Men Free Blog

BMWBMW has achieved sales increases in the US for 16 straight years, but that impressive streak is going to end in 2008. BMW USA CEO Jim O’Donnell has decided to stop shipment of 44,000 vehicles destined for the States by the end of this year. The move was made to prevent pushing increased sales in a down market because too many incentives were needed to entice consumers. The weakness of the US Dollar vs. the euro makes high incentives unprofitable. Some vehicles, like the X3, are coming to the US in smaller numbers even though they are selling well without incentives. Leases are also a cause of concern, with 63% of its vehicles leaving BMW showrooms with a down-payment and a mileage limit. O’Donnell wants to cut that number by 10% or more, and in August, leases were down to 50% of sales.

The German automaker is also looking to cut expenses in the U.S, with plants to slash 90 jobs in the States, along with reducing marketing expenditures. The largest short-term change is that BMW will not end December with a high incentive sales blowout, which means if you’re waiting for the big Bimmer sales event, it probably won’t happen.

Auto sales are tough around the globe and production cuts are occurring on a regular basis. Jaguar is planning to slow production at its Castle Bromwich plant by the end of the month in response to slow global sales. The XJ and XK output will be slashed due to a lack of demand. The production cut comes a month after Jaguar’s Tata-owned stablemate, Land Rover, cut its Soilhill facility to a four-day work-week in response to slow sales. One bright spot for Jaguar is that UK sales are up a substantial 12%, due mostly to the hot-selling XF sedan. Although Tata has seen some success with the XF, the Indian automaker’s reign over the British luxury marquees so far has been less than spectacular. Ford, on the other hand, has two less problem brands on its hands.

The Tata Nano, which will be the world’s least expensive car, has already exacted enormous sums of money and time. A dispute over the location of a new factory has cost Tata close to a year of court wrangling and might end up spoiling a £200 million investment. Now the efforts to build the Nano have cost a life.

Unhappy workers were invited to a meeting with Indian and Italian executives of Cerlikon-Graziano Transmissions, which makes auto parts, to discuss reinstatement. Only a few workers were in the meeting, but more than a hundred were waiting outside. When those outside heard someone inside call for help, they rushed in, and in a mob fog anger, bludgeoned the company’s operations head, Lalit Kishore Choudhary, to death.

It was later reported that some of the folks involved in the melee weren’t even employees of the company. What Tata will need to urgently figure out is where it needs to go — inside or outside of India — to build the Nano without backlash. In the mean time, our condolences go to the Choudhary family. Thanks to all who tipped in.

The 2011 Chevy Volt has been getting the lion’s share of news on the EV front, but it could be jostling for attention in late 2010 with an all-EV sedan from Tesla. Tesla has secured $100 million in private equity and another $150 million in loan guarantees from the federal government to build a new factory in San Jose, CA. The company on Wednesday announced that the facility would build the $60,000 Model S sedan, which was originally dubbed Whitestar. The new Tesla plant will be able to produce 11,000 Model S sedans per year by the end of 2011, giving customers a much more mainstream EV entry than the $100,000 Tesla Roadster.

We haven’t heard too much about the Model S sedan, but earlier in the year Tesla co-founder Elan Musk said there could be a fully functioning prototype and a finalized design by the end of 2008. We’re with you in hoping it looks as good as the Tesla Roadster while providing similar range in a more family-friendly package.

If the recent onslaught of spy shots is any indication, development is well under way for the successor to the Pagani Zonda. AMG is once again developing the engine especially for the supercar – tentatively known as the C9 – which means that the new Zonda has to undergo the same exhaustive battery of tests as any new Mercedes. Just as well, because the new C9 is expected to be produced in far greater numbers than its extremely exclusive predecessor.

To gear up for that kind of production, which, aside from the engine, is built entirely in-house, Pagani is preparing to open a brand new factory. The new facility in Modena, Italy, the heartland of supercar country, will be three times larger than the existing factory and is slated to begin operation in 2010 when the new C9 will hit the streets.

Factory Five currently sells the most popular Shelby Cobra kit by far. One of the reasons that more people build the FFR Cobra than all other Shelby kits combined is that it’s the easiest one to finish, as it comes with everything needed minus a donor Mustang. That same philosophy is behind the new ‘33 Hot Rod kit from FFR. Any small block Ford V8 engine will fit, along with the buyers choice of transmission and a Ford rear end. The benefits to starting with a completely new foundation rather than an existing Ford product from the ’30s are apparent when you take a look at that triangulated tube chassis and its in-board coil-over front suspension. Plus, with just 2110 pounds. to push around with its fiberglass body, this is one ‘33 that will have no problem getting out of its own way.

Want one? The kits are currently priced at just under $20K and are shipping now. A short wait ’till December will ensure that no parts are on back-order. That should give you plenty of time to source an appropriate engine, transmission and rear axle and rolling stock. Now, all you need to do is pick a color.

Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog’s keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar’s many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends up owning the facility, the plant would still use the union workforce being abandoned from the soon-to-close Detroit Axle plant.

Even in a down pickup truck market, the all-new Dodge Ram should be a boon to Chrysler and not just because it’s a far better truck than the one it replaces. The new Ram will also be the next Nissan Titan, a deal that helps Chrysler keep its truck factories running closer to maximum capacity. With Nissan borrowing Ram mechanicals and engineering, the assumption has been that Chrysler’s 5.7L HEMI V8 was going to be part of the package. Nissan officials have continually denied that any decision about the truck’s engine of choice has yet to be made and that its own Evolution 5.6L powerplant was still under consideration.

Chrysler chairman Jim Press put any speculation to rest when he declared at an LA Motor Guild meeting recently that the Nissan Titan would indeed receive HEMI power. After our friend Mike Levine from Pickuptrucks.com broke the news, Nissan responded by saying that it has made no decisions concerning the HEMI engine and when it does, the announcement would come from Nissan. It makes sense that the next Titan would be HEMI-fied, especially considering that the engineering needed to mate the HEMI and Ram platform has already been done and paid for, and part logistics are already in sync with truck assembly. Plus, the new HEMI produces a class-leading 390 horsepower and gets decent fuel economy for a big, burly truck engine. Nissan could do much worse.

News flash: small cars like the Ford Focus are selling beyond expectations (ours anyway) while trucks and SUVs are sitting on dealer lots much longer than auto manufacturers would like. For this reason, Ford is moving as quickly as possible to switch a few of its truck plants into car plants, including its Michigan Truck plant where behemoth SUVs like the Expedition and Navigator were being built. The switchover is going to cost the automaker since these are not flexible manufacturing facilities, with the first bit of retooling ringing the registers to the tune of $75 million bucks — and that’s just for a new bodyshop. The total cost to retool the plant will be in the hundreds of millions. As they say, it takes money to make money. While the plant is being refurbished, workers will be shuffled to the nearby Wayne plant to build even more Focuses. The best bit of news, though, is that Ford will finally be building its small cars from Europe at its converted truck plant, the ones we’ve all been asking for since the Euro-Focus got a new platform and we didn’t. Not that we’re still sour or anything…

Employees at Jeep’s factory in Toledo, Ohio reported back to work this week after two months of mandatory downtime. The good news is that they still have their jobs; the bad news is that they’ve been told to expect another four weeks off before the end of the year. This time, however, the shutdowns will be scheduled in week-long intervals instead of covering an entire four-week period. The slowdown of SUV sales has been widely covered and the Jeep brand has not been immune, including its bread-and-butter Wrangler model that had proven extremely popular a short while back when the first-ever four-door version was unveiled. Of course, back then gas was below $3 a gallon. Besides the Wrangler, Jeep also makes the Liberty and Dodge Nitro at the Toledo plant.