Ford: Geely Is Preferred Bidder for Volvo
Ford Motor Company says China's Geely is the leader in the thinly populated race for Volvo Cars.
In a release, the world's fourth-largest automaker said that the Geely consortium would enter "more detailed and focused negotiations" to sell the Swedish car company to the Chinese automaker.
Ford has had Volvo on the market since last year, when it began dismantling its global empire assembled in the past decade. Aston Martin was the first to go, sold to an investment group including former executives and Kuwaiti financiers; then Jaguar and Land Rover were sold to India's Tata.
Now, China's emerging influence in global car design and marketing seems set to grow as Ford focuses on Geely's Volvo bid.
"Ford believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand," the company said in a release. It also says it does not intend to keep any stake in Volvo after a sale, though it may cooperate on products--which would give Ford a link to Geely and its growing Chinese presence.
Ford is giving itself a loophole with Geely, saying that "no final decisions have been made." The American company is said to be concerned over intellectual-property rights and the technologies it's developed with Volvo going directly to China's auto industry--everything from safety equipment to plug-in hybrid technology. However, Ford has been moving to develop new cars for its global empire from within; new North American Fords like the 2012 Focus, for example, will come directly from Europe.
As for Volvo, the company recently unveiled its 2010 XC60 crossover and a refreshed C70 Convertible, with a new S60 sedan to come early next year. Sources at the company have told TheCarConnection that a future relationship with China would leave Sweden as the center of conception and marketing for vehicles globally, while Chinese engineers could execute the mid-level engineering and manufacturing development. Volvo would also produce a model in a Geely factory in China to expand the brand's global presence.
Ford gave no timeline to complete a sale.
This story originally appeared at The Car Connection
Can The New Audi A1 Help Audi Reach Its Lofty Sales Goals?

Back in June, you might recall that Audi announced plans to roll its new A1 citycar into dealerships by early 2010. The automaker said that the A1 would debut as a three-door model, but that a five-door sportback version would soon follow. At the time, the A1 was slated only for European release.
However, there's a lot of auto news flowing from Germany right now, and among the items crossing our desk is a bit from German magazine Handelsblatt, which reports that Audi's head of sales, Peter Schwarzbauer, does, in fact, want to bring the A1 to America. In the article, Schwarzbauer refers to the "second generation" of the A1 when discussing the model's U.S. release, which could mean the five-door sportback variant.
Schwarzbauer goes on to say that the American rollout of the A1 would be key in helping Audi meet its goal of surpassing BMW and Mercedes-Benz in worldwide sales by the year 2015. That'll be no small feat: according to recent sales figures, BMW has sold nearly 130,000 vehicles to date in 2009, and Mercedes-Benz has sold just under 119,000. Audi, on the other hand, is just above the 52,000 mark for the year, which isn't too far below last year's total of 58,000. In terms of U.S. market share, Mercedes-Benz polls at about 1.7%, Volkswagen is holding steady around 2%, and Audi is at .7%. Mr. Schwarzbauer has his work cut out for him -- at least on this side of the pond.
Audi's goals are made even more lofty by the format of the A1, which falls pretty squarely in the minicar segment in both its three-door and five-door versions. The minicar market isn't an especially strong one in the U.S. -- though with new rollouts from Fiat, Scion, and other European and Asian manufacturers, Americans perception of minicars may change. So who knows? Audi may be able to ride that wave to victory.
On the other hand, this could simply be another case of German overreaching -- like Audi's big brother Porsche succumbed to not so long ago....
[Handelsblatt (Google translation here), via Bloomberg]
This story originally appeared at The Car Connection
Suzuki Swift And New XL7 Headed To U.S.

Suzuki's lineup in the U.S. is looking a little thin now that its partnership with Daewoo is well and truly over, however, the Japanese automaker is planning a raft of new models in coming years, starting with the recently revealed 2010 SX4 SportBack set for launch later this year.
In the next few years, Suzuki will fill its lineup with more Japan-built cars that the company hopes will help improve its quality scores, which suffered with the Daewoo vehicles. One important model is the new 2010 Kizashi, an interestingly styled sedan that is neither mid-size nor mainstream but sits its own semi-premium niche. With a 106.3 inch wheelbase, the Kizashi sits somewhere between the Toyota Corolla and Camry in terms of size and reports coming out of Japan claim that a hybrid variant could eventually be offered by 2011.
After the Kizashi will come the globally popular Swift (pictured). The compact hatchback is due for a redesign late next year and is expected to be offered with a 123 horsepower 1.6-liter gasoline four-cylinder engine when it arrives in the U.S. in 2011.
As for Suzuki's other models, the Grand Vitara is due for a redesign but won't arrive until the 2013 model year, while the XL7 may also be replaced with by brand new crossover based on the same platform that currently resides in the Kizashi. The Nissan Frontier-based Equator, meanwhile, is likely to be phased out after the current model cycle ends due to poor sales.
[AutoNews, sub req'd]
This story originally appeared at The Car Connection
Report: Toyota Plans Yaris-Based Hybrid For U.S.
Honda has confirmed that it will build a hybrid version of its Fit subcompact next year so it's only fit (excuse the pun) that Toyota launches its own gasoline-electric version of its own Yaris. According to latest reports coming out of Japan Toyota plans to launch a new hybrid model that is cheaper and more fuel efficient than the Toyota Prius, and it could be on sale as early as 2011.
The vehicle would be priced around ¥1.5 million (approximately $15,650) and deliver 94 mpg, Japanese newspaper Yomiuri Shimbun reported. Toyota's subcompact Yaris will allegedly serve as the basis for a new hybrid model, though it will feature new styling and a new hybrid system that's apparently less expensive than those found in the automaker's other hybrid vehicles.
According to the report the car will be sold in the U.S., Europe and Japan. Toyota refused to comment on the reports stating that it did not discuss future product plans.
Honda's own Fit hybrid will be based on the regular compact hatch already on sale in the U.S. and is estimated to cost a little over $15,000. Not much else is known about the car but its release date is slated for late 2010.
[AutoNews, sub req'd]
This story originally appeared at The Car Connection
Audi Celebrates 100th Anniversary With Ten-Ton Audi TT

Remember that giant Hot Wheels sculpture that Audi commissioned to commemorate its 100 years in business? Well, today the company added another oversized artwork to its anniversary collection when a 33-foot-long, 10-ton steel frame sculpture of an Audi TT pulled into one of the world's largest parking spots, right outside the company's headquarters in Ingolstadt, Germany. We're happy to see the automaker reach such an important milestone, but with all these giant sculptures, we kinda have to wonder: is Audi, uh, compensating for something? [Audi via JV]
This story originally appeared at The Car Connection
2010 BMW 5-Series GT Replacing U.S. Wagon?

When it introduces the new 2010 5-series GT later this year to American shoppers, BMW may quietly wave goodbye to its traditional 5-Series station wagon.
"It's possible" that the new hatchback GT and its controversially shaped cargo area could take the spot in the lineup occupied by the 2009 BMW 5-Series wagon. The new GT could fit better with BMW's sporting image in the States, and would give the German automaker a more visually distinctive vehicle to sell against the likes of the Mercedes-Benz E-Class wagon, which also arrives in the U.S. in the next nine months.
BMW plans to launch the new 5-Series GT late this year. The first model to make its debut will be a 550i GT, outfitted with BMW's twin-turbocharged, 4.4-liter V-8 engine. Six-cylinder versions, and GTs with xDrive all-wheel drive, will follow in 2010.
TheCarConnection has previewed the 2010 BMW 5-Series GT with technical details and dozens of high-resolution photos; stay tuned for more on the new GT from the 2009 Frankfurt Auto Show in September.
This story originally appeared at The Car Connection
BMW X1 Confirmed For 2011 U.S. Launch

The next couple of years will be very busy for BMW as it launches a handful of new models including new versions of current top sellers and some models we've never seen before. The new X1 falls into the latter category and will take the automaker into the compact SUV market currently dominated by the likes of the Toyota RAV4 and Honda CR-V.
The X1 has been conceived with the flexibility to offer traditional RWD and xDrive AWD configurations, as well as a wide variety of gasoline and diesel powertrain choices. While we will be seeing the compact SUV for the first time in the metal at this September's Frankfurt auto show, the new model isn't scheduled to go on sale in the U.S. until 2011.
It will be released in Europe this fall, however, where it will be offered with a choice of four engines--one gasoline and three diesels--and will be available in both RWD and AWD.

Every X1 will also be available with BMW's EfficientDynamics technology, helping to improve fuel economy and reduce emissions. These will include brake energy regeneration, engine stop-start systems and a gearshift point indicator.
The initial model range will include the 258hp and 228lb-ft of torque xDrive28i 3.0-liter gasoline model, which can accelerate from 0-62mph in 6.8 seconds and reach a top speed of 127mph while returning fuel economy of 25mpg. This will be followed by a 204hp and 295lb-ft of torque xDrive23d, a 177hp and 258lb-ft of torque xDrive20d and sDrive20d, and finally a 143hp and 236lb-ft of torque xDrive18d and sDrive18d.

As for styling, BMW family traits can also be found in the design of the front and rear lights, which resemble those used on the recently revealed 2011 5-series GT and the 2009 7-series sedan, respectively. The shots also confirm that BMW designers have stuck closely to the lines of the Concept X1 showcased at last year's Paris auto show.
Inside, five full-sized seats in an elevated position offer generous space, while the backrest in the rear is also adjustable for angle and folds down in a 40/20/20 split. Luggage compartment capacity may be increased from 14.7 cu ft to a maximum of 47.3 cu ft. An electrically operated Panorama glass roof is also available as an option.

Like the 1-Series BMW sedan, coupe and convertible, the X1 won't be cheap by the time it comes to America. A base price around $30,000 is likely, as is a fully-loaded price above $40,000.

This story originally appeared at The Car Connection
Link Love From The Car Connection: Hyundai Pays Your Bills, Danica Loves Angelina, And Abbey Road Drivers Are Bloody Patient

On the upside, it's Friday. On the downside, we have to finish all that stuff we've been putting off since Monday. Here's some stuff to keep you occupied while we stop looking busy and actually get busy. (Which is different from getting busy, as the kids say these days.)
- Hyundai has your back -- Hyundai's Assurance Program has been a big hit with consumers and is partially to credit for the automaker's double-digit sales growth. (Yes: growth.) Now the company is launching "Assurance Plus", which lets laid-off car buyers coast on three months of payments instead of returning their vehicles to the dealership. It's a brave new world, indeed. [CNN]
- Supercar pr0n -- Chris Barnard is putting another supercar on the road in South Africa. Called, not surprisingly, the Barnard, it boasts a chassis based on the Porsche 962, a twin-turbocharged V8 engine, and around 617 ponies. It's certainly not the most powerful or innovative supercar we've seen, but it's a looker, that's for sure. [MotorAutority]
- What, Jessica Alba's not good enough? -- We love Danica Patrick--obviously--but this short clip of the Indycar star makes us wonder what's she's like in real life. Is it presumptuous and maybe a little self-aggrandizing to want Angelina Jolie to depict you in a biopic? Not that we think Bea Arthur would do a better job, but still. [Jalopnik]
- Today's your lucky day -- Got $3000 burning a hole in your pocket? Need a weekend project to fulfill your OCD tendencies? Weigh less than 200 pounds? Well, friend, the BugEV was made for you--or it will be, as soon as you make it. [AutoMotto]
- Friday music lagniappe --Australia's Blame Ringo haven't gotten much play in the states, but the video for "Garble Arch"--the first single off the band's new album, "Lucky Number 9"--is absolutely worth a look. It's a day in the life of a certain famous crosswalk at Abbey Road, featuring all the touristy shenanigans you might expect, plus some very tolerant drivers. [via DRB]
This story originally appeared at The Car Connection
Link Love From The Car Connection: Holiday Edition

Here's a list of recent news items we caught just before they slipped through the cracks. Hopefully, they'll keep you busy in-between eggnogs over the next few days. Enjoy your holiday--from work and from us. We'll see you soon!
Toyota is still feeling the crunch: Toyota's second-ever loss is making big headlines (you heard it here first--or second, maybe!), but the automaker's problems don't stop there. Apparently Toyota has called up Subaru and postponed the release of the "Toyobaru", a sports coupe the companies were co-developing for a 2010-ish launch. On the bright side, maybe that will give both sides a chance to rethink the name "Toyobaru".
Japanese freeways are just as crunched as the economy: Judging from some of these pics of Japan's highway system, maybe the country could do with fewer cars. When you're running freeways through office buildings, it's probably time for an intervention.
Gaywheels taps their tops: Our friends at the GLBT-oriented site selected 20 diverse vehicles that are "perfect for us, for families, for dates and clubbing, and cars and trucks notable for their new looks, new hardware and new attitude." Strangely, the Popemobile didn't make the cut--but then, I think it's an older model.
The Jonas Brothers play the Detroit auto show: Because clearly Ford, GM, and Chrysler aren't feeling old and dinosaurish enough already.
Ferrari motorcycle could solve your last-minute shopping dilemma: Yes, apparently there was an officially licensed Ferrari bike manufactured in the 90s, and now someone's trying to unload it. Personally, I know someone who'd love to see that under the tree tomorrow--if only you've got £180,000 to throw around. Yeesh.
Pigeons have expensive tastes: There's no real evidence that pigeons prefer dumping on Corvettes instead of Camrys, but in Arizona last Friday, their droppings did lead to the collapse of a gas station awning, knocking out a BMW and a Hummer in the process. Mercedes owners: you've been warned. [via Autoblog]
Union left out of talks with Bush: UAW President Ron Gettelfinger is complaining that the labor union was left out of the recent bailout negotiations between automakers and the Bush administration. My guess would be that Bush preferred to streamline the talks, but he might have just been concerned about having so many steel-toed boots in one room.
Students use rubber bands for good; paper footballs feel left out: Johns Hopkins students tackle the challenge of locomotion via rubber band, which re-opens an interesting can of worms.
Penske takes a rating cut: Moody's Investors Service came out swinging for auto dealer Penske Automotive Group. The credit agency has given Penske a negative rating, meaning a variety of things for the company--none of them good.
Propellerheads use iPhone, Wii to remote-control toy truck: Just make sure the kids don't watch the video, or you'll spend most of tomorrow morning hacking instead of getting properly sauced.
Change comes to Detroit--and the nation: On a more serious note, columnist Daniel Howes had a very thoughtful piece in Tuesday's Detroit News. He talked, of course, about the Big 3 crisis, but rightly pointed out that the bailout is little more than a band aid; to really solve Detroit's problem, automakers will have to wage a war for the hearts and minds of Americans. Give it a gander after you've finished your third helping of holiday ham. (And don't say you don't take thirds.)
--Richard Read
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This story originally appeared at The Car Connection
