosted its annual test driving day for journalists.

An impressive range of some 160 of the latest models that are for sale in the UK were available for trials at Millbrook Proving Ground's intricate hill route, the off road track, or around the high speed circuit.

But as the more than 250 journalists in attendance buzzed about the Millbrook test tracks, the manufacturers were left behind in their exhibition chalets.

The were wondering whether the scrappage scheme, half of which is funded by the government, will bring buyers back to the showrooms.

At the Kia stand there was little doubt.

"We've taken 4,000 orders on the back of the scrappage scheme," beamed one representative for the Korean carmaker Kia Motors, which has slashed its £6,195 Picanto to £4,195.

"If the customer then puts up a £1,000 deposit, they can have the car for £10 per week," declared her equally buoyant colleague.

It's a promise that reinforces BBC Top Gear's assessment of the car: "It is to motoring what the disposable camera is to photography."

Changed mindset

Citroen has also seen demand soar since the scheme came into effect on Monday; up 30% so far in May compared with the same period last year.

The French company had stolen a march on its rivals by offering the £2,000 scrappage discount from 1 May, thus carrying the whole cost themselves for almost three weeks, but it had been well worth it, according to Citroen's spokesman.

Test drive requests from potential customers had quadrupled, with demand for its small C1 soaring, and half its C1 sales were now made up by scrappage customers, the spokesman said.

"The scheme has just changed people's mindset," observed Paul Everitt, chief executive of motor industry body SMMT, who pointed to how activity in the car showrooms had picked up dramatically since the scrappage scheme was announced in last month's budget.

Small car impact

But the enthusiasm was by no means universal.

Car sales in the UK had already fallen from 1.8m in 1999 to 1.45m in 2008, and so far this year the figures had slipped by between 20% and 30% each month, when compared with the same months last year.

It is still early days, but as yet most of the motor industry officials seemed to think the scrappage scheme would be most beneficial to those who make small, fuel efficient cars.

Many said the scrappage scheme had done little for their own sales, and you did not have to climb far up the value chain before there were audible grumbles.

Mini's spokesman said it had not seen much of an impact since most Minis were still quite pricey.

However, the BMW-subsidiary was finalising plans to launch a stripped down, cheaper version of the Mini One to take advantage of the scheme.

The car should be here within weeks. "It'll have to happen soon, or we'll miss the boat," the spokesman said.

Tough times

Obviously, the higher up the ladder the less impact the scrappage scheme would have on sales.

Taking a Jaguar XK for a spin around the country lanes near the test track, and three facts became immediately apparent.

One; the Jag was one of - perhaps the - most refined car there. Two, as the Jaguar spokeswoman pointed out: "If you've got a 10 year old car you'd like to trade in for scrap, you're not going to buy yourself a new Jaguar."

And three, being behind the steering wheel of perhaps the classiest car at the event was considerably more comfortable than being out in the real world, selling luxury cars, or indeed any cars at all.

Great potential

SMMT's Mr Everitt nevertheless insisted the future offered great potential.

"There are huge markets out there," he said.

"We know there's going to be demand there."

He said the industry's challenge was to retain the UK motor industry's share of the global market and to raise its value as the total market would grow.

But such concerns still seem a long way off for many carmakers, whose main focus is likely to be on survival for months to come.

India car sale up but sector still shaky

Indian car sales grew for a third straight month in April, according to data Monday, but an industry body said it was too soon to say the sector was on the road to recovery.

Sales rose 4.2 percent to 102,899 units for April as car buying continued to pick up after the industry went into a tailspin last October, hit by a slowing economy.

But Sugato Sen, senior director of the Society of Indian Automobile Manufacturers (SIAM), warned: "Things are still very sensitive."

In the passenger car segment, sales of Japanese-owned market leader Maruti Suzuki India raced ahead in April by 8.61 percent to 56,221 units from a year earlier.

South Korea's Hyundai unit, the second-largest carmaker in India, posted a 3.49 percent sales rise to 22,241 units. Top vehicle maker Tata Motors' sales were flat at 11,202 units.

Total vehicle sales rose 10.76 percent to 894,058 units.

Two-wheeler sales showed the strongest rise for April, surging 13.71 percent to 700,995 units from the same period last year as consumers turned from cars to cheaper motorbikes and scooters.

Costly loans and hesitation by banks to finance new purchases in the wake of the global financial crisis have slowed the overall vehicle market, although the numbers began to rise again in February.

In the motorcycle segment, market leader Hero Honda, which has been targeting rural India where sales are less dependent on credit financing, saw sales surge by 25.87 percent year-on-year to 348,132 units.

But sales of rival Bajaj Auto, which is focused on urban centres and whose presence is more limited in the rural market, slid 22.88 percent to 106,516 units.

The country's carmakers cut prices following a government reduction in value-added tax last December, part of a stimulus package to help the vehicle and other sectors.

Despite current woes, analysts say India holds promise for global automakers as the country of 1.1 billion people has one of the world's least penetrated car markets -- at just seven vehicles per 1,000 people compared with 550 per 1,000 in nations like Germany.

CNG Cars to Take on the Markets in India

All auto makers around the globe are driven towards developing eco-friendly cars which means CNG cars or LPG cars for their customers. Availability of natural gas is expected to double this year and will be available in more Indian cities. IV Roa from Maruti Suzuki India Limited has already confirmed that the company is developing more models that run on alternative fuels. “We are developing engines that would run on CNG. By early 2010, we will introduce CNG-driven cars in each of the segments we operate,” he said. “Initially, we were focused on liquefied petroleum gas (LPG). But CNG seems to be the future. Although the CNG-enabled cars would be a bit costly, their running cost will be lower than that of LPG,” he added.

Maruti is already in talks with Reliance Industries Limited and GAIL that are the main producers and transportation of CNG in the country. RIL person has confirmed about the talks but refused to divulge the details.

M&M is also developing CNG-run small commercial vehicles. Apart from M&M and Maruti, Hyundai is also developing CNG-driven cars for the Indian as well as overseas market. However, no one is sure how fast this segment will grow as India is still lacking in terms of support in regulations as well as infrastructure. Presently, there is no automaker that sells cars driven with CNG-run engines.

A study by the rating agency CRISIL says that CNG usage is 80% cheaper than petrol for taxis and 40% cheaper for three wheelers and light commercial vehicles. For bus, it is 30% cheaper than diesel. Nearly 5 lakhs vehicles are estimated to use CNG in India, making it the world's fourth largest CNG market.