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Back Seat Driver: All Tata all the time

India's Tata Motors unveiled its $2,500 Nano car at the Auto Show in New Delhi on Thursday and the company expects to sell millions of the four-door, 625 cc rear-wheel drive cars in a country with a population of 1.1 billion but where only about seven in 1,000 have cars.

(At the other end of the scale, Tata, India's largest conglomerate with sales of $29 billion last year, is also currently in the midst of negotiations to acquire luxury marques Jaguar and Land Rover from Ford.)

But back to the modest Nano which is certainly very elemental indeed. Indeed, Americans might be excused for wondering why anyone would want to buy such an simple car. But when you've been balancing your family on a scooter everyday or moving along at less than five mph while looking up the ass of a donkey, the Nano must look like a real nice alternative.

Indeed, this is truly a Phase 2 of the people's car, with Phase 1 having taken place in Europe following WWII with the introduction of the Volkswagen Beetle in Germany, the Fiat 500 in Italy, the Citroen 2CV in France and Morris Minor and Mini in England.

(Come to think of it, maybe the introduction of the Ford Model T in the U.S. 100 years ago was the first people's car.)

But in Europe following the devestation of WWII, millions of people who had formerly been limited to walking, bicycling or riding in horse- or donkey-drawn carts, finally had access to the freedom of the internal combusion engine.

Of course, any potential increase in the number of cars has enormous implications in terms of congestion and pollution. Consider that one billion cars are expected to be on the world's roads by 2010, according to a report in the Wall Street Journal in 2006, which is about 25 percent more than are on the roads today.

But for the time being, the little Tata Nano offers millions of Indians the kind of freedoms and opportunities we in the developed world take for granted, and that is a very good thing indeed.

Posted by Peter C. T. Elsworth  at 11:33 AM to commentary | Permalink | Comments 1

NBA wheels in Kia as an awards sponsor

NEW YORK — The NBA announced a marketing partnership with Kia Thursday that will enable the Korean automaker to hitch its name to four on-court performance awards selected by NBA writers and broadcasters: the Most Valuable Player Award; Defensive Player of the Year; Sixth Man Award; and Most Improved Player, according to USA Today.

Posted by Peter C. T. Elsworth  at 11:25 AM to Kia | Permalink | Comments 0

Oil Falls on Growing Economy Concerns

NEW YORK (AP) -- Oil prices extended their slide on a growing sentiment that the United States might be headed for a recession that would depress demand for oil, according to the Associated Press.

Energy investors remained focused on recent government jobs reports that suggest the economy is struggling to make headway against the challenges posed by a troubled housing market and high oil prices.

Light, sweet crude for February delivery slipped 29 cents to $93.42 a barrel on the New York Mercantile Exchange.

Posted by Peter C. T. Elsworth  at 11:16 AM to Crude oil market | Permalink | Comments 0

Honda reaches milestone: Millionth vehicle made in U.S.

Honda surpassed 1 million vehicles made in the United States for the first time in a year in 2007, the Japanese automaker announced this morning, according to the Detroit Free Press.

Honda made 1,015,462 vehicles in 2007 in the United States, up 4.2% from 2006. Total North American production rose 3.4% to 1,432,731 vehicles.

Posted by Peter C. T. Elsworth  at 11:00 AM to Honda | Permalink | Comments 0

India's Tata unveils the world's cheapest car

NEW DELHI - India's Tata Motors unveiled the world's cheapest new car on Thursday, bringing car ownership closer for millions of poorer consumers in emerging markets but raising environmental concerns, according to Reuters.

The 4-seater Nano, with an engine around 625cc, will have a dealer price of 100,000 rupees ($2,500), about half the cost of the cheapest car on today's market, a 25-year old model from Maruti Suzuk, Tata's main rival.

The Nano will go on sale later this year, the company said.

"Let me assure you and our critics the car we have designed will meet all safety norms and all foreign environmental criteria," Chairman Ratan Tata said as he proudly unveiled what had been dubbed the "People's Car" at the Auto Expo in New Delhi.

Posted by Peter C. T. Elsworth  at 10:45 AM to India | Permalink | Comments 1

Toyota in Tight Race for No. 1 With GM

TOKYO -- Toyota said Thursday that its global group sales rose 6 percent last year to 9.37 million vehicles, making for a tight race against General Motors, the world's largest automaker, according to the Associated Press.

GM has not released its annual sales tally but earlier estimated 2007 sales would come to 9.3 million vehicles.

Posted by Peter C. T. Elsworth  at 10:43 AM to Toyota | Permalink | Comments 0

Cars.com: Searches show high interest in Nissan Rogue

CHICAGO - The Nissan Rogue was the most popular new-car introduction in terms of consumer searches on Cars.com in 2007, according to the most recent Cars.com Consumer Search Index.

The 2008 Nissan Rogue was followed in popularity among Cars.com shoppers by the Infiniti G37, Buick Enclave and Dodge Avenger.

"Nissan finally got into the compact crossover/SUV market in 2007 and has received positive reviews for the all-new Rogue," said Cars.com managing editor Patrick Olsen. "With gas prices being so high, smaller crossover vehicles like the Rogue are likely to remain popular. We see this playing out in the search behavior of shoppers on Cars.com."

Below is the complete list of the 10 most popular new-car introductions on Cars.com in 2007.

1 Nissan Rogue

2 Infiniti G37

3 Buick Enclave

4 Dodge Avenger

5 Ford Taurus X

6 Volvo C30

7 Scion xD

8 Land Rover LR2

9 Pontiac G8

10 Ford Taurus

To be eligible for the list, a car had to be a completely new '08 model that was introduced to consumers in 2007. The list was generated by calculating each car's average number of monthly searches since it was made available to consumers on Cars.com.

Posted by Peter C. T. Elsworth  at 11:14 AM to Nissan | Permalink | Comments 0

Ford says it could shrink more before it rebounds

Ford Motor Co. might not be done shrinking, according to the Detroit Free Press.

A weakening U.S. economy, aggravated by aggressive expansion and price discounting by foreign-owned rivals, could mean further declines before Ford is able to stabilize sales and production levels and begin growing again, Ford President and Chief Executive Officer Alan Mulally said Tuesday evening.

Posted by Peter C. T. Elsworth  at 10:06 AM to Ford | Permalink | Comments 0

Chrysler aims to trim rentals

Already bracing for a slowing U.S. market, Chrysler LLC wants to reduce sales of vehicles to government and commercial buyers, such as rental-car companies, by perhaps as many as 200,000 autos this year, according to the Detroit Free Press.

The newly private automaker is undergoing dramatic changes -- from slashing as many as 25,000 jobs to cutting nameplates -- and the change in its sales strategy is part of Chrysler's efforts to make it a retail-based company that relies on what Chrysler President Jim Press calls a "pull-driven system."

Posted by Peter C. T. Elsworth  at 10:04 AM to Chrysler | Permalink | Comments 0

'Pimp my ride' turns into 'tech my ride'

LAS VEGAS — Having 12 TVs in your house: impressive. Having 12 TVs in your car: really impressive.

High-tech electronics are moving from the home to the garage, and some of the craziest car tech options are on display at the Consumer Electronics Show. Manufacturers are showing off DVD players, navigation systems, stereos and other devices for gadget-loving gearheads, according to USA Today.

They're chasing a growing market. Sales of electronics for automobiles are expected to reach $12.8 billion this year, a 12% increase from 2007, says the Consumer Electronics Association. "It's important to our customers," says Jim Buczkowski, director of electrical systems engineering for automaker Ford. "They see their vehicle as an extension of their home."

Posted by Peter C. T. Elsworth  at 10:00 AM to Design | Permalink | Comments 0

Hyundai offers up luxury car

BMW and Mercedes-Benz owners are about to have a new luxury car choice. But they may flinch at the name: Hyundai, according to USA Today.

Hoping to find a market for thrifty rich people, Hyundai officially unveiled its $36,000 Genesis V-8-powered sedan Tuesday in South Korea, due to arrive in U.S. showrooms this summer.

Hyundai hopes Genesis will lure the well-heeled with curb appeal even if it lacks snob appeal.

Posted by Peter C. T. Elsworth  at 10:00 AM to Hyundai | Permalink | Comments 0

Oil Prices Rise on US Supply Concerns

VIENNA, Austria -- Oil prices rose Wednesday amid expectations a U.S. government report will show crude oil stockpiles fell last week, according to the Associated Press.

Prices were also supported by fears of further violence in Nigeria, the world's eighth-largest oil producer.

Analysts surveyed by Dow Jones Newswires predict crude inventories likely fell 800,000 barrels last week, while supplies of distillates, which include heating oil, likely fell 300,000 barrels. The U.S. Energy Department's Energy Information Administration will release the report later Wednesday.

"That would be the eighth consecutive week of crude oil stock draws and U.S. crude oil inventories are already below the five year average for this time of the year," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Light, sweet crude for February delivery added 24 cents to $96.57 a barrel by afternoon in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $1.24 to settle at $96.33 a barrel on Tuesday.

Posted by Peter C. T. Elsworth  at 9:53 AM to Crude oil market | Permalink | Comments 0

Ford to Expand in India, Planning a Small Car and an Engine Plant

Ford Motor plans to more than double its investment in India to produce a small car for the fast-growing local market and to build an engine manufacturing plant there.

The company is expected to announce on Tuesday that it will increase spending in India by $500 million, raising its total investment to $875 million, as it focuses on making the country a regional hub for small-car manufacturing.

Car sales in India are growing by more than 20 percent a year, compared with 3 percent globally, and first-time buyers there are eager for cheap compact cars.

Several local and international automakers have recently announced plans to make a small car specifically for India, inspired in part by Tata Motors’ impending introduction of a $2,500 car.

Posted by Peter C. T. Elsworth  at 1:22 PM to Ford | Permalink | Comments 0

Four Wheels for the Masses: The $2,500 Car

MUMBAI, India — What does it take to build the world’s cheapest car?

For Tata Motors of India, which will introduce its ultra-cheap car on Thursday, the better question was, what could it take out, according to a fascinating story in the New York Times that includes a graphic and a pic of Tata Motors chairman Ratan Tata.

The company has kept its new vehicle under wraps, but interviews with suppliers and others involved in its construction reveal some of its cost-cutting engineering secrets — including a hollowed out steering-wheel shaft, a trunk with space for a briefcase and a rear-mounted engine not much more powerful than a high-end riding mower.

The upside is a car expected to retail for as little as the equivalent of $2,500, or about the price of the optional DVD player on the Lexus LX 470 sport utility vehicle.

The downside is a car that would most likely fail emission and safety standards on any Western road, and, perhaps, in India in a few years, when the country imposes tougher environmental standards.

Posted by Peter C. T. Elsworth  at 1:18 PM to Design | Permalink | Comments 0

Downturn nearing an end, auto report says

The global automotive industry is nearing the end of a massive restructuring period and now will become more focused on growth, profits and environmentally friendly vehicles, according to the annual Auto Executive Survey by KPMG LLC, to be released today, according to the Detroit Free Press.

This year's survey, based on interviews late last year with 113 senior executives at vehicle manufacturers and suppliers worldwide, found executives much more confident than in the recent past about the outlook for the near term.

Posted by Peter C. T. Elsworth  at 1:17 PM to Auto industry | Permalink | Comments 0

Carmakers Trying to Avoid Incentives

Faced with talk of recession and the fallout from a meltdown in the housing market, automakers are still hoping to avoid major incentives despite some sluggish sales, according to thecarconnection.com

Mark LaNeve, General Motors' vice president in charge of vehicle sales, said last week there was no doubt sales will be slow through the first quarter of 2008. Toyota also scaled back its forecast for higher sales in 2008 in the face of the deteriorating economic conditions in the U.S. At best, Toyota now expects its sales to improve only between one and two percent, Toyota officials said.

Posted by Peter C. T. Elsworth  at 1:08 PM to Sales | Permalink | Comments 0

Gas prices jump to an average $3.11 a gallon

WASHINGTON — The average U.S. retail price for gasoline jumped 5.6 cents to $3.11 a gallon over the past week, the government said on Monday, reflecting record high oil costs that topped $100 a barrel last week, according to Reuters and reported in USA Today.

The national price for regular gasoline rose to the highest level in two months and was 80 cents above a year ago, the Energy Information Administration said in a weekly survey of service stations.

Rising pump prices are the result of expensive crude oil, which reached $100.09 a barrel last Thursday and now accounts for about two-thirds of the cost of making gasoline. Oil prices have retreated since then and settled at just over $95 a barrel on Monday at the New York Mercantile Exchange.

Posted by Peter C. T. Elsworth  at 1:02 PM to Gas prices | Permalink | Comments 0

GM Envisions Driverless Cars on Horizon

DETROIT -- Cars that drive themselves - even parking at their destination - could be ready for sale within a decade, General Motors Corp. executives say, according to the Associated Press.

GM, parts suppliers, university engineers and other automakers all are working on vehicles that could revolutionize short- and long-distance travel. And Tuesday at the Consumer Electronics Show in Las Vegas GM Chief Executive Rick Wagoner will devote part of his speech to the driverless vehicles.

Posted by Peter C. T. Elsworth  at 10:55 AM to GM | Permalink | Comments 0

New Saturn Vue hybrid will set new bar, GM says

A new gas-electric Saturn Vue hybrid will leapfrog models like the Toyota Highlander hybrid to become the world’s most fuel-efficient V6 SUV when it goes on sale late this year, General Motors promises, according to the Detroit Free Press.

The Vue Green Line 2 Mode will debut at the North American International Auto Show in Detroit later this month.

Posted by Peter C. T. Elsworth  at 10:26 AM to GM | Permalink | Comments 0

Japan's Domestic Auto Sales Hit Low

TOKYO (AP) -- Japan's domestic auto sales fell to a 35-year low last year as the nation faced high gasoline prices, limited income growth and shrinking demand, an industry group said Monday, according to the Associated Press.

Sales of new cars, trucks and buses declined 7.6 percent to 3.434 million vehicles in 2007, the Japan Automobile Dealers' Association said in a statement. The figures do not include sales of minicars and minitrucks.

The result, which marked the fourth straight annual decline, was the lowest since 1972, when sales totaled 3.406 million vehicles.

Posted by Peter C. T. Elsworth  at 10:23 AM to Sales | Permalink | Comments 0

Oil Prices Fall on US Economic Concerns

VIENNA, Austria -- Oil prices fell Monday as a report of growing unemployment in the United States raised concerns of an economic downturn that could curb oil demand, according to the Associated Press.

The U.S. Labor Department said the unemployment rate jumped to 5 percent in December - its highest level in more than two years - from 4.7 percent in November. Analysts had expected December unemployment at 4.8 percent.

Light, sweet crude for February delivery dropped 52 cents to $97.39 a barrel by midday in European electronic trading on the New York Mercantile Exchange. The contract fell $1.27 to settle at $97.91 a barrel on Friday.

Posted by Peter C. T. Elsworth  at 10:21 AM to Crude oil market | Permalink | Comments 0

Vanity plates getting popular in Ocean State

R U VAIN?

Rhode Islanders apparently are not, at not least when it comes to their license plates.

The state known for big egos and bad drivers ranks a modest 21st on a nationwide list of percentage of cars sporting vanity plates, according to a national study by the American Association of Motor Vehicle Administrators.

Leading the pack is Virginia, followed closely by New Hampshire, according to a survey by the American Association of Motor Vehicle Administrators. Massachusetts falls 46th on the list while Texas is dead last.

Just 3 percent of the more than 800,000 vehicles on the road in the Ocean State have personalized plates.

But Division of Motor Vehicles spokeswoman Gina Zinni says vanity plates have been on the rise in Rhode Island since the DMV began allowing drivers to try out combinations and purchase plates online.

“Before, you had to walk into the DMV to see if [the name or phrase] you wanted was taken or not,” Zinni said.

Now you can create your dream plate in your pajamas. The system will even show you a preview of what your plate would look like.

Just don’t get too cute. Inappropriate vanity plate ideas are met with a “tsk tsk” admonishment from the computer system.

--This item also appeared in the projo Politics Blog

Posted by Pam Cotter  at 9:33 AM to Fun | Permalink | Comments 0