It’s no real surprise, but automotive manufacturers are turning into incorporating apps into their infotainment systems and it appears that General Motors wants to be the first to trademark the words “App Shop” and “Appshop” for their Chevy MyLink system.

The filing for the trademark was described in the following way:

“Computer software to manage connectivity of downloaded software applications with motor land vehicle electric, information and entertainment systems.”

In addition to, “Online retail platform featuring computer software to manage connectivity of downloaded software applications with motor land vehicle electric, information and entertainment systems.”

The Chevy MyLink system is being incorporated in the 2012 Equinox, 2013 Malibu, Volt, Spark, and Sonic. It wouldn’t be a surprise to see a majority of automotive manufacturers to be employing an app store of some sort in their infotainment systems in the years to come, given how popular the word “apps” has become over the last few years.

[Source: GM Authority]

Cadillac‘s 2013 XTS will get new safety features starting this fall that make it GM’s most technically advanced production car to date.

Known as sensor fusion, GM’s latest safety system uses a complex mix of tools to alert drivers of potential hazards. Essentially, it combines GM’s list of safety technologies and as the name would suggest, fuses them to provide a greater level of information to the driver than was available on past GM vehicles.

“We believe sensor fusion will enable future active safety systems to handle a greater number of inputs to provide 360 degrees of crash risk detection and enhanced driver assist features,” said Bakhtiar Litkouhi, GM Research and Development lab group manager for perception and vehicle control systems.

While the alerts XTS drivers will enjoy aren’t new, the way GM is integrating them into one system is.

“A system that combines the strengths of multiple sensing technologies and expertly manages those inputs can provide advisory, warning, and control interventions to help drivers avoid collisions and save lives,” Litkouhi said.

Looking into the future, GM says sensor fusion is a step toward autonomous driving, something we’ve already seen Volvo and BMW working on.

Beyond that, the company is using their sensor technology to help develop other systems like LIDAR, a light detecting and ranging technology that uses laser pulses to measure an upcoming vehicle’s proximity to the driver.

For more info on GM’s sensor fusion system, watch this video.

According to a statement by the China Association of Automobile Manufacturers (CAAM), China’s monthly sales of passenger-vehicles suffered its steepest decline in more than seven years due to a Lunar New Year holiday season hiatus that deprived dealers of a week’s worth of sales. Figures indicated that sales fell to 1.16 million units in January, a 24 percent decrease from the year before. According to five analysts from Bloomberg News, sales were projected to drop 18 percent.

Great Wall Securities Co. analyst Ran Fei said, “Even though the actual holidays were five working days, some dealerships took the opportunity to close their stores for a longer time. The numbers are disappointing.” Compounding the auto sales slump in the Chinese market, the Chinese government also estimated that holiday sales at the nation’s main retailers and restaurants rose at their slowest pace since the 2009 financial crisis.

Are these signs an indication that the world’s largest and fastest growing automotive market is showing economic resistance? Despite these statistics, Ran Fei insists that “Car demand is stable. There’s no indication of any changes on that front.” China’s Passenger Car Association also believes that the Chinese economy is fundamentally sound and interprets the auto sales number as a mere holiday season distortion. The Passenger Car Association expects a 30 percent rise in sales for February.

Huatai Securities Co. analyst Chen Liang adds, “Demand is still there and consumers in the smaller, less developed cities will still have a growing need for cars. These numbers don’t change my outlook for the year.”

In January, GM reported an 8 percent decline in China sales, its first Chinese sales decline in six months. Chevrolet sales suffered a 20 percent hit to 54,399 units. According to Ford, its China sales fell a staggering 42 percent last month. Bucking the trend, Luxury German brands BMW and Audi both posted higher sales, enjoying a 30 percent and 23 percent gain respectively.

IHS Automotive Shanghai analyst Namrita Chow provided this explanation, “Prior to the Chinese New Year, Chinese consumers who are looking to enhance their prestige and status symbol have chosen high-end luxury brands.”

[Source: Bloomberg]

When Cadillac aired its 30-second “Go To Green Hell” Super Bowl ad for the upcoming ATS sedan during the last two-minutes of the game’s last quarter, a total of 111.3 million viewers tuned in, effectively making this ad the most watched television commercial in U.S. history. Could the marketing department at GM have somehow foreseen the future and realized the game of the year would come down to the wire?

GM global chief marketing officer Joel Ewanick said, “Cadillac is expanding with new models challenging the world’s best luxury cars. This stunning viewership data proves that Cadillac’s big message reached the largest audience… When it comes to Super Bowl ads, everyone has opinions on their favorite, But its a fact that this Cadillac spot had the biggest audience during the game.”

While Ewanick’s quote suggests that the reception for the advertisement reflects approval for the product, these statistics are more representative of the time it aired. If the same ad had aired at any time other than 9:39:37 PM, the title for “most watched ad” would have likely gone to a commercial with more supermodels, pyrotechnics, and special effects.

Watch the ad after the jump.

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Posting respectable 2011 sales numbers, the quietly successful Buick Regal outsold the Audi A4, Lexus IS250 and Acura TSX last year. For 2013, the Buick Regal has received some drivetrain upgrades. First, the performance trim Buick Regal GS will receive an automatic transmission. Second, the 2013 Regal will possess eAssist technology as standard.

Introducing the Buick GS with a manual transmission is an interesting move and, according to U.S. vice president of Buick Marketing Tony DiSalle, “With the Regal GS, we made a conscious decision to go against the current trend and give enthusiasts the manual transmission they desire as standard equipment. Adding an automatic simply makes the performance of the GS even more accessible.” The new Aisin AF40 automatic transmission will be a no-cost option from the manual. According to GM, the new automatic transmission will deliver firmer shifts, capable of matching the manual Regal GS to 0-60 at 6.7 seconds. EPA ratings for the GS is at 19 mpg city and 27 mpg highway.

For 2013, the Regal will come with eAssist hybrid technology as standard equipment. A system that provides a light, but effective, secondary electric motor that assists to either motivate the car during slow traffic or to provide an additional boost to the engine, eAssist was initially a $2,000 option for Regals equipped with the Ecotec 2.4 liter engine. According to EPA ratings, the eAssist Regal reaches 25 mpg city and 36 mpg highway.

GALLERY: Buick Regal GS

Things just got mighty interesting with the Super Bowl ads, with Ford sending a cease-and-desist over to both General Motors and NBC in hopes that the Chevrolet Silverado apocalypse ad won’t air during the big game.

It’s probably too little, too late considering the commercial has already been seen several million times on the Internet, but the impact it could have being played during the big game clearly still worries Ford. The American automaker has asked NBC to pull the $7-million, one-minute ad from the Super Bowl but it appears that NBC will not be respecting that request. At the time of this writing, the ad will still be played and we can’t imagine NBC pulling it at this point in time.

GM Global Chief Marketing Officer, Joel Ewanick, is clearly finding the situation a little on the lighter side, releasing this in a statement: ”We can wait until the world ends, and if we need to, we will apologize,” Ewanick said. “In the meantime, people who are really worried about the Mayan calendar coming true should buy a Silverado right away.”

Ford spokesman Mike Levine has confirmed that Ford did send a letter to Chevy in regards to the ad and that Ford has a gripe with the durability claims that GM is putting out about their products.

In case you’ve missed the ad, check it out after the break.

[Source: Yahoo! Autos]

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Although electric vehicle technology has been touted as the way of the future, some believe that there is still untapped potential lying within the conventional internal combustion engine.

To encourage engineers to push the internal combustion technology forward, Republican Congressman Dan Lungren has introduced a bill that will reward a handsome $1 billion in Federal prize money to the first U.S. automaker that can successfully sell 60,000 mid-size sedans that are capable of achieving 100 mpg on gasoline.

In 2007, the X Prize Foundation held a contest with a similar format called the Progressive Insurance Automotive X Prize. Participating teams were challenged to create a vehicle that was capable of reaching 100 mpg, travel safely in highway speeds, and emit less than 200 grams of carbon dioxide per mile. The winner of the challenge would receive a $10 million reward that will be used to fund the project to become a mass-market vehicle. Unfortunately, none of the vehicles were deemed commercially viable for mass production.

But now that it has been 5 years since the Automotive X Prize, the technology may be closer to our reach if not already attained. However, unlike the Automotive X Prize, Congressman Lungren would only award the winner after 60,000 units of its landmark 100 mpg mid-size sedan have been successfully sold. Not only does the bill ban vehicles of radical shapes and sizes like the Aptera, but 60,000 units is a daunting number that’ll effectively discourage any startup automaker. Compounded with the restriction to U.S. automakers only, the bill suggests a three-way battle between GM, Ford, and Chrysler.

While the bill does not necessarily suggest that a hybrid system is off limits, the aim is to encourage technological advances in the internal combustion gasoline engine, which rules out diesel technology as well. Given the parameters, perhaps earning the prize is much more difficult than it seems.

Smug journalists across the internet are poking fun at the possibility that President Barack Obama might have referred to the 2013 Shelby GT500 Mustang as “sick” during his visit to the Washington D.C. Auto Show.

True or false, his remarks about the muscle car don’t really matter. What’s slightly more significant is the speech he made to herald General Motors’ return to the throne as the world’s highest volume automaker.

While it isn’t surprising that the President would want to talk about something like that, it is a good chance to point out that GM is doing more than taking the Costco approach to selling cars.

In fact, GM is leading more than just the number of vehicles sold. They’re also the industry’s top innovator, according to The Patent Board. This is actually the fourth consecutive quarter that the Detroit giant can claim that title. An impressive 1,123 U.S. patents were granted to the company in 2011 for global product engineering, global powertrain engineering, global research and development and OnStar organizations.

It’s interesting because we don’t always think of GM when imagining who will come out with the latest breaking tech or engineering feats, yet they emerged victorious over 183 other firms. It seems like most of the automotive wizardry starts overseas in Europe and makes its way to domestic vehicles a little while later.

Blind spot detection is a great example of that. Volvo was the first to introduce it, but companies like GM and Ford are on board with the bandwagon.

Among GM’s recent patents, there is technology for quieter brakes, better OnStar voice recognition and something called eAssist Thermal Management which controls engine shutoff to ensure occupant comfort in extremely hot or cold weather.

That begs the question: what’s next from some of the greatest minds in Michigan?

More than 1,900 GMC and Buick dealerships are getting a face-lift by 2013, but it’s about more than just a look. It’s also about a new atmosphere that enhances the customer experience.

“Luxury shoppers today expect a certain level of treatment when purchasing a vehicle,” said Brian Sweeney, U.S. vice president of Buick & GMC sales and service. “Those expectations are now being met at many Buick and GMC stores around the country.”

The image enhancement program, as it’s called, will boost the stores’ image by adding a new exterior façade with updated signage, a bright and airy showroom featuring a greeting station and lounge with free Wi-Fi. You may even find a café or a salon in a few locations — pretty fancy stuff.

So why did GM feel the need for an enhancement program? It’s because Buick and GMC attract more than 40 percent of its buyers from brands outside General Motors. So far, about 170 dealers underwent a face-lift through the image enhancement program. Right now, 1,900 Buick and GMC dealers are involved, but by the end of 2013, that number will grow to more than 2,000 across the U.S.

“These aren’t just new faces on old buildings. We’re creating the complete and convenient dealership experience that attracts these buyers,” Sweeny said.

When GM sold 9.03 million vehicles globally to become the world’s largest automaker of 2011, a great deal of the American automaker’s success came down to its dominant popularity in the Chinese market.

According to the China Association of Automobile Manufacturers (CAAM), the best selling car in China for 2011 was the Buick Excelle. While it has been reported China sold 253,514 Excelles while only 177,633 Buick cars and SUVs were sold in the United States, confusion with Buick’s naming system revealed that the hot Buick Excelle isn’t the same as the Buick Verano sold stateside as we presumed. Oddly, the Buick line-up offers a total of three unique Excelles. Of the three, it’s the oldest generation model based on a dated Daewoo design that earned the most amount of sales. Powered by an engine designed by Holden, this particular Excelle is also known as the Kai Yue and was last given a face lift in 2008.

The second and third Chinese market Excelles are known as the Ying Lang. Using Opel Astra architecture, the hatchback Ying Lang XT and the Verano sedan variant, Ying Lang GT, only sold a combined 8,381 units during December 2011 when the older Kai Yue model sold 13,846 units in the same month.

Much of its popularity is due to its competitive pricing. At just 100,000 renminbi, or $15k USD, the Kai Yue Excelle is the gateway vehicle into China’s coveted Buick Owner’s Club.

GALLERY: Buick Excelle

[Source: China Car Times]

Buick has launched an app for iOS and Android smartphones to help raise MPG awareness. A trio of eAssist Fuel Efficiency smartphone games are packaged into a single app that’s now available to download for free and offers a fun way to hone your driving techniques in order to maximize fuel economy.

The three games are titled “Regeneration Road”, “Roll and Boost”, and “Wind Tunnel Tester.” Regeneration Road focuses on the regenerative braking featured found on Buick eAssist vehicles which helps capture and store energy when a vehicle is braking in order to recharge the lithium-ion battery. Players must make it through the town without running out of fuel while avoiding pedestrians along the way.

The second game, Roll and Boost, has a focus of distance and not speed with battery management being the main priority. By using the energy stored from braking strategically, an emissions-free boost of acceleration can be had and using that energy at optimal times is key to Roll and Boost.

Lastly, Wind Tunnel Tester allows players to put on their automotive engineering hat. Sit there and tweak the vehicle’s length and width on the screen, understanding how the sleek and modern shapes of Buick vehicles help maximize aerodynamics and ultimately fuel efficiency.

eAssist can be found on the Buick LaCrosse and Regal models and aids the performance of a fuel-efficient 2.4L gas engine to achieve 36-mpg. eAssist also allows the gas engine to turn off completely while the car is sitting idle.

“The driving force behind eAssist’s development was to make great vehicles like the LaCrosse and Regal even better,” said Dan Cottrell, General Motors assistant chief engineer for the eAssist powertrain. “With eAssist we can improve both vehicle performance as well as fuel economy.”

GM has a long road ahead of them to rebuild consumer confidence in the Chevrolet Volt after months of negative press surrounding the fire risk of their extended-range electric vehicle.

The advertising campaign will focus on just how safe the Volt is and will include full-page ads in 19 different US newspapers including The New York Times, along with television ads. The launch of the ad campaign coincides with GM CEO Alan Akerson testifying to Congress that a recent Volt fire that took place after a NHTSA crash test would never occur in real-world situations.

NHTSA said late last week after its two-month investigation that the Volt does not pose any more of a fire risk than any other conventional vehicle. Unfortunately, damage clearly has been done as GM North America President Mark Reuss admitted that Volt sales took a huge hit in January. GM will be restarting production on the Volt in February at its Detroit Hamtramck assembly plant and expects to build it with “very reasonable” volume. Their immediate focus however, is to rebuild the reputation surrounding the Chevy Volt as quickly as possible.

Check out GM’s first ad “Morning in Hamtramck” after the break.

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Beginning with the 2012 Chevrolet Sonic, Chevrolet plans to apply eco-impact labels on all of its brand-new vehicles by 2013. As the first of any automaker to present its cars in this manner, Chevrolet’s Ecologic label allows customers to assess environmental impacts associated with any particular Chevrolet vehicle in all stages of its product life.

First, “Before the Road” presents the environmental impact of the vehicle’s manufacturing and assembly. Next, “On the Road” notes fuel-saving features such as cylinder shut-off systems, aerodynamics, and low-resistance tires. Finally, “After the Road” reveals how much of the vehicle can be recycled at the end of its useful life.

With these Ecologic labels, GM makes itself more attractive to environmentally conscious consumers. According to GM North America President Mark Reuss, “Customers want companies to be honest and transparent about their environmental efforts and sustainability goals, and rightly so. Putting an Ecologic label on each Chevrolet is just one more way for us to share our environmental progress.”

The numbers and data on the Ecologic labels are determined by independent, third-party sustainability agency Two Tomorrows, a company that provides environmental audit and assurance services to companies.

[Source: Forbes]

In 1989, Rick Moranis played a nerdy dad who accidentally downsized his children to an insect scale in Honey, I Shrunk The Kids. He probably wouldn’t have believed it if someone told him that 23 years later automakers would be doing the same thing to their cars.

For those of us living in the North American 2012, there are increasingly large swarms of little cars buzzing around the streets. The din their tiny engines makes isn’t overwhelming yet, but just wait.

General Motors’ German subsidiary, Opel, is planning to release a micro car they’re calling the Allegra (or, tentatively, Junior). No, not the allergy medication, though the thing is small enough to be mistaken for a bee in ragweed season, at least compared to the standard American palate. When the Allegra hits Europe in 2013 it will probably stand to compete against cars like the Volkswagen Up, MINI Cooper and Fiat 500.

In fact, it’s a solid 3.3 feet longer than the Mercedes-Benz spawned Smart ForTwo, which looks like a cross between a golf cart and an alien space pod. Our spies caught the Opel Allegra on camera during winter testing, but what’s the big deal? Opel cars aren’t sold in North America, right?

Well, not necessarily. Rumors are floating around that the not-so-smallish micro car might make it overseas rebadged as a Buick. (Why not? It’s not the first Buick to come from Opel). And with the recent launch of the Fiat 500 and the Scion iQ on our shores, the market for mini-cars is growing.

Of course, the name will likely change to keep big pharma happy.

GALLERY: Opel Allegra/Junion Spy Photos

Driving a Chevrolet Volt could get even more guilt-free in the future as the company plays with ways to coax consumers into charging with renewable energy.

GM is partnering with energy company PJM Interconnection to send data via their OnStar cloud service, called the Advanced Telematics Operating Management System (ATOMS), to Volts that need to charge. The technology would notify drivers of renewable energy as it became available relative to their location.

There is also a smartphone app in the works to alert Volt owners of available energy when they aren’t in their car, though the overall project is still in the testing phase.

Those tests are being conducted on Google’s 17-vehicle “Gfleet” based out of their Mountain View, California headquarters. While renewable energy isn’t going to fuel your car any differently than a charge originating in a coal plant, it could help drive demand for more renewable sources.

By harnessing the hordes of anti-pollution diehards, comparatively tiny as they may be, GM might make a dent in promoting green energy beyond what selling their volt already can.

“This demonstration shows that in the near future customers will have a real signal of demand for renewable energy,” said Nick Pudar, OnStar vice president of planning and business development. “As customers configure their Volts to favor renewable energy for their charging cycle, this real demand signal will influence utilities to tap into renewable sources.”

There’s also a silver lining to the plan: peak wind power hours, according to PJM, fall between 10 p.m. and 6 a.m., meaning those taking advantage of a renewable charge-source would be taxing the system during off-peak hours.

GM’s continued push toward promoting the Volt is a strong demonstration of their commitment to the car, despite the controversy that hounded it last year after a few cars spontaneously combusted days after crash testing. Extended range hybrids like the Volt offer a practical solution to ultra-high milage transportation without the range anxiety we felt while road testing the Nissan Leaf.

GALLERY: 2012 Chevrolet Volt

Toyota might not have announced its final tally for 2011 sales, but it’s safe to assume that GM will take the crown and remain the world’s largest automaker after reporting 9.03-million in global sales for 2011.

Last month, Toyota estimated that its 2011 annual sales would be around 7.9-million vehicles, which would make it third behind Volkswagen‘s 8.16-million global sales total.

GM’s impressive number of 9.03-million is a 7.6-percent increase from its 8.39-million figure from 2010. GM announced that it sold 2,503,820 vehicles in America and China saw 2,547,203 vehicles sold. But the announcement isn’t without controversy as GM includes the sales of its joint Chinese venture partners which is generally not a practice other manufacturers follow. For GM’s figures, they included 1,285,820 vehicles sold by SAIC-GM-Wuling, which the American auto giant does not have a controlling interest in.

Just when it seemed Saab would be gone from news headlines for good, Youngman swooped in again to make a bid.

Apparently the company hasn’t given up on getting Saab back up and running. According to Dagens Industri, a Swedish business news organization, the Chinese firm is submitting a £430 million offer, or about $560 million.

They are choosing to make that offer despite GM’s previous sabotage attempts which were meant to keep the company out of Chinese hands. A miniature war was waged last year between Youngman and GM when the American giant decided such a sale would unfairly divulge technology being used in the 9-4X.

Youngman seems unfazed, however, and is continuing their pursuit which will include an additional $520 million being invested. If they actually manage to take the company, they plan to resume production of the 9-3 in April or May.

[Source: Autocar]

Earlier this month a new reports noted that Chevrolet Volt sales were more successful in its first year than the sales numbers of the Toyota Prius hybrid on its first year back in 2000. What little optimism Chevrolet might have had on the Volt’s sales performance were quickly silenced when data revealed that Toyota dealt a quick knockout as its new Prius v wagon (also in its first year) out sold the Volt. And it did so with just 10 weeks on sale.

Official numbers for Chevrolet Volt’s 2011 sales are 7,671 units delivered. Toyota managed to sell 8,399 hybrid wagons, which did not arrive to U.S. dealerships and showrooms until the last week of October.

President of Toyota U.S. Sales Jim Lentz says, “Prius v is off to a great start.” For 2012, Toyota aims to deliver 220,000 Prii to U.S. customers, a 60 percent increase from 2011. Toyota’s offensive includes offerings of the original Prius, the Pruis v wagon, and the Prius c subcompact that arrives in March.

GALLERY: Toyota Prius v wagon

[Source: Bloomberg]

Read AutoGuide’s 2012 Toyota Prius v Review here and watch the video review below:

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You can probably still remember being a kid in the back seat on a long car ride. It was horrible. The dog wouldn’t stop breathing on you and licking your ears. It smelled bad. Worst of all, there was almost nothing to do for more than a few minutes without getting car sick. “Look out the window,” your parents might say, “it’ll make you feel better.”

Well, thanks to some creative thinking and truly futuristic innovation, more kids might be looking out the car window voluntarily. GM turned to the Bezalel Academy of Art and Design in Israel and asked its students to think of ways to make car rides engaging, enriching and educational. What they came up with will probably peak interest in the most technologically indifferent individuals. Interactive windows.

What’s this? Well, the students from Bezalel essentially got free reign to dream about how to implement smart glass in cars to integrate the outside environment with the passenger experience. There aren’t any plans at the moment to put this technology into production vehicles, which meant they could imagine freely. Their projects didn’t actually use smart glass, though GM said that would be possible in the future.

They came up with many ideas including a character projected into the outside environment that reacts in real time to landscapes, weather and car performance. Another idea allows users to share a window with others around the world. One Project played with the idea of different cars being able to share music with each other, expanding on the curiosity behind being on the highway wondering if that trucker next to you is giving a jubilant rendition of Billy Joel’s Uptown Girl (or not). Finally, one of the ideas evolves from something almost everyone experiences, drawing things in hot breath fog.

This isn’t actually the first example outside Hollywood grandeur that we’ve seen of such technology floating around. Last month we reported a story about Toyota showing off a similar and more focused iteration of smart glass. Toyota’s technology would allow children to tap on things to identify them, zoom in on distant objects and even understand distance and speed by dropping a marker that displays proximity to the car in real time.

Neither manufacturer is ready to bring this sort of stuff to market, but it can’t be that far away either given that Audi is already implementing an environmentally interactive heads up display for drivers as early as 2013.

The National Highway Traffic Safety Administration (NHTSA) is considering at length the changes that could be made to its 5-star crash-assessment testing. Rather than concentrate only on crash-worthiness, the NHTSA is looking into new technologies that put an emphasis on accident-avoidance.

NHTSA Administrator David Strickland says, “Crash-worthiness has been the guiding star for NHTSA. But if there’s an opportunity to prevent a crash– that is the goal.” Holding a speech for the Society of Automotive Analysts the day before the North American International Auto Show, Strickland wants to raise consumer awareness towards these new technologies.

On top of accident-avoidance devices like lane departure warning sensors, Strickland says NHTSA is also working on a framework for in-vehicle electronics in order to minimize driver distraction. Strickland explains, “We don’t want to stifle innovation, but we recognize technology (can impact) safety, so we will be setting in-vehicle guidelines so auto makers can innovate within a zone of safety.”

In order to collect data on driver distraction, NHTSA’s research program will be conducted on 2,000 vehicles with cameras to monitor driver behavior over a 2 year period. “The goal is to make sure we have an accurate picture of what is happening in the vehicles so that we’re not creating something that is a risk for every driver.”

The holy grail for automotive safety would be through the development of vehicle-to-vehicle communications, which NHTSA is committed to turning to reality. Studies have proved that the V2V system could eliminate 80% of crashes involving non-impaired drivers. This effectively lowers the number of traffic fatalities by almost 33,000 a year.

While it is unknown exactly when the V2V systems will be ready for mass use, a 3-year test program is currently being conducted, with automakers GM, Ford, Honda, Hyundai-Kia, Mercedes-Benz, Nissan, Toyota, and Volkswagen all taking part.

[Source: WardsAuto]

Ohio Governor John Kasich and Missouri Governor Jay Nixon made a visit to Detroit this week during the North American International Auto Show in an effort to bring U.S. automotive manufacturing to their respective states.

John Kasich said, “Contrary to popular opinion, the auto industry is getting stronger.” Ohio currently possesses the second-largest automotive industry work force in the nation behind neighboring Michigan. Home to Chrysler Group, Ford Motors and Gerneral Motors, Michigan also is the home to most of the world’s automotive parts suppliers. It is also in Michigan where government regulators are tasked with policy making in auto safety, emissions and fuel economy.

The chief engineer of Honda Research and Development in Detroit, Toshiaki Shimizu said, “People may have the wrong idea. Detroit is not becoming less important. It is more important. It remains the center of the automotive industry. We all come here because we must.”

Well aware of Michigan’s relevance, Ohio Governor John Kasich and Missouri Governor Jay Nixon spoke to a number of auto executives to reach agreements that prove to be mutually beneficial. Ford committed to $1 billion over a span of four years to upgrade Ohio’s driveline manufacturing plants. Honda will invest $400 million in improvements to its Ohio facilities to prepare for the production of its new Acura NSX hybrid sports car. Chrysler will add another 1,100 jobs and invest $1.7 billion into its Jeep plants of Toledo, Ohio. GM continues to build its Chevrolet Cruze in the Lordstown, Ohio, plant and will put in another $204,000 to upgrade its Toledo transmission plant.

On his first day in office, Missouri Governor Jay Nixon assembled the Automotive Jobs Task Force to attract investments to the state. In October, Ford announced that it will spend $1.1 billion  and add another 1,600 workers to assemble the Transit van alongside the F-150 Ford pickup trucks at the Kansas City, Missouri plant. GM will also invest $380 million into its Wentzville, Missouri plant, adding another 1,660 jobs as it expands assembly to include the Chevrolet Colorado and GMC Canyon.

Nixon explains, “we are here not just to talk to the manufacturers, but also to the suppliers. As the manufacturers invest and production rises, we are asking the suppliers what we can do to help them make the investments they need to make to support this.”

[Source: Detroit News]

Fuel mileage, horsepower and overall performance are key ingredients in the recipe for any successful car these days.

Maybe that’s why GM made the announcement to reporters at the North American International Auto Show that they plan to scrap the unimpressive naturally aspirated 2.4-liter four cylinder found in the Chevrolet Equinox, GMC Terrain and Buick‘s Verano and Regal. In it’s place, a 2.5-liter direct injected (cue fireworks) Ecotec inline four! The new engine will be 18 horses peppier than its predecessor for a total of 190 hp and 180 lb-ft of torque. It’s also going to be a lot less noisy, smoother and best of all, more efficient.

GM said they plan to make the transition between engines within the next 12 months, so look forward to a more refined American experience from GM.

For the last number of years, automakers have been pushing gas-electric products at auto shows across the world. However, according to researcher LMC Automotive, hybrid sales in the United States have slowed last year to 2.2 percent compared to 2.4 percent in 2010.

Mike Jackson, chief executive of auto retail chain AutoNation Inc., said that while 75 percent of customers that walked into his showrooms wanted to talk about hybrids, hybrids only make 2.5 percent of AutoNation sales. Jackson revealed, “What happens from the 75 percent consideration to the 2.5 percent commitment? They look at the price premium for the technology, which is already subsidized and discounted, and say ‘the payback period is too long; not for me.’ It’s a back-of-the envelope conversation on the part of the American consumer.”

According to Chevrolet vice president of U.S. marketing Chris Perry, the Chevy Volt gets people into the showroom but with less than 8,000 units sold last year, consumers often entered a dealer to have a look at the Volt but eventually left with something else.

The challenge hybrids face is the continuing development of the conventional internal combustion engines. David Champion, senior director of the Auto Test Center of Consumer Reports, pointed out that the basic Honda Civic reaches a 32 mpg combined city and highway mileage while the Civic hybrid achieves 44 mpg. Saving a consumer approximately $322 dollars a year in fuel, the sticker price premium will require an owner to operate the Civic hybrid more than six years to see any financial advantages.

Realizing the trend here, Ford has dropped plans for a hybrid version of the next generation Escape crossover.

What’s more, improvements to an internal combustion engine can potentially improve fuel economy by 40 percent while costing an extra $2,000 per model by 2020. Weight reduction and better aerodynamics can lower fuel consumption by up to 10 percent and would account for costs of approximately $200 per car by 2020. Comparatively, the battery in an electric car still adds $10,000 to the price of a car at current costs in technology and remains a challenge to reduce in the near future.

Scott Corwin, vice president of consulting firm Booz & Co., New York, explained, “The advantages of hybrids are getting harder to justify. It’s the cost differential. Consumers are rational and they understand the cost of ownership.”

Despite the unpopularity, hybrids remain important to every automaker’s strategy, even if it’s just to attract prospective customers into dealerships or to showcase a company’s dedication to green technology. Ford showed off its new Fusion hybrid family sedan at the Detroit Auto Show. Toyota expands its Prius range with a Prius C, costing just $19,000 and achieving 50 mpg.

[Source: Bloomberg]

When there’s blood in the water, sharks start to bite. If the automotive industry does nothing else, it fosters ruthless competition and a winner-takes-all mentality akin to professional sports.

That’s exactly why reporters were peppering Chrysler-Fiat CEO Sergio Marchionne with questions about his company wanting to buy GM’s struggling German subsidiary, Opel.

Outside scheduled announcements, Marchionne told the Detroit News that ”there’s a willingness on the part of Fiat-Chrysler to listen,” going on to say that ”this is an industry that is in evolution.”

Despite his affirmation that Fiat would be willing to consider the idea, there doesn’t seem to be any plan being cooked up. GM vice chairman Steve Girsky said he and Marchionne had dinner last Sunday and that Marchionne wasn’t interested in Opel.

“Opel is not for sale,” Girsky said. “We’re going to make Opel work.” GM is “committed to returning our European business to sustained profitability. There’s a lot of work to do.”

For better or worse, the business world is sensitive to such discussions. The notion that something like that might happen drove speculation that Fiat might also be eyeing Peugeot. Once again, it seems the rumor mill is churning out little more than hot air, though Marchionne maintains that he is open to opportunities.

For now it seems the dinner discussions that spurred these questions were little more than meals, though we’ll stick to Marchionne’s philosophy and refuse to rule anything out, especially considering his original plan after buying Chrysler was, in fact, to take Opel as well.

[Source: Detroit News]