Honda CEO Takanobu Ito stepped up and assumed responsibility for the Honda Civic’s miserable start in the United States, telling Automotive News that ”The ultimate responsibility rests with me.”

The Civic was left off the Consumer Reports list of recommended vehicles, a rarity for any Honda product. Cheap interior materials were blamed, and many reviewers reported dull styling and driving dynamics as other disappointments. Civic sales are down 15 percent this year, and Honda product planners are hoping for a model refresh as soon as 2013, well ahead of Honda’s usual vehicle schedule.

While Honda decided to stick with a smaller footprint and reduced content for the new Civic (betting on a downward economy) competitors like Hyundai, Chevrolet and Ford went in the opposite direction, offering advanced features like backup cameras, self-parking, powerful engines and bold styling. This approach won out in the end, with the Hyundai Elantra, Chevrolet Cruze and Ford Focus reporting strong sales in the segment.

[Source: Automotive News]

The head of Toyota‘s Prius program thinks that Toyota will be able to sell as many as 1 million hybrids anually by 2015. Satoshi Ogiso, who was responsible for developing the original Prius, said that hybrids could sell as many as 2 million units by 2020.

Toyota Hybrid sales topped out at 690,000 in 2010, and many felt that if it weren’t for March’s earthquake and tsunami, the pace of sales would have accelerated even further. Prius sales (including the Prius c, Prius V and other variants) will account for half of hybrid sales.

Ogiso said that model line-up expansion would be kept under control for the Prius, but some expansion may occur. A sports car model was also hinted at, but appears to be some ways off.

[Source: Automotive News]

An alert reader spotted a lightly disguised Subaru BRZ on what appears to be a California freeway. Clad in only a tiny bit of camo, the spy photos don’t reveal much more than we’ve already seen, but are a neat look at the hotly anticipated Subaru sports car.

Aside from the shared RWD platform and 2.0L boxer engine, Subaru hasn’t announced official specs for the car. The BRZ will get its official reveal at the Tokyo Motor Show this week, though official pictures were released earlier.

Check out the gallery below as well as  SubaruBRZForum.com for more information.

Gallery: Subaru BRZ Spy Shots

While the Chevrolet Volt has struggled a bit to get traction in the marketplace, Nissan‘s all-electric Leaf is well on pace to sell 10,000 units in the United States, meeting its initial sales targets.

60 percent of all Leafs sold are in California (no surprise there), but we’ll get a better regional breakdown sometime later this week. Globally, the Leaf will have sold about 20,000 units in a year. Check out our review here and you’ll see why the car’s been so successful – it’s a blast to drive (for the right kind of driver, that is).

Our spy photographers have done it again, this time finding the 2013 Mercedes-Benz S-Class in the wild.

The S-Class is an important product for Mercedes, but this generation has the added burden of replacing the now-dead Maybach sedans, as well as acting as the flagship for Mercedes-Benz.

Expect to see VIPs, celebrities and African desposts chauffeured around in these starting in 2013. There’s a good bet your local hedge fund manager will have one, too.

Check out the video after the jump

Continue Reading…

An article in Automotive News suggests that the Cadillac ELR, which will share major driveline components with the Chevrolet Volt, will actually be rear-wheel drive.

The report states that the ELR has been dubbed a 2+2, meaning two small seats in the rear, similar to a Porsche 911. The Volt uses a t-shaped battery pack that is adapted for a front-drive layout, but a 2+2 configuration would allow for the battery pack to be mounted in such a way as to clear a driveshaft sending power to the rear wheels.

Rick Kranz, the author of the piece, suggests that rear seat room would be compromised, but the 2+2 layout of the coupe – plus the use of the rear-drive platform shared with the Cadillac ATS – would allow for Cadillac to justify a price premium over the Chevrolet Volt, something that new sheetmetal and an advanced infotainment system would not be able to achieve. If this report turns out to be accurate, then the ELR could be a game changer, as the first front-engine rear-drive electric car on the market.

[Source: Automotive News]

Toyota has announced that starting in 2013, it will sell Lexus vehicles in India. No specific products were announced for sale, but likely contenders include the LS and GS sedans, as well as the RX crossover. Given India’s less than perfect roads, the LX and GX SUVs (based on the popular Toyota Land Cruiser SUVs) may also make it over.

While Lexus has been around for over 20 years, the brand didn’t expand beyond North American and Europe until 2o05. Asia, Russia the Middle East and now India are its latest conquests, and Toyota is hoping to repeat its success in markets like The United States. Unlike some luxury manufacturers, like Mercedes-Benz, Toyota will import Lexus vehicles from Japan and elsewhere. Mercedes chooses to assemble vehicles locally to avoid expensive import duties.

[Source: Left Lane News]

While Chevrolet is readying a diesel version of their Cruze compact in 2013, an interesting tidbit of information leaked out regarding another gas-saving variant of the Cruze – a plug-in hybrid model.

Australia’s GoAuto reports that the Cruze will be a traditional plug-in hybrid, where the engine and hybrid system work in tandem, rather than the Volt, which is described as an electric vehicle with a range-extending gasoline engine. “Plug-in Cruze doesn’t make Volt redundant at all. Plug-in Cruze would have a different powertrain. Plug-in hybrids use both the engine and motor all the time,” said Jim Frederico, who is in charge of General Motors’ small electric vehicle program. “The plug-in Cruze has a place and it will be a hybrid.”

GM is testing an all-electric Cruze in South Korea currently, but so far it remains an experimental vehicle. A Cruze plug-in could debut as early as 2014, given the car’s strong sales and the introduction of the diesel version in 2013 (which a plug-in version would likely overshadow).

[Source: GoAuto]

Volkswagen is out testing the 7th generation Golf, as seen here in spy shots, and the new car looks like it will retain much of the current car’s styling, but get a lower, wider and more aggressive profile.

For North America, expect the 2.0TDI diesel to carry over, but the base 2.5L 5-cylinder is out, to be replaced with a 1.8L turbocharged 4-cylinder (based off of the much-loved 2.0T motor). Golf production may move to the United States, but Volkswagen has been very tight lipped about details, as it remains Volkswagen’s bread-and-butter car in virtually every market except the United States,

Gallery: Volkswagen Golf MKVII

Robert Kubica, one of Formula One’s most promising young drivers, will sit out the start of the 2012 F1 season as he continues to recover from a crash that partially severed his arm.

While Kubica is making a recovery, the pace is not as rapid as some had hoped for. Kubica can move his arm, but it remains unknown whether he is physically fit enough to drive a Formula One car at this time.

Kubica was driving a Skoda rally car in an Italian race when he crashed into a barrier that penetrated his car and nearly sliced off his arm. Kubica was replaced before the start of the 2011 season by Nick Heidfeld and Bruno Senna. Renault will have to look for a replacement for 2012, but says that Kubica has a test car and a crew of mechanics at his disposal when he is ready to return.

Hit the jump to see the official press release

Continue Reading…

BMW and Toyota are in talks for a technology sharing agreement, one that would reportedly see BMW provide Toyota with a diesel engine for its midsize cars in Europe.

Specific timetables and other details were not announced, but Toyota is believed to be pursuing the deal to help offset the increased cost of importing Japanese-built hybrids due to a rising yen. Toyota would likely end up sharing its vaunted hybrid technology with BMW in return.

Toyota and Ford recently signed a similar agreement regarding hybrid SUVs, while BMW and PSA (parent company of Peugeot and Citroen) signed one for hybrid subcompacts.

[Source: Reuters]

BMWs in certain markets may be getting a “Made In China” code in their VIN numbers starting at the end of 2011, as the company plans to export Chinese made 5-Series sedans to certain markets.

The Truth About Cars quotes the CEO of BMW’s Chinese operations as stating “We will find some markets, maybe in the Middle East, somewhere in Asia, or some other markets that welcome the products where we can test this export effort. The main market of course is here (in China), because we can’t even supply enough here.”

The 5-Series is built in China as part of a joint venture with Brilliance. TTAC’s China expert Bertel Schmitt claims that the quality of cars built in Chinese/foreign joint ventures is no worse than vehicles built in Japan, America or any other country (and sometimes better). The 5-Series is a popular vehicle in China, with a long-wheelbase version regarded as a status symbol for wealthy Chinese who can afford a driver.

[Source: The Truth About Cars]

Vladimir Antonov, the Russian “businessman” who attempted to buy Saab earlier in the year, has been arrested in England over charges of involvement in a massive money laundering scheme in Lithuania.

Antonov, owner of Portsmouth F.C. (a British soccer team) and his partner Raimondas Baranauskas, were released on bail and ordered to surrender their passports. Both are due to be extradited to Lithuania, where authorities say the two embezzled hundreds of millions of dollars from Lithuanian bank Snoras.

Antonov previously tried to buy Saab, but his attempts to purchase it were disrupted by creditors and other parties, amid allegations of financial impropriety.

[Source: The Bellingham Herald]

Mercedes-Benz‘s Maybach luxury brand will be axed, much to the consternation of rappers (pictured above), athletes and insipid nouveau riche types everywhere.

While Mercedes had high hopes for the brand, Maybach’s sales have slumped to around 200 units annually, whereas targets called for sales of 1,000 cars per year. Daimler CEO Dieter Zetsche told German Newspaper Frankfurter Allgemeine Zeitung “It would not be sensible to develop a successor model for the current Maybach.”

Ultra-luxury versions of the next Mercedes-Benz S-Class will replace the Maybach in 2013.

[Source: Automotive News]

The North American version of the rear-wheel drive Subaru BRZ sports car will bow at the North American International Auto Show in January, 2012, but what exactly that means is anyone’s guess.

No details regarding changes between the North American version and the rest of the world were announced. The car’s basic layout and 2.0L Boxer 4-cylinder with direct injection will remain, as well as the available 6-speed manual and automatic transmissions. We’re guessing that some trim and equipment may be different – Japanese market vehicles have been known to offer a plethora of trims and options while North American versions generally get one or two distinct trims and option packages, to make ordering easier for dealers (versus the built-to-order phenomenon in Japan).

AutoGuide will be on hand at the Tokyo Auto Show as well, where the first glimpse of the production Subaru BRZ will be available.

Discuss this story at SubaruBRZForum.com

Kia design boss Peter Schreyer took Automotive News reporter Ryan Beene on a tour of the Los Angeles Auto Show, outlining his favorite designs of the show floor.

The big winners for Schreyer were the Range Rover Evoque (“If it wasn’t labeled a Range Rover, you’d recognize it as one”), the Porsche 911 and the Mazda MX-5 (with Schreyer stating he’d “…love to have a car like that for Kia…).

Shcreyer also discussed how styling cues were propagating across numerous manufacturers (such as the beltline of the Mercedes CL becoming ubiquitous) and how SUVs were becoming more car-like (describing the Honda CR-V, for example, as “…more harmonized and not so aggressive.”)

Of all the vehicles though, Schreyer seemed to love the Mercedes-Benz SLS AMG the most. He described it to Beene as “…the most ‘Mercedes’ Mercedes.”

[Source: Automotive News]

See AutoGuide’s Top 10 Cars of the LA Auto Show Here

“Reclaimed” is one of those buzzwords that’s come along in the last year or two to described mundane things like dead wood that’s been turned into a high priced consumer good. Think of a tabletop made from “reclaimed wood” and sold at a premium in a bougie furniture store and you get the idea.

French artist Charly Molinelli has taken the “reclaimed” idea to a new level with this (admittedly awesome) Ferrari coffee table made from a vehicle so mangled that we have no idea what kind of Ferrari it started life as.  The piece was (obviously) comissioned by a wealthy patron of Molinelli’s and is said to have cost well into the 5-figures. Special wood was also procured to “stay with the concept of recycling.” That strikes us as a bit rich when dealing with a piece like this, but we’re not going to lie and say we don’t want one of these for our living room.

[Source: Autoblog UK]

Even as the Occupy movement is being disbanded around the world, one branch of the movement just had a resurgance, as Saab fans “occupied” the Facebook page of General Motors.

Saab fans blame GM for holding up the sale of Saab to their potential saviors - whoever they may be (so far it’s been Russian businessmen, American private equity investors and now, a Chinese automaker) but GM has expressed concerns about intellectual property getting into the wrong hands. GM definitely has a point, and we’re not sure if juvenile tactics like this will help advance the cause of Saab fans. Perhaps the opposite.

12. Toyota Camry

While automakers and outside research firms publish sales figures and earnings reports on a regular basis, one metric we rarely get a glimpse of is how profitable each vehicle is. In an era of re-badging and platform sharing, one would think that the most profitable vehicles are those with a large number of derivatives to spread the cost around. But a new report from Bernstein Research suggests that two factors – price point and volume – are the keys to making big bucks off vehicles. And judging by the list, longevity seems to help as well.

Number 12 on the list is the Toyota Camry, and for good reason. The Camry has a number of factors in its favor – massive volumes, an accessible price point and its made in America (currency fluctuations, particularly a rise in the euro or yen, can make exports unprofitable). Bernstein’s report notes that high volume cars at a medium price point are one of the keys to profitability, and the Camry might be the textbook definition of this formula. The Camry’s twin, the Lexus ES350, was absent from the list, but no doubt earns its keep, as a gilded version of the Camry.

Honda announced today that they would use excess capacity at their Alabama plant following a $300 million investment in the facility. The investment will allow for a total of 340,000 units anually.

Rising exchange rates are forcing Honda to devote more resources to North American production while reducing exports. Honda will shift their Acura MDX luxury SUV to the plant from their Canadian factory in Ontario, and use their Ontario plant to produce the 2012 Honda CR-V crossover.

[Source: Reuters]

Sergio Marchionne, head of Fiat, told reports that he expects combined sales of Fiat and Chrysler vehicles to hit 6 million units by 2014. Marchionne’s remarks come even in the face of declining auto sales in Europe, as well as an overall shaky economic climate.

Marchionne said that he was reviewing Fiat’s 2012 European targets, but that overall strength in the U.S. market and strong growth in Brazil had helped contribute to a successful year. He also stated that Fiat and Chrysler would not merge in 2012.

Speaking at a conference in London, Marchionne also expressed his vision for the future of the car industry, with consolidation as a key theme. ”We’re bound to see the elimination of marginal players going forward, I believe we’ll end up with just five to six players whose success will be based on sharing architecture, at a global level,” he said.

[Source: Automotive News]

Tata Sons has named Cyrus Mistry as its next CEO, as current CEO Ratan Tata prepares to retire. The unmarried, childless Tata named Mistry as CEO of the holding company responsible for Tata’s numerous divisions, among them their automotive sector which owns Jaguar and Land Rover, along with the namesake Tata Motors brand.

“The appointment of Cyrus P. Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and caliber of his participation, his astute observations and his humility,” said Tata, in a statement.

Mistry’s father is Tata’s largest individual shareholder, with an 18 percent stake in the Indian conglomerate. He is currently head of another Indian corporation, the Shapoorji Pallonji group, and will assume full responsibilities in December, 2012 when Tata steps down.

[Source: Automotive News]

Even as General Motors readies their new Chevrolet Colorado mid-size pickup, Ford and Chrysler are hedging their bets that consumers won’t return to the floundering small truck market, and continue to opt for full-size pickups instead.

General Motors has claimed that the new Colorado will do most of what a full-size truck can do with substantially reduced running costs. GM’s strategy appears to hinge on rising gas prices and a general trend towards more fuel-efficient vehicles. On the opposite end, Ford is killing off its Ranger pickup entirely, and will offer a replacement in world markets, but not North America. Thailand will be a big market for the Ranger (it’s the world’s largest mid-size pickup nation) and much of the Colorado’s development work was done there.

Studies have shown that the current mid-size truck entries are actually costlier to own once depreciation is factored in. Fuel economy advances in the full-size segment, along with the macho image of a full-size truck have helped contribute to the demise of the mid-size pickup.

Chrysler, which recently killed off their Dakota mid-size pickup, is still exploring whether to bring a new smaller truck to market, with spokesman Dave Elshoff telling Automotive News “We believe there is still a substantial market for small pickups,.. “We’re studying the demographics and business case for a small Ram pickup
.
[Source: Automotive News]

Canadians should get ready to kiss the Chrysler Town and Country goodbye, as Chrysler seeks to trim its minivan lineup down to a single nameplate – but the opposite will be occurring in the United States, with the Dodge Caravan getting the axe, as the Caravan will now become the exclusive minivan sold by Chrysler LLC in the Great White North.

The Caravan is wildly popular in Canada, accounting for 70 percent of the Canadian minivan market alone, and is the third best selling nameplate in the country. Unlike the United States, the Caravan is sold at a number of price points, from a sub-$20,000 base model to premium versions that breach Dodge’s usual $30,000 price ceiling. Caravans are popular as commercial vehicles, family haulers and even as police cars in a number of locales.

On the other hand, the Town and Country outsells the Caravan by a 2:1 ratio in the United States, which has a far smaller minivan segment. Chrysler CEO Sergio Marchionne said that two minivan replacements would bow in 2013 – a large three row crossover, as well as a traditional minivan with sliding doors.

When the changeover occurs, the Town and Country will be the only nameplate left standing in America. But things seem to be moving in the opposite direction for the Great White North.

[Source: Detroit News]