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Molly Brookshire

GM to split engineering into 2 divisions with new leaders; Calabrese to retire - 0 views

  • GM said it will divide vehicle engineering into two organizations: Global Product Integrity and Global Components and Subsystems.
  • The product integrity organization will include the new global vehicle safety group that GM created in February, led by Jeff Boyer. That unit also will oversee supplier quality and include vehicle, powertrain and electrical-systems engineering; vehicle performance; industrial engineering and validation, GM said.
  • GM said the product integrity organization will use "advanced analysis tools and processes to flag and prevent issues during vehicle development." It also will analyze field reports "to react quickly to safety and product quality issues customers may experience."
Molly Brookshire

Subaru, Toyota discuss ending production of Camry in Indiana - 0 views

  • Toyota owns 16.5 percent of the small Japanese automaker
  • But it poses a big headache for Toyota, which is also strapped for capacity in North America as the market quickly accelerates.
  • SIA has annual capacity for 100,000 Camrys, and it may be tough for Toyota to absorb that at another North American plant.
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  • Subaru will stop building the Camry in Indiana by 2017
  • Subaru said earlier this year that it would boost the plant's annual capacity to build Subaru vehicles to 300,000 by the end of 2016, up from 170,000 currently. On top of that, the company has capacity to build 100,000 Camrys a year
  • Subaru also said earlier this year it would add production of the Impreza to the factory, its only plant in North America
  • The additional capacity Subaru plans to add by 2016 would come from the Toyota line, meaning that Subaru vehicles would be made in mixed production with the Camry on the same line.
  • Subaru needs more capacity, as it aims for annual U.S. sales of 500,000 by 2016. That's up from an estimated 420,000 units expected this year.
Molly Brookshire

Nissan team to tackle inventory problems - 0 views

  • "the right car at the right place at the right time"
  • Nissan has assembled a team of sales managers, forecasters, planners, retailers, factory engineers and logistics managers in North America and Japan to execute its right-car mission.
  • After spending the past two years redesigning, reintroducing and repricing most of its vehicle lineup, the automaker is convinced that all of its products are competitive in their segments, and in some cases segment-leading.
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  • But one problem continues to hold the franchise back -- a U.S. inventory chain with a few holes in it,
  • "Rather than trying to assess market needs from here at our headquarters or relying on our retailers to guess, we're designing a new approach to make sure we can deliver the right car at the right place at the right time." The process will give Nissan's sales regions more voice in production planning and make it easier for dealers to find cars in the factory order banks.
Molly Brookshire

Denso is not just Toyota's supplier anymore - 0 views

  • banking on brisk demand for safety sensors with plans to offer a suite of new products for mass-market cars by 2016.
  • The new technologies will include autonomous emergency braking, lane-keep assist and full-speed adaptive cruise control systems
  • And in a bid to diversify its customer base, the Toyota-affiliated parts maker will offer the new products to any automaker, not just its tried-and-true Toyota Group stalwarts.
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  • The upcoming rollout, which will deploy the technologies by March 31, 2016, is part of Denso's drive to boost sales of sensors, the crucial eyes and ears of tomorrow's safety systems.
  • Cars without these features will be hard-pressed to achieve the top five-star rating. And European adoption of more stringent rules is expected to force other markets, such as the United States and Japan, to raise the bar as well.
  • But it trails European rivals such as Robert Bosch GmBH and Continental AG in advanced safety sensors. Denso's bread-and-butter products are drivetrain components and air conditioners.
  • But deployment is rapidly moving downmarket because of stricter European Union safety rules taking effect in 2015. The Euro New Car Assessment Program, or Euro NCAP, rates vehicle safety and increasingly will test for crash avoidance technologies.
  • The components include systems using camera-based optical sensors, millimeter wave radar and laser radar.
  • That is because the regulations set a baseline for sensor performance that must be met by all carmakers. And the clear specifications make it easier to develop standardized sensors. Standardization, in turn, allows for higher volume and lower costs, meaning a wider array of customers can use the same part.
Molly Brookshire

Honda's U.S. light-vehicle output hits 20 million - 0 views

  • Honda Motor Co. hit a U.S. milestone today by producing its 20 millionth vehicle since it began making cars in Ohio more than 30 years ago, the company said.
  • Honda’s plant in Marysville, Ohio, churned out its 10 millionth Accord sedan today, bringing cumulative production from Honda’s four U.S. vehicle assembly sites to 20 million units since it began producing cars in the United States in 1982
  • Honda also exported more vehicles from its U.S. factories in 2013 than it imported into America from Japan -- a first for the automaker. Honda exported 108,705 U.S.-made Honda and Acura vehicles, compared with the 88,537 it brought in from Japan last year.
Molly Brookshire

'15 Genesis is worthy of premium label - 0 views

  • the Genesis will help Hyundai continue its so-called intercept strategy.
  • If you think about Lexus in 1989, most of their customers came out of nonluxury products," O'Brien explains. "They were customers that were on their way to a German manufacturer, but they were intercepted with a better value and a better product. We're basically in that mode now."
  • Hyundai considers the Genesis' main competitors to be the Lexus GS, Cadillac CTS and Mercedes E class.
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  • Mid-sized luxury sedans from Mercedes, BMW and Audi still have the edge, but the 2015 Genesis takes a big whack at their advantage.
Molly Brookshire

Lexus NX to offer a 235 hp turbo or 194 hp hybrid in U.S. - 0 views

  • Lexus unveiled the production version of the Lexus NX compact crossover
  • offering a U.S. sales forecast of 2,200 units a month.
  • The turbo drivetrain likely will account for up to 85 percent of U.S. sales
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  • the NX is slightly smaller than the Acura RDX, and slides between the BMW X1 and X3.
  • The NX is derived from the Lexus CT platform with some RAV4 underpinnings and goes on sale this fall.
  • The NX will be manufactured at Toyota Motor Corp.'s Lexus assembly plant in Japan's southwestern island of Kyushu.
  • He added, however, that Lexus' U.S. dealer council has informed him that such an estimate is too conservative.
  • When Lexus launched the original RX 300 in 1998, it had the same sales estimate. RX demand quickly jumped above six figures a year, and it became Lexus' best selling product.
Molly Brookshire

Toyota begins production of 2014 Highlander in Indiana - 0 views

  • The popularity of the Highlander led Toyota to invest $430 million in the Princeton plant, creating an additional 600 jobs,
  • The company said it will export Highlanders from Indiana for the first time, shipping vehicles to Russia and Australia.
Molly Brookshire

Bosch projects 3-5% sales growth, plans Internet technology push - 0 views

  • The company which makes ultrasound, radar and video sensors as well as spark plugs, wants to tap into a growing market for Internet-enabled devices and systems to allow autonomous driving.
  • The shift toward more sophisticated cars will result in a 25 percent increase in the production of ultrasound sensors this year to 50 million devices, and the number of radar and video sensors produced will also double, to more than 2 million units, Bosch said.
  • its automotive technology business sector had grown "impressively."
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  • Sales of driver assistance systems could exceed 1 billion euros as early as 2016, as cars become more sophisticated and offer new business opportunities, Bosch said.
  • This year the company will add 9,000 university graduates from around the world to its workforce of 281,000 staff.
  • By 2020 Bosch plans to double its sales in Asia, North and South America
  • Bosch said last year its automotive business continued to grow, particularly gasoline and diesel direct-injection systems, as well as display instruments and infotainment systems.
Molly Brookshire

As Sonata turns cautious, Camry flees good-but-frumpy image - 0 views

  • With an ambitious, sporty restyling just three years into the current cycle, Toyota sought to change the Camry's image as a bland appliance. Hyundai, meanwhile, positioned its 2015 Sonata to cast a wider net by offering shoppers a more upscale driving experience and a design less flamboyant than that of the swoopy, value-priced version that burst into the segment five years ago.
  • The twin unveilings spotlighted two competitors -- one a perennial but aging champion, the other a small but feisty challenger -- that still have something to prove in a mature market.
  • As an attention-hungry challenger, "We had to do something fairly dramatic five years ago," Dave Zuchowski, Hyundai Motor America CEO, said in an interview, referring to the outgoing Sonata's polarizing shape.
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  • But with nearly 900,000 more Sonata owners on the road since the outgoing model's debut, and a chance to build a broader, more sustainable following, "We have to be more careful," Zuchowski said.
  • But Hyundai says the car's suspension and steering have been redesigned for better ride and handling. The interior also is new, with greater use of soft-touch materials and more countermeasures against road noise. Also, high-tech features and advanced safety equipment -- plus a starting price that Zuchowski says won't stray far from the outgoing model's sticker of just over $22,000, with shipping -- will help the Sonata retain the value image that has been a key purchase reason for the sedan, Hyundai says.
  • With 6.6 million Camrys on the road, Toyota understands well the delicate balance Hyundai is seeking. The Camry's large, loyal following has allowed it -- compelled it -- to stick with safe, modest designs and driving characteristics, generation after generation.
  • But when the current generation was launched in late 2011, mostly to yawns from auto critics, the sportier SE model became the best- selling trim package. Toyota took the hint.
  • Every piece of sheet metal except the roof has been changed, as have more than 2,000 part numbers. For some automakers, that constitutes a redesign.
  • Both products will land in a mid-sized market that has been roiled by intense competition, not only within the segment but also from fast-growing crossovers. At 2.6 million units in 2013, sales in the segment grew just 1 percent from the previous year,
  • No one feels this more than Toyota, which is fighting to continue the Camry's 12-year streak as America's best-selling car against a strong challenge from the Nissan Altima. Toyota has spent more on Camry incentives, yet had a lower mean transaction price, than its top four competitors -- the Altima, Honda Accord, Ford Fusion and the Sonata -- every month since November 2012, according to TrueCar.
  • Carter hopes the investment in the new-look Camry will allow Toyota to dial back on incentive spending. "One way to lower incentives is to increase demand, and that's what this car is about," Carter said. But if competitors should raise their incentives, Toyota won't sit still. Said Carter: "This is a competitive market. And we're going to compete."
Molly Brookshire

Ford plans to add thousands of jobs, 3 plants and 23 vehicles - 0 views

  • A confident Ford Motor Co. said today that it plans to add 5,000 U.S. jobs in 2014, open two plants in Asia Pacific and one in South America, and launch 23 vehicles globally.
  • Ford plans 16 launches in North America. They include the Ford Mustang, Ford Transit Connect, Ford Transit and Lincoln MKC.
Molly Brookshire

GM's new head of powertrain 'loves' diesels - 0 views

  • GM introduced one of the biggest engine programs in its history. Later this spring GM will debut the first of a new family of small Ecotec engines, 11 in all, that will be built around the world in five plants by 2017. The new three- and four-cylinder engines will eventually account for nearly 25 percent of GM’s total engine production and produced at the rate of 10,000 engines a day.
  • GM and Ford are collaborating on a new generation of 9- and 10-speed transmissions. The 10-speed gearboxes will be used in both company’s pickups in about two years. The F-150 and the GM twins, Chevrolet Silverado and GMC Sierra, lag far behind Chrysler’s Ram 1500 Ecodiesel in the fuel economy race.
  • for the time being, both trucks use six-speed transmissions, while the Ram has 8-speeds.
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  • 2025 and the mandated 54.5 mpg standards are looming
Molly Brookshire

Renault, Nissan to combine manufacturing, r&d for $4 billion annual savings, report says - 0 views

  • Under the planned structure, Nissan and Renault will be able to assemble cars, using shared parts, at the same factories, the Nikkei said.
  • Nissan and Renault will adopt the new structure first at their jointly held factory in India as early as 2015, expanding to more than 10 countries by 2020, the report said. The alliance, which together owns nearly 50 factories worldwide, plans to bring Russian affiliate AvtoVAZ into the fold, the paper added
Molly Brookshire

For now, Toyota chooses shortfall over costly expansion - 0 views

  • a key point of Toyota's midterm strategic plan through 2025 is to determine whether to expand the San Antonio plant. The plant already is one of Toyota's fastest-moving factories worldwide, with a capacity of about 200,000 units, without overtime or Saturdays.
  • to build another line in San Antonio could cost hundreds of millions of dollars. Plus, Toyota is still unsure if there's an additional 100,000 units of demand for its trucks -- the typical minimum volume for adding a new assembly line -- without resorting to costly incentives to push demand.
  • With truck demand returning, expansion is tempting
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  • demand for Toyota trucks is about 30,000 units over present volumes. He added: "None of us has the stomach to add another 100K."
Molly Brookshire

Toyota weighs adding truck capacity - 0 views

  • Toyota can produce a combined 250,000 Tundra full-sized and Tacoma compact pickups in San Antonio, running two shifts plus overtime and Saturdays, Fay said. Toyota's knockdown assembly plant in Tijuana, Mexico, can add another 50,000 Tacomas, but many of those trucks go to Mexico and Canada.
  • Assembly line tweaks could add about 7,000 units at each plant, Fay said. But that might not be enough.
  • Even if Tacoma sales were to stay flat next year, the combined pickup sales would exceed what San Antonio and Tijuana could produce for the United States. The quick rebound in pickup sales has caught Toyota by surprise.
Molly Brookshire

Nissan to lift U.S. output of Leaf electric car as demand climbs - 0 views

  • The automaker dropped the U.S. price of the Leaf by more than $6,000 to $29,650
  • Supplies of the Leaf at U.S. Nissan dealers are currently running at about 20 days. Normally the company likes to keep supplies at around 60 days.
  • "We are supply constrained... We will start producing more Leafs probably by the end of this year -- so December January time," he said.
Molly Brookshire

New capacity helps Nissan roll to records - 0 views

  • December was the first full month of sales for U.S.-built Rogues from Smyrna, Tenn. Rogue sales rose 28 percent to 14,676 for the month. Retailers are also now receiving a flow of Sentras from a new plant in Aguascalientes, Mexico, that opened in November.
  • The Maxima, a Smyrna-built sedan that is nearing the end of its model life, benefitted from an incentives campaign of short-term bonus cash in December. Maxima sales rose 57 percent to 6,509 for the month.
Molly Brookshire

Japanese collaborate on r&d for new fuel efficient engines - 0 views

  • Japan’s automakers, aiming to take the lead in fuel-efficient powertrains, have joined forces in a new consortium to develop the next generation of fuel-sipping combustion engines.
  • Their goal: A 30 percent improvement in the fuel efficiency of traditional gasoline and diesel engines by 2020.
  • The Japanese government will aid the country’s eight automakers by chipping in half of the project’s 1 billion yen ($9.9 million) budget. The automakers will foot the rest.
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  • Research Association of Automotive Internal Combustion Engines. It pools the resources of Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mazda Motor Corp., Mitsubishi Motors Corp., Daihatsu Motor Co., Suzuki Motor Corp. and Fuji Heavy Industries Ltd., the maker of Subaru-brand vehicles.
  • The objective is to share costs in an increasingly competitive, investment-heavy field to meet more stringent fuel economy guidelines, organizers
  • The strategy is patterned after a similar approach taken by competitors in Europe, organizers said. There, rivals cooperate with academia and the government on basic technologies, giving European carmakers a head start in cutting costs.
  • While Japanese automakers have developed advanced electric and hybrid drivetrains, the creation of AICE acknowledges that internal combustion engines will remain the workhorse of global fleets for a long time, especially in cost-sensitive emerging markets.
  • Organizers outlined a 10-year time frame for achieving world-leading advancements in combustion engine efficiency.
  • Engineers target thermal efficiency rates for both approaching 50 percent. That compares with today’s best rates of around 39 percent for gasoline engines and 42 percent for diesel engines. Higher thermal efficiency means more energy from internal combustion is captured for higher engine output. Organizers said such a breakthrough could boost the fuel efficiency of gasoline and diesel engines 30 percent by 2020.
  • Diesel engine development will focus on eliminating particulate matter and nitrogen oxide emissions, partly through better particulate filters and exhaust gas recirculation systems. Gasoline engine research will focus on achieving more complete combustion cycles and better ignition while reducing knock.
  • Keiji Ohtsu, managing officer of Honda R&D Co., Honda’s product development arm, will be AICE president.
Molly Brookshire

Big chipmakers struggle to connect with automakers - 0 views

  • Consider the new 2015 Hyundai Genesis, a luxury sedan brimming with semiconductors that handle everything from automatic braking and lane-keeping sensors to blind-spot detection. Other chips enable the car to open the trunk when it senses the owner’s arms are full, and to sniff for carbon dioxide to decide if the cabin needs more fresh air
  • While the Genesis represents the forefront of the auto industry’s use of chips, only a handful of the vehicle’s thousands of semiconductors is provided by Intel. Qualcomm and NVIDIA don’t even make the list.
  • The main hurdle is the industry’s safety and reliability standards, which far exceed those for computers or phones. Instead, most of the electronic components are provided by longtime suppliers, like Freescale Semiconductor Ltd., Renesas Electronics Corp. and STMicroelectronics NV, which have proven track records.
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  • The market for automotive chips is projected to grow 6.1 percent to $27.9 billion this year, according to IHS Corp. Within that business, sales of chips for automated driver-assistance systems, or ADAS, will increase an average of 13 percent a year through 2020, making it the fastest-growing area.
  • Intel, Qualcomm and NVIDIA, which make some of the fastest processors available. All three say they’ve got products in the market or coming that meet the most stringent automotive requirements.
  • NVIDIA said its processors are now powerful enough that they can be partitioned -- devoting part to functions that must work no matter what, and others to information and entertainment, where hiccups are less dangerous.
  • Qualcomm
  • has won the majority of orders to add the latest wireless modems into cars, and expects that by 2017 as many as 60 percent of cars will have cellular connections.
  • It all comes from the cloud,” Singh said. “Otherwise you have to put terabytes of data into the car’s trunk.”
  • Top-of-the line Audi models use more than 6,000 semiconductors.
  • “Make no mistake -- my objective is to drive this into volume, not just luxury German vehicles,” said Elliot Garbus, Intel’s vice president of automotive. “We need to drive it into entry-level vehicles.”
  • Intel is aiming to win more orders by offering carmakers whole systems -- software and computers built on its chips -- that it says can cut the time and cost it takes to build features into cars. New functions such as tracking eye movement to monitor a driver’s attention will require faster processing, he said.
  • Qualcomm
  • is working on chipsets that provide multiple functions for cars, including cellular connections, and expects that to be the basis for an expansion of its revenue in the industry
Molly Brookshire

Mercedes-Benz's autonomous driving features dominate the industry -- and will for years - 0 views

  • When Mercedes-Benz debuted its new Intelligent Drive package of safety and driving-assistance systems last fall, it raised the bar for the rest of the industry.
  • The features on the 2014 S-class sedan are the most advanced in a production vehicle. And Mercedes-Benz appears likely to stay ahead of the competition for several years.
  • When the S class debuted, I'd say they had a 30-month lead on the competition in terms of technology deployment,"
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  • "This skips a whole generation of S class -- it went into the future. It is 70 percent autonomous driving."
  • Available first on the S-class sedan as a $2,800 option, Intelligent Drive also is offered on the re-engineered 2014 E-class lineup. Much of the technology will trickle down to the redesigned 2015 C-class sedan that goes on sale in the fall. Some features are even available on the smaller B-class Electric Drive that went on sale last month.
  • The take rate on Intelligent Drive for the S-class sedan is 50 percent. It falls to 15 percent for the E class.
  • For Mercedes, having this edge is a competitive weapon in the luxury segment, where quality, gadgets and horsepower are no longer significant differentiators.
  • Hyundai with its new Genesis is the closest but the competition is probably three years behind
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