Ford and Johnson_Controls have signed a memorandum of understanding for the sale of Automotive_Components_Holdings’ interiors business and its Saline, Michigan, plant.

Saline covers 1.6m sq ft on 189 acres. In 2005, according to Ford, the plant won international supplier acclaim for two injection moulding processes and other plastics innovations.

Products include instrument panels, complete cockpits, door panels, door trim, and consoles for a variety of Ford vehicles.

“Through this agreement Johnson Controls would be able to provide further support to [Ford]. This acquisition would also complement Johnson Controls’ global growth plans for our interiors business by expanding our global interiors manufacturing capacity,” said Jeff Williams, head of the supplier’s North American interior business.

Ford set up Automotive Components Holdings in October 2005 to ensure a flow of components and systems while ACH facilities, formerly owned by Visteon, were prepared for sale or closure.

ACH currently has 11 plants and around 11,000 leased hourly and salaried employees.

“This MOU represents another significant step forward in Ford’s strategy to sell or close its Automotive Components Holdings (ACH) operations while reducing material costs over time,” the automaker said in a statement.

“We continue to make good progress on our plan to sell or close most of our ACH facilities by year-end 2008,” added Mark Fields, president of The Americas and Ford executive vice president. “This is an important element of Ford North America’s return to profitability.”

ACH has sold two operations in Mexico, and now has six MOUs in place for the sale of seven additional plants as well as one business from an eighth.

Al Ver, CEO and COO of Automotive Components Holdings said: “We are pleased to partner with Johnson Controls on a transition for our interiors business that is based on a sustainable business case.”

The sale is subject to the usual closing terms as well as a new agreement between Johnson Controls and the United Auto Workers union.

Lexus has improved since 2006 to rank highest in customer satisfaction with the new vehicle sales process, as the industry recorded overall improvement and achieved a record high for a second consecutive year, according to the JD_Power and Associates 2007 sales satisfaction index.

The study measures customer satisfaction based on dealership facility, salesperson, paperwork/finance process, delivery process and vehicle price.

Lexus ranked highest in satisfying buyers with the new vehicle sales process, achieving an SSI score of 897 on a 1,000-point scale, and improving by 10 points from 2006. Following Lexus in the rankings were Hummer, Jaguar, Lincoln and Mercedes-Benz.

For a second consecutive year, the industry achieved a record high overall SSI score, improving by 5 points to 852 from the previous record of 847 set in 2006.

“Lexus improves by four rank positions from 2006, which is a gain driven primarily by increased customer delight with the dealership facility, salesperson performance and vehicle price,” said Tom Gauer, JDP’s senior director of automotive retail research. “For example, Lexus salespeople show particular concern for helping customers stay within their budgets, choosing the right vehicle for their needs, as well as for making the negotiation process clear and understandable. Hummer receives a score of 895, up by 21 points from 2006, and improves notably in the vehicle price and paperwork/finance process.”

The study found that 44% of new vehicle buyers reported spending more than they planned for their new vehicle. These customers provided satisfaction scores that averaged 67 points less than customers who said they spent within the amount they had budgeted. However, a salesperson who carefully explains the vehicle’s features and demonstrates its value can more than compensate for this decrease in satisfaction.

“While all new-vehicle buyers hope to get a good deal, customers are receptive to spending more than they originally budgeted provided that the salesperson does a good job of educating the customer about the features and benefits that they are receiving,” said Gauer. “Customers are looking to the salesperson to help them buy a vehicle that fits their budget, but they are certainly open to spending more if the salesperson can successfully convey the value of the vehicle.”

The study also found that customers whose expectations were exceeded during the sales process were much more likely to return to the dealership for customer-paid service work. Approximately 61% of customers who described their sales experience as “above expectations” said that they would definitely return to the dealership for paid service, compared with 37% of customers who said that their experience merely met their expectations.

The 2007 study was based on responses from 38,654 new vehicle buyers who registered their vehicles in May 2007.

A rebound in US freight truck sales is unlikely to begin until the second quarter of next year, but global truck sales are set to rise in 2008, the head of Daimler AG’s trucks business has said.

US Truck sales have been hit by new emission standards that pulled forward demand, and a recovery there is expected “not before the second quarter”, Andreas Renschler told reporters.

But Reuters reported that he said global sales in 2008 look in good shape, with the US market turning up primarily in the second half of the year, European sales expected to keep rising thanks to brisk demand in eastern Europe, and China and India adding to demand, he said.

The Japanese market was set to remain flat, he added.

At a conference call last month following Daimler’s third-quarter results, Renschler had said he thought the US truck market would pick up in the first quarter of 2008 at the earliest, Reuters added.

EU rules to cut CO2 emissions drew a range of views from industry figures at this week’s Reuters Autos Summit, but all said it would be costly to a sector already hit by pricier raw materials, a strong euro and nervous consumers.

Standard & Poor’s director of corporate ratings, Maria Bissinger, said nearly all the companies she followed had a stable or positive outlook, but uncertainty on the CO2 issue was a long-term problem for the industry.

She noted data from German car industry association VDA suggested the cost of cutting CO2 emissions to 120g/km by 2012, as demanded by the European Commission, would be about EUR3,000 a car. That’s on top of EUR2,000 in extra costs since 2005 as a result of other EU regulations, from parts design deregulation, to air conditioning rules, initial CO2 limits and pedestrian protection.

VDA members include car makers such as Mercedes, Porsche, BMW and Volkswagen unit Audi, all of which make relatively heavy cars with big engines and high emissions and are likely to find compliance costs higher than makers of smaller cars like PSA Peugeot Citroen and Fiat, Reuters noted.

The news agency also noted that, though the European car industry organisation ACEA has said the 120g/km level should be seen as an average for the entire industry, not an average per car maker, the industry does not always speak with one voice.

France’s CCFA association, which champions its nation’s makers of relatively low emitting cars, recently said it was not in favour of special treatment for heavier cars.

At the Frankfurt motor show in September, the chief executives of all the ACEA companies held a joint news conference in which they asked the European Commission for realistic targets and more time but, again, there are dissenters.

Valeo chairman and chief executive Thierry Morin told the summit in Frankfurt that the commission had to be very strict and that 120g by 2012 was too little and too late.

“That is five years from now; we have to do something quick to help the planet,” he said.

Valeo’s products include technology that helps cut emissions such as braking_systems that store energy wasted during braking and micro-hybrids.

Morin agreed the costs were an issue, and that a family would probably prefer to spend spare cash on other options, such as leather upholstery, before lower carbon emissions.

“It has to be made mandatory; we would not have bought safety belts if they had not been made compulsory,” he said.

Stefan Wolf, CEO of German car parts group ElringKlinger, told Reuters the car industry had to act on emissions but was taking too much heat.

“I am convinced we have to do something. I also think that the automobile industry is too much in focus, because only 12% of global CO2 emissions come from cars and the automotive industry, and that is why I think we should also look at other areas and other sectors that contribute much more,” he said.

Even luxury sports carmakers are on the case. Ferrari general manager Amedeo Felisa said the company wanted to cut CO2 emissions from 400g/km to 280-300 by 2012.

Lamborghini chief Stefan Winkelmann said his engineers were also working on the problem.

He said the power/weight ratio was one area the sports car maker might improve, trying lighter materials for the body and chassis but, with Lamborghini selling just 2,000 cars a year, that owners largely drove at weekends, the impact was “close to zero”.

The Indian car market and industry will continue to grow strongly as small cars are snapped up by rising numbers of urban middle class consumers according to Vinay Kothari, board member at Force Motors, a maker of utility vehicles in India.

Speaking at the IESE Business School’s Automotive Sector conference in Barcelona, Kothari said that projections for rapid market growth in India reflected demographic and income trends. In addition, the market is also facing a lift from the arrival of a number of small low-cost cars - such as Tata’s one-lakh car - that will enable owners of two-wheelers to more easily upgrade to four wheels.

Renault is also planning a sub-Logan ‘one-lakh fighter’ that would be made in India with Bajaj Auto.

The Indian light vehicle market could be approaching 5m units a year by 2013 from under 2m now, Kothari said.

“And small cars are growing very strongly. By 2015 the market for small cars in India could be as much as 3m units a year,” he added.

But isn’t congestion in India’s big cities already at a level suggesting road capacity is at saturation point? If there is barely room for the two-wheelers to park, where will all the four-wheelers go?

Kothari told just-auto that the primary market in India for the new breed of small of cars is not in the big cities but in the smaller cities and rural areas where incomes are growing and space is not such a problem.

“You won’t see very many Tata one lakh cars in Mumbai or New Delhi,” he said.

GM’s full-size hybrids crack the $50k barrier

The hybrid news is coming in at a furious pace from the boys over at General Motors. Earlier today, the company showed off its second generation Chevrolet Silverado Hybrid pickup which features the new 2-mode gasoline-electric hybrid powertrain.

Now, the company has priced out its new Chevrolet Tahoe Hybrid and GMC Yukon Hybrid full-size SUVs. The Tahoe Hybrid will be priced at $50,490 for 2WD models and $53,295 for 4WD models. The slightly up-market Yukon Hybrid will be priced at $50,945 and $53,755 in 2WD and 4WD models respectively.

As with the previously announced Chevrolet Silverado Hybrid, the two full-size SUVs feature GM’s 2-mode hybrid system which is backed with a 6.0 liter V8 engine. The SUVs can travel up to 30 MPH under electric-only power and can tow up to 6,200 pounds in 2WD guise (6,000 pounds for 4WD models).

As reported by DailyTech in late September, the Tahoe Hybrid and Yukon Hybrid are rated at 21 MPG/22 MPG and 20 MPG/20 MPG respectively for 2WD and 4WD models.

“We promised to apply our most advanced technologies to vehicles that can save the most fuel, and we are delivering on that promise with the Tahoe and Yukon Hybrid SUVs,” said GM vice chairman Bob Lutz. “The gasoline-only Tahoe and Yukon SUVs already offer best-in-segment fuel economy. Now, consumers can choose GM’s patented 2-Mode Hybrid technology that delivers the same city fuel economy as the 2008 Toyota Camry with the base four-cylinder engine. The difference is that the Tahoe and Yukon can seat eight people and can tow up to 6,200 pounds.”

For comparison, a 2008 Toyota Camry CE has a base price of $18,470 and is EPA rated at 21 MPG/31 MPG (city/highway) for the manual and automatic.

GM’s 2-mode hybrid system boost fuel efficiency by 25 percent overall

General Motors is stepping up its efforts in the hybrid game with its second generation Chevrolet Silverado Hybrid pickup. The new Silverado Hybrid goes far beyond what the first generation “mild hybrid” model could achieve and instead uses GM’s much-touted 2-mode hybrid system.

The standard gasoline-powered Silverado is already the most fuel-efficient full-size pickup on the market, but the 2-mode hybrid system — which is shared with the Chevrolet Tahoe, GMC Yukon and Cadillac Escalade hybrids — boosts efficiency even further. The Silverado Hybrid can travel up to 30 MPH under electric power alone (even while towing) and still has the ability to tow up to 6,100 pounds.

The 300-volt nickel-metal hydride battery used in the Silverado Hybrid is mounted under the rear seats. A 300-volt air conditioning compressor is also used to cool passengers even with the gasoline engine is not running.

When all is said and done, the 2-mode hybrid powertrain boosts the fuel efficiency of the Silverado by 40 percent in the city and 25 percent overall. This achievement is quite remarkable when you consider that the Silverado Hybrid is still packing a 6.0 liter V8 engine with 332 HP and 367 lb-ft of torque.

GM also notes that thanks to the hybrid powertrain and its 26-gallon fuel tank, the Silverado Hybrid will travel more than 500 miles on a single tank of gas.

“The Silverado Hybrid is the newest example of Chevy’s heritage of truck innovation, which stretches back 90 years, and exemplifies Chevrolet’s commitment to fuel solutions,” said Chevrolet general manager Ed Peper. “Silverado Hybrid will deliver fuel economy comparable to many small and midsize trucks that are equipped with four- or six-cylinder engines — all while delivering the capability customers expect of Chevy full-size trucks.”

The 2009 Chevrolet Silverado Hybrid will launch in late 2008 and will be available on Crew Cab models in both 2WD and 4WD trim levels.

General Motors’ all-electric Volt to reach consumers in late 2010

General Motors is quite confident these days. The company recently priced its highly-anticipated full-size hybrid SUVs and showed off a concept version of its full-size hybrid Chevrolet Silverado. GM CEO Rick Wagoner also noted that his company will release one hybrid per quarter for the next four years — lofty goals indeed.

Likewise, the company’s brand new Chevrolet Malibu mid-sized sedan has been generating an overabundance of praise and its new $32,000 second-generation Cadillac CTS just walked away with Motor Trend’s Car of the Year award.

GM is hoping to use this momentum and high level of interest in its vehicles to push the electric motor-powered Chevrolet Volt to customers by the end of 2010.

GM vice chairman Bob Lutz has heard all of the critics who question GM’s aggressive ramp for the Volt, but is still committed to moving forward.

“There is a lot of skepticism within the company about the timeline,” said Lutz. “People are biting their nails, but those of us in a leadership position have said it has to be done.”

GM is hoping to use the Volt as a halo car to further strengthen its brand and its commitment to fuel economy. Dodge used the Viper to enhance its image for performance and styling in the 1990s. Toyota used its Prius at the turn of the century to shroud the entire company with a green image despite the fact that gas guzzlers like the Tundra and Sequoia share the same showroom space.

“When they think of GM, the iconic brand is, unfortunately, the Hummer,” continued Lutz. “That perception needs to change.

The GM Volt features a 1.0 liter, 3-cylinder gasoline engine which is solely used to recharge the onboard lithium-ion battery pack. The battery pack, which will be manufactured by Compact Power and Continental Automotive Systems, powers the Volt’s electric motors for forward propulsion.

GM says that the Volt can travel for up to 40 miles on battery power alone. After the 40 mile threshold has been reached, the gasoline engine kicks back in again to recharge the battery pack.

The entire industry has its eyes on GM and its Volt. Toyota took a big risk with its Prius and it has paid off dearly for the company.

“We have since realized that letting Toyota gain that mantle of green respectability and technology leadership has really cost us dearly in the marketplace,” Lutz added. “We have to reestablish GM’s leadership and the Volt is, frankly, an effort to leapfrog anything that is done by any other competitor.”

THE Edinburgh Marathon has announced a major new sponsor for next year’s event.

Car giant Chevrolet will back the race after getting involved on a smaller scale last year, joining a large team of sponsors which includes the Evening News.

They will back the Hairy Haggis Team Relay, which allows people to jog a section of the course with friends without completing the arduous full marathon distance.

Richard Chamberlain, national retail marketing manager for Chevrolet UK, said: “We are very pleased to be contributing once again to the Edinburgh Marathon after the great success of the event in 2007.

“A number of our marketing managers were involved in the Hairy Haggis Team Relay in 2007 and wanted to give others the opportunity to have as much fun competing as they did.”

Damien O’Looney, marketing manager for the marathon, said: “To have Chevrolet UK increase their commitment by sponsoring the marathon and team relay shows we are continuing to grow in popularity.”

Other sponsors of the event on May 25 include Strathmore Spring Water and Real Radio.

Uzbekistan plans to start producing the Chevrolet Lacetti at UzDaewoo Auto by 2009, a source from Uzavtoprom, which unites the country’s vehicle manufacturers, told Interfax.

The government of Uzbekistan has adopted a resolution on organizing commercial production of the Lacetti at UzDaewoo, which approves the implementation of this project, he said.

UzDaewoo Auto and GM DAT signed a contract on September 14 2007 for delivery of the machinerya and equipment required to set up Chevrolet Lacetti production. The project’s feasibility study puts projected capacity for the new conveyer line at 30,000 cars per year. The project is to take 16 months to set up.

The government has given Uzautoprom permission to allocate an interest-free loan equivalent to $47.69 million to UzDaewoo Auto, of which $41.2 million will be used to buy machinery and equipment.

UzDaewoo Auto was established jointly by the Uzbek government and Korea’s Daewoo motor. The company launched construction of an auto plant in Andijan region in 1996 with projected capacity of 200,000 vehicles a year.

Uzbekistan purchased the Daewoo Motor stake in UzDaewoo Auto in October 2005 and Uzautoprom now holds all the shares.

Uzautoprom and General Motors set up the joint venture GM Uzbekistan in October 2007 to produce and sell Chevrolet cars in Uzbekistan on the basis of UzDaewoo Auto. GM owns a 25% stake and Uzbekistan 75% of the joint venture. Projected capacity is 250,000 vehicles annually.

UzDaewoo Auto currently produces seven car models, with commercial production of the Nexia, Matiz and Damas and assembly of the Lacetti, and Chevrolet Captiva, Epica and Tacuma from October 2007.

UzDaewoo Auto produced 140,080 cars in 2006, up 38.7%. The company plans to turn out 170,000 cars in 2007