Daimler got caught with their pants down this year when Audi passed Mercedes-Benz for the first time in history to become the world’s number two luxury car maker. That won’t be the case if they have their way next year.

According to internal documents obtained by Automotive News, Daimler is spurring Mercedes to increase output by 13 percent next year to more than 1.4 millon passenger vehicles. Those numbers don’t include their Smart or soon-to-vanish Maybach brands. With those figured into the mix, the company projects 1.52 million vehicles next year, though a Daimler spokesperson declined to comment on the goals.

“Mercedes-Benz is going on the attack,” Daimler board member for manufacturing and procurement Wolfgang Bernhard said in a press release. “We are securing our path to the top by extensively investing in the expansion of our high-performance production network.”

Mercedes fell to third place this year despite breaking company records by selling 1.25 million cars and SUVs.

[Source:Automotive News]

GALLERY: 2012 Mercedes-Benz C Class

[Source: Automotive News]

Circuit of the Americas is halting of the Formula One circuit in Austin, Texas, effective immediately.

The organizers came to this decision after they didn’t receive a contract to assure that the Formula One United States Grand Prix will be held at their venue.

“We have spent tremendous resources preparing for the Formula One and MotoGP Championship races, but the failure to deliver race contracts gives us great concern,” said Bobby Epstein, founding partner of Circuit of The Americas in a press release. He went on to say that more than 100,000 fans expressed interest in the event.

The track would be the first purpose-built Grand Prix facility in the United States, but it seems that construction which otherwise had proceeded as expected, will only continue with a contract.

The announcement came shortly after Texas state comptroller Susan Combs said there wouldn’t be money paid out until after the race takes place.

That stacked on top of Formula One boss Bernie Ecclestone’s $25 million sanctioning fee means the whole thing faces serious challenges.

[Source: AutoWeek]

Slow sales by Fiat are causing layoffs for workers in Chrysler‘s Global Engine Manufacturing Alliance Plant in Dundee, Mich., responsible for building the 1.4-liter FIRE engine used in the 500.

The actual numbers behind the layoffs are, however, in dispute. Tom Zimmerman, the plant’s unit chairman for UAW Local 723, said in an interview with Automotive News that more than 25 percent of the plant’s 400 hourly workers were laid off.

Jodi Tinson, a Chrysler spokesperson, said that only 30 people had actually been laid off, and that another 35 were assigned different jobs in the plant.

Regardless of which figure is accurate, there is no denying that Fiat sales failed to meet expectations in the U.S. The company originally projected 50,000 units annually, but had sold less than 32 percent of that by October 31.

Chrysler will unveil the North American version of the Fiat 500 Abarth at this week’s Los Angeles Auto Show, featuring a 160-hp turbocharged version of the 1.4-liter engine.

Gallery: 2012 Fiat 500

[Source: Automotive News]

The rising yen is making exports from Japan increasingly unprofitable and Honda is looking to cut vehicle exports by 50 percent over the next 10 years as a response to the change in currency valuations.

Honda hopes to sell as much as 90 percent of its vehicles in markets that can use locally sourced vehicles. Honda operates a number of regional plants in Asia, Europe and the Americas to help limit exposure to currency fluctuations.

The Japanese automaker will rely on 660cc-minicars, known as kei cars, to help strengthen their market share position in Japan, where demand for traditional cars has been steadily contracting. Currently, Japanese exports make up 34 percent of Honda’s output, but the company hopes to reduce that to between 10 and 20 percent by 2021.

[Source: Automotive News]

While General Motors seemed desperate to sell Opel back in 2009, GM CEO Dan Akerson now says that the terms of the sale were a “bad deal” and that Opel, along with GM’s other global divisions, are now profitable.

Nick Reilly, GM’s European president, said that GM Europe will be profitable – albeit not by much more than the break-even point – once the 2011 restructuring plan has finished at the end of the year. ”In 2012, we won’t have those restructuring charges,” Reilly said. “They’re mostly done. We’ll get the full 12 month benefit of the restructuring that we’ve done.”

[Source: Automotive News]

General Motors has its hands in all corners of the globe, and while most consumers know about their operations in Europe and South Koreas, their arm in the former Soviet Republic of Uzbekistan is shaping up to be quite the powerhouse in the all-important Russian market.

Despite only being in existence since November, 2008 GM Uzbekistan’s operations are credited with a 40 percent rise in sales in the first half of 2010. With 45,217 Uzebkistani-made vehicles sold, GM ranked 10th overall in the Russia market. While GM produces mostly modern Daewood-engineered vehicles in Uzbekistan, consumers can also buy the Chevrolet Nexia (pictured above) based on the wretched Pontiac LeMans which originally debuted in 1986.

The Cars franchise is about more that just marketing and merchandising. In fact, the characters of Cars 2 (in theaters June 24) has teamed up with the Department of Transportation (DOT), to help fight distracted driving with a new public service ad.

Staring Lightning McQueen and Tow Mater, the 30-second PSA is called, “Only the bad guys drive distracted.” Basically, it reminds drivers of a very important message: “No calling, no texting. Nothing that can take away your focus.”

This PSA can be seen in more than a dozen countries and various languages. As well, DOT is working on using the ad as part of the Make Roads Safe campaign for global road safety.

This isn’t the first time the National Highway Transportation Safety Administration (NHTSA) has worked with Disney on driving safety campaigns. You may remember the re-release of Cinderella in 2005 urging parents to fit their children properly in booster seats.

You can watch the Cars 2 PSA after the jump.

[Source: Consumer Reports]
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The National Highway Traffic Safety Administration is investigating the possibility of making keyless ignitions a mandatory item for cars, as a means of providing drivers with a way to shut off the engine quickly in case of emergencies.

NHTSA is also considering banning the devices altogether, and mandating the use of a physical key, since the public is already familiar with their workings – although it seems nonsensical in light of the all-or-nothing nature of their proposed regulation.

The Society of Automotive Engineers has already drawn up technical standards related to the keyless ignition systems, and these would be adopted by NHTSA should the push-start technology become mandatory. The main stipulation of the proposed rule would be a common method to shut off the engine, involving a multiple second push of the start button, or something similar.

[Source: Automotive News]

For all the fuss about Hyundai‘s success in the United States, the Korean automaker is making even bigger waves in Canada, where the brand reigned supreme for Q1 of this year.

While truck sales far outpace car sales in Canada (just like in America – and both markets are topped by the Ford F-Series), Hyundai managed to beat out everyone else in passenger car sales, besting Toyota (including Scion and Lexus) by 219 units and GM by 1,654 units, for total sales of 18,704 cars.

But the race is hardly over, and without a proper truck, Hyundai still lags behind Ford, GM and Chrysler, were which buoyed by their lineup of pickups and other truck-based products. It’s interesting to note that Canada’s light-truck sales are still strong even in the face of higher gas prices (the $4/gallon threshold was passed long ago). On the other hand, passenger cars sold in Canada tend to be small compacts, and Hyundai chose to reveal their 2012 Accent at Canadian auto shows before they made their American debut. With the Accent, Elantra and Veloster all capable of 40 MPG, the brand looks well positioned to do very well in the Canadian marketplace, even if it is a relatively small one.

[Source: Sympatico Autos]

Toyota is the latest automaker to adjust their North American production schedules, with plants idling on April 15, 18, 21, 22, and 25. Toyota’s engine and component factories will follow a similar schedule, while their Georgetown, Kentucky facility will remain open on April 21.

Employees at the plants will have the option of report to work for training programs, use vacation time or take unpaid days off. While Toyota claims that 85 percent of their parts are sourced from North America, the fact is that one missing part, no matter how inconsequential, can halt an entire production line for indefinite periods of time, and this phenomenon is something that will be a common occurrence during these next few months.